8 - 14 June 2000

Valletta Fund Management seeking alliances in Euro-Med

by Franco Aloisio

Five years after being set up, Valletta Fund Management is now seeking to internationalise its product base and is actively seeking alliances in the Euro-Mediterranean area, VFM general manager Charles Borg told The Malta Business Weekly.

VFM, a subsidiary of Bank of Valletta, was set up in 1995. Since then the company has managed a portfolio of 13 funds, and increased its client base to 25,000.

Mr Borg said the next step is the internationalisation of VFM. He said the company is planning to design a new product, which is not geared for the local market and which can be marketed abroad, possibly in the Euro-Mediterranean area.

"We are looking for an overseas distributor which can promote our product in foreign countries as a niche product," Mr Borg said.

VFM marketing manager Kenneth Farrugia added that such an innovative product is a further expansion of the services offered by VFM. He said the company will still be increasing its portfolio of local funds.

"Another development will be the increase in back office services which VFM can offer to third party fund management firms all around the world. Our fund management expertise and technology can be made use of by companies willing to do so," Mr Farrugia said.

VFM is already offering such a back office service. In fact it is administering a hedge fund, NC Metric, which does not belong to VFM.

On these past five years, VFM's general manager said: "In these last years we have built a very positive track record, and we are now in the process of launching new products abroad."

"This area of non-interest income is a growing sector and the Bank of Valletta Group has realised the potential of this market. This was reflected in the increased profitability of VFM and the Bancassurance," Mr Borg said.