Global Small Cap Fund - 3rd Quarter Commentary.NEW YORK--(BUSINESS WIRE)--Nov. 4, 1996--Global Small Cap Fund Inc. (AMEX AMEX See: American Stock Exchange :GSG GSG Grenzschutzgruppe (German: Border Protection Unit; anti-terrorist group) GSG Global Scenario Group GSG Goldman Sachs Group, Inc. GSG Gunslinger Girl (anime) GSG Ground-Signal-Ground ) is a closed-end management company Closed-End Management Company An investment-management company that sells a limited number of shares to investors on an exchange by way of an initial public offering. For investors to sell the shares they purchased from the closed-end management company, there must be buyers seeking long-term capital appreciation by investing primarily in equity securities of small capitalization companies located throughout the world, including, but not limited to, Asia, Europe, the Far East, the Middle East, North Africa, and the Americas. Nearly all the major equity markets around the world showed strong turns during the quarter, led by Europe (Finland, up 14%; United Kingdom, up 8%; and Sweden, up 7%). Positive performance in the Asia-Pacific market was led by New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. (up 7%) and Hong Kong (up 5%). Latin American markets started to pick up in response to an export-led economic recovery. Emerging markets had some difficulties, especially in Asia, where macro-economic and political outlooks deteriorated. The Fund's subadviser, GE Investment Management (GEIM), remains optimistic about Europe, particularly given the 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 and restructuring efforts that appear to have taken hold in European countries. Strong performances in Italy and Spain have been driven by attractive company valuations, combined with investor confidence and increased finances. Additionally, investor sentiment in Hong Kong was very strong over the quarter as investors became optimistic about the transition of Hong Kong from Britain to China in July of '97. GEIM believes caution is warranted going forward, however, as volatility in the Hong Kong market should be expected as the transition date approaches. Broadly speaking, Japan still looks expensive, and GEIM remains underweighted in this market. Moreover, GEIM's concern over investors' expectations of double-digit U.S. earnings growth remains and is reflected in the Fund's U.S. weighting (15.2% of net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. as of 9/30/96). CONTACT: Global Small Cap Fund Inc. Linda Buckley, 201/902-5450 |
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