ABLV Capital Markets, IBAS and ABLV Asset Management, IPAS ended 2011 with profit

Riga, Latvia, April 16, 2012, 09:20 / Investments

ABLV Bank affiliate companies working in the field of investments — ABLV Capital Markets, IBAS, which provides brokerage services, and ABLV Asset Management, IPAS, managing open-end investment funds — ended the year 2011 with good results, despite complicated situation and volatility on financial markets.

  • Profit of ABLV Capital Markets, IBAS for 2011 amounted to LVL 1.1 million (EUR 1.58 million). Compared with 2010, the profit has grown by 61%. In 2010, the company’s profit was equal to LVL 682 thousand (EUR 970 thousand).
  • Profit of ABLV Asset Management, IPAS for 2011 amounted to LVL 203 thousand (EUR 289 thousand). Compared with 2010, the profit has grown by 28%. In 2010, the company’s profit was equal to LVL 158 thousand (EUR 224 thousand).
  • Operating income of ABLV Capital Markets, IBAS totalled LVL 2.26 million (EUR 3.1 million) in 2011 — by 30% exceeding that in 2010.
  • Operating income of ABLV Asset Management, IPAS amounted to LVL 587 thousand (EUR 806 thousand) in 2011 — by 9% exceeding that in 2010.
  • Total assets that customers of ABLV Capital Markets, IBAS invested in financial instruments equalled LVL 253.6 million (EUR 360.8 million) as at the end of 2011. During the year, their amount has increased by 9.3%.
  • Total assets managed by ABLV Asset Management, IPAS following the customers’ instructions amounted to LVL 29.4 million (EUR 41.8 million) as at the end of 2011, and those include the following:
  • LVL 23.9 million (EUR 34.12 million) — customers’ investments in investment funds managed by ABLV Asset Management, IPAS;
  • LVL 5.4 million (EUR 7.7 million) — customers’ funds invested in individual investment programmes.

ABLV Capital Markets, IBAS was established 6 years ago, in order to execute customers’ instructions on purchase and sale of all types of financial instruments in the world’s major stock markets. The company runs active business in the markets of the USA, Western Europe, Eastern Europe, CIS states, Asia, and developing countries of South America.

Since August 2007, customers of ABLV Capital Markets, IBAS are offered financing secured by pledge of securities held in financial instruments’ accounts with ABLV Bank, AS. Since July 2008, ABLV Capital Markets, IBAS offers its customers the opportunity of making transactions in futures and options at major US and European stock exchanges, using electronic trading platforms.

In 2010, the company implemented remote workplace for customers — electronic trading system Trader ABLV, which enables customers to execute transactions in financial instruments on their own, using the trading platform. Since October 2010, the opportunities of receiving financing secured with financial instruments have been expanded, appending the list of financial instruments and increasing the share of granted financing. The company’s analysts constantly monitor situation in financial markets, providing analytical and informational support to customers.

In April 2012, ABLV Capital Markets, IBAS started offering new service to its customers — opening and maintenance of precious metals’ accounts, execution of trade transactions in gold, platinum, palladium, and silver, as well as holding of unallocated precious metals in the accounts.

Improving the range of services, the company plans to introduce new product this year — risk hedging, which can be used to cover currency risk or market price fluctuation risk.

The year 2011 was the sixth year of operations of ABLV Asset Management, IPAS as well. Currently, the company manages three investment funds, the investment currency of which is US dollar: ABLV Emerging Markets USD Bond Fund, investing in government debt securities of developing countries; ABLV Global USD ETF Fund, investing in exchange traded funds; and ABLV High Yield CIS Bond Fond, mainly investing in corporate and financial institutions’ debt securities of the CIS states. The funds ABLV Emerging Markets Bond Fund and ABLV Global ETF Fund have subfunds for investments in euro — ABLV Emerging Markets EUR Bond Fund and ABLV Global EUR ETF Fund. Whereas at the end of the last year, there was a corporate bond subfund established — ABLV High Yield CIS RUB Bond Fund, the investment currency of which is Russian rouble.

In 2011, ABLV Asset Management, IPAS continued creating individual investment portfolios for customers, investing funds in various investment programmes in order to meet the demands of different investors. The investment programmes cover wide range of geographic locations and various types of financial instruments.

Chairman of the board of both companies Leonīds Kiļs expects the year 2012 to be positive for financial markets and looks forward to good results at the end of the year. “We plan an increase in both the number of customers and their activity, therefore the total amount of transactions is supposed to grow considerably. We will offer even broader access to financial markets and also optimal rates and charges for our customers,” — Leonīds Kiļs outlined the prospects.

ABLV Bank is the largest independent private bank in Latvia. The bank’s majority shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne — directly and indirectly hold 86% of the bank's share capital. ABLV Group includes ABLV Bank, AS; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; ABLV Transform Partnership, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.

Ilmars Jargans
Head of Public Relations Department
+ 371 6777 5296
ilmars.jargans@ablv.com