ANY OF THE FOLLOWING QU
DRESS, BUSINESS, & CASUAL SH
Fledgling IsraelFund
Still A Risk
AMEBRAND
THIS COUPON!
JULIE EDGAR STAFF WRITER
Only at Mr.
f Israeli companies gain the
kind of efficiencies their Amer-
ican counterparts are strenu-
ously moving toward, and
inflation is kept in check, invest-
ing in its stock market is not an
overly risky proposition, says the
co-manager of the Growth Fund
of Israel, the only open-ended,
front-load mutual fund focused
primarily on Israeli concerns.
I
SEIM
EXCLUDING DISCOUNTED MERCHANDISE
if.
MI= •• ■
European Collections West Bloomfield • On the Boardwalk
6893 Orchard Lake Rd. • Just South of Maple • (810) 626-3362
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OLDSMOBILE
FOR LESS
1995
ACCENT
OLDSMOBILE
SILHOUETTE
ECONOMY WITH
STYLE
Adam Schor: Co-manager of the
Growth Fund of Israel.
Your owr\ road.
SAAB
900 5 DOOR
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■ 0111mwr-
ft': 2i
■ ••".
From
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30 Mo.
58
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4,11/4
■ INit
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$1 ,250
X 9,
Lease
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gation is payment times term. Lessee responsible for excess
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REBATE!
' Plus tax, tittle & plates, all rebates to dealer
50
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$299*
36 Months
$999 Down Payment
" 36 mo. lease. $999 cap cost reduction, option to purchase
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On Telegraph at the
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(810) 354-3300
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On Telegraph at the
Tel-12 Mall, Southfield
ff
(810) 354-3300
Actually, many Israeli compa-
nies are undervalued, so shares
are fairly inexpensive, says Adam
Schor, an international invest-
ment analyst at Oakmark/Har-
ris Associates, L.P. of Chicago. If
the Israeli economy continues to
grow, investors shouldn't fear los-
ing their shirts, he says.
The Growth Fund, distributed
by the Boston-based New Eng-
land Funds in conjunction with
B'nai B'rith, has 27 companies in
its portfolio and $9 million in as-
sets — puny by average stan-
dards. Of the 8,000 or so mutual
funds operating in the United
States, the average has $100 to
$200 million in assets under man-
agement.
Batucha Securities in Tel Aviv
is acting as the fund's overseas
economic and investment advis-
er, while B'nai B'rith is serving as
its marketing arm, helping to sell
the fund to members in exchange
for a fee from New England
Funds.
The fund has devoted 4.7 per-
cent of its investments in Bezeq,
the national telecommunications
firm; almost 5 percent in Teva
Pharmaceutical Industries; 3 per-
cent in Scitex; and almost 4 per-
cent in Koor Industries. Other
companies in which the fund has
a stake are Elite Foods and
Mahkteshin, a manufacturer of
fungicides and pesticides. The
Growth Fund is committed to in-
vesting at least 65 percent of its
assets in the Israeli market.
'We think the Israeli market is
a cheap market to invest in," Mr.
Schor says. "The economy is go-
ing well. There are obviously con-
cerns over inflation, and as a
result, that has spilled over into
higher interest rates and a
stronger shekel than there ought
to be."
If the GDP continues to grow
at 6, 7 or even 8 percent yearly,
however, and companies gain new
efficiencies through restructuring
or downsizing, companies could
grow by 13 or 14 percent, he says.
At the moment, shares are
trading for less than they're
worth.
If Bezeq, for example, had bet-
ter exposure, it would be trading
30 to 40 percent higher than it is,
Mr. Schor says. Same with Amer-
ica Israel Paper Mills, he adds.
But like any investment in
emerging markets, it's not wise to
rush headlong into anything.
Ralph Greggs, vice president of
product development at New Eng-
land Funds, called the Growth
Fund of Israel a "high risk prod-
uct."
Ira Lutzky: Investment analyst
with Alex Brown & Sons.
"This is the kind of fund that is
not going to gather a billion dol-
lars in the next year." He predicts,
however, that it could attract $50
million in the not-too-distant fu-
ture.
But, Mr. Gregg adds, "This is
not Turkey. This is not Greece.
This is Israel.
"The Israeli market has tak-
en a lot of important steps for-
ward: Israelis are interested in
privatization and fostering equi-
ty markets and trying to get con-
trol of the economy."
Adds Laurence Dwyer, New
England Fund's senior vice pres-
FLEDGLING page 60
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