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Introduction & Market Context
Evli Plc (HEL:EVLI) presented its Half Year Financial Report for January-June 2025 on July 14, showcasing modest growth in a challenging market environment. The Finnish asset manager reported a record EUR 19.7 billion in assets under management, driven primarily by strong demand for fixed income products and continued expansion of its alternative investment offerings.
The company’s stock closed at EUR 18.40 on the presentation day, down 0.27% from the previous close, reflecting a cautious market response to the results.
Financial Performance Highlights
Evli reported a slight increase in net revenue to EUR 55.2 million for H1 2025, compared to EUR 55.0 million in the same period last year (excluding the incentive business transaction). Operating profit showed modest growth of 1.4%, reaching EUR 22.5 million versus EUR 22.2 million in H1 2024 on a comparable basis.
The company maintained a stable profit margin of 41% year-over-year, while its recurring revenue ratio improved to 132% from 125% in the previous year, indicating stronger sustainability in revenue streams.
As shown in the following comprehensive financial development chart:
The detailed income statement reveals that fee and commission income decreased slightly to EUR 53.9 million from EUR 56.3 million in H1 2024. However, this was partially offset by improved net income from securities transactions, which increased to EUR 2.4 million from EUR 1.5 million. The most notable decline was in other operating income, which fell to EUR 0.3 million from EUR 14.1 million in the previous year, primarily due to a one-time transaction in the incentive business in 2024.
Breaking down the revenue components further, UCITS fund fees increased to EUR 26.1 million (from EUR 24.4 million), and alternative fund fees grew to EUR 12.8 million (from EUR 11.5 million). However, fund performance fees dropped significantly to EUR 0.7 million from EUR 5.2 million, reflecting more challenging market conditions for generating outperformance.
Assets Under Management Growth
Evli’s assets under management continued their upward trajectory, reaching a record EUR 19.7 billion by the end of June 2025. This represents a 5.3% increase from EUR 18.7 billion in H1 2024 and continues the long-term growth trend from EUR 14.1 billion in 2020.
The composition of AUM shows a diversified allocation with asset management representing 39%, alternative funds 33%, mutual funds 13%, and other assets 15%.
Alternative investments have been a particular focus area for Evli, with AUM in this segment growing to EUR 3.1 billion in H1 2025 from EUR 2.8 billion at the end of 2024. Since 2020, the company has nearly tripled its alternative assets from EUR 1.1 billion, demonstrating successful execution of this strategic priority.
Within alternatives, Private Debt represents the largest allocation at 42%, followed by Private Equity (21%), Other alternatives (22%), and Real Estate (15%).
Strategic Initiatives
Evli’s fund sales showed divergent trends across asset classes during the first half of 2025. Fixed income funds attracted strong net inflows of EUR 772 million, while equity funds experienced net outflows of EUR 360 million. Alternative investments continued to show strength with net inflows of EUR 187 million.
The company achieved positive fund sales both domestically and internationally, with total net inflows approaching EUR 600 million for the period.
Evli’s market position remained strong, as institutional investors ranked it as the best institutional asset manager in Finland in Kantar Prospera’s annual client survey. Additionally, in Morningstar’s quality ranking, Evli was the best performing fund house in Finland at the end of the period with an average of 3.82 stars.
Forward-Looking Statements
Looking ahead, Evli expects the operating environment to remain uncertain and difficult to predict throughout 2025. Despite these challenges, the company estimates that its operating result will be "clearly positive" for the full year.
Evli also reaffirmed its long-term targets, which include:
- Growing AUM to EUR 30 billion
- Achieving an EBIT margin of 30%
- Maintaining a high return on equity of 25%
- Sustaining a recurring revenue ratio above 130%
The company’s capital adequacy ratio stands at a robust 234.4%, providing a strong foundation for navigating market uncertainties while pursuing its growth strategy focused on alternative investments and international expansion.
With its balanced approach to asset management and continued focus on institutional clients, Evli appears well-positioned to maintain its leadership in the Finnish market while gradually expanding its international presence, particularly through its fixed income and alternative investment offerings.
Full presentation:
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