GPG makes selective investments, predominantly in public
companies, for the purpose of enhancing and realising value
by means of appropriate levels of shareholder influence and
control. This could involve the restructuring of the financing
or management of the companies in which GPG invests. GPG’s
role may also encompass initiating and facilitating mergers
within the relevant industry to achieve constructive rationalisation.
In general, this active involvement is outside the scope of
most institutional investors.
No equity investment is made without exhaustive research
and unless it is possible to form a robust view of a stock’s
medium-term prospects. GPG refrains from investing in businesses
which it does not understand or those it regards as speculative.
This has led it to invest almost exclusively in established
companies with a long track record.
The Group can be affected by market price movements on its
equity investments. Since it generally invests for the medium
or long term, the Board does not believe it is economic or
necessary to hedge market price risk, which in any event it
considers to be a relatively short-term factor. No significant
equity investment is made unless a margin of safety has been
identified. Exposure to market price movements is further
mitigated through holding a spread of investments, diversified
across a range of sectors and countries.
GPG has an excellent track record of successful growth, a key indicator of which is that its shareholders’ funds grew from some £49 million in 1992 to £951 million as at 31 December 2007. Between 31 December 1992 and 31 December 2007, GPG’s reported net asset value per share increased at a compound growth rate of some 17.9 per cent. per annum. A comparison of GPG’s net asset value per share with various indices is produced below.
GPG = Increase in NAV per GPG Ordinary Share
as adjusted for stock events since 1 January 1993.
Total return indices:
FTSE = London Stock Exchange FTSE 100
ASX = Australian Stock Exchange All Ordinaries
NZX = New Zealand Stock Exchange NZX-50
(pre-January 2004 NZX Top 40)