For the first time in Romania, a financial investment company is changing its name and aligning with the new legislation on alternative investment funds in the European framework. EVERGENT Investments is the new name under which the company with the largest capitalization of all financial investment companies listed on BVB (1,385 billion lei) operates. In the last 10 years, the company had a sustained growth with their compound rate of return of the fund being 9.23%, 1.77% higher than the average return obtained by all other equity funds in Romania.
The change of name highlights the performance of the last 10 years. A successful business model, the quality of management, the strategy applied on portfolios and a solid organizational culture are the factors that contributed to this success.
“We are convinced that the performance of the last 10 years, the current stage of development of the company and especially the investments we made to generate long-term value, will be reflected and highlighted much better in a new identity, a new name. EVERGENT Investments positions us correctly in the investment environment in Romania and in the region, especially on the capital market, but also for the development of new businesses.
Thus we defined our mission in front of the shareholders, then we persevered in applying the necessary strategy and policies. Our portfolio performance, in just the last 10 years, shows we have generated an annual average appreciation rate for our shareholders of 13.2%, composed of dividends received by them and the increase in assets behind the shares they hold. We have defined our objective to be leaders on the Romanian capital market, in order to generate benefits for all stakeholders, being in the assent of our investors and employees. To achieve our goal, we rely on values such as responsibility, innovation, performance, diligence in action and how we push our limits to be better. Our values are well rooted in our organizational culture, they guide us, both personally and in the business strategy. Our team is made up of talented and persevering people, who share the same values, which have become our competitive advantages and have generated performance. Public available data shows that we are the most valuable financial investment company in Romania in the last 3 years, with a capitalization of 1,385 billion lei. I am pleased to remind you that in the last 10 years we have granted dividends to our shareholders in the equivalent of over 150 million euros, while we have doubled the assets under management to 2.2 billion lei.
Our investment philosophy translates into continuous construction, to capitalize on ideas and opportunities, to generate long-term performance. Specifically, the EVERGENT Investments strategy aimed primarily to increase the performance of the listed portfolio, with its two pillars, Banking and Financial Markets and Industry and Energy Markets, which has become the main source of profit and resources for new investments. With the wind blowing from the current Board of Directors, taking advantage of the recognized expertise and experience of its members, we have started and continue to courageously invest in private equity, especially in agribusiness and real estate. Last but not least, we managed to extract value, important resources, even from the non-performing portfolio inherited from privatization, despite the fact that the activity on this portfolio is less a managerial priority. Our model continuously creates positive cash flow, which allows us to invest further in the company’s growth and to have a predictable dividend policy and annual redemption programs to the benefit of shareholders.
We managed to successfully conclude 2020, a year with multiple challenges. The unaudited net result of 56,08 million lei, consisting of net profit and net gain reflected in the retained earnings is 44% higher than the budgeted one, which validates the solidity of our business model even in extreme conditions. Also, the level of investments of 174 million lei in 2020 exceeded by 66% the budgeted level. All these results, in addition to the transparency with which we have accustomed the market, a consolidated corporate governance over time, the concern for performance and not for conflicts, have led to increased investor interest in EVER (SIF2) and consequently increased share value. close to VUAN (2.1 lei on January 30, 2021), by reducing the trading discount. In other words, we want the value and performance of our assets to be recognized by the value of the company in the market, this being our main objective.
Finally, while preserving the tradition of Moldovian boar and the symbolism of the bull in the growing markets, we move on to a new level with a new enthusiasm, under the sign of a symbol distiled and crowned with precious stones, which represent our people who work to turn ideas into opportunities and these into performance.”, said Claudiu Doroș, Managing Director EVERGENT Investments.
EVERGENT Investments reflects a dynamic and innovative investment company that seizes opportunities and will continue to focus on investment responsability and achieving consistent returns for its shareholders. Recognized for its robust investment strategy, the company is entering an extensive process of changing its name and image, consolidating its leading position on the Romanian capital market.
“In our view, the success of the company is defined as the success of our shareholders. The approach from this perspective determined us to look for new horizons, to develop continuously, to refine our tactics and strategy so as to optimize the business model. The changes in the environment in which we operate have determined some changes in the structure of our portfolio. In recent years, we have explored sectors that were not on the radar of many institutional investors. Over 75-80% of the strategic directions we have in place did not exist 10-15 years ago. We have successfully demonstrated that the investments in private equity, are one element that sets us apart. We have approached a long-term strategy and we are open to new initiatives, capitalizing on various initiatives. We have invested over 400 million euros in 3 major asset classes:
- listed shares
- unlisted shares, in particular private equity
- fund units and monetary instruments, generating the doubling of the value of assets in these years.
The two basic pillars of our portfolio ensure the stability of dividend flows. Within them, there are frequent intra-sectoral rebalancing depending on the signals from the continuous analysis of fundamental indicators, sentiment and technical analysis.
Because the performance of the listed portfolio is consistently above average, we have generated an amplified effect on long-term profitability and cost efficiency. Thus, in the period of 10 years between 2010 and 2020 we generated an average yield of 9.2% annually, a performance in itself, especially compared to the average yield of all equity funds in Romania, which was 7.5%. For a fund manager, generating a pure alpha of 1.7% (9.2-7.5) is an occasion of great satisfaction. For shareholders, this yield is evidence of wise exposure to our fund. Alpha is a term used in finance and investment to indicate the performance of a strategy or fund manager over the performance of the market or industry in general. Alpha represents proven performance.
In conclusion, the new name EVERGENT Investments shows who we are today, a team of talented people, experts in their fields, tested investment processes, various tactics, capitalized opportunities, successful strategy, in fact a solid and strong investment company that aligns with expectations investors, but also of the community we belong to.”, said Cătălin Iancu, Deputy General Manager of EVERGENT Investments.
The slogan “DRIVE FOR PERFORMANCE” expresses a continuous, enduring momentum of the professional team that leverages the precise, rigorous, intelligent and creative approach in business strategies to generate performance. The logo was created under the inspiration of the concept of force of opportunities being plotted by a metamorphosis of two powerful symbols: The ox specific to the financial markets and the boar of Moldovian, the emblem of the historical province in which the society was born.
The management team received in the Ordinary General Meeting of Shareholders in February the vote of confidence of investors, with Ceocea Costel, Ciorcilă Horia, Doroș Liviu Claudiu, Iancu Cătălin-Jianu-Dan and Radu Octavian-Claudiu . Also, Claudiu Doroș and Cătălin Iancu were selected as President and Vice President of the EVERGENT Investments board, respectively.