VFM offers reductions in up-front charges

Valletta Fund Management (VFM) last week announced that, up to November 15, those who repatriate monies under the Government's Investment Repatriation Scheme and invest them in VFM-managed funds will benefit from reductions in up-front charges.

This follows the reactivation of the Government repatriation scheme. Those who invest in VFM-managed foreign bond funds will benefit from a 30 per cent reduction, and those investing in equity funds from a 100 per cent reduction.

The foreign bond funds are the La Valette Sterling Income Fund, the La Valette Euro Income Fund and the La Valette Monthly Income Fund; the equity funds are the La Valette Malta Fund, the La Valette Capital Growth Fund, the La Valette European Opportunities Fund, the La Valette International Equity Fund, the La Valette Far East Opportunities Fund, the La Valette Mediterranean Rim Fund, the Vilhena Malta Fund, the Vilhena Top 100 Fund and the Wignacourt Malta Fund.

The Government's Investment Registration Scheme provides for Maltese residents who invested assets overseas without the necessary permits and had not paid the relevant taxes on such funds, an opportunity to regularise their position under the Exchange Control Act, the Income Tax Act and other fiscal laws by registering the eligible assets held outside Malta.

Speaking about this initiative, Charles Borg, general manager of Valletta Fund Management Limited, said: "Our proposal is actually providing applicants repatriating their overseas investments with the opportunity to participate in any of the above range of international and domestic funds at reduced up-front charges to make up in part for the government's fees applicable on repatriated investments.

"By investing the repatriated monies, investors will be regularising their position and at the same time benefit from the professional investment expertise of Insight Investment Management, one of the UK's largest investment management organisations."

Government last Wednesday confirmed that this is going to be the last chance for people to register their foreign assets before the Exchange of Information Directive comes into effect in January 2005.

"Naturally, investments should be based on the full details contained in the prospectus which is available on request and investors should only invest in those funds which are suitable for them after taking into account the different risk profiles of the funds", Mr Borg said.

Investors wishing to take advantage of this arrangement and for further information can contact VFM on Freephone 8007-2344 or e-mail infovfm@vfm.com.mt. Investors may also call at any branch of Bank of Valletta or a licensed financial intermediary.

US$ Bond Fund

VFM recently introduced the US Dollar Bond Fund, a sub-fund of the Insight Investment International Bond Funds Limited, which is advised by Insight Investment Management's Fixed Interest & Currency Group, one of the largest Fixed Interest teams in London.

Denominated in the US dollar and available from a low minimum investment of US$1,500, the US Dollar Bond Fund aims to secure long-term capital appreciation through investment in bond and money markets throughout the world. The primary criteria for the Fund's investments are safety of principal, liquidity and a level of return on investment that is in excess of the Merrill Lynch three to five-year (top tier) Eurodollar Bond Index.

Valletta Fund Management General Manager Charles Borg said: "The volatility experienced worldwide by equity markets over the past two and a half years represented a firm challenge to investors' confidence. In order to improve economic performance there was a decline in interest rates, particularly the US dollar rates currently at their lowest levels for the last 40 years.

"Moreover, this new investment opportunity further widens our product suite in line with our ongoing commitment to offer a more diversified investment solutions for all our existing and potential new clients."

The Fund was launched on December 9 1991 and as at June 30, its average annual performance rate over the last five years on an offer-to-bid basis was 6.6 per cent* per annum. Investors are reminded that past performance is not necessarily a guide to future performance and the value of the investment can go down as well as up.

Investors interested in this new fund may obtain further information from Valletta Fund Management on freephone 8007-2344 or call at any branch of Bank of Valletta or any licensed financial intermediaries.