BOV Asset Management has launched the first edition of the Investor Sentiment Index for Malta.
Results of the first survey, which was conducted by Misco International, were presented by Lawrence Zammit, director of Misco International, at a business breakfast.
Mr Zammit gave an overview of the research, which is based on the feedback of over 300 investors from across Malta and Gozo. The exercise showed that the Maltese investor has a clear preference for local investment, with a predominantly conservative appetite.
In fact, almost half of the respondents claimed to capitalise on government stocks. It was positive to note, Mr Zammit said, that over the past five years, there was a trend for younger investors to join the market.
“Most investors in Malta use an intermediary, be it a financial institution or consultant, with only 10 per cent having the confidence to invest on without seeking advice,” Mr Zammit said.
The Maltese investor has a clear preference for local investment, with a predominantly conservative appetite
A closer look at the objective for investing among the interviewees shows that roughly half of them engage in investment activity solely to generate an additional source of income. However, there is a good proportion of them who look upon investment to increase their capital as well.
“Generally speaking, Maltese investors do not feel extremely positive about the current local investment market. This is mainly due to decreasing return on investment. However, there is an increased positive sentiment about the return for the coming 12 months.”
In his introductory speech, Mark Vella, head of business and marketing at BOV Asset Management, said that “the need for this index has been felt for quite a while on the local market, and it is a great satisfaction for us at BOV Asset Management to be the ones to launch this investor sentiment index in Malta”.
Thanking Misco for their sterling work, Mr Vella added that “we are committed to conduct this research on a semi-annual basis, thereby enabling all key players to keep abreast of investor sentiment and take action as necessary.”
Speaking at the end of the presentation, Mark Agius, executive head, BOV Asset Management, thanked Mr Zammit and the research team at Misco.
He said: “Investment has become an integral part of the financial services offering by BOV Group. BOV Asset Management is strengthening its position on the local market, not only by launching new products and services to the individual investor like the BOV Portfolio Funds but also by extending its licence to offer investment to institutional and corporate clients.
“The BOV Asset Management Investor Sentiment Index will definitely serve as an important tool for the stakeholders to better understand the market, while helping us to design investment solutions that address better market demand,” added Mr Agius.
Participants at the business breakfast included BOV officials, stockbrokers and representatives from local insurance companies.