|
|
Investec GSF Global Strategic Equity Fund A Inc - News
|
|
|
|
|
Investec GS Global Strategic Value comment -Dec 09
|
|
Friday, 26 March 2010
|
Fund Manager Comment
|
Market Background
Global equity markets continued to move ahead in December as investor confidence levels maintained an upward trend helped by continued positive economic news and low interest rates. This was in spite of a large amount of new issuance, particularly from the banking sector.
Industrial and technology stocks led the trend, reflecting expectations of further recovery during 2010 and positive news flow regarding sales and industrial production levels over the course of the month. The healthcare sector also enjoyed some renewed interest following the ratification of separate bills for US healthcare reform by both the Senate and the House of Representatives, with both excluding a public plan option (where the State provides healthcare in place of the private sector). The final draft of the bill remains to be fine tuned but there is a growing belief that the legislation could prove less onerous for healthcare companies than had been initially feared.
Financial stocks generally underperformed after a huge amount of new issuance from the banks in an attempt to free themselves from the Troubled Asset Relief Programme (TARP) restrictions and to bolster capital ratios. Citigroup, Wells Fargo, Bank of America, Lloyds and Mitsubishi UFJ all raised billions of dollars in the capital markets at a time when concerns over new Basel 3 regulatory requirements regarding leverage and capital are causing uncertainty in the sector.
Oil stocks did little during the month, as both Exxon and Total moved to make acquisitions (the former for XTO Energy and the latter for Chesapeake Energy) and mining stocks were also held back by a recovery in the US dollar. It has been interesting however that in the latter part of the month, metal and oil prices began to rise again despite further appreciation of the currency.
Japan also saw a reversal in its currency. This was accompanied by a sharp recovery in export related stocks in Tokyo as investors perceived that competitive advantage was being gained from a cheaper yen.
Overall, market volumes remained low and volatility declined in December, perhaps the most important indicator that the normalisation process taking place in the world's capital markets continues apace.
Fund Performance
The Investec GSF Global Strategic Equity Fund returned 2.2% in December ('A' shares, net of fees, in US dollars), while the MSCI World Index returned 1.8%.
The Fund's outperformance was helped primarily by stock specific events. Japan Tobacco was a stand-out performer as a result of the announcement of higher tobacco taxes in Japan and an incremental price rise for its products. Nissan Motor also did well as the weakness in the yen drove investors into manufacturing stocks in the country. Elsewhere, the Fund's emerging markets exposure in Turkey did particularly well, with both Halk Bank and Turkish Airlines benefitting from government proposals to reduce taxation on fixed income instruments. H&R block also performed well as investors responded to the new management's vision and the imminent tax reporting season in the US. CBS Corp contributed positively as evidence begins to mount that the advertisement spending cycle is beginning to move upwards again.
Our lack of exposure to index heavyweight Exxon helped performance as the stock fell on the poor reception to its decision to buy XTO in an all stock deal.
On the negative side our holdings within financials (with the notable exceptions of IG Holdings and Halk Bank) performed poorly as the flood of paper to the market washed away interest in the sector. Citigroup, Regions and Bank of America all performed relatively poorly but in our opinion are likely to offer good value when the credit cycle is seen to have turned.
Portfolio Activity
Significant Purchases
AOL is a web-services company which has spun-off from Time Warner. AOL's challenges are well known as the company's subscription business and web properties have struggled over the last ten years. However, recently, both the access (ISP) and advertising businesses are showing signs of stabilisation with the former being a significant, stable cash generator for the company. With new management in place, focus will be on growing the advertising business funded by these cashflows. We believe there is a strong valuation case here with a free cashflow yield of over 20%.
Arcelor Mittel is a high quality, attractively valued steel manufacturer benefitting from rising scrap prices. Upgrades are coming through as capacity utilisation increases and benefits from rising iron ore prices because of its high level of integration relative to other steel makers.
Significant Sells
KBR was sold due to declining revenues from its government and infrastructure segments, resulting in earnings downgrades. In addition, the continual decline in services-related backlog puts pressure on the forward valuation case.
