Attractive Buying Opportunities in Eastern Europe; Important Information for Shareholders of the GT Global Eastern Europe Fund.SAN FRANCISCO--(BUSINESS WIRE)--Sept. 16, 1996--The GT Global Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. Fund managers took advantage of buying opportunities during the summer slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in Eastern Europe markets. Share prices fell throughout the region in July and into August, largely due to western markets' volatility, which was prompted by fears of a hike in U.S. interest rates. The combination of strong first-half earnings and renewed foreign interest in the region should, in the managers' opinion, turn the market around in the coming months. Since the end of June, the Fund's emphasis has largely been on Poland, where the portfolio managers took advantage of the fall in share prices (-8% in the three weeks to the end of July) to build the Fund's position. Poland has enjoyed a tremendous run so far this year, and managers believe the market is likely to continue its outperformance with strong flows of foreign investment expected through the remainder of the year and into the beginning of 1997. Managers feel the market should also benefit from an increase in the number of companies with continuous trading Continuous Trading A method of transacting different securities orders. Continuous trading involves the immediate execution of orders upon their reception by market makers and specialists. , in addition to a host of new issues set for later this year as part of ongoing privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned . Meanwhile, the government recently forecast strong growth (6% estimated for 1996) with inflation, which while higher than expected, is not posing too much of a problem in the managers' opinion. Portfolio managers also increased the Fund's Russian allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as to 16.27% at Aug. 30, up from 6.75% on June 28, making it the Fund's largest country holding. Although trading in Russia is still attracting less money than many neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. markets, managers feel investor sentiment remains bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish and the market is poised for a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective . They are, however, watching markets closely for signs of political unease in light of recent concerns over Yeltsin's health. Hungarian companies This is a selected list of companies from Hungary. Current companies Based in Hungary
v. com·posed, com·pos·ing, com·pos·es v.tr. 1. To make up the constituent parts of; constitute or form: the second largest allocation, continued to demonstrate sound fundamentals and enjoyed strong first-half earnings. Overall earnings growth is forecasted at almost 30% this year. In response, U.S. investors have been putting more money into Hungarian stocks lately, which has helped push markets up. Inflows of foreign investment are expected to continue. Companies that the Fund managers find particularly attractive include Graboplast (a Hungarian producer of artificial leather, home improvement materials and book binding), Egis Gyogyszergyar (a pharmaceutical company) and Magyar Olaj (an integrated oil and gas company). (1) The GT Global Eastern Europe Fund, which was restructured on May 17, 1996, normally invests at least 65% of its total assets in equity and debt securities of issuers (including government issuers) located in Germany and in the emerging markets of Eastern Europe, including Albania, Bulgaria, the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. , Hungary, Poland, Romania, Slovakia, Slovenia, the Baltics, Russia, Belarus and the Ukraine, as well as all countries formerly part of Yugoslavia. In addition, normally at least 50% of the Fund's total assets are invested in the emerging markets of Eastern Europe (not including Germany). (1) This should not be construed as a recommendation for these companies' stock. The following information is released by LGT LGT Light LGT Lateral Gene Transfer LGT Lifeguard Training LGT Locomotiv GT (Hungarian rock band) LGT Lattice Gauge Theory (physics) LGT Liechtenstein Global Trust (bank) Asset Management, investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the Fund, and reflects the Fund's holdings and allocations as of Aug. 30, 1996. -0- Fund Name GT Global Eastern Europe Fund (closed-end) Net Assets $120,333,254
10 Largest % Total
Geographical Areas (1) Net Assets
Portfolio Composition
(% of Total Net Assets) 1) Russia 16.27
Cash & Equivalents 20.15 2) Hungary 16.02
Foreign Securities 79.85 3) Poland 13.64
Totals 100.00 4) Germany 9.67
5) Czech Republic 7.83
6) Greece 4.94
7) Slovakia 4.26
Performance 8) Bulgaria 2.33
(One-year trailing as of 8/30/96) 9) United Kingdom 1.81
NAV Total Return 16.67 10) Croatia 1.33
Market Price 13.50
% Total
10 Largest Holdings (2) Net Assets
1) Graboplast HUF (Hungary) 5.59 2) Ergo Bank GD843 (Reg). (Greece) 4.94 3) PDI Poland (Poland) 4.27 4) Russia Myra W/I 15 Dec. 2021 (Russia) 4.06 5) SPT Telecom (Czech Republic) 3.27 6) Egis Gyogyszergyar (Hungary) 3.15 7) Vychodoslovenske Zeleziarne (Slovakia) 2.65 8) Magyar Olaj GDS (Hungary) 2.58 9) Poland Disc (Euro) (Poland) 2.40 10) Ceske En Zavody (Czech Republic) 2.38 (1) Geographic allocations may change as market conditions change. (2) There is no assurance the Fund will continue to hold any of the securities mentioned. CONTACT: GT Global, San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden William J. Guilfoyle, 415/445-7533 |
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