[et_pb_section bb_built="1" fullwidth="off" specialty="off" _builder_version="3.0.89" background_image="https://coeli.com/wp-content/uploads//2019/04/Coeli-Global-Selektiv.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 _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"][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"]
This material is marketing communication
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="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" border_style="solid" module_class="gen-single-news-content-module"]
The performance of Coeli Global Select was -2.82% in September, which was 1.05 percentage points worse than the benchmark index. The equity markets are once again anxious about the development of market interest rates.
The shares that performed most strongly during the month were United Health Group, Watsco, and Fortnox. The three weakest performers were Societe Generale, Adobe, and Lonza.
The poor performances of Societe Generale and Lonza stemmed from company-specific aspects spurred by their CEOs. In Societe Generale's case, the acting CEO took down guidance for its coming results. This was most likely to make it easier for the company to outperform with the coming quarterly numbers. In terms of Lonza, the firing of the CEO leaves the company searching for a replacement.
The solid performances by United Health, Watsco, and Fortnox came, simply enough, thanks to business developing well, which the stock markets appreciate a little more when market unrest rears its head. The same is true of a majority of our companies, as our global fund focuses on investing in profitable, quality businesses - our stable Champions.
We recommend you read our blog
www.coeli.se/global/bloggen/, where we have recently published two interesting new posts (in Swedish) on our recent Silicon Valley trip.
Key market events and trends (what has influenced performance most?)
During the month, the markets were most affected by the new highs in interest rates, stemming from, among other things, the Fed's announced further increase in the key interest rate to curb inflation. The rise in market interest rates means more and more investors demanding interest-bearing assets, and an increased interest in fixed income assets leads to a "natural" flow out of the equity markets, in turn prompting a flow-driven decline. The asset case most affected is small caps, while larger companies have fared somewhat better.
We also saw rising oil prices during September, pulling oil company share prices up with them. Coeli Global does not invest in oil or gas companies for sustainability reasons, meaning we have lost relatively speaking in returns versus energy companies. We also believe inflation is on its way down in almost all countries - evidence that the central banks' tough monetary policies are taking effect. We hope that the central banks act carefully, however, with new increases, as consumers are already struggling with interest payments.
Portfolio changes
During the month, we made four changes to the Global Select fund. Among the Special Situations, we sold vehicle retailer Autonation and bought German real estate company Vonovia. We have owned Vonovia before, but have had a particularly low real estate exposure in the fund for some time given the prevailing inflation and interest rate environment. Vonovia's valuation of a P/B (price to book) of 0.58x, however, makes it an appetizing addition to the fund.
Among our Champions, we sold hearing aid firm Sonova and bought the US's Medpace. The company's activities include clinical testing of drug candidates for pharmaceutical companies at its own laboratories. Medpace's healthy cash flows are impressive, which, combined with an "asset-light" business model, makes the company particularly appealing. A company doesn't need to use so much of its cash flows on investments, but can instead use this money to pay off some of its (low) debt or to buy back shares. During 2022, Medpace bought back 10% of all outstanding shares, meaning that 2023 net profits will be split across 10% fewer shares. This gives a pleasing boost to its earnings per share development during the year.
The fund's positioning—our market expectations
The expected profit growth for the fund as a whole is a little over 17% for 2024. This is largely the same profit expectations the fund had a month back, meaning September's decline has resulted in a lower valuation of the fund. Based on the fund's solid portfolio of stable Champions at its foundations, there is generally a "floor" to a valuation decline before buyers return and flock back to quality companies. Right now, our global fund is valued at around 20x profits for 2024, making it both interesting and attractive given the expected profit growth of around 17%.
[/et_pb_text][et_pb_text admin_label="Coeli Global Selektiv Graf" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module"]
Coeli Global Select
| Performance in Share Class Currency | Mth | YTD | 3 yrs | Since incep |
| Coeli Global Select - R EUR | -2.82% | 19.56% | 27.14% | 139.74% |
| Benchmark | -1.77% | 11.44% | 35.35% | 112.05% |
[/et_pb_text][et_pb_text admin_label="Coeli Global Select R-EUR" _builder_version="3.0.89" background_layout="light" module_class="gen-table-module" disabled_on="on|on|on" disabled="on"]
[cg_linear_graph id="31126"]
[/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2023/10/ENG-Graf-Global-Select-september-2023.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="off|off|off" disabled="off" /][et_pb_text _builder_version="3.0.89" background_layout="light" border_style="solid" module_class="gen-single-news-content-module" disabled_on="on|on|on" disabled="on" border_style_all="solid"]
[cg_staple_graph id="31020"][cg_staple_graph id="30982"]
[/et_pb_text][et_pb_image _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2023/10/ENG-Global-Select-Land-sektor-september-2023.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="off|off|off" disabled="off" /][/et_pb_column][et_pb_column type="1_3"][et_pb_image admin_label="Bild Andreas" _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2019/09/Andreas-Brock.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|" /][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|"]
Andreas Brock, CFA
Portfolio Manager Coeli Global Select
[/et_pb_text][et_pb_image admin_label="Bild Henrik" _builder_version="3.0.89" src="https://coeli.com/wp-content/uploads//2019/09/Henrik-Milton.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|" /][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|"]
Henrik Milton
Portfolio Manager Coeli Global Select
[/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 | 2014-11-28 |
| Management Fee | 1.4 % |
| Performance Fee | Yes, 10% |
| Risk category | 4 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"]
Top Holdings (%)
| MASTERCARD INC | 4,5% |
| UNITEDHEALTH GROUP INC | 4,4% |
| ADOBE INC | 4,4% |
| ALPHABET INC | 4,3% |
| MSCI INC | 4,2% |
[/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"]
DISCLAIMER. 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/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]