<PAGE>
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. ___)
Filed by the Registrant /x/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Definitive Proxy Statement
/x/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
/ / Confidential, for Use of the Commission Only
(as permitted by Rule 14a-6(e) (2))
The France Growth Fund, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement
if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/x/ No fee required.
<PAGE>
[LOGO]
INDOCAM
THE FRANCE GROWTH FUND
INVESTOR PRESENTATION
(April 1999)
[LOGO]
INDOCAM
International Investment Services
1
<PAGE>
OUTLINE OF THE PRESENTATION
o The French equity market
o Market performance
o Some positive developments give support to the market
o The France Growth Fund
o Performance
o Strategy
o Discount to net asset value
[LOGO]
INDOCAM
International Investment Services
2
<PAGE>
THE FRENCH EQUITY MARKET
[LOGO]
INDOCAM
International Investment Services
3
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
Market Performance: SBF 120 Index Return
[Graphic Appears Here Showing the Market Performance
of the SBF 120 Index from 12/31/96 to 2/3/99.]
Performances
------------
1997: +26.82
1998: +29.47%
1999 (as of 04/14/99): +10.25%
[LOGO]
INDOCAM
International Investment Services
4
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
Market Performance: Relative to European equity market
[Line Chart Appears Here Comparing the Performance
of the SBF 120 Index and the DJ Stock Index from 12/30/97 to 2/23/99]
[LOGO]
INDOCAM
International Investment Services
5
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
Market Performance: SBF 120, Change in stock prices by type
CAC 40 Index: +10.31%
SBF second marche: -7.99%
[Line Chart Appears Here]
Interest
Defensive Growth Cyclical rate-sensitive _______________
Stocks Stocks Stocks Stocks | |
------ ------ ------ ------ | SBF 120 Index |
| +10.25% |
8.09% 5.55% 19.01% 4.79% |_______________|
[LOGO]
INDOCAM
International Investment Services
6
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
o A resilient macro-economic picture
o Equity inflows
o Birth of the Euro: M&A deals are soaring
o Sentiment on Earning growth is improving
o Attractive valuation
[LOGO]
INDOCAM
International Investment Services
7
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
A resilient macro-economic picture
Consumer confidence, underpinned by the fall in
unemployment, remained at high levels, ...
[Bar Chart Appears Here Showing the Unemployment Rate
in France in Percentages and the French Consumption in Percentages from the
Fourth Quarter 1988 to the Fourth Quarter 1998]
... confirming the scenario under which consumer spending
is currently the main engine of growth.
[LOGO]
INDOCAM
International Investment Services
8
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
A resilient macro-economic picture
Interest rate levels,
the recovery in the property market,
and tax incentives ...
[Line Chart Appears Here Showing French Surveys on
Property Construction from the Fourth Quarter 1990
to the Fourth Quarter 1998]
... all combined to make housing
once again an attractive investment.
[LOGO]
INDOCAM
International Investment Services
9
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
A resilient macro-economic picture
Historic low level of interest rates
[Line Chart Appears Here Showing the Increments of
Short- and Long-term Interest Rates
from December 1983 to December 1998]
[LOGO]
INDOCAM
International Investment Services
10
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
A resilient macro-economic picture
Note that industry has seen a improvement in export order books.
Generally, this reflects a pick-up in sales to the USA and Asia.
[Line Chart Appears Here Showing the Volume of French
Exports to Thailand, Taiwan, Korea and Singapore
from January 1997 to January 1999.]
[LOGO]
INDOCAM
International Investment Services
11
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Equity inflows: Net subscriptions
o French Mutual Funds
o Money market funds are in redemptions
o Equity funds record high level of subscriptions
o In 1998, this phenomenon has even accelerated
[Bar Chart Appears Here Showing Sector Differences
Between the SBF 120 Index and the DJ Euro Stock Trader]
1995 1996 1997 1998
---- ---- ---- ----
In Billions
-----------
$-1.5 $-1.6 $0.7 $3.5
[LOGO]
INDOCAM
International Investment Services
12
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Equity inflows: Switch to Equities
Households are shifting their allocation to equities...
