The portfolio managers invest in "growth" and "value" companies. This gives them the flexibility to choose stocks that are best suited for achieving the fund's objectives.

They use different investment tactics for different markets. The countries in which the managers invest are selected based upon macro-economic and political factors. In developed markets, they use a bottom-up analytical approach, where they pick stocks by relying more on the fundamentals and outlook of each company. When researching companies in the emerging markets, the portfolio managers use a top-down approach-making investment decisions based on their perception of the current and future macro-economic picture. For the Japanese market, the managers utilize a hybrid approach, employing a combination of the top-down and bottom-up investment techniques.

The fund's portfolio managers look for companies that are dominant competitors or are in dynamic transition, meaning that they may be candidates for revaluation due to the introduction of new products or innovations, new management, regulatory changes, or mergers and/or acquisitions.

Fund management's stock research/selection process includes the utilization of direct company contact, an internal company research network, external third-party (broker) research, and research databases.

A Word about Risk

International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards, and potential political and economic instability. These risks are further accentuated in emerging market countries, where risks can also include possible economic dependency on revenues from particular commodities or on international aid or development assistance, currency transfer restrictions, and liquidity risks related to lower trading volumes. Investing in mid-cap stocks may involve greater risks than investing in larger, more established companies. These companies often have narrow markets and more limited managerial and financial resources.