Slovenian investment management company, KD Investments, expanded its distribution network, which currently comprises Banca Romana de Dezvoltare, Banca Carpatica and the brokerage companies KD Capital Management and Egnatia Securities.
Initially, KD Investments had relied on the development of its own fund distribution network, but over the latter part of the year signed distribution contracts with the two banks. Cosmin Paunescu, head of KD Investments, says he will also try to use KD Life, the group's life insurance company, to attract clients for funds.
KD Investments started launching some "financial centres" or KD centres in mid 2005, where investors can obtain information related to investment opportunities, by officially opening such a centre in Bucharest.
In these centres, clients could have bought both KD Investments funds and funds of other management companies.
As of July 2005, KD has not opened any other financial centres, but instead signed distribution contracts with BRD, Banca Carpatica, SSIF KD Capital Management and SSIF Egnatia Securities, in the middle of this year.
"Although the collaboration with these financial institutions entails an additional cost, we already charge a subscription commission, mainly dedicated to distributors. Instead, we do not charge any withdrawal commission," says Cosmin Paunescu, general manager with KD Investments Romania. KD has not given up to its strategy to sell foreign funds, which are unavailable to local investors.
The company will start by distributing KD Investments' funds both directly and through the Multifond fund.
"To begin with the fund will focus on equity and diversified funds. As of next year we intend to distribute funds managed by KD group as well," says Cosmin Paunescu, referring to Multifond's investment strategy.
KD Investments representative hopes
