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Return to Fund page
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We’ll start this newsletter by congratulating all of you who have been invested in this fund since its inception five years ago – your money has now doubled in value! The NAV rate (SEK institutional share class) was in excess of 200 on October 30
th and regardless of what share class you own, the fund is now at an all-time high, which means that everything invested in the fund is in positive territory.
This month’s newsletter is written from a hotel room in Mumbai, India. We are here to meet the management of some of the country’s largest corporations, including representatives from the three Indian banks that our fund invests in. But more on that in next month’s newsletter. If we instead look back at October, we can ascertain that the fund performed 2.1 percent better than the index and generated 2.6 percent in absolute returns. Many of the shares performed well during the month, the very best was India’s Yes Bank, which rose by 66 percent. Siltronic and Magazine Luiza also performed very well, with increases of 24 percent and 23 percent respectively. On the other hand, Pagseguro and AAK had weak performances, falling 22 percent and 10 percent respectively, the former because the largest shareholder decreased its holding and the latter on account of a report that was weaker than expected.
Key market events and trends affecting performance
From a larger perspective, the global economy is split right now. The manufacturing industry – predominantly engineering and the production of vehicles, trucks, construction equipment, etcetera – is suffering. This is not quite the 2008 cataclysm, but it is a weakening to more normalised levels, and it seems set to persist for another 6-12 months. It is largely impacting European economies with many large car, chemical and steel businesses.
On the other side, consumer industries globally are faring much better. For example, our holdings L’Oréal and Estée Lauder have seen organic sales growth of 8-12 percent for the latest reported quarter, predominantly driven by Chinese consumption. Also, in the US many consumer-related companies are performing solidly and the country’s incredible tech firms are growing in leaps and bounds. Take our investment in Microsoft as an example; it has seen organic growth of an outstanding 59 percent in its cloud service Azure in the last quarter.
Portfolio changes
During the month we made two portfolio changes. We sold our special situations stock Siltronic (a producer of silicon wafers to customers in the semiconductor industry) and replaced it with three real champions that are also active in that industry: ASML, TSMC, and NVIDIA. The other change we made was to sell another special situations holding, United Rentals (the world’s largest lessor of construction-related equipment), and instead we bought Sterling Construction, a Texas construction company. We are already up 21 percent in our position in Sterling and see this as – touch wood! – one of the most straightforward and fun investments we have done in a long time. You can read more about Sterling Construction and our view on the semiconductor industry on our website:
coeli.se/global.
The fund’s positioning
In principle, the fund’s positioning is unchanged from the previous month. We have a marginally higher position in the semiconductor industry than we have had before.
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Coeli Global Select I-EUR
| Performance in Share Class Currency | 1 Mth | YTD | 3 yrs* | Since incep* |
| Coeli Global Select - I EUR | 2.59% | 23.61% | 40.69% | 66.43% |
| Benchmark | 0.50% | 22.65% | 35.73% | 53.27% |
* 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.
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Andreas Brock
CFA, Portfolio Manager Coeli Global Select
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Henrik Milton
Portfolio Manager Coeli Global Select
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Fund Overview
| Inception Date | 2014-11-28 |
| Management Fee | 1.4 % |
| Performance Fee | Yes, 10% |
| Risk category | 5 of 7 |
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Top Holdings (%)
| SIKA LTD | 4.8% |
| THERMO FISHER SCIENTIFIC | 4.8% |
| ADOBE INC | 4.7% |
| VISA INC -A- | 4.7% |
| GLOBAL PAYMENTS INC- | 4.6% |
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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.
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