Evli Emerging Frontier
Equity fund investing in rapidly growing developing economies
| NAV 04.12.2023 |
Return % Year-To-Date |
Return % 1 y |
Return % p.a. 3 y |
Return % p.a. 5 y |
Return % p.a. Since start |
|---|---|---|---|---|---|
| 184.072 | 9.75 | 7.80 | 14.53 | 12.86 | 10.11 |
| NAV 04.12.2023 |
Return % Year-To-Date |
Return % 1 y |
Return % p.a. 3 y |
Return % p.a. 5 y |
Return % p.a. Since start |
|---|---|---|---|---|---|
| 266.015 | 9.75 | 7.80 | 14.53 | 12.86 | 10.11 |
| NAV 04.12.2023 |
Return % Year-To-Date |
Return % 1 y |
Return % p.a. 3 y |
Return % p.a. 5 y |
Return % p.a. Since start |
|---|---|---|---|---|---|
| 192.626 | 10.72 | 8.84 | 17.10 | 14.79 | 9.59 |
| NAV 04.12.2023 |
Return % Year-To-Date |
Return % 1 y |
Return % p.a. 3 y |
Return % p.a. 5 y |
Return % p.a. Since start |
|---|---|---|---|---|---|
| 110.110 | - | - | - | - | 10.11 |
| NAV 04.12.2023 |
Return % Year-To-Date |
Return % 1 y |
Return % p.a. 3 y |
Return % p.a. 5 y |
Return % p.a. Since start |
|---|---|---|---|---|---|
| 107.793 | - | - | - | - | 7.79 |
Risk
Morningstar
Recommended Investment Horizon
Administrative fees
+ the performance-based fee is 20% of the return figure determined in accordance with the fund rules. In order for the performance fee to be charged, the value of the fund unit series has to exceed its highest historical value and the return of the fund unit series has to exceed the hurdle rate of 8% calculated for each valuation date over the last 24 months.
Suitable for investors
- investors who wish to benefit from economic growth in the emerging economies
- investors who wish to benefit from the world’s fastest growing consumer markets
- investors who seek high returns and can tolerate the risks associated with the emerging markets
- as a part of a diversified investment portfolio due to the high risk level
- 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 € or 50 €/month
Investment Policy
Evli Emerging Frontier Fund is an equity fund that invests its assets in the equities and equity-linked securities of companies operating in the emerging markets and in the frontier markets of the emerging economies. The fund’s geographical investment coverage consists of emerging economies or markets in Asia, Africa, Central Asia, the Middle East and Latin America. The fund may invest in derivatives contracts both for hedging purposes and as part of its investment strategy.
The fund’s investment strategy is active and is based on stock selection. Investments are made in consumer-focused companies with growing cash flow and low market valuations.
The strategy’s target markets are generally less known and less accessible for investors, while their economic growth is forecast to outperform that of the developed economies. This offers investors good diversification and an opportunity for high return.
The portfolio is managed by
Evli Fund Management Company
Investment Objective and Risks
The fund’s investment activities are aimed at maximizing the increase in the value of assets. The fund does not have an official benchmark index.
As the fund’s return expectation and risk level are high, we recommend the fund to experienced investors with long investment horizons. All the fund’s assets are invested in emerging economies’ equity markets, which means that the fund’s value may fluctuate abruptly within a short period as a result of the general performance of the target markets and exchange rate fluctuations. To minimize the fund’s risks, its investments are diversified extensively on a geographical basis and across different industries.
Monthly review
30.09.2023In September, we made a research trip to Turkey. Local sentiment was upbeat given that the new finance minister and central bank governor were given carte blanche by the president to effect an orthodox economic policy which hasn’t been in place for many years; as a result foreign investors started investing in the country again. We met with five portfolio companies which have been growing earnings over 100% in the past several quarters: a $350m holding which owns the world’s largest cruise port operator; a $200m electrical and solar energy contractor moving into EV charging station manufacturing; a $200m luxury leather goods maker; a $2b brokerage; and a $150m diversified investment banking business – all are happy about the improving economic stability.
We also visited Mongolia and met with the stock exchange, largest listed company, largest bank, and best broker to learn about this obscure market we haven’t explored before. We were particularly inquisitive about the steps the regulators are taking to increase trading liquidity and encourage listings by local companies as well as market participation by retail and international investors.
