Evli Smart Beta

Investment Policy

The Evli Smart Beta mutual fund is a balanced tactical allocation fund that invests its assets globally in equities, fixed income instruments and derivatives contracts, depending on the market situation at the time. The fund makes its investment decisions completely objectively based on a quantitative model. The investments are focused on cost-efficient index products. The allocation decisions are systematic, and the fund reacts rapidly to changes in market trends.

Return Target

The fund seeks a high return-risk ratio with a volatility of 7 percent. The fund’s long-term return target is to exceed the return of the benchmark index, the Merrill Lynch 3-month LIBOR index, by at least 5 percent per annum. The aim is to maintain the fund’s volatility stable at 7 percent by constantly monitoring the development of volatilities and correlations on different markets and by diversifying the investments globally to several targets. The Fund’s equity weighting may vary between 0-100 percent, depending on the market situation.

We recommend the fund to investors

• who seek high returns in all market conditions at a pre-defined risk level
• who aim at a high return-risk ratio through timing of equity-market and fixed-income-market risks
• who want to diversify risk globally with a single investment 
• who have a long investment horizon (at least 3 years)