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Rothschild to diversify its activities
through Valletta Fund Management
by David Kelleher
With its core market now well-developed, Valletta Fund Management
are planning to expand their activities to other countries in
the Mediterranean, VFM director Robin Fuller has said.
Speaking to The Malta Business Weekly, Mr Fuller, who is also
managing director of Rothschild Asset Management in Guernsey,
said that VFM had many plans in the pipeline that would help
to consolidate its core business and attract new investment.
“We have loads of plans which are we working on at the
moment. Our core market activities are doing well and it is
now time to diversify our activities,” Mr Fuller said.
“The local market is very important to us as well, but
we are seeing other possible ventures within the Mediterranean.
This year we will be building on our relationships with other
Mediterranean countries and also new ventures whereby we can
provide our services to third parties,” Mr Fuller added.
Valletta Fund Management was set up by Bank of Valletta and
Rothschild Asset Management in 1995. It was one of the first
companies in Malta to offer investment opportunities to local
investors. Its first SICAV was launched in October 1995. Over
the years, its fund portfolios have increased to 12, while VFM
offers third party fund administration, administration services
to third parties and similar services to Turkish funds.
The relationship between Bank of Valletta and Rothschild has
proved
to be extremely beneficial for both companies.
“RAM was interested in partnering Bank of Valletta because
we believed in their vision. Their experience and large customer
base were two important factors that allowed us to take a decision
to join,” Mr Fuller said.
He added that RAM’s main role in VFM is to provide fund
investment advice and investment advisory
solutions. “Obviously, BOV have benefited from our experience
in fund management. However, we have also learned from the banks’
experience in other markets,” Mr Fuller said.
Yet why would Rothschild want to enter such a small market?
“There is something special about small island economies.
Like Guernsey and Malta they have little natural resources,
so their efforts are concentrated on services. They are also
more geared towards saving,” Mr Fuller said.
“As regards Rothschild’s interests, RAM was more geared
towards the north of Europe and not to servicing the south.
Coming to Malta provided us with a much needed stepping stone,”
he said.
“Malta can easily become a hub for investment services
in the Mediterranean region. Malta provides a more strategic
and attractive base for regional companies,” he added.
Stock markets have gone up over the past five years, however
in 2000 it was evident that a slide was expected at any time.
In fact, tech stocks suffered most. Mr Fuller said that market
conditions do affect investors, however they are aware that
any investments can either go up or down.
“The slowdown that is expected in the US will obviously
affect investor confidence and market conditions. Rothschild
feels that there will be a soft landing in the States and that
the best performing assets will be equities. However, I don’t
think that people should expect double digit returns this year.
Returns will be more modest in 2001,” Mr Fuller explained
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