This month, we bought a $200m pipe manufacturer in Saudi Arabia which has been bagging substantial production contracts in recent months. With financial gain to reflect only a few quarters later, its valuation of 9x LTM P/E is very cheap.
Fund facts
| Type of fund | Equity fund investing in emerging markets (UCITS) |
|---|---|
| Investment activity began | 08.10.2013 |
| Benchmark index | No official benchmark index |
| Profit distribution | Fund-units are divided into A and B units. Profit share of at least 4% is distributed on A units annually. |
Sustainability-related disclosures
Financial product’s sustainability information in accordance with EU Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 (sustainability‐related disclosures in the financial services sector). This is a financial product in accordance with Article 8 of the SFDR.
Publication date: December 1, 2022
Legal Entity Identifier: 743700YPCR6AEFOX2L80
Read the summary in FR, DE, IT, NO, ES
a) Summary
This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.
Environmental and social characteristics are promoted by observing Evli’s Principles for Responsible Investment, Climate Change Principles and climate targets, and by requiring that target companies observe good governance practices. The fund excludes harmful industries on the basis of Evli’s responsibility principles and Climate Change Principles. In addition, target companies are monitored regularly to ensure they have not violated the norms of specific international treaties and principles.
The fund promotes climate change mitigation in accordance with Evli’s climate targets: the fund’s carbon footprint and emission indicators are measured and monitored, and a regular scenario analysis is conducted to monitor the attainment of Evli’s general climate targets. Evli’s goal is to achieve carbon neutrality by 2050 at the latest, and it has set an interim target of a 50 percent reduction in indirect emissions from all investments by 2030, provided that this is possible in the investment environment. The comparison year is 2019. The fund-specific share of the emission reduction target may vary between funds.
Investment targets are monitored regularly, and efforts are made to engage with companies to influence their practices. Evli can engage with companies either independently or together with other investors. The themes of Evli’s engagement are climate change mitigation, respect for human rights, anti-corruption measures, taking environmental issues into consideration, factors related to good governance and the reporting of responsibility factors. Evli’s Responsible Investment Policy and Corporate Governance Principles set the framework for Evli’s engagement and conduct in the event of perceived breaches of the Code.
The fund’s target companies are analyzed before an investment decision is made and at regular intervals during the investment period with regard to environmental, social and corporate governance matters, or ESG factors. ESG factors are integrated into the analysis of target companies and their selection for investment by the fund. Evli has built an internal ESG database based on data produced by external service providers, which it uses to monitor ESG factors.
The achievement of the environmental or social characteristics promoted by the financial product is monitored and reported annually through a sustainability indicator, which is the number of target companies that have not committed serious norm violations.
Sustainability indicators are monitored through Evli’s internal ESG database. The data is based on data provided by external service providers, which is not verified by a third party. The completeness of the data is reported in conjunction with the sustainability indicators. All active investments of the fund promote environmental and social characteristics by observing Evli’s Principles for Responsible Investment and Climate Change Principles, and completeness of data has no impact on observance of the above-mentioned principles.
The fund does not have an official benchmark index.
b) No sustainable investment objective
This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.
c) Environmental or social characteristics of the financial product
In addition to other characteristics, the fund promotes environmental and social characteristics by observing Evli’s Principles for Responsible Investment, Climate Change Principles and climate targets, and requires that target companies observe good governance practices. The fund excludes harmful industries on the basis of Evli’s responsibility principles and Climate Change Principles. In addition, target companies are regularly monitored for violations of norms.
The fund promotes climate change mitigation in accordance with Evli’s climate targets: the fund’s carbon footprint and emission indicators are measured and monitored, and a regular scenario analysis is conducted to monitor the attainment of Evli’s general climate targets. Evli’s goal is to achieve carbon neutrality by 2050 at the latest, and it has set an interim target of a 50 percent reduction in indirect emissions from all investments by 2030, provided that this is possible in the investment environment. The comparison year is 2019. The fund-specific share of the emission reduction target may vary between funds.
