FINANCIALS




The Financials are liked by us because of the huge consolidation that is going on. The reasons for this are world wide baking and one stop shopping. The profits are good, and will become better because of the potential cost cuts when mergers and acquisitions takes place. The bigger a bank gets, the more costs they can cut. Next to that we think that the financials might get involved in accountancy and consultancy whitin the next couple of years. Already there are a lot of overlaps between investment banking and consultancy on mergers and acquisitions. We think the financials, looking for growth, will take on more functions now performed by the consultancies. This could lead to mergers or acquisitions, which makes them even bigger, and more costs can be cut.


ABN-AMRO (NL)
ABN-AMRO is a solid Dutch bank. With comsumer intrests in the Netherlands, Hungary, the USA, Brazil and the Far East. Also with world wide investment banking. In Europe they have not yet been able to make a big hit, but we expect that they will become big in Italy (where they have been active latley) and expand from there. A solid investment.


ING group (NL)
ING group is a little less international than ABN-AMRO, but expanding rapidly. They do have the one stop shopping system down. Their international expansion will go on, and they will become a major financial player. Also a long term solid investment.


UBS (CH)
The United Bank of Switzerland is at this point in time being formed. The merger between UBS and SBC was a suprise. Many jobs, mostly in Switzerland, will be lost. The profits will be put into international expansion. SBC was already strong in investment banking, and with a big home market (Switzerland, the safe haven) as a cash cow they will be strong enough to expand. A long term buy.


Credit Suisse Group (CH)
The Credit Suisse Group is a one stop shopping financial institution like ING. Because of the Swiss market we belive that they can survive in the long run. Simply because they have a large cash cow and good management.


Travelers Group (US)
Travelers is the future of how the fiancial world is going to be. Intergrated services. If the US changes their laws, Travelers is going to be one of the major players in the world. They have started the future.