This article in Wharton Magazine (link below) provides an overview of the changing landscape in film-making. According to the article, three major factors are driving change in gross receipts: new distribution vehicles, international demand and 3D viewing technology. As distribution shifts among pay-TV channels, purchased and rented discs, and downloaded and streaming video, we see an opportunity to invest with the content owners, whose intellectual property is likely to be monetized in some form given the universal consumer demand for quality entertainment. The article highlights the growth of the foreign box office which increased +64% in the first five months of 2010 including China +189% and Russia +70%. This observation speaks to our Emerging Consumer theme which seeks to participate more generally in the spending growth that is accompanying the growing middle class in emerging markets—with filmed entertainment just one outlet for this secular shift in consumption, along with food and beverages, autos and even health care. Finally the article notes how important 3D revenues have been to the North American box office this year, comprising 11% of gross receipts compared to 2% in 2009. Our 3D theme is based on gaining exposure to owners and producers of high quality content whose value may be significantly enhanced by further consumer acceptance of 3D in a manner that is not currently appreciated by the marketplace.
This information is intended solely to report on investment strategies and opportunities identified by Roosevelt. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. This material is not intended as an offer or solicitation to buy, hold or sell any financial instrument. References to specific securities and their issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Please contact us at 646-452-6700 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions, or if you would like to request a copy of our Code of Ethics. Our current disclosure statement is set forth on our Form ADV Part II, available for your review upon request, and on our website, www.rooseveltinvestments.com.
Past performance is not a guarantee of future results. Indices are unmanaged and cannot accommodate direct investment. Themes assigned as per Roosevelt Investments’ evaluation. Risk tools may include cash or other securities that we believe possess a low or inverse correlation to the overall market.
INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE