Citadele Asset Management IPAS, a subsidiary of Citadele Bank and one of the leading investment management companies in the Baltic States, has now become the first company in Latvia to be licensed by the Finance and Capital Markets Commission (FKTK) as a manager of alternative investment funds.
“We are delighted that it was Citadele Asset Management to be the first to receive this license in Latvia, because this indicates the quality of the services that we offer,” says Citadele Asset Management board chairman Uldis Upenieks.
Previously, no special license was needed to manage alternative investment funds, but last year, in accordance with directives of European Parliament and Council, the government approved a new law on alternative investment funds and their managers, stating regulatory requirements for all companies involved in the process, including licensing obligations.
Alternative investment funds invest not just in liquid financial instruments such as stocks and debt obligations, but also in derivatives such as raw materials, currencies, hedge funds, real estate and risk capital. Such funds face no legal limitations in terms of their investment destinations and the scope of investments in a single area, but there are specific requirements about information transparency as well as risk management obligations.
As had been reported in the past, Citadele Asset Management IPAS has received a series of international awards in the area of fund management. Late last year, Morningstar Inc., a leading provider of independent investment research, awarded its top Five-star rating to Citadele Russian Equity Fund. Also, Lipper, investment fund information and research company, declared it to be the best fund related to Russian stocks in Europe from a three-year perspective.