Evli Euro Liquidity

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

NAV
20.10.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
17.999 -0.04 0.07 0.22 0.40 0.92
NAV
20.10.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
25.253 -0.04 0.07 0.22 0.40 2.33
NAV
20.10.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
101.071 0.08 0.22 - - 0.39

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 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.

Responsibility

ESG factors are integrated into the fund's investment decisions, and the fund follows Evli's general exclusion practices except for the exclusion of tobacco manufacturers. With regard to the exclusion of tobacco manufacturers, the fund has been granted a transitional period of 12 months ending on December 31, 2020. 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.

 

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

30.09.2020

Longer Euribors have continued to fall on the back of mounting liquidity. The whole curve beyond 3 months starts to be at a -0.5% level. The pandemic's new surge brought momentary movement to risky assets and offers in some names, but very limited at the short end of the curve. Risk-return levels are not lucrative at the moment. Finnish names have seen plenty of events lately and during the whole year. Buy-outs and mergers remove issuers at a rapid pace. Once capital is lagging, Finland starts to experience large corporate lagging.

The fund's return in September was -0.01% (NoF), while the 3-month Euribor index slipped again by -0.04%. Return-wise, the month was quite boring. Expectations for year end are slightly positive, with the best rally being behind us. Investors should be wary of several volatility spikes, unless the pandemic is tamed.

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 €