Valletta Fund Management Limited, part of the Bank of Valletta Group of Companies, yesterday launched the La Valette Multi Manager Property Fund.

Roderick Chalmers, BOV chairman, said at a press conference yesterday: "Through this new Fund, Valletta Fund Management is providing investors with the opportunity to diversify their traditional portfolios consisting of cash, bonds and equities to a new asset class, that of real estate property. Such an asset class is often considered as being less volatile than equities and bonds.

"In fact, real estate property does not necessarily react to economic or market conditions in the same way as do equities and bonds.

Suffice to say that the UK commercial property sector has outperformed both the FTSE All Share Index and gilts over a three, five and 10 year periods to July 31, 2005."

The fund will distribute income twice a year. During the launch offer period, which commences today and ends on October 20, investors may benefit from a reduction in the initial fee.

Valletta Fund Management has delegated the investment management function of this fund to Insight Investment who are among the leading property fund managers in the UK. Insight's multi-manager team will be responsible for managing the fund.

Toby Hayes, director at Insight Investment said: "Insight's multi manager investment team consists of skilled and committed investment professionals who use economics, qualitative research, detailed portfolio analysis and quantitative considerations to review the full spectrum of property funds available on the market and produce investment portfolios that are designed to reduce risk and optimise performance.

"Such methodology allows investors to benefit from a diversified portfolio of the best of breed property funds on the market thus providing investors with a key benefit - diversification - which ultimately is one of the most important investment strategies that will benefit the investor in the longer term."