Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Fact Sheet (February 2025)
55 slides from Evli Plc Class B's fact sheet, Feb 28, 2025
Slide 1: Evli Nordic Small Cap B
EVLI NORDIC SMALL CAP B This is marketing material for the fund and is not intended as investment advice or recommendation. Before making an investment decision, the investor must read the fund's key information document and other statutory information about the fund. 28.02.2025 ISIN: FI4000532528 B
Slide 2: Evli in Brief
2 EVLI IN BRIEF “We see wealth as an engine to drive sustainable progress.” CONFIDENTIAL
Slide 3: Evli Plc
3 ASSETS UNDER MANAGEMENT (EUR MARKET POSITION AS INSTITUTIONAL Evli Plc BILLION) DECEMBER 31, 2024 ASSET MANAGER (KANTAR PROSPERA 2024) Evli Plc is a Finnish independent investment service 18.9 1. company with a nearly 40-year operating history. We are currently Finland's leading institutional asse
Slide 4: Evli's mutual funds
4 Evli’s mutual funds FUND AUM (EUR BILLION) NUMBER OF FUNDS Funds are managed by Evli Fund Management DECEMBER 31, 2024 Company Ltd, which is a Finnish fund management company. Evli Fund Management Company is part of 13.4 64 Evli Group whose parent company is Evli Plc. Morningstar, an independent f
Slide 5: Award-winning asset management from Evli
5 Award-winning asset management from Evli Evli has been leading Kantar Prospera’s survey for 12 consecutive years in a row1. In the SFR Research’s Institutional Investment Services survey, Evli has been ranked first for five years and second place for three, based on the overall quality assessment2
Slide 6: Investment Universe
6 INVESTMENT UNIVERSE Evli Nordic Small Cap CONFIDENTIAL
Slide 7: Nordic small caps have outperformed Finnish small caps and broad HEX-Index
7 Nordic small caps have outperformed Finnish small caps and broad HEX-Index during the last ~16 years* Historical return is no guarantee of future return. 1000 13,9% 900 800 700 11,6% 11,0% 600 500 400 300 200 100 0 VINXSCEN Index HEXYP Index CSRXFI Index VINXSCEN Index HEXYP Index CSRXFI Index IND
Slide 8: Thinner sell-side analyst coverage enables alpha creation through our own work
8 Thinner sell-side analyst coverage enables alpha creation through our own work Number of companies per market cap Number of analysts following a company bucket on average per market cap bucket 19 999 13% have no analyst coverage 9 28% have no analyst 305 coverage 78% have no analyst 5 173 coverage
Slide 9: Nordic Small Caps have outperformed broader European and Nordic indices
9 Nordic Small Caps have outperformed broader European and Nordic indices during the last 10 years (2014-2024) Historical return is no guarantee of future return. 300 300 9,6% 9,6% 250 250 8,3% 8,0% 200 7,0% 6,6% 6,6% 6,3% 200 6,3% 150 3,6% 150 100 50 100 12/2017 12/2014 09/2015 06/2016 03/2017 09/2
Slide 10: Benchmark, VINX Small Cap Index, is tilted towards Sweden and industrial companies
12 Benchmark, VINX Small Cap Index, is tilted towards Sweden and industrial companies Country weights VINX Small Cap Index 5% Sweden 4% • EUR 578m 11% Norway Median market cap 47% Denmark 16% Finland • 481 Number of companies Iceland 18% Other • 11.5% Weight of 10 biggest companies Industrials Secto
Slide 11: Investment Philosophy and Process
13 INVESTMENT PHILOSOPHY AND PROCESS Evli Nordic Small Cap CONFIDENTIAL
Slide 12: Fund management team
14 Fund management team Janne Kujala Ville Tiainen CFA. PORTFOLIO MANAGER, HEAD OF CFA. ANALYST, NORDIC EQUITIES NORDIC EQUITIES - Born 1972. M.Sc. (Econ.) from - Born 1987, M.Sc. Finance, Aalto University of Tampere. CFA University School of Business. designation in 2004. - CFA designation in 2021
Slide 13: Philosophy (1/2)
15 Philosophy (1/2) Markets are – The stock market is pretty good at incorporating information in stock prices. But not all the time and efficient on everywhere – especially not in the stock prices of smaller companies average – not – In our experience it is possible to consistently create added val
Slide 14: Philosophy (2/2)
16 Philosophy (2/2) – Bigger active weights – every stock contributes to performance Concentrated portfolio – Common sense: easier portfolio manager oversight with a limited number of companies …but with adequate diversification – One in, one out principle enforces discipline – Know your companies,
