Evli Euro Liquidity

Short-term fixed income fund that invests in Nordic euro-denominated fixed income instruments

NAV
02.07.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
17.883 -0.69 -0.52 0.04 0.27 0.88
NAV
02.07.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
25.090 -0.69 -0.52 0.04 0.27 2.33
NAV
02.07.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
100.374 -0.61 -0.37 - - 0.15

Risk

1/7

Morningstar

5/5

Recommended Investment Horizon

6 months or more

Administrative fees

0.30 % p.a.

Suitable for investors

  • who value stable returns and steady growth
  • who seek an investment option, for example during unstable market conditions.

Invest

min. 1 000 €

Evli Euro Liquidity Fund is a short-term fixed income fund that invests its assets primarily in Nordic euro-denominated fixed income instruments and other interest-bearing instruments.

Investment decisions are based on the active monitoring of and research into Finnish and international economies and fixed income markets. On the basis of this analysis, a fixed income strategy is formed which directs the focus of investments at different times to the optimal investments in terms of exercise period and interest rate risk.

 

The portfolio is managed by

Juhana Heikkila

Juhana Heikkilä

Investment Objective and Risks

The aim is to achieve a return that exceeds the return of the benchmark index.

All investments are made in euro-denominated instruments free of currency risk.

The fund’s investments carry a credit risk

 Credit risk originates from a bond issuer’s ability to repay the bond’s coupons and capital on the maturity date. In the fund’s investments, the default risk arising from an individual issuer is reduced by diversifying the investments among various issuers. The risk premium (credit margin) required by investors varies during the bonds’ exercise period according to the market conditions and factors related to individual issuers.

As the fund’s floating-rate bond investments are somewhat susceptible to changes in risk premiums, the fund’s value may fluctuate.

The fund’s value is affected by interest rate risk

As money market funds carry a small interest rate risk, the effect of interest rate risk on the fund’s performance is small. The overnight rate risk (duration) is 0-12 months, usually 1-6 months.

Monthly review

31.05.2020

The theme of the month was back to normality. Markets turned quite rapidly to buy-mode once fund outflows ended, even faster than expected. The Liquidity fund had a tough time gathering some longer tenors in order to secure yield for next year too. Especially Swedish and partly Danish issuers' weight has increased. The Swedish issuer weight has, for the first time, exceeded Finnish issuers. Bloomberg quotes by banks are still in the woods, which makes pricing in the secondary market even more difficult. New issues are widely favored, since abundant Central Bank money flows into govies and banks. Luckily some fractions also spill over to the corporate side.

The Liquidity fund's return in May was 0.52% (NoF), while the 3-month Euribor index was -0.01%. The volatility experienced is certainly not desirable for the fund, but given the circumstances, unavoidable. The outlook is relatively positive. The big picture to remember is watching how Germany recovers, since that tends to set the beat for the rest of the bunch.

Fund facts

Type of fund Euro-zone short-term fixed income fund (UCITS)
Investment activity began 31.01.1996
Benchmark index 3 month Euribor
Profit distribution Fund-units are divided into A and B units. Profit share of at least 0.25% is distributed on A units annually.

Downloadable files

Invest

min. 1 000 €