Evli Plc Class B · OMXHEX:EVLI
Evli Plc Class B — Debt Investor Presentation (February 2025)
56 slides from Evli Plc Class B's debt investor presentation, Feb 28, 2025
Slide 1: Evli Corporate Bond B
EVLI CORPORATE BOND B 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: FI0008801097 BLO
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 corporate bonds?
9 WHY INVEST IN EUROPEAN CORPORATE BONDS? Evli Corporate Bond CONFIDENTIAL
Slide 10: Evli Corporate Bond Fund
10 Evli Corporate Bond Fund Evli Corporate Bond European investment grade and high Invests into yield crossover bonds Active bottom-up selection in – Invests mainly in European Investment Grade Key differentiators European crossover segment, and High Yield bonds. Will also invest in non- outperformi
Slide 11: Unique long term track record
11 Unique long term track record Institutional share against IG-market *) ▪ Fund has performed excellent since launch ▪ Same PM since launch (co-PM 2013-2024) ▪ Excellent risk/return profile – 5 stars from Morningstar (Institutional-series, 03/2024) ▪ Adding safest High Yield to the portfolio increa
Slide 12: Investment philosophy and process
12 INVESTMENT PHILOSOPHY AND PROCESS Evli Corporate Bond CONFIDENTIAL
Slide 13: Investment Philosophy and Strategy
13 Investment Philosophy and Strategy - Creditworthiness is the most important factor in selecting investment targets DISCIPLINED - We assess the TRUE credit quality, NOT relying on official rating - The coupon is a central part of the return - We invest in issuers that we like, regardless of their
Slide 14: Investment Process
14 Investment Process SCREENING COMPANY ANALYSIS PORTFOLIO >1000 name ~250 names ~100 names universe Investment universe: Company analysis: Overview and diversity: – Euro-denominated IG bonds (at least EUR – Financial Statement Analysis Diverse portfolio with 100-150 companies 300 million) – Industr
Slide 15: Portfolio Construction
15 Portfolio Construction – Aim is to build a well performing portfolio where the risk are contained – Focus on credit quality; not duration Investment Grade bonds (~ 50-100%) High Yield bonds (0 - ~40%) ▪ The most sensitive to interest rates ▪ Credit quality most important ▪ Brings stability in vol
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 Corporate Bond
19 Evli Fixed Income Team: Evli Corporate Bond Mikael Lundström CHIEF INVESTMENT OFFICER At Evli since 1996. Specialised in corporate bond and fixed income portfolio management. Mikael has invested in the European High Yield market since 1999 and has been the portfolio manager of Evli Corporate Bond
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 Corporate Bond Fund in a Nutshell
21 Evli Corporate Bond Fund in a Nutshell Type of Fund European Corporate Bond fund (UCITS) Benchmark ICE BofA Euro Corporate Index Fund Units Both distribution (A) and growth units (B), Institutional share class available (IB) B units EUR: EVLCOBB FH / LP60080971/ FI0008801097 (no dividend) Bloombe
Slide 22: Considerations and Risk Factors
22 Considerations and Risk Factors The fund’s investment activities aim to achieve a higher long-term return on assets than the benchmark. The fund’s return expectation and risk are higher than for funds that invest solely in government bonds. The average remaining exercise period (duration) of the
Slide 23: Track record and portfolio composition
23 TRACK RECORD AND PORTFOLIO COMPOSITION Evli 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 Euro Corporate Index (ER00). ICE BofA Euro Corporate Index (ER00) has been the official benchmark for the fund since 1.3.2024. Until 1.3.2024, the official benchmark for the fund has been ICE BofA BB-B Eur
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 Euro Corporate Index (ER00). ICE BofA Euro Corporate Index (ER00) has been the official benchmark for the fund since 1.3.2024. Until 1.3.2024, the official benchmark for the fund has been ICE BofA BB-B E
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 Euro Corporate Index (ER00). ICE BofA Euro Corporate Index (ER00) has been the official benchmark for the fund since 1.3.2024. Until 1.3.2024, th
Slide 27: Evli Corporate Bond statistics
27 Evli Corporate Bond statistics OAS (vs Govt) Statistics 28.02.2025 Fund Index Yield (YTM) 3.84% 3.15% Yield to Worst (YTW) 3.69% 3.06% Modified duration 4.02 4.47 Rating Baa2/BBB A3/A- OAS 157 90 Nr of issuers (31.12.2024) 121 > 1000 Source: Bloomberg PORT and Evli. CONFIDENTIAL
Slide 28: Portfolio structure 28.02.2025
