Long-term asset manager and active owner in listed Nordic companies
Industrivärden’s mission is to conduct long-term asset management that creates value through active ownership. The long-term goal is to increase net asset value and thereby generate a return for Industrivärden’s shareholders that exceeds the market cost of capital. Taking into account the risk profile of the portfolio’s investments, the shareholders are to be given a total return which over time is higher than the average for the Stockholm Stock Exchange.
Operations are built upon a structured process of continuous analysis and evaluation of existing portfolio companies and potential alternative investments. Active ownership is exercised primarily through involvement in nomination processes for board elections, through board representation, through evaluation of company boards, CEOs and executive managements, and by monitoring and – where necessary, through a company’s board – influencing the portfolio companies’ overall development. Through these measures Industrivärden contributes to the portfolio companies’ growth in value over time.
Industrivärden is a major investor in and active owner of Handelsbanken, Sandvik, Volvo, Essity, Skanska, Ericsson, SCA, ICA Gruppen, and SSAB.
To conduct long-term value-creating asset management through active ownership. This mission is based on Industrivärden’s relative strengths, including a long-term investment perspective, depth of knowledge and experience in active ownership, a strong position of influence, financial strength and an extensive network.
The long-term objective is to increase net asset value and thereby generate a return for Industrivärden’s shareholders that exceeds the market’s required rate of return. Taking into account the risk profile of the portfolio’s investments, the shareholders are to be given a total return which over time is higher than the average for the Stockholm Stock Exchange (Nasdaq Stockholm).
Industrivärden invests in listed Nordic companies with good return potential, where it can exercise active influence through a strong position of trust and ownership-based positions of influence. Industrivärden’s investment criteria are to invest in companies with proven business models and clear potential for profitable growth. Investments must also have an attractive valuation and provide a good balance of risk and return.
Active ownership in practice
Active ownership is exercised mainly through work on nominating committees, through board representation, and through dialog with and evaluations of boards, CEOs and company managements. A globalized and rapidly changing world puts great demands on companies to be focused, receptive and flexible. Salient trends in the operating environment such as disruptive technologies, digitalization, changing customer patterns and sustainability entail threats as well as opportunities. In this challenging reality it is a clear advantage for companies to have knowledgeable and engaged shareholders. Industrivärden monitors and carries on a dialog with its portfolio companies, and when necessary – through their boards – influences their overall development. In this way Industrivärden contributes to the portfolio companies’ growth in value over time.
In its role as active owner, Industrivärden provides:
- Long-term perspective with focus on competitive growth in value over time
- Knowledge and experience with bearing on the portfolio company, its competitors and its external operating environment
- Genuine involvement and the ability to evaluate, lend support and make clear demands
- Owner cooperation through discussions and consensus-building on key issues with other owners
- Resources in the form of financial strength and an extensive network
Total Return - Industrivärden shares
Industrivärden's entire operations are conducted at the headquarters in Stockholm, Sweden and involves about 20 employees.