Equities as a % of total mutual fund asset
% 1995 1998
- --------------------------------------------------
Germany 14.6 33.9
France 13.2 26.5
Italy 28.9 22.3
Spain 3.1 12.8
EURO - G4 average 14.1 24.4
Source: Cheuvreux Study
[LOGO]
INDOCAM
International Investment Services
13
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Equity inflows: Europeanisation of Equity Investments
The trend for portfolios to go European continues:
o The advent of the Euro has had a quite dramatic impact upon the
distribution of institutional savings in Europe.
o Over the last eighteen months, a large proportion of all inflows
into equity funds has gone into those funds invested throughout Europe
(either Euro zone or pan European).
As a result, the percentage of << foreign >> equities has rapidly increased and
should soon exceed the 50% threshold.
Foreign equities as % of equities held by mutual funds
Equities as a % of total mutual fund asset
% 1996 1997 1998
- ---------------------------------------------------------------------
Germany 34.1 42.4 53.8
France 31.5 35.5 41.9
Italy 43.5 50.1 54.0
Spain 17.2 23.2 38.5
EURO - G4 average 30.8 38.0 47.6
Source: Cheuvreux Study
[LOGO]
INDOCAM
International Investment Services
14
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Equity inflows: Europeanisation of Equity Investments
[Bar Chart Appears Here]
[LOGO]
INDOCAM
International Investment Services
15
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Birth of the Euro: M&A are soaring
o France is the second largest European target country in 1998:
o with M&A volumes of $86bn...
o up 31% from 1997 and...
o 14% of European deals
o 1998- Major deals include:
o $21bn joint venture between Rhone-Poulenc and Hoescht (Germany)
o $16.8bn Total bid for Petrofina (Belgium)
o $11bn Sanofi/Synthelabo merger
o $5.9bn acquisition of Generale de Belgique by Suez Lyonnaise
o $3.1bn Carrefour/ Comptoires Modernes take over
o $4.7bn Castorama/Kingfisher merger (UK)
o 1999- Finance sector: This phenomenon accelerates
o Paribas / Societe Generale / BNP
[LOGO]
INDOCAM
International Investment Services
16
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Sentiment on Earning growth is improving
SBF 120 Index companies
Evolution of Research Analysts Earnings growth forecasts for 1999
[Line Chart Appears Here Showing the Trend of Growth
in the Earnings Per Share of the
Companies Comprising the SBF 120 Index]
[LOGO]
INDOCAM
International Investment Services
17
<PAGE>
The French Equity Market
- --------------------------------------------------------------------------------
1999: Some positive developments give support to the market
Attractive Valuation
Main French Market Ratios
Current level
Based on Consensus
Estimates
SBF 120 Index As of April 14, 1999
-----------------------------------------------------------------
PRICE EARNING RATIO
PER 1999 (estimate) 23.8 x
PRICE / BOOK VALUE 1999 2.66
GLOBAL YIELD 1999 2.25%
10 years BONDS YIELD 3.95%
SHORT TERM RATES (3 months) 2.50%
Source: Jacques Chahine Finances
[LOGO]
INDOCAM
International Investment Services
18
<PAGE>
FRANCE GROWTH FUND
(as April 9, 1999)
[LOGO]
INDOCAM
International Investment Services
19
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Track record
o The fund was launched in May 1990. Since inception, the France Growth Fund
has consistently outperformed its benchmark.
