Evli Target Return

Investment Policy

Mutual Fund Evli Target Return is an enhanced money market fund which invests its assets in diverse fixed income products such as Treasury Bills and Government Bonds, Municipal Bonds and Certificates, Certificates of Deposit, Investment Grade Bonds and Commercial Papers, High Yield Bonds, Convertible Bonds and Emerging Market Debt. Assets denominated in foreign currency are fully hedged thus ensuring that the Fund has no foreign exchange exposure.

Investment Objective

The aim is to achieve a return which substantially exceeds the three-month Euribor return 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 Fund’s overall risk moderate. Portfolio management employs a total return concept with particular emphasis on risk management and capital protection aiming at a steady accumulation of the Fund’s net asset value. A particular characteristic of the Fund is to achieve a high risk adjusted return by a large diversification among none or low correlating fixed income assets and by an active reallocation of assets among these asset classes.

We recommend the fund to investors

• who wish to get a steady capital appreciation with low volatility
• who wish to get a better return than the traditional money market funds or bank deposits can offer
• who wish to get an actively managed and well diversified fixed income portfolio in a single product
• who wish to invest their assets without high credit risk
• who do not wish to tie-up their capital for a defined time period
• who have a short-term investment horizon (at least 6 months)