Market Outlook
Entering 2010, we believe the world's equity markets are in reasonable condition. Functionality in the credit markets has returned and equity raising in both the primary and secondary markets has gathered momentum, further enhancing the general strength of corporate balance sheets. Money has now begun the next stage in the transition from cash to bonds and is moving strongly to equities as risk appetite continues to grow as a result of greater confidence and the paucity of alternative income producing assets.
In our view, this process is likely to continue through 2010, although government support for capital markets may be gradually withdrawn and the funding markets would then have to function without it. We also worry about the extent of the legislative wave that approaches the financial sector and how the balance between capital adequacy and provision of finance to the corporate and consumer sectors is achieved.
Following on from a year where deep value has been rewarded, we look to 2010 as the year when those corporations that succeed in delivering an enhanced operating performance at a time of muted, but positive economic performance may be rewarded by the investment community. Especially as clear value opportunities are likely to be significantly less prevalent (with perhaps the exception of the financial sector).
We would also anticipate a stronger focus on quality as institutional money flows to equities. Quality companies have been broadly neglected as buyers have looked for cyclical exposure rather than size and strength and this group appears good value relative to its history.
In this context, we expect further progress for markets in the medium term but anticipate more broadly based leadership where quality is added to the mix of value and momentum factors.
|
| |
|
Investec GS Global Strategic Equity comment -Sep09
|
|
Tuesday, 15 December 2009
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
|
| |
|
Investec GS Global Strategic Equity comment -Jun09
|
|
Sunday, 13 December 2009
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
|
| |
|
Investec GS Global Strategic Value comment -Mar 09
|
|
Tuesday, 9 June 2009
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
The Fund's AA rating from Standard & Poor's and an AA rating from OBSR recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Dec 08
|
|
Friday, 27 March 2009
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
The Fund's AA rating from Standard & Poor's and an AA rating from OBSR recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Sep 08
|
|
Thursday, 27 November 2008
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate wide spread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
The Fund's AA rating from Standard & Poor's and an AA rating from OBSR recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Jun 08
|
|
Monday, 15 September 2008
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the share price.
The Fund's AA rating from Standard & Poor's and an AA rating from Forsyth Partners recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec Global Strategic Value wins Raging Bull A
|
|
Friday, 9 February 2007
|
Official Announcement
|
The Investec GSF Global Strategic Value Fund won the Best Offshore Global Equity Fund Straight Performance Raging Bull Award 2006. The fund had the highest ProfileData total investment return ranking over three years to December 2006 in ProfileData's Offshore Global Equity General sector.
Funds were ranked as at 31 December 2006 on a three-year lump-sum NAV-to-NAV basis (ie, entry costs were not taken into account) with income distributions reinvested at the ex-div date. Calculations by ProfileData.
|
| |
|
Name Change
|
|
Thursday, 1 February 2007
|
Official Announcement
|
The Investec GSF Global Strategic Value fund has changed its name to the Investec GSF Global Strategic Equity Fund with effect from the 15/12/2006.
|
| |
|
Investec GS Global Strategic Value comment -Jun 05
|
|
Friday, 29 July 2005
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change.
Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the stock price.
The Fund's A-rating from Standard & Poor's and AA rating from Forsyth Partners recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Mar 05
|
|
Wednesday, 22 June 2005
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the stock price.
The Fund's 'A' rating from Standard & Poor's and 'AA' rating from Forsyth Partners recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Dec 04
|
|
Friday, 28 January 2005
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change.
Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
In addition, the elimination of tariff barriers and regulatory restrictions, ownership change and the introduction of new technologies all offer potential for investors. The Fund aims to take advantage of the value unlocked by change by using its disciplined evaluation process. Each prospective investment needs to meet the Fund's strict criteria of a history of value creation, attractive valuation, an improving earnings outlook and upward momentum in the stock price.
