The asset management landscape in the  CEE has been severely changed by the market crisis, says Krystyna Krzyzak

The asset management industry in central and eastern Europe (CEE) suffered colossal losses in 2008, with equity-oriented funds, especially those focusing on local markets, taking the biggest hit. Collectively, by mid-October, CEE equity markets had lost 60% of their value since the beginning of the year.

At Raiffeisen International, which manages €3.5bn of assets in the region, the worst performance was in Serbia, according to head of asset management Barbora Valkova. There equity funds account for 95% of mutual fund business, and the 75.2% year-to-early-December fall of the Belgrade Stock Exchange caused heavy outflows.

The best performance came from countries with the largest money market exposure such as Slovakia. "Assets of [local Raiffeisen subsidiary] Tatra Asset Management grew in line with the market by 10% until the third quarter of