Evli Green Corporate Bond Fund

Genuinely Green Corporate Bonds from a broad investment universe. Offers the same credit risk as traditional bonds while supporting the transition to a more sustainable economy.

The fund enables investors to invest in the Green Corporate Bond market without typical sovereign and agency exposure usually seen in Green Bond funds.

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Better yield than EUR IG with similar credit risk

  • Green Bonds have historically returned more than the wide IG index (1, 2 and 3 year periods)
  • YTM almost 1% vs EUR IG Green and EUR IG at around 0.5%
  • Average credit quality always at least BBB-, current BBB+.

YTM: Yield To Maturity

Investment Grade (IG) bonds typically have a lower risk and a higher credit rating (AAA-BBB), High Yield (HY) bonds typically a higher risk and a lower credit rating (BB-D). AAA is highest on the rating scale used by major rating agencies and D lowest.

As at September 30, 2020

Active ESG integration

  • Diligent analysis of the issuer’s sustainability profile against environmental criteria to avoid greenwashing
  • Excludes fossil fuel producers (mining and extraction), controversial lending, manufacturers of controversial weapons, tobacco, alcohol, gambling, weapons and adult entertainment
  • Quarterly ESG report with detailed data on responsibility, carbon footprint, ESG ratings and violations.

Broader green investment universe

  • The Euro Corporate Green Bond benchmark* contains only IG bonds, evaluated green by MSCI
  • In addition to Green IG Bonds, fund also invests in green unrated (max 20%) and HY bonds. The fund is actively managed and picks bonds with better risk/reward potential
  • A broader universe enables to select the best green opportunities, regardless of the benchmark constituents.

*Bloomberg Barclays MSCI Euro Corporate Green Bond 5% Capped Index

Genuinely Green Corporate Bonds

  • Invests only in corporate bonds that adhere to the International Capital Markets Association’s (ICMA) Green Bond Principles or are issued by pureplay firms
  • Separate fund impact report to monitor the use of proceeds, providing transparency as well as quantifiable level of impact on portfolio level
  • Dedicated Responsible Investment analyst responsible for Green Bond framework and ESG analysis.

Each bond is carefully analysed from credit and sustainability perspective to identify bonds that have high credit quality and make positive contribution to environment.

- Juhamatti Pukka, Head of Fixed Income

Green Bond Investment Universe

 

The fund responds to the growing investor demand for a larger allocation to green bonds, but also to the need to act against the unsustainable use of resources and global warming. In addition to our long track record of expertise in corporate bonds, the fund also builds on Evli's solid ESG know-how. 

- Noora Lakkonen, Responsible Investment Analyst

When is ‘green’ really green?

Green corporate bonds are growing in popularity, but it can be tricky to figure out just how green these investments really are. How do you know when ‘green’ is really green and not just a catchy name of the bond?

Read more

Evli’s fixed income investment strategy is a result of 20 years of consistent long-term work and has proven successful both in bull and bear market.

Team

The Evli Green Corporate Bond fund is managed by Juhamatti Pukka, Head of Fixed Income at Evli and manager of the Evli Short Corporate Bond fund. Noora Lakkonen, Analyst at Evli’s Responsible Investment team and in charge of monitoring ESG factors for Evli’s corporate bond strategies, is responsible for the green bond analysis of the new fund.

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Juhamatti Pukka

  • Head of Fixed Income
  • M.Sc. (Econ.), Helsinki School of
    economics.
  • Over 10 years experience in capital
    markets. Specializing in corporate bond portfolio management.
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Noora Lakkonen

  • Responsible Investment Analyst
  • LL.M (Environmental Law), University of Helsinki; M.Sc. (Econ.), Hanken School of Economics.
  • Specializing in ESG and Green Bond analysis.
Risk factors to be considered
  • Main risk is credit risk, ie. that an individual bond issuer’s solvency may deteriorate, which could lead to price contraction or even default
  • Other risk factors are liquidity risk, derivatives risk, concentration risk and management risk
  • The investor is urged to view the Key Investor Information Document and the fund prospectus for a detailed view of the risks to which the fund is exposed.

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Fund information

 

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This material is intended as general information to the recipient. Nothing contained on this site constitutes investment advice, nor is it to be relied on, in an investment decision. The information
is product-related information only, and it is not to be regarded as an investment recommendation. Evli recommends that you read the relevant fund prospectus and brochure(s) and contact a
professional advisor in order to obtain relevant and specific personal advice, before making any investment decisions. No representation is made that the estimates, data or information herein is
complete, and the information can be subject to change without notice.

Past performance is not a guarantee for future results. Investments in funds can increase as well as decrease in value because of market fluctuations, the fund’s risk profile or costs related to
subscription, redemption, management fees etc., and the investor may lose the full amount invested.

Fund rules, Key Investor Information Document, brochures and other information material are available at www.evli.com/greenbond

Source and Copyright: Citywire. Juhamatti has been awarded the Eurostars award by Citywire for his rolling 3 year risk-adjusted performance, for the period 31/01/2016-31/01/2019.

Citywire information is proprietary and confidential to Citywire Financial Publishers Ltd (“Citywire”), may not be copied and Citywire excludes any liability arising out its use.

Morningstar Awards 2020 (c). Morningstar, Inc. All Rights Reserved. Morningstar has awarded Evli as the Best Fund House 2020 in Sweden.

From Lipper Fund Awards from Refinitiv, ©2020 Refinitiv. All rights reserved. Used under license.