Monthly Newsletter Coeli European – March 2024

[et_pb_section bb_built="1" fullwidth="off" specialty="off" _builder_version="3.0.89" background_image="https://coeli.com/wp-content/uploads//2018/08/malmo-bro-comp.jpg" parallax="on" module_class="gen-trustee-single-hero"][et_pb_row][et_pb_column type="4_4"][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built="1" fullwidth="off" specialty="off" _builder_version="3.0.89" custom_padding="0px||0px|"][et_pb_row][et_pb_column type="4_4"][/et_pb_column][/et_pb_row][et_pb_row _builder_version="3.0.89" background_position="top_left" background_repeat="repeat" background_size="initial" custom_padding="0px|||" custom_padding_phone="23px|||" custom_padding_last_edited="on|tablet" module_class_2="gen-trustee-single-sidebar" module_class="gen-single-news-content-row "][et_pb_column type="4_4"][et_pb_text admin_label="Tillbaka-knapp" _builder_version="3.0.89" background_layout="light" border_style="solid" custom_margin_tablet="||17px|" custom_margin_last_edited="on|desktop" module_class="gen-back-button hide-in-print" border_style_all="solid"] Note that the information below describes the share class (I SEK), which is a share class reserved for institutional 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. Before making any final investment decisions, please read the prospectus, its Annual Report, and the KID of the relevant Sub-Fund here [/et_pb_text][et_pb_text admin_label="Tillbaka-knapp" _builder_version="3.0.89" background_layout="light" border_style="solid" custom_margin_tablet="||17px|" custom_margin_last_edited="on|desktop" module_class="gen-back-button hide-in-print" border_style_all="solid"]

This material is marketing communication

[/et_pb_text][et_pb_text admin_label="Datum / Skriv ut" _builder_version="3.0.89" background_layout="light" border_style="solid" custom_margin_tablet="||17px|" custom_margin_last_edited="on|desktop" module_class="gen-single-news-date-module gen-trustee-print-module hide-in-print" locked="on" border_style_all="solid"] [blog_post_date]

Print

[/et_pb_text][et_pb_text _builder_version="3.0.89" background_layout="light"]

Monthly Newsletter Coeli European – March 2024

MARCH PERFORMANCE

The fund’s value increased by 9.6% in March (share class I SEK), while the benchmark increased by 7.2%. Since the change of the fund’s strategy at the beginning of September this year, the fund’s value has increased by 19.8% compared to an increase of the benchmark by 6.7%. * Adjusted for spin-off of Rejuveron** Includes September 1 (strategy change to long-only implemented September 4 2023)

EQUITY MARKETS / MACRO ENVIRONMENT

The fund performed strongly with a 9.6% return compared to 7.2% for the benchmark. The broad European index rose by 3.6% and the S&P500 by 3.1%, both measured in local currency. The Swedish krona weakened by 2.6% and thus contributed positively to the fund's return. Underlying momentum in the fund was strong and produced a positive return on 17 of the month's 20 trading days. All but two holdings (Carel and CVS) gave a positive return and the five main contributors were: Sacyr (+12.8%), Corem (+20.7%), Commerzbank (+19.0%), SLP (+9.3%) and Accelleron (+13.4%). Total contribution from the top five holdings was 3.2%. The Fed delivered a perfect message to the market on March 20th when it revised up the growth for the US economy while also communicating that there will likely be three interest rate cuts this year. Although the last two inflation data published were higher than expected, the Fed said that things are moving in the right direction. They also see a labor market that is normalising and their comments about the second half of the year were clearly dovish. Our simple view is that we believe in a first interest rate cut in June, otherwise it will be too close to the election in early November as one want to avoid criticism from the Republicans that the Fed is supporting the incumbent President, Joe Biden. The investors and economists who for two years stared blindly at the inverted yield curve and stubbornly claimed that an American recession was on the way, seem to continue to lose both relative and absolute performance. If one is to say something serious about the picture below, the famous Fed put is again in play but, this time, to a lesser extent in the stock market but significantly more in the US economy as a whole. Definitely positive. Source: X Back in the day, when the world was less complex, the world's central banks acted in reasonably synchronised fashion. That does not seem to apply now when there is zero interest in Japan, 4% in Europe, just over 5% in the US and 2.5% in China. Growth figures also differ, although few see the five percent GDP growth that China's state authorities are communicating. It was not synchronised, but the Swiss central bank was the first to cut interest rates in March. The Bank of England started talking dove-like and even the Riksbank (Swedish Central Bank) surprised when they said, at the end of March, that once could see a first interest rate cut as early as May. Put simply, the above is completely in line with our view for the past six months and the portfolio is also positioned for this, which can be seen in the fund's return during the same time period. Later this year we will likely see a new peak in the image below (our view). Source: Goldman Sachs So far Europe is asserting itself well in this environment. The valuation gap against the US is the highest ever, despite the fact that the performance of Europe's stock markets has been positive in 15 of the last 18 weeks. That’s the longest positive period since 2012. Below is the return for the first quarter of 2024. The performance for European and American small- and mid-caps during the same time period was 8.2% and 4.0%, so slightly lower than for the large broad indices. Source: UBS Best sector in Europe so far this year is the defence industry followed by low valued banks. The second worst sector in the first quarter of the year is real estate (which, however, had a very strong finish in 2023). Source: UBS In addition to the valuation differential that explains part of Europe's strong start to the year a clear improvement in economic indicators has driven the development, particularly in the UK. The outbreak of war in Ukraine led to a huge inventory build-up for many industries and is still disrupting growth and forecasting for many companies. Now the volumes for new orders are rising in both the US and Europe, which is a step in the right direction. In the past month, Europe has been the most net bought region among Goldman Sachs clients. The net allocation against MSCI World was a whopping +5.8%, which was the largest deviation ever measured. Source: Goldman Sachs As we wrote in last month's newsletter, we were surprised that small-caps did not follow the rise during the beginning of the year given the excellent conditions. In mid-March, there was a change of scene and the share prices of smaller companies began to rise. Measured in local currency and during the second half of March, European small-caps rose 2.3% compared to the broad index which rose 1.2%. US small-caps rose 4.6% compared to the S&P500 which rose 1.8%. Swedish small-caps rose by 5.0% compared to the OMX30 which fell by -0.4% (where large dividends weighed down). The development follows inflows to funds with a focus on small- and mid-caps (like us). Note the bar in March which showed by far the largest inflow in the last three years. It is also a sign of health that the breadth of the market has increased, see image below. The picture looks the same for the American market where at the time of writing Magnificent 7 has been reduced to Magnificent 5, as Apple this year has fallen by 12% and Tesla by 33%.   Source: Goldman Sachs European inflation is soon fully under control. Below is Eurozone inflation including data from April 3 which showed 2.4% against an expected 2.5%. Are you awake ECB? Source: Bloomberg Simultaneously Europe's engine, Germany, continues its regress and few, if any, signs of an economic recovery are visible. The expected interest rate cut until the end of the year is currently around 0.9% and it feels obvious that the ECB will, once again, damage the economy unnecessarily. The same people who stubbornly stuck to zero interest rates are now stubbornly clinging to the current level of interest rates. Impressive. After some very challenging years for the UK economy, things now appear to be slowly turning. Fitch upgraded the outlook for the UK economy from negative to stable at the end of the month. Below is the activity in the UK property market as well as price expectations. Similar developments are now also visible in Sweden, with three consecutive months of rising prices. It will continue in the coming quarters with rising real wages and falling interest rates. Is this the picture of the month? We'll know in a few months. China, which has been completely under the ice since the pandemic broke out, now shows the biggest increase in leading indicators since 2005! In March, the EU was in full swing against American technology companies. First, Apple had to pay 1.84 billion euros for abusing its dominance in music streaming. It was complaints from Spotify that proved Spotify right and the EU handed out its first ever bill against Apple for this kind of overstep. Apple will appeal the ruling. A few weeks later, it was time again when the EU started investigating Apple, Alphabet and Meta regarding options in the use of personal data. It should be obvious that if one does not pay for the product (Facebook) then one is the product and it is easy to understand that our American friends feel that EU are chasing American technology companies when they themselves are significantly behind in development. Europe has completely missed the enormous opportunities that have arisen in the last 20-25 years and no new global technology champions have been created. Incredibly sad on many levels. Maybe we should think about improving productivity in Europe instead of prioritising shorter working hours and higher pensions? Just a thought. Source: Financial Times On March 7th, Sweden finally joined NATO. Thanks! Prime Minister, Ulf Kristersson, received a standing ovation when he witnessed President Biden's annual State of the Union speech. https://twitter.com/tomsamuelsson/status/1765932713217814937 At the same time, the Social Democrats tried, in a gutsy way to say the least, to take the credit, despite the fact that for 75 years they refused to even discuss the subject. Source: KluddNiklas

