Evli Global X

An active equity fund that excludes companies operating in certain sectors

NAV
22.09.2022
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
119.921 -8.95 -1.31 10.32 - 8.33
NAV
22.09.2022
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
141.226 -8.95 -1.31 10.32 - 8.33
NAV
22.09.2022
Return %
Year-To-Date
Return %
1 y
Return % p.a.
3 y
Return % p.a.
5 y
Return % p.a.
Since start
144.928 -8.55 -0.71 10.98 - 8.98

Risk

6/7

Morningstar

5/5

Recommended Investment Horizon

7 years or more

Administrative fees

1.60 % p.a.

Suitable for investors

  • who want to invest in an actively managed and globally diversified international equity portfolio
  • who want to benefit from the return opportunities of global equity markets in the long term but accept the price volatility typically associated with equity investment that may be significant in the short term
  • whose investment principles include negative screening and exclusion of companies
  • 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 Global X Fund is an equity fund that invests globally in equities. The fund’s investment strategy is active. The fund invests primarily in developed economy equities in Europe, North America, Japan and Australia. The fund focuses on underpriced companies that generate cash flow and have strong debt coverage.

 

The portfolio is managed by

Wilhelm Bruun

Wilhelm Bruun

Marjaana Haataja

Marjaana Haataja

Investment Objective and Risks

The aim is to earn a return which is similar to Evli Global Fund, taking company exclusion into consideration.

Look at Evli Global

Monthly review

31.08.2022

The Fund’s return was -4.42% in August, while the return of the benchmark index was -2.80%. The Fund’s annualized return since 31.5.2018 (when the Fund was launched) was 9.14%, while the benchmark’s annualized return was 11.05%.

By sector, stock selection and sector weights weakened the return differential in the aggregate. The most negative effects came from selection in industrials and from a lack of investments in energy, while the most positive ones came from selection in IT and communication services. Geographically, the biggest harm to relative performance came from stock selection (for example in the UK, Canada, and France) and from currency weights (such as an underweight in USD). Country weights, mainly an overweight in Japan, improved the return differential somewhat. By stock, the bottom attributors were Open Text, Persimmon, and Hexpol, while the top attributors were Yelp, McKesson, and Europris. 

We invest in underpriced companies that generate cash flow and have strong debt coverage. The Fund does not invest in companies that have substantial business in the following areas: alcohol, weapons and firearms, tobacco, gambling, fossil fuels, nuclear power, adult entertainment and GMOs.

Fund facts

Type of fund International equity fund (UCITS)
Investment activity began 31.05.2018
Benchmark index

MSCI World TR Net (USD)

Profit distribution Fund-units are divided into A and B units. Profit share of at least 4% is distributed on A units annually.

Responsibility and consideration of sustainability factors

Sustainability information in accordance with Articles 6 and 8 of the EU SFDR regulation 2019/2088 (sustainability‐related disclosures in the financial services sector).

The fund promotes environmental and social characteristics in accordance with Article 8 of the SFDR.

Sustainability risks are taken into account in investment decisions

When building and monitoring the fund’s investment portfolio, traditional financial and other key indicators, such as risk and valuation indicators, and also sustainability risks are taken into account in investment decisions. In addition to the analysis made in connection with investment decisions, the sustainability risk is managed with the exclusion of certain sectors and/or companies. When realized, material sustainability risks can affect the financial performance of the fund’s investment instruments, and therefore the fund’s return.

Excluding certain sectors and/or financial instruments from investment can reduce the fund’s sustainability risk. It can, however, increase the fund’s concentration risk. A potential increase in concentration risk, taken in isolation, may lead to greater volatility and increase the risk of loss.

Environmental and social characteristics

In addition to other characteristics, the fund promotes environmental and social characteristics in accordance with Evli's Principles for Responsible Investment and requires that target companies observe good governance.

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 MSCI ESG Research and ISS ESG, which it uses to monitor ESG factors. For each fund an ESG score is calculated, reflecting how well the companies a fund has invested in have taken sustainability risks and opportunities into consideration as a whole. The indicators also include company-specific ESG scores and their development, information on any UN Global Compact violations, the company’s reputation risk, carbon footprint and the proportion of fossil reserves. Evli also engages with target companies in accordance with Evli's ownership control principles. Engagement may be motivated by violations of UN Global Compact norms or reasons related to climate goals.

