Wignacourt funds register significant increase in quoted share price

Wignacourt Funds SICAV plc recently published its annual report and financial statements for the year ended May 31, 2005, reporting an 8.04% increase in its fund size from Lm13.675 million on May 31, 2004, to Lm14.775 million on May 31, 2005. The SICAV's shareholders were hosted to the fifth annual general meeting on Tuesday.

The quoted share price of the Wignacourt Malta Fund accumulator class rose 26.18% from Lm0.886 to Lm1.118. From launch on March 6, 2000, to last May 31, the quoted share price increased by 11.8%.

The quoted share price of the distributor class of shares increased by 24.71% from Lm0.886 to Lm1.105 for the year ended May 31, 2005. As from the date when the distributor class of shares was made available on December 11, 2003, to last May 31, the quoted share price increased by 47.53% from Lm0.749 to Lm1.105.

Kenneth Farrugia, general manager at Valletta Fund Management, commented on the factors that led to these results: "The sentiment towards Maltese shares remained buoyant and trading activity picked up significantly as demand increased, which led to a very satisfactory performance of the market.

"The Malta Stock Exchange (MSE) Ordinary Share Index appreciated by 33.31% from 2,561.261 points as at May 31, 2004, to 3,414.575 points as at May 31, 2005.

"Ten of the 13 listed shares registered gains. Four of the positive movers outperformed the MSE Share Index during the period under review. This positive trend led to an improved performance for the Wignacourt Malta Fund.

"In fact, during the period under review, the fund registered a remarkable performance for the second time since its launch."

Commenting on the fund's composition of the portfolio and the investment activity of the fund, Mr Farrugia said: "The fund's largest exposures were in fact among the best performing shares, led by the major banks, Malta International Airport plc (MIA) and Middlesea Insurance plc (MSI).

"Among the various shifts within the fund's portfolio throughout the reporting period, the investment advisor increased the fund's position in three equities - MSI, MIA and FIMBank plc. Concurrently, the investment advisor maintained the fund's positions in the two major banks, Bank of Valletta plc and HSBC Bank Malta plc."

On the fund's fixed income securities, Mr Farrugia added: "In the bond market, primary market demand for Malta Government Stocks remained high with both retail and wholesale demand significantly outweighing availability.

"Yields in the secondary market remained generally stable, especially during the first half of the period under review as trading activity slowed on account of the low levels of supply.

"Confidence levels have undoubtedly increased throughout the past 12 months as Malta's entry into ERM II paves the way for the country's eventual adoption of the euro, possibly in January 2008.

"This development, coupled with the encouraging outlook for most listed companies, is likely to install further confidence.

"Launched in early 2000, the Wignacourt Malta Fund invests principally in Maltese equity and debt securities that listed on the Malta Stock Exchange."