PORTFOLIO COMPANIES

Accelleron The ABB spin-off and turbo engine seller, Accelleron, was the last of our companies to report for 2023. The full year ended with 16% organic growth in sales, with a corresponding increase in operating profit. The figures were a few percent better than the advance tips. For 2024, management is guiding for more modest growth of 0–2% organically. This is partly due to a couple of the company's markets slowing down after a couple of very strong years, and partly, we believe, because the guidance is a function of the fact that management has historically been very conservative in its outlook. The beauty of Accelleron's business model is that around 75% of revenues is made up of recurring service revenue. After two years of unusually high one-off product sales, several years of highly profitable service revenue await. The profits are therefore predictable, which the stock market usually values ​​highly. The predictability also makes it easy for the management to plan for their costs, which is clearly manifested in the fine operating margin of just over 24%. When we invested in Accelleron about 1.5 years ago in conjunction with it becoming its own public company, it was precisely the predictability that we liked and it has always been a core holding since then. Since then, the company has performed above the market's expectations while profit multiples have risen by over 50%. Overall, this has seen the share price more than double since our initial investment. Even if we do not believe in an equally strong development going forward, we believe that the share will do better than the stock market. In March, the share rose by a further 13%. Source: BloombergDiploma British serial acquirer Diploma has a high profile among many UK fund managers, which is reflected in the valuation of 17-18x EBIT on the next 12 months' expected earnings. In order for our investment calculation to add up, Diploma must succeed in carrying out value-adding acquisitions. In March, we saw just such an acquisition when management acquired Peerless Aerospace Fastener, which distributes fasteners to the aerospace industry.

• The company has historically grown by 9% organically on an annual basis and has an operating margin of 30%.
• The acquisition is carried out at a valuation of approximately 7x EBIT for the expected operating profit in 2024 (!).
• Diploma expects the acquisition to add 8 percent to earnings per share in the first year.
• The return on investment is estimated at 15% in the first year (and the figure increases in future years).

