View Full Details >
Personal
Business
Wealth
24/7
BOV Club
BOV Group
Contact Us
BOV Internet Banking Login
BOV eTrader+
Language:
EN
MT
IT
I want
Products
My Toolkit
BOV Website Registration / Login
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
...
>
Maximise Banner
Minimise Banner
Set an Appointment
Set an Appointment...
next
Previous
Talk to us
BOV Contact details for COVID-19 measures...
BOV Home Loans
...
next
Previous
BOV Mobile Banking
BOV Mobile Banking...
BOV Internet Banking
Easy, fast and secure banking from the comfort of your home and office...
next
Previous
Allocating capital to in...
Allocating capital to innovations that shape the future...
31 BOV Employees donate ...
31 BOV Employees donate blood...
Contactless payments on ...
Bus passengers can now use their contactless cards, smartphones or smartwatches to pay for...
Tagħrif fuq Eco u Green ...
Tagħrif fuq Eco u Green Loans...
Investing smartly on a s...
Investing smartly on a small budget...
Upcoming BOV Webinars
Stay connected and up to date! Check out the schedule for upcoming BOV webinars and regist...
Changes in Tariff of Cha...
Changes in Tariff of Charges...
BOV MDB COVID-19 ASSIST
BOV MDB COVID-19 ASSIST...
Watch how easy it is to ...
Watch how easy it is to deposit a cheque in our ATMs...
Watch how to deposit a c...
Watch how to deposit a cheque through a BOV Cheque Deposit Box...
Watch how easy it is to ...
Watch how easy it is to withdraw cash from an ATM...
Trade, Transport and Tou...
Trade, Transport and Tourism...
Green Options - BOV Home...
Making your home more sustainable, besides being environmentally friendly, is a smart way ...
BOV Personal Energy Loan
The BOV Personal Energy Loan is a low-cost financing solution designed to assist you inves...
Bank Forms
Bank Forms...
to learn about my BOV Ca...
It pays to pay with your BOV Premium Credit Cards. Find out how....
BOV Home Loans
At Bank of Valletta we know that whether you are a first time buyer or acquiring your seco...
BOV Personal Financing
Do you need financing? Whether it is to buy a car, a home or finance your studies, we at B...
to know more about finan...
We’ll help you gain access to funds to support general business needs or growth objectives...
Branch Opening Hours
Branch Opening Hours...
BOV Stockbroking
BOV Stockbroking...
BOV Asset Management
BOV Asset Management...
BOV Fund Services
BOV Fund Services...
Get in touch with us
There are many ways to get in touch with us. Choose your preferred method. We shall be at ...
Interest Rates
This page features the interest earned on the Bank's deposit accounts...
Investor Relations
Within this section you will find an expanding array of useful and timely financial and ot...
BOV Cards
There are many reasons why you should use a card instead of cash.. security, peace of mind...
next
Previous
Home
>
Vilhena Maltese Opportunities Fund 25 years Anniversary
BOV Pjazza
BOV Market Watch - Week ending 12th August 2022
Mid-Year Outlook 2022
BOV Market Watch - Week ending 5th August 2022
Bank Deposit dilemma, the Illusion of Cash
Private Pension Plans discussed on Flusek
BOV Market Watch - Week ending 29th July 2022
What has caused the Maltese Government Stocks to tumble?
BOV Market Watch - Week ending 22nd July 2022
Everything you wanted to know about investing but were afraid to ask
BOV Market Watch - Week ending 15th July 2022
BOV Market Watch - Week ending 8th July 2022
Vilhena Maltese Opportunities Fund 25 years Anniversary
08 Jun 2021
next
Previous
The Vilhena Maltese Opportunities Fund, formerly known as the La Valette Malta Fund, was the first Collective Investment Scheme in Malta that provides its investors with access to a well-diversified portfolio of securities, which are predominantly listed on the Malta Stock Exchange and has delivered excellent results for its investors since its launch 25 years ago on 6th June 1996.
As at the end of May 2021, the Fund’s share price has appreciated by 367%, which means that since its launch date, the Fund has returned over 6% p.a. to its investors. The Fund has over time supported locally listed companies, most on their first public offering of equity or bond launch and is relatively still very popular with investors. Today the Vilhena Maltese Opportunities Fund has a fund size in excess of €25 million.
