Evli Alpha Bond

Investment Policy

Mutual Fund Evli Alpha Bond is an enhanced long-term fixed income fund that invests its assets in various fixed income instruments such as government bonds, emerging markets debt, corporate bonds, money market instruments, units of fixed income funds, and structured financial instruments. The fund may also invest its assets in derivatives contracts and the units of other mutual funds.

Investment Objective

The aim is to earn a return over a 12-month period that exceeds the return of either the 3-month Euribor rate or a combined bond index (the index consists of Citigroup EMU Government Bond Index 65% and Lehman Euro-Aggregate Corporate Index 35%), whichever is higher.

The average remaining exercise period (duration) of the Fund's fixed income investments is 3 months - 10 years. The fund seeks an absolute return with a moderate risk level by diversifying its assets broadly in non-correlating fixed income instruments and, by the active reallocation of assets between different fixed income markets and instruments. The average credit rating of fixed income instruments is at least BBB-, which is the lower limit for low-risk companies. Some of the fund's investments may carry a currency risk.

We recommend the fund to investors

• who would like fixed income assets to be managed in a fund format more actively and in a more widely diversified manner than in traditional fixed income funds
• who would like an absolute return with a moderate risk level
• who have a medium-term investment horizon (1-2 years)