Fund Overview
To start with, this is not your typical emerging markets fund. Evli Emerging Frontier B is really about going where capital has not fully arrived yet, where markets are still messy, misunderstood and, because of that, mispriced.
ISIN: FI4000066915
Structure: UCITS (Finland-domiciled investment fund)
Investment Manager: Evli Fund Management Company Ltd
Depositary: Skandinaviska Enskilda Banken AB (Helsinki Branch)
Asset Class: Emerging & Frontier Equities
Investment Style: Active, bottom-up (consumer-driven growth + value bias)
Currency: EUR
Fund Inception: 08/10/2013
That idea shows up clearly in the numbers. Since launch, the fund has compounded at roughly 12 % annually, reaching over 300 percent total return, which is quite remarkable considering the type of markets it operates in.ππ
Source: Evli Emerging Frontier Fund β Monthly Factsheet (February 2026)
What really matters is this fund is that it consistently finds returns in places where the market has not fully adjusted yet.
Investment Philosophy
Regarding the philosophy and how it achieved these returns, we have to say that the fund is built on a straightforward idea.
Less efficient markets offer more opportunities.
In practice, this translates into a very specific positioning. The fund consistently targets early-stage growth stories, particularly in regions where consumption is accelerating and business quality is improving faster than what the market is pricing in.
The historical performance is not linear or smooth, Instead, it shows bursts of strong outperformance followed by periods of consolidation or drawdowns.
πThe strategy captures re-ratings when inefficiencies close, rather than delivering steady beta-like returns. ππ
Source: Evli Emerging Frontier Fund β Monthly Factsheet (February 2026)
At the same time, the risk profile tells a complementary story. Sitting around mid-range on the scale, it confirms that this is not an extreme high-risk bet, but neither is it designed for stability. βοΈπ
Source: Evli Emerging Frontier Fund β Monthly Factsheet (February 2026)
As said, inefficiencies in these markets do not disappear quickly, they require time, capital flows and often structural changes in local economies.
That is why patience is not just a nice-to-have, it is part of the edge.
the longer the horizon, the higher the probability that mispricing converges to fundamentals. β³π§
Portfolio Analysis
Looking at the portfolio the fund leans towards consumer and financial sectors, which are closely tied to how economies develop and mature over time.π°π§©
As incomes rise, spending increases and financial systems expand, and it is where the transition is where many of these companies operate.
Source: Evli Emerging Frontier Fund β Monthly Factsheet (February 2026)
Geographically, the fund avoids the most crowded parts of emerging markets and instead goes deeper into regions like Pakistan, Vietnam or parts of the Middle East, where fewer investors are active.
This is where the edge lies: it is not about finding growth, it is about finding it before it becomes consensus. ππ±
Source: Morningstar
On the other hand, the preference for small and mid cap companies reinforces the philosophy; these businesses tend to be less covered and more sensitive to local dynamics, which increases the chance of mispricing.
Source: Morningstar
As a conclusion, we can see that the fund has a strong alpha of 9.69 pointing to real value creation through stock selection, while a beta of 0.62 shows that returns are not simply following the broader market.
In simple terms this fund does not rely on market direction, it creates its own path. ππ
Fund Managers
Historically, portfolio management was delegated to Terra Nova Capital; as of 2026, it is now led by Antti Sivonen and Mathias Althoff. Consequently, the fundβs historical performance reflects a different investment team.
However, Sivonen and Althoff bring experience in emerging and frontier markets, strengthening research and portfolio implementation. Going forward, performance will reflect the new investment team, which will need to be assessed independently.ππ§
Why to Invest
What differentiates this fund is not simply its exposure to emerging or frontier markets, but how it positions itself within them.
As mentioned, it consistently moves into areas where capital is less present and pricing remains less efficient, which fundamentally changes the return profile;
Alpha driven by company-specific developments
β less dependent on global flows, more on local execution and fundamentalsAccess to earlier stages of growth
β positions ahead of consensus, where re-rating potential is higher
Finally, to better understand the mindset behind the strategy, it is worth looking at how the lead portfolio manager approaches investing more broadly.
In this short interview, Antti Sivonen discusses the recent comeback of value investing and, more importantly, why markets are often driven by narratives in the short term but ultimately anchored in fundamentals, cash flow and valuation discipline.πͺπ
While the video does not focus specifically on the fund, it provides a clear window into the thinking that shapes it.
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