Wignacourt Funds SICAV plc recently published its Annual Report and Financial Statement for the year ended 31 May 2005, reporting an 8.04 per cent increase in its fund size from Lm13.675 million on the 31 May 2004 to Lm14.775 million on the 31 May 2005.

During the year ended 31 May 2005, the quoted share price of the Wignacourt Malta Fund accumulator class of shares increased by 26.18 per cent from Lm0.886 to Lm1.118. As from the launch on 6 March 2000 to 31 May 2005, the quoted share price increased by 11.80 per cent, from Lm1.000 to Lm1.118.

With regard to the distributor class of shares, the quoted share price increased by 24.71 per cent from Lm0.886 to Lm1.105 for the year ended 31 May 2005. From the date when the distributor class of shares was made available, 11 December 2003, to 31 May 2005, the quoted share price increased by 47.53 per cent from Lm0.749 to Lm1.105.

Valletta Fund Management general manager Kenneth Farrugia commenting on the factors that had led to such results, said: “The sentiment towards Maltese shares remained buoyant and trading activity picked up significantly as demand increased, which led to a very satisfactory performance of the market. The Malta Stock Exchange (MSE) Ordinary Share Index appreciated by 33.31 per cent from 2,561.261 points at 31 May 2004 to 3,414.575 points at 31 May 2005. Ten of the 13 listed shares registered gains. Four of the positive movers outperformed the MSE share index during the period under review. This positive trend led to an improved performance for the Wignacourt Malta Fund. In fact, during the period under review, the fund registered a remarkable performance for the second time since its launch.”

Commenting on the fund’s composition of the portfolio and its investment activity, Mr Farrugia said: “The fund’s largest exposures were, in fact, among the best performing shares led by the major banks, Malta International Airport plc (MIA) and Middlesea Insurance plc (MSI). Among the various shifts within the fund’s portfolio throughout the reporting period, the investment advisor increased the fund’s position in three equities: MSI, MIA and FIMBank plc.

“Concurrently, the investment advisor maintained the fund’s positions in the two major banks, being Bank of Valletta plc and HSBC Bank Malta plc,” he said.

With respect to the fund’s fixed income securities, Mr Farrugia added: “In the bond market, primary market demand for Malta Govern-ment stocks remained high, with both retail and wholesale demand significantly outweighing availability. Yields in the secondary market remained generally stable, especially during the first half of the period under review, as trading activity slowed on account of the low levels of supply.

“Confidence levels have undoubtedly increased throughout the past 12 months as Malta’s entry into ERM II paves the way for the country’s eventual adoption of the euro, possibly in January 2008. This development, coupled with the encouraging outlook for most listed companies, is likely to install further confidence.

“Launched in early 2000, the Wignacourt Malta Fund invests principally in Maltese equity and debt securities that are listed on the Malta Stock Exchange”, Mr Farrugia concluded.