Wignacourt Funds SICAV reports 28.62% asset value increase

Wignacourt Funds SICAV plc has issued its annual report and financial statements for the year ended May 31, 2004. The net asset value of the Wignacourt Funds SICAV plc as at May 31, 2004, stood at Lm13.66 million, a 28.62% increase on that of May 31, 2003, which stood at Lm10.62 million.

The Wignacourt Funds SICAV plc features one portfolio - the Wignacourt Malta Fund, which has available both an accumulation class of shares and a distribution class of shares, which distributes income annually.

The Wignacourt Malta Fund gives investors access to a diversified portfolio of equities and bonds, principally denominated in Maltese lira and which are issued by Maltese corporate issuers and the Government of Malta.

The fund may also have a limited exposure to non Maltese lira-denominated bonds and equities that may be issued in or outside Malta.

Commenting on the factors that led to these positive results, Kenneth Farrugia, assistant general manager of Valletta Fund Management, said: "During the financial year under review, the quoted share price of the Wignacourt Malta Fund rose by 29.91% from Lm0.682 as at May 31, 2003, to Lm0.886 as at May 31, 2004. The quoted share price rose further to Lm0.973 as at September 17, 2004 (accumulator class).

"As from launch of the Fund on March 6, 2000, to September 17, 2004, the quoted share price of the fund fell by 2.7% from Lm1 to Lm0.973. The main factors that have contributed to the fund's recovery have been primarily the strong performance of the equity market, which coupled with higher turnover levels on the equity side indicates that investors are gradually returning to favour equities and/or equity-based products."

Mr Farrugia added that "throughout the year, Bank of Valletta plc, Maltacom plc and HSBC Bank Malta plc announced encouraging results and an increase in the respective dividend payouts to which the market responded positively. This, together with the official confirmation by the Government of Malta of its intention to sell its shareholdings in listed companies, should continue to attract investors to the market."

Commenting on the future outlook expected for the Wignacourt Malta Fund, Mr Farrugia added that companies were generally expected to continue reporting increasingly positive results.

"This, with interest rates being at historic lows, is expected to have a positive impact on the performance of the Wignacourt Malta Fund during the next financial year," he said.