Assets under management of Invalda INVL group companies rose to EUR 449 million
Invalda INVL, one of the Baltic region’s leading asset management groups, at the end of September had consolidated equity capital of EUR 48.8 million, which is 1.37% more than at the start of the year, or EUR 4.21 per share. The Invalda INVL group had a consolidated profit of EUR 1.1 million in nine months of 2016 (versus EUR 5.1 million in the same period of 2015).
“The results achieved reflect the current situation and meet our expectations. We’re working purposefully with the assets under management and the opportunities that appear in the market. Larger fluctuations in results are usually due to significant transactions or other changes which, unlike in 2015, we haven’t had this year,” said Darius Šulnis, the president of Invalda INVL.
Asset management business
Invalda INVL’s asset management companies INVL Asset Management in Lithuanian and Latvia, the wealth-management financial brokerage firm INVL Finasta, and the administrative company INVL Farmland Management had assets under management of EUR 449 million at the end of September this year, or 36.8% more than at the end of 2015 (EUR 328.2 million). The number of clients increased by 4.3% during nine months of this year to 173,800.
Due to investments in expansion, the asset management business had a nine-month pre-tax loss of EUR 183 thousand. Revenue from this business increased by 36.7% during the same period, to EUR 3.4 million.
“The period was successful for most of the clients who chose Invalda INVL group companies’ investment products. In terms of the return earned for investors, the vast majority of our pension and mutual funds are among the leaders. That’s attracting new clients and significantly boosting assets under management,” Šulnis said.
Investments
Investments in related companies
At the end of September, Invalda INVL held 32.1% of shares in the real estate investment company INVL Baltic Real Estate, which were valued at EUR 8.5 million. This investment had a gain of EUR 0.5 million in the first nine months of the year (including dividends). In March 2016, INVL Baltic Real Estate completed a 9 million-euro offering of new shares in which Invalda INVL acquired shares for EUR 6.2 million.
INVL Baltic Real Estate is currently completing the licencing process to become a closed-end investment company (UTIB).
Invalda INVL’s 15.7% stake in INVL Technology had a value of EUR 3.4 million at the end of September 2016, while the recognized loss from the change in value of the company’s shares was EUR 0.5 million. INVL Technology, a company that invests in IT businesses, in July obtained a UTIB license and its management was transferred to INVL Asset Management.
“The overall impact of investments in related companies on results for the three quarters was neutral,” Šulnis said.
Agriculture
The value of Invalda INVL’s investments in the Baltic agribusiness company Litagra, in which it has a 36.9% stake, was EUR 14 million at the end of September 2016. A decrease in the value of the stake meant a loss of EUR 0.9 million was sustained in nine months of the year.
“Litagra’s valuation was negatively influenced by results in the primary agricultural production sector, while the trading business has shown improving performance,” Šulnis said.
Banking
Invalda INVL holds a 6.79% equity stake in Šiaulių Bankas, the value of which increased by EUR 2.7 million in January-September to EUR 9.1 million. “Šiaulių Bankas’s good results also boosted the price of its shares on the exchange,” Šulnis said.
Facility management
Companies of the Inservis facility management group, which Invalda INVL controls, had a total value of EUR 3.8 million at the end of September 2016, or EUR 0.8 less than at the end of 2015. Invalda INVL was allocated dividends of EUR 0.3 million from the facility management group. “We’re actively looking for acquisitions in this business,” Šulnis said.
Other investments
At the end of September, Invalda INVL had EUR 0.7 million of investments in other publicly traded shares, and other investments and loans with a value of EUR 1.1 million. Invalda INVL’s total liabilities after nine months of 2016 were of EUR 0.9 million.
Invalda INVL AB, operating since 1991, is one of the leading asset management groups in the Baltic countries. Companies the group owns in Lithuania and Latvia manage more than 20 mutual, real estate and pension funds (2nd and 3rd pillar), alternative investments, individual portfolios, private equity and other financial instruments. The group’s companies manage over EUR 440 million of assets entrusted to them by more than 170,000 clients in Lithuania and Latvia as well as international investors. The shares of Invalda INVL have traded on the Nasdaq Baltic securities exchange since 1995.
Key information for 9 months of 2016 enclosed