As there are no exchange-traded funds or indices, the Nordic corporate bond market can only be accessed via direct investments. One way of access is an investment fund.
Evli Nordic Corporate Bond is a fund that offers a great variety of sectors, local mix and structure.
Evli’s current investment in Nordic corporate bonds is EUR 3 bn. We have close to 20 years of investment experience in in the area and an expert team of five portfolio managers analysing and buying Nordic credit.
Strong fundamentals and attractive valuation
- Low volatility: strong regional political institutions and low political risk
- Comparable quality: with similar or lower net debt/EBITDA
- Better value: with a higher YTM and a wider spread
Access only via direct investments
- No index
- No exchange traded funds
Focus on both Nordic rated IG and HY bonds and unrated corporate bonds
Regional political institutions are strong and the political risks are low. Hence, Nordic corporate bonds have low volatility. Also, smaller and unrated Nordic issuers typically yield more with similar credit risk profile. The diverse sectors and diverse currencies - issued in five currencies, all hedged to EUR - offer more variety.
Top 10 holdings 31.3.2019
|Aker Bp 2.7.2020 FRN||2.60|
|Mercada Oy 24.10.2022 1.875%||2.52|
|Konecranes 09.06.2022 1.75%||2.17|
|Neste Oyj 07.06.2024 1.5% Call||2.06|
|Aker Asa 31.01.2023 FRN Call||1.87|
|Dvs 20.09.2024 1.75% Call||1.82|
|Kemira 30.05.2024 1.75% Call||1.75|
|Huhtamäki 04.10.2024 1.625% Call||1.65|
|Fortum 27.02.2023 0.875% Call||1.49|
|Marine Harvest 12.06.2023 FRN Call||1.43|
Performance 31.3.2016-31.3.2019, net of fees
Evli Fund Management Company Ltd
A Nordic fund management boutique established in 1989 with a prime focus is on institutional investors. 80% of the mutual fund AUM (EUR 8.1 bn 31.03.2019) comes from institutional investors.
- Evli’s funds are actively managed with a long-term perspective. On average, senior portfolio managers have worked at Evli for 10 years and have 20 years industry experience.
- The investment process is systematic and characterized by both quantitative methods and qualitative assessments. Rigorous discipline ensures repeatability of the investment process.
Evli’s corporate bond knowledge originates back to the same time as the evolution of the European bond market 1999. The investment philosophy is based on capital protection and creditworthiness. Evli focuses on true credit quality, not official rating, free cash flow, leverage and debt coverage. The range covers European corporate bonds in all maturity and creditworthiness classes, including emerging market corporate bonds in western currencies. Evli is one of Europe’s leading fixed income asset managers.