Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Investor Presentation (February 2025)
51 slides from Evli Plc Class B's investor presentation, Feb 28, 2025
Slide 1: Evli European Investment Grade IB
EVLI EUROPEAN INVESTMENT GRADE IB 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: FI40
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: Successful Fixed Income Management from Evli
6 SUCCESSFUL FIXED INCOME MANAGEMENT FROM EVLI The results of Evli’s corporate bonds family of funds CONFIDENTIAL
Slide 7: Evli's excellent corporate bond track record
7 Evli’s excellent corporate bond track record Quartile Rankings 4Q 2024* Historical returns are no guarantee of future returns. Morningstar Peer 3 5 10 15 Evli Fund Group Years Years Years Years EUR Ultra Short-Term Evli Euro Liquidity 1 1 1 1 Bond – The first credit fund, Evli Corporate Bond Fund
Slide 8: Evli's corporate bond funds in a nutshell
8 Evli’s corporate bond funds in a nutshell Fund Evli Euro Liquidity Evli Short Corporate Evli Nordic Corporate Evli Corporate Bond Evli Green Corporate Evli European Evli European High Yield Evli Emerging Markets Bond Bond Bond Investment Grade Credit Invests into Nordic ultra-short term Short date
Slide 9: Why Invest in European Corporate Bonds?
9 WHY INVEST IN EUROPEAN CORPORATE BONDS? Evli European Investment Grade CONFIDENTIAL
Slide 10: Evli IG – Active Selection Adds Value
10 Evli IG – Active Selection Adds Value Evli European Investment Grade IB 31.1.2015 - 31.1.2025 Past returns are no guarantee of future returns. Difference Fund Index – Active company selection with 80% active 20.0% After fees share 15.0% – Higher returns with lower volatility 10.0% – All investmen
Slide 11: Evli Investment Grade Fund
11 Evli Investment Grade Fund FUND Evli Investment Grade Fund EUR IG bonds with at least one IG – Invests in Euro-denominated European Invests into rating or similar credit profile investment grade bonds Active share vs EUR IG >80%, – Bonds with official credit ratings have to be Key differentiators
Slide 12: Investment Philosophy and Process
12 INVESTMENT PHILOSOPHY AND PROCESS Evli European Investment Grade CONFIDENTIAL
Slide 13: Investment Philosophy and Strategy
13 Investment Philosophy and Strategy - Creditworthiness is the most important factor in selecting investment targets DISCIPLINED - We assess the TRUE credit quality, NOT relying on official rating - The coupon is a central part of the return - We only invest in issuers that we like, regardless of t
Slide 14: Investment Process
14 Investment Process Idea Generation Credit Analysis Execution Screening Company Analysis Portfolio Investment Universe: - Financial Statement Analysis Overview and diversity: - Euro-denominated IG bonds, the - Industrial & Economic Outlook - Diverse portfolio with 60-100 size of which is mainly at
Slide 15: Company analysis
15 Company analysis – Main focus on companies that over the cycle: – generate consistent positive free cash flow – debt leverage decreasing & debt coverage increasing – Are priced at an attractive spread compared to their risk Management and other Interest Groups - Management’s abilities and future
Slide 16: How ESG is taken into account in investment decisions
16 How ESG is taken into account in investment decisions ESG factors will influence our analysis of the company, industry as well as our thoughts on the management and owners. Portfolio Managers - Focus on issues that are quantifiable in terms of credit quality - For example: Damage to brands, legal
Slide 17: ESG examples from Evli's corporate bond funds
17 ESG examples from Evli’s corporate bond funds ENVIRONMENTAL Will affect certain sectors more (oil, mining). Examples: - Invested in the Volvo Car new green bond as the company committed to a new industry leading electric strategy - Did not participate in Volkswagen Green bond issue due to UN Glob
Slide 18: Evli Fixed Income Team: Evli Investment Grade
18 Evli Fixed Income Team: Evli Investment Grade Broad-based collaboration within the team to leverage our strong position in different credit classes Nordic Corporate Bonds Investment Grade Corporate Bonds Jesper Kasanen Portfolio Manager In the Industry since 2018 ✓ ✓ Jani Kurppa Juhamatti Pukka S
Slide 19: Evli's fixed income team
19 Evli’s fixed income team Mikael Lundström Juhamatti Pukka Jussi Hyyppä Juhana Heikkilä Jani Kurppa Juha Mäntykorpi CHIEF INVESTMENT HEAD OF FIXED INCOME HEAD OF LOAN SENIOR PORTFOLIO SENIOR PORTFOLIO PORTFOLIO MANAGER OFFICER STRATEGIES MANAGER MANAGER AT EVLI SINCE 1996 AND AT EVLI SINCE 2008 AN
Slide 20: Evli European Investment Grade Fund in a Nutshell
20 Evli European Investment Grade Fund in a Nutshell Type of Fund European Corporate Bond fund (UCITS) Benchmark ICE BofA Euro Corporate Index Fund Units Retail distribution (A-series), retail growth (B-series) and institutional share class (IB-series) A units EUR: EVLEIGA FH / FI0008803937 (min. 3%
Slide 21: Considerations and Risk Factors
21 Considerations and Risk Factors The fund’s investment activities aim to achieve a higher long-term return on assets than the benchmark. The fund’s return expectation and risk are higher than for funds that invest solely in government bonds. The fund may make use of the general outlook on the fixe
Slide 22: Track Record and Portfolio Composition
22 TRACK RECORD AND PORTFOLIO COMPOSITION Evli European Investment Grade CONFIDENTIAL
Slide 23: Net of fee returns - 1 Year
