Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Investor Presentation (February 2025)
50 slides from Evli Plc Class B's investor presentation, Feb 28, 2025
Slide 1: Evli Short Corporate Bond IB
EVLI SHORT CORPORATE BOND 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: FI4000233
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 short corporate bonds?
9 WHY INVEST IN EUROPEAN SHORT CORPORATE BONDS? Evli Short Corporate Bond CONFIDENTIAL
Slide 10: Evli Short Corporate Bond Fund
10 Evli Short Corporate Bond Fund Short maturity European corporate bond fund - Offers access to stable Nordic corporate bond market in addition to the European market - Employs conservative risk controls Fund aims to achieve high risk-adjusted return Invests without index and rating limitations Qua
Slide 11: Evli Short Corporate Bond statistics
11 Evli Short Corporate Bond statistics Historical returns are no guarantee of future returns. Fund statistics 28.02.2025 Yield 3.90% Yield to Worst 3.80% Modified Duration 2.12 Spread duration 2.35 Average rating BBB- ESG rating A OAS 166 bps Number of issuers* 111 Green bonds %* 20.93% Size of fun
Slide 12: Investment philosophy and process
12 INVESTMENT PHILOSOPHY AND PROCESS Evli Short Corporate Bond CONFIDENTIAL
Slide 13: Fund Invests in Stable and Better-Quality Bonds
13 Fund Invests in Stable and Better-Quality Bonds AAA AA – Fund focus on crossover companies with stable credit fundamentals A – Official credit rating is not what matters, rather it is about true BBB creditworthiness Unrated Crossover quality bonds – Unrated bonds share similar crossover credit fu
Slide 14: Investment Philosophy and Strategy
14 Investment Philosophy and Strategy Creditworthiness is the most important - We assess the TRUE credit quality, NOT relying on official rating factor in selecting investment targets. - Corporate bonds have limited upside but, in extreme cases, can lose Credit is about capital protection. their val
Slide 15: Investment Process
15 Investment Process SCREENING COMPANY ANALYSIS PORTFOLIO Market screening Analysis of fundamentals ~90-110 and pricing companies Investment universe: Company analysis Overview and diversity: - Euro-denominated IG bonds – Financial Statement Analysis – Diverse portfolio with 90-110 - Euro-denominat
Slide 16: Company analysis
16 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 17: How ESG is taken into account in investment decisions?
17 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, lega
Slide 18: ESG examples from Evli's corporate bond funds
18 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 19: Evli Fixed Income Team: Evli Short Corporate Bond
19 Evli Fixed Income Team: Evli Short Corporate Bond Broad-based collaboration within the team to leverage our strong position in different credit classes Nordic Corporate High Yield Corporate Investment Grade Bonds Bonds Corporate Bonds Mikael Lundström Chief Investment Officer In the Industry sinc
Slide 20: Evli's fixed income team
20 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 21: Evli Short Corporate Bond Fund in a Nutshell
21 Evli Short Corporate Bond Fund in a Nutshell Type of Fund Short-maturity corporate bond fund (UCITS) Benchmark ICE BofA 1-3 Year Euro Corporate Index Fund Units Both distribution (A) and growth units (B), institutional share class available (IB) Bloomberg/Reuters/ISIN A units EUR: EVLEBFA FH/ LP6
Slide 22: Considerations and Risk Factors
22 Considerations and Risk Factors The aim is to achieve a return which exceeds the return of the benchmark during a 12-month investment horizon. The level of diversification in the investment portfolio is large both within every fixed income asset class and between the asset classes which keeps the
Slide 23: Track record and portfolio composition
23 TRACK RECORD AND PORTFOLIO COMPOSITION Evli Short Corporate Bond CONFIDENTIAL
Slide 24: Net of fee returns - 1 Year
24 Net of fee returns - 1 Year The presented benchmark index for the fund's return is ICE BofA 1-3 Year Euro Corporate Index (ER01). ICE BofA 1-3 Year Euro Corporate Index (ER01) has been the official benchmark for the fund since 1.3.2024. Until 1.3.2024, the official benchmark for the fund has been
Slide 25: Net of fee returns - 10 Years
25 Net of fee returns - 10 Years The presented benchmark index for the fund's return is ICE BofA 1-3 Year Euro Corporate Index (ER01). ICE BofA 1-3 Year Euro Corporate Index (ER01) has been the official benchmark for the fund since 1.3.2024. Until 1.3.2024, the official benchmark for the fund has be
Slide 26: Annual returns, after fees, 28.02.2025
26 Annual returns, after fees, 28.02.2025 Past returns are no guarantee of future returns. The presented benchmark index for the fund's return is ICE BofA 1-3 Year Euro Corporate Index (ER01). ICE BofA 1-3 Year Euro Corporate Index (ER01) has been the official benchmark for the fund since 1.3.2024.
Slide 27: Portfolio structure 28.02.2025
27 Portfolio structure 28.02.2025 Evli Short Corporate Bond IB CONFIDENTIAL
Slide 28: Top holdings 28.02.2025
28 Top holdings 28.02.2025 10 LARGEST INVESTMENTS 10 LARGEST ISSUERS % % Ferrari Nv 21.5.2030 3.625% At Maturity Fixed 1.89% Air France-KLM 2.52% Finnair Plc 24.5.2029 4.75% Callable Fixed 1.69% Teollisuuden Voima Oyj 2.29% Teollisuuden Voi 9.3.2026 1.125% Callable Fixed 1.59% Ford Motor Credit Co L
Slide 29: Peer analysis – 3 years
29 Peer analysis – 3 years Past returns are no guarantee of future returns. Cumulative returns Evli Short Corporate Bond B The Upper Quartile Median The Lower Quartile 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 2022-01 2022-07 2023-01 2023-07 2024-01 2024-07 Return (Cumulative) Beta Bear Beta Bull Beta Dow
Slide 30: ESG Metrics Q4 2024
EVLI SHORT CORPORATE BOND 30 ESG Metrics Q4 2024 Responsibility score A Carbon footprint 129 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 9
Slide 31: Ambition
31 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 32: Evli is a forerunner in Responsible Investing
32 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 33: Four pillars of responsible investing at Evli
33 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 34: Monitoring, engagement and active ownership
34 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 35: Exclusions in practice in all Evli funds
35 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 36: Evli's climate change principles
36 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 37: Evli's climate targets
37 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 38: What opportunities does the market currently offer?
38 WHAT OPPORTUNITIES DOES THE MARKET CURRENTLY OFFER? Evli Short Corporate Bond - Overview of the market CONFIDENTIAL
Slide 39: Evli's funds vs. the market
39 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 40: The fund's spread is still attractively wide
40 The fund's spread is still attractively wide Historical returns are no guarantee of future returns. – Short corporate bond market is currently priced close to historical average, despite Option Adjusted Spread companies' stronger fundamentals 500 450 – Portfolio companies’ fundamentals are 400 st
Slide 41: Market outlook
41 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 42: Spreads: BBB-rated IG in Europe
42 Spreads: BBB-rated IG in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 43: Spreads: B-rated HY in Europe
43 Spreads: B-rated HY in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 44: Credit metrics (IG + HY)
44 Credit metrics (IG + HY) Net leverage (net debt to EBITDA) EBITDA margin Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 45: HY: Defaults expected to move slightly lower in 2025
45 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 46: At your service
46 AT YOUR SERVICE Our mission is to increase clients' wealth according to their individual targets. CONFIDENTIAL
Slide 47: At your service
47 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 48: Important information
48 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 49: Disclaimer statement
49 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 50: Evli Funds social media and contact
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