The Fund's A-rating from Standard & Poor's recognises the strength of management and capacity of its investment process to continue to profit from the dynamic global environment.
|
| |
|
Investec GS Global Strategic Value comment -Sep 04
|
|
Monday, 1 November 2004
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
The Fund aims to buy companies undergoing a metamorphosis, where upside potential is not reflected in the share price. The majority of the Fund's holdings are biased towards privatised companies in developed markets, but it also holds growing companies in emerging markets and firms undergoing restructuring.
Corporate restructuring is an ongoing phenomenon, even with the improvement in global equity markets and economic growth. Better markets have actually facilitated change, as state organizations take advantage of more favourable conditions to list spin-offs and troubled companies are able to access equity capital to reshape their businesses into a more viable form. The global environment remains fiercely competitive, demanding dynamic evolution and generating a stream of investment opportunities for the Fund.
|
| |
|
Investec GS Global Strategic Value comment -Jun 04
|
|
Tuesday, 17 August 2004
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
The Fund aims to buy companies undergoing a metamorphosis, where upside potential is not reflected in the share price. The majority of the Fund's holdings are biased towards privatised companies in developed markets, but it also holds growing companies in emerging markets and firms undergoing restructuring.
Corporate restructuring is an ongoing phenomenon, even with the improvement in global equity markets and economic growth. Better markets have actually facilitated change, as state organizations take advantage of more favourable conditions to list spin-offs and troubled companies are able to access equity capital to reshape their businesses into a more viable form. The global environment remains fiercely competitive, demanding dynamic evolution and generating a stream of investment opportunities for the Fund.
|
| |
|
Investec GS Global Strategic Value comment -Dec 03
|
|
Thursday, 12 February 2004
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a Fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turn around unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
The Fund aims to buy companies undergoing a metamorphosis, where upside potential is not reflected in the share price. The majority of the Fund's holdings are biased towards privatised companies in developed markets, but it also holds growing companies in emerging markets and firms undergoing restructuring.
Corporate restructuring is an ongoing phenomenon, even with the improvement in global equity markets and economic growth. Better markets have actually facilitated change, as state organizations take advantage of more favourable conditions to list spin-offs and troubled companies are able to access equity capital to reshape their businesses into a viable form. The global environment remains fiercely competitive, demanding dynamic evolution and generating a stream of investment opportunities for the fund.
|
| |
|
Investec GS Global Strategic Value comment -Sep 03
|
|
Monday, 10 November 2003
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to turnaround unprofitable businesses or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
The fund has a global portfolio, though it tends to focus on European companies and to be underweight US stocks relative to the MSCI World Index, its benchmark. It aims to buy companies undergoing a metamorphosis, where upside potential is not reflected in the share price. The majority of the fund's holdings are biased towards privatised companies, but it also holds growing companies in emerging markets and firms undergoing restructuring.
The improvement in equity markets has facilitated new listings of state owned companies, such as yell.com, that were delayed by poor market conditions. Privatisation remains an area for potential investment and continued adaptation to free markets is causing many former state companies to embark on fresh reorganization. Further corporate restructuring is expected to continue as companies adapt to the changing economic climate.
|
| |
|
Investec GS Global Strategic Value comment -Jun 03
|
|
Tuesday, 12 August 2003
|
Fund Manager Comment
|
Global stock markets are full of opportunities for a fund focused on companies undergoing positive transformation. Current economic conditions and increasingly exacting shareholders have jolted many firms to initiate widespread corporate change. Companies are being driven to evolve unprofitable business models or remove ineffective management teams to deliver value. Positive transformation is particularly evident in organisations undergoing privatisation, where increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency.
The fund has a global portfolio, though it tends to focus on European companies and to be underweight US stocks relative to the MSCI World Index, its benchmark. It aims to buy companies undergoing a metamorphosis, where upside potential is not reflected in the share price. The majority of the fund's holdings are biased towards privatised companies, but it also holds growing companies in emerging markets and firms undergoing restructuring such as Sears, Roebuck and Co., a US department store.
