VFM launches AquaEnergy Fund

Valletta Fund Management has launched the Wignacourt Capital Guaranteed AquaEnergy Fund, a six-year investment opportunity denominated in euro, giving investors the opportunity to participate in a basket of 18 companies operating in the renewable energy and water sector such as Solarworld AG, Archer-Daniels-Midland Co., Kurita Water Industries Ltd and Veolia Environment.

The fund is 100 per cent capital guaranteed and aims to deliver a fixed return of 6 per cent at the end of the first year and a potential basket return yearly thereafter linked to the performance of the basket of 18 stocks. With the exception of the first observation date, the basket return shall be determined at each observation date and shall be equal to the average growth of the 13 best performing stocks that comprise the basket individually capped at 10 per cent and the five least performing stocks which will be enhanced by an additional 10 per cent while individually capped at 10 per cent.

The fund will be distributing the fixed return and the basket return by not later than two months from the relevant observation date, VFM said in a statement.

The offer period closes on August 2 at noon unless the offer period is closed earlier by the manager. The fund will commence trading on August 5 and offers full capital guarantee of the original amount if held until termination date on August 5, 2014. For further information one may contact VFM on freephone number 8007 2344 or via the website www.vfm.com.mt, any Bank of Valletta branch or a licensed financial intermediary.