Evli Fund Management Company, based in Finland, has announced that its Alfa bond fund is now called Evli Nordic Corporate Bond, reflecting the fact the the portfolio focuses on Nordic rated investment grade and high yield bonds and unrated corporate bonds.
Estimated at a size of some €150bn, the Nordic corporate bond market is attracting a growing number of investors, although many will only consider rated securities, despite evidence suggesting that bonds from unrated companies may yield more than those with similar credit risk profiles. As a region, the market is dominated by unrated securities, representing over 70% of Nordic issuance, according to figures from Evli.
The portfolio managed by Evli consists solely of corporate bonds from Finland, Sweden, Norway and Denmark. The fund’s B (EUR) share class has averaged returns of 3.27% annually for the past five years, while it is described as 2/7 on the risk scale according to the KID.
Kim Pessala, managing director of Evli Fund Management Company, said: “The Nordic bond market offers a vast variety of sectors, local mix and structure. With the Nordic Corporate Bond fund, we can focus on the potential that both the rated and unrated Nordic companies offer. In addition, Evli is in a prime position to offer investors diversification and additional return potential to their bond portfolio. We have close to 20 years of investment experience in Nordic corporate bonds and an expert team of portfolio managers analyzing and buying Nordic credit.”
Evli recently launched www.evli.com/fundshub, a resource that includes interviews, articles and blogs about the Nordic bond market and other investment categories. It includes access to an infographic outlining facets of the region’s fixed income markets: Nordic_bond_infographic.