Misrepresentation can be borderline fraud

Bank of Valletta basically banks half of the Maltese population much of which is semi-literate and uneducated in financial matters.

I’m a very liberal person who believes that people have the right to do whatever they want with their money, but I also have a strong sense of justice and I think that misrepresenting financial products to an uneducated public is fraud and evil. Like, really, why don’t you go find something productive to do in society other than ripping off people?

Bank of Valletta is promoting their “Vilhena High-yield Fund” with potential 6% returns. 6% in finance is not a high yield because the average market yield is 15%. 6% is a low yield and this fund that BOV is promoting that supposedly provides a high yield is 20% down since its inception and is loaded with corporate bonds from issuers who are completely unheard of. If you would have held your investment from 2014, you would have lost 20% of your funds and if you would have invested last year, you would have made 3.5%, on your investment but cutting the fees would have meant you have lost money or stayed flat.

On top of losing money, the funds takes 3.5% of your total deposit in fees on top of 1.25% in yearly fees. These are unusually extremely high rates.

Like, really guys, I hope you are reading this, the portfolio managers, Adam Mossakowski, Uli Gerhard and BOV’s chairman, and bella campania, why don’t you go to hell? Or rather, put all of your money in any garbage you sell to people so that at least, you may have the decency of having skin in the game. Otherwise, you are just incompetent fools who can only make money out of uneducated people, and you don’t deserve to be managing their money. The reality is, and you know it, that if you present your results for a job application to a serious finance professional, he or she would laugh you off.

Updated: Indeed, ordinary people who have invested in BOV funds are commenting under the advert and they are apparently furious. They have all the right to be angry because they have been duped with these fake promises and fraudulent misrepresentations. These are ordinary people who trust their life savings to these grifters. And this is also why I have no problem being very hard on fund managers because apart from hurting ordinary people, they also hurt the overall fund industry by tarnishing its reputation.