Building on strong foundations | Nick Calamatta

Who founded the company?

"Calamatta Cuschieri was formed in 1972 when my father, Alfred Calamatta started off a small firm then called A. Calamatta & Partners. From a family concern, today the group consisting of three companies offers a variety of services to retail and institutional clients and employs 30 people."

How did the Calamatta Cushcieri, partnership come about?

"As the family concern started to grow, in 1992 my father asked Alex Cuschieri to join his partnership and the firm was reorganised and renamed  Calamatta Cuschieri & Co. Ltd. This was an important factor to the firm's growth."

Did you take over your father's business?

I joined the firm in 2005 after completing University in the UK, together with my fellow director Alan Cuschieri.  Both still young and enthusiastic to expand the company, we immediately went about building upon our fathers' successes and injecting new ideas into the firm. This has led to a lot of investment and innovation that today puts Calamatta Cuschieri at the forefront of the industry in terms of our services, IT systems, software and personnel. All this was achieved thanks to the great firm that my father - alongside his fellow directors Alex Cuschieri and Christopher Saliba - helped build over the years.

"My father Alfred retired in 2008 after having been in the stock broking business for 40 years. Today, Alex Cuschieri, Chris Saliba and Alan Cuschieri and myself make up the firm's board of directors."

Has the current economic climate affected appetite for stock market investment?

"The world economy and the economic climate never move in one direction for long, however yes, it is a reality that the past four years have been very hard on the markets and economies. These effects of the global markets were however offset by the considerable growth of the industry in Malta,  which has grown considerably.

"Another factor that has enhanced growth is that the public is far more knowledgeable today when it comes to investing than they were, let's say, five years ago. The internet has also played a massive role in informing the public on investments, together with business-oriented information wired through the media.

"Furthermore, the use of online accounts has helped the clients follow their investments much more closely too.

"Therefore, I would say that yes, the economic climate definitely affects the appetite for stock market investment, but this is being compensated by a new breed of a more informed and knowledgeable public."

Have you seen an increase in retirement plans since from the looks of things, our generation might not even be eligible to a pension by the time we're 65?

"With the standard of living increasing alongside the cost of living, we believe that putting something aside for your retirement is fundamental. Maltese have a quite a high tendency of doing just that. Saving for the future does not have to be in the shape of a 'retirement' product. Investing in stocks, bonds or funds are all valid vehicles to end up with a nest egg to help you maintain your standard of living once you retire.

"Retirement products will start to make sense only when pension reform is finally agreed upon. A tax incentive for a voluntary pension will further encourage the Maltese population to put some money aside for their retirement. Unfortunately, this reform hasn't come into force yet."

Do financial services' firms in Malta attract foreign business?

"We believe that Malta is finally on the map as an alternative investment jurisdiction. Being a member of the EU, having a stable well-regulated environment and having a skilled workforce providing services at better rates than more expensive jurisdictions, are definitely factors that are helping to attract foreign funds to Malta. We believe this trend is set to continue and it is for this reason that the firm has invested heavily in human resources and technology to service this growing industry in the investment management and fund administration services."

How have you expanded the business from its core service as a stock broking firm?

"Although our stock broking business remains our core business, today our firm provides various services. These include treasury services for institutional clients, investment management and  fund administration services for foreign funds, discretionary mandates for corporate and high net worth individuals and fund administration services. Another service we recently launched is online trading."

Has the company's online trading platform made things easier for clients?

"Our online service known as 'CC Webtrader' has revolutionised the way our clients interact with our firm. The service allows clients to trade thousands of stocks, bonds and funds with a simple click of a button. Full automation means that clients are kept informed in real time - with access to their portfolio, statements, and statistics - at any time of day or night. Besides, such a proprietary online trading system is a first for Malta."

Last year saw another first for your firm when you launched your own retail investment fund (SICAV).How does this fit with the other services you offer?

"The SICAV or retail investment fund is another important product being offered that has been in the works for a number of years.

"Through our fund investors, we are able to draw on the experience of Calamatta Cuschieri and our dedicated investment managers who oversee the investment process on a daily basis to achieve better returns for the unit holders of the fund.

"The fund also gives access to smaller investors to a well-diversified portfolio of high yielding corporate and sovereign bonds, which would be impossible to achieve individually."

 How do your company's services differ from other financial service providers, and banks?

"Today, Calamatta Cuschieri is well equipped to provide a specialised service that is able to match any other provider. We constantly aim to improve and tweak our services and we commit ourselves to further invest in the firm to make sure we achieve our goals.

"We are different from bigger banks and providers since our service is truly personal. We have invested in our dedicated personnel who are the driving force of our company."

Any signs of the eurozone stabilising sometime soon?

"We are currently seeing the first signs of economic stability which is due to the work that has been done since this current eurozone crisis came into focus.

"Needless to say that the actual crisis had been brewing for some time, however eurozone  policy makers started evaluating the perilous state of governments' finances once it became apparent in mid-2011 that Greece could not pay back all its debt.

"The ECB and the IMF have contributed many funds in order to restore liquidity in the banking sector and confidence to the market.

"Putting strong demands on the conditions of the bailout funds given to Greece is also another important element in solving this current crisis. It will take years however to put new fiscal union laws into force and it is hard to say if one of the affected countries such as Portugal, Spain, Italy or Greece will improve their current economic affairs or will further falter in the near future.

"This crisis is far from over; however there is more stability today mostly due to the coherent action from the European Union governments."