Evli and OP are leading the pack of Finland-focused equity funds, even as their portfolios closely resemble those of their competitors, Kauppalehti reported today.
Evli Suomi Select and OP Suomi delivered over 25 percent returns over the past year, placing them at the top of the rankings, based on the March report by Suomen Sijoitustutkimus Oy. Close behind are funds from Säästöpankki and POP, while players like Eq Suomi lag, despite holding many of the same names.
The largest holdings of Finland-focused equity funds are largely the same large companies, so the differences in returns mainly arise from how portfolio managers weight individual stocks, the report revealed.
Wärtsilä offers a clear example. It is a top holding in both Evli and OP funds and has rallied strongly, helping explain their lead. Nokia and Nordea, also widely held, have supported returns across most portfolios. The real divergence begins just below these core holdings, where managers take different views on position sizes and secondary bets.
Short-term performance has been strong across the board. Nearly all funds delivered returns above 20 percent over the past year, supported by a broader recovery in Helsinki equities. However, the longer-term picture is more subdued. Over three to five years, annualized returns are significantly lower, and none of the funds have consistently beaten the OMX Helsinki Cap Index.
Fees add another layer. Annual costs range from around 1.4 percent at Danske, the lowest in the group, to roughly 1.9 percent at Säästöpankki, with POP, Aktia, and Evli not far behind at the higher end. The gap can quietly erode returns over time in a market where outperformance is already scarce. When portfolios are this similar, lower costs and steady execution tend to separate the winners from the rest.
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