A group of eight Bank of Valletta (“BOV”) employees has returned from a two-day training programme at the Insight Investment (Global) Management Limited (“Insight”) offices in London.
During their visit, the BOV employees attended briefing sessions with Ms. April La Russe, Fixed Income Product Specialist at Insight responsible for the La Valette Sterling Income Fund, La Valette Monthly Income Fund and La Valette Euro Income Fund. Other briefing sessions were also held with Mr Alex Moss, Fund Manager of the La Valette High Yield Fund, and Mr Alex Illingworth, Director responsible for the International Equity Team as well as the local funds managed by Valletta Fund Management Limited (“VFM”), and Stephen Waddington and Mr Mike Pinggera, who form part of the Multi Asset Team.
During these sessions, the group was given first hand information on the opportunities currently available in the Corporate Bond Market by April La Russe. Ms La Russe also gave a first hand in-depth analysis on the performance of the various bond funds which aim to achieve a high level of income, with the possibility of capital growth and can be the ideal investment vehicle for those looking for periodic income streams.
Alex Moss, who is responsible for Insight’s High Yield and Leveraged Loan Investments within the fixed income area, gave an update in respect of the portfolio activity of the La Valette High Yield Fund.
This Fund, which as at 31 March 2009 generated an income yield of 5.66%, aims to achieve a high level of income through investment in a diversified portfolio of securities consisting principally of debt instruments which are of a sub-investment grade credit rating. Alex also explained that currently a similar opportunity presents itself in investment grade corporate bonds.
Alex Illingworth gave the group an in-depth analysis of the local market as well as an update of the domestic range of the VFM funds. He said, “Crisis brings along danger but also opportunities.” He explained that markets are discounting a lot of bad news and that equity valuations appear attractive. As to the local market, Alex continued “The Wignacourt Malta Fund, the La Valette Malta Fund and the Vilhena Malta Fund can present the ideal investment opportunity for those wishing to access the Maltese Capital Market. The Wignacourt Malta Fund, the La Valette Malta Fund and the Vilhena Malta Fund distributes income annually and as at 31 March 2009 had an income yield of 6.07%, 5.88% and 3.55% respectively.
Stephen Waddington and Mike Pinggera explained Insight’s decision to adopt a Multi Asset approach and the rationale behind it. They also gave a detailed explanation of the investment approach and underlying philosophy and finally why the Multi Asset approach is considered to be an evolution in today’s investment arena.
Mr Waddington also gave those present a comprehensive analysis of the market including the unprecedented wave of risk aversion and the correlations between different asset classes. He was later joined by Michael Ford, Fund Manager from the Strategy Team who gave a presentation on the current market observations and the various reasons underpinning a bearish and bullish outlook.
The group also had the opportunity to meet Robert Jones from the European Banks Equity Research Team during a tour of the investment floor, where he touched on the process of trading equities at the best possible prices and in the most efficient and effective way. A visit was also organised to London’s Metal Exchange in the heart of the City.
This training programme was made possible thanks to BOV’s business partnership with Insight, a subsidiary of Lloyds Banking Group. VFM is a joint venture between BOV, having a 60% shareholding in the Company, and Insight, having a 40% equity stake.