Jersey opens up Central, Eastern European market

Jersey has boosted investor access to Central and Eastern Europe by granting permission for Austrian bank Raiffeisen Zentralbank (RZB) to distribute a number of its funds from the Island.

Seven Vienna-based funds, all of which meet UCITs III standard, will be managed by the investment management arm of RZB, Raiffeisen Capital Management (RCM), and will add €5bn to the total value of funds listed in Jersey.

The funds being distributed through the Island will include the Raiffesisen Eastern European Equities Fund; Raiffeisen Eurasia Equities Fund; Raiffeisen Eurovision Bonds Fund and Raiffeisen Euro Bonds Fund.

RZB’s new Jersey office, in particular the business development and marketing side, will be managed by Richard Buchanan, who has spent 30-years in the offshore industry with senior roles at Abbey International and the Royal Bank of Scotland Group.

Although Stephen Atherley, chief operating officer of the RZB London branch, will also provide the control framework for the Jersey office and will be responsible for the compliance, accounting and IT functions, having previously held senior risk and finance roles at both Abbey International and Mitsubishi Bank.

Buchanan says RZB’s decision to open an office on the Island and to list its funds will give Jersey-based advisers access to a range of investment opportunities in Central and Eastern Europe which are not that well represented locally.

As Wladimir Ledochowski, of RZB’s London branch, points out the Central and Eastern Europe region, which includes Russia, is considered one of the world’s foremost emerging markets, with the potential to offer investors outstanding returns.

Walter Rothensteiner, chief executive of RZB, says: “It is a logical step for RZB to establish an office in Jersey, where massive investment power is concentrated. Our unique banking network in Central and Eastern Europe gives us an outstanding knowledge of the investment opportunities available in the region.”

Source: ifaonline.co.uk