The Invalda INVL group earned over EUR 124 million for clients in the first half of 2021
Invalda INVL’s equity at the end of June this year was EUR 96.7 million, or EUR 8.23 per share. Equity per share was 15.75% larger than at the end of 2020.
Invalda INVL earned a net profit of EUR 13 million in the first two quarters of the year, whereas in the same period last year it had a loss of EUR 4.2 million.
The group’s assets under management totalled EUR 1.44 billion at the end of the second quarter, which is 15% more than at the start of 2021 (when the amount was EUR 1.25 billion).
Asset management business
“The first half of the year was good for those investing and saving with the Invalda INVL group. Most of the group’s products did very well, generating a significant return for investors: overall, EUR 124.5 million were earned for clients in the period. Successful investment activities are driving growth in the assets entrusted to us for management and client numbers, which now exceed a quarter of a million,” Invalda INVL President Darius Šulnis said.
Invalda INVL’s revenue from the asset management business in January-June this year was EUR 7.1 million and, compared to the same period of 2020, increased by 10.2%. The company’s profit from the asset management business in the reporting period was EUR 1.8 million, which is four times the amount earned in the first half of last year.
During the first half of this year, INVL Asset Management registered a newly established master investment subfund – the INVL Emerging Europe Bond Fund – with the Financial Sector Supervisory Commission (CSSF) of the Grand Duchy of Luxembourg, seeking to increase the operating efficiency of the funds it manages and ensure the highest quality of services. This makes it easier for foreign institutional investors to invest in this bond fund which invests in Central and Eastern European countries.
Meanwhile, the INVL Sustainable Timberland and Farmland Fund II, which invests in forest and agricultural land in the Baltic Sea region and Central and Eastern Europe,raised a further EUR 18.5 million at the second closing and reached a size of EUR 51 million. The fund’s investment portfolio is also growing rapidly.
The INVL Renewable Energy Fund I was established after the end of the current reporting period. It will invest in renewable energy projects in the European Union, primarily Poland. The fund raised EUR 18.5 million from investors at the first closing.
“We are pleased that our two newest funds focus on investments that are based on environmental, social, and sustainable management criteria. The funds’ strategy and activities show that the aim of getting the best result for investors is compatible with reducing direct impact on the environment and fits investors’ expectations and asset managers’ desires to contribute to preserving nature for society,” Invalda INVL’s president said.
Life insurance business
In June, Invalda INVL signed an agreement with Mandatum Life Insurance Company Limited on acquiring that company’s life insurance business in the Baltics conducted through branches in Lithuania, Latvia and Estonia.
“On completion of the transaction, which is anticipated by the middle of 2022, we will be able to offer more varied solutions for financial security and well-being that are tailored to the needs of specific client groups, and to increase the group’s assets under management and revenue. We are also thrilled by our team’s growth in size and strength, which is extremely important for work with investments. Business expansion and entry into new areas gives the people that work in the Invalda INVL group an opportunity to grow and realize their potential,” Darius Šulnis said.
The value of investments in products which the Invalda INVL group manages totalled more than EUR 29 million at the end of the first half this year, while the value of other historical investment holdings was over EUR 44 million. Increase in the value of investments in the period resulted in a gain of EUR 9 million. Investments in Šiaulių Bankas and the INVL Baltic Sea Growth Fund made the largest positive contribution to that result.
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 250,000 individual and institutional clients from the region and abroad. Those clients have entrusted the Invalda INVL group with more than EUR 1.4 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.