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Investec GS Global Strategic Value comment -Dec 03
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Thursday, 12 February 2004
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Fund Manager Comment
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| 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. |
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Investec GS Global Strategic Value comment -Sep 03
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Monday, 10 November 2003
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Fund Manager Comment
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| 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. |
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Investec GS Global Strategic Value comment -Jun 03
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Tuesday, 12 August 2003
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Fund Manager Comment
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| 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. |
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Investec GS Global Privatisation name change
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Friday, 20 June 2003
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Official Announcement
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| 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. |
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Investec GS Global Privatisation comment - Mrch 03
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Thursday, 8 May 2003
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Fund Manager Comment
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| 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. |
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Investec GS Private Privatisation comment - Dec 02
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Friday, 7 February 2003
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Fund Manager Comment
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| 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. |
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Investec GS Global Privatisation comment - Oct 02
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Monday, 25 November 2002
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Fund Manager Comment
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| 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. |
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Investec GS Global Privatisation comment - Sep 02
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Wednesday, 20 November 2002
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Fund Manager Comment
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| 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. |
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Investec GS Global Privatisation comment - June 02
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Monday, 9 September 2002
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Fund Manager Comment
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| 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. |
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Investec GS Global Privatisation commnt (April 02)
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Monday, 10 June 2002
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Media Comment
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| 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. |
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Investec GS Privatisation comment - March 2002
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Tuesday, 14 May 2002
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Fund Manager Comment
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| 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. |
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