Alternative investments have been the best asset class over the past 20 years. But Swedish investors are currently missing out on the huge potential in alternative assets, according to Finnish asset manager Evli. That’s why Evli is now intensifying its efforts in Sweden, where it aims to manage EUR 1 billion in invested capital within five years.
Established in 1985, Evli is today one of Finland's largest asset managers. The company, which became known for its expertise in European corporate bonds, currently manages assets of over EUR 16 billion in equities, fixed income and alternative assets. Through its funds, Evli is a major owner of Swedish companies such as Vattenfall, Volvo Cars, Securitas and Mölnlycke.
According to Evli, alternative assets such as unlisted companies, infrastructure and real estate can offer a better long-term return and inflation protection compared to stocks and bonds alone. Alternative investments and Private Equity, in particular, have resulted in the highest returns over the past 20 years compared to other asset classes, according to data from investment data company Preqin. But barriers such as the requirements for extremely high investment amounts and a difficult-to-navigate and sometimes inaccessible market have kept a large portion of Swedish investors away from investing in alternative assets. Something that Evli now wants to change.
"Until recently, alternative investments and primarily infrastructure investments have been a privilege only for the big boys. But we are also enabling smaller players to invest in alternative assets so that they can build a diversified portfolio if they wish. The traditional strategy of building portfolios with 60 percent equities and 40 percent fixed income, the so-called 60/40 model, is outdated, but for many investors there have been no good alternatives - until now," says Kim Pessala, CEO of Evli Fund Management Company.
The goal: 1 billion euros in invested capital
Evli sees potential above all in getting more Swedish clients to invest in alternative assets. It’s within these assets that Evli has a unique service and strategy, providing access to high-quality fund management with a diversified exposure in a way that has not previously been possible in Sweden.
Instead of the traditional 60/40 model, Evli advocates a portfolio of 40 percent equities, 30 percent fixed income and 30 percent alternative assets. Adding alternative investments results in higher long-term returns and a less volatile portfolio.
"A portfolio that’s diversified to include alternative asset classes is an absolute must today, not least considering how the market looks right now. Alternative investments in real assets such as infrastructure and forestry provide inflation protection, while private equity improves returns," says Jesper Roslund, Head of alternative funds in Sweden at Evli.
For more information, contact:
Jesper Roslund, responsible for alternative funds Evli Sweden
+46 707 608182