After merger, INVL Asset Management in Lithuania has nearly EUR 250 million assets under management

Invalda INVL, one of the leading asset management groups in the Baltic countries, announces that the merger of INVL Asset Management, MP Pension Funds Baltic and INVL Fondai has been completed and from now on the company INVL Asset Management will operate in the market. The company, which manages pension and mutual funds and provides other investment services, had 249 million euros of assets under management at the end of September 2015.

“Having merged the companies, we’re starting a new phase – we’re going to actively expand the asset management business, with INVL Asset Management serving as the group’s investing hub, providing services to both individuals and institutional investors,” said Darius Šulnis, the CEO of Invalda INVL and INVL Asset Management. Since investing is a key tool for creating future welfare, the company will seek to encourage an asset management culture in the country, he said.

One of the company’s main strengths, according to the CEO, is having the largest team of investment professionals in the country. “We expect our accumulated experience and successful track record in asset management will enable us to continue providing investing solutions that are relevant and high-quality. Our goal is to become the leading asset management company in Lithuania and Latvia,” Šulnis said. In developing products for individuals, the company will focus on services for those who are just starting to save for retirement as well as for active investors and those interested in alternative investment solutions. In addition, much attention will be given to the development of a savings and investment culture.

In managing pension funds, INVL Asset Management offers a pension accumulation approach based on products that are suited to the ages of pension fund participants. INVL Asset Management had 166.7 million euros of 2nd pillar pension fund assets under management at the end of September 2015 and, according to central bank data, had a nearly 9 per cent share of the Lithuanian pension fund market in the first half of the year. The company managed 8.6 million euros of assets in 3^rd pillar pension funds at the end of the third quarter, with a half-year market share of more than 16 per cent.

Mutual funds are another asset management area that is relevant to individuals. The mutual funds managed by INVL Asset Management, which for several years now have earned strong international reviews, are available not only in Lithuania, but also in the Scandinavian countries and Germany. INVL Asset Management had 36.5 million euros of mutual fund assets under management at the end of the third quarter. Data for the first half of the year show that the company ranked No. 1 in Lithuania for number of mutual fund participants and, based on mutual fund assets, had a market share of nearly 16 per cent.

The company also offers products for those planning larger investments – from alternative investments and individual portfolios to private equity arrangements. INVL Asset Management managed 37.2 million euros of assets in client portfolios at the end of September 2015. Moreover, for those interested in exclusive asset management opportunities, Invalda INVL group member INVL Finasta will provide wealth management services after being licensed as a financial brokerage company.

The companies INVL Asset Management, MP Pension Funds Baltic and INVL Fondai were merged after permission was received from the Bank of Lithuania to reorganize the pension accumulation company MP Pension Funds Baltic and transfer the management of its pension funds to INVL Asset Management. On 29 September, the Board of the Bank of Lithuania approved the decision to invalidate the license of MP Pension Funds Baltic. After deregistration of MP Pension Funds Baltic and INVL Fondai, it is the company INVL Asset Management that operates in the market. The merger does not require clients to take any actions – all agreements remain in force.

Invalda INVL acquired the asset management companies INVL Asset Management (previously named Finasta Asset Management, with units in Lithuania and Latvia) and MP Pension Funds Baltic in 2014.

Companies in the Invalda INVL group, which has been in operation since 1991, manage pension and mutual funds, alternative investments, individual portfolios, private equity and other financial instruments. They currently manage more than 300 million euros of assets entrusted to them by over 150,000 clients in Lithuania and Latvia as well as international investors.