Investment activities

The aim of Norvestias investment activities is to achieve a good risk-adjusted return. Although Norvestias investment portfolio should be treated as a whole, it can be divided into five categories: direct share investments, equity funds, hedge funds, money market investments and industrial investments. The emphasis between different categories can be adjusted according to the prevailing market view.

Norvestia increases the emphasis on direct share investments when it seems analytically justified. This increases the current risk level of investments, but the aim is to keep the total risk level lower than the stock market risk in general. Norvestia focuses mainly on value shares.

Business operations of investment companies differ significantly from for example those of companies with industrial, commercial, insurance or banking operations. Along with the implementation of the IFRS financial statements turnover, purchase of securities and change in inventories no longer appear in the income statement. Instead trading gains and losses are reported. Norvestia aims for a good absolute return on its investments, regardless of the general development on the stock market and bond market.