Extension of VFM’s monthly investment plan offering announced

Valletta Fund Management Limited announced is now providing investors the opportunity of investing in the La Valette High Yield Fund and the Vilhena Mediterranean Rim Fund through a monthly investment plan. VFM currently offers MIPs across 18 underlying funds and the addition of these two new funds has widened the selection of different objectives, asset classes and geographical allocations which an investor can choose when taking out a VFM monthly investment plan.

Clients can start an MIP with as little as €50 per month and choose an underlying fund or a selection of underlying funds, subject to the minimum investment amount, which suit the risk profile and the long-term investment objective of the individual investor.

A spokesman for VFM explained the rationale behind the decision to introduce an MIP for these two funds. The high yield bond market has grown rapidly in recent years, particularly as securities available in this market meet the needs of those investors seeking higher income paying investments.

A high yield bond has a lower credit rating than investment-grade corporate bonds because of the higher risk of default and consequently these bonds pay a higher yield than investment grade bonds. From as little as €50 per month in the La Valette High Yield Bond Fund, investors will gain access to a diversified portfolio of high yield bonds professionally managed by Insight investments Global Limited.

On the other hand, the Vilhena Mediterranean Rim Fund, which is denominated in US dollars, aims to maximise the level of total return to investors over the longer term, while minimising the volatility of the portfolio, by investing in a selection of equity and fixed income securities, of issuers in countries geographically located in the Mediterranean region but excluding the developed markets of Portugal, Spain, France, Italy and Greece.

Emerging market growth is affecting the global economy positively and bringing new opportunities to investors. In actual fact in 2010, Gross Domestic Product growth rates for emerging and developing markets were higher than those of developed markets and the growth trend is expected to continue at a 6.62 per cent rate from 2011 to 2016, which is more than double the 2.46 per cent projected growth for developed markets.