Invalda INVL’s equity at the end of 2021 was EUR 121.2 million, or EUR 10.32 per share, and increased 45% compared to the end of 2020.
Invalda INVL’s net profit last year was EUR 37.5 million, which is 7 times more than in 2020 when it was EUR 5.3 million.
“As we look further in 2022, we face a new common concern for the peace and long-term order that allows people to live, work and create opportunities to prosper both safely and freely in Central and Eastern Europe. This is clearly of paramount importance. While we fully support Ukraine, we are aware that it is very challenging to predict what the coming years will bring and when the situation may stabilise. There are many questions that remain unanswered. How will the ongoing situation affect individual countries and sectors of their economies, how will commodities prices and logistical challenges be addressed and what GDP growth and inflation rates will result. The start of 2022 has been difficult for most markets. This may well potentially negatively impact the value of some of our investments. However, we continue to monitor the changing landscape on a daily basis, adapting and responding in real time. We do our job by managing the investments entrusted to us and by making the key decisions that focus on both the protection of our clients’ assets and new opportunities that always arise ,” Darius Šulnis, the president of Invalda INVL, said.
Asset management business
INVL’s asset management business overall continues to grow successfully. 2021 was a record-breaking year for those investing with Invalda INVL group. Our investors earned a total of EUR 210.5 million
The assets under management of the group’s companies reached a record EUR 1.6 billion at the end of 2021 and increased 29% during the year. The number of customers who have entrusted their assets to the Invalda INVL group increased to 260,000, which is 5.5% more than a year earlier.
To better meet the needs of our clients and to achieve growth and synergies, Invalda INVL has also made the decision to enter the life insurance market. To that end, we signed a deal to acquire life insurance business in the Baltics from Mandatum Life and started the licensing process for INVL Life, which was completed in early 2022.Also after the end of the year, INVL Life’s share capital was significantly increased to EUR 48 million, which is the largest share capital of any life insurance company registered in the Baltic countries.
In 2021, we successfully closed the first forestry fund, providing investors with an impressive average annual return (IRR) of 27%. We have already raised more than EUR 51 million in the INVL Sustainable Timberland and Farmland Fund II. A significant percentage of these funds has already been successfully invested in both Lithuania and Latvia. , INVL Renewable Energy Fund I commenced its operations during the year 2021, raising EUR 34.6 million and investing in renewable energy projects located in the European Union, with a current focus on the Polish market. The majority of companies in the current portfolio of our leading Baltics private equity fund, INVL Baltic Sea Growth Fund performed very well, growing and developing rapidly.
The revenues of the asset management business reached EUR 15.8 million and Invalda INVL earned EUR 6.1 million from this business.
Investments
The main factor contributing to Invalda INVL’s results, as is often the case, was the change in the value of the investments and income from the portfolio, from which our earnings in 2021 were EUR 33.5 million and the value of its proprietary portfolio at year-end, accounted for at market value, was EUR 97 million, including EUR 42.3 million of investments by Invalda INVL in INVL products together with clients of the group.
According to Darius Šulnis, due to the excellent annual results achieved, the value of investments in the INVL Baltic Sea Growth Fund and other INVL products increased significantly.
Litagra performed well and made several acquisitions that should significantly grow the company over the coming years – a period when food production will be especially important and necessary for society. Šiaulių Bankas delivered solid results and growth, and Invalda INVL signed an agreement with the European Bank for Reconstruction and Development (EBRD) on the acquisition of a stake in Šiaulių Bankas.
Moldova-Agroindbank (maib), Moldova’s largest commercial bank, performed well and developed rapidly, aiming to be an even better bank for its customers, provide modern services, and remain the country’s leading bank, valued by both domestic and international investors.
The published audited results of the company will be approved at the annual general meeting of shareholders on 30 April this year. Shareholders will also be asked at the meeting to approve the election of the Board of Invalda INVL to include Alvydas Banys, Indrė Mišeikytė and the independent board member Tomas Bubinas.
Invalda INVL is a leading asset management group which is open and growing, invests with clients, and creates well-being for people through its work. The group’s companies, which operate in Lithuania and Latvia, serve over 260,000 individual and institutional clients from the region and abroad. Those clients have entrusted the Invalda INVL group with EUR 1.6 billion of assets for management in a variety of asset classes, including pension and mutual funds, individual portfolios, and private equity and other alternative investments.
The shares of Invalda INVL have traded on the Nasdaq Vilnius stock exchange since 1995.