In USD Out-
As of April 9, 1999 FUND SBF 120 Index Performance
- ------------------------- --------- ------------- -----------
SINCE INCEPTION + 167.47% + 92.54% + 74.93%
(as of May 18, 1990)
3 YEARS + 97.17% + 83.43% + 13.74%
1998/1999 + 43.85% + 41.20% + 2.65%
[LOGO]
INDOCAM
International Investment Services
20
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Performance over 1996/1999
As of April 9, 1999
Outperformance over 3 years: +13.74%
[Line chart appears here Showing the Performance of
the Fund and the Performance of the
SBF 120 Index from 1/25/96 to 1/29/99]
- --FRF Net Asset value in USD --SBF 120 index in USD (benchmark)
[LOGO]
INDOCAM
International Investment Services
21
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Performance Vs SBF since Inception (May 18, 1990)
As of April 9, 1999
Outperformance since inception: +74.93%
[Line chart appears here Showing the Performance of
the Fund and the Performance of the
SBF 120 Index Since 5/18/90 Through 1/29/99]
- --FRF Net Asset value in USD --SBF 120 index in USD (benchmark)
[LOGO]
INDOCAM
International Investment Services
22
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy: Fully invested
[Pie chart appears here]
Cash French Equities
---- ---------------
0.0% 100.0%
[LOGO]
INDOCAM
International Investment Services
23
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy
o High exposure on large cap stocks
o Come back on cyclicals due to dollar strength and Far East Asia recovery
o Overweighting on the banking sector: M&A
[LOGO]
INDOCAM
International Investment Services
24
<PAGE>
THE FRANCE GROWTH FUND
- ------------------------------------------------------------------------------
Investment Strategy: High exposure to large cap.
o Large cap exposure
[Piechart appears here]
Small Cap. Large cap.
- ---------- ---------
2.75% 97.25%
Large cap: Market cap. more than $1bn
large cap. outperformance...
[Linechart appears here Showing the Performance of
the CAC 40 Index and the SBF Second Marche Trade
from 12/31/97 to 3/16/99]
As of 04/14/99
- --- CAC 40
(+45.03%)
- --- SBF Second Marche
(+1.74%)
[LOGO]
INDOCAM
International Investment Services
25
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy: Overweighting on the banking sector: M&A
Strategic shifts by type since Dec. 30, 1998
[Barchart appears here]
Interest rate-
Growth stocks Cyclical stocks sensitive stocks
- ------------- --------------- ----------------
-3.88% 0.72% 3.18%
[LOGO]
INDOCAM
International Investment Services
26
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy: recent moves to companies exposed to
economic rebound in Asia & benefiting from recent rise of the US Dollar
Strategic shifts by sector since Dec. 30, 1998
[Barchart appears here]
Energy Capital Car Consumer Food and Retail Services Banks
goods goods beverage
- ------------------------------------------------------------------------------
-0.84% 1.05% 1.97% 0.96% -0.90% -0.65% -5.60% 2.43%
[LOGO]
INDOCAM
International Investment Services
27
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy: Overweighting the Finance, capital
goods & Services sectors
[Barchart appears here]
Banks 2.85%
Capital goods 2.19%
Car 1.88%
Services 1.17%
Energy -0.18%
Construc. -0.35%
Consumer goods -0.37%
Holdings -0.46%
Real estate -0.52%
Retail -0.90%
Insurances -1.10%
Basic products -1.20%
Food and beverage -3.01%
The France Growth Fund: Over/Under sector allocation Vs SBF 120 Index
[LOGO]
INDOCAM
International Investment Services
28
<PAGE>
The France Growth Fund
- ------------------------------------------------------------------------------
Investment Strategy:
Top 10 Holdings
Stocks % Asset
FRANCE TELECOM 10.46%
AXA 6.50%
VIVENDI 5.73%
OREAL (L') 5.60%
TOTAL 4.68%
SUEZ - LYONNAISE DES EAUX 3.97%
ELF AQUITAINE 3.54%
ALCATEL 3.37%
CARREFOUR 3.07%
SYNTHELABO 3.04%
10 most overweightings
Stocks % Asset OverWeight.
