CEO's review
Evli had a favorable start to the year – operating profit increased. The growth in operating profit was driven by higher fund fee income and performance-based fees. Strategically important areas, international sales and alternative investment products, developed reasonably well.
The year 2026 got off to a positive start, buoyed by favorable global economic growth expectations, low interest rates, and rising earnings forecasts. Equity prices rose broadly until the end of February, when the war launched by the United States and Israel against Iran triggered a sharp reversal in the markets. Fears of slowing growth, higher energy prices, constrained commodity availability, accelerating inflation, and rising interest rates prompted investors to reduce their risk exposure. The situation was compounded by Iranian retaliatory strikes on oil and gas production facilities in the Persian Gulf and the closure of the Strait of Hormuz to maritime traffic, which drove crude oil prices higher and reduced delivery volumes. As a consequence of these crude oil supply disruptions, a number of countries — particularly in Asia — have been forced to impose restrictions on fuel consumption.
Beyond geopolitical risks, investors have also been pricing in the threat that the rapid advancement of artificial intelligence (AI) poses to companies' future business prospects. As AI displaces manual labor and renders numerous products obsolete, earnings outlooks are at particular risk in the SaaS and software industries, as well as in knowledge-intensive sectors such as legal, consulting, human resources, and outsourcing services. Share prices in the software sector have as a result fallen sharply, and the private credit funds financing these companies have also encountered significant difficulties as redemption requests have increased. By contrast, the broader benefits that AI advancement stands to deliver through improvements in the quality and efficiency of corporate operations have yet to be reflected in analysts' earnings forecasts and equity valuation multiples.
”We view AI as an excellent tool for broadening and deepening the analysis and coverage of our investment universe.”
At Evli, we are also investing in leveraging AI in the development of new services, reporting, and processes. We have a number of initiatives underway in this area, and our Atlas service, for example, already features investment portfolios and funds that make extensive use of AI capabilities. We view AI primarily as an excellent tool for broadening and deepening the analysis and coverage of our investment universe.
Global equity markets declined in the first quarter by 1.5 percent as measured by the MSCI World index and by 2.7 percent as measured by the S&P 500 index. In Europe, equity prices fell by 1.1 percent as measured by the STOXX 600 index. Emerging market equities rose by 1.1 percent.
The U.S. dollar strengthened against the euro by 1.6 percent, and the price of gold rose by 8 percent. The yield on Germany's 10-year government bond rose by 15 basis points to 3.0 percent. Corporate bond spreads widened by 16 basis points in the investment grade category and by 60 basis points in the high yield category. Overall, returns across major asset classes fell well short of expectations during the quarter.
Conditions in the Finnish real estate market remained challenging, and the majority of domestic open-ended real estate funds have continued to defer redemption payments. This is also the approach we have taken at Evli with the Evli Rental Yield II fund, in order to ensure equal treatment for all unitholders.
”Evli Group's net revenue increased by 26 percent and operating profit by 41 percent year-on-year.”
Evli Group's net revenue increased by 26 percent year-on-year in the first quarter to EUR 34.8 million (EUR 28 million). The best-performing areas were fee income from traditional and private equity funds and performance-based fees, all of which grew compared to the previous year. Advisory fees, brokerage revenues, and returns from the Group's own balance sheet items were below the prior year level.
The Group's operating profit increased by 41 percent in the first quarter to EUR 16.1 million (EUR 11.4 million). The growth in operating profit was driven by higher fund fee income and performance-based fees recognized during the period, which were significantly higher than in the comparison period.
Evli's return on equity from the beginning of the year was 34 percent (28%), and the ratio of recurring revenue to operating costs was 127 percent (130%). The Group's solvency and liquidity were at an excellent level.
“Evli's strategically important areas, international sales and alternative investment products, developed reasonably well during the review period.”
Evli's strategically important areas, international sales and alternative investment products, developed reasonably well during the review period, taking into account the market turbulence towards the end of the quarter. Net subscriptions from international clients amounted to approximately EUR −29 million, and the share of international clients in Evli's total fund capital, including alternative investment products, was 24 percent (21%). Net subscriptions and investment commitments in alternative investment products during the quarter totaled EUR 80 million (EUR 70 million). Assets under management in alternative investments stood at EUR 3.4 billion at the end of the quarter.
The Wealth Management and Investor Clients segment's net revenue increased by 42 percent in the first quarter to EUR 32.5 million (EUR 22.8 million). Assets under management were broadly in line with year-end levels at EUR 21.5 billion (EUR 19.0 billion).
Evli Fund Management Company's mutual fund capital, including alternative investment products, amounted to EUR 16.4 billion (EUR 13.8 billion). Net subscriptions in traditional mutual funds during the quarter amounted to approximately EUR 130 million. The largest net subscriptions were directed to the Evli Euro Liquidity and Evli Corporate Bond funds. Year-to-date, the top-performing funds by return were Evli Japan (7%) and Evli Silver and Gold (6%).
The Advisory and Corporate Clients segment's net revenue declined by 42 percent in the first quarter to EUR 1.6 million (EUR 2.8 million). Revenue fluctuations can be significant from quarter to quarter and from year to year.
In times of uncertainty, Evli's ability to operate steadily even in exceptional market conditions comes to the fore. Our business is not built on isolated decisions or short-term maneuvers, but on long-term commitment, a clear strategy, and a strong corporate culture. This creates the foundation upon which Evli can continue to build, even in a changing and uncertain operating environment.
Maunu Lehtimäki
CEO, Evli Plc
Updated in connection with the publication of Evli Plc's Interim Report 1–3/2026 on April 23, 2026.