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U.S. FUND MANAGERS PLAN TO BOOST FOREIGN INVESTMENT

 LONDON, July 21 /PRNewswire/ -- American institutional investors not only expect to substantially increase foreign investments over the next 5 years, but to focus more on global offerings involving European state- owned enterprises, particularly from France, as well as high-growth investment opportunities from Asian and Latin American markets.
 That is the consensus among respondents to a survey conducted by Broadgate Consultants, Inc., the New York and London-based investor relations and market analysis firm. The July survey's 40 participants who collectively manage over $500 billion in assets, included fund managers specializing in international investment at the largest U.S. banks, insurance companies, pension funds and mutual funds.
 Over 90 percent of the respondents to Broadgate's latest global investment trends survey said they expect their international equity holdings to increase in 1993 and 85 percent said their non-U.S. equity holdings will rise over the next five years.
 However, despite the strong expectation of expanded global equity investment, American fund managers voiced increasing concern about corporate governance and financial disclosure issues, particularly related to recently privatized companies. Respondents indicated that changes in proxy voting and shareholder rights that have been going on in the U.S. in the last five years will undoubtedly emerge in a number of foreign markets.
 Nearly half the respondents indicated that corporate governance issues are a major factor in their investment decision-making. And over 70 percent said they are dissatisfied with the level of disclosure from non-U.S. companies in which they invest.
 Over 90 percent of the respondents said that non-U.S. companies, including newly privatized issues, would gain more acceptance on Wall Street if they provided better quality information to U.S. investors. Seventy percent of the respondents thought regular meetings with senior management were imperative.
 Attractive Global Markets
 Among Western European countries, the investment outlook for France was rated the highest, largely reflecting U.S. investor eagerness to participate in the anticipated raft of French privatizations. Over 60 percent of the respondents felt that the investment outlook for the country was very positive.
 Signs of a sustained economic recovery in the U.K. led U.S. investors to rate Britain's stock market prospects favorably. More than 40 percent of the respondents said the outlook for the U.K. was good.
 By contrast, perceptions of Eastern Europe were the most negative as the euphoric glow of communism's collapse has been replaced by more sobering expectations based on the difficult transition to free market policies. Nearly 45 percent of the respondents rated Eastern Europe's prospects as poor.
 Despite the scandals that have rocked Italy in recent months, 45 percent of the respondents thought the country's investment prospects were good, ranking it just behind Spain, which was the second most highly rated European market after France.
 In a noticeable shift in confidence from prior surveys, U.S. investors registered a significantly more cautious attitude about Germany, with only approximately one in three respondents rating the country's investment prospects as good. Respondents expressed particular concern with the low level of disclosure traditionally available from German companies.
 Emerging Markets
 Nearly 90 percent of the respondents said that over the last two years emerging markets have become increasingly important to their overall global investment strategy.
 Among the world's emerging markets, Asia and Latin America were viewed most favorably, fueled by the massive earnings growth potential that the economies from these regions offer. Ninety-eight percent and 73 percent of the respondents respectively rated the investment prospects for Asia and Latin America as very attractive.
 The recent retrenchment in Latin markets is viewed largely as a positive, wringing out much of the speculative interest that has inflated valuations in recent years. Mexico, Chile, and Brazil elicited a far greater percentage of informed opinions than did other Latin American countries.
 Despite the weakness in the Mexican stock market since the first of the year, Mexico overwhelmingly received the highest ranking. Seventy- five percent of the respondents rated the investment prospects of the market as good, citing the country's long-term growth potential and stable political leadership.
 Benefits of ADRs
 Asked whether they though having a listed American Depositary Receipt program enhanced the appeal of foreign companies to U.S. investors, 86 percent of the respondents said yes. The primary reasons offered in support of listed ADR facilities were the ease of dividend payments, ready availability of last price information, media visibility, and improved liquidity.
 Commenting on the research, Broadgate's president, Thomas C. Franco, said, "Survey results strongly confirm that American fund managers represent an important source of long-term capital for non-U.S. corporations, particularly in the privatization context. U.S. investors are less driven by short-term considerations when investing offshore. As a result, they should be viewed by non-U.S. corporate issuers as potentially stable and consistent shareholders."
 -0- 7/21/93
 /CONTACT: Allison Sargent of Broadgate Consultants, 212-229-2222, or in London, 071-373-9622/


CO: Broadgate Consultants, Inc. ST: New York IN: SU:

MP-PS -- NY011 -- 3822 07/21/93 09:42 EDT
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Date:Jul 21, 1993
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