oechsle international advisors, llc · 2004-04-07 · oechsle international advisors, llc 2 james...

B o s t o n L o n d o n F r a n k f u r t T o k y o

Oechsle International Advisors, LLCOechsle International Advisors, LLC

Presentation to:

Fresno County Employees' Retirement Association

April 4, 2007

2Oechsle International Advisors, LLC

James G. Damon, CFA

is a Senior Vice President and serves on Oechsle's Investment Strategy Committee. His responsibilities encompass risk management, portfolio construction and client communications. Prior to joining Oechsle, Mr. Damon was a Senior Portfolio Analyst at Putnam Investments in the Global Core Equity group. Prior to Putnam, he was a Consulting Associate at Cambridge Associates in Boston, Massachusetts. Mr. Damon has over 9 years of investment experience.

Mr. Damon is a graduate of Middlebury College where he received a B.A. in Economics and French. He is a CFA charterholder and a member of the Boston Security Analysts Society.

John L. Simpson, Ph.D, CFA

is a Principal and Portfolio Manager/Research Analyst. Prior to joining the company in January 1999, Mr. Simpson was a Vice President and International Economist in Foreign Exchange Trading for Goldman, Sachs & Co. He began his career as a financial markets economist at the Federal Reserve Bank of New York.

Mr. Simpson earned a Ph.D. in Economics from the Massachusetts Institute of Technology and a B.A. (Honors) in Economics and Mathematical Methods in the Social Sciences from Northwestern University. He is also a Chartered Financial Analyst (CFA) charterholder.


Independent, employee-owned

Continuity of investment team and process

Commitment to international investing

Organizational Highlights


Portfolio ManagementInvestment Research

Investment Research

Portfolio ManagementInvestment ResearchTradingClient LiaisonPortfolio Administration

Portfolio Management Fixed IncomeInvestment Research

London Frankfurt

TokyoBoston

Worldwide Offices


Summary of Investment TeamMarch 2007

Total Years of EducationName Experience School Degree

L. Sean Roche 31 London School of Economics BSC

James G. Damon, CFA 9 Middlebury College BA

Roman Kostal 12 Univ. of Economy MBA

Anthony L. Leggett, CFA 27 Johns Hopkins SAIS MA

Yasu Miyamoto 13 Harvard University MBA

Michael McDonagh 35 The City of London College BA

Mark Nichols 7 Oxford University MA

John O’Callaghan, CFA 19 Trinity College, Dublin BAI

Neville Pike 24 Univ. of Nottingham BA

Adrian Pilz 11 Oxford University DPhil

Peter Sanborn, CFA 21 Stanford University MBA

John Simpson, Ph.D., CFA 14 M.I.T. Ph.D.

Astrid Vogler 33 Dresdner Bank Cert.

Warren R. Walker 25 Kenyon College BA


49%

11%

21%

16%3%

Assets Under ManagementFebruary 28, 2007

Total Assets Under Management (in $millions) $15,215*

Public FundsCorporate Clients

Subadvisory Relationships

Other (Taxable, Private, Miscellaneous)

Endowments, Foundations& Religious Institutions

$2,420

$1,670

$3,200

$7,462

$463

*This figure includes $406 million in assets of the Fixed Income Firm and $955 million in assets of the Wrap Firm that are not GIPS compliant.


Boise CascadeCitibank, N.A.Deutsche Bank

Corporate ClientsEnergizer Inc. General AtomicsManulife Financial

OfficeMax Incorporated Pitney Bowes, Inc.Retirement Plan of Idaho Power

Public Fund Clients

Representative Client List*

Southern California Edison CompanyYMCA Retirement Fund

* The clients listed represent various mandates (including Core-Plus with Emerging Markets, Europe-Only, Select, Fixed Income and others) and various account types (including institutional separate accounts, open-end mutual funds, Canadian funds, unregistered investment funds, and others) under Oechsle’s management. Neither performance nor size was a selection criterion. Reference to the listed clients should not be taken as indicating whether they approve or disapprove of Oechsle or the advisory services that the firm provides.

