The Italy Fund Inc. Announces Post Tender Portfolio Allocations
For Immediate Release
NEW YORK - PR Newswire - August 23, 2001 - The Italy Fund Inc., which is listed
on the New York Stock Exchange under the symbol "ITA," announced today the
portfolio allocations for the Fund as of July 31, 2001 following its recently
concluded tender offer.
"We have used the recent tender offer as an opportunity to reallocate the Fund's
portfolio holdings towards smaller and mid-capitalization companies which we
believe offer greater potential for growth than do larger capitalization
issues," said Heath B. McLendon, Chairman of The Italy Fund. "We are optimistic
about the long-term potential of the Italian equity market and believe that both
the Italian market and the Euro are currently undervalued by investors."
"These smaller and mid-capitalization companies are generally not as readily
available to investors outside of Italy," said Rein van der Does, Portfolio
Manager of The Italy Fund. "Such types of companies have contributed in the past
to the Fund's strong absolute long-term performance and relative performance
versus the Italian indices. Our strategy is to look for solid companies with
strong growth prospects rather than trying to define specific economic or market
trends. Our belief is that good companies should thrive over the long-term
regardless of the latest financial trends."
At a meeting yesterday of The Italy Fund, the Board of Directors approved the
reinstatement of the Fund's active share repurchase program and reaffirmed their
commitment to work for the benefit of the Fund and its shareholders. The greater
focus on smaller and mid-capitalization companies is part of the efforts of the
Board of Directors and Management of the Fund to enhance shareholder value.
Other efforts of the Board and Management to enhance shareholder value include
the share repurchase program originally approved by the Board in 1998, and
tender offers conducted in 2000 and 2001. The Board of Directors will continue
to monitor the Fund's market price discount to net asset value and consider
whether any further actions are appropriate.
The Italy Fund Inc.
(NYSE: ITA)
Investment Objective: The Fund seeks long-term capital appreciation through
investment of at least 65% of assets in a portfolio of Italian securities.
Portfolio Composition*
Industry Allocations
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ITA MSCI Index
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Automotive 1.6% 3.1%
Banking 12.5 24.5
Construction 4.5 0.1
Consumer Products 17.0 1.6
Energy/Gas 4.7 14.1
Insurance 7.3 14.4
Media/Printing 4.8 3.8
Pharmaceuticals 8.7 0.3
Telecommunications 24.1 25.1
Textiles/Clothing 3.9 0.7
Utilities 2.5 8.0
Miscellaneous 4.2 4.3
Cash 4.2 0.0
Top 10 Holdings
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Telecom Italia Mobile SpA Wireless Telecom 12.74%
Telecom Italia Di Risp Telecommunications 11.38
Recordati SpA Pharmaceuticals 8.66
Autogrill SpA Consumer: Restaurant 8.06
Bipop-Carire SpA Banking 7.74
Parmalat Finanziara Food 5.12
Banca Fideuram SpA Banking 4.71
Saipem Energy Services 4.70
Bayeriche Vita SpA Insurance 4.51
Buzzi Unicem Construction 4.46
*Portfolio holdings and weightings are subject to change at any time.
Portfolio Statistics
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Total Net Assets $44,188,166 million
Market Price $8.00
NAV $8.72
Shares Outstanding: 5,067,450
Inception Date: February 28, 1986
2001 Distribution: $1.21 per share
2000 Distribution: $7.98 per share
1999 Distribution: $3.18 per share
The Italy Fund Inc., a non-diversified investment management company, is managed
by Smith Barney Fund Management LLC, a wholly owned subsidiary of Salomon Smith
Barney Holdings Inc.
Contact: Brenda Grandell
Director, Closed-End Funds
Citigroup Asset Management
212-783-3471