Invalda INVL, one of the Baltic region's leading asset management groups, at the end of 2015 had consolidated equity capital of EUR 48.4 million, or EUR 4.13 per share, representing an 8.8% increase during the year. Invalda INVL's consolidated group net profit last year was EUR 4.5 million and increased 11.5% compared with 2014.
The biggest factors in the growth of the company's profit were the Bankas Finasta sale transaction and the rise in value of the shares of INVL Technology and INVL Baltic Real Estate.
"Continuing to steadily strengthen our asset management business in Lithuania and Latvia, in 2015 we completed major reorganizations and today can offer broad investment opportunities to individual and institutional investors alike. We think that as the Baltic countries' economies enter a more mature stage, the business of asset management will grow rapidly," said Darius Sulnis, the CEO of Invalda INVL.
Asset management business
Invalda INVL's asset management companies INVL Asset Management in Lithuanian and Latvia and the administrative company INVL Farmland Management had EUR 328.2 million of assets under management at the end of 2015, or 19.2% more than at the end of 2014 (EUR 275.3 million).
"The majority of the funds we manage performed well and were among the leaders in their categories. Good asset management results and creating benefits for clients is the condition for long-term success," Sulnis said.
The revenue of Invalda INVL group companies from asset management and administration activities during 2015 was EUR 3.6 million, while reorganizations that were undertaken caused losses of EUR 0.7 million. Investments in the asset management business at the end of 2015 totalled EUR 7 million.
In 2016, INVL Group companies plan to grow in all asset management segments – both pension and mutual fund management and private equity.
After completion in October of the merger of INVL Asset Management, MP Pension Funds Baltic and INVL Fondai, it is INVL Asset Management that now operates in the market, with an asset management company of the same name also operating in Latvia. The financial brokerage firm INVL Finasta, meanwhile, provides wealth management services oriented to the individual needs of the client.
Investments
Investments in related companies
The value of Invalda INVL's investments in INVL Technology, in which it holds a 15.65% stake, was EUR 3.8 million at the end of 2015, while the recognized gain from the change in value of the company's shares was EUR 0.8 million. "We're satisfied with INVL Technology's operating results and acquisitions that create value for shareholders," Sulnis said. This company which invests in IT businesses is currently seeking the status of a closed-end investment company. Once that status is obtained, management of the company will be transferred to INVL Asset Management.
Invalda INVL's equity and debt investments in INVL Baltic Real Estate, of which it owned 12.7% at year-end, totalled EUR 8.8 million at the end of 2015. During the year EUR 0.6 million was earned on this investment. In March 2016, INVL Baltic Real Estate, a real estate investment company, completed a EUR 9 million offering of new shares in which Invalda INVL acquired shares for EUR 6.2 million and will increase its stake in the company to 32.1%.
Agriculture
The value of Invalda INVL's investments in the Baltic agribusiness company Litagra, in which it has a 36.9% stake, was EUR 14.9 million at the end of 2015 – approximately the same as at the start of the year. "2015 was a better year for Litagra than 2014, so we expect that will also be reflected in the share price," Sulnis said.
Banking
Having purchased shares of Siauliu Bankas in September 2015 for EUR 6.19 million (thus acquiring a 6.79% stake), Invalda INVL last year recorded a gain of EUR 2 million from its transaction with Siauliu Bankas, which included the transfer to Siauliu Bankas of the shares of Bankas Finasta and the brokerage firm FMI Finasta, and from the change in value of the shares of Siauliu Bankas.
"We're happy with Siauliu Bankas's performance in 2015 and expect the bank will continue growing in quality and size in the future as well. We think this bank's shares are currently still undervalued," Sulnis said.
Facility management
Companies of the Inservis facility management group, which Invalda INVL controls, had a total value of EUR 4.6 million at the end of 2015, or 42% more than at the end of 2014. During the year, dividends of EUR 237 thousand were allocated by these companies, while the gain from their change in value was EUR 1.4 million.
"We're pleased with Inservis's growth in the commercial segment. More and more customers are looking for an alternative to the market leader and are choosing this company which we manage," Sulnis said.
Other investments
As of the end of 2015, Invalda INVL had EUR 0.5 million of investments in other publicly traded shares as well as EUR 1.8 million of other investments and loans. Invalda INVL had total liabilities of EUR 0.8 million at the end of December.
Invalda INVL, operating since 1991, is one of the leading asset management groups in the Baltic region. Group companies 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. Companies in the group manage over EUR 300 million of assets entrusted to them by more than 150,000 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.
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