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Investment Philosophy
The International Growth team believes that well-managed companies
tend to keep winning and that a key to maximizing portfolio returns is
minimizing losses. The team believes that finding a series of small
victories will, over time, build into long-term success. This philosophy
is what drives their search for market leaders with strong management,
clear business focus, competitive advantage and a strong balance sheet.
Diversification Through International Investing
Adding international investments to your portfolio may produce competitive returns while reducing risk. The portfolio with three-quarters domestic equity and one-quarter international equity provides strong returns with less risk than a portfolio of just domestic equity.
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RISK AND RETURN FOR THE 20-YEAR PERIOD ENDED 12/31/07
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The team finds securities desirable when they are attractively
valued—with favorable earnings revisions— compared to peers in their
industry. The team looks to build a well-diversified portfolio of what
they believe are high quality, growth companies that will outperform the
Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI
EAFE) Index in a consistent manner over time. |
Source: Lipper Inc. This chart is for illustrative purposes and is not intended to predict the returns of any particular investment. Past performance is no guarantee of future results.
Domestic portfolio is represented by the S&P 500 Index. International portfolio is represented by the Morgan Stanley Capital International (MSCI) EAFE Index. S&P 500 Index is an unmanaged index generally representative of the U.S. stock market. The MSCI EAFE Index measures the performance for a diverse range of stock markets within Europe, Australasia and the Far East. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. “Net dividends” reflects a reduction in dividends after taking into account withholding of taxes by certain countries represented in the Index. Indexes are unmanaged and their returns do not include any sales charges or fees.
Standard deviation is a measure of risk that represents the degree to which an investment’s performance has varied from its average performance over a particular period. The higher the number, the greater the risk. Standard deviation does not compare the risk of an investment relative to other investments or the overall stock market. Standard deviation is based on past performance and is not a guarantee of future results.
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The strategy’s investments in foreign securities involve risks that are
in addition to the risks associated with domestic securities; therefore,
the portfolio may be subject to additional currency, political,
economic, and market risks. Equity securities are subject to the basic
stock market risk that a particular security, or securities in general,
may decrease in value. There is no guarantee that this investment
strategy will work under all market conditions, and each investor should
evaluate their ability to invest for the long term, especially during
periods of downturn in the market. A separately managed account may not
be suitable for all investors. A minimum asset level is required.
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