The acquisition seems almost suspiciously good. When a question on that theme was put to management in a conference call, it was mentioned that the bid for Peerless was won in competition with private equity firms, which, however, cannot offer the autonomy to Peerless's current management team that Diploma can. Diploma also has a perpetual ownership horizon, which private equity companies by nature do not have. Competitors made higher bids for Peerless than Diploma, but they were outbid in favour of the soft values that Diploma can offer. The stock reacted extremely positively to the acquisition announcement and rose by 8% in March. Bechtle For some time now, we have built a mid-sized position in the IT retailer, Bechtle. There are several IT retailers in Europe (Norwegian Atea is a relevant comparison), and Bechtle is considered by many to be the best. Some of the sales come from software products, but the majority of sales come from hardware such as PCs, mobile phones and the like. Bechtle targets other companies and has a large proportion of its sales from the German-speaking parts of Europe. Over the past five years, Bechtle has grown sales by 13% per year with a high return on capital. The company is family owned and managed by an esteemed CEO who has held his role since 2010. The company has a very long term view, which is not least reflected by the company's 2030 goals that were decided back in 2018. An important part of the strategy is to acquire other smaller retailers at low valuations which are then allowed to be managed with continued high autonomy. In addition to Bechtle being able to acquire these companies at good valuations, there is also an industrial logic in that a larger scale Bechtle gains a better negotiating position against its suppliers such as Dell, HP, etc. Overall, we think Bechtle has many of the quality markers that a good serial acquirer should have. In the short term, the market is worried about the economy in general, and the German economy in particular. In addition, Bechtle has a high sales exposure to German small- and mid-caps, which have it even tougher in the current climate. If you look ahead; however, there are many years of structural growth where Bechtle should be able to grow by 5-10% organically and more with the help of acquisitions. Over time, the service leg of the business should make up an increasingly large proportion of sales, which should have a positive effect on profitability. The stock is valued at around 13x EBIT on our 2025e estimates, which is slightly below the historical average. However, our estimates do not price in more acquisitions. The valuation is not low in relation to many other retailers, but also not crazy high compared to Bechtle's historical valuation levels. We have tried to take advantage of the market's short-term fear of the economy for an investment we believe will pay off in the long term. Bechtle shares rose 3% during March. We hope to return to this topic later. 4imprint In March, the gift advertising company released its financial results which confirmed already announced figures from a press release earlier in the year. At the same time, management expressed that the year started in line with analysts' expectations. This was enough for the stock to rise 11% in March. 4imprint is thus one of the fund's best shares this year with an increase of 38%. Since 2012, 4imprint has grown its sales by 15% per year, compared to 4% for the market as a whole. 2023 was another year in which the company gained market share. The strategy has been the same for many years and regardless of the economy, the company will very likely continue to gain market share. With neutral working capital and low investment requirements, the return on capital employed is very high, at over 100%. . Source: Coeli EuropeanCarel Industries Since last year, we have owned shares in Italian Carel, which, among other things, produces and sells control solutions, humidity controllers and dehumidifiers. The company has a history of strong organic growth, is family-owned and has also started to build a good acquisition track record. With exposure to data centres, energy efficiency and industrial cooling solutions Carel has a large structural tailwind in the coming years from most of its business areas. Around 10% of the revenue; however, comes from the heat pump industry to which Carel is a subcontractor. Although this represents a relatively small percentage of sales, the heat pump leg accounted for a large part of last year's growth. The well-documented problems that the heat pump industry is experiencing with higher interest rates, lower electricity prices and overstocked inventories will now instead affect Carel negatively in 2024. This is what the market latched onto when Carel outlined its outlook for the year to analysts in March and the stock fell by about 5%. We foresee a couple of weaker quarters which could possibly affect the share negatively. On the other hand, the share has developed weakly during 2024, which may imply that most of the short-term concerns are already reflected in the share price. In the longer term, we are not worried about Carel, which is a fine company with good future prospects, and we believe that the stock market will value the heat pump exposure as something positive as soon as there are whispers about that market bottoming out. Volution In March, the British ventilation company released yet another good report that resulted in positive estimate changes from the analyst collective. The market is worried about declining sales against the backdrop of the difficult construction climate, but Volution continues to report positive organic growth. We think that the company deserves a proper valuation from today's levels, which implies about 13x next year's profit on our estimates. With the current valuation, we believe that there is a certain bid risk for the company, especially in combination with the ownership profile as there is no clear main owner. Rugvista As we mentioned in the previous monthly newsletter, we thought the reaction to the company's Q4 report was exaggerated. After we adjusted for a couple of one-off costs that the company itself included in its reported operating profit, the profit was pretty much in line with the advance predictions. In March, the share regained ground with a rise of 15%. SLP Property companies developed relatively weakly during February, but were considerably stronger during March, and SLP was no exception. Fundamentally, nothing has changed in the company. However, the share price has been under pressure from a larger seller and a less well-executed placement at the beginning of March. We took advantage of the opportunities presented and ramped up the position from low levels to the now the largest holding of the fund. The share rose 9.3% during March, but from the lowest levels where we bought a lot of shares, the share rose 17-18% and SLP thus became a strong contributor to the fund’s performance in March. The stock market is a strange market; when there is a sale on, people don't want to buy and when the prices are higher, people come back. Bonesupport Bonesupport continues to deliver great value to the fund. During March, two pieces of good news came in, which caused the share to rise 12 and 8% respectively during those days. The first news was a 510(k) approval for the indication interbody fusion in the spine. The application concerns Cerament BVF in the USA and the amazing part is that the approval only took 10 days (usual processing times at the FDA is 90 days). Either Bonesupport was just lucky, but more likely the data from clinical trials is so strong that there isn't much to deliberate on. Launch of the products remains at the end of 2025. The other news was a market approval for open fractures in the US. Cerament G is the first and only combination product to be approved in the United States for this indication. However, there is one detail that we think the market has not caught on to. Typically, a 510(k) approval is granted for the indication sought, in Bonesupport's case, the shin bone. The FDA approval covers all extremities, that is, surgeons may not only use Cerament G prophylactically on the shin but in all extremities. This is of course incredibly good for the case. The replacement codes should be in place by September, allowing us to expect sales in the fourth quarter. The codes also give hospitals full reimbursement if surgeons say they use Cerament G. In other words, there are very large incentives to choose Cerament G over other off-label products that are cheaper. This means that the estimates will probably need continued upward adjustments as usage increases. Trauma and open fractures are one of the fastest growing areas in orthopaedics. With the approval, the door opens up for a larger company to acquire Bonesupport. With gross margins around 92%, Bonesupport in a larger organisation with its own sales force could generate a contribution margin of around 80-85%. At today's rate, that would mean EV/EBIT 15x for such an actor, not very expensive for a company with a completely unique product that is taking market share at breakneck speed. Surgical Science After having owned the share for a long time, we chose, in March, to sell our last shares in Surgical Science and reinvest the capital in a couple of other new companies. We thank CEO, Gisli Hennermark, and CFO, Anna Ahlberg, for phenomenal work during the approximate five years we have been invested. Sacyr Sacyr is a Spanish concession company focused on building, developing and operating private motorways. We have been invested in the company since the beginning of 2023 and since a few months ago it has been one of the largest holdings in the fund. The company has a checkered history with far-reaching deals where, among other things, it bought into the oil company Repsol. Since 2015, the business has been cleaned up and last year it was finally finished. Today, the company has a strong balance sheet with the help of significant operating cash flows, dividends from associated companies and disposals of more peripheral assets. This, in turn, has now made it possible to invest in projects that one previously had to turn down, as one did not have enough capital to be able to participate. The beauty of this type of business is that once the investment is made, it is a safe asset that generates a predictable cash flow and requires very little incremental investment over its lifetime which can be up to 30-35 years. The company presented its Q4 results on February 29, which were solid, and the stock rose 12.% in March. Despite that rise, the stock trades at a low 10x and 9x operating profit for 2024e and 2025e, respectively.

