Balanced fund that invests in Finnish equities and euro area fixed income instruments
Evli Finland Mix Fund is a balanced fund that invests its assets mainly in Finnish equities and euro-zone fixed income instruments. When the outlook for the equity markets is promising, the main emphasis is on equities. Conversely, when the outlook is negative, the weighting of fixed income instruments is increased. Depending on the market situation, the weighting of the fund’s equity investments varies within the range of 20-60%, the neutral weighting being 40%. The average duration of the fund’s fixed income investments may not exceed 10 years.
Responsibility and consideration of sustainability factors
SFDR classification*: article 8, light green
The fund promotes sustainability factors as part of investment operations by integrating responsibility factors into investment analyses and by engaging with and excluding companies. In the investment process the portfolio manager assesses the company from an ESG perspective as part of the overall investment decision. In the ESG analysis, the portfolio manager sets the most important ESG themes and risks for the company and the company’s sector. Identifying companies’ key ESG themes and risks helps the portfolio manager focus on the most important areas in the investment monitoring phase and in discussions with the companies’ management. The fund follows Evli’s general exclusion practices. The general meetings of the companies in the fund is attended on the basis of a company-specific assessment. The companies invested in by the fund are monitored for violations of UN Global Compact standards and the Climate Change Principles, and they are engaged with or excluded if violations are detected. The ESG indicators of the fund are reported in fund-specific ESG reports, which are updated four times a year. The fund’s benchmark index is a market-based index that does not consider sustainability risks or sustainability factors. The benchmark index used by the fund can be found in the fund-specific key investor information document.*In accordance with the Sustainable Finance Disclosure Regulation (SFDR), Evli’s funds are classified into three categories with respect to sustainability factors: mainstream funds do not address sustainability factors, light green funds promote sustainability factors among other features, and dark green funds aim to make sustainable investments
The portfolio is managed by
Investment Objective and Risks
The aim is to earn a return which, over a period of more than three years, exceeds the return of the benchmark index.
|Type of fund||Finnish balanced fund (UCITS)|
|Investment activity began||01.11.1995|
OMX Helsinki Cap_GI Index (40%), ICE BofA All Maturity Finland Government Index (40%), 3 months Euribor rate (20%) as of October 21, 2021
|Profit distribution||Fund-units are divided into A and B units. Profit share of at least 4% is distributed on A units annually.|
July turned out to be a strong month in developed stock markets. The S&P 500 index's 9.1 percent monthly return was the highest since the end of 2020. In Europe and Finland, the main indices rose by 7.3 and 6.7 percent, respectively, bringing them closer to the levels of early June.
Expectations of a more dovish rate hike path by the Fed supported the risk sentiment during the past month. Growth stocks with longer duration in particular benefited from the declining real rate outlook. The development of the fund lagged behind the benchmark index by 0.7 percent in July. On the equity side, the relative return was burdened the most by an underweight in Kojamo (no significant company-specific news) and an overweight in Duell (a weaker-than-expected quarterly report and deteriorating consumer sentiment). As interest rates fell, the portfolio's corporate bonds with a longer duration (Lassila & Tikanoja's and Nokia's senior bonds maturing in 2028) performed best in July. Finnair's and Suominen's corporate bonds were the biggest negative attributors in the fixed income portfolio.
In the equity portfolio, we sold Valmet and Kojamo, and reduced Nokia. We opened a new position in Wärtsilä and added e.g. UPM-Kymmene and Nordea.