29 June - 5 July 2000

Bright future for Valletta Fund Management

by Franco Aloisio

Valletta Fund Management is facing a bright future in view of the several possibilities in the international financial sector to expand its services and products, Rothschild Asset Management director Christopher Jenkins told The Malta Business Weekly.

Rothschild, the international partner of VFM, considers its initial investment in Malta five years ago as a very wise decision. Mr Jenkins, who is in Malta on a routine visit, said Malta can have a fair share of the growing financial services sector in the Mediterranean.

Plans to expand VFM's operations in the Mediterranean rim were already disclosed a few weeks ago by general manager Charles Borg in an interview with The Malta Business Weekly.

Speaking during the launch of two new funds, Mr Borg confirmed these plans, adding that one avenue being considered is for VFM to act as a back office for the management of foreign funds. Alternatively, VFM could develop its own product for international markets, and distributed through a foreign partner.

Mr Borg said VFM is fast approaching the Lm200m mark in terms of assets managed by the company. It is expected to surpass this figure following the offer of the two new funds - the La Valette Far East Opportunities Fund and the La Valette International Equity Fund. At present, the number of shareholders exceeds 26,000.

VFM chairman Joseph Zahra said the La Valette Far East Opportunities Fund and the La Valette International Equity Fund are two new equity based funds indirectly investing in international capital markets, while the other three are cash funds denominated in Sterling, Euro and US Dollars.

The launch of these funds brought the number of sub-funds managed by VFM in just over five years of operation to a total of 18, "confirming its leadership in the marketplace," commented Mr Zahra. This month, VFM is celebrating its fifth anniversary since it was set up. It international partners are Rothschild Asset Management Ltd.

The Far East Opportunities Fund will be investing in shares of companies located in the Far Eastern region, in the so-called "tiger economies".

On the other hand, the International Equity fund will indirectly invest in shares of attractive companies within the global sector focusing

on companies that are demonstrating a competitive edge in the new

economy, he said.

Giving details on these new funds, Mr Borg said the fixed price for shares will be of US$1 per share and minimum investment in both funds is of US$1,000.

New shareholders will enjoy a reduction of the up-front charge from 4 per cent to 2 per cent. On the occasion of VFM's fifth anniversary, existing shareholders will be given a full discount in appreciation for

the trust they have shown in the company. Applications may be obtained from VFM, Bank of Valletta branches or any other financial intermediary.