Morningstar has handed a Bronze rating to the Evli Europe Fund. This means that Morningstar’s analysts believe in the funds ability to generate excess risk adjusted return over the market cycle. Moreover, “With its distinctive and well-executed process”, as Morningstar says in its report, “there’s a lot to like in this fund.”
Evli Europe’s unique investment philosophy is based on investing in underpriced companies with good long-term cash flow and strong debt coverage. The philosophy pinpoints the importance of discipline in stock selection. The result of the process is a portfolio that deviates strongly from the benchmark. The approach provides the opportunity to achieve good long-term returns without the need for perfect timing.
“We think the portfolio management team led by Hans-Kristian Sjöholm has executed this process well.” Morningstar said and “As can be expected from its selection criteria, the fund has had strong downside protection” and “On the back of highly successful stock-picking, the fund has outperformed the index by 564 basis points on an annual basis”.
Unlike the backward-looking Morningstar Rating (often referred to as the "star rating"), which assigns the stars based on a fund's past risk- and load-adjusted returns versus category peers, the Analyst Rating is the summary expression of Morningstar's forward-looking analysis of a fund.
The Analyst Rating is based on the analyst's conviction in the fund's ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over the long term. If a fund receives a positive rating of it means Morningstar analysts think highly of the fund and expect it to outperform over a full market cycle of at least five years.