Investments

Funds advised by General Capital Group have taken a select number of focused positions as friendly minority shareholders in major German first-rate corporations (see below).

Funds advised by GCG have realized investments in selected DAX and MDAX companies totalling some € 3.3 billion, of which € 1.3 billion were in invested in 2007. The portfolio is being actively managed to account for changes in market environment. Its returns have outperformed both the Dow Jones EuroSTOXX 50 and the German DAX 30 indices.

Minority positions below 5% are not regarded as long-term, strategic investments and are taken up or divested within shorter time frames. A long-term investment perspective guides investments exceeding 5% in which General Capital Group cooperates with management in a spirit of partnership.

Historic maximum shareholdings of funds advised were as follows and have been exited in the meantime: 

Current Investments (above 3% of shares outstanding):
None

Historic Investments¹:

	No. of shares	value (€m)
Siemens AG	app. 27,000,000	1,300
Volkswagen AG (common shares)	15,694,210	805
BASF AG	10.480.760	663
ThyssenKrupp AG	24.292.617	421
Lanxess AG	3.606.250	98
Infineon Technologies AG	6.080.240	51

1	Only with a market value in excess of € 50mn.

Why We Invest in Germany

Germany is the third largest industrialized nation in the world and leading exporting nation. Essential guarantors for success are the central location in the middle of Europe, the proximity to the growth markets in Central and Eastern Europe, as well as the nation’s firmly established social market economy.

In the spring of 2005 the internationally renowned consulting firm Ernst & Young surveyed managers of major foreign international businesses on the attractiveness of Germany as a business location —revealing a number of convincing results:

• In the total overview of European investment locations, Germany occupies an outstanding second place, and worldwide Germany also belongs among the top five. The results are similar among foreign direct investment: in this evaluation, Germany is number two recipient in Europe and on position five in a global comparison.
  
  
• On the question of employee qualifications, Germany even ranked first in Europe, thanks to the excellent training of workers.
  
  
• In addition, 41 percent of foreign managers consulted considered the attractiveness of Germany as a business location will improve even more in the coming years. A year earlier this value stood only at 19 percent.
  
  
• The managers consulted identified the infrastructure, telecommunications and logistics as explicit German strengths. Other important industries such as high-tech, chemicals, and the automotive industry also received top rankings.
  
  
• In international comparison, Germany is furthermore considered as “the country of the social market economy.” In this respect, the good social climate plays a positive role. In the opinion of experts, it contributes almost as strongly to economic success as do other locational advantages.