Slide 15: The Ideal company should have…
17 The Ideal company should have… Large and structurally growing addressable market with high entry barriers Sustainable strategy that’s based on company’s competitive advantages Entrepreneurial culture Strong growth prospects High profitability, ROIC and Free Cash Flow Solid balance sheet CONFIDENT
Slide 16: Investment process
19 Investment process Portfolio Idea construction generation Research CONFIDENTIAL
Slide 17: Investment process
20 Investment process 100+ management meetings per year 50+ sell-side research meetings per year 10+ small-cap seminars per year Portfolio Idea Daily fundamental and technical screening construction generation (Bloomberg & sell-side research) Research CONFIDENTIAL
Slide 18: Investment process
21 Investment process 100+ management meetings per year 50+ sell-side research meetings per year 10+ small-cap seminars per year Portfolio Idea Daily fundamental and technical screening construction generation (Bloomberg & sell-side research Technical analysis Fundamental analysis - Price trend & mo
Slide 19: Investment process
22 Investment process Portfolio construction 100+ management meetings per year - Concentrated portfolio of ~35 stocks - Meaningful active weights 50+ sell-side research meetings per year - “One in – One out” –principle - Exits based on deteriorating 10+ small-cap seminars per year fundamentals or un
Slide 20: Investment process
23 Investment process Portfolio construction 100+ management meetings per year - Concentrated portfolio of ~35 stocks - Meaningful active weights 50+ sell-side research meetings per year - “One in – One out” –principle - Exits based on deteriorating 10+ small-cap seminars per year fundamentals or un
Slide 21: Investment process
24 Investment process Portfolio construction 100+ management meetings per year - Concentrated portfolio of ~35 stocks - Meaningful active weights 50+ sell-side research meetings per year - “One in – One out” –principle rader Mindset - Exits based on deteriorating T 10+ small-cap seminars per year fu
Slide 22: Excellence in business analysis and stock picking – real edge from portfolio management
25 Excellence in business analysis and stock picking – but the real edge comes from portfolio management Portfolio management Stock picking Fundamental analysis CONFIDENTIAL
Slide 23: Skill in fundamental analysis forms the base
26 Skill in fundamental analysis forms the base – but that’s just table stakes in small cap investing • Thinner, or non-existent, analyst coverage creates a possibility to really add value through fundamental analysis. Market efficiency is a relative concept. • We focus underlying market, company’s
Slide 24: Our approach to stock picking combines fundamentals, expectations, valuation and technical indicators
27 Our approach to stock picking combines fundamentals, expectations, valuation and technical indicators Fundamentals Expectations Valuation Technicals • Structurally growing • Conservative estimates • Within bounds of rationality • Price trend & momentum market compared to sector and/or • In genera
Slide 25: Portfolio management is all about cutting your losses and letting your profits run
28 Portfolio management is all about cutting your losses and letting your profits run, easier said than done Evli Finnish Small Cap long term top attributors CONFIDENTIAL
Slide 26: Track Record and Portfolio Composition
41 TRACK RECORD AND PORTFOLIO COMPOSITION Evli Nordic Small Cap CONFIDENTIAL
Slide 27: Net of fee returns - YTD
42 Net of fee returns - YTD Portfolio Benchmark Difference YTD 2.80% 4.94% -2.14% Portfolio Benchmark Difference Volatility 12.91% 11.96% 0.95% Sharpe 0.18 0.37 -0.19 Tracking Error 7.28% - - Information Ratio -0.29 - - Beta 0.90 - - CONFIDENTIAL
Slide 28: Net of fee returns - 1 Year
43 Net of fee returns - 1 Year Portfolio Benchmark Difference 1 Month 2.32% 0.06% 2.26% 3 Months 5.08% 5.43% -0.36% 6 Months 0.33% 0.11% 0.22% 1 Year 13.10% 13.01% 0.09% Portfolio Benchmark Difference Volatility 11.90% 11.20% 0.70% Sharpe 0.78 0.82 -0.04 Tracking Error 6.42% - - Information Ratio 0.
