Evli Euro Liquidity

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

NAV
25.02.2021
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
18.097 0.31 0.47 0.41 0.48 0.94
NAV
25.02.2021
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
25.390 0.31 0.47 0.41 0.48 2.32
NAV
25.02.2021
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
101.674 0.33 0.63 0.56 - 0.54

Risk

2/7

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
  • who want to invest responsibly and take into account not only economic analysis but also environmental, social and good governance (ESG) factors.

Invest

min. 1 000 €

Investment Policy 

Evli Euro Liquidity 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.

Responsibility

ESG factors are integrated into the fund's investment decisions, and the fund follows Evli's general exclusion practices. The fund's investments are monitored for violations of UN Global Compact norms and the Climate Change Principles, and the fund engages with the companies it invests in or excludes them if violations are detected. The fund's ESG indicators are reported in a fund-specific ESG report, which is updated four times a year.

Read more about Evli's responsible investing

 

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

31.01.2021

The year end rally continued in January. Money is flooding everywhere and buyers are active on a large scale. Simultaneously, large corporate performance seems relatively good and balance sheets are in order, therefore the credit investor can relax a bit. Those companies benefiting from the pandemic are visible by now and some caution is warranted. Inflation is rising, the pace of vaccination hopefully advancing, giving a change for explosive growth at year end. What will central banks do then?

The fund gained 0.19% (NoF), while the 3-month Euribor index dropped again by -0.04%. Every soul is bidding at the short curve. Decent risk-return opportunities are history by now. Central banks should immediately cease buying.

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 €