Nine investors in the La Valette Multi-Manager Property Fund yesterday filed a judicial protest against Bank of Valletta, La Valette Funds Sicav plc, its directors, Valletta Fund Management, Valletta Fund Services, and Insight Investment Management (Global) Limited.

The protest is the latest in a series filed by investors in the fund since early last summer.

The document filed yesterday reiterated arguments made in previous protests and again claimed breaches of investment restrictions laid down in the fund prospectus.

It claims the fund invested in nine underlying funds that “exposed investors to gearing of more than 100 per cent of their respective net assets”.

The protest repeated allegations of breach of trust caused by redemptions from the fund between January and August 2008.

It also compared withdrawals from the La Valette Property Fund with those from the HSBC Property Investment Fund. Withdrawals from the HSBC fund over two years amounted to €1.89 million.

The protest claimed that the redemptions from the La Valette Multi-Manager Property Fund for the 10 months to August 2008 of €16.2 million – 20 per cent of the fund’s value – were far greater than that which one may reasonably have expected.

Meanwhile, the Malta Financial Services Authority is understood to still be working on its report on the fund’s management.

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