INVL Asset Management, one of Lithuania’s leading asset management companies, has established the INVL alternative investment fund for retail investors, with investments starting from EUR 5,000. The new fund will focus, through investments in other investment funds, on alternative and active physical asset classes such as real estate, land and forests, infrastructure, renewable energy and investment capital. It is the first INVL fund that offers retail investors the opportunity to invest in alternative asset classes. The operation of the fund has been approved by the Bank of Lithuania.

Attention to customer needs

“We are constantly on the lookout for new investment opportunities that meet the needs of our clients. We have set ourselves the goal of creating an attractive and understandable investment vehicle for clients who wish to protect themselves from inflation and earn a long-term return but cannot make a large initial investment.Customer surveys show that capital markets are still difficult to understand for most Lithuanians and that investing in physical assets seems much more reliable. Meanwhile, funds investing in alternative asset classes and tangible assets are often only accessible to sophisticated investors able to invest at least 125,000 euros, which excludes small clients.We want more Lithuanians to be able to do grow their savings properly and thus help them ensure their financial security and well-being future well-being,” says Laura Križinauskienė, CEO of INVL Asset Management.

She says launching a fund like this is an important step in opening up investment solutions to a wider audience. In developing this product, INVL wanted to take into account the specific expectations of its customers and therefore conducted a survey* of some of its existing customers. It turned out that 60% of clients would be interested in the possibility of investing in a combination of investments that balances risk and expected return. Half of respondents (50%) would seek a return of at least 8% and 64% of respondents would choose investments with a term of up to 10 years.

A chance to invest in alternative asset classes with smaller amounts

Inflation in Lithuania is currently high and the best way to protect the value of your money is to invest it. For people with somewhat smaller savings, there weren’t many options: they could choose life insurance, pension funds, or mutual funds that invest primarily in stocks and public market bonds.

Along with the public market investment funds available to retail investors, INVL is launching a product accessible to more people interested in investing and providing an opportunity for those who have saved smaller amounts to diversify their investments: INVL clients will be able to invest in real estate assets through collective investment schemes with a minimum amount of EUR 5,000.

“By selecting the most suitable alternative investments and mixing them from different asset classes and funds, we reduce the risk of the investment portfolio. The investors themselves, having relatively small amounts available to invest, could not diversify their own investments, since the minimum investment in a hedge fund is usually too much for them,” says INVL Chief Investment Officer Vaidotas Rūkas.

According to him, investors see the alternative investment class as an attractive solution to diversify an existing investment portfolio, as they show greater stability when markets are volatile, with the expectation of a good risk-return ratio. . The characteristic of physical assets to maintain their value in times of inflation is also important. Thus, a combination of alternative investments is a good choice to which more and more professional investors are turning.

The launch of the alternative investment fund INVL coincides with the launch of its initial offering, which will run for up to six months. In Lithuania, INVL Asset Management and the brokerage firm INVL Finasta distribute fund units, with a minimum investment amount of EUR 5,000 and no fixed ceiling. The total duration of the fund is 10 years (with the possibility of extension for another 2 years). The target average annual rate of return is 8%.

About INVL Asset Management

INVL Asset Management, one of the leading asset management companies in Lithuania, is part of the Invalda INVL group. Group companies manage pension and mutual funds, individual portfolios, private equity and other alternative investments. More than 250,000 clients in Lithuania and Latvia, as well as international investors, have entrusted the companies of the group with the management of more than 1.5 billion euros in assets. Invalda INVL, operating since 1991, has 30 years of solid experience in managing private equity assets and building leading players in their respective fields in the Baltic States and the CEE region.

* INVL Asset Management client survey conducted in July 2021 with 577 respondents.

Important information:

Investments in the investment units of the INVL Alternative Investment Fund (hereinafter – the Fund) involve investment risk and other risks specified in the Fund’s rules and prospectus. The value of investments can both go down and up and investors can get back less than they invested or even lose the whole amount invested. The management company of the UAB INVL Asset Management Fund (hereinafter – the Management Company) does not guarantee the profitability of the investments.

Before making an investment decision, an investor should personally or with the assistance of an investment adviser assess the Fund’s investment strategy, applicable charges and all risks associated with the investment and read the prospectus carefully. of the Fund, the rules, the key investor information document and other documents. intended for investors, available on the website of the Management Company or can be obtained free of charge at the Management Company’s customer service points.

The Fund will invest most of its assets in other collective investment schemes. Up to 100% of the Fund’s assets may be invested in non-harmonised collective investment schemes, including qualifying special purpose collective investment schemes, sophisticated investor collective investment schemes and other that invest most of their assets in alternative asset classes including private equity, energy and infrastructure, physical assets (real estate, forests, land), private debt and other classes alternative assets (hereinafter – alternative UCIs). At the start of the Fund’s operations and/or if it is not possible to invest the Fund’s assets in alternative UCIs, and/or in order to manage the Fund’s liquidity risk, the Fund’s assets, in compliance with the diversification requirements, may be invested in investment funds which invest in debt securities, investment units and/or other money market financial instruments (including deposits) or debt securities (directly or through other collective investment schemes). As part of the investment of the Fund’s assets, priority will be given to other undertakings for collective investment managed by the management company.

The Fund will seek to invest in a portfolio of collective investment schemes with a target internal rate of return of 8%. The Management Company draws the attention of investors to the fact that the actual results of the investment activities of the Fund may differ and the Management Company does not guarantee either the profitability of the investments or the achievement of the operational objectives of the Fund.

The Fund will operate as a closed-end collective investment scheme, so the right of investors to require the redemption of investment units held by them is limited.

All the information contained in this document is of a promotional and informative nature and should not be interpreted as a recommendation, an offer or an invitation to invest in the units of the Fund or the shares of Invalda INVL. The information provided does not form the basis of, or form part of, any subsequent transaction.