SUMMARY

We have had a positive outlook of the stock market since mid-October when we started to argue in our monthly newsletter that the conditions for the stock market were starting to be exceptionally good, especially for small- and mid-caps. In Europe, we had basically had 22 months in a row with historically bad conditions and the state of investors was at the turning point at rock bottom. The difference in the state five months later is almost like night and day, especially in the financial markets, but great progress has also been made in the real economy. Our reference point and view from here is that the starting point, after the 22 months mentioned above, was at a level that occurs once per decade. The easy money has been made, but the conditions from here are still unusually good and, once again, especially for small- and mid caps. Nothing has really moved the needle there, as the asset class this year lags behind the general price trend and, in terms of valuation, is at levels that rarely appear. Consequently, we are still clearly optimistic given today's conditions. In order to hopefully increase the understanding of how we think, we first give you an overview of what the major economic conditions look like and then what it means for the smaller companies. Europe is expected, after two years of a retracting economy, to accelerate starting in the second half of this year. Industrial production is an important component. Source: Kepler Cheuvreux Private consumption rises in line with real wage increases and investments are also expected to rise significantly. Source: Kepler Cheuvreux 10 years of steadily declining corporate investment is now reversing. The financial conditions have eased considerably and are a major reason why risk appetite has increased in recent months. Source: Jurrien Timmer, Fidelity European banks, which have been more or less completely knocked out since the GFC in 2008, have since a year ago awoken with profits not seen for more than 17-18 years. The ECB is currently feeding the banks heavily where current interest rates give very strong net interest income for the banks (our own Commerzbank is a perfect example). For some of the banks' customers, it is tough, but for the economy as a whole, it is very positive that banks have finally recovered. European property shares are also starting to heat up after two very challenging years. The bond market, which was completely dysfunctional, has been functional for a few months now and is a strong contributor to the fact that real estate shares have started to recover. For about a year now, the fund has had around 10% exposure in the form of SLP and Corem, where both shares rose by around 33%last year, but this year have fallen by around 1and 4%, respectively. Below are credit spreads for Castellum, Balder and Heimstaden. In six months, Balder's mark-up has dropped from around 500 basis points to just under 200. That is extremely high and of course extremely gratifying. Worth mentioning is that inflows to bond funds have been significant in recent months. So no fear there. Source: Carnegie But it is equity funds that account for most of the inflows so far this year (compared to 2023). Source: Bloomberg, Kepler Cheuvreux The Nordics take the lead in Europe in terms of buying pressure on shares in 2024. That is one reason why we have had and continue to have an overexposure to Sweden in the fund. It has been really depressed up in the Nordics. Source: Kepler Cheuvreux We wrote last month that our firm opinion is that European companies have never done as much buyback of shares as now. We applaud that. The figure below shows the net demand for the US equities since 2000. Corporate buybacks are by far the biggest takers of shares and are to the highest degree contributing to a strong stock market. 5.5 trillion USD… Just under a trillion of that is expected to be bought back this year, so very high levels. Source: Goldman Sachs Another healthy sign is that the market for IPOs opened up in March with several major companies entering the stock market. The majority of these introductions went well with positive returns on day one. We did some work on two European introductions, but nothing was our cup of tea. We expect an accelerating number of introductions before the summer break. Overall it all boils down to the conditions and reasons why we remain positive about smaller companies in particular. Only once before has the negative correlation between the 10-year interest rate and the relative development between small- and mid-caps been greater. It was 2003, which was also the starting point for a number of fantastically good stock picking years for, mainly, smaller companies. Source: Kepler Cheuvreux Smaller companies have developed significantly better than larger companies when interest rates were cut in Europe. We think the kick-off for the first reduction will take place in June (but should happen now already). Source: Kepler Cheuvreux Historically speaking, the development of medium-sized companies has been significantly better compared to larger companies after the first interest rate cut. Below is a hot candidate for picture of the month. Historically, small-caps have taken over the development after a period of mega-cap dominance. Of course, we could be wrong, but for what it's worth, we ourselves are convinced that this will be the case this time as well. Source: MONTANARO, Jeremy Siegel In conclusion, what does the current valuation look like for the small-caps? Thanks for asking, excellent! Source: Kepler CheuvreuxSource: Kepler CheuvreuxSource: Kepler Cheuvreux, Datastream Now we hope (expect) that the asset class, SMID, will also pass some technical levels which will then likely trigger purchase programs that could make it really interesting. Finally we are pleased to announce that we have received a significant capital increase from our largest investor, Norges Bank Investment Management, NBIM. We are of course very happy and proud of this. This underlines the strength of our portfolio management and the fund, Coeli European, is largely a reflection of the mandate we manage for NBIM. That's all for this time and we thank you for your interest! Mikael & Team Malmö April 5th, 2024 [/et_pb_text][et_pb_post_title _builder_version="3.0.89" title="on" meta="off" author="off" date="off" categories="off" comments="off" featured_image="off" featured_placement="below" text_color="dark" text_background="off" border_style="solid" module_class="gen-single-news-heading-module gen-trustee-single-headline" date_format="d M, Y" border_style_all="solid" disabled_on="on|on|on" disabled="on" /][et_pb_text admin_label="Coeli Nordic Corporate Bond Fund R-SEK" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module" disabled_on="on|on|on" disabled="on"]

Coeli Nordic Corporate Bond Fund

Performance in Share Class Currency	1 Mth	YTD	3 yrs	Since incep
Coeli Nordic Corporate Bond Fund - R SEK	1.30%	-0.93%	3.38%	14.52%

[/et_pb_text][et_pb_text admin_label="Coeli Nordic Corporate Bond Fund R-SEK" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module" disabled_on="on|on|on" disabled="on"] [cg_linear_graph id="31122"] [/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2020/10/ncbr.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" disabled_on="on|on|on" disabled="on" /][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads/2019/01/Gustav-Fransson6.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" custom_margin="||21px|" disabled_on="on|on|on" disabled="on" /][et_pb_text admin_label="Namn och title" _builder_version="3.0.89" background_layout="light" module_class="gen-single-ingress-module" custom_margin="||40px|" disabled_on="on|on|on" disabled="on"]

Gustav Fransson

Portfolio Manager of Coeli Nordic Corporate Bond Fund [/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads/2018/10/Alexander-Larsson-Vahlman.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" custom_margin="||21px|" disabled_on="on|on|on" disabled="on" /][et_pb_text admin_label="Namn och title" _builder_version="3.0.89" background_layout="light" module_class="gen-single-ingress-module" custom_margin="||40px|" disabled_on="on|on|on" disabled="on"]

