Valletta Fund Management and Rothschild Alliance To Extend Services Throughout Mediterranean Region

Mandy Robinson, Tax-news.com, London

26 January 2001

Valletta Fund Management (VFM) is planning to expand out of Malta and extend its operations to more countries in the Mediterranean region. According to the Malta Business Weekly, director of VFM, Robin Fuller, has said: '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. 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.'

Set up by the Bank of Valletta (BOV) and Rothschild Asset Management (RAM) six years ago with the opening of its SICAV fund, Valletta Fund Management was one of the first companies in Malta to provide local investors with investment vehicles. VFM's fund portfolio has now increased to 12 and the company also offers administration to third parties and to some Turkish funds as well.

Mr Fuller told the Malta Business Weekly: '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. Obviously, BOV have benefited from our experience in fund management. However, we have also learned from the banks' experience in other markets.'

When asked why Rothschild chose to enter a small market like Malta's, Mr Fuller responded: '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. 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 concluded that the investment climate in Malta is conducive to the jurisdiction becoming a major finance centre in the region: 'Malta can easily become a hub for investment services in the Mediterranean region. Malta provides a more strategic and attractive base for regional companies. 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 200.'

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