Fennia Asset Management Annual Report 2018

Managing Director’s Review

Solid platform for growth

Eero ErikssonDuring the 2018 financial year, we targeted growth, profitability and improved customer satisfaction. We believe we succeeded in all these areas.

The company’s external operating environment was challenging in 2018. Traditional investment instruments, such as equities and fixed income, generally offered low, partly even negative returns. The return development for alternative investments, however, was more consistent. Our property and building plot funds, as well as our other real estate asset management, yielded steady returns for investors in a difficult and unpredictable market environment. Our model portfolios that invest in securities also generated competitive returns considering their market.

We achieved growth in both our model portfolios that invest in securities and in our real estate business. Our strategy focusses on real estate funds and other real estate asset management. As investors and savers target stable and good returns, our real estate products have responded well to this demand. In spring 2018, we established Fennia Property Development Ltd to support our real estate business.

In our view, investors continue to increase the number of alternative investment products, such as fund-type real estate investments, in their portfolios. The opportunities for growth are thus still good.

Fennia Asset Management is financially solvent, and the company’s operations during the financial period were profitable. One indication of this is the payment of dividends to the parent company for the first time in the company’s history. This is a significant milestone in Fennia Asset Management’s short history.

Customer satisfaction among Fennia Asset Management’s investors was assessed for the first time during the financial period. The results were encouraging. We are part of a group of known and noted alternative asset managers. Our aim is to move up in this group from the mid-range to a leading position.

We will continue to target growth, profitability and improved customer satisfaction. During the current financial period, we have initiated measures that will allow us to expand our growth base. We must be able to offer our customers suitable investment and savings products during all investment cycle phases. Nothing is more certain than economic cycles, where alternative forms of investment are measured up against more traditional options. Investment wealth moves, but its movement is not an intrinsic value, nor is it an end in itself for us. Correctly timed movements, meaning the allocation of customers’ wealth, is in the interest of our customers.

We need a better platform for our services to make investing and investment monitoring easy and convenient for our customers.

This is represented by Fennia Asset Management’s formula, solid platform for growth.

I would like to express my thanks to Fennia Asset Management’s personnel for their commitment and dedication to our common goals. We also thank Fennia Group for their constructive co-operation.

Good asset management brings our customers better financial security. It is an enabler of doing and dreaming.

 

Eero Eriksson