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 a target of a 50 percent reduction in indirect emissions from investments by 2030, provided that this is possible in the investment environment. The comparison year is 2019. The attainment of the climate targets will be measured using data from ISS ESG and MSCI ESG to monitor the fund’s carbon footprint and intensity, the degree of low-carbon transition, a scenario analysis in relation to the 1.5 degree warming target and the warming ratio associated with the fund.

The EU Taxonomy Regulation defines economic activities that are environmentally sustainable. In order for an economic activity to be considered environmentally sustainable under the EU Taxonomy Regulation it must not, in addition to contributing to one or more environmental objectives, cause significant harm to other environmental objectives mentioned in the Regulation. The “do no significant harm” principle applies only to those investments underlying the financial product that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this financial product do not take into account the EU criteria for environmentally sustainable economic activities. The Fund is not committed to making sustainable investments in accordance with the EU Taxonomy Regulation.

Good governance policy

An assessment of the quality of corporate governance is an important part of the assessment of potential investments.

Evli's ownership control principles require that the companies it invests in 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 analyses 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.

ESG strategy

Various factors related to a company are taken into account when making investment decisions. ESG factors are a key part of risk analysis and investment decisions. Evli's Principles for Responsible Investment and Climate Change Principles establish a framework for its investment activities. Portfolio managers carry out analyses of the companies and their ESG-associated risks. The Responsible Investment Team supports the portfolio managers in their work, and Evli's Responsible Investment Steering Group makes decisions on the framework of responsible investment. Evli also has an internal ESG database which combines the responsibility data of the companies in which investments are made from various data sources.

Our responsibility reporting comprises fund ESG reports, customer-specific ESG reports, and the Responsible Investment Annual Report. Evli also reports on the promotion of environmental and social characteristics in accordance with the SFDR as part of the mutual funds’ annual review.

The Principles for Responsible Investment, the Climate Change Principles and the exclusion consensus criteria apply to all direct investments made by the fund.

The fund can use derivatives or other strategies occasionally, regularly, extensively or not at all. Its key investor information document (KIID) includes information on how often and for what purpose derivatives are used. Such investments are not covered by ESG requirements. 

Evli’s Principles for Responsible Investment and exclusion

Evli's Principles for Responsible Investment define the basic standards for norm-based screening and exclusion of companies. Investments are regularly monitored with respect to the UN Global Compact principles. If the target company is found to violate the principles related to human rights, labor standards or the environment or actions against corruption as defined in the UN Global Compact initiative, Evli will engage with the company or exclude it from investments. On the basis of regular monitoring, Evli's Responsible Investment Team will take the necessary measures with respect to companies that are suspected of having violated international laws and regulations. Such companies can either be excluded directly or Evli can engage with them. If dialogue with a company fails or is deemed to be unhelpful, the company may be added to the exclusion list.

In accordance with Evli’s general exclusion principles, manufacturers of controversial weapons (landmines, cluster munitions, nuclear weapons, depleted uranium, chemical weapons and biological weapons) with a 0 percent revenue threshold, as well as tobacco manufacturers and producers of adult entertainment and companies involved in controversial lending (including so called pay-day lenders) with a 5 percent revenue threshold are excluded from the fund. In line with Evli's Climate Change Principles, the fund monitors the greenhouse gas emissions of its investments and avoids investing in companies in which at least 30 percent of revenue comes from extraction of thermal coal, use of thermal coal in energy production or the extraction of oil sands. This exclusion may be waived if the company has a clear plan to change its operations. In addition, companies producing peat for energy production are excluded.

In addition to the fund’s own exclusion principles, the fund excludes companies with significant business in the following sectors: alcohol, weapons and firearms, tobacco, gambling, fossil fuel mining, extraction, drilling and refining, nuclear power, adult entertainment or GMOs.

Benchmark index and fund responsibility profile

The fund’s benchmark index is a market-based index that does not consider sustainability factors. The benchmark index used by the fund can be found in the fund-specific key investor information document.

Read more about Evli's responsible investing

Downloadable files

Invest

min. 1 000 € or 50 €/month