APS issues its own fund
APS Funds Sicav plc is launching its first fund on April 22, described by portfolio manager Sandro Baluci as a "plain vanilla" fund, compared to the more "exotic" flavours available on the market. APS Bank has been offering its clients investment...
APS Funds Sicav plc is launching its first fund on April 22, described by portfolio manager Sandro Baluci as a "plain vanilla" fund, compared to the more "exotic" flavours available on the market.
APS Bank has been offering its clients investment funds for some years but it was only natural that it would eventually offer its own.
"This fund is for home savers who want a low-to-medium risk investment opportunity, where their money is invested in things that they are familiar with.
"Up to 85 per cent of the fund is invested in Malta, making it a so-called prescribed fund which enjoys certain tax benefits compared with direct investments. Much of the investment is in sovereign and corporate bonds, and the advantage for the investor is that APS is in a better position to obtain a selection of these because the market is not very liquid.
"We are also entitled to invest no more than 25 per cent in local or foreign equities but at present the percentage will be much lower than that as we believe that the market is too volatile," he said.
APS Funds Sicav is a separate company to APS Bank but it has entrusted the bank with its investment management. The investment strategy is drawn up by an investments committee, which then entrusts the day-to-day operations to Mr Baluci and Joseph Xuereb. The fund will be listed on the Malta Stock Exchange. The fund has already received regulatory approval.
The company has two or three other products in the pipeline, chairman Mario Felice said.
"One idea is to come up with another fund in the near future, targeting a spread of investments across a diverse portfolio of projects dedicated to themes like ethical investments or the environment," Dr Felice explained.
"People will be able to save and contribute to the community at the same time."
He believes that this first fund stands out from the rest, in keeping with the bank's own approach. APS is not a big bank, so our approach has to be different. We have to come up with different products - like our A Plus Account, which is so flexible that it is more like an overdraft than a mortgage. The general approach of APS as a community bank continues to receive a positive response. We managed to increase our deposits from €168 million in 1998 to €579 million last year.
"When it came to this new fund, we kept in mind that many of the funds launched in the past few years for local investors are linked to assets that have volatile returns. These include funds investing in property, commodities and equities based on foreign markets.
"The past months have been difficult for investors as equities have plunged from their recent highs. In such turbulent times, investors generally prefer to secure their investments, thus indicating a preference for lower-risk investments.
"This is why we launched this fund. Plain vanilla? Yes, I like that description. That really describes what we are offering."
Key facts:
Minimum investment: €2,000, invrements of €100
Classes: Accumulator or distribution
Dividends: June 30 and December 31
Access: No lock-up periods
Initial Offer Period: Up to April 21
Further information is available from the prospectus and supplement which may be downloaded from www.apsbank.com.mt
APS Bank has been offering its clients investment funds for some years but it was only natural that it would eventually offer its own.
"This fund is for home savers who want a low-to-medium risk investment opportunity, where their money is invested in things that they are familiar with.
"Up to 85 per cent of the fund is invested in Malta, making it a so-called prescribed fund which enjoys certain tax benefits compared with direct investments. Much of the investment is in sovereign and corporate bonds, and the advantage for the investor is that APS is in a better position to obtain a selection of these because the market is not very liquid.
"We are also entitled to invest no more than 25 per cent in local or foreign equities but at present the percentage will be much lower than that as we believe that the market is too volatile," he said.
APS Funds Sicav is a separate company to APS Bank but it has entrusted the bank with its investment management. The investment strategy is drawn up by an investments committee, which then entrusts the day-to-day operations to Mr Baluci and Joseph Xuereb. The fund will be listed on the Malta Stock Exchange. The fund has already received regulatory approval.
The company has two or three other products in the pipeline, chairman Mario Felice said.
"One idea is to come up with another fund in the near future, targeting a spread of investments across a diverse portfolio of projects dedicated to themes like ethical investments or the environment," Dr Felice explained.
"People will be able to save and contribute to the community at the same time."
He believes that this first fund stands out from the rest, in keeping with the bank's own approach. APS is not a big bank, so our approach has to be different. We have to come up with different products - like our A Plus Account, which is so flexible that it is more like an overdraft than a mortgage. The general approach of APS as a community bank continues to receive a positive response. We managed to increase our deposits from €168 million in 1998 to €579 million last year.
"When it came to this new fund, we kept in mind that many of the funds launched in the past few years for local investors are linked to assets that have volatile returns. These include funds investing in property, commodities and equities based on foreign markets.
"The past months have been difficult for investors as equities have plunged from their recent highs. In such turbulent times, investors generally prefer to secure their investments, thus indicating a preference for lower-risk investments.
"This is why we launched this fund. Plain vanilla? Yes, I like that description. That really describes what we are offering."
Key facts:
Minimum investment: €2,000, invrements of €100
Classes: Accumulator or distribution
Dividends: June 30 and December 31
Access: No lock-up periods
Initial Offer Period: Up to April 21
Further information is available from the prospectus and supplement which may be downloaded from www.apsbank.com.mt