Slide 29: Net of fee returns - Since launch
44 Net of fee returns - Since launch Portfolio Benchmark Difference 1 Year 13.10% 13.01% 0.09% Since launch 21.38% 26.51% -5.13% Since launch, 8.69% 10.63% -1.94% annualized return Portfolio Benchmark Difference Volatility 14.37% 14.97% -0.60% Sharpe 0.37 0.49 -0.12 Tracking Error 7.07% - - Informat
Slide 30: Annual returns, after fees, 28.02.2025
45 Annual returns, after fees, 28.02.2025 Past returns are no guarantee of future returns. 2022 2023 2024 2025 Portfolio 3.43% 4.09% 9.68% 2.80% Benchmark 1.98% 9.10% 8.35% 4.94% Difference 1.45% -5.01% 1.32% -2.14% Volatility 17.71% 16.25% 12.51% 12.91% Tracking Error 9.92% 7.56% 5.79% 7.28% Evli N
Slide 31: Portfolio structure 28.02.2025
46 Portfolio structure 28.02.2025 Evli Nordic Small Cap B CONFIDENTIAL
Slide 32: Top holdings 28.02.2025
47 Top holdings 28.02.2025 10 LARGEST INVESTMENTS % Lagercrantz Group AB 5.92% AAK AB 5.03% Harvia Oyj 4.91% Modern Times Group MTG AB 4.39% Ringkjoebing Landbobank A/S 4.14% Matas A/S 4.13% Dynavox Group AB 3.83% OEM International AB 3.73% Ambea AB 3.71% Humana AB 3.54% Evli Nordic Small Cap B CONF
Slide 33: Attribution YTD 31.12.2024
48 Attribution YTD 31.12.2024 Historical return is no guarantee of future return. Top Attributors 2024 YTD, as of December 31st % Port, avg % Active Re tu rn , % Attrib ., % Ambea 4.7 4.6 84.7 2.4 Bonesupport Holding 3.8 3.4 101.9 2.1 Hexagon Composites 1.8 1.7 58.9 1.6 Lagercrantz Group 4.1 3.2 49.
Slide 34: Peer analysis – 1 year
49 Peer analysis – 1 year Past returns are no guarantee of future returns. Cumulative returns Evli Nordic Small Cap Fund B The Upper Quartile Median The Lower Quartile 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% 2024-01 2024-03 2024-05 2024-07 2024-09 2024-11 Return (Cumulative) Beta Down Capture Rat
Slide 35: Product Summary - Evli Nordic Small Cap Fund
51 Product Summary - Evli Nordic Small Cap Fund Type of Fund Finnish equity fund (UCITS) Benchmark VINX Small Cap EUR NI (VINXSCEN) Fund Units Retail distr. A and growth B series, and institutional growth IB-series (min investment 5m EUR) Bloomberg/ISIN A-series: EVNORCA FH / FI4000532510 B-series:
Slide 36: Risk and reward profile
52 Risk and reward profile Value of the fund unit may increase or decrease, and the investor may lose all or part of the invested capital. Source: EVLI Nordic Small Cap Fund Key Investor Information Document CONFIDENTIAL
Slide 37: ESG Metrics Q2 2024
EVLI NORDIC SMALL CAP 53 ESG Metrics Q2 2024 Responsibility score AA Carbon footprint 17 UN Global Compact 0,0 % SFDR classification: Article 8 (t CO2e/M$ sales) fails CURRENT RESPONSIBILITY SCORES CARBON FOOTPRINT AND FOSSIL FUEL RESERVES DEVELOPMENT OF CARBON INTENSITY OF CURRENT INVESTMENTS 99,99
Slide 38: Ambition
54 AMBITION “We want to be the forerunner in responsible wealth management in the Nordics, and in this way help our clients in managing their wealth to support a sustainable future.” CONFIDENTIAL
Slide 39: Evli is a forerunner in Responsible Investing
55 Evli is a forerunner in Signatory of a COP15 initiative ’Moving Together on Nature’ Responsible Investing Signatory of Open Letter to EU leaders Joining the PRI Advance initiative as from investors on a endorser sustainable recovery Signatory of a from COVID-19 joint statement on European Investo
Slide 40: Four pillars of responsible investing at Evli
56 Four pillars of responsible investing at Evli #1 in Sustainable investing according to Finnish institutions 2017-20242 Principles for ESG 1 -integration in Engagement and Reporting Responsible Investment Team Responsible Investment investment process active ownership – Decided by Evli’s – Portfol
Slide 41: Monitoring, engagement and active ownership
57 Monitoring, engagement and active ownership ENGAGEMENT ACTIVITIES 2024 UN Global Compact, the UN Guiding Principles on Business and Human COLLABORATIVE ENGAGEMENT PARTICIPATING IN GENERAL Rights, the OECD Guidelines for Multinational Enterprises and Evli’s climate INITIATIVES MEETINGS principles
Slide 42: Exclusions in practice in all Evli funds
58 Exclusions in practice in all Evli funds – With 0% revenue threshold: – Controversial weapon manufacturers – Companies manufacturing peat for energy production – With 5% revenue threshold: – Tobacco producers, adult entertainment producers and companies practicing controversial lending – With 10%
