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 from around the world.
The fund was portrayed as ‘a low-risk fund with low volatility’, giving good returns even when bonds or equities do badly. But the 170 investors say their investments have been reduced to less than 25% of their initial investment.
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