Elite Asset Management Plc, Company Announcement, 2 November 2017, 9:50 a.m. (EET)
The fund management agreements between Elite Asset Management Plc's (Elite) subsidiary Elite Fund Administration Ltd and Aalto Bankers Ltd will be revoked and the clients will be transferred to Elite
Elite Asset Management Plc ("Elite") and its subsidiary Elite Fund Administration Ltd have agreed on an arrangement by which the fund management agreements of Aalto Balanced UCITS Fund and Aalto Cautious UCITS Fund ("Aalto funds") as well as the distribution agreement of UCITS AJ Elite Value Hedge fund will be revoked. The portfolio management and the clients of Aalto funds will be transferred to Elite, and the funds will continue operating normally. Elite Fund Administration Ltd has been managing the Aalto funds as a fund company since 2011, and Aalto Bankers Ltd has been operating as an external portfolio manager of the funds and sold the funds to its customers.
The arrangement relates to Aalto Bankers Ltd's decision according to which it shall reduce its investment services offered to non-professional investors. The Elite Group companies and Aalto Bankers Ltd have agreed on an overall arrangement by which Elite Group will receive the non-professional investment and insurance customers transferred from Aalto Bankers Ltd. For the sake of clarity, it has to be noted that the customers to be transferred have been clients of Elite Group already before the arrangement, as Elite Fund Administration Ltd manages both Aalto funds and UCITS AJ Elite Value Hedge fund.
The arrangement will not increase Elite Group's assets under management and it is not expected to have a significant impact on Elite's 2017 financial result. In 2018, the arrangement is estimated to improve Elite Group's operating profit before depreciation and amortization with approximately 0.1 million euros.
ELITE ASSET MANAGEMENT PLC
Board of Directors
Further information:
Elite Asset Management Plc
Daniel Pasternack, CEO
+358 50 569 3416
daniel.pasternack@elitevarainhoito.fi
Kari Juurakko, Chairman of the Board
+358 50 582 7411
kari.juurakko@elitevarainhoito.fi
Certified Advisor Merasco Oy
Telephone: +358 9 6129 670
Elite Asset Management Plc is a profitable and growing investment service company offering versatile and high-quality asset management services for both consumer and professional investors. Elite Asset Management Plc is listed on the First North Finland market maintained by NASDAQ Helsinki (Helsinki Exchanges). Elite Asset Management Plc is the parent company of the Elite Group (Elite). Elite's customer base consists of individuals and corporations that the company serves nationwide in 15 different locations. The first company belonging to the current Elite Group was founded in 2000. Elite employs 105 investment professionals and over 40 tied agents. On behalf of its clients, the company manages assets of approximately EUR 3 billion in total. Check out Elite's services at www.elitevarainhoito.fi.
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