Valletta Fund Management recently organised its first quarterly seminar for 2009 at Le Meridien Hotel in St Julian’s. This was attended by Bank of Valletta employees involved in the sales and promotion of VFM’s range of investment funds.
Peter Perotti, general manager of VFM welcomed the participants and gave a review of the sales performance for the quarter ending 31 December 2008. He then explained: “When the market goes through a period of high volatility, such as the one we are currently experiencing, investor confidence tends to be low. While it is normal to feel unsure during such periods, it is important to remember that bear markets are as natural as bull markets and that there are alternative investment solutions to help you regain control over your portfolio.”
He continued: “In the light of the current market conditions, VFM’s Monthly Investment Plans provide investors with an excellent way to start planning for their future by minimising the downside affect of the markets.”
He explained that this strategy of price averaging does not try to time markets; instead it reduces the risk of investing a large amount at an unfavourable time, by spreading the investment over a number of years.
Individuals who attended the seminar had the opportunity to ask questions directly to Emma Du Haney, Senior Fixed Income Product Manager at Insight Investment Management Limited who is also the Fund Manager for the La Valette Monthly Income Fund and La Valette Euro Income Fund.
During her presentation, Ms Du Haney highlighted the opportunities within the European Corporate Bond market and explained that the credit spreads are at historical wides thereby presenting a significant opportunity for investors seeking income.
She then mentioned that Insight Investment Management Limited “… are starting to see new issues once again as quality names are coming to market at very attractive yield premia”.
As to the selection process to purchase bonds, Ms Du Haney stressed the importance of considering among others the different risks associated with Government and non-Government Bonds.
She then concluded her presentation by expressing her views on the most recent developments in the corporate bond market.
Mark Vella, Head of Marketing at VFM also addressed the sales seminar; he spoke how the economies around the world are affected by the credit crunch and how US consumer confidence fell to a record low.
He said: “The Federal Reserve has continued with its interest rate cut strategy, as US has officially entered into recession at the beginning of December.” Mr Vella then explained the impact this had on the performance of VFM’s range of funds investing in the foreign bond market and the outlook going forward.
Finally, David Pace Ross, Manager Stockbroking and Advisory Service at BOV gave a presentation on the local market quarterly highlights. He explained how “… between October and December 2008, the MSE index has registered a negative performance of 13 per cent”.
He added, “earnings are under pressure due to increased competition and decrease in interest rates”. He spoke on “How the recession affected tourism and its impact on the local companies”. He concluded by commenting that an improvement in investor sentiment towards equities should lead to a potentially better performance for 2009.
These seminars are organised by VFM on a quarterly basis to keep BOV licensed sales personnel abreast of developments in the local and international market, as well as on the performance of the VFM’s range of funds.