Over these 25 years since its inception, the Fund endured several challenges and opportunities ranging from the 2008 financial crisis, 2012 sovereign crisis and more recently, the COVID-19 pandemic, which arguably presented the biggest challenge over the 25-year span. However, every challenge presents an opportunity and the Fund focuses on seizing them. In order to identify the growth potential that exists within locally listed companies, the Fund Manager meets with senior management and analyses in depth the fundamentals and accounting information. Additionally, the Fund also looks at the valuation metrics to ensure that the Fund invests in opportunities that are attractive.
To further maximise its shareholders’ returns the Manager looks at the macroenvironment, that is, the Maltese economy. During the recent global coronavirus crisis, most sectors were impacted, particularly tourism. Our strategy during the pandemic was to avoid those sectors that were severely impacted, whilst focusing on those which benefitted from increased demand. We try to invest in opportunities that would maximise returns during a particular economic cycle.
As the local investor is very dividend and income oriented and the Fund provides the perfect blend in receiving dividend and income payments, whilst achieving capital appreciation. During the pandemic, several Maltese companies opted not to distribute a dividend given the detrimental impact that the pandemic had on their profitability. Additionally, banks and insurance companies were restricted from distributing dividends. However, as Malta’s economic recovery is slowly underway, dividend is expected to resume gradually, which would be an added return to the Fund’s shareholders.
Additionally, despite the Fund’s bias towards local securities, it also provides a small exposure to foreign securities. This provides the investor with a platform to take advantage of any momentum in global markets, like in recent months, whereby global markets started recovering before the local equity market.
Based on the latest International Monetary Fund forecasts, the international and local economies are expected to grow and therefore encouraging further investments. As the Maltese equity market is considered to be cyclical in nature, meaning that it tends to do well when the economy is improving and Malta’s economy is expected to rebound by 4.6%, one of the highest GDP growth rates in the Euro Area. In fact, 74% of companies listed on the Malta Stock Exchange are cyclical compared to the circa 55% of the European Index. This shows that as economies are gradually recovering, the Maltese equity market is expected to keep improving.
We took a defensive stance during the pandemic that is preferring non-cyclical securities. However, as the first signs of recovery started to intensify, the Fund started shifting its exposure to the cyclical side of the market, whilst also taking advantage of the attractive valuations that existed within these securities.
Looking back, 25 years ago few people would have thought the world would evolve the way it has, where technology has become such an important part of our everyday lives. Customer preferences have shifted as products and innovations evolved making our lives easier.
History has taught us that the world is constantly evolving, and it is up to us to adapt, by picking those stocks that offer the best growth potential and maximise shareholder returns. In addition, although it is almost impossible to time the market, the Fund tries to anticipate the market and invest in those securities that are considered attractive from a risk-reward perspective.
Additionally, similar to the strong rally that technology stocks had over the past decade, the Fund tries to identify those industries that would be considered as long-term winners. In fact, companies that are considered to be ESG (Environment, Social and Governance) friendly are touted to be amongst the future winners given the greener push being imposed by world leaders.
As previously mentioned, the economic cycle is also an important part to the success of the Fund in the upcoming 25 years. It is imperative that the Fund monitors and adapts to the economic cycle as several opportunities might arise during a particular cycle. The evolution of the Maltese market would be another important contribution to the success of the Fund.
This article was first published on the Sunday Times of Malta on the 7th June 2021. It was written by Stephen Sammut, an Investment Specialist at BOV Asset Management Limited (“the Company”).
The writer and the Company have obtained the information contained in this document from sources they believe to be reliable, but they have not independently verified the information contained herein and therefore its accuracy cannot be guaranteed. The writer and the Company make no guarantees, representations or warranties and accept no responsibility or liability as to the accuracy or completeness of the information contained in this document. They have no obligation to update, modify or amend this article or to otherwise notify a reader thereof in the event that any matter stated therein, or any opinion, projection, forecast or estimate set for the herein changes or subsequently becomes inaccurate. BOV Asset Management Limited is licensed to conduct investment services in Malta by the Malta Financial Services Authority. Issued by BOV Asset Management Limited, registered address 58, Triq San Zakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax: 2275 5661, E-mail:
[email protected]
, Website: www.bovassetmanagement.com. Source: BOV Asset Management Limited.
