La Valette Funds interim results
investor sentiment hit by wait for Privatisation Programme

La Valette Funds SICAV plc last week issued its Interim Report and Unaudited Financial Statements for the half year ended 31 March 2001.

The SICAV currently consists of twelve sub-funds denominated in Maltese Lira, Sterling, United States Dollar and Euro and net assets as at the report date show aggregate investments amounting to GBP112,272,654.

On the domestic side, Charles Borg, General Manager Valletta Fund Management Limited, said that the fact that investors seem to be waiting for the Government's Privatisation Programme made its impact on investors' sentiment. Mr Borg stressed the need for market makers to set-up shop and create the necessary liquidity to provide stability in the market. This was confirmed recently by Bank of Valletta plc, who stated that the Bank will be soon introducing a market making capability for a number of local equities, namely Maltacom, HSBC and Fimbank.

Of particular interest is the Manager's Report, which provides a market overview and performance relative to all the funds of the SICAV. The report also provides a detailed asset allocation of the funds and their relative exposures, and illustrates how they were effected by the performance of the domestic and international markets over the past six months.

The report also provides the outlook for both domestic and international markets. The Manager's Report anticipates that the second half of 2001 could see better news, as markets should start to focus on 2002, which is expected to be a stronger year for both GDP and earnings.