Alexander Wahlman

Senior Analyst [/et_pb_text][et_pb_text admin_label="Top Holdings (%)" _builder_version="3.0.89" background_layout="light" custom_margin="||20px|" module_class="gen-trustee-single-table" disabled_on="on|on|on" disabled="on"]

Top Holdings (%)

LANSBK 1.25% 18-17.09.25	4.1%
NORDEA HYP 1.0% 19-17.09.25	4.1%
SWEDBK 1.0% 19-18.06.25	4.1%
WHITE MOUNT FRN 17-22.09.47	3.9%
B2 HOLDING FRN 19-28.05.24	2.9%

  [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="3.0.89" background_position="top_left" background_repeat="repeat" background_size="initial" module_class="gen-single-news-content-row gen-trustee-single-content-row" custom_padding="0px|||" custom_padding_phone="23px|||" custom_padding_last_edited="on|tablet" module_class_2="gen-trustee-single-sidebar" disabled_on="on|on|on" disabled="on"][et_pb_column type="2_3"][et_pb_text admin_label="Tillbaka-knapp" _builder_version="3.0.89" background_layout="light" border_style="solid" custom_margin_tablet="||17px|" custom_margin_last_edited="on|desktop" module_class="gen-back-button hide-in-print" border_style_all="solid"] Note that the information below describes the share class (I SEK), which is a share class reserved for institutional 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. Return to Fund page [/et_pb_text][et_pb_text admin_label="Datum / Skriv ut" _builder_version="3.0.89" background_layout="light" border_style="solid" custom_margin_tablet="||17px|" custom_margin_last_edited="on|desktop" module_class="gen-single-news-date-module gen-trustee-print-module hide-in-print" locked="on" border_style_all="solid"] [blog_post_date]

Print

[/et_pb_text][et_pb_post_title _builder_version="3.0.89" title="on" meta="off" author="off" date="off" categories="off" comments="off" featured_image="off" featured_placement="below" text_color="dark" text_background="off" border_style="solid" module_class="gen-single-news-heading-module gen-trustee-single-headline" date_format="d M, Y" border_style_all="solid" /][et_pb_text _builder_version="3.0.89" background_layout="light"]

Utveckling september

Fondens värde sjönk -5,1 procent i september (andelsklass I SEK). Stoxx600 (brett Europaindex) sjönk under samma period med -3,4 procent och HedgeNordics NHX Equities var preliminärt oförändrat. Motsvarande siffror för 2021 är en ökning om +21,6 procent för fonden, +14,0 procent för Stoxx600 och +6,4 procent för NHX Equities.  

Equity markets / Macro environment

After seven consecutive months of positive performance the world’s stock markets were poised for some degree of turbulence. Volatility was especially high in some equities and on Monday, September 20, the highest nominal volume ever traded was reached in options on the S&P500 (!) The broad European index fell by 3.4 percent in September compared to the S&P500 which fell by 4.8 percent. The fund also had its first negative performance since October last year with a decline of 5,1 percent. More about that later. Despite high levels for many stock indices, sentiment among investors has been relatively gloomy. Bank of America's monthly survey recently showed that only 13 percent of managers expect a positive market in the future, which is the lowest figure since April 2020 (and that was clearly wrong). The reasons cited are China's growth problems, the crisis-stricken Chinese real estate giant Evergrande, the development of the delta variant, declining profit growth and, of course, rising inflation. However, they are still overweight equities which is perhaps not so strange when you have to pay to lend your capital to countries. As interest rates rose at the end of the month, the German 10-year interest rate followed with a giant step from - 0.25 percent to - 0.17 percent… The picture below is an overall risk indicator, and we are around zero (neutral). The news flow in September began with record high inflation figures in Europe at +3.0 which exceeded market expectations. The corresponding figure in July was + 2.2 percent. It was the fastest growth rate since November 2011 and several countries recorded up to five percent in inflation rate. The pressure on the ECB to reduce its support measures is increasing. On Friday, October 1, new inflation figures came in for September, which showed a further acceleration in the inflation rate by +3.4 per cent. The rate of change can be mostly attributed to rising energy prices that are starting to create real problems in the world's economies as well as agricultural shifts. The picture below shows that food prices are at record high levels over the past 60 years. The biggest losers are the poorest part of the population. In the slightly longer term it is forecasted that it is not excessive demand that will drive inflation, but rather a limited supply, and then both in terms of products and labour. At the end of September, long queues were reported at petrol stations across the UK when fuel ran out and there were not enough truck drivers to refuel. Prime Minister Boris Johnson urges his citizens to refuel sensibly and at a normal rate. You wanted Brexit, so there you go. In sheer desperation, Johnson has now issued 5,000 temporary short-term visas for temporary drivers. Good luck. M25 spring 2022? Below are European gas prices which have risen in a seemingly uncontrolled fashion and recorded the highest September prices ever. A silent prayer for the mild winter. We guess that this development will soon be a major topic in the media, and it will undoubtedly create various problems and somewhat reduce next year's expected growth. It feels reassuring that Per Bolund (Swedish Green Party MP) claims that there is no electricity shortage in Sweden because then the costs for ordinary people would be unbearably high during the winter (which of course they will be). Rising gas and electricity prices have led European politicians to start discussing billion-dollar subsidies (in euros) to households and manufacturers who will experience sharply rising electricity bills over the winter. Source: Bloomberg Henrik Svensson, site manager at the oil-fired power plant in Karlshamn (south Sweden), does not agree with Per Bolund that we have a surplus of electricity in the country. For large parts of September, the power plant ran at full capacity and burned 240k liters of oil per hour. Henrik Svensson believes that it is electricity shortages and high electricity prices that are behind the high production. He also says that there is a lack of planned power production in southern Sweden and that it will take many years before the electricity grid is strengthened and new electricity production is in place. Sweden today burns more oil than we have done in 10 years. A gigantic energy policy and climate policy failure signed by the Green Party. Source: Steget efter Winning candidate for this year's Christmas presents below. The change in the US 10-year interest rate created considerable pressure on, primarily, growth stocks at the end of the month. The performance dispersion for different sectors was very large in September with oil shares as a clear winner. This was also felt in the last days of September. Source: Bloomberg Below is the development for the US 10-year interest rate. The turbulence in the stock market was caused by the change in interest rate level breaking through on the upside, as can be seen in the chart. There have been countless attempts to explain the turbulence in recent weeks. The recent and significant amount of options being exercised, Evergrande, interventions by the Chinese government, Fed tapering, Bank of England expected to raise interest rates, delta variant, inflation, bottlenecks in production, difficulties in finding staff, rising energy prices and declining growth rates. We think it is enough to look at the picture below. Rising interest rates hit hard at growth companies' valuations. Goodbye Mutti and thank you for an extraordinary effort for Europe! Source: Nyhetsbyrån TT She was politically in a class of her own during the euro crisis ten years ago and Sweden also has her to thank for a lot. Despite a somewhat weaker performance in recent years, German citizens have experienced significantly better economic development than many others. On September 29, the covid-19 restrictions in Sweden were finally removed and we can now, in principle, start living a normal life again. The number of bookings for winter holidays skyrocketed to the great joy of the tourist and transport industry. In recent months, tourism activity in the Mediterranean has been "extraordinary" and much better than forecasted before the summer. Luxury travel is also reaching new heights. Private jet passengers to Mallorca increased by +70 percent in July compared to July 2019 with an average of 83 private jets per day landing in Palma. If you want to rent a yacht, you are being referred to next year as basically everything has already been fully booked. We now belong to a minority group. Passively managed capital exceeds actively managed capital for the first time ever. This will give us more opportunities as mispricing increases. In addition to being one of the world's best stock markets this year, Sweden also has the most listed companies in the entire EU. Bloomberg drew attention to the fact that there are now around 1,000 listed companies on the various trading platforms in Stockholm. More than 80 percent are smaller companies, and the list is filled with new listings every day until Christmas! For us, it is interesting as we are constantly looking for new potential core holdings. In recent weeks, we have identified one which we write about under Long Positions. We end this section with a picture that well reflects today's political level. Source: Kluddniklas

