Impact of the coronavirus (COVID-19) on the activities of Invalda INVL group

Invalda INVL asset management group is prepared for the downturn caused by the coronavirus (COVID-19) pandemic. Despite the anticipated loss of investments value, Invalda INVL will fulfil all of its obligations and continue to contribute to the recovery of the region, in anticipation of a future cycle of growth, through proactive work and investment activity.

COVID-19 is very likely to cause significant damage to the global economy and financial markets, so we predict that 2020 will bring losses for most of our investment products and Invalda INVL itself.

We have and always will prioritise the interests of our investor base as we work to ensure maximum financial security and a long-term overall return. Our investment managers continue to monitor very closely a fast-changing situation in the financial markets as we seek to minimise losses and target market opportunities.

The impressive growth of financial markets has continued for more than a decade and so we accept that the current challenges faced are part of a normal economic cycle that will ultimately bring us back to a period of new growth.

The funds managed by Invalda INVL group have accumulated significant financial resources and there are plans in place to invest into new businesses, equities and debt products in accordance with our already well-established successful strategy and financial discipline. We believe that such investments made during the downturn will ultimately benefit both the companies receiving the capital and the investors in our funds. These investments will also contribute to the stability and future growth of the Baltic region.

In the immediate, we will mostly work remotely as a protocol, in order to ensure the safety of our customers, partners and employees. The talent working in the Invalda INVL group are the main source of our value creation with their professional and dedicated work enabling us to manage this situation as best possible as we seek to achieve long-term growth and success.

It is highly probable that the issuer Invalda INVL will incur losses in 2020 which due to the prevailing uncertainty cannot be accurately estimated.

The result for Invalda INVL will ultimately be determined by two components. The majority of Invalda INVL's equity is comprised of General Partner investments and legacy assets. If the global stock markets continue to decline and business values decrease, the value of the assets owned by Invalda INVL is expected to diminish in 2020. The second determining factor would be the potential income decline in Invalda INVL's core asset management business which is related to the size of the assets under management and / or the result of its management activities.

Invalda INVL, AB has no debt. Sufficient financial reserves are in place to fulfil all its liabilities and to ensure continuity and the further, successful growth of the asset management business.

Person authorised to provide additional information:

Darius Šulnis

President of Invalda INVL

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