Firsfirst risk-driven contractual funds on the Maltese market
BOV Asset Management has launched three contractual funds on the market. This is a first for the company, and the aim is to propose a cost effective investment vehicle, thereby offering better value to investors. The BOV Investment Funds suite comprises three portfolio funds - BOV Conservative Portfolio Fund, BOV Balanced Portfolio Fund and BOV Growth Portfolio Fund – all of which are regulated by the UCITS Directive.
Introducing the BOV Investment Funds, Romeo Cutajar, Chief Officer Investment Services at Bank of Valletta explained, “At BOV, we always seek to bring to the market innovative products and services that are customer-driven. We are very excited about the suite of portfolio funds we are launching, because they represent a new investment proposition to the retail customer, and which are appropriate to the individual customer’s financial lifecycle, and can be modified to meet that individual’s circumstances as they change over the years.”
Mr Cutajar explained, “This is a novel concept in many respects. First and foremost, we are launching three portfolio funds contemporarily in order to address different levels of risk designed to match distinct risk profiles.” He also stated that, “The BOV Investment Funds are the first risk-driven investment funds available in Malta, which implies that a volatility ceiling is set for every portfolio fund. Although the three funds operate similarly, the element of risk, and likewise the reward, increases as one moves from the Conservative Fund to the Balanced and ultimately the Growth Portfolio Fund. The Asset Management team actively managing the funds bring a wealth of experience and synergies to the table. They will be evaluating the funds constantly, so as to ensure that the volatility of any given fund does not exceed the predetermined threshold at any point in time.”
Corroborating Mr Cutajar’s statement, Mark Agius, Executive Head BOV Asset Management, explained that the BOV Investment Funds bring important benefits for retail investors. “One may invest in any UCITS managed portfolio fund with a minimum investment of EUR5,000. Furthermore, we have sought to keep the cost structure at a minimum, and in fact there are no entry or exit fees. In this manner, we want to ensure that we maximise the return for investors.”
Mr Agius also commented about the manner in which the BOV Investment Funds depart from the traditional investment funds. “The portfolio funds have a broader mandate aiming to provide improved risk-adjusted returns. These funds are designed in such a way that the investor will benefit from diversification through one single investment, which essentially means that every portfolio will include different asset classes that exhibit low correlation benefits.”
“In so doing, we are effectively offering retail customers access to a portfolio management service through these Investment Funds; a service that would otherwise be prohibitive to him with small investable amounts,” concluded Mark Agius.
Customers interested in obtaining more information about the suite of BOV Investment Funds and the manner in which they work may enquire at any BOV branch or at one of the Bank’s Investment Centres. Queries may also be addressed to BOV Asset Management on 2122 7311 or by sending an email at email@example.com