Evli Target Maturity Nordic Bond 2023

Fixed-period fund that invests in Nordic corporate bonds

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
100.102 0.81 1.64 - - 1.76
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
103.206 0.81 1.64 - - 1.76
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
100.441 0.85 1.90 - - 2.01
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
103.674 0.85 1.90 - - 2.01
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
100.830 0.87 2.05 - - 2.17
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
103.956 0.87 2.05 - - 2.17

Risk

3/7

Morningstar

0/5

Recommended Investment Horizon

Until December 31, 2023, when the fund’s fixed-period investment strategy ends

Administrative fees

0.85 % p.a.

Suitable for investors

  • who want to benefit from the competitive performance of the Nordic corporate bond market
  • who prefer a stable Nordic political and economic operating environment
  • who want to benefit from Evli’s expertise in Nordic corporate bonds
  • who want to benefit from the fund’s easy and effective buy-and-hold strategy
  • who prefer the fund's active approach to responsible investment
  • who are prepared to commit to the fund until December 31, 2023, when the fund's fixed-period investment strategy will end
  • 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 Target Maturity Nordic Bond 2023 is a long-term corporate bond fund that invests mainly in bonds issued by Nordic companies, financial institutions and other organizations. The investments are made in rated investment grade and high yield bonds and unrated corporate bonds. The fund may also invest its assets in derivatives contracts both for hedging purposes and within the fund’s investment strategy.

The fund has a fixed-period investment strategy that will end on December 31, 2023, at the latest. In general, the fund’s investments are passive holdings.

Responsibility

ESG factors are integrated into the fund’s investment decisions, and the aim is to select companies with a high ESG score, that is, the fund use so-called positive selection. In addition to Evli's general exclusion practices, the fund exclude alcohol and weapons manufacturers, gambling companies and fossil fuel mining, extracting and drilling companies from its investments. The fund’s investments are monitored for violations of UN Global Compact norms and the Climate Change Principles, and the fund engage with the companies they invest in or exclude them if violations are detected. The ESG indicators of the fund is reported in fund-specific ESG report, which is updated four times a year.

Read more about Evli's responsible investing

 

The portfolio is managed by

Jani Kurppa

Jani Kurppa

Juhamatti Pukka

Juhamatti Pukka

Investment Objective and Risks

The fund’s goal is to achieve a roughly three percent annual yield over the long term. The fund does not have an official benchmark index. The yield expectation and risk of the fund is higher than that of funds that invest solely in government bonds.

The fund does not require its investments to be credit-rated, which means that the fund's investments are subject to an average or high credit risk. The credit risk arising from individual issuers is reduced by diversifying the investments among various issuers.

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 credit risk grows, the values of the bonds in the portfolio decrease and vice versa. Lower credit-rated High Yield bonds, in particular, carry a significant credit risk.

The fund’s value is affected by interest rate risk

A decrease in interest rates raises the value of the fund, while an increase reduces the value of the fund. Interest rate risk may be measured with the average remaining exercise period (duration). Interest rate risk indicates how sensitive the value of the fund is to changes in interest rates. Long-term fixed income funds are much more sensitive to interest rate movements than money market funds. The value of the fund may fluctuate heavily if there are substantial changes in interest rates.

Monthly review

31.01.2021

Nordic markets were more positive than others as the recovery in prices continues. The limited supply in vaccines was pressuring the sentiment, but central bank buying remained steady. The German 10yr government bond yield rose to -0.52%.

Nordic bond prices have not rallied at the same pace as similar European credits. As a result, relative value in the Nordics is now at a better level than before the crisis. Economic signs indicate that Nordic economies will manage the crisis well from a relative perspective. All Nordic central banks or governments have announced buying corporate bonds from the secondary and primary markets. Also, all countries have started many direct programs to support companies. Portfolio companies have again reported better than expected results for Q3.

The January return was positive +0.36%, as prices continued to recover. The bonds in the fund are recovering well and there has been no need for major adjustments. The portfolio yield level is around 2.8%.

Fund facts

Type of fund Nordic corporate bond fund (UCITS)
Investment activity began 06.05.2019
Benchmark index

No official benchmark index

Profit distribution Fund-units are divided into A and B units. Profit share of at least 3% is distributed on A units annually.

Downloadable files

Invest

min. 1 000 €