International Small Cap Equity

Why We're Different

• We've built a large, proprietary research database which we use to analyze fundamental information on 4,500 international small/mid capitalization stocks.
  
  
• We've designed a distinct, bottom-up process in each of over 20 developed markets to find high growth stocks with earnings acceleration that are currently trading below their fair market values. We have defined the small/mid cap segment in each developed market.
  
  
• We select approximately 125 - 175 of the most attractive stocks in each developed market predominantly between $75 million and $6 billion in market capitalization.
  
  
• Our individual country weights are similar to the benchmark; our value-added is superior stock selection in each market.
  
  
• The portfolio remains fully invested and well-diversified, without any large stock or sector concentrations.

Portfolio Characteristics (As of  6/30/2008)*

GlobeFlex International Small Cap Equity   S&P/Citigroup Extended Market Index World ex U.S.   Number of stocks           165             4,737   Market Capitalization         $2.2 B             $2.2 B   Superior Growth            Long-term Growth Rate           27%             15%        Short-term Growth Rate           14%             9%   Reasonable Valuation            Current P/E Ratio           11x              12x

Status
This product is closed to new clients.

*All characteristics are medians, except for market cap which is a dollar-weighted median, as of June 30, 2008. The long-term growth rate is a five-year historical measure of company earnings; the short-term growth rate is current year consensus company earnings; the P/E ratio is share price as of 6/30 divided by earnings based on current year consensus company earnings forecast.