Social Intangible Capital Fund Earned 8% Return on Investment in Q1 | Business

“We made our first investments back in December 2023, so far we have only invested a little more than half of the total capital, and we have allocated only 11% of the available funds directly to the stock markets. The received investment return amounts to more than 40 thousand. EUR value increase or the 5th week of operation of “Sidabrinės linijas”, – Marius Čiuželis, its manager, was happy with the results of the fund.

The fund invested an additional 18% in a short-term medical equipment acquisition financing deal with a well-defined yield and made two long-term but liquid investments in alternative investments and exchange-traded funds, which gave as much as 53% positive and 13% negative returns, respectively.

“While discussing possible investment directions at the Investment Board, we had foreseen that one of the target areas would be the long-term bonds of the governments of the countries of the European Union. However, their price has not yet reached our desired level. As long as inflation and geopolitics do not allow us to sleep peacefully, we are patiently waiting for a new jump in bond yields, and at the same time for a drop in prices to an attractive level for investments,” continued board member Ramunė Vilija Zabulienė.

The team of the M. Čiuželis Charity and Support Fund has been preparing for the management of intangible capital for several years. After Russia attacked Ukraine, many investors had to postpone the start of their activities as they directed their support to Ukraine. This period, rich in economic and geopolitical events, made it possible to test the investment strategy under extreme conditions, to check the selected investment managers and the ability of the funds managed by them to adapt to the rapidly changing situation. During the 25-month testing period, we managed to achieve a capital gain of almost 70%, which is as much as 28% in annual interest.

The fund started intangible capital management after accumulating 500 thousand. initial capital of EUR. During the quarter, 34 thousand were additionally attracted. EUR support, and the value of the investment portfolio at the end of March reached 573 thousand. euros. “We plan that the return on investment of intangible capital from the first year of operation will ensure at least 10% of the annual operating budget of “Sidabrinės linijas”. This year, we expect to achieve a double-digit return on investment, and the positive results of the first quarter bring this goal even closer,” M. Čiuželis shared his plans.

The fund’s intangible capital started its activity by gathering the support of 13 investors and philanthropists not related to the fund. Real estate management company Vilniaus Sigma was the first to join, then Regimantas Buožius, chairman of the board of ACC Distribution, a company belonging to the ACME group, with his wife Rasa, Aurelijus Rusteika, founder and shareholder of Topo group, Mantas Mikuckas, co-founder of Vinted, and vice president of payments. Modestas Tursa, chairman of the board of construction company “Veikmė” Kęstutis Maksimavičius, lawyer of “Motieka ir Audzevičius” law firm Justinas Jarusevičius, founder of “Lima investicijos” Romas Jurevičius, as well as the virtual economy marketplace “Eldorado Market”, the community of European business clubs and other small investors . People who support and help realize the idea of ​​positive aging.