Nordic Corporate Bond Fund (Class I) advanced during July with 1.91 percent. Since year-end, the NAV per share has consequently decreased by 3.96 percent.
The major contributors of the month included the credit management companies Intrum and B2 Holding. Intrum issued a reverse profit warning at the beginning of the month, with an operating profit that was almost 25 percent higher than previous guidance. B2 presented a brief update on the development during the quarter showing decent earnings development and reduced investments, which provides support for the company's liquidity.
Bonds from the property developer Magnolia Bostad continued to develop strongly with the support of a strong quarterly report. During the second quarter, Magnolia sold just over two thousand apartments and as a result of the sales and redemption of a bond loan, the company's adjusted indebtedness decreased significantly.
During the month, the fund participated in an offering from Intrum that issued bonds with the purpose of refinancing an existing bond loan maturing in 2022. Furthermore, the exposure to the Norwegian salmon producer Mowi was increased. Except for these two newly purchased bonds, all holdings contributed positively to the month's performance.
Portfolio Manager of Coeli Nordic Corporate Bond Fund
Senior Analyst
| Inception Date | 2014-06-18 |
| Management Fee | 0.5 % |
| Performance Fee | N/A |
| Risk category | 3 of 7 |
DISCLAIMER. The information provided here does not constitute professional financial advice. 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. The key investor information document (KIID) and prospectus are available at www.coeli.se.