Alberta Investment ManagementCaisse de dépôt et placement du QuébecCalifornia State Teachers’ Retirement SystemCity of Miami Fire Fighters’ and Police Officers’ Retirement Trust Employees’ Retirement System of Hawaii

Fresno County Employees' Retirement AssociationIowa Public Employees’ Retirement SystemIreland – National Pension Reserve FundSan Bernardino County Employees' Retirement AssociationVirgin Islands Gov’t Employees’ Retirement System

Dearborn PartnersHarbor Capital Advisors, Inc.

Sub-Advisory RelationshipsLowe, Brockenbrough & Company Inc. MetLife Advisors, LLC

The Northern Trust Company of ConnecticutQueensland Investment Corporation


Endowment & Foundation Clients

The Benedum FoundationCatholic University of AmericaChildren’s Hospital FoundationCornell UniversityGeorgia Tech Foundation

Stanford UniversitySyracuse UniversityThe Whittier Trust CompanyThe Marvin M. Schwan Charitable Foundation

Missouri Foundation for HealthUniversity of Nebraska FoundationOishei FoundationUniversity of Rochester

Representative Client List*

* The clients listed represent various mandates (including Core-Plus with Emerging Markets, Europe-Only, Select, Fixed Income and others) and various account types (including institutional separate accounts, open-end mutual funds, Canadian funds, unregistered investment funds, and others) under Oechsle’s management. Neither performance nor size was a selection criterion. Reference to the listed clients should not be taken as indicating whether they approve or disapprove of Oechsle or the advisory services that the firm provides.

Hospitals, Associations, Taft-Hartley Funds, Religious Institutions, et.al

Carefirst BlueCross BlueShield of Maryland

Children’s Medical Center (MA)

Cordares Vermogensbeheer

Dana Farber Cancer Institute

Danish Lawyers’ and Economists’ Pension Fund

The Danish Pension Fund for Engineers

The First Church of Christ, Scientist

Generalate of the Sisters of the Good Shepherd

Group Hospitalization and Medical Services, Inc.

IWA-Forest Industry Pensions & Ltd. Plans

ProMedica Health Systems

Reform Pension Board

The United Way of Greater Rochester


Time Period Portfolio Return M.S.C.I. EAFE Index M.S.C.I. EAFE GrowthIndex

December 2005* + 5.73% + 4.65% + 5.29%

January 2006 + 5.26 + 6.14 + 6.16February 2006 - 0.50 - 0.22 - 1.14March 2006 + 4.50 + 3.30 + 3.861st Quarter 2006 + 9.45% + 9.40% + 9.01%

April 2006 + 3.80 + 4.78 + 4.55May 2006 - 4.68 - 3.88 - 4.23June 2006 + 0.44 - 0.01 + 0.132nd Quarter 2006 - 0.62% + 0.70% + 0.26%

July 2006 + 0.58 + 0.99 + 0.46August 2006 + 3.02 + 2.75 + 2.42September 2006 + 0.27 + 0.15 - 0.563rd Quarter 2006 + 3.90% + 3.92% + 2.31%

October 2006 + 3.19 + 3.89 + 3.40November 2006 + 2.84 + 2.99 + 2.91December 2006 + 2.31 + 3.14 + 2.804th Quarter 2006 + 8.57% + 10.35% + 9.40%---Year 2006--- + 22.70% + 26.34% + 22.33%

January 2007 - 0.29 + 0.68 + 0.80February 2007 + 0.82 + 0.81 + 0.77

Cumulative Return: + 30.41% + 34.19% + 30.84%

Fresno County Employees' Retirement AssociationPerformance Comparison vs. M.S.C.I. EAFE Index & M.S.C.I. EAFE Growth Index