28 Portfolio structure 28.02.2025 Evli Corporate Bond B CONFIDENTIAL
Slide 29: Top holdings 28.02.2025
29 Top holdings 28.02.2025 10 LARGEST INVESTMENTS 10 LARGEST ISSUERS % % Statnett Sf 26.2.2036 3.375% Callable Fixed 1.77% ING Groep NV 2.64% Ing Groep Nv 26.5.2031 2.125% Callable Variable 1.77% BNP Paribas SA 2.14% Societe Generale 30.6.2031 1.125% Callable Variable 1.72% Societe Generale SA 2.07%
Slide 30: Yield curves 31.1.2025
30 Yield curves 31.1.2025 Euro swap curve (10 – 2 yrs) Yield curves Source: Bloomberg, Evli CONFIDENTIAL
Slide 31: Portfolio positioning March 2025
31 Portfolio positioning March 2025 Portfolio weights (%) – We prefer mid-curve (3-7 yrs) IG-bonds – Curve is flat, and these should benefit when ECB cuts rates – Cheap banking bonds, increase in senior bonds – Lower Tier2 weight stable at 7% – AT1 weight under 2% – High Yield weight slightly increa
Slide 32: Attribution analysis 2024
32 Attribution analysis 2024 Pls note: Here against the new benchmark (ER00) for the whole period – Portfolio outperformed the index by 186 bps (gross-of-fees). – Selection performed well across all markets, with IG portfolio outperforming by 162 bps (6.34% vs 4.72%). Also allocation to high yield p
Slide 33: Peer analysis – 3 years
33 Peer analysis – 3 years Past returns are no guarantee of future returns. Cumulative returns Evli Corporate Bond B The Upper Quartile Median The Lower Quartile 0% -2% -4% -6% -8% -10% -12% -14% -16% -18% 2022-01 2022-07 2023-01 2023-07 2024-01 2024-07 Return (Cumulative) Beta Bear Beta Bull Beta D
Slide 34: ESG Metrics Q4 2024
EVLI CORPORATE BOND 34 ESG Metrics Q4 2024 Responsibility score AA Carbon footprint 72 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 99,9999
Slide 35: Ambition
35 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 36: Evli is a forerunner in Responsible Investing
36 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 37: Four pillars of responsible investing at Evli
37 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 38: Monitoring, engagement and active ownership
38 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 39: Exclusions in practice in all Evli funds
39 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 40: Evli's climate change principles
40 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 41: Evli's climate targets
41 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 42: What opportunities does the market currently offer?
42 WHAT OPPORTUNITIES DOES THE MARKET CURRENTLY OFFER? Evli Corporate Bond - Overview of the market CONFIDENTIAL
Slide 43: Evli's funds vs. the market
43 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 44: Market outlook
44 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 45: Benchmark total return % 2024
45 Benchmark total return % 2024 Historical returns are no guarantee of future returns. Source: ICE BofAML, Evli CONFIDENTIAL
Slide 46: Benchmark total return % YTD 2025
46 Benchmark total return % YTD 2025 Historical returns are no guarantee of future returns. Source: ICE BofAML, Evli CONFIDENTIAL
Slide 47: Spreads: BBB-rated IG in Europe
47 Spreads: BBB-rated IG in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 48: Spreads: B-rated HY in Europe
48 Spreads: B-rated HY in Europe (03/03/2025) Last 5 years Since 1999 Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 49: Credit metrics (IG + HY)
49 Credit metrics (IG + HY) Net leverage (net debt to EBITDA) EBITDA margin Source: ICE BofAML, EVLI CONFIDENTIAL
Slide 50: HY: Defaults expected to move slightly lower in 2025
50 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 51: The European Credit Market
51 The European Credit Market Euro Investment Grade* European High Yield** Yield (%) 3.27 6.03 Modified Duration 4.43 3.22 Average Rating A- BB- Average price (%) 96.84 97.76 Spread to Government (bps) 101 317 Number of bonds 4347 714 Par value market size (bln €) 3134 389 *) ICE BofAML Euro Corpora
Slide 52: At your service
52 AT YOUR SERVICE Our mission is to increase clients' wealth according to their individual targets. CONFIDENTIAL
Slide 53: At your service
53 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 54: Important information
54 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 55: Disclaimer statement
55 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 56: LinkedIn – Evli Funds Facebook – Evli Funds Message Service X – Evli Funds
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