Before making any final investment decisions, please read the prospectus, its Annual Report, and the KIID of the relevant Sub-Fund here
Likviditetsstrategi advanced with 0.71% during July. Since year-end, the NAV per share has consequently decreased by 2.64%. After a very weak first half of the year, July brought a recovery for risky assets with generally rising equity prices and falling credit spreads. This even though released economic statistics generally were gloomy and showed falling economic activity, while inflation in most Western countries remains at very high levels. The positive market development was supported by company reports for the second quarter which, aggregated, were better than expected, on the stock exchanges the price reactions for the reporting companies were in many cases very hefty, which is partly explained by relatively thin summer trading.
Short-term market rates rose in both Europe and the US after both the ECB and the Federal Reserve raised their respective policy rates. However, longer market interest rates fell back after the Fed communicated that the current interest level is close to a neutral level and future interest rate hikes will be decided on the basis of how the economy develops in the coming quarters.
In the Nordic corporate bond market, activity was low and developments were weaker than those in the European market with more sideways developments for credit spreads. This means that the premium against the euro market increased during the month, which bodes well for the development during August.
The biggest positive impact on the result came from the real estate companies Samhällsbyggnadsbolaget i Norden and Balder, whose bonds recovered parts of the sharp price falls seen during June. Balder's quarterly report was generally stable with more or less unchanged key metrics, the company increased its credit commitments during the quarter and is thereby considered to be well positioned to meet future refinancing in the capital market. Samhällsbyggnadsbolaget, on the other hand, offered a slightly weaker report with income from property management that was worse than expected and an increased loan-to-value ratio. However, SBB continues to sell properties in order to strengthen the balance sheet, in total during the year the company has announced disposals for close to SEK 11 billion, which will lead to a lower loan-to-value ratio when the divestments settle in the coming months.
Positive contributions were also received from the credit management company Intrum after the company presented a solid quarterly report that showed higher revenues than expected and a good order intake in the CMS business. The company's operational cash flow was strong and during the quarter the rate of investment was increased. The goal of reducing the debt ratio by the end of the year was repeated. Bonds from the insurance company Gjensidige also developed well after a quarterly report containing good growth and insurance results that were stronger than expected.
During the month, additional investments were made in bonds from, among others, Viaplay (formerly Nordic Entertainment Group), Millicom, Intrum and Castellum.
Portfolio Manager of Coeli Likviditetsstrategi
Senior Analyst
| Inception Date | 2010-05-01 |
| Management Fee | 0 % |
| Performance Fee | Yes |
| Risk category | 2 of 7 |
DISCLAIMER. This is a marketing communication.
Before making any final investment decisions, please refer to the prospectus of Coeli SICAV I, its Annual Report, and the KIID of the relevant Sub-Fund. Relevant information documents are available in English at coeli.com. A summary of investor rights will be available at https://coeli.com/regulatory-information-coeli-asset-management-ab/.
Past performance is not a guarantee of future returns. The price of the investment may go up or down and an investor may not get back the amount originally invested.