The volatility currently being experienced worldwide in both the bond and equity markets represents a firm challenge to investors’ confidence. In order to improve economic performance, central banks worldwide have lowered interest rates, creating, among others, an environment where conservative bond based investments became much more sought after than equity based investments. Moreover, investors have demonstrated preference for high quality bonds.

This sentiment also led to a considerable increase in demand for the La Valette Malta Bond Fund and the Vilhena Malta Government Bond Fund, two locally based bond funds, managed by Valletta Fund Management, that offer stability especially in the changing market we are currently experiencing.

The Vilhena Malta Government Bond Fund has a well-diversified and professionally managed investment portfolio of Maltese government bonds while the La Valette Malta Bond Fund gives investors access to the Maltese government and corporate bond market.

Both funds have two classes of shares, an Accumulator class where the income is accumulated and reflected in the daily share price and a Distributor class where the income is distributed every six months.

As at 31st October, the Income Yield for the Vilhena Malta Government Bond Fund was 4.1 per cent and as at 30th September, La Valette Malta Bond Fund Has registered an Income Yield of 4.1 per cent.

Following the recent turmoil in the stock markets and the relatively solid performance of local companies, investors continue to evaluate the possibility of taking a long-term position in the Maltese equity market. For those investors seeking to maximise the total level of return while minimising the volatility of the portfolio through investment in Maltese equity and debt securities, the Vilhena Malta Fund, La Valette Malta Fund and the Wignacourt Malta Fund offer an interesting alternative. All three funds offer both an Accumulator as well as a Distributor class of share where income is distributed every year.

Until 31st December, new shareholders will benefit from a 25 per cent discount on the applicable up-front fees of all funds investing in the local market. Furthermore, a 50 per cent discount on the applicable upfront fees of all funds investing in the local market investments is extended to all existing shareholders.

Investors can also benefit from a 100 per cent discount on the applicable upfront fees when concluding a monthly investment plan in any local fund managed by VFM up to a maximum of e200 per month and subject to the minimum lump sum investment required in the fund selected.