Suprema enters Latvian market

The Scandinavian asset manager Suprema finally entered the Latvian market when the country's financial supervision body, the Finance and Capital Market Commission council, issued a license to a new investment company on Jan. 31.

Suprema, the well-known investment manager that will own the new investment fund, said it believed the license would enable the new company, Suprema Fondi, to strengthen its positions on the Latvian asset management market.

"In addition to existing services meant for institutional clients this year we plan to begin offering individual clients the service of managing assets under the state funded pension scheme," said Roberts Idelsons, director of Suprema.

Idelsons said Suprema decided to try its hand in managing the state-funded pension assets since its owner, Scandinavian investment bank Evli, is doing well in this sphere in Sweden.

Finland-based Evli bought Suprema Securities, the largest investment bank in the Baltics, for an undisclosed price last October.

Suprema expects to receive FCMC permission to enter the second tier of Latvia's pension system in the nearest future so that it can offer as many as three pension plans already this March or April.

Idelsons said Suprema Fondi will be different from similar funds operating in Latvia in that the company would be able to place assets outside Latvia with greater efficiency due to cooperation with Evli.

"Through use of Evli group technologies and experience accumulated on the Scandinavian pension market Suprema Fondi is well-positioned for provision of new services to clients in Latvia," said Suprema's director.

In the second half of this year Suprema will also start offering Latvians units in Scandinavian investment funds managed by Evli, he added.

The Evli investment group has over 2.5 billion euros under management. At present Suprema is the largest pension fund manager in the Baltics, managing assets of over 10 million lats (15.89 million euros).

Apart from asset management, Suprema also offers brokerage and corporate finance services to both local and international clients.

Latvia has a total of six investment companies offering investment in 13 various investment funds. Five investment companies have been licensed to manages assets of the state funded pension scheme.