Long positions

Truecaller During September, we did a lot of work on the Swedish company Truecaller which will go public on October 8th. Truecaller is one of the most interesting companies we’ve seen in recent years. Truecaller has developed a phone application that can, among other things, identify unwanted calls from, for example, telemarketers. The app is one of the top ten most downloaded applications globally, and in some of the main markets such as India, Nigeria and Indonesia, it is one of the three most downloaded apps. As a Swedish company with headquarters in Stockholm, the firm has chosen to list on the Swedish stock exchange, which we are very happy about. Truecaller was founded in 2009 by Alan Mamedi and Nami Zarringhalam. They met at the Royal Technical University in Stockholm, and they continue to be active in the company as the CEO and Chief Strategic Officer (CSO), respectively. When they released the first version of the app, they received 10,000 downloads within one week. By 2013 they had reached over 10 million users globally and in Q2 2021 they had reached 278 million monthly users. Throughout their journey, Truecaller has attracted several well-known investors such as Sequoia Capital (early investors in Apple, Whatsapp, and Zoom among others), Atomica (Skype-founder Niklas Zennström’s investment company), and Kleiner Perkins (early investors in Google, Amazon, and Spotify among others). Until recently, revenue streams have mainly consisted of income from in-app advertising. In addition to this, there is a premium version where paying users can get additional functionalities. That business accounted for around 20 percent of revenues in 2020. During the fall of 2020, Truecaller launched a corresponding offering that targets corporates.  This part of the business allows B2B customers to be listed as verified callers when they call private people. It can for example be a security company that calls about an alarm or a courier company that needs to get in contact with a receiving customer. It is a common problem that these types of companies get rejected when the call-receiver doesn’t recognize the number. Truecaller declares that their product benefits from network effects. i.e., the product gets better the more people who use it (think Facebook). This can be relatively easy to appreciate since phone number identification inherently evolves from reporting of unwanted calls by the users, i.e., when enough people have reported an unwanted call Truecaller flags for this in the app). Over time, Truecaller has built a database containing 5.7 billion unique phone-identities. Network effects doesn’t just build a better product over time, they also increase the entry-barriers for potential competition. The majority of Truecaller’s income comes from developing countries. The company explains that the problems related to spam emails, harassment, unwanted calls, and messages are more common there than in the western world. India is Truecaller’s largest market where these types of problems are significant. One positive aspect of the geographical exposure is that it allows for a nice structural tailwind: the population growth in developed markets is much higher than in the west (driven by an increasing average age) and the smartphone penetration is growing fast. Historically, 97 percent of all app downloads have been organic. However, management has begun to experiment with user acquisitions by the way of advertisements through, for example, Facebook. The returns on user acquisition looks extremely attractive. In some markets, such as India, Truecaller could achieve a return on investment of up to 20x on every spent dollar. In more mature markets, such as the USA, the same multiple amounts to 4x, still very attractive. Indonesia, which is a relatively new market to the company, has a multiple of 0.8x. This means any user acquisition spend in Indonesia is unprofitable at this point. However, management is confident that the return profile will wander above the 1x as more users join and the network effects take place. In summary, the investment opportunities are plentiful and attractive – and unique. In summary, several things speak for significant growth in the future. The investment in paid user acquisition, a sharpened premium-offer, the newly launched B2B product and continued growth of the advertising business. In addition to this, acquisitions may likely follow. Growth has been prioritized over profitability and it is only recently that the company began to report profits. In 2019 sales grew by 57 percent. In 2020 the corresponding figure was 64 percent, and during the first half of 2021 the company’s sales grew with as much as 151 percent in comparison to the same period last year (which was partly affected by the pandemic). During the first half of this year, the company’s operating margin was 32 percent. As you can imagine, Truecaller is very capital-efficient. Working capital is very low which gives a nice cash conversion and a very high return on capital employed – all attributes that are required to create a very successful and valuable company over time. Truecaller targets a revenue growth of at least 45 percent between 2021-2024e. After 2024 the EBITDA-margin should be at least 35 percent. The sum of the year-on-year growth and the EBITDA-margin should amount to at least 70 percent (a variant of the rule of 40 that tries to balance growth and profitability). We don’t think it will be difficult to reach these targets and the analyst estimates we have looked at are cautious, especially regarding profitability. In our preliminary prognosis for 2023, our EBITDA-estimate is around 16 percent ahead of the analyst estimates that we’ve studied. This is based on that Truecaller can continue to grow sales much faster than hiring new people while the gross margin improves slightly in coming years. The gross margin is an interesting aspect of the equity story. Truecaller’s gross margin amounts to approximately 70 percent. Most of the cost of sales consists of platform fees to Apple and Google. Since Apple and Google practically control the distribution channels for apps together, a duopoly has occurred and prices for app-developers such as Truecaller have remained high around 25-30 percent of sales. This situation is now heavily criticized from all parts of the world since the situation is not considered competitive, for example look at this analysis about an American court ruling concerning a twist between Epic Games and Apple. We believe Google and Apple’s fees will decrease over time – which would be a positive event for Truecaller. Furthermore, Truecaller’s new business deal bypasses Goggle and Apple, which gives a gross margin of close to 100 percent. This will strengthen the profitability even more. There are of course risks associated with the dependence on Google/Apple (which is the case for every company in the application business); the geographical exposure and one should never write off the threat of competition even if it seems far away at this stage. However, we do believe the benefits outweighs the negatives. Truecaller has excellent financial characteristics, operational founders with large shareholdings who will remain active in the business and some of the world’s most well-known investors behind it. We therefore look forward to being included as an anchor investor ahead of the stock exchange listing on October 8th. We are even more excited to follow the company’s successes in current and new markets in the coming years. CVS Group One of the happiest days of the month was when our veterinarian company CVS Group released their interim numbers. Once again, the company beat analysts’ expectations which have been raised several times over the course of the year. In the first two months of the new financial year (which begins in July), the company has grown by 17 percent. This can be compared with the growth expectations for the full year which, before the report release, were 7 percent. Once again, analysts have thus far been “forced” to upgrade their assumptions. In a sour September stock market, the share fell 3 percent. It becomes clear that the positive effect of the pandemic on pet ownership is more tenacious than ever. Pets live for many years, and we believe many underestimated the importance of the large number of new customers during the pandemic. Below is a graph of Google searches for veterinarians in the UK as well as data from the Swedish Board of Agriculture regarding the number of newly registered dogs. We speculate that the UK has similar trends as Sweden. The data points are also positive for our other pet company Swedencare. Pet companies are obviously still hot; right now there’s a bidding war going on over the German pet company Zooplus, where EQT is currently in the lead with the highest bid. We also note that there have been several venture capital-led acquisitions of veterinary companies at higher multiples than CVS is valued at. Source: Jordbruksverket, Coeli Source: Google Trends, Coeli Lindab Since our first investments in Lindab in the autumn of 2019, the thesis has always been that the building systems business segment did not fit into the business and in September, management finally found a buyer for the company. The transaction entails a write-down of goodwill corresponding to SEK 430 million, but it is cash flow neutral. Lindab took the opportunity to update its financial targets; the company now wants to grow by 10 percent per year (of which approximately two thirds are through acquisitions) and reach an operating margin of at least 10 percent (previously 10 percent over a business cycle). The share responded positively to the message. We noted broad insider purchases in Lindab during the month, also from CEO Ola Ringdahl himself, which we think bodes well for the report in October. Despite this the share price decreased 8 percent in September. Victoria We have written several times about the British flooring company Victoria, which in September had a weak share price development of 17 percent. By all accounts, the company is doing well – during the month it was reported that sales rose 70 percent compared to 2020, and 50 percent compared to 2019. If you only partially extrapolate these figures for the rest of the year, it is obvious that analysts’ expectations are too low. We believe that this month’s decline is related to flows: growth companies and small and mid-cap companies were some of the most affected sectors in September – Victoria was hit from both sides. We have increased our position in recent days. The Pebble Group One of the month’s (few) joys was Pebble Group. As we previously wrote, the company is active in the market for gift advertising, i.e. gifts that companies give to customers, employees, and other stakeholders for marketing purposes. In September the company came out with its half-year figures that were better than expected. Pebble’s software division, Facilisgroup, is growing better than our expectations. This is also the part we believe the market is valuing too low. The stock rose 10 percent in September. Knaus Tabbert During the last trading day in September, our German motorhome manufacturer Knaus Tabbert announced that the forecasts for 2021 must be lowered due to component shortages. We are not particularly surprised that this has happened given what we have seen from other vehicle manufacturers. If the company can remedy these supplier problems, management believes that 2022 will be unaffected at best, as Knaus still has a bursting order book, increased production capacity and more suppliers from January next year. The share fell 7 percent in September.

