Portfolio Manager comment Coeli Nordic Corporate Bond Fund R-SEK September 2024

This is a marketing communication.

Before making any final investment decisionsplease read the prospectusits Annual Report, and the KID of the relevant Sub-Fund here

Note that the information below describes the share class (R SEK), which is a share class reserved for private investors. Investments in other share classes generally have other conditions regarding, among other things, fees, which affects the share class return. The information below regarding returns therefore differs from the returns in other share classes.

Nordic Corporate Bond Fund (Class R) advanced with 1.08% during August. Since year-end, the NAV per share has consequently increased by 5.98%. 

We are putting another month of low volatility in the credit market behind us. Market interest rates fell here at home, in Europe and in the US. The US Federal Reserve delivered a long-awaited cut of 50 basis points, while the Riksbank and the ECB cut by 25 basis points. With continued falling inflation, weak economic activity in Europe and question marks over the US economy, there are high expectations for continued rapid interest rate cuts.

Considering the uncertainty regarding the economy, the geopolitical situation and the upcoming election in the United States, it is rather surprising how strong the risk appetite still is. Several equity indices passed all-time highs in September and credit spreads of both high yield and investment grade are low from a historical perspective. At the same time, falling market interest rates provide stability for the credit market, and corporate bonds tend to perform well during periods of falling inflation and orderly declining interest rates.

Real estate companies developed strongly this month as well, interest rates continued to fall and several bond issues were priced at favorable levels for the issuers. Castellum issued bonds in euros for the first time in two and a half years, the issue was met with great interest and was oversubscribed several times. Akelius Residential strengthened its liquidity by divesting shares in Castellum, where the company was a shareholder for about two years, in order to repay maturing debt. CIBUS, with a focus on properties for grocery stores, also contributed positively after the company carried out a targeted share issue with the aim of enabling growth through further property acquisitions.

Positive impact on the month's results also came from covered bonds, which benefited from falling market interest rates. Bonds from Hoist Finance performed nicely after the company had its rating raised by one notch to Baa2 by Moody's.

During the month, there was high activity in the primary market and the fund participated in several new issues: Hawk Infinity Software, Storskogen, Sensys Gatso and MPC Container were companies that were added to the portfolio. In addition, the holdings of bonds from B2 Impact, Vattenfall and Heimstaden were increased. Divestments took place of bonds from Magnolia and PHM Group. Overall, the changes contributed to increasing the proportion of high-yield bonds and to maintaining a relatively high average yield in the portfolio.

IMPORTANT INFORMATION. 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 KID 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/financial-and-legal-information/. 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. Please note that the management company of the fund may decide to terminate the arrangements made for the marketing of the fund in one or multiple jurisdictions in which there exists arrangements for marketing.

Please indicate whether you are a private or institutional investor.

Coeli may, pursuant to law, market one or multiple funds in several jurisdictions. By choosing an option in the list below, you confirm that you belong to one of these.

Den sammanfattande riskindikatorn ger en vägledning om risknivån för denna produkt jämfört med andra produkter. Den visar hur troligt det är att produkten kommer att sjunka i värde på grund av marknadsutvecklingen. Indikatorn speglar framför allt upp- och nedgångar i de aktier fonden placerat i. Denna produkt innehåller inte något skydd mot framtida marknadsresultat. Du kan därför förlora hela eller delar av din investering. Förutom de risker som ingår i riskindikatorn kan andra risker påverka fondens resultat. Se fondens fondbestämmelse för mer information.

Morningstars fondbetyg (rating) är ett mått som går att använda för att se hur fonderna har presterat historiskt. Fonden får ett högre betyg om den har haft en bra avkastning i förhållande till fondens risknivå. En fond måste ha funnits i minst 3 år för att få ett totalt betyg. Har fonden funnits längre än 5 och 10 år får dessutom betyg för dessa tidsperioder. Morningstars hållbarhetsbetyg är ett mått på de ekonomiskt väsentliga riskerna inom miljö, socialt och ägarfrågor (ESG) i en portfölj relativt till liknande konkurrerande portföljer. Hållbarhetsbetyget beräknas för fonder, förvaltningsuppdrag och index globalt, med hjälp av Morningstars databas med portföljinnehav.