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
	Common Stock:	96.35%
	Preferred Stock	0.00%
	Cash	3.65%

Portfolio by Market Cap: As of 06/30/08
	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
	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%