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Financial Consultants, Investment Advisors, Bangkok, Thailand, Asia
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May 2003 - Issue 17 |
Previous Issues
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The Global Investor is a monthly
newsletter that covers global investment opportunities and
insurance for the expatriate community. This monthly
newsletter's goal is to inform the reader of what can and
cannot be done in the investment arena when living and
working in a foreign country. Whether it's personal
pension plans or disability insurance to protect your income
- Global Investments has the expertise to handle all the
expatriate investors' needs.
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FINANCIAL
NEWS - MAY 2003
Taking a look at
currencies, last week the Euro nearly touched
record highs rising above 70p against the pound
for the first time in four years. The pound's 8%
drop since the start of the year is reported to
be a threat to a rate cut, but most analysts
apparently believe that a cut by the Bank of
England this week is still on the cards. A
quarter point drop to 3.5% would deliver the
lowest rate since February 1955. The European
Central Bank also meets this week and is
expected to leave rates at 2.5%.
Surprisingly, the Euro has risen in the face of
figures showing that eurozone industry
contracted at an accelerated rate in April.
German retail sales fell by 3% in March compared
with February. This was worse than expected and
is reported to reflect waning consumer demand in
Europe's largest economy.
In the US, better than expected employment
figures have provided some support for a
vulnerable dollar.
On the equity front, April was the best month in
five years for the FTSE 100, which rose 8.6%,
and European markets posted double-digit
returns. Interestingly, over the last decade the
FTSE 100 has risen by more than 8% in only three
individual months. One consideration is that if
the FTSE 100 hits 4,000, many pension funds may
consider selling equities in favour of bonds,
which could have a slowing effect on the
markets. In spite of that, there are more
positive signs out there.
The JP Morgan Fleming index of investor
confidence almost doubled in April and
economists at investment bank Morgan Stanley
have tentatively forecast that the FTSE 100 will
reach 4,300 by the end of the year which would
be a rise of 9.5% from its position at the end
of last week. Gordon Brown has also seen some
support for his optimistic growth forecasts with
the National Institute of Economic and Social
Research proposing growth of 2.2% this year,
2.8% next and 2.9% in 2005, a recovery profile
close to Brown's.
In the US, tech stocks have led a recovery that
has exceeded the expectations of Wall Street
analysts and Alan Greenspan is reported to have
said that he believes that "the economy is
positioned to expand at a noticeably better pace
than it has during the past year..." - very
reassuring!
With the European economies in difficulty and
Asia suffering to some degree at the hands of
the Sars virus, it appears that it is once again
up to the US economy to pull markets forward.
With interest rates likely to stay the same or
reduce, the real returns on deposits argument
looks to be as valid as ever. This, coupled with
some positive indications for equity markets,
would appear to lend support to the long-term
equity proposition.
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The ideal property investment for
the discerning investor
MONTHLY FUND PERFORMANCE REPORT MAY 2003
Overview
The impact of recent property acquisitions means another
improvement in the share & unit prices this month as
shown here below. It is now 6 months since launch of the
fund and the total performance of the OEIC £GB shares
have increased by 6.3% which suggests the fund is well
placed to hit or exceed its performance target of
between 8-10% p.a. growth.
Bearing in mind the substantial costs involved in
property acquisition, the Directors feel that this
performance is very encouraging and fully justifies the
property specialists advice to concentrate on good
quality covenants with long unexpired lease terms.
In short, the strategy is to only acquire properties
that offer all of the following features:
- Attractive rental
yields of around 7% p.a.
- Long unexpired leases
- 10 years unexpired is the minimum.
- Financially strong,
'Blue Chip' tenants
- Modern, well located
and purpose built buildings outside the London area.
This
strategy is in contrast to some other property funds
that chase higher yields, usually with short-term leases
- this approach can initially result in good returns but
at the expense of increased risk. The Directors feel
that in the current climate of economic uncertainty that
a more cautious approach is to be preferred.
Further property acquisitions are imminent and full
details should be available in time for next months
report and of course full details of all properties held
within the portfolio together with photographs, are
posted on our web site: www.premierdiversifiedpropertyfund.com.
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| Monthly
percentage growth and price - The Premier
Diversified Property Fund plc |
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FUND |
YEAR |
1
Nov |
1
Dec |
1
Jan |
1
Feb |
1
Mar |
1
Apr |
1
May |
TOTAL |
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STG |
2002/03 |
Launch |
2.70% |
0.39% |
1.84% |
0.10% |
0.38% |
0.76% |
+6.30% |
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1.000 |
1.027 |
1.031 |
1.050 |
1.051 |
1.055 |
1.063 |
- |
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EURO |
2002/03 |
Launch |
2.90% |
0.29% |
1.65% |
0.10% |
0.38% |
0.76% |
+6.20% |
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1.000 |
1.029 |
1.032 |
1.049 |
1.050 |
1.054 |
1.062 |
- |
| The
Premier Diversified Property Fund EUT |
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FUND |
YEAR |
1
Nov |
1
Dec |
1
Jan |
1
Feb |
1
Mar |
1
Apr |
1
May |
TOTAL |
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STG |
2002/03 |
N/A |
Launch |
0.40% |
1.89% |
0.10% |
0.38% |
0.78% |
+3.60% |
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N/A |
1.000 |
1.004 |
1.023 |
1.024 |
1.028 |
1.036 |
- |
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Please
contact Global Investments for more information
on Tel. (+66-2) 662-2009 or e-mail at info@globalinv.org.
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