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Evli increases AUM by 7 percent in Q2

Assets under management increased by 7.3 percent in Q2, bringing Evli up to a new record. The increase also contributes to a doubled operating income compared to the same period last year.

Evli's CEO Maunu Lehtimäki. | Photo: PR / Evli

Finland's second-largest asset manager increased its assets under management by 7.3 percent to EUR 16.1bn in Q2. That is a bigger increase than at two other large Nordic asset managers, DNB and Storebrand, which have also published their second-quarter reports.

"The group's assets under management reached a new record level at the end of the current quarter, and the product range has expanded especially to alternative investment products, mitigating the negative impact of a possible market turn," Evli writes in the report.

Year-to-date, assets under management increased by 14.2 percent and compared to the end of Q2 in 2020, AUM have grown by 24.8 percent.

At the end of June, assets under discretionary management had risen to EUR 5.6bn from EUR 4.9bn one year ago. Direct investments in Evli's traditional mutual funds increased to EUR 7.2bn from EUR 5bn. The assets in alternative investment products grew by EUR 0.3bn to EUR 1.3 billion.

"The key drivers for Evli's strategy, international sales and alternative investment products have developed according to plan in the first half of the year. Despite travel restrictions, international sales have gone well," Evli's CEO Maunu Lehtimäki writes in the Q2 report.

"Since the beginning of the year, net subscriptions amount to approximately EUR 380 million and the share of international clients in Evli's total fund capital, including alternative investment products, has already risen to 25 percent," he continues.

Profit doubled

The AUM increase has also contributed to improvements in income and profit.

In Q2, group net commission income rose to EUR 27m from EUR 26m in Q1. For the first six months, commission income increased by 61 percent to EUR 53.8m compared to the same period last year.

"The increase in fund fees has been driven by the growth of assets under management through successful new sales and positive value development," Evli writes in the report.

Evli's operating income for the second quarter grew by 53 percent compared to last year and totaled EUR 28.7m. Operating profits doubled in Q2 to EUR 13.1m compared to the same period last year and up from EUR 11.8m at the end of Q1.

Separating banking business

On Wednesday, Evli also reported that it intends to split off from its small banking business, which will merge with Nordic crowdfunding platform Fellow Finance and become Fellow Bank. Evli asset management will remain listed.             

"In my opinion, the negotiated solution is the best possible one from the perspective of Evli's customers, shareholders and other key stakeholders and creates a solvent bank of a new era that specializes in providing consumer and corporate finance based on digital service concept. It will also free up financial and human resources to develop existing and new products and services to strengthen Evli's market position," Lehtimäki writes in the Q2 report.

Evli to split and list asset management business 

Evli's global infrastructure fund lures in domestic institutions in last closing 

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