*Inception Date 11/30/05


97 98 99 00 01 02 03 04 05 06800

1000

1200

1400

1600

1800

2000

MSCI EAFE Index(US Dollars)1/1/1997 – 12/31/06

55.06%

AnnualizedReturn From

1/1/97-12/31/06

48.2361.54

EAFE

EAFE Growth

EAFE Value

-43.32%

-52.19-33.63

92.16Diversified International**

-42.89

**Diversified International Composite Source: InterSec Non-U.S. Equity Growth Universe

139.04%

112.39168.02136.55

7.71%

5.07

10.18

10.01

Past performance is not indicative of future results

EAFE GrowthDiversified International Composite

24.3

3 Years Ending 1999**

17.3

-17.0

3 Years Ending 2002**

- 21.8

4 Years Ending 2006**20.7

24.0

Oechsle International Advisors, LLC Fresno County

MARKET REVIEW Since Inception Ending December 31, 2006

MARKET REVIEW - 11/30/05 - 12/31/06 Total Return (local)

TRAILING 12 MONTHS Total Return (local)

SECTOR REVIEW - 11/30/05 - 12/31/06 Total Return (local)

Source: MSCI

0

5

10

15

20

25

30

35

40

45

Utilitie

sMate

rials

Industrial

sFinan

cials

Cons. Disc

.Cons.

Staples

MSCI EAFE

Teleco

msInfo Tec

hHea

lthca

reEnerg

y

0% 10% 20% 30% 40% 50%

Pacific

EAFE

Europe

AC World Index ex USA

EM (Emerging Markets)

Japan

New Zealand

Australia

Hong Kong

Singapore

United Kingdom

Switzerland

Finland

Netherlands

Italy

France

Germany

Austria

Belgium

Greece

Sweden

Denmark

Spain

Norway

Ireland

Portugal

-10

-5

0

5

10

15

20

25

30

35

Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06

EM Free Pacific

Europe EAFE

11

Oechsle International Advisors, LLCRELATIVE PERFORMANCE MSCI Japan vs MSCI EAFE (in USD) June 30, 2005 to December 31, 2006

12

Oechsle International Advisors, LLCPERFORMANCE ATTRIBUTION Since Inception Ending December 31, 2006

RELATIVE PERFORMANCE (in USD) 11/30/05 - 12/31/06 Fresno County 29.72MSCI EAFE Index 32.22

Excess Return -2.50

ATTRIBUTION OF EXCESS RETURN - SECTOR (in bps) ATTRIBUTION OF EXCESS RETURN - COUNTRY (in bps)

NOTE: Attribution analysis is based on internal Oechsle systems for indicative purposes only. Results are calculated on unaudited closing daily market positions. Actual performance results may vary.

-200

-150

-100

-50

0

50

100

Allocation Stock Selection Currency Cash-200

-150

-100

-50

0

50

100

Allocation Stock Selection Currency Cash

13

Oechsle International Advisors, LLCUNDERPERFORMANCE OF GROWTH MSCI EAFE Growth vs MSCI EAFE Value (in USD) 1995 to 2006

-22%

-19%

-16%

-13%

-10%

-7%

-4%

-1%

2%

5%

8%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

14

Oechsle International Advisors, LLCPERFORMANCE ATTRIBUTION Since Inception Ending December 31, 2006

RELATIVE PERFORMANCE (in USD) 11/30/05 - 12/31/06 Fresno County 29.72MSCI EAFE Growth Index 28.80

Excess Return 0.92

ATTRIBUTION OF EXCESS RETURN - SECTOR (in bps) ATTRIBUTION OF EXCESS RETURN - COUNTRY (in bps)

NOTE: Attribution analysis is based on internal Oechsle systems for indicative purposes only. Results are calculated on unaudited closing daily market positions. Actual performance results may vary.

