The history of pushing expensive and risky products to inexperienced investors is catching up with the current Alexandria… This publicity will certainly not increase the number of wealth management clients. It’s great that Fiva is finally acting: it has taken 4 years to get a decision out, and on top of that, there will be many years of legal process and publicity. As Alexandria, I wouldn’t appeal, but would pay, state that “processes have changed,” and try to put it behind.
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Here are Sale’s comments regarding the million-euro penalty payment received by Alexandria.
The Financial Supervisory Authority announced yesterday that it has imposed a total penalty payment of EUR 1 million on Alexandria. The penalty payment is due to negligence concerning 1) information to be acquired from the client for investment advice, 2) the retention of such information, and 3) the organization of the internal control system. The negligence concerns the periods 1 March 2021–30 September 2021 and 11 May 2021–30 September 2021. The negligence came to light in an inspection conducted in 2021-2022. The decision in its entirety can be read here.
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The product is relatively new to me, so I might be writing nonsense.
Isn’t the return for many structured products greater the closer to maturity the index rises to 0 or above it? Many still have a fairly good safety margin, in which case the return is still, for example, 50% of the maximum.
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Sales anticipates, as Alexandria reports its H1 results on Thursday. 
Alexandria will report its results on Thursday at 08:00, and we expect a good performance from the company. We consider the positive development of the asset management service to be the most important thing in the early part of the year, and in our view, asset management has finally gained momentum. The launch of the real estate fund is also of interest, as it is a key growth driver for the company in the coming years, alongside asset management.
Sale interviewed Alexandria’s CEO Jan Åkesson regarding H1.
Topics:
00:00 Introduction
00:14 H1 summary
01:10 Wealth management services
04:29 New real estate fund
05:49 Profitability
07:08 Outlook
08:22 Financial Supervisory Authority’s penalty payment
10:15 CEO’s message to concerned investors
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Sauli has diligently prepared another report after H1.
Alexandria’s H1 report did not contain major surprises, and forecast changes have remained minor. The company still has good opportunities to continue earnings growth in the coming years, but the slope of earnings growth remains a question mark. The recent sharp decline in the share price has raised the valuation level to neutral, and in our opinion, for the share price rally to continue, faster earnings growth than current forecasts is required. We revise our target price to 11.0 euros (previously 10.5e) and lower our recommendation to reduce (previously add).
Quoted from the report:
Real estate fund is coming during H2’25
The company stated in its earnings info that demand for the new real estate fund has developed well, and the company aims to launch it during H2’25. As we have previously stated, we consider the new real estate fund a strategically significant opening, as it would expand the company’s offering to closed-end funds. Furthermore, the target group for the fund is institutions, which emphasizes the strategic importance of the fund.
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That financing part was interesting.
For me, the most interesting presentation was Alexandria - From Product House to Wealth Manager
I know the company has a reputation as a black sheep. But if the main criticisms are aggressive sales and expensive products, which are known and managed, it becomes more a matter of taste how much one lets these prevent seeing the investment case.
Focusing on the “mid-market,” i.e., clients with <500k EUR NAV, is a brilliant move in my opinion; an underserved and cash-heavy volume segment. A clear focus is good.
Aktia’s interim CEO spoke about how they are starting to extract more fees from current clients by layering the fee structure. Is this now the more elegant way of operating?
Mandatum was certainly the king of the session, but nothing new came out, e.g., for the CMD.
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There was a more extensive article about structured products in the latest Viisas Raha. I don’t know if it’s a commercial collaboration or what, but in my opinion, it describes the functioning and market of structured products very well. When discussing with investors at regular intervals, I notice that there are significant misunderstandings associated with these.
Here’s also a related Inderespodi from a couple of years ago: Mikä on strukturoitu sijoitustuote? Vieraana Ville Hellens | inderesPodi 174 - Inderes
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“Alexandria Group’s Board of Directors has decided on a share issue in which the company offers a preliminary total of a maximum of 225,000 new shares for subscription by the personnel and management of the company and its subsidiaries, deviating from the shareholders’ pre-emptive right to subscribe.\n\nThe company’s tied agents and members of the Board of Directors can also participate in the personnel issue. In the event of possible oversubscription, the Board of Directors may decide to increase the number of shares to a total maximum of 450,000 shares.”\n\nAlexandria järjestää henkilöstöannin | Kauppalehti
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Sauli, a diligent analyst, has prepared a company report on Alexandria in the evenings as a side project.
The company’s year-end has been mixed: Sales of structured products have performed very well, but fund sales have been unacceptably weak. The development of asset management sales will ultimately determine H2 success. Our forecasts contain only minor negative changes, and consequently, we revise our target price to 10.5 euros (previously 11.0e). Due to the share price decline, the stock’s valuation picture has improved again, and we are raising our recommendation to Add (previously Reduce).
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