Our Small Cap Latin strategy is designed for clients wishing to capitalize on our investment team's stock picking ability in small companies in Latin America. The investment team looks for companies, within these countries, that are undervalued relative to their long-term growth prospects. Due to the focus on stock picking, benchmark risk is relatively high in this strategy.

In this strategy:

• Stock selection takes precedence over country allocation.
  
  
• The Portfolio Manager is responsible for country and stock allocation for this strategy. The Portfolio Management team selects stocks for the portfolio.
  
  
• The investment team selects stocks from the bottom-up. The stock selection process is rigorous, systematic and value-oriented. We conduct numerous company visits in Latin America and utilize our proprietary database and earnings forecasts to compare industries and stocks.
  
  
• While a few of the stocks held in the Small Cap Latin portfolio(s) may be included in our Global Active portfolios, and therefore go through our normal Investment Committee review process, the final investment decision within each portfolio is made by the Portfolio Manager and does not require Investment Committee review or approval.
  
  
• Frontier markets and smaller stocks are included in the investment universe in order to capitalize on market inefficiencies.