Short positions

The short portfolio contributed with a negative result during the month. Our short-term negative positions in the German DAX had the largest negative contribution. Some stock specific short positions that contributed positively to the result were Swedish Dometic, German Henkel and Norwegian NEL.

Exposure

The net exposure, adjusted for our unlisted holdings, at the beginning and end of the month was 76 and 74 percent, respectively.

Summary

September's negative return of x percent also meant the end of the fund's, so far, longest period of positive return (10 months). We are obviously disappointed with that, but we have been in the game long enough to understand that equities sometimes must fall to be able to refuel and continue their upward trajectory. In general, September was the weakest month for many equities since the crisis started 1.5 years ago. September, otherwise, started strong for us and was a continuation of an unusually good performance at the end of August. Our companies presented many good news (except for Knaus Tabbert on the last day of the month) but small-caps and especially those categorized as growth shares, had a very weak performance during September. The main reason for this was, as previously mentioned, the change in the US long-term interest rate and general "risk off". The picture below shows the development since March last year compared with the corresponding time intervals in the financial crisis in 2009 and onwards. Both periods have shown an unusually strong recovery and the current trend is even stronger than when the financial crisis raged 12 years ago. Source: Goldman Sachs Since the crisis started 1.5 years ago, we have had three different phases. The first and shortest, "despair", showed a decline in prices of 33 percent. The second phase, "hope", ended at the beginning of this year and showed a very strong return of 79 percent despite declining earnings. The last, “growth”, where we are now, has shown +11 percent in share prices with sharply rising growth for companies' earnings, but at lower valuations. Source: Goldman Sachs The recovery for American companies (below) has been extremely strong and compared to 2019, the 2021 profits will be approximately 36 percent higher. Very impressive. Source: Goldman Sachs It is very gratifying that Europe, for once, is keeping up with the United States and showing strong profit growth. Compare this with the non-existent profit growth between 2007–2019 (!) Despite rising equity prices, valuations have fallen and Europe is now trading around 16x the profit 12 months ahead. It's not very strenuous (we think). For an average commercial property, you can get a return of maybe 3 percent before net financial costs. After financing, this corresponds to at least P/E 50x. And paying to lend to different countries does not feel like an exciting alternative either. Source: Goldman Sachs The valuation of global shares in relation to global GDP looks more strained. A major reason for this is the central banks' aggressive policy. The valuation of the major leading technology companies is at an average level seen from the last five years. Source: Goldman Sachs The image below is striking. It shows that Swedish property prices, which have risen by almost 200 percent over the past 15 years, have had the same development as the money supply. In theory, price per m2 and krona is unchanged for the past 15 years. Is there anyone who still doubts that the world's central banks are responsible for the largest wealth creation in human history? It is important to be on the wagon because when it is gone you’ve missed it. And what central banks cannot push, the price of bitcoin for example, rises even more as central banks cannot make more of it. The opportunities for central banks to reverse the band are few. In the long run, this means that the next 10 years will, overall, be a good period for, for example, stock picking. All forms of uniqueness (growth) will be highly valued to compensate for the fact that the value of money decreases at a rapid pace. If there is anyone who is still not convinced, take a look at the picture below. The market capitalization of the S&P500 divided by the Fed's balance sheet…. Source: Bloomberg Onwards and upwards. The wealth of American households is accelerating away from the change in GDP. Thank you Fed and all the world central banks! Citigroup's surprise index has weighed down and analysts' profit estimates are also starting to soften. Not a good combination and it has undoubtedly contributed to the weak development in the stock markets recently. It took a full 219 days for the S&P500 to have a decline of 5 percent. We will see how high the next bar will be.

