Regardless of what may be going on in the market and the world, the demand for traditional brokerage and portfolio management is not going anywhere. The client-centered approach of Skanestas Investments, as well as their vibrant and dynamic team is part of what helps them stand out from competition, but is that all it took to bring them to where they are today?
Let’s take a deeper dive into the company’s formation, improvement and, of course, the milestones ahead.
With a cemented vision of business opportunity and operation on the EU and US stock markets, it was clear that Skanestas would be built upon and adhere to all regulatory standards. And what better hub for a connection to both the EU and US stock markets than Cyprus?
Ever since the company’s incorporation in 2013 it has grown rapidly, from as little as 4 employees to over 40 today. Additionally, the years 2020-2021 saw an impressive elevation in their research and development plans, which affected IT, R&D and Trading departments. Skanestas has transformed from a buy-side broker to a real asset manager, demonstrating the ability to adjust to market changes and follow strategic plans consistently.
Licensing & Company Development
Having received its license in October 2014, the company became fully operational by January of 2015. Moving forward, by early 2016, thanks to the dynamic inflow of customers the enterprise was already showing its first substantial results.
But where to go from here? Further growth of the company implied the necessity of using its own capital. Skanestas had their license extended in January 2019 by adding dealing on their own account. In April 2019 – Kirill Kuchinskiy joined the Board of Directors, also taking on the role as one of the company’s executive directors. In October 2019, he became the owner of Skanestas Investments.
In fact, it was under Kirill’s leadership that the company’s direction and goals were re-shaped, as the focus shifted from order execution to portfolio management and structured solutions, which are now its main offering.
These products, abiding to the principles of best execution, fairness, and transparency, were exactly what allowed the streaming of an additional flow of liquidity towards the company.
The company’s first and probably main focus at this point in time is portfolio management. Portfolio management is based on the profit-sharing model, where a scaled performance fee is charged on the profits, subject to a hurdle rate and a high watermark. The key advantages for the customers are, no doubt, the high watermark principle, absence of management fees, as well as no interim commission charging – only upon result.
Skanestas Investments have tailored different strategies under portfolio management to suit the needs of their clients, with each one allowing for varying levels of risk and return.
They have combined unique research with short-term momentum, mean reversion, trend following concepts with automatic order execution and risk procedures. Apart from well-known concepts, they utilise such signals as volatility breakout, reversal, factor timing, and more.
Discretionary portfolio management is their key product for future development.
Skanestas amid Market Volatility, Global Recession & Regulation
In the current macroeconomic situation with a tendency towards increasing interest rates and liquidity outflow, Skanestas does not see global factors for the long-term growth of markets with stable trends.
The volatility that will be present in the markets – is seen by the company as an opportunity. Having done thorough research and created strategies adaptive to market trends – they are ready to face the new reality head-on.
Same goes for regulation and compliance. When it comes to the retail sector, the common position of regulators is – complex financial products and services are not suitable for retail clients, meaning that non-qualified investors cannot afford losses or fully assess their risks.
Retail clients of Skanestas have access to non-complex products only, such as shares and bonds. This fundamental restriction helps them remain 100% compliant, while being on the cutting edge of regulatory innovation.
What Makes Skanestas Stand Out?
When it comes to trading, Skanestas uses a systematic approach to managing customer assets, applying several diversified strategies that allow them to get the returns on both the rise and the fall of the market.
They also take pride in their customer service and personalised solutions, which are made possible by a team of highly qualified specialists and customer-focused employees.
Skanestas future plans include the security and maintenance of the on-going financial viability of the company, as well as future developments, among which: listing the bonds of one of their affiliated companies, as well as expanding via a listed fund.
More milestones include largely switching to algorithmic trading by the end of 2022, as well as diversifying the markets they work with, from solely American to European and Asian, so as to grant their Portfolio Management clients a wider choice of trading instruments.