Overview

Investment Objective

Taaleri Finland Value is a unique value-oriented equity fund that focuses on Finnish value companies which have low or modest valuation multiples, capable management and simple and understandable business model. The fund’s investment process is based on academic research papers which have proven that value investing outperforms the market over a long period of time. Taaleri Finland Value’s lead Portfolio Manager is Mika Heikkilä who might be the most recognized portfolio manager who has successfully managed several  value-oriented long-only equity funds since 1999. Seize the opportunity to buy cheaply and sell dearly in Finland!

Trailing Returns

Year to Date
-8.81%
3 Years Annualised
-0.60%
5 Years Annualised
9.55%
10 Years Annualised
5.94%

Fund Benchmark

OMX Helsinki CAP (tuotto) (100%)
ISIN FI4000013172
Inception Date 5/26/10
Net Asset Value (NAV) 199.43 EUR (9/25/20)
Total Net Assets (mil) 36.58 EUR (9/25/20)
Risk Level 4/7

1 = Lower risk, lower expected return
7 = Higher risk, higher expected return
Morningstar
Management Fee 1.20%

Fees and Expenses

Growth of 100 (EUR)

9/25/20

Portfolio Manager Review

In March the corona virus started to really affect stock markets. Volatility surged amid increasing numbers of corona deaths and even the most prestigious stock indexes had daily movements of more than 10%. All eyes were on corona and that created a spiral of panic. Investors and other people are closely monitoring countries like Italy, Spain and towards the end of the month also USA. Fortunately, central banks and governments have been quite active and have created and initiated massive financial aid packages here and there, including ECB and the FED. It’s also noteworthy that China is already recovering which creates a significant tailwind as Europe and the US are struggling. In Finland, we have seen a tsunami of profit warnings, partly thanks to our Financial Supervisory Authority which has given instructions how to guide during these extreme times. Many companies have also postponed their AGMs and dividends due to coronavirus.

Many Finnish stocks have plummeted by 30-60% during the corona crash so far. Some companies have survived without bigger stock price movements. We have had a nice pile of cash in the fund which has helped us to utilize the dip a certain extent. Also, many portfolio holdings of the fund have issued profit warnings, not surprisingly. We sold out all our Finnair and Kojamo shares and also decreased weight of restaurant company Noho. The money from those sales we spent for instance Fortum, StoraEnso, UPM, Bittium, Telia, Konecranes and also TietoEvry and Wärtsilä totally new companies to our portfolio. There were really different views from companies as we speak about corona virus. B-to-B companies seems to be better survivors than consumer related companies. Our fund price/bookvalue is now 1,0 and Finnish market median is 1,6. We have contacted a lot of our companies and if necessary we are ready to make really fast moves.  

Performance

Trailing Returns

Year to Date
-8.81%
3 Years Annualised
-0.60%
5 Years Annualised
9.55%
10 Years Annualised
5.94%

Risk Level 4/7

1 = Lower risk, lower expected return
7 = Higher risk, higher expected return

Return/Risk Analysis

Morningstar
Risk Measurement 1 Year 3 Years 5 Years
Standard Deviation 27.03 18.80 17.34
Sharpe Ratio 0.07 -0.03 0.56

Portfolio

Asset Allocation %

Net
Stocks 96.18
Bonds 0.00
Money Market 3.82
Other 0.00

Country Distribution %

8/31/20

Fund
Finland 94.06
Sweden 5.94

Top 10 Holdings

53.46% of total assets in the fund

  1. Fortum Oyj
    Finland
    7.94%
  2. Stora Enso Oyj R
    Finland
    7.80%
  3. Nordea Bank Oyj
    Finland
    7.12%
  4. YIT Oyj
    Finland
    6.80%
  5. Sampo Oyj A
    Finland
    4.89%
  6. Citycon Oyj
    Finland
    4.43%
  7. Nokia Oyj
    Finland
    4.30%
  8. Scanfil Oyj
    Finland
    3.57%
  9. TERVEYSTALO OYJ
    Finland
    3.34%
  10. Metso Outotec Oyj
    Finland
    3.28%

Fees and Expenses

Management Fee 1.20%
Performance Fee 20.00%

20 % of the yield exceeding the comparison index, calculated daily over 12 months.
Initial Charge 1.00%
Redemption Charge 1.00%

Purchase Details

Initial Investment 100.00
Additional Investment 100.00

Portfolio Managers

Mika Heikkilä

Mika Heikkilä

Head of Equities
Portfolio Management
Helsinki
+358 50 554 3866
Olli Viitikko

Olli Viitikko

Portfolio Manager
Portfolio Management
Helsinki
+358 40 450 3741

Filings

PRIIP Avaintietoesite Arvo Markka
Säännöt Arvo Markka
Taaleri Rahastoesite