Our Global Small Cap strategy is designed for clients wishing to capitalize on our investment team's stock picking ability in small companies throughout emerging markets. The investment team looks for emerging market companies with market capitalizations under $500 million that are undervalued relative to their long-term growth prospects.

In this strategy:

• The focus is on stock picking. The EMM team combs the universe of small capitalization companies in emerging markets to identify companies that are undervalued relative to their long-term growth prospects. Our analytical team conducts in-depth fundamental analysis of each firm recommended for inclusion in the portfolio.
  
  
• The stock selection process is rigorous, systematic and value-oriented. We conduct numerous company visits and utilize our proprietary database and earnings forecasts to compare industries and stocks. EMM's Investment Committee reviews and approves all stocks included in the Global Small Cap portfolio(s), generally prior to first purchase.
  
  
• Risk management is applied through careful review of country, currency and sector allocations relative to the FTSE Emerging Small Capitalization benchmark. Given the focus on stock picking, however, the tracking error may be high during certain market cycles.