Portfolio Management Europportunities from Valletta Fund Management

1. Portfolio Management Europportunities from Valletta Fund Management Mark Vella 18th January 2007

2. Presentation Agenda • Valletta Fund Management Overview • Range of Investment Solutions • Euro denominated Funds Overview • La Valette Euro Money Fund • La Valette Euro Income Fund • Vilhena European Multi Manager Fund • Vilhena Dynamic Multi Manager Fund • La Valette Multi Manager Property Fund • Conclusion – Few thoughts

3. Valletta Fund Management Overview

4. Valletta Fund Management • Set up on 6th June 1995 • The first company in Malta to be licensed by the then Malta Financial Services Centre • To Promote andDevelop Collective Investment Schemes in and from Malta • Funds Under Management –€710 m Source: VFM as at end December 2006

5. Valletta Fund Management Company Shareholders

6. Insight Investment • Insight Investment is the Asset Management Company of the HBOS Group • £92.9bn in assets under management • HBOS: A strong and committed parent • AA-/Aa2 rating • Top 10 UK company by market cap • UK’s largest savings company • Strong retail and corporate client base • A committed management team 100%

7. Range of Euro Denominated Investment Solutions

8. Range of Investment Solutions Money Funds Bond Funds Equity Funds Property Fund Lm Denominated Malta Bond Fund Vilhena Malta Govt. Property La Valette Multi Manager Property Lm Denominated Wignacourt Malta La Valette Malta Institutional Class € and Lm Investment Grade Monthly Income Euro Income Sterling Income Retail Class €, Lm, US$ & £ International Capital Growth £ International Equity US$ European Opp € Top 100 Far East Capital Guaranteed Sub Investment Grade High Yield Bond Balanced Funds Mediterranean Rim Vilhena Malta Fund Vilhena Dynamic Multi Manager Multi Manager European, US & UK FTSE 100 Index

9. La Valette Euro Money FundInstitutional & Retail Class

10. La Valette Euro Money Fund Investment Objective • The investment objective of the Fund is to provide a flexible and stable alternative to bank deposits. • Providing investors with a low risk short-term capital growth investment solution. • The Fund invests in a portfolio of bank deposits held with high standing deposit taking institutions • The fund invests in the Insight Euro liquidity Fund (€719m) with a well diversified portfolio of securities, instruments and obligations that carry a minimum rating of A1 for short-term investments. • The fund carries a AAAm rating from Standard & Poors'. Source : Insight, IPD

11. La Valette Euro Money Fund • Choice of Institutional and Retail Class of Shares • Current Yield • Institutional: 3.26% • Retail: 3.15% • Efficient means of Liquidity management

12. La Valette Euro Income Fund

13. La Valette Euro Income Fund Investment Objective • The Fund aims to achieve a reasonable level of income with the possibility of capital growth through investment in debt securities consisting principally of Euro denominated securities. • The Fund invests in government and corporate bonds, as well as other fixed interest securities with a credit rating of • AAA • AA • A • BBB Investment Grade Source : Insight, IPD

14. La Valette Euro Income Fund Fund Manager: Lucy Speake Fund Size: €23.71m Income Yield: 3.46% Calendar Year to Date: 2.40% • Last Month: -0.61% • Last 6 Months: 2.40% • Last Year: -0.28% Past Performance is not necessarily a guide to future performance The value of the investment may fall as well as rise. * This Return is an indication of the average return of the Fund over one year. Any sharp fluctuations in the performance of the Fund over a period of time are not necessarily represented by the annualised return indicated. Source: Valletta Fund Management

15. La Valette High Yield Fund

16. La Valette High Yield FundInvestment Objective • The fund aims to generate a high level of income through investment in below investment grade securities whilst also generating capital appreciation • The Fund’s benchmark is Lehman Brothers Pan-European 3% issuer constrained • Base Currency Euro • invest able universe of securities would include G7 currencies plus other Euro based currencies including GBP, NOK, DKK, SEK, and CHF • at least 51% will be GBP/EUR denominated • currency exposure will be hedged The Fund is a high-risk fund investing in sub investment grade debt instruments. Such instruments are highly speculative and carry significant risk of default. The Fund is thus only suitable to investors who are willing to accept such risks

17. La Valette High Yield Fund Fund Manager: Craig Abouchar Fund Size: €13.22m Income Yield: 5.77% Calendar Year to Date: N/A • Last Month: 1.77% • Last 6 Months: 4.63% • Last Year: N/A Past Performance is not necessarily a guide to future performance The value of the investment may fall as well as rise. * This Return is an indication of the average return of the Fund over one year. Any sharp fluctuations in the performance of the Fund over a period of time are not necessarily represented by the annualised return indicated. Source: Valletta Fund Management

