Valletta Fund Management Ltd has announce 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 39 million euro in fund size as at 29 August 2006.
The La Valette Multi Manager Property Fund has proved particularly attractive to experienced investors because 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 the launch on 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 29 August 2006, the fund’s portfolio was comprised of 10 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, Valletta Fund Management Ltd general manager Kenneth Farrugia 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 Ltd’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 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.
Further information about this fund may be obtained from Valletta Fund Management Ltd’s website at www.vfm.com.mt or through any Bank of Valletta Branch in Malta and Gozo or licensed financial intermediaries.