Portfolio Manager comment Coeli Global Select October 2020

October was an exciting month with many companies reporting; although, we saw slightly larger negative stock market movements towards the end of the month. These stemmed from the US elections and, in particular, the second wave of the coronavirus, which is again spreading across a large part of the world. A consequence of these market movements, Coeli Global Select was down 2.6 percent in value during October, which was 0.8 percentage points worse than our benchmark. Despite the disappointment of not beating the index during October, we take consolation in having outperformed our benchmark by more than 11 percent in total year-to-date.

Moreover, looking at the reports from our holdings, we can only describe them as impressive. Company after company beat expectations and only two, Mastercard and Beijer Ref, were marginally weaker. All the other reports went our way. The two companies with by far the best reports versus expectations were building materials supplier Martin Marietta and Indian bank Kotak Mahindra. These two also contributed the most to the fund’s performance during the month. The poorest contributor was Mastercard, which released a slightly weaker report, followed by Global Payments, whose particularly solid report did not deserve a poor share price development at all.

Key market events and trends affecting performance

Much of the activity on the markets right now is, understandably, shaped by the coronavirus and the US presidential elections. In our opinion, by far the most important factor is that some solution to the coronavirus pandemic is found. There’s no doubt about the pent-up consumption need among consumers, so any positive news on the vaccine front is likely to spur a sizeable economic recovery with substantial stock market increases.

Portfolio changes

During October, we invested in Polish e-commerce company Allegro. If you’d like to learn about this investment, you are welcome to read more on our website.

The fund’s positioning

The fund is well-positioned both in the market and for the year-end and into 2021 – a year we look positively towards, anticipating upward profit trends for our companies. We have a decent balance between our sectors and are not especially affected by the development in any particular one.

* 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.