Global Equity and International Fund Strategies First Quarter 2014 Review

After the majority of world markets performed exceptionally well in 2013, the first quarter of 2014 can be characterized as a market having little direction. There are many intertwined issues with increasing complexity and no particular issue has been taking leadership. On a macro level, we have come to accept a slower economic growth scenario globally in certain areas such as Europe and the emerging markets and central banks continuing to play a key role in financial markets. On a micro level,the companies in our portfolio had released their year-end numbers by quarter-end and provided guidance for the coming year. We found markets did not reward companies when they beat expectations to the same extent as in the past butrather companies were punished if their guidance was either cautious or not as robust as expected.

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