The improvement in equity markets has facilitated new listings of state owned companies, such as yell.com, that were delayed by poor market conditions. Privatisation remains an area for potential investment and continued adaptation to free markets is causing many former state companies to embark on fresh reorganization. Further corporate restructuring is expected to continue as companies adapt to the changing economic climate.
|
| |
|
Investec GS Global Privatisation name change
|
|
Friday, 20 June 2003
|
Official Announcement
|
With effect from 16 June 2003, the Investec GS Global Privatisation Fund changed its name to Investec GS Global Strategic Value Fund. The investment objective of the fund has also be broadened.
|
| |
|
Investec GS Global Privatisation comment - Mrch 03
|
|
Thursday, 8 May 2003
|
Fund Manager Comment
|
Privatisation has been a synonym for positive transformation for investors since the first UK deals in the 1980s. These sparked a revolution across Europe and most other developed countries. Increased competition in a liberalised environment and the need to survive without public funding has driven better management and greater efficiency even if, as is often the case, the company dominates its market.
Deregulation will often cause the prices of goods and services to fall, and demand to expand as a result. The Fund has a global portfolio, though it tends to focus on European companies and to be underweight US stocks relative to the MSCI World Index, its benchmark. It focuses on finding inexpensive companies that are undergoing a positive transformation, with good downside protection like strong cash flows and valuable assets. The Fund is carefully raising its exposure to emerging markets, which have shown healthier growth and better investment performance than developed markets. It also has an overweight exposure to utilities companies, which are attractively priced and face relatively secure earnings prospects in an environment of low inflation and slow growth.
Several attractive Initial Public Offerings, particularly in Europe, were delayed by poor market conditions in 2002. Some are expected to be listed this year. Even if economic growth remains sluggish, the manager expects good stock picking to yield opportunities to generate performance.
|
| |
|
Investec GS Private Privatisation comment - Dec 02
|
|
Friday, 7 February 2003
|
Fund Manager Comment
|
The wave of privatisations that took place in the UK in the 1980s began a revolution in the global economy - and stockmarkets - which spread to most other developed countries. The fund invests in a selection of companies that have been privatised and in other groups that can benefit from privatisation and the liberalisation of markets.
Frequently such companies offer investors significant opportunity for capital gain as they enter a competitive environment. It is because of a new focus on the part of management or because they enjoy a dominant position in their respective industries. Deregulation will often cause the prices of goods and services to fall, and demand to explode as a result. Due to its mandate, the fund tends to be underweight to the USA, and overweight to Europe, relative to the MSCI World Index.
In the medium-term, there should be a relatively large number of attractively priced Initial Public Offerings (particularly in Europe) in which the fund could participate. This decade is likely to be one of low inflation and relatively slow growth in the global economy. In this difficult business environment, the fund's exposure to financially strong, cash generative companies should stand it in good stead.
|
| |
|
Investec GS Global Privatisation comment - Oct 02
|
|
Monday, 25 November 2002
|
Fund Manager Comment
|
The wave of privatisations that took place in the UK in the 1980s began a revolution in the global economy - and stockmarkets - which spread to most other developed countries. The Fund invests in a selection of companies that have been privatised and in other groups that can benefit from privatisation and the liberalisation of markets. Frequently such companies offer investors significant opportunity for capital gain as they enter a competitive environment. This may be because of a new focus on the part of management or because they already enjoy a dominant position in their respective industries. Often deregulation will cause the prices of goods and services to fall, and demand to explode as a result. Because of its mandate, the Fund tends to be underweight to the USA, and overweight to Europe, relative to the MSCI World Index. In the medium-term, there should be a relatively large number of attractively priced Initial Public Offerings (particularly in Europe) in which the Fund may participate. This decade is likely to be one of low inflation and relatively slow growth in the global economy. In this difficult business environment, the Fund's exposure to financially strong, cash generative companies should stand it in good stead.
|
| |
|
Investec GS Global Privatisation comment - Sep 02
|
|
Wednesday, 20 November 2002
|
Fund Manager Comment
|
The wave of privatisations that took place in the UK in the 1980s began a revolution in the global economy - and stockmarkets - which spread to most other developed countries. The Fund invests in a selection of companies that have been privatised and in other groups that can benefit from privatisation and the liberalisation of markets.
