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A proprietary database is used to screen for countries that meet the following standards: |
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Suitable safe custody of assets and freedom of capital movement |
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A higher-than-average number of undervalued stocks when comparing the companies against their benchmark values |
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A favorable domestic liquidity environment |
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A reasonably liquid and diverse stock market |
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A good or improving fiscal balance |
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An undervalued or fairly valued exchange rate, combined with sustainable trade and current account balances |
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Companies must exhibit one or more of the following: |
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Current or potential high and stable cash generation |
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Strong, liquid balance sheets |
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Asset valuations that are significantly below replacement cost1, or below the average for its sector on a global basis |
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A high free cash flow relative to the stock price |
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In the case of banks, a low stock price relative to the asset base, combined with a high return on equity |
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The Fund may invest in securities of any market capitalization |
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Normally invests in at least ten, but no fewer than seven, Asian countries (excluding Japan) |
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1Replacement cost is the cost that will have to be paid to replace an existing asset with a similar asset. |
