After celebrating the 20th anniversary of the Evli Corporate Bond fund in 2019, it is now the Evli European High Yield fund’s turn to celebrate its 20th anniversary. Mikael Lundström, Chief Investment Officer at Evli Fund Management Company Ltd, has managed this strategy, which was launched in March 2001, since its inception.
Evli European High Yield, a rigorous strategy
The Evli European High Yield fund is a long-term corporate bond fund that invests mainly in euro-denominated bonds issued by European companies and banks. The investments are focused on bonds with lower credit ratings (high yield). The investments' credit rating is, on average, BB+ or lower. Moreover, a maximum of 20 percent of the fund's assets may be invested in securities with no official credit rating.
“The High Yield market has changed significantly over the last twenty years, but we have managed to keep our investment process focused on companies with strong cash flow. This approach has proven to be a benefit over the years, as the bonds of these companies tend to outperform. In addition, our knowledge of the Nordic markets allows us to position ourselves in unrated Nordic corporate bonds, which differentiates us from other European strategies in the High Yield segment," says Mikael Lundström.
ESG in High Yield, an avenue for long-term outperformance
ESG factors are also integrated into the Evli European High Yield fund’s investment decisions, and the strategy follows Evli's general exclusion practices. The fund’s investments are monitored for violations of UN Global Compact norms and Evli’s Climate Change Principles, and the fund engages with the companies it invests in or excludes them if violations are detected. The fund's ESG indicators are reported in a fund-specific ESG report, which is updated four times a year and accessible to all on Evli's website.
"Our funds are actively managed with a long-term ESG perspective. We strongly believe that companies need to be strong in ESG in order to outperform in the present world, and we have therefore integrated that into the credit selection process," concludes Mikael Lundström.
For more information, please contact:
Mikael Lundström, Chief Investment Officer, Portfolio Manager, Evli Fund Management Company Ltd, tel. +358 9 4766 9321, mikael.lundstrom@evli.com
