5 - 11 July 2001

VFM targets investors from the Mediterranean

by Ivan Brincat

Valletta Fund Management wants to start targeting investors from the Mediterranean region, offer administration services from Malta to third parties and also to increase the distribution network of its funds. Kenneth Farrugia, the assistant general manager of Valletta Fund Management told The Malta Business Weekly that an important part of the expansion process was now that of targeting investors from the Mediterranean region.
“We have to develop our distribution strategies now. We have built solid foundations by focusing on the domestic market. We now offer a range of funds which are global, regional and local and these include bonds and equities.
Mr Farrugia said VFM is the largest fund manager in Malta and now wants to grow further by expanding its operations internationally. “Our strategy is to increase the spread of our funds in Malta and to structure new innovative funds that meet the needs of international investors. We can also offer administration services from Malta to third parties” he said.
In this field, for example, VFM already manages the Funds of the Global Funds SICAV plc and administers the newly set up Gasan Funds.
On the international side, Valletta Fund Management is also finalising arrangements to provide administration services to a Swiss financial services organisation.
“It is Valletta Fund Management’s intention to increase its efforts in exporting its services in this field,” he said. “However, it was very important for the com-pany to develop solid domestic foundations before embarking on our expansion abroad,” he told The Malta Business Weekly. The company is now managing and administering 20 funds in all and he
said this was necessary before it started to tap into international markets.
Alex Illingworth, investment manager for Rothschild Asset Management Ltd said that Malta is strategically placed in the Mediterranean region among a number of fast growing stock exchanges in North Africa and the Middle East which have a long history.
For example the Bourse of Cairo is one of the oldest stock exchanges in the world. They have created alliances and are moving forward. He said the idea of the Malta Stock Exchange to link to a number of international stock exchanges in the Mediterranean region was a step in the right direction.
Mr Illingworth said countries in North Africa are quite different from other emerging countries such as the former communist countries. Many of the emerging Mediterranean rim countries had long established stock exchanges and capital markets.
These markets are enjoying a revival. Typically, these countries have a growing middle class and professional class who are both entrepreneurs and investors in their capital markets.