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TEST Coeli Global Select I EUR

June was another month of positive returns for our global fund; although, we did not beat our benchmark index for the first time in three months. Coeli Global Select saw a return for June of 1.54 percent, which was 0.33 pp worse than our benchmark. We are happy to declare that, in moment of writing this, the fund is showing a positive return year-to-date.

The industries that contributed positively to returns were semiconductors, construction, and software. More specifically, these five companies were responsible for the best contributions: Microsoft, SIKA, TSMC, Apple, and ASML. Times were tougher for companies in the payments, cosmetics, and care industries, and these investments contributed negatively to returns. The five worst-performing companies were Fiserv, HCA Healthcare, Global Payment, Estee Lauder, and Bright Horizon Family Solution. We expect these companies to see a boost in their share prices as the effects of the coronavirus diminish.

Key market events and trends affecting performance

During June, we saw good unemployment figures from the US, showing a recovery in the job market, which bolstered the stock markets. Above all, it was the hardest-hit sectors – retail, travel and manufacturing – that have seen the most rapid recoveries. Despite this improvement, many companies are undertaking staff reductions to lower total costs. One example of this in Sweden is AB Volvo, which has announced a staff cut of 4,100 employees. The stock market usually reacts positively to such cuts. The easing of travel restrictions in Europe is helping economies there. This is good news for hotels, restaurants, stores, airlines, and payment companies. As we have written before, the central banks are doing all they can to stimulate economies and lift GDP growth as much as possible. Fed chair Jerome Powell has promised a fed funds rate (repo rate) of zero until the end of 2021.

Portfolio changes

During the month, we made a change to our banking exposure in India. We sold the smaller RBL Bank and bought the larger Kotak Mahindra Bank. With this switch, we have boosted the quality of our banking exposure, and we should achieve solid returns. We also sold Stone, one of our two Brazilian payment companies. The coronavirus crisis has proven that Stone was not of high enough quality; instead, we focus our resources on the other payment companies in the fund. We have bought a new “Special Situations” stock, Bright Horizon Family Solution, which operates in the childcare sector in the US, the UK, and the Netherlands.

The fund’s positioning

In June, we lifted the “Special Situations” share of the fund somewhat, and these now account for 8 percent of the fund. The remainder is invested in our “Champions” companies. We continue to optimise our global fund for positive returns for the whole of 2020.

Coeli Global Select I-EUR

Performance in Share Class Currency1 MthYTD3 yrs*Since incep*
Coeli Global Select – I EUR1.52%-0.48%31.54%78.37%
Benchmark1.86%-6.37%21.37%51.06%

* the historic performance before 2018-06-30 is an estimated performance based on the R EUR share class adjusted for the different Investment Management fee. It shall be noted that the adjusted historical performance can differ from the real outcome and therefore shall only be seen as an indicator.

Coeli Global Select I EUR

Andreas Brock, CFA

Portfolio Manager Coeli Global Select

Henrik Milton

Portfolio Manager Coeli Global Select

Fund Overview
Inception Date2014-11-28
Management Fee1.4 %
Performance FeeYes, 10%
Risk category5 of 7
Top Holdings (%)
MICROSOFT CORP.4.5%
VONOVIA SE /NAMEN4.2%
THERMO FISHER SCIENTIFIC INC4.2%
VISA INC -A4.2%
UNITEDHEALTH GROUP INC4.1%

 

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.