“A report by the European Funds Association has shown that investors across Europe have started to move their cash back into funds and a combination of positive developments such as all time low short-term interest rates, the potential for stock price appreciation and improving prospects of the world economy are likely to continue to boost the demand for investment funds.” This was announced by Peter Perotti, General Manager of Valletta Fund Management in his address at VFM’s annual seminar for the financial year 2008/09 for Bank of Valletta employees who are licensed to promote and sell VFM’s range of investment funds from the Bank’s branch network.
Perotti commented on how the global financial crisis experienced during the year was one of the most serious financial market crisis in history, with massive losses being recorded in stock markets, the bankruptcy of Lehman Brothers and a number of international banks facing operating difficulties. “Investor sentiment was at its lowest and while it is normal for investors to feel unsure during such periods, it is equally important to remember that bear markets are as natural as bull markets and that during such situations there are alternative investment solutions which are aimed at helping investors regain some control over their portfolio,” he said.
He stressed on the importance of investing in a regular manner through VFM’s monthly Investment Plans and said that in the light of the current market conditions, these plans provide investors with an excellent way to start planning for their future by minimising the downside of the markets over years to come.
Peter Perotti added that this strategy of price averaging does not try to time markets, instead it reduces the risk of investing a large amount at an unfavorable time, by spreading investments over an extended period of time across different market cycles.
During the seminar those present were given the opportunity to participate in a Q&A Forum on international stock markets with Mike Pinggera, Head of Multi Asset Class Solutions within Insight Investment Management (Global) Limited.
Pinggera, who is responsible for developing the company’s Multi Asset investment strategy for all asset classes, said “the immediate outlook for the financial system has improved markedly since April 2009. Financial markets have rebounded, emerging market risks have eased, banks have raised capital, and wholesale funding markets have reopened. However, credit channels are still impaired and the economic recovery is likely to be slow.The financial world is showing signs of good activity and although investor confidence is back to acceptable levels one should consider recovery as a process and not an event,” concluded Mr Pinggera.
The sales seminar was also addressed by Mark Vella, Head of Marketing at VFM, who analysed the performance of VFM’s range of investment funds and the impact that the recent market crisis had on the performance of the funds and by David Pace Ross from BOV who gave a presentation on the local market quarterly highlights.
The seminars are organised by VFM on a quarterly basis to keep BOV licensed sales personnel abreast with the developments in the local and international market as well as on the performance of the VFM’s range of funds.
