New fund services company set up

Bank of Valletta has announced the setting up of Valletta Fund Services Limited, a new subsidiary company servicing foreign funds domiciled in Malta.

During a press conference yesterday afternoon, BOV chairman Roderick Chalmers said the new company, which would take over all fund administration services from Valletta Fund Management Limited, was being set up to offer turnkey pre-registration assistance, fund accounting, registrar and transfer agency services and other peripheral services for new foreign funds which were choosing Malta as an advantageous financial services centre.

VFM, in turn, will continue to operate as a separate subsidiary company focusing entirely on product development and the marketing of its range of collective investment schemes.

Mr Chalmers said VFS would offer fund promoters fast, practical and innovative back office solutions, and the highest standards at all times.

"We see the funds administration business as having potential for being a fast growing sector in Malta - based on a value proposition that has regulatory responsiveness, cost-effectiveness and speed of service as its main drivers," Mr Chalmers said, adding that according to BOV's projections, the number of funds in Malta would keep on growing.

The new company will start to operate with 13 investment companies and 43 sub-funds which in total reflect over US$1 billion worth of assets under administration, and a shareholder base of just under 50,000 shareholders. Personnel employed with VFM to provide fund administration services will be redeployed at Valletta Fund Services on a full-time basis.

When asked whether new jobs would be generated with the setting up of the new company, Mr Chalmers said more human resources would definitely be needed as business increases.

Kenneth Farrugia, who has extensive experience in this area of business and who has, since January 2005, managed Valletta Fund Management Limited, was appointed general manager of the new company.

Subject to regulatory approval, Bank of Valletta will be appointing Peter Perotti as general manager of Valletta Fund Management Limited to take over from Kenneth Farrugia.