Investment targets are monitored regularly, and efforts are made to engage with companies to influence their practices. Evli can engage with companies either independently or together with other investors. The themes of Evli’s engagement are climate change mitigation, respect for human rights, anti-corruption measures, taking environmental issues into consideration, factors related to good governance and the reporting of responsibility factors.
d) Investment strategy
The fund’s target companies are analyzed before an investment decision is made and at regular intervals during the investment period with regard to environmental, social and corporate governance matters, or ESG factors. ESG factors are integrated into the analysis of target companies and their selection for investment by the fund. Evli has built an internal ESG database based on data produced by external service providers, which it uses to monitor ESG factors.
The attainment of the climate targets will be measured using data from external service providers to monitor the fund’s carbon footprint and intensity, the degree of low-carbon transition, a scenario analysis in relation to the target of limiting global warming to 1.5 degrees Celsius and the warming ratio associated with the fund.
An assessment of the quality of corporate governance is an important part of the assessment of potential investments. Good governance refers in particular to effective management structures, employee relations, staff remuneration and tax compliance.
Evli’s ownership control principles state that the companies it invests in must engage in good governance by complying with the Finnish Corporate Governance Code issued by the Securities Market Association, for example, or corresponding foreign guidelines, which often impose a partial framework on the remuneration models of the invested companies. In addition, Evli’s Responsible Investment Team analyzes the fund’s investments every three months for any breaches of norms (UN Global Compact and OECD’s guidelines for multinational companies). The OECD’s guidelines for multinational companies also cover disputes related to taxation. Consequently, such disputes may lead to the exclusion of an investment instrument.
e) Proportions of investments
All active investments of the fund promote environmental and social characteristics.
f) Monitoring of environmental or social characteristics
The achievement of the environmental or social characteristics promoted by the financial product is monitored through the number of target companies that have not committed serious norm violations. The Responsible Investment Team analyzes norm violation cases in accordance with the process set out in the Principles for Responsible Investment.
g) Methods concerning environmental or social characteristics
The environmental and social characteristics promoted by the financial product are monitored and reported using the sustainability indicators mentioned above.
h) Data sources and data processing
Evli has built an internal database based on data provided by external service providers, which is used for monitoring and reporting sustainability indicators and adverse impacts of investment decisions related to the promotion of the promoted environmental and social characteristics. The data from external providers is not verified by a third party and the completeness of the data is reported at the same time.
i) Limitations of methods and data
The achievement of the promoted environmental and social characteristics is reported annually through the sustainability indicators mentioned above, in conjunction with which the completeness of the data from the target companies is also reported. All active investments of the fund promote environmental and social characteristics by observing Evli’s Principles for Responsible Investment and Climate Change Principles. The completeness of the data does not affect compliance with the above principles.
j) Due diligence
The fund’s target companies are analyzed before an investment decision is made and at regular intervals during the investment period with regard to environmental, social and corporate governance matters, or ESG factors. ESG factors are integrated into the analysis of target companies and their selection for investment by the fund. Evli has built an internal ESG database based on data produced by external service providers, which it uses to monitor ESG factors. Evli regularly monitors its active investments and seeks to influence the companies’ practices. If a company violates the principles of the UN Global Compact, the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises or Evli’s Climate Change Principles, Evli will either seek to influence the company’s actions through engaging with it or exclude it from its investments. The methods are based on data provided by an external service provider, which is not verified by a third party.
k) Engagement policies
The financial product can be used to engage with the target companies as part of the promotion of environmental and social characteristics. Evli’s Responsible Investment Policy and Corporate Governance Principles set the framework for Evli’s engagement and conduct in the event of perceived breaches of the Code.
l) Designated reference value
The fund does not have an official benchmark index.
Read more about Evli's responsible investing
Report on the promotion of the fund's environmental and social characteristics in 2022
Downloadable files
min. 1 000 € or 50 €/month
Historical returns are no guarantee of future returns.
This page provides general product information and is a marketing communication. Historical returns are no guarantee of future returns. The value of an investment may rise and fall and the investor may lose some or all of the capital invested. The contents of this website should not be considered as investment advice and should not be relied upon in making an investment decision. Before making an investment decision, you should consult the fund's legal documents, such as the fund rules, the key investor document and the fund prospectus. The statutory documents and additional information of the funds are available on the product-specific pages and on www.evli.com/en/products-and-services/mutual-funds/funds/prospectus-presentations.