Since its launch on the market on 30 April 1997, the La Valette Malta Bond Fund has registered a fund size in excess of €79* million. Speaking on this milestone, Mark Agius, Head of Valletta Fund Management Limited (“VFM”) stated “This clearly confirms the affinity of the local investor to Maltese bonds and to regular income streams. In fact we are seeing a number of investors adding this fund to their investment portfolio to supplement their income”.

Managed by VFM, the La Valette Malta Bond Fund’s (“the Fund”) accumulator class of shares has registered an annualised return of 5.24%* and provides investors with the opportunity to invest in a portfolio of bonds issued by local companies and the Maltese government having different maturity dates, coupons and credit risks.

Advised by Bank of Valletta p.l.c. (“BOV”), the Fund aims to maximise the total level of return for investors, minimising the volatility of the portfolio whilst having regard to attaining a desirable level of liquidity. To meet the requirements of investors, the Fund offers two share classes, accumulator and distributor class, where the latter distributes income every six months currently at 3.85%**.

Malcolm Abdilla Castillo, Investment Manager at BOV Capital Markets and Institutions highlighted that “The Fund has been positioned with the aim of providing a stable performance through a deliberate low duration strategy with the aim of providing a less volatile performance in the eventuality of a reversal in yield direction”.  He concluded that “The Fund will continue to explore all investment opportunities available on the market, in both corporate and government issues, which offer acceptable risk-weighted returns”.