Parex Assets Management (PAM), an asset management company owned by Parex Bank, has established a subsidiary in Ukraine, Parex Asset Management Ukraine, to launch the fund management operations there by the end of the year

Parex Assets Management (PAM), an asset management company owned by Parex Bank, has established a subsidiary in Ukraine, Parex Asset Management Ukraine, to launch the fund management operations there by the end of the year. Parex Asset Management head Roberts Idelsons told BNS that PAM raised its share capital to 1.7 million lats (EUR 2.57 mln) in connection with establishing the subsidiary. He said the company invested 700,000 euros in the share capital of the Ukrainian subsidiary. Idelsons said the company in Ukraine will launch operations after it gets the license which might take place before the end of the year. PAM in Ukraine wants to deal with management of investment and pension funds. He said PAM decided to establish the subsidiary in Ukraine as part of implementation of its expansion strategy. Ukraine was chosen for the purpose as it has a prospective market, an ongoing pension reform, growing economy and developing a globally interesting market. “We want to build our base in Ukraine in due time”, he said. Asked about rivals Idelsons said there are some local companies in Ukraine but they are relatively small while no foreign companies companies are present there. He said PAM can cooperate with many partners in Ukraine, including companies, banks, insurance companies. At present PAM has operations in Moscow and Kiev and for the time being has no plans for further expansion.