Angry investors of La Valette Funds Sicav hurled insults at the fund’s directors during a rowdy annual general meeting last night, demanding responsibility for the losses they incurred.

The directors had to face the wrath of irate investors who demanded explanations over the La Valette Sicav Fund

The investors were so aggrieved and the meeting became so noisy that chairman Salvino Busuttil repeatedly threatened to suspend it, a declaration met with boos and more insults.

The directors had to face the wrath of irate investors who demanded explanations over the La Valette Multi Manager Property Fund that went belly up after it invested in high-risk sub funds that went bust. The fund was managed by Bank of Valletta and Valletta Fund Management, the bank’s investment arm. The bank suspended trading in the fund’s shares in August 2008, leaving investors high and dry.

Finco Trust Group managing director Paul Bonello, who has been representing aggrieved investors against BOV, put a series of questions to the directors, particularly Prof. Busuttil, “the only independent member”.

He accused the Sicav and VFM of having invested the money in property funds that had debt levels that were too high to cover the value of their assets. He also accused BOV of issuing “false” annual reports for four years in a row.

Applauded repeatedly, the vociferous investment adviser asked whether investors could have peace of mind that similar reports were not being issued on the other 12 funds managed by VFM.

Hurling insults such as “thieves” and “you cannot be trusted”, the investors rallied behind Mr Bonello, insisting on replies.

Mr Bonello asked if the directors had considered taking legal action against BOV, any director or against foreign fund manager, Insite Management, over the dismal investments. He also questioned whether the withdrawal of €16.2 million from the fund in 2008 had been investigated.

He said John Ripard, a former director of La Valette Funds, had disposed of his shares while in possession of sensitive information that was not available to the public. Mr Ripard, who is not a BOV board or management member, voluntarily tendered his resignation although BOV said he maintained his innocence.

Prof. Busuttil replied that the directors had met incessantly to take measures in favour of investors and said legal action was not being excluded. He noted such action would cost a lot of money.

One investor likened the property fund to the Costa Concordia cruise ship which sunk recently, saying the captain, in this case the directors, swam away to safety but the investors were left to drown.

The meeting ended with a secret ballot in which investors were asked to approve the accounts and the reappointment of PriceWaterhouseCoopers as auditors.

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