23 Net of fee returns - 1 Year Portfolio Benchmark Difference 1 Month 0.57% 0.61% -0.04% 3 Months 0.63% 0.67% -0.04% 6 Months 3.27% 3.16% 0.11% 1 Year 7.03% 6.83% 0.20% Portfolio Benchmark Difference Volatility 2.60% 2.61% -0.02% Sharpe 1.24 1.15 0.09 Tracking Error 0.38% - - Information Ratio 0.53
Slide 24: Net of fee returns - 10 Years
24 Net of fee returns - 10 Years Portfolio Benchmark Difference 1 Year 7.03% 6.83% 0.20% 3 Years 2.98% 1.85% 1.13% 5 Years 1.06% -1.60% 2.66% 10 Years 12.91% 9.60% 3.32% 10 Years, 1.22% 0.92% 0.30% annualized return Portfolio Benchmark Difference Volatility 3.63% 3.83% -0.21% Sharpe 0.20 0.11 0.09 T
Slide 25: Annual returns, after fees
25 Annual returns, after fees, 28.02.2025 Past returns are no guarantee of future returns. 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Portfolio 4.63% 4.36% -1.77% 5.84% 3.64% -0.21% -14.91% 8.77% 5.26% 1.00% Benchmark 5.09% 2.21% -1.11% 6.38% 2.73% -1.11% -14.47% 8.08% 4.58% 1.09% Difference
Slide 26: Evli European Investment Grade Allocation 12/2024
26 Evli European Investment Grade Allocation 12/2024 – Overweight Subordinated debt in very good quality companies –Corporate hybrids (the best quality credits: Merck, Vattenfall, Telia) –Market repriced a lot wider during 2022 – Overweight Financials –Offers higher spreads to corporates –Profitabil
Slide 27: Evli Investment Grade statistics
27 Evli Investment Grade statistics Fund statistics 28.02.2025 Yield (YTM) 3.22% Mod. duration 4.39 Spread duration 4.48 Average rating BBB+ OAS 106bps HY exposure 0.0% Green Bonds 25.59% Average ESG (MSCI) AA Size of the fund EUR 440mln CONFIDENTIAL
Slide 28: Attribution last 12 Months
28 Attribution last 12 Months (31.12.2023-31.12.2024) Historical returns are no guarantee of future returns. – Fund return +5.60% vs. benchmark return +4.61% (gross of fees), difference +0.99 % – Positive attribution from company/bond selection: +1.01 % – Neutral attribution from duration/curve/othe
Slide 29: Portfolio structure
29 Portfolio structure 28.02.2025 Evli European Investment Grade IB CONFIDENTIAL
Slide 30: Top holdings
30 Top holdings 28.02.2025 10 LARGEST INVESTMENTS 10 LARGEST ISSUERS % % Elisa Oyj 27.1.2029 4% Callable Fixed 2.35% UBS Group AG 3.38% Euroclear Invsts 11.4.2048 2.625% Callable Fixed 2.13% ING Groep NV 2.46% Deutsche Boerse 28.9.2033 3.875% Callable Fixed 1.93% DNB Bank ASA 2.44% Dnb Bank Asa 28.2
Slide 31: Peer analysis – 3 years
31 Peer analysis – 3 years Past returns are no guarantee of future returns. Cumulative returns Evli European Investment Grade B The Upper Quartile Median The Lower Quartile 0% -2% -4% -6% -8% -10% -12% -14% -16% -18% 2022-01 2022-07 2023-01 2023-07 2024-01 2024-07 Return (Cumulative) Beta Bear Beta
Slide 32: ESG Metrics Q4 2024
EVLI EUROPEAN INVESTMENT GRADE 32 ESG Metrics Q4 2024 Responsibility score AA Carbon footprint 47 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 INVESTME
Slide 33: Ambition
33 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 34: Evli is a forerunner in Responsible Investing
34 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 35: Four pillars of responsible investing at Evli
35 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 36: Monitoring, engagement and active ownership
36 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 37: Exclusions in practice in all Evli funds
37 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 38: Evli's climate change principles
38 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 39: Evli's climate targets
39 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 40: What Opportunities Does the Market Currently Offer?
40 WHAT OPPORTUNITIES DOES THE MARKET CURRENTLY OFFER? Evli European Investment Grade - Overview of the market CONFIDENTIAL
Slide 41: Evli's funds vs. the market
41 Evli’s funds vs. the market 28.2.2025 8,0 Evli fund Evli Nordic Senior Secured Loan (AIF; 7.13%) Market 7,0 Evli Nordic High Yield (6.14%) Evli European High Yield (6.08%) 6,0 European Developed Markets High Yield Constrained Evli Emerging Markets Credit (5.15%) 5,0 Yield to maturity Evli Nordic
Slide 42: Market outlook
42 Market outlook – Germany’s decision to change their – The Q4 reporting season had a positive – The corporate bond market offers deficit policies impacted European yield tone from a credit investor’s attractive spreads and yield level curves significantly, new world order perspective leads to high
Slide 43: Spreads: BBB-rated IG in Europe
43 Spreads: BBB-rated IG in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 44: Spreads: B-rated HY in Europe
44 Spreads: B-rated HY in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 45: Credit metrics (IG + HY)
45 Credit metrics (IG + HY) Net leverage (net debt to EBITDA) EBITDA margin Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 46: HY: Defaults expected to move slightly lower in 2025
46 HY: Defaults expected to move slightly lower in 2025 – Default rate trended higher since 2023 from historic low levels due to sharply higher funding costs but stabilized during H2 24 – Due to the healthy credit fundamentals and high balance sheet liquidity, expectations for defaults in Europe are
Slide 47: At Your Service
47 AT YOUR SERVICE Our mission is to increase clients' wealth according to their individual targets. CONFIDENTIAL
Slide 48: At your service
48 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 49: Important information
49 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 50: Disclaimer statement
50 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 51: Evli contact and social media
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