-150

-100

-50

0

50

100

150

200

250

300

Allocation Stock Selection Currency Cash-150

-100

-50

0

50

100

150

200

250

300

Allocation Stock Selection Currency Cash

15

Oechsle International Advisors, LLCJAPANESE STOCK SELECTION DETAIL Calendar Year 2006

PORTFOLIO PERFORMANCE RELATIVE TO THE MSCI JAPAN GROWTH & MSCI JAPAN VALUE INDICESFresno

Avg. Weight

Growth Avg.

WeightValue Avg.

WeightFresno Return

Growth Return

Value Return

Consumer Discretionary 22.26 14.85 26.16 2.29 -0.38 23.65Consumer Staples 5.15 6.43 3.98 -25.90 0.55 15.59Energy 0.00 0.62 1.38 0.00 -7.29 -5.93Financials 43.17 31.51 13.64 1.37 -3.46 -8.78Health Care 0.00 3.62 7.04 0.00 22.21 33.40Industrials 7.00 15.45 17.88 1.51 0.79 4.71Information Technology 16.31 15.68 10.52 14.62 -0.56 19.42Materials 3.29 11.41 6.86 0.07 2.98 28.56Telecommunication Services 2.63 0.41 4.41 6.67 3.93 10.60Utilities 0.00 0.00 8.13 0.00 0.00 29.98Total Return 2.06 0.10 14.78

Sector

16

Oechsle International Advisors, LLCCOUNTRY ATTRIBUTION Since Inception Ending December 31, 2006

MARKET REVIEW - 11/30/05 - 12/31/06 Total Return (local)

COUNTRY ALLOCATION

Germany 3.7 11

Japan 5.1 -30Hong Kong -1.7 -14Ireland -0.8 * -14Australia -4.1 -12

STOCK SELECTION

United Kingdom 6.7 124Germany 2.8 37

Japan -3.7 -72Spain -22.5 -70Switzerland -6.3 -39Norway -50.4 -30

NOTE: A "*" indicates that the portfolio had no holdings in this country/sector during the reporting period.

Country

Portfolio Outperf. (Local)

Rel. Perf. Impact (BPs)

Country

Average Active Weight


-20% -10% 0% 10% 20% 30% 40% 50% 60% 70%

Port./Bench

Japan

New Zealand

Australia

Hong Kong

Singapore

United Kingdom

Switzerland

Finland

Netherlands

Italy

France

Germany

Austria

Belgium

Greece

Sweden

Denmark

Spain

Norway

Ireland

Portugal

PortfolioBenchmark

Posi

tives

Neg

ativ

esPo

sitiv

esN

egat

ives

17

Oechsle International Advisors, LLCSECTOR ATTRIBUTION Since Inception Ending December 31, 2006

SECTOR REVIEW - 11/30/05 - 12/31/06 Total Return (local)

SECTOR ALLOCATION

Telecommunication Services 0.4 4Health Care 0.2 2Financials 1.7 2

Utilities -2.3 -42Energy 0.7 -34Information Technology 3.1 -27Materials -2.5 -10Industrials -3.8 -9

STOCK SELECTION

Health Care 3.8 33Information Technology 3.8 30Utilities 13.6 28

Consumer Discretionary -6.4 -74Industrials -6.1 -36Materials -4.3 -34

NOTE: A "*" indicates that the portfolio had no holdings in this country/sector during the reporting period.

Sector

Portfolio Outperf. (Local)


Sector

Average Active Weight


0% 10% 20% 30% 40% 50% 60%

PortfolioBenchmark

Energy

Health Care

InformationTechnology

TelecommunicationServices

Consumer Staples

ConsumerDiscretionary

Financials

Industrials

Materials

Utilities

PortfolioBenchmark

Posi

tives

Neg

ativ

esPo

sitiv

esN

egat

ives

18

Oechsle International Advisors, LLCTOP CONTRIBUTORS Since Inception Ending December 31, 2006

TOP 10 POSITIVE CONTRIBUTORS TO RELATIVE PERFORMANCE - 11/30/05 - 12/31/06

CountryEnding Weight

Avg. Active Weight (%)