PARIBAS 2.93% 2.93%
SYNTHELABO 3.04% 1.84%
UBI SOFT ENTERTAINMENT 1.15% 1.15%
TF1 1.55% 1.08%
VIVENDI 5.73% 0.98%
RENAULT 1.96% 0.89%
SIDEL 1.14% 0.84%
VALEO 1.64% 0.83%
SUEZ - LYONNAISE DES EAUX 3.97% 0.82%
STMICROELECTRONICS 2.66% 0.81%
[LOGO]
INDOCAM
International Investment Services
29
<PAGE>
DISCOUNT TO NET ASSET VALUE
[LOGO]
INDOCAM
International Investment Services
30
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
Stock performances in 1998/99 (in USD)
[Line chart appears here Showing the Market Price
Return Including Dividends, the Market Price Return and
the NAV Return Including Dividends for Fund Shares from 12/31/97 to 4/9/99]
As of December 31, 1997: Discount of 19.97%
As of April 9, 1999: Discount of 15.46%
- --Market Price including dividend - - -Market Price --NAV including dividend
[LOGO]
INDOCAM
International Investment Services
31
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
The France Growth Fund has announced new policies to enhance
shareholder value
o The board of directors decided to:
o institute a tax-advantaged managed distribution plan to provide
shareholders with quarterly payments totaling at least 12% of the
Fund's net assets annually
o The adviser has revised management fee calculation:
o Advisory fee will be adjusted downward to the same amount as the
Fund's discount (during the year ended Dec. 98, the investment advisor
voluntary waived $181 661 of its fees)
[LOGO]
INDOCAM
International Investment Services
32
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
FRF: declared dividend
o 1997: 0.32833$ per share on April 4, 1997
1.5$ per share on December 29, 1997
o Global Yield: 13.9% on NAV
o 1998: 0.53727$ per share on June 6, 1998
0.3936$ per share on November 6, 1998
1.0936$ per share on December 30, 1998
o Global Yield: 12.3% on NAV
o 1999: 0.7913$ per share on April 9, 1999
o Global Yield: 4.95% on NAV
[LOGO]
INDOCAM
International Investment Services
33
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
FRF: Discount has slightly reduced
Discount
o As of December 31, 1997: 19.97%
o Average discount from January to
Week prior the release of the Distribution Plan: 18.16%
o Average discount through fall: 18.42%
o Average discount from Nov. 98 to April. 99: 15.83%
[LOGO]
INDOCAM
International Investment Services
34
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
On closed-end fund listed on NYSE
<TABLE>
<CAPTION>
Prem/Disc Prem/Disc Prem/Disc Prem/Disc 52-WEEK
AS/OF RANGE
4/9/99 3 months ago 12/31/97 12/31/96 HIGH LOW
------ ------------ -------- -------- ---- ---
<S> <C> <C> <C> <C> <C> <C>
FRANCE
- ------
France Growth Fund -15% -16% -20% -22% -15% -23%
GERMANY
- -------
Dresdner RCM Europe Fund -4% -8% -11% -24% -3% -18%
Germany Fund -10% -11% -12% -20% -4% -22%
New Germany Fund -17% -17% -17% -22% -14% -26%
IRELAND
- -------
Irish Investment Fund -19% -9% -8% -17% -5% -29%
ITALY
- -----
Italy Fund -18% -15% -19% -19% -14% -26%
SPAIN
- -----
Spain Fund -7% -13% -10% -22% -7% -21%
SWITZERLAND
- -----------
Swiss Helvetia Fund -18% -16% -17% -18% -15% -25%
UNITED KINGDOM
- --------------
UK Fund -6% -7% -10% -18% -5% -17%
AUSTRIA
- -------
Austria Fund -19% -7% -14% -21% -7% -22%
Average Premium/Discount -13.4% -11.8% -12.7% -20.4%
</TABLE>
Source: Smith Barney Research
[LOGO]
INDOCAM
International Investment Services
35
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
FRF: Premium/Discount Dec. 98 to April 1999
<TABLE>
<CAPTION>
Decemb. + 12/30/98: Dist. Div. January 1999 February
------------------------------ ------------ --------
Price NAV %Prem. Price NAV %Prem. Price NAV % Prem.