Frequently such companies offer investors significant opportunity for capital gain as they enter a competitive environment. This may be because of a new focus on the part of management or because they already enjoy a dominant position in their respective industries. Often deregulation will cause the prices of goods and services to fall, and demand to explode as a result. Because of its mandate, the Fund tends to be underweight to the USA, and overweight to Europe, relative to the MSCI World Index.
In the medium-term, there should be a relatively large number of attractively priced Initial Public Offerings (particularly in Europe) in which the Fund may participate.
This decade is likely to be one of low inflation and relatively slow growth in the global economy. In this difficult business environment, the Fund's exposure to financially strong, cash generative companies should stand it in good stead.
|
| |
|
Investec GS Global Privatisation comment - June 02
|
|
Monday, 9 September 2002
|
Fund Manager Comment
|
June was the worst month for global equities since September last year. It was also the best month for the Euro, relative to the US Dollar, since December 2000. Investors reacted to the Worldcom scandal and fretted about the possibility that the US and global economies might undergo a "double dip". The Fund's relatively defensive holdings, and its bias away from the US Dollar, gave it some protection, with the result that it outperformed the MSCI World index by around 3%.
Your Adviser remains confident that the Fund will continue to benefit from two trends that have enabled it to outperform the MSCI World index by around 20% since the beginning of 2002. One is the re-rating of medium-sized companies in relation to very large ones (and especially in Europe) and the other is the underperformance of the US stockmarket relative to others. The Fund's holdings typically are priced on significantly lower Price/Earnings, Price/Book and Price/Sales ratios than the weighted averages for the MSCI World index.
In July there will be a number of privatisation-related issues (notably in continental Europe and Malaysia). Your Adviser anticipates that the Fund will participate in several of these issues in the short-term.
|
| |
|
Investec GS Global Privatisation commnt (April 02)
|
|
Monday, 10 June 2002
|
Media Comment
|
April was a difficult month for global stockmarkets. A number of disappointingly weak economic indicators caused many investors to fret that the cyclical upturn in the US and global economies may be petering out. Technology, media and telecommunications stocks were notable underperformers.
The Fund performed well both relatively and absolutely. Many of the "value" stocks in its portfolio continued to rise even as the major stockmarket indices retreated. Purchases during the month included United Services Group, following its acquisition of a formerly state-run employment agency in the Netherlands. In addition the Fund acquired positions in CNP Assurance, an undervalued French insurer and Tabcorp, a totaliser operator in the Australian state of Victoria. The Fund took profits on positions in Thomson Multimedia and Prudential Financial.
Over the coming year, there should be a relatively large number of attractive Initial Public Offerings in which the Fund might participate. Many of these deals have been postponed from the fourth quarter of 2001. Given the general caution of investors, these offerings will need to be priced attractively. The past reductions of interest rates may well provide a boost to cyclical areas, to which the Fund's exposure has recently been increased.
|
| |
|
Investec GS Privatisation comment - March 2002
|
|
Tuesday, 14 May 2002
|
Fund Manager Comment
|
March was a positive month for global stockmarkets. Equity investors focused on the signs that the US economic recovery is gathering momentum. In Europe, too, there were signs of an upturn in consumer and business sentiment.
The Fund performed well both relatively and absolutely. Several of the Initial Public Offerings in which the Fund participated delivered good returns. One of these was Autoroutes du Sud de la France, the French toll road operator. Another was Daido Life Insurance, the first major Japanese insurer to be demutualised. In both cases the stock price rose by 8-10% in the first two days of trading. The Fund also took part in share issues by Thomson Multimedia, a French consumer electronics manufacturer and CVRD, the Brazilian group that is the world’s largest supplier of iron ore.
Over the coming year, there should be a relatively large number of attractive Initial Public Offerings in which the Fund may participate. Many of these deals have been postponed from the fourth quarter of 2001. Given the general caution of investors, these offerings will need to be priced attractively. The past reductions of interest rates may well provide a boost to cyclical areas, to which the Fund’s exposure has recently been increased.
|
| |
|
|
