Evli

Asset managers' results declined sharply during the first half of the year. However, underlying factors include challenges in the real estate market and a decline in performance fees, and the operational development shown below has been largely positive. The outlook for the sector is positive, and as long as geopolitical risks remain in the background, companies in the sector are poised for robust earnings growth in the second half of the year.

The early part of the year has been moderate for asset management companies. Although stock prices are near their all-time highs in many places and interest rates have been in clear decline, market sentiment has been cautious, especially due to geopolitical tensions. Companies in the sector describe the early-year sentiment as mostly expectant. At the same time, however, the general tone of the comments has been cautiously positive.

We still consider Evli a clear long-term winner in the sector, and the earnings growth outlook in the coming years remains good despite short-term market uncertainty.