Global Funds SICAV recently held its seventh annual general meeting at the Radisson Baypoint Resort, St Julian’s, during which shareholders approved the annual report and audited financial statements for the year ended 31 July.
There were no changes in the company’s Board of Directors, which is composed of Anthony C. Azzopardi (chairman), Dr Tonio Fenech, Adrian Galea, Dr Norval Desira and John Ellul Vincenti. PricewaterhouseCoopers were reappointed auditors.
Mr Azzopardi said investors who had experienced difficult international and local market conditions should now be encouraged due to the positive performance registered by the sub-funds of the company.
In particular, the bid-to-bid price of the Malta Privatisation & Equity Fund increased by 26.35 per cent for the period from 31 July 2004 to 31 July 2005, from Lm0.7907 to Lm0.9991. On an offer-to-bid basis the share price of this Fund increased by 22.67 per cent from Lm0.8144 to Lm0.9991 for the same period.
From the date of launch on 15 December 1999 to 31 July, the Malta Privatisation & Equity Fund registered an annualised return of -0.01 per cent on an offer-to-bid basis. The chairman thanked the company’s investment adviser, Globe Fund Advisers Limited, for their active contribution in helping to achieve such results during the last financial year.
A presentation to the shareholders at the AGM was made by James Blake, Director of Globe Fund Advisors Limited, who reviewed developments in the local and international capital markets. Mr Blake also analysed the performance of the six sub-funds of the company, namely the Global Bond Fund Plus, the Malta Privatisation & Equity Fund, the Aberdeen (Malta) China Opportunities Fund, the Aberdeen (Malta) Technology Fund, the Melita International Bond Fund and the Melita International Equity Fund.
Mr Blake said the Maltese equity market experienced exceptional growth in the past year and comparatively outperformed major international markets. This was positively reflected in the performance of the Malta Privatisation & Equity Fund, which invests principally in Maltese listed securities, he continued. Growth was also driven by renewed talks of privatisation coupled by strong earnings and dividend yields, particularly in the banking sector.
“This has re-ignited investor interest which, after a period of relative inattention, is recognising opportunities and regaining appetite for the local equity market,” Mr Blake said. “With high investor liquidity and attractive yields when compared to low interest rates, there is also stronger demand in the Maltese bond market, particularly for Malta Government Bond issues,” Mr Blake said.
“With Malta’s intention to adopt the euro, such holdings are likely to remain attractive, particularly in a scenario where the European Central Bank maintains the current low interest rates.
“Globe Fund Advisors Limited remains positive about the Maltese market particularly in view of renewed investor confidence, strong company performances, low interest rates and the possible increased impetus from the upcoming pension reform,” Mr Blake concluded.