18. Vilhena European Multi Manager

19. Vilhena European Multi Manager Investment Objective • The objective of the Vilhena European Multi-Manager Fund is to achieve long-term capital growth. • The Fund is invested predominantly in units of Collective Investment Schemes which invest in any sector of the economies of European countries, with a focus on member states of the European Union. Source : Insight, IPD

20. Vilhena European Multi Manager Fund Manager: Francois Zagame Fund Size: €19.33m Annualised Return: 20.74% *(from Launch 22-06-2004 to 31-12-2006) Calendar Year to Date: 20.32% • Last Month: 5.22% • Last 6 Months: 17.30% • Last Year: 20.32% Past Performance is not necessarily a guide to future performance The value of the investment may fall as well as rise. * This Return is an indication of the average return of the Fund over one year. Any sharp fluctuations in the performance of the Fund over a period of time are not necessarily represented by the annualised return indicated. Source: Valletta Fund Management

21. Vilhena European Multi-ManagerAsset Allocation

22. Vilhena Dynamic Multi Manager Fund

23. Vilhena Dynamic Multi Manager FundInvestment Objective • The Fund is designed to provide investors with a portfolio of investments diversified across several asset classes and markets, aiming for the Fund to be a resilient investment in all market conditions • The asset allocation of the fund is achieved through a careful selection of a wide range of investment funds, which are constantly monitored by the Fund’s sub investment Manager. • It aims to deliver a 4% plus cash return on a consistent basis

24. Vilhena Dynamic Multi Manager FundAccess to new investments Multi-region, multi-asset class fund – with the flexibility to move in and out of asset classes Offers access to specialist investments not widely available to private investors Multi-manager approach choosing the best of breed Non-Traditional Assets Absolute Return Funds Commodities Property Funds Traditional Asset Classes Shares Bonds Cash

25. La Valette Multi Manager Property Fund Eur64.7 million as at 16.1.2007 11.46% annualised return since launch

26. La Valette Multi Manager Property Fund Investment Objective • The objective of the Fund is to provide investors with income and long-term capital growth • The Fund is predominantly invested in units of Collective Investment Schemes which invest directly or indirectly in property in the UK and European countries • The Fund may also invest up to 10% of its holdings in other countries, currently focused on Asia Pacific Source : Insight, IPD

27. La Valette Multi Manager Property Fund - Performance • Objective of fund is to produce capital return and yield with a low risk fund • Total return in 2006 in line with expectations at launch • Very low volatility (3.67%) • Low equity market correlation • Outperformed Eurozone property benchmark Source : Insight, IPD

28. La Valette Multi Manager Property Fund - Positioning • European biased portfolio with a cautious positioning in UK real estate • Allow managers to allocate between sectors. Maintain flexibility to allocate in different regions • Tactical allocation to Asian and Eastern European property • Blend between direct and indirect property investment Source : Insight

29. Conclusion – A Few Thoughts

30. Conclusion – Final Thoughts Local Equity Based Fund Local Bond Based Fund Specialist Fund Vilhena Dynamic Return Fund Income Strategies Property Fund Direct Investments

31. Conclusion • When investing give due consideration to diversification to minimise risk - asset class, by currency, by market • VFM provides a choice of four different Asset Classes • Choice of Conservative, Balanced, Growth and Property strategies with accumulator or distributor share classes • Seek advice if you find it difficult to decide where to invest your money • Review your portfolio from time to time as your circumstances and needs may change over time • We invite you to attend such meetings and others that we organise in order to keep you updated with market developments

32. Thank You Mark Vella Head of Marketing Valletta Fund Management Limited www.vfm.com.mt

33. Important Information Past performance is not necessarily a guide to future performance and the value of the investments and the currency in which they are denominated may fall as well as rise. Investment in any funds referred to in this presentation should be made on the full details of the relative prospectus which may be obtained from Valletta Fund Management, Bank of Valletta Branches and other licensed financial intermediaries. The sub funds of the La Valette Funds SICAV plc and Vilhena Funds SICAV plc are licensed as collective investment schemes by the MFSA. Valletta Fund Management Limited is licensed to conduct investment services business for collective investment schemes by the MFSA. Valletta Fund Management Limited, Level 6, The Mall Offices, The Mall, Floriana VLT 16 Malta.