Slide 43: Evli's climate change principles
59 Evli’s climate change principles 1. Analysis – Monitoring the emissions of companies in Evli’s funds through fund-specific carbon footprints. – Funds’ carbon footprints are also assessed by Evli’s Responsible Investment team. 2. Exclusion – Avoiding1 investments in companies that gain a significa
Slide 44: Evli's climate targets
60 Evli’s climate targets Evli aims for carbon neutrality of its own operations by 2025, and carbon neutrality of investments by 2050 at the latest. The interim target for the investments -50% reduction in indirect emissions from investments by 2030 (compared to 2019). We are aware that a credible l
Slide 45: ESG is integrated into the investment process
61 ESG is integrated into the investment process Principles of Engagement Principles of Responsible ESG integration in Engagement and active Impact and Responsible Investment ESG integration investment process and active ownership Impact and reporting reporting Investment ownership BEFORE THE INVEST
Slide 46: Active ESG approach
62 Active ESG approach 1. ANALYSIS 2. MONITORING AND ▪ Evli has ESG data on 13,900 ENGAGEMENT issuers in its internal ESG database. ▪ Norm compliance information for 24,500 issuers. ▪ Each fund gets an ESG score calculated based on ▪ Screening funds to find out whether responsibility factors and the
Slide 47: With systematic climate change policy
63 With systematic climate change policy ANALYSIS ENGAGEMENT EXCLUSION REPORTING ▪ Monitoring the ▪ Encouraging ▪ Avoiding investments in ▪ Funds’ carbon emissions of companies to companies that gain a footprints are companies in Evli’s report the climate significant part of their reported publicly.
Slide 48: Evli aims to halve the carbon emissions of its investments by 2030
64 EVLI AIMS TO HALVE THE CARBON EMISSIONS OF ITS INVESTMENTS BY 2030 AND SETS A TARGET TO BE A NET ZERO ASSET MANAGER AT THE LATEST BY 2050 Interim targets for own Interim targets for operations investments Achieving carbon neutrality by 50% reduction by 2030 using 2019 2025 at the latest as the ba
Slide 49: Evli Swedish Small Cap exclusion
65 Evli Swedish Small Cap exclusion Evli’s general exclusion: Controversial weapons (landmines, cluster bombs, incendiary weapons, laser-blinding weapons depleted uranium, nuclear weapons, chemical and biological weapons, and non-detectable fragments) with a 0% threshold and companies manufacturing
Slide 50: ESG reports provide a comprehensive and transparent view
66 ESG reports provide a comprehensive and transparent view 1 3 – Quarterly ESG Reports on all Evli funds are published to the open public to add to transparency and improve industry best-practice. – Main content in ESG Report 4 1. ESG approach, exclusion criteria, active 2 ownership. 2. Main ESG me
Slide 51: At Your Service
67 AT YOUR SERVICE “Our mission is to increase clients' wealth according to their individual targets.” CONFIDENTIAL
Slide 52: At your service
68 At your service – Distinctive and comprehensive reporting - My Evli online service - Monthly fund reviews - Monthly custody statement - All Evli’s market and equity analysis - Quarterly ESG reports – Evli funds present on - Bloomberg, Citywire, Lipper, eVestment, Morningstar, Reuters, Sijoitustut
Slide 53: Important information
69 Important information This marketing material is intended for non-professional and professional clients in Finland, Sweden, Lithuania, Latvia and Estonia. In other jurisdictions this Document is intended only for professional clients. The management company of the fund is Evli Fund Management Com
Slide 54: Disclaimer statement
70 Disclaimer statement Evli This presentation is intended only for the recipient's personal and private use. This material is based on sources that Evli Group (Evli) considers correct and reliable. However, neither Evli nor its employees give any guarantee concerning the correctness, accuracy or co
Slide 55: Evli Funds social media and contact details
LinkedIn – Evli Funds LinkedIn – Evli Funds Facebook – Evli Funds Facebook – Evli Funds Facebook – Evli Funds Message Service X – Evli Funds Message Service X – Evli Funds Message Service X – Evli Funds evli.com evli.com evli.com Evli Plc | Aleksanterinkatu 19 | P.O. Box 1081 | FI-00101 Helsinki, Fi