We use quantitative computer models to whittle that down to 500, sorting companies based on various valuation measures. We then begin a fundamental analysis of each company. Every research analyst, every investment professional has both global industry coverage as well as country responsibilities. As a result, a chemical company in Brazil, for example, is assessed by one analyst covering that region and another focusing on that industry. Once a company's been fully reviewed between the two analysts, it is presented to the entire research team.
Analysts call in and discuss the fundamentals of every company in our database.
Some of these discussions can be quite heated, but at the end of the day, we put together a list of about 100 companies from which we select the best for the portfolio. The biggest changes have been to increase the portfolio's exposure to emerging markets and to European countries, excluding the United Kingdom. Another change was to concentrate the portfolio and really focus on the top-tier companies. The number of names in the portfolio has dropped to 76 from 130. There are tech companies out there with very good profits and real earnings whose stock prices have been unfairly punished, and so we are seeing a value orientation to information technology at this point in time.