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 $5 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.

Representative Portfolio Characteristics (As of 12/31/2009)*

GlobeFlex International Small Cap Equity   S&P Developed ex U.S. SmallCap Index   Number of stocks           165             3,326   Market Capitalization         $1.5 B             $1.5 B   Superior Growth            Long-term Growth Rate           11%             10%        Short-term Growth Rate           11%             -7%   Reasonable Valuation            Current P/E Ratio              14x              16x

Status
This product is closed to new clients.

*All characteristics are medians, except for market cap which is a dollar-weighted median, as of December 31, 2009. 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 12/31 divided by earnings based on current year consensus company earnings forecast.