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Valletta Fund Management Limited has launched a new fund within the La Valette Funds SICAV plc on the market – the La Valette FTSE 100 Index Capital Guaranteed Fund. The new fund is aimed at investors seeking both growth potential over the longer term as well as preservation of capital.
The La Valette FTSE 100 Index Capital Guaranteed Fund is a six year investment solution denominated in Pound Sterling. As the name implies, the investment return of the Fund is linked to the potential growth of the FTSE 100 Index over the investment period.
The Fund has been designed with some innovative features. Apart from the traditional 100 per cent capital guarantee, this Fund comes with a minimum guaranteed return of three per cent, which will be paid at the end of the investment period.
More importantly, one of the key benefits of this Fund is the enhanced participation rate of 125 per cent of the potential growth of the FTSE 100 Index, with no ceiling on the growth of the Index.
In order to avoid the impact on the Fund of a possible fall in the value of the FTSE 100 Index upon Termination Date, the growth of the Index will be determined upon the average of the closing levels of the Index on quarterly observation dates of the last three years of the investment period, in relation to the Initial Index level as at 28 March 2005. Whilst averaging is designed to counter market movements, averaging may reduce the investment potential and therefore may reflect only some of the performance of the Index. In any event, the Minimum Return of 3% payable to investors is always guaranteed irrespective of the performance of the FTSE 100 Index.
If at the end of the investment period, the growth attributable to investors is not in excess of the minimum guaranteed return, the management fee of two per cent of the net asset value will not apply. In any event, the minimum return of three per cent payable to investors is always guaranteed.
Another innovative feature of this Fund is the level of accessibility even though the investment term is of six years. Valletta Fund Management will be issuing the net asset value of the Fund twice a month, this being every other Thursday of each month wherein investors may redeem their shares in the Fund at the applicable net asset value less a 2.5 per cent exit fee.
The Fund has also been designed to accommodate investments from a low minimum entry level of GBP1,000 (and multiples of GBP100 thereafter).
During the offer period from the 23 February 2005 to the 22 March 2005 (although the offer period may close earlier), investors may buy shares in the Fund at a fixed price of GBP1 per share.
Additional information on the La Valette FTSE 100 Index Capital Guaranteed Fund and a copy of the Supplementary Prospectus may be obtained from Valletta Fund Management Limited by calling on Freephone 8007 2344 or by visiting any branch of Bank of Valletta in Malta or Gozo or any licensed financial intermediary.
The value of the Fund may fall as well as rise and currency fluctuations may affect the value of the investment. For redemptions effected prior to Termination Date, the capital and the Minimum Return guarantee do not apply. The Fund is subject to the credit risk of the Guarantor and the Approved Counter Party. Hence, there can be no assurance that the Investment Objective of the Fund will be achieved. Societe Generale, Paris is the Guarantor of the zero medium term notes by virtue of a Deed of Guarantee dated 14 January 2005. Societe Generale is a limited liability corporation established under French law and having the status of a bank.
Investments should be based on the full details of the Supplementary Prospectus. Valletta Fund Management (VFM) and the Fund are licensed by the MFSA. La Valette Funds SICAV plc has been licensed by the FTSE International Limited to use FTSE 100 Index. FTSE International Limited does not sponsor, endorse or promote this Fund and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading. This advert has been issued by VFM of Level 6, The Mall Offices, The Mall, Floriana VLT 16. Tel: 21227311, Fax: 21234565, email: infovfm@vfm.com.mt.
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