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 physical asset classes. assets such as real estate, land and forests, infrastructure, renewable energy and private equity. 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 obtain a long-term return but who cannot make a large initial investment. Client surveys show that capital markets are still difficult to understand for most Lithuanians and investments in physical assets seem much more reliable. At the same time, funds investing in alternative asset classes and tangible assets are often only accessible to sophisticated investors able to invest at least EUR 125,000, thus excluding smaller clients. We want more Lithuanians to be able to properly grow their savings and thus help them ensure their future financial security and 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 a little less savings, there weren’t many options: they could choose life insurance, pension funds, or mutual funds that invest primarily in stocks and bonds. public market bonds.
Along with public market investment funds available to retail investors, INVL is launching a product that is accessible to more people interested in investing and provides 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 combining them from different asset classes and funds, we reduce the risk of the investment portfolio. Investors themselves, having relatively small amounts available to invest, could not diversify their own investments, because the minimum investment in an alternative fund is usually too large 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.
Person to contact for more information:
Vaidotas Rūkas, Chief Investment Officer at INVL Asset Management,
Email [email protected]