Monument Launches Internet Fund For US Investors

Mike Godfrey, Tax-news.com, New York

22 June 2000

US Monument Funds Group based in Bethesda, Maryland, yesterday launched the Monument EuroNet Fund, an opportunity for US investors to participate in the growth of European net stocks.

The fund will be co-managed by Paris-based Financiere Rembrandt, which oversees investment assets of $1.2bn, including FR EuroNet Fund, which was the first mutual fund offered to European investors with an exclusive emphasis on European net stocks.

In order to ensure full compliance with all US regulations and to provide US investors with direct access to the company, Financiere Rembrandt opened a US representative office located in West Hartford, Connecticut. For more information about the new fund, contact Stephanie Kendall or Scott Stapf on 703-276-1116 or skendall@hastingsgroup.com.

At a presentation in New York, Financiere Rembrandt Chairman Cyrille Vernes commemorated the Monument EuroNet Fund launch by releasing an 18-page "white paper" research document: "2000: The Year of net investing in Europe." The Financiere Rembrandt report concludes: "Internet- related investment opportunities in Europe are two to three years behind those in the United States. Publicly traded net-related companies (in Europe) are now poised to make up for much or all of that lag in the year 2000."

Vernes explained: "Europe may be behind the U.S. today when it comes to the Web, but the potential exists for European internet stocks to match or even exceed US levels. With the rapid rise of e-business made possible by the common bond of the European Union, the 371 million consumers in Europe represent a market that is nearly half again as large as that found in the United States."

"The Monument EuroNet Fund reflects Monument's commitment to finding the best and most exciting cutting-edge opportunities for investors who share our focus on the emerging New Economy," said Monument Group President David A. Kugler. "We've already uncovered a great deal of interest among brokers and financial planners who want to have this new alternative available for investors who are seeking to diversify their exposure to the Internet."

EXTRACTS FROM THE FINANCIERE REMBRANDT REPORT

The research report from Financiere Rembrandt outlines the following key factors that point to a major surge in the European web sector in 2000 and beyond:

* Personal computer and Internet access costs are falling rapidly in Europe, paving the way for a dramatic increase in Internet usage. Led by a 72 percent penetration rate in Sweden, PC adoption across Europe will grow from 36 percent to more than 46 percent in 2003. Also by 2003, it is expected that the online population in certain European countries will reach 60 million, up from 33.9 million 1999. It is estimated that European home Internet access via PCs will increase threefold by 2005 (Forrester Research, "Europe's Digital Decade," 1999).

* E-businesses in Europe are exploding -- much like the situation in the U.S. two to three years ago -- and will lead to more U.S.-like use of the Internet. Europe will sustain e-commerce growth above 100 percent per year until 2003, reaching 6.3 percent of total trade by 2004. This growth will help shorten the gap with the U.S., bringing Europe to more than half of the U.S. e-commerce market and cutting the current 30- month lag in half (Forrester Research, "Europe: The Sleeping Giant Awakens," 1999).

* Private equity support for European Internet companies is finally becoming available. Due to a recent surge in IPOs, more and more Europeans are actively participating in the growth of Internet stocks. The number of online trading accounts in Europe will grow from 1.85 million at the end of 1999 to 4.4 million by the end of this year and to an amazing 16.8 million by 2003 (IDC, "European Online Accounts will Grow to 16.8 Million by 2003," 2000).

* The EU and individual governments are clearing the way for an Internet explosion. The Internet will facilitate Europe becoming a single market by creating a common trading channel that offers a greater market reach, real-time information exchange and new revenue opportunities. Europe's governments are now taking concrete steps to encourage individual investing. For example, last year the Netherlands altered its Pension Savings Act, offering more tax-free investment fund options and increasing the amount consumers can contribute. Privatization of leading UK industries has increased stock ownership in that nation by nearly 400 percent to 15 million investors (Forrester Research, "Online Trading Skyrockets in Europe," 2000).

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