
Investment Objective:The Fund seeks long term growth of capital through investments in Korean equities.
Investment Process:The Fund uses a bottom-up strategy based on proprietary evaluation methods developed over more than a decade. The focus is on companies with the potential to grow earnings at a higher rate than overall Korean market averages.
Trading Discipline:Buy orders for target companies aim for oversold conditions. Sell orders are typically placed when companies have reached intrinsic value for next year’s earnings.
Hedging Capability:The fund has the capacity to short the Korean currency, Korean indices, and individual stocks. However, management has maintained a long bias since 2003, normally raising cash levels to 15% or higher during sustained market corrections.

| Portfolio by Security Type: As of 06/30/08 | ||
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| Common Stock: | 96.35% | |
| Preferred Stock | 0.00% | |
| Cash | 3.65% | |
| Portfolio by Market Cap: As of 06/30/08 | ||
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Large Cap (top 100 companies): | 96.35% |
| Mid-Cap (companies 101-300): | 0.00% | |
| Small Cap (companies 301 and below): | 0.00% | |
| Cash | 3.65% | |
| Sector Allocation: As of 06/30/08 | ||
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Korea Electric & Electr | 26.86% |
| Korea Transport Equipmt | 14.66% | |
| Korea Financial Industr | 12.19% | |
| Korea Basic Metallic Ix: | 8.34% | |
| Korea Chemical Product: | 5.77% | |
| Korea Wholesale Index | 5.16% | |
| Korea Communication Svc | 4.01% | |
| Korea Electric & Gas: | 3.99% | |
| Korea Trasportation & Strge | 3.53% | |
| Korea Construction Indx | 3.25% | |
| Korea Miscellaneous Indx: | 3.21% | |
| Kosdaq IT Composite Indx | 2.25% | |
| KoreaService Industry | 1.63% | |
| Korea Paper & Papre Product Index | 0.83% | |
| Korea Medical Prec Equip | 0.68% | |
| Cash | 3.65% | |