CapMan has raised more than €400 million new capital under management since October 2018.
Joakim Frimodig, CEO:
”Our core business developed strongly in 2018. Fees from fund and investment management and services grew by 22 per cent in 2018. The growth will continue strong in 2019. Since October 2018, we have raised more than MEUR 400 new capital under management. This new capital will contribute over MEUR 4 in fee income to CapMan annually, in full already in 2019. The growth of our service business will also continue strong.
Fee-based profitability was more than MEUR 6 in 2018, growing more than 100 per cent from 2017. We expect this positive trend to continue in 2019 following growth in management fees and continued good cost efficiency. Stronger fee-based profitability enables us to smooth out fluctuations in profitability and improve the predictability of our business.
We expand our product and service portfolio in line with our strategy and strengthen our distribution. Significant projects completed in the last few months support these objectives:
Our infrastructure fund was established in October and had raised more than MEUR 140 in equity commitments by the end of the year. Fundraising continues as planned in 2019. There is international interest in investing in Nordic infrastructure and we are among the frontrunners in bringing products that specialise in this strategy to market;
We completed two significant mandate-based real estate and infrastructure deals in December and January to large international investors: German BVK and Korean NHIS and NH-Amundi. The mandates demonstrate CapMan’s ability to serve international investors in a flexible manner parallel with traditional fund-based products;
We have today announced an acquisition of JAM Advisors, a Finnish company providing reporting, analytics and wealth management services. The acquisition supports our objective to develop specialised, high value-add services, while expanding our customer networks. CapMan’s objective is to grow JAM’s services significantly and scale up its commercial operations in full. We also seek to offer select private assets products to JAM’s customer base in addition to the existing service portfolio.
Despite the positive developments in the Management Company and Services businesses, the general weak development of the capital markets in the last few months of the year had a negative impact on the fair value of our trading portfolio, and by extension on the fourth quarter result for the Group. We have sold more than MEUR 35 (net) in shares and other market instruments from our trading portfolio and invested proceeds mainly in our own new products in accordance with our strategy. Market investments are not part of CapMan’s core business, and we aim to continue reducing the trading portfolio during 2019. Investments into own funds and products have performed well, returning approx. 10 per cent in 2018.
CapMan’s Board of Directors proposes that a dividend of EUR 0.12 per share to be paid. CapMan’s growing business, strong balance sheet and significant liquid and distributable earnings support our long-term objective to distribute an annually growing dividend to our shareholders.”