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4 NEWS 28.10.2021 MERILL SICAV plc has launched a new EUR distributor share class of its Merill High Income Fund, which is set up in a way to maximise further the income payable to investors. is new share class addresses the needs of a segment of investors that have income as their primary investment objective. As a result, Merill SICAV felt the need to extend its product range by launch- ing this new share class, focused on high income distribution, whereby the new share class will pay out an income yield gross of fees. Merill SICAV plc has surpassed the important milestone of €150 million in assets under management. e fund size of the Merill High Income Fund is €62.7 million, as at end August 2021. Jesmond Mizzi Financial Advisors Lim- ited acts as fund and portfolio manager of Merill SICAV plc, which is a mul- ti-fund structure and has currently es- tablished four sub-funds, namely Merill Total Return Income Fund, Merill High Income Fund, Merill Global Equity In- come Fund, and Merill Strategic Bal- anced Fund. It is a self-managed UCITS. "We strongly believe in the impor- tance of diversifying investments and that investments are actively managed on an ongoing basis. Investing in funds is an ideal way of reaching this goal, and this is why we are now providing our clients with the opportunity to opt for the most suitable share class of the Mer- ill High Income Fund EUR depending on their income needs," said Jesmond Mizzi, Managing Director of the fund manager. "e new Merill High Income Fund EUR C share class aims to provide an estimated yield of circa 4.06%* annu- ally, which is paid out quarterly, and also aims to potentially generate capital growth," said Dr Mark Azzopardi, Co- Fund Manager. Besides investing directly in interna- tional and local bonds, the Merill High Income Fund invests also in interna- tional renowned fund houses, such as Janus Henderson Investors, Legg Ma- son, Aegon Asset Management, Fideli- ty, Invesco and Brooks Macdonald In- ternational - amongst others. Existing Merill investors can invest in this new EUR share class with a mini- mum lump sum investment of €5,000. e minimum investment for new cli- ents is of €20,000. Online investments can be made with a minimum amount of €2,500. More information is available in the Fund's prospectus and offering supple- ment, available from our offices or from www.merillfunds.com. One can call Freephone 8007 2206 to set-up an ap- pointment with a financial advisor. Merill High Income Fund launches new investment opportunity 65% of firms report higher business activity IN the third quarter of 2021, business conditions have continued to improve, with 65% of firms contacted reporting higher activity and 16% reporting a de- crease. us, a net 49% of respondents reported an increase in activity over the three months preceding the interview, up from 28% in the second quarter. Almost half of the firms interviewed re- ported that they expect business activity to expand over the next three months, while 11% anticipated a decline. Moreo- ver, the share of contacts reporting that the outlook was uncertain receded fur- ther. Cost pressures have remained elevated in the quarter under review, with almost two-thirds of contacts reporting that in- put prices have increased. In part due to elevated cost pressures, around 39% of firms interviewed reported an increase in their selling prices. However, 14% re- ported reductions in selling prices, while almost a half of the firms interviewed left selling prices unchanged. In the third quarter, 73% of respond- ents claimed to have continued their in- vestment plans as scheduled, while 14% reported postponement. e share of respondents that cancelled investment plans rose marginally to 3%. In view of the increase in activity, a net 37% of firms plan to increase their staff complement. However, more firms dur- ing the quarter under review have ex- pressed concerns about labour shortages. CENTRAL BANK OF MALTA Central Bank of Malta Business Dialogue 3/2021 6 reporting uncertainty remains elevated compared to other sectors and marginally above that in the second quarter. Firms expressing this view were mainly retailers of durables, electronics, and clothing and footwear. Firms' investment and hiring plans are encouraging During the initial stages of the pandemic, a substantial number of firms had halted their invest- ment plans, primarily due to the elevated level of uncertainty. However, the survey shows an increase in the percentage of companies that have continued with their investment plans in recent quarters. Indeed, almost three-fourths of companies contacted during the third quarter of 2021 reported that their investment plans remain on track, compared to 69% in the previous quarter. This was partly because some of the projects had been committed far in advance or work had already started (see Chart 3). The number of companies claiming that they postponed or paused their investment plans and adopted a 'wait-and-see' approach remained broadly unchanged to the previous quarter's, at 14%. Moreover, only 3% of the firms contacted cancelled their capital expenditure. These companies operate in the wholesale and retail and in the services sector. Around a tenth of the contacts made in the third quarter claimed that they did not have any invest- ments planned, compared to 16% in the previous quarter. Looking at investment plans by sector, 81% of manufacturing companies contacted in the third quarter reported that they had continued with their plans, while 13% postponed their investments (see Table 1). The share of firms reporting that investment plans have continued as scheduled was also high in the wholesale and retail sector, at 78%. This share was lower in the services sector and in real estate and construction, where slightly more than two-thirds of respondents continued with their planned expenditure. When asked about employment plans, the responses collected reveal a small increase in the share of firms that plan to recruit more staff, with 41% of all firms interviewed plan- ning to increase staff. This was slightly up from 39% in the second quarter, but sig- nificantly more than what was recorded in previous quarters. The share of firms expecting to shed labour increased slightly to 5%, from 2% in the previous round (see Chart 4). However, these are mostly companies that are not replacing work- ers who voluntarily resigned. Consequently, a net 37% of respondents anticipate higher 0 10 20 30 40 50 60 70 80 Continued as scheduled No investments planned Postponed/ put on hold Cancelled 2021 Q2 2021 Q3 Notes: The question put to respondents was as follows "How have you changed your investment plans for this year?" Source: Central Bank of Malta Business Dialogue. Chart 3 INVESTMENT PLANS (percentage of companies contacted) hand, firms operating in the ser- vices sector were more likely to report increased costs related to COVID-19 preventative mea- sures, including reduced capac- ity and social distancing. Mainly as a consequence of the steep increase in input prices, 39% of firms reported an increase in selling prices during the third quarter of 2021, slightly higher than the 37% recorded in the previous quar- ter (see Chart 6). Only 14% of respondents reduced prices, 0 10 20 30 40 50 60 Increased Decreased Unchanged 2021 Q2 2021 Q3 Notes: The question put to respondents was as follows "Did you change your selling prices?" Chart 6 CHANGES IN SELLING PRICES (percentage of companies contacted) Source: Central Bank of Malta Business Dialogue. Investment Plans (percentage of companies contacted) Changes in Selling Prices (percentage of companies contacted) Current Business Conditions (contributions to net balance) an condi- pre- of con- unchanged under contin- services, wholesale activ- real to major- -30 -20 -10 0 10 20 30 40 50 60 70 2021 Q2 2021 Q3 Chart 1 CURRENT BUSINESS CONDITIONS (contributions to net balance) Improved Worsened Net Balance Source: Central Bank of Malta Business Dialogue. Notes: The question put to respondents was as follows "How have business conditions developed over the past three months?"

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