Net assets of the Vilhena Funds SICAV plc (“the Company”) amounted to €172.13 million as at the end of the Financial Year ended 30 June 2008. This was announced during the Company’s 11th Annual General Meeting held at the Portomaso Suite, Hilton Malta where the Board of Directors presented the Annual Report and Financial Statements of the Company. During the said meeting, all resolutions presented to the shareholders were unanimously approved.

The Company is licensed by the Malta Financial Services Authority as a Collective Investment Scheme qualifying as UCITS and offers a wide selection of funds which invest across most asset classes and are exposed to different geographical regions. The Company presently offers nine Funds including the Vilhena Mediterranean Rim Fund which is considered as a unique Fund as it invests across the emerging economies of the Mediterranean.

Following the General Meeting, Mr David Pace Ross from Bank of Valletta, who have been appointed as Sub-Advisors to the Vilhena Malta Fund and the Vilhena Malta Government Bond Fund, spoke about the investment strategy and the asset allocation of both Funds. He also outlined the local market highlights during the financial year ended 30 June 08, including the euro adoption, the trading activity on the Malta Stock Exchange, Corporate acquisitions, and Initial Public Offerings. He explained that although the Malta Stock Exchange Index registered a loss of 11.11% between 30 June 07 and 30 June 08, the local companies underlying the Vilhena Malta Fund have strong fundamentals.

Mr Pace Ross commented that the outlook in respect to local equities in the light of the current market conditions is “that the local financial institutions are well prepared and local equities are expected to enhance returns over time. Furthermore, new Initial Public Offerings should improve sector diversification which currently depends more than 50% on HSBC Bank Malta, International Hotel Investments plc and Bank of Valletta plc”. He added that the Vilhena Malta Fund invests in strong companies which offer long term potential and the Fund is an ideal vehicle through which one could have a diversified portfolio of local shares in such companies. As to the local fixed interest market, Mr Pace Ross is of the opinion that considering the present market scenario, the bond prices should gradually move higher amid increased volatility. The Vilhena Malta Government Bond Fund with an income yield of 3.99% as at 31 October 2008, offers a relatively stable investment opportunity as it invests primarily in Malta Government Bonds giving investors an access to a diversified portfolio of local fixed interest securities.

The second part of the presentation was addressed by Mr Mark Vella, Head of Marketing at Valletta Fund Management. During his presentation, Mr Vella spoke on the performance of the international stock markets and economies as well as the various implications of the current crisis. Mr Vella commented “Global markets suffered the biggest fall since 11 September 2001 and in order to try to improve the liquidity on the market various governments have intervened. A case in point is in its biggest intervention yet, the Federal Reserve made US$700 billion of funds available to banks and other institutions to try to improve liquidity on the market and similar initiatives were made by other European Governments”. He explained that in order to avoid a possible US recession, the Federal Reserve cut its key interest rate from 1.5% to 1%. On the other hand, the Bank of England slashed interest rates unexpectedly from 4.5% to 3% – the lowest since 1955, whilst the European Central Bank lowered Eurozone rates to 3.25% from 3.75% in an attempt to prevent recession.

Mr Vella continued by explaining the investment positioning of the Vilhena Funds and the importance of diversification which he outlined as one of the main benefits when investing in the Vilhena Funds.

Mr Vella mentioned that he acknowledges the various concerns shared by most shareholders but stressed the importance that “one has to look beyond the crisis and ask whether the original goals have changed and whether the portfolio reflects the risk one is prepared to take. Finally one should ask whether there is a need to change one’s investment strategy”. He added that until tomorrow, existing shareholders can benefit from a 50% discount on the applicable up-front fees of investments made in the Vilhena Malta Fund and the Vilhena Malta Government Bond Fund.

Mr Vella concluded his presentation by quoting Mr Warren Buffet famous quote “I never attempt to make money on stock markets. I buy on the assumption that they could close the market the next day and re-open in five years time”.