Showing posts from August, 2010

BOV passes EU stress test but faces judicial protest from property fund investors.

170 investors file new judicial protest against Bank of Valletta over property fund

Investors say BOV did not respect its own investment restrictions when it chose the investments for its property fund.
Bank of Valletta are facing renewed claims of having overlooked serious shortcomings in a property fund once valued in excess of €84 million, and which today has been depleted by major losses to the €30 million – of which only half are liquid.

This is the second judicial protest filed by a group of investors, after another firm, Finco Treasury Management, first filed a protest on 4th July in respect of 72 investors registered in its name. Now the new claims have intensified pressure on Bank of Valletta to answer to accusations that it invested money without the necessary due diligence.

The Multi-Manager Property Fund, which is managed by Valletta Fund Management, itself owned jointly by BOV and Insight, invested money in what should have been the best pick of real estate property funds …