According to the guidelines Alternative Performance Indicators which were prepared in 2015 by the European Securities and Markets Authority, and which came into force 3 July 2016, the company presents the definitions of the used indicators and the calculation methodology.
AuM refers to the assets we manage or have under supervision and generally equals to the sum of the following: fair value of managed or supervised assets and uncalled capital commitments. Fair value of managed or supervised assets is generally based on one of the following:
– the capitalization of listed entities;
– the net asset value of unlisted funds;
– the fair value of financial instruments of discretionary managed portfolios;
– the fair value or value set out in contracts of assets supervised by the family office.
The net asset value of feeder funds that invest in our managed funds is not included into AuM. The carry units of funds are included in AuM calculation. The reported amount is the aggregated, not consolidated, sum of the assets; therefore, assets which represent investments to our managed assets are included in the assets supervised by family office.
This AuM represents the size of assets to which the Group has an economic influence through management or supervision. We believe that such AuM stands as a better measure of our investment and fundraising performance.
Fee-earning AuM refers to the assets we manage or have under supervision and from which we derive recurring fees. Our Fee-earning AUM is generally based on one of the following, once fees have been activated:
– the amount of subscribed capital commitments of funds;
– invested capital of funds at cost;
– the net asset value of funds;
– net asset value before management fees of funds;
– the capitalization of listed entities;
– the fair value of financial instruments of discretionary managed portfolios;
– the fair value or value set out in contracts of assets supervised by family office.
If management fee is not applied to some classes of funds units, corresponding value of funds units is not included into Fee-earning AuM. The corresponding value of feeder funds that invest in our managed funds is not included into Fee-earning AuM (unless the value exceeds the corresponding fund value, in such case the excess is included).
Our calculations of AuM and Fee-earning AuM may differ from the calculations of other asset managers. As a result, these measures may not be comparable to similar measures presented by other asset managers. The terms used in the definition are not consistent with the terms how they are defined in the Regulatory framework. The definition ‘managed assets’ includes assets of managed funds as it is defined by the Regulatory framework as well as assets managed under a portfolio management delegation agreement and assets managed under property administration agreement. The term “funds” include not only funds without legal status, but also entities with legal status, including listed entities managed by the Invalda INVL group companies.
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Return on Equity (ROE) (measured in percentage terms) = Net profit over the last 12 months prior to the end of the reporting period / Average equity
Return on equity excludes debt in the denominator and compares net profit over the last 12 months with total average shareholders’ equity. It measures the rate of return on shareholders’ investment and is, therefore, useful in comparing the profitability of the Group with its competitors.
Average equity = (The ending equity 12 months prior to the end of the reporting period + The ending equity for the reporting period)/2
The calculation formulas for Return on Equity (ROE) and Average equity 30/05/2025 have been adjusted to incorporate data from the last 12 months, in order to ensure a more consistent assessment of profitability and a more accurate reflection of the period’s results.
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Compound Annual Growth Rate (CAGR) is a smoothed annual growth rate that provides a consistent measure of a company’s growth over a specific period. It represents the steady annual rate at which an investment or business has grown, assuming that the growth remains consistent each year, without considering any volatility or fluctuations.
Book value per share = The Group’s equity / The number of shares, excluding the Group’s own shares, at the end of a reporting period
The book value per common share indicates the euro value remaining for common shareholders after all assets are liquidated and all debtors are paid.
Price to Book ratio = The share price at the end of a reporting period / The net assets value per share
Price-to-book ratio compares a firm’s market to book value by dividing price per share by net assets value per share. This shows how the valuation is covered by equity.
Liquidity ratio = Current assets / Current liabilities
Liquidity ratio is a financial metric used to determine a debtor’s ability to pay off current debt obligations without raising external capital.
Operating profit margin (measured in percentage terms) = Operating profit / Sales
Operating margin measures how much profit a company makes on a euro of sales, after paying for variable costs of production such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a company’s operating profit by its net sales.
Debt ratio = Total liabilities / Total assets
The debt ratio is a financial ratio that measures the extent of a company’s leverage. It can be interpreted as the proportion of a company’s assets that are financed by debt.
Debt to Equity ratio = Total liabilities / Equity
The debt to equity equity ratio is calculated by dividing a company’s total liabilities by its equity. The ratio is used to evaluate a company’s financial leverage.
Price earnings ratio (P/E) = The share price at the end of a reporting period / Earnings per share (EPS)
To determine the P/E value, one simply must divide the current stock price by the earnings per share (EPS). It is used to compare a company against its own historical record or to compare aggregate markets against one another or over time
Earnings per share (EPS) is an indicator attributed to a set of investment (value) indicators. This indicator shows the share of the company’s profits per ordinary share. When evaluating the indicator, the rule is the higher its value is the better. It should be noted, however, that in different sectors of activity, the EPS indicators may vary considerably.
EPS = Net profit for the reporting period / The average number of shares outstanding during the reporting period
A detailed calculation of this indicator is disclosed in the notes to the financial statements