----- --- ------ ----- --- ------ ----- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dec. 04 13.750 16.60 -17.17% Jan. 08 14.750 17.50 -15.74% Feb. 05 14.125 16.61 -14.94%
Dec. 11 13.688 16.63 -17.71% Jan. 15 14.125 16.80 -15.91% Feb. 12 13.625 16.35 -16.66%
Dec. 18 13.625 16.51 -17.47% Jan. 22 13.875 16.63 -16.58% Feb. 19 13.813 16.22 -14.84%
Dec. 25 14.563 17.06 -14.66% Jan. 29 14.375 17.23 -16.56% Feb. 26 13.625 16.06 -15.16%
Dec. 30 13.750 16.41 -16.23%
Average 13.875 16.644 -16.65% Average 14.281 17.041 -16.20% Average 13.797 16.309 -15.40%
<CAPTION>
March 1999 April + 04/09/99: Dist. Div. May 1999
---------- ---------------------------- --------
Price NAV % Prem. Price NAV % Prem. Price NAV % Prem.
----- --- ------- ----- --- ------- ----- --- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
March 05 13.750 16.14 -14.81% Apr. 02 13.813 16.30 -15.26%
March 12 13.813 16.33 -15.42% Apr. 09 13.500 15.97 -15.47%
March 19 13.813 16.46 -16.08% Apr. 16
March 26 13.313 15.82 -15.85% Apr. 23
Average 13.672 16.188 -15.54% Average 13.656 16.135 -15.36% Average
</TABLE>
[LOGO]
INDOCAM
International Investment Services
36
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
Information Highlights
o NAV: daily versus weekly. Daily NAV could help to reduce the discount
o Investment objective : With the birth of the Euro, some investors have
started to question the attractiveness of a single country European
closed-end fund.
o The French market has been a top performer so far. Some investors like it
this way: pure French
o However: a more diversified portfolio could protect
the portfolio from easy hedge versus future contracts.
o Closed-end structure creates value versus open-ended
[LOGO]
INDOCAM
International Investment Services
37
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
A tale of two mutual funds
o The France Growth Fund
o Active
o Benchmark SBF 120
o Indocam International
o French investment process
o Size: $247 ml
o Expense ratio: 1.3%
o Closed-end
o Indocam France
o Active
o Benchmark SBF 120
o Indocam
o French Investment Process
o Size: $214ml
o Expense ratio: 1.2%
o Open-end
[LOGO]
INDOCAM
International Investment Services
38
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
Indocam France: Market performance Vs. fluctuations of outstanding shares
[Line Chart Appears Here Showing the Monthly
Performance of the SBF 120 Index and Shares of
Indocam France from 1/29/93 to 1/29/99]
- -- SBF 120, monthly performance --INDOCAM France, Subscriptions
[LOGO]
INDOCAM
International Investment Services
39
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
France Growth Fund Vs. Indocam France: Relative performance
[Line Chart Appears Here Showing the Outperformance of
the Fund Compared to Indocam France Since 12/31/90]
Since Dec. 31, 1990:
FRF outperformed its open-ended counterpart by 24.60%
[LOGO]
INDOCAM
International Investment Services
40
<PAGE>
Discount to Net Asset Value
- ------------------------------------------------------------------------------
S&P 500, SBF 120 and FRF Discount
[Line Chart Appears Here Showing the Performance of
the S&P 500 Index, the SBF 120 Index and the Size of the Discount to
Net Asset Value for Fund Shares from 5/18/90 to 5/29/98]
- --S&P 600 composite --SBF Index [_] France Growth Fund: Historic Discount
/ Premium
[LOGO]
INDOCAM
International Investment Services
41
