High yield fund manager leads VFM seminar

Alex Moss, the La Valette High Yield Fund's Fund Manager at Insight Investment Management (Global) Limited, was guest speaker at a sales seminar hosted by Valletta Fund Management Limited (VFM) for Bank of Valletta employees.

Insight Investment Management, the investment arm of the Halifax Bank of Scotland Group, acts as the sub-investment manager for a range of VFM`s investment funds. Mr Moss presented an analysis of the global high yield bond market and the high yield investment process used at Insight Investment Management.

"During the past months, US economic concerns have fed through to European high yield market and as a result, the market has sold off through a combination of portfolio outflows, fund liquidations and bearish economic view," Mr Moss pointed out.

"However, significant out-performance has been seen from higher rated, short duration names and also from the Norwegian oil rig market which has been a significant performance differentiator since the start of the year."

Mr Moss said that as a result of the sell-off, attractive investment opportunities now exist, particularly at the shorter end of the curve.

"Going forward, the main focus will be on the liquidity levels of issuers and position in the capital structure as well as on the oil rig market which provides low correlation with high yield and equity, and strong security position, due to hard assets available."

As at April 16, the La Valette High Yield Fund registered an income yield of 6.3 per cent. VFM sales and marketing executive Grace Debono and VFM head Mark Vella also addressed the seminar.

These seminars are organised by VFM quarterly to keep the BoV licensed sales personnel abreast of the development in the local and international markets as well as on the performance of VFM's range of funds.