CEO’s review 2007–2017 briefly
Helsinki Capital Partners (HCP) is a Finnish asset management company that offers its services globally to private investors, institutions, professional athletes, and artists. The company has three funds, where the shareholders have invested their own money as well. HCP is known for active and responsible portfolio management. We are a modern asset manager thanks to our transparent operations, virtual working methods, and the various projects for societal well-being. HCP’s headquarters are located at the cultural centre Kaapelitehdas (Cable Factory) in Helsinki. HCP also has a mobile office, the #HCPSPIRIT tour bus.
#HCPSPIRIT is about our way of doing business, our leading idea. It can be seen in everything that we do, from fund management to societal work, and from our customer relationships to different kinds of collaborative projects with artists, athletes, and the third sector.
Celebrating ten years of business
The idea behind the foundation of HCP in 2007 was clear: a desire to be an open and honest asset manager. From the beginning, we have been committed to complete transparency in our operations. It is a self-evident fact for us that customers are told how much they pay both directly and indirectly to the company for our service.
Assets Under Management (mln €)
According to the typical norms in the industry, we should compare our growth to competitors that have been operating in Finland during the same time. Therefore, if we had gathered the most customer assets and made largest profits, we would be better than the others. Similarly, if we had made the least profit and gained least customers, we would be worse. However, HCP was founded exactly because we did not agree with the typical norms.
The past ten years through traditional indicators
Management Fee Structure € (‘000)
Management Fee Total (mln €)
We have made an intentional decision not to have hidden costs in our earnings logic. Thus, our own revenue from the managed customer funds will continue to be lower than in the industry in general. As regards customer acquisitions, we have also refrained from the very dubious industry standard of introducing new investment products continuously so that we could eliminate the worst ones every five years and only show the return history of the two winner funds.
What does it mean to us to have 947 customers, 79.5 million euros of customers’ assets (Dec 30, 2016), and a market value of 3.5 million euros (based on the share issue for operational shareholders in the autumn of 2016)? At least it means that we are a strong candidate to consider when customers are looking for the best asset manager for their money. As regards HCP, I can say that those who have financed the company for ten years have increased their money five-fold. It sounds like a lot, but this is 18% annually. For example, the return of the HCP Focus fund investing in established companies for the corresponding period was 9%.
HCP Group – Market Cap € (‘000)
The past ten years through new indicators
We have grown our business organically. From the beginning, we have built on a healthy value base. We have consciously chosen transparency and healthy incentives as our guideline. During the same period, the financial sector has been caught for several crimes and irregularities and has been fined soon over 300 billion dollars. HCP has never been detrimental to society. Today, we can proudly state that we already do many things that are socially beneficial. Indeed, continuous development of social responsibility has grown into our new strategic goal alongside increasing public awareness of the company.
HCP Group – Market Cap 3 497 000 €
The expenses of HCP cultural production was nearly 100,000 euros in 2016. This is ten per cent of HCP’s annual expenses. If already one large financial group supported cultural production with a corresponding percentage, it would mean more than 400 million euros annually. And what would this mean to Finnish society? At least a welcome stimulation! A vibrant and rich business environment might also attract modern companies from around the world to set up their offices here in Finland.
All owners of HCP, thank you very much for capitalising the company, and a special thank you to You who funded the company in the very beginning! The significance of each equity investment, issue, and loan is reflected in our financial statements for the first six years of operation. We needed all that capital to keep the business going.
At this point, I also want to thank all of our first customers: You who trusted us during the first years and were ready to see and hear what we were doing. No company founder forgets their first customers, as they will not forget their first business partners. Without You, dear customers, our journey would have come to an end before a proper start. Thank you.
Dividend per Share (€)
I can happily announce that now we all who work at the asset management company have ownership in the company! Our strategy is simple: we are an asset manager to be proud of.
In Helsinki, May 26th 2017
HELSINKI CAPITAL PARTNERS
Tommi Kemppainen, CEO
One of the founders