Valletta Fund Management Limited said that the La Valette Multi Manager Property Fund, which offers investors the opportunity to invest primarily in the UK and European real estate property market, has reached e39 million in fund size as at 29 August 2006.
The La Valette Multi Manager Property Fund has proved particularly attractive to experienced investors for it aims to deliver consistent income as well as potential for long-term capital growth, at lower volatility levels than that associated with equities and bonds. For the period from launch on the 13 September 2005 to 29 August 2006, the fund registered a growth of 9.93 per cent in absolute terms.
This growth can be attributed to the benefits that the multi manager concept has to offer, that is, diversification across a variety of property funds managed by specialist fund managers. In effect, as at the 29 August, the fund’s portfolio was comprised of ten property funds that primarily invest in the UK and European commercial real estate property markets, and to a limited extent in the Asian property market.
Commenting on the fund`s strong performance, Kenneth Farrugia, general manager of Valletta Fund Management Limited said, “The success achieved by the La Valette Multi Manager Property Fund has exceeded our expectations, both in terms of the significant investments in this fund within a relatively short time-frame, and more so in terms of the performance that the fund has delivered so far to its investors. The launch of the La Valette Multi Manager Property Fund last September, then a first of its kind in Malta, strengthens Valletta Fund Management Limited’s position in introducing innovative investment solutions.
Property investment funds are growing in popularity as after all, they allow for asset diversification within an investment portfolio – the key to a portfolio’s potential success. Property funds also allow investors to gain access to a very popular asset class, the real estate property, through the pooling of their money together with that of other investors. However, of far more interest to investors is the fact that this fund offers potential for generating consistent returns at a relatively lower risk than equities and bonds. The fund is very appealing to investors as it brings a breath of fresh air to individual private investors, giving them the opportunity to gain access to commercial real estate properties, previously only available to institutional investors.
Through the La Valette Multi Manager Property Fund, investors gain access to a careful selection of underlying funds managed by several experts in the field, each applying different strategies and techniques, further complimenting the fund’s strength through diversity.”
The La Valette Multi Manager Property Fund is structured as a Professional Investor Fund, denominated in euro and aims to distribute income* twice yearly. This means that investors may benefit from income streams derived from regular contractual commitments in the form of rent, generally under the terms of long-term leases with normally upward-only rent reviews.
* Income may fluctuate and is not guaranteed.
Past performance is not necessarily a guide to future performance. The value of the investment may fall as well as rise and currency fluctuations may affect the value of the investment. Investors are advised that real estate property is inherently subjective as regards value due to the individual nature of each property. Hence, there is no assurance that the valuations of the fund’s underlying investments will reflect the actual property value. Investment in the real estate property market is, by its nature, relatively illiquid and therefore, redemption requests may be deferred or suspended as more fully described in the Supplementary Prospectus. The fund’s underlying investments may adopt gearing strategies, which although aimed at amplifying the returns, may, in falling real estate markets, result in a loss in whole of the value of any one or more of the fund’s underlying investments. Investments should be based on the full details of the Supplementary Prospectus, which may be obtained from Valletta Fund Management Limited (“VFM”), Bank of Valletta branches and other licensed financial intermediaries.