Malta's Gasan Group Launches First Management Fund Firm

by Carla Johnson, Investors Offshore.com

05 June 2001

The Malta-based Gasan Group launched its first fund management firm last week with the offer of three international funds - "The Gasan International Equity Growth Fund", "The Gasan International Diversified Growth Fund" and "The Gasan International Lower Risk Fund" - and a local fund, "The Gasan Enterprise Fund."

Company chairman, Joe Gasan told the local press: 'Notwithstanding the turbulent climate which we are currently witnessing in the local investment scenario, we firmly believe that the financial services industry will continue to expand. I would like to think that the prevailing depressing situation will result in a more mature understanding of the factors which affect one`s investment, especially in bonds and shares.'

Attending the launch was Finance Minister, John Dalli, who welcomed Gasan's initiative and also claimed financial services in Malta has increased considerably over recent years. He said this was due to the inauguration of the MFSC in 1994 as he declared: 'The MFSC have already granted 97 investment services licences and the total licensed funds number 344. However, what is significant for Malta is that we are witnessing the launch of indigenous funds - funds that are conceived locally, registered locally and providing a wide range of investment opportunities both locally and overseas. My Government considers this to be an important development because we would like to see more locally conceived and nurtured investment instruments.'

He continued: 'In Malta we have a unique situation where local investors are taxed a final withholding tax of 15% on interest earned. So far, financial centres around the world have been making it possible for investors from other countries to invest at even a zero tax.'

He commented on the international pressure on all financial centres to exchange information on investments made by their citizens but he assured his listeners that Maltese investors with investments within the Island itself 'should feel safest and most protected.' He explained, 'the situation in Malta is that government, through its departments, can only scrutinise bank accounts and holding in funds if the final beneficiary is seeking government social benefits and in so doing instructs the financial institution to give information to government on request.'

'For those who decide to convert their holdings in Maltese Lira, they would also have protection against exchange risk. This is why I recently stated that people with overseas investments should consider seriously bringing their money back to Malta without fear about their financial affairs being scrutinised by the tax authorities. During this year we have re-established equilibrium in the investment environment in Malta by redressing the unfairness that was being created by accumulator funds that were avoiding tax on interest by disguising them as capital gains,' Mr Dalli added.

Gasan is offering a reduction on the "Gasan Enterprise Fund" of 50 per cent on initial fees on investments until June 22 and there is a minimum investment of Lm500 and for the three international funds minimum investment is set at CY£1,500.

Recommended