Investment Strategy 2010

Norvestia’s twofold investment strategy consists of an actively managed portfolio and industrial investments.  Investments in the actively managed portfolio are made according to market circumstances. The aim is to achieve a good risk-adjusted return. At year-end a large part of Norvestia’s assets were invested directly in shares on the Helsinki Stock Exchange. Investments may also be made in other stock exchanges in order to diversify risks and on the basis of return expectations with the main emphasis on the euro zone.

Norvestia will make investments in the actively managed portfolio focusing mainly on value shares, i.e. shares that are offered at prices that are low, both historically and in relation to a company’s net asset value and performance expectations. Investment levels between shares, funds and interest-yielding investments will be assessed as circumstances dictate.

The aim of industrial investments is to achieve above average market returns by developing the target companies. According to current frames about 20-30% of investment assets may be used for industrial investments, although this amount may be exceeded. These investments have no time limits and will be made when the right opportunity presents itself.

The Annual General Meeting in the spring of 2010 authorized the Board of Directors to purchase the company’s own shares and to decide on a possible share issue. Both authorizations may be used for industrial investments. The use of leverage can also be considered when it comes to financing industrial investments.

The emphasis between different investment strategies will be assessed on a case by case basis.