NLB Skladi: In 2019 we have the highest expectations for last year’s ugly duckling – Europe

18 January 2019

According to the analysts of NLB Skladi, 2019 is expected to yield above-average returns and still remain a highly volatile year. Return on global stocks is expected to reach above-average 11%. 

2018 was a year of consolidation in the asset management industry

“2018 was a year of consolidation in our line of business,” said Kruno Abramovič, CEO of NLB Skladi. Several M&A’s were carried out in the asset management industry. “Despite the current consolidation we expect that one or two new asset management companies will be founded in the midterm,” added Abramovič. After several years, NLB Skladi introduced two new subfunds in 2018; NLB Skladi – Finance equity fund and NLB Skladi – Socially Responsible equity fund, and increased the number of its employees by 10%. In 2018 there was also a change in the Management Board with Blaž Bračič appointed as a Board member.

Sales results very good in the given situation

“In 2018 NLB Skladi recorded exceptional sales results in the given situation,” said Blaž Bračič, Management Board member of NLB Skladi. While our competitors witnessed net outflows, NLB Skladi received net inflows of EUR 54.8 million.

“We are especially happy of the success we achieved in the sale of gradual saving schemes. 16,318 saving schemes were concluded in 2018, which is a record high. This would be impossible to achieve without a highly committed and professional retail network in NLB d.d.,” added Bračič.   

Recession is not knocking at our door yet, in 2019 stock exchanges are going to reward bold investors

After several years of lowering their expectations for equity investment yields, NLB Skladi is again forecasting a better, yet still volatile year. The return of global stocks in 2019 will in their view amount to around 11%, which is slightly above the historical average. 

“Media scare spooked the investors last year. A great deal of fear and lowered expectations with investors speak in favour of a greater possibility for a positive surprise,” said Marko Bombač, Head of Analyses at NLB Skladi. After the correction last year valuations have improved considerably. They are below average today with the exception of the U.S., especially when coupled with valuation of safe investments. “With deposits and secure bonds investors are almost certainly bound to experience negative returns in real terms this year as well,” explained Bombač.    

We have the highest expectations for last year’s ugly duckling – Europe

“In the second half of last year the European economy did if fact cool down, but pessimism would nevertheless be exaggerated. Optimistic consumers and less thrifty countries will offer support to the European economy this year. We will continue to share the same roof with the British in one way or another, as we do not expect a hard Brexit. The risks in Italy, political ones and those pertaining to the banking black hole, are calming down,” summed up Bombač.

NLB Skladi, Asset Management Company, is a member of the NLB Group, 100% owned by Nova Ljubljanska banka d.d., Ljubljana. In addition to NLB Skladi, investment coupons of investment funds are also marketed and sold by NLB d.d.

NLB Communications