Valletta Fund Management’s La Valette FTSE 100 Index Capital Guaranteed Fund, launched on the market on 23 February 2005, has shown a steady performance, with its share price increasing from £1.000 to £1.1465 from launch up to 13 April 2006.
The fund has been designed to provide investors with a 100 per cent guarantee of the original investment amount over the investment period ending 28 March 2011, while providing shareholders with the higher of the three per cent minimum return or the potential additional returns equal to 125 per cent participation in the growth of the FTSE 100 Index over the investment period, net of the two per cent management fee payable at the end of the investment period.
As at 13 April 2006, approximately 72 per cent of the fund’s net assets was invested in zero coupon medium-term notes, issued by SGA Société Générale Acceptance NV and guaranteed by Société Générale, Paris, and the balance of approximately 27 per cent was held in an option issued by Société Générale, Paris as the approved counter party. The guarantor is Société Générale, Paris, an AA-, Aa2-rated leading financial institution in France.
The FTSE 100 Index comprises the 100 most highly capitalised blue chip companies listed on the London Stock Exchange, representing approximately 80 per cent of the UK market. The index is seen as a barometer of success of the British economy and is a leading share index in Europe. It is maintained by the FTSE Group, a now independent company that originated as a joint venture between The Financial Times and the London Stock Exchange.
Past performance is not necessarily a guide to future performance.
The value of the fund may fall as well as rise, and currency fluctuations may affect the value of the investment. For redemptions effected prior to termination date, the capital and the minimum return guarantee do not apply. The fund is subject to the credit risk of the guarantor and the approved counter party. Hence, there can be no assurance that the investment objective of the fund will be achieved. Société Générale, Paris is the
guarantor of the zero medium term notes by virtue of a deed of guarantee dated 14 January 2005.
Société Générale is a limited liability corporation established under French law and having the status of a bank.