BOV's Valletta Fund Management denies press entry to AGM

The press has been denied access to the annual general meeting of Bank of Valletta’s investment arm Valletta Fund Management, where shareholders today are expected to ask questions on the performance of the property fund and the investigation by the Malta Financial Services Authority.

Paul Bonello, the managing director of Finco Treasury Management who filed the first judicial protest against the bank over the €50 million in losses of the La Vallette Sicav property fund, has given members of the press access to the AGM through shareholders’ proxy votes.

A BOV spokesperson told MaltaToday that VFM’s policy is not to allow media representatives during such meetings. “Indeed, general meetings are meant to be meetings of shareholders who are the only persons eligible to attend.  We therefore regret to inform you that your request has to be declined.”

The bank allows members of the press to give wide coverage to its annual general meeting during the announcement of its annual profits.

Paul Bonello said Finco considered the issues that arose in the property fund, the subject of an MFSA investigation – so far concluded but not yet published – “important from a general economic and social viewpoint, particularly in the field of investor protection.”

MaltaToday will be attending the VFM annual general meeting, but will not be using its proxy to vote on matters that are shareholders’ interests.

Over 200 investors claim Bank of Valletta is responsible for the way its La Vallette multi-manager property fund, once valued in excess of €84 million, was depleted to €24 million.

Specifically, it was a €17 million investment in the Belgravia European Property Fund that lost in excess of 90% and is today estimated at €1.3m, while other investments originally valued at some €47 million have fallen to €18.5 million.

The investors filed numerous judicial protests, but never filed a formal legal case, against the bank. In one judicial protest, the investors claim BOV had not informed investors of an application on 17 March, 2008, to redeem part of the investment in the Belgravia European Property Fund, which was not accepted because the fund had already been suspended.

The MFSA carried out an investigation and has delivered its findings to the bank, which has 30 days to answer the authority on its findings.