Share this item:
Print page
Sort reviews by:
Latest
Oldest
Add a review
This item has no reviews yet.
My Guide has identified the following related material
BOV Market Watch - Week ending 12th August 2022
More details
>
Mid-Year Outlook 2022
More details
>
BOV Market Watch - Week ending 5th August 2022
More details
>
Bank Deposit dilemma, the Illusion of Cash
More details
>
Private Pension Plans discussed on Flusek
More details
>
BOV Market Watch - Week ending 29th July 2022
More details
>
What has caused the Maltese Government Stocks to tumble?
More details
>
BOV Market Watch - Week ending 22nd July 2022
More details
>
Everything you wanted to know about investing but were a...
More details
>
BOV Market Watch - Week ending 15th July 2022
More details
>
BOV Market Watch - Week ending 8th July 2022
More details
>
Visa Promotion - Spend and Win
More details
>
Watch | Bank of Valletta CEO discusses Financial Results
More details
>
Malta’s updated economic outlook and what it means for b...
More details
>
Inflation and its impact on the local investor
More details
>
The Future of Banking in an age of digital disruption
More details
>
BOV Market Watch - Week ending 22nd April 2022
More details
>
Outsourcing risk, key considerations
More details
>
U.S. equities poised for volatility?
More details
>
The business implications of inflation in Malta
More details
>
Internet Banking Messages
More details
>
next
Previous
Calendar of Events
<<
19 August 22
>>
Quicklinks
Find my IBAN...
Exchange Rates...
Daily Fund Prices...
BOV Interest Rates...
BOV Properties...
Join our Team...
New BOV Customer...
Tariff of Charges...
Branch Opening Hours...
Set an Appointment...
BOV Home Loan Calculator...
Guide to Easy & Secure e-Mail...
next
previous
BOV News Feed
Marsascala are the BOV Water Polo 1st Division Champions
18 Aug 2022
read more
>
San Giljan lift the BOV Water Polo Premier League Trophy
18 Aug 2022
read more
>
BOV puts workplace pensions on agenda at MHRA quarterly seminar
10 Aug 2022
read more
>
BOV Withdraws High-Balance Fee
09 Aug 2022
read more
>
Your guide to Easy and Secure e-Mail System
08 Aug 2022
read more
>
San Giljan win the BOV Water Polo Women’s Knockout 2022
04 Aug 2022
read more
>
San Giljan win the BOV Water Polo Premier Knockout 2022
04 Aug 2022
read more
>
Marsaskala clinch BOV Water Polo 1st Division Knockout
04 Aug 2022
read more
>
Dr Julia Darmanin wins the BOV Prize in Medicine
02 Aug 2022
read more
>
Grounds being set for a bright future for BOV
28 Jul 2022
read more
>
Climate Change Challenges faced by Maritime Industry discussed in MMF ...
26 Jul 2022
read more
>
next
Previous
BOV Pjazza
BOV Market Watch - Week ending 12th August 2022
BOV Market Watch - Week ending 12th August 2022...
read more
>
Mid-Year Outlook 2022
Mid-Year Outlook 2022...
read more
>
BOV Market Watch - Week ending 5th August 2022
BOV Market Watch - Week ending 5th August 2022...
read more
>
Bank Deposit dilemma, the Illusion of Cash
Bank Deposit dilemma, the Illusion of Cash...
read more
>
Private Pension Plans discussed on Flusek
Private Pension Plans discussed on Flusek...
read more
>
BOV Market Watch - Week ending 29th July 2022
BOV Market Watch - Week ending 29th July 2022...
read more
>
What has caused the Maltese Government Stocks to tumble?
What has caused the Maltese Government Stocks to tumble?...
read more
>
BOV Market Watch - Week ending 22nd July 2022
BOV Market Watch - Week ending 22nd July 2022...
read more
>
Everything you wanted to know about investing but were afraid to ask
Everything you wanted to know about investing but were afraid to ask...
read more
>
BOV Market Watch - Week ending 15th July 2022
BOV Market Watch - Week ending 15th July 2022...
read more
>
BOV Market Watch - Week ending 8th July 2022
BOV Market Watch - Week ending 8th July 2022...
read more
>
next
Previous