Timing is everything. A fascinating graph that shows the importance of having reasonable timing in decisions.

Source: Goldman Sachs Despite a difficult month behind us, it feels reasonable to expect a stronger market during the last quarter of the year. Our view is that we are still in a rising market, although we are likely to experience some turbulence for a few more weeks. "Bear markets" are constantly declining with sharp rallies while "bull markets" continue to rise with some strong drawdowns. We therefore believe that we are still in a rising market. Some statistics to cheer you up. The S&P500 managed to rise by 0.2 percent in the third quarter (Europe -1.9 percent) which means six consecutive positive quarters. This has only happened eight times before and only on one of the (eight) occasions has the following quarter yielded a negative return. Two quarters later, it has in all cases yielded a positive return. In addition, for the past 20 years, October has been the fourth best month, thus much better than its reputation. Having pointed that out, October takes first place in terms of most frequent daily movements that exceed one percent. The Stockholm Stock Exchange, which is an excellent reference point, had risen by 30 percent at its highest about a month ago, but is currently at 20 percent. Even more important is that measured in USD, OMX has "only" risen by 13 percent, which is in line with the US stock markets. This is hardly excessive given the profit growth among the companies. The risk premium in the market is high. Investors are reasonably careless, and we are approaching the turn of the year. Global growth is well above average and interest rates are extremely low. Given how cruel the market has been to many investors this year, with sector rotations and a high concentration of companies driving performance, it almost feels obvious that the broad mass of investors will continue to reduce risk in their portfolios and then be short equities at year-end when the market rises. We'll see, but that's our main scenario right now.

We are now closing the books for the third quarter, and we look forward to the end of the year and above all the entrance for Truecaller on the Stockholm Stock Exchange on October 8! Thank you for this month and we'll hear from you later.   Mikael & Team Malmö on 5 October [/et_pb_text][et_pb_text admin_label="Coeli Nordic Corporate Bond Fund R-SEK" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module" disabled_on="on|on|on" disabled="on"]

Coeli Nordic Corporate Bond Fund

Performance in Share Class Currency	1 Mth	YTD	3 yrs	Since incep
Coeli Nordic Corporate Bond Fund - R SEK	1.30%	-0.93%	3.38%	14.52%

[/et_pb_text][et_pb_text admin_label="Coeli Nordic Corporate Bond Fund R-SEK" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module" disabled_on="on|on|on" disabled="on"] [cg_linear_graph id="31122"] [/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2020/10/ncbr.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" disabled_on="on|on|on" disabled="on" /][/et_pb_column][et_pb_column type="1_3"][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads/2019/01/Gustav-Fransson6.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" custom_margin="||21px|" disabled_on="on|on|on" disabled="on" /][et_pb_text admin_label="Namn och title" _builder_version="3.0.89" background_layout="light" module_class="gen-single-ingress-module" custom_margin="||40px|" disabled_on="on|on|on" disabled="on"]

Gustav Fransson

Portfolio Manager of Coeli Nordic Corporate Bond Fund [/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads/2018/10/Alexander-Larsson-Vahlman.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" always_center_on_mobile="on" force_fullwidth="off" show_bottom_space="on" custom_margin="||21px|" disabled_on="on|on|on" disabled="on" /][et_pb_text admin_label="Namn och title" _builder_version="3.0.89" background_layout="light" module_class="gen-single-ingress-module" custom_margin="||40px|" disabled_on="on|on|on" disabled="on"]

Alexander Wahlman

Senior Analyst [/et_pb_text][et_pb_text admin_label="Fund Overview" _builder_version="3.0.89" background_layout="light" custom_margin="||20px|" module_class="gen-trustee-single-table"]

Fund Overview

Inception Date	2017-12-20
Investment management fee (share class I SEK)	1.00% p.a + 20% Performance fee (OMRX T-Bill Index)
Performance Fee. Yes	20%
Risk category	5 of 7

[/et_pb_text][et_pb_text admin_label="Top Holdings (%)" _builder_version="3.0.89" background_layout="light" custom_margin="||20px|" module_class="gen-trustee-single-table" disabled_on="on|on|on" disabled="on"]

Top Holdings (%)

LANSBK 1.25% 18-17.09.25	4.1%
NORDEA HYP 1.0% 19-17.09.25	4.1%
SWEDBK 1.0% 19-18.06.25	4.1%
WHITE MOUNT FRN 17-22.09.47	3.9%
B2 HOLDING FRN 19-28.05.24	2.9%

  [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built="1" fullwidth="off" specialty="off" _builder_version="3.0.89" module_class="gen-trustee-single-yield-section gen-pattern-section" custom_padding="0px|||"][et_pb_row _builder_version="3.0.89" custom_padding="||53px|"][et_pb_column type="4_4"][et_pb_text admin_label="VIKTIG INFORMATION" _builder_version="3.0.89" background_layout="light" module_class="gen-trustee-single-warning-blurb"] IMPORTANT INFORMATION. This is a marketing communication. Before making any final investment decisions, please refer to the prospectus of Coeli SICAV II, 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/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. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]