Evli Target Maturity Nordic Bond 2023

Fixed-period fund that invests in Nordic corporate bonds

NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
85.640 -12.34 - - - -11.71
NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
88.295 -12.34 - - - -11.71
NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
85.732 -12.29 - - - -11.51
NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
88.492 -12.29 - - - -11.51
NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
85.946 -12.26 - - - -11.39
NAV
27.03.2020
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
88.611 -12.26 - - - -11.39

Risk

2/7

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.

Invest

min. 1 000 €

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’s investment policy complies with Evli’s policies for responsible investment, in addition to which the fund excludes from its investments companies that have substantial business in the following areas: alcohol, firearms, tobacco, gambling, and adult entertainment. The fund also excludes producers of fossil fuels and controversial weapons.

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.

 

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

31.01.2020

The year started with good demand for corporate bonds and new issues were heavily oversubscribed. Coronavirus concerns led to safe haven demand and government rates were down. German 10yr government bond yield ended at -0.43%. Nordic corporate spreads remained stable.

Stable returns continued in January at +0.58%. Demand for Nordic corporate bonds remained strong. The fund is fully invested.

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 €