The Global Equity Portfolio is closed effective June 30, 2005.
Today, over half of the world’s equity value is located outside the United States. This means that substantial investment opportunities are located in non-U.S. markets. In seeking issues for our Global Equity Portfolio, we search worldwide for companies meeting our strict investment criteria.
The portfolio applies a Graham & Dodd value approach to stock selection. Generally, a security will be bought if it is trading below what we believe to be its estimated value. This conservative approach strives to provide investors with a margin of safety.
Among the potential benefits of a global approach to stock selection is enhanced diversification. Stock markets around the world tend to operate independently of one another. In any given year, it is common for a number of non-U.S.markets to outperform stocks in the United States. By investing in a diversified portfolio of both U.S. and non-U.S. equities, it has been possible to both reduce risk and increase rewards. However, investing internationally involves unique risks, including the potential for political, economic, and currency instability. Investors should carefully considerthese risks in the context of their overall objective, time horizon, and asset allocation prior to investing.
For a more complete description and discussion of risks of international investing, consult Brandes' Form ADV, Part II.