Before making any final investment decisions, please read the prospectus, its Annual Report, and the KIID of the relevant Sub-Fund here
Likviditetsstrategi retreated with 0.46% during September. Since year-end, the NAV per share has consequently decreased by 2.98%. Interest rate hikes, high inflation figures and falling risk appetite influenced the market development in September, with rising government bond yields and falling prices for stocks and corporate bonds as a result. Both the Federal Reserve and the ECB raised their respective key interest rates by 0.75%, which was in line with expectations. However, the announcement from the Fed was more hawkish than expected as the forecast for future interest rates was adjusted upwards. The Riksbank surprised with a historically large increase in the repo rate by 1%. The Swedish interest rate path was adjusted upwards; however, the market's expectations are far above the Riksbank's forecasts.
Volatility was high at times, not least in British assets. After the government presented a “mini budget” with large unfunded tax cuts and an extensive support package for households, the pound was seen to drop sharply while government bond yields skyrocketed. The Bank of England was forced to intervene with bond purchases to curb the situation.
Risk appetite was pressured by rising geopolitical tensions with, among other things, a partial mobilization in Russia, toughened rhetoric with nuclear threats and annexation of Ukrainian territory, as well as sabotage against the Nord Stream gas pipelines. Furthermore, sentiment was negatively affected by falling indicators, such as the purchasing managers' index, which increasingly consistently point to slowing economic activity. In Sweden, the National Institute of Economic Research released its Tendency Survey where all sub-components fell and indicate a significant economic slowdown, among other things the households' view of their own economy was measured to the lowest levels since the crisis of the 90s.
The development in the corporate bond market was negative, because of both rising interest rates and increasing credit spreads, the vast majority of the fund's bond positions fell in value. However, small positive contributions were received from defensive issuers such as insurance companies Gjensidige and Protector.
Real estate companies developed weakly during the month, once again pressured by rising interest rates and increasing concerns about the refinancing risk in the sector. Bonds from SBB were supported by the company's announcement that they had signed a letter of intent to divest a larger property portfolio. The announcement is in line with the strategy communicated earlier in the year, the proceeds from the sale are intended to be used to buy back bonds and thereby reduce the company's indebtedness.
Bonds from Intrum developed weakly after the company announced a major write-down of portfolio values in an Italian joint venture. The write-down will hit Intrum's reported results for the third quarter hard, but the impact on the company's cash flows is limited in the near term, which means that the effect on creditworthiness will be relatively mild.
Bonds from the industrial conglomerate Storskogen also had a noticeable negative impact on the result. During the month, the company held a capital market day where a revised strategy was presented which aims to strengthen the balance sheet and reduce the pace of acquisitions. From a credit perspective, it is welcome that the company chooses to consolidate its positions after a period of expansive growth through acquisitions.
During the month, the fund participated in a new issue of green bonds from the mining group Boliden. The positions in Millicom and Tryg were slightly reduced while the consulting company AFRY left the portfolio.
Portfolio Manager of Coeli Likviditetsstrategi
Senior Analyst
| Inception Date | 2010-05-01 |
| Management Fee | 0 % |
| Performance Fee | Yes |
| Risk category | 2 of 7 |
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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.