Valletta Fund Management Limited launched a new fund within the La Valette Funds SICAV plc – the La Valette FTSE 100 Index Capital Guaranteed Fund. This new fund is aimed at investors seeking both growth potential over the longer term as well as preservation of capital.
The La Valette FTSE 100 Index Capital Guaranteed Fund, is a six-year investment solution denominated in pound sterling. As the name implies, the investment return of the Fund is linked to the potential growth of the FTSE 100 Index over the investment period.
The fund has been designed with some innovative features. Apart from the traditional 100 per cent capital guarantee, this Fund comes with a minimum guaranteed return of three per cent which will be paid at the end of the investment period.
More importantly, one of the key benefits of this Fund is the enhanced participation rate of 125 per cent of the potential growth of the FTSE 100 Index, with no ceiling on the growth of the Index.
In order to avoid the impact on the Fund of a possible fall in the value of the FTSE 100 Index upon Termination Date, the growth of the Index will be determined upon the average of the closing levels of the Index on quarterly observation dates of the last three years of the investment period, in relation to the Initial Index level as at 28 March 2005. While averaging is designed to counter market movements, averaging may reduce the investment potential and, therefore, may reflect only some of the performance of the Index. In any event, the Minimum Return of three per cent payable to investors is always guaranteed irrespective of the performance of the FTSE 100 Index.
If at the end of the investment period, the growth attributable to investors is not in excess of the minimum guaranteed return, the management fee of two per cent of the net asset value will not apply. In any event, the minimum return of three per cent payable to investors is always guaranteed.
Another innovative feature of this Fund is the level of accessibility even though the investment term is of six years. Valletta Fund Management will be issuing the net asset value of the Fund twice a month, this being every other Thursday of each month wherein investors may redeem their shares in the Fund at the applicable net asset value less a 2.5 per cent exit fee.
The fund has also been designed to accommodate investments from a low minimum entry level of GBP 1,000 (and multiples of GBP 100 thereafter).
During the offer period from the 23 February 2005 to the 22 March 2005 (although the offer period may close earlier), investors may buy shares in the Fund at a fixed price of GBP one per share.
Additional information on the La Valette FTSE 100 Index Capital Guaranteed Fund and a copy of the Supplementary Prospectus may be obtained from Valletta Fund Management Limited by calling on freephone 80072344, visiting any branch of Bank of Valletta in Malta or Gozo or any licensed financial intermediary.