Citadele Bank

Citadele Asset Management Concludes Agreement With Latvian Guarantee Agency on Management of Investment Portfolio

Published on

Citadele Asset Management, which is a subsidiary of the Citadele Bank, has won a bid for tenders to become the new manager of investments made by the Latvian Guarantee Agency (LGA). The two companies signed a partnership agreement on 25th February, and it speaks to the management of an investment portfolio worth more than LVL 100 million until the year 2018.

“Our job in managing the LGA investments will be to make sure that the returns on the investments are as high as possible and that we make use of a conservative investment strategy so as to provide more financing for Latvian companies,” says Citadele Asset Management board chairman Uldis Upenieks. “We are proud about the fact that we will be able to manage this investment portfolio, because this will help us to warm up Latvia’s economy and to increase financing for the development of Latvian companies.”

The director of the LGA, Ivars Golsts: “We chose Citadele Asset Management after evaluating its previous results, the experience and qualifications of its employees, and the experience of the company in managing similar portfolios. Citadele Asset Management has received several very high ratings from international observers in terms of its management of profitable and stable investments. The offer made by the company was the most advantageous one in economic terms, and that determined our choice in terms of increasing the amount of money which Latvian companies can receive from the Latvian Guarantee Agency’s support programmes.”

Financing from the LGA is based on the purchase of Latvian government securities before it is offered as guarantees for companies via various support programmes. The securities are bought by making use of investment management services that are provided by investment management companies. A skilful management of the securities leads to a higher value therein, thus increasing the amount of money which Latvian companies can receive from LGA support programmes.

Citadele Asset Management received the highest possible number of points in the bid for tenders. Five companies took part in the process. The main criteria in making the choice included the company’s previous results, the experience and qualifications of employees, and the experience of the company in managing similar portfolios.

Among the international ratings which Citadele Asset Management has received include the 2012 award for the best and most stable relationship between profitability and risk over a three-year period in the area of obligations from developing European countries from the international investment fund information and research company Lipper. This applied to Citadele’s USD-denominated Eastern European Obligation Fund. The international financial research company Morningstar, in turn, gave the highest five-star rating to the same fund, as well as a four-star rating to Citadele’s Russian Stock Fund. The world’s leading financial magazine, World Finance, declared Citadele Asset Management to be the best investment management company in the Baltic States in 2012.

About Citadele Asset Management

Citadele Asset Management is a subsidiary of the Citadele Bank and one of the leading investment management companies in the Baltic States. Citadele Asset Management offers asset management services for local and international clients – individuals, corporate clients, investment funds, second and third-level pension plans, and insurance companies. Investment funds have been registered for public distribution in the Baltic States, Sweden, Switzerland and Germany.

About Latvian Guarantee Agency

SIA Latvian Guarantee Agency is a full-spectrum developmental financing institution, helping businesses to attract finances when there are insufficient guarantees, also offering mezzanine loans to expand existing operations, insurance for export transaction risks, as well as risk capital financing.

Recent press releases

All press releases