BAE Systems might have thought it was in the free and clear following its successful passage through a UK government probe into bribery accusations. Recent rumors that U.S. based watchdogs might now be investigating allegations regarding sizeable payments to Saudi officials have added fuel to this moldering story, however.
Despite these various headlines, the White House is plowing ahead with a plan to bypass the need for export license approval regarding arms sh
ipments to the United Kingdom. This is relatively insignificant to the long term fundamental drivers of the BAE Systems business model and has not even been sent to the U.S. Congress for approval. What is does underscore, in our opinion, is the important role national champion defense firms such as BAE, Lockheed Martin, and others currently play in the mind of Western government officials contemplating the current geopolitical landscape. With its key government customers happy and engaged, BAE Systems should enjoy robust demand for products over the medium term. Despite unflattering headlines, the path looks laid for this firm’s continued expansion not only in the all-important U.S. defense market but also in emerging markets such as Australia, Saudi Arabia, and Sweden.
Fund |
Portfolio Date |
Number of Shares |
Per Cent of Fund Assets |
---|---|---|---|
Rathbone Income & Growth | 31/03/2007 | 500,000 | 4.46 |
F&C UK Opp | 31/05/2007 | 1,250,000 | 4.04 |
HSBC UK Freestyle | 30/04/2007 | 1,007,165 | 3.91 |
ResolutionAsset UK Focus | 30/04/2007 | 127,432 | 3.87 |
Allianz RCM UK High Alpha | 30/04/2007 | 149,600 | 3.86 |
Skandia MultiMgr Tr UK Eq | 28/02/2007 | 2,582,370 | 3.68 |
Lazard UK Omega | 28/02/2007 | 2,382,980 | 3.67 |
Lord Abbett UK Gr & Inc | 31/01/2007 | 128,365 | 3.38 |
ML UK Dynamic | 28/02/2007 | 9,177,290 | 3.38 |
Gartmore UK Focus | 30/04/2007 | 1,637,000 | 3.10 |