Rel. Cont. (in bps)

Schering Health Care Germany 0.00 0.58 70Land Securities Financials United Kingdom 2.29 1.82 60Mitsubishi Estate Financials Japan 2.10 1.75 57Suez Utilities France 2.02 1.41 55BP Energy United Kingdom 0.00 X 52Whitbread Consumer Discretionary United Kingdom 1.22 1.04 50Nordea Bank Financials Sweden 1.55 1.16 28J Sainsbury Consumer Staples United Kingdom 1.17 0.97 26KPN Telecommunication Services Netherlands 2.22 1.84 25Berkeley Group Holdings Consumer Discretionary United Kingdom 0.74 0.55 24

TOP 10 NEGATIVE CONTRIBUTORS TO RELATIVE PERFORMANCE - 11/30/05 - 12/31/06

CountryEnding Weight

Avg. Active Weight (%)

Rel. Cont. (in bps)

Seven & I Holdings Consumer Staples Japan 1.17 1.28 -51Mitsubishi UFJ Financial Group Financials Japan 2.19 1.74 -49Marui Consumer Discretionary Japan 0.41 0.62 -47Sumitomo Mitsui Financial Group Financials Japan 2.05 1.86 -34Statoil Energy Norway 0.99 0.28 -30Repsol YPF Energy Spain 2.50 2.20 -28Pioneer Consumer Discretionary Japan 0.77 0.77 -25Matsushita Electric Industrial Consumer Discretionary Japan 0.95 0.75 -24TDK Information Technology Japan 0.56 0.53 -23Nikko Cordial Financials Japan 0.47 0.53 -22

NOTE: An "X" represents a stock not held in the portfolio during the period reported. Attribution analysis is based on internal Oechsle systems for indicative purposes only.Results are calculated on unaudited closing daily market positions. Stocks may have been bought, sold, added or reduced during the period. Actual performance results may vary.

Company Sector

Company Sector

19

Oechsle International Advisors, LLCCURRENT PORTFOLIO PROFILE Portfolio vs. MSCI EAFE Index

COUNTRY ALLOCATIONS12/31/05 12/31/06

Port. Weight

Bench Weight

Active Weight

Port. Weight

Bench Weight

Active Weight

Netherlands 7.3 3.6 3.7% 7.4 3.7 3.7% 0.0% Germany 10.5 6.7 3.8% 10.8 7.4 3.5% -0.3% Italy 3.6 3.8 -0.2% 5.0 3.9 1.2% 1.3% France 7.3 9.2 -1.9% 10.9 9.8 1.1% 3.0% Greece 1.1 0.6 0.4% 1.2 0.6 0.6% 0.1% Portugal 0.4 0.3 0.1% 0.6 0.3 0.2% 0.1% Norway 0.0 0.7 -0.7% 1.0 0.9 0.1% 0.8% Denmark 0.0 0.8 -0.8% 0.8 0.8 -0.1% 0.7% Sweden 2.3 2.4 -0.1% 2.5 2.6 -0.1% 0.0% Finland 0.4 1.4 -1.1% 1.1 1.4 -0.3% 0.8% Spain 3.5 3.7 -0.2% 3.5 4.1 -0.6% -0.3% Austria 0.0 0.4 -0.4% 0.0 0.6 -0.6% -0.2% Ireland 0.0 0.8 -0.8% 0.0 0.9 -0.9% -0.1% Switzerland 6.1 6.9 -0.8% 5.9 6.9 -1.0% -0.1% Belgium 0.0 1.1 -1.1% 0.0 1.3 -1.3% -0.1% United Kingdom 18.9 24.0 -5.0% 20.1 23.7 -3.6% 1.5% EUROPE 61.4 66.5 -5.1% 71.0 69.0 2.0% 7.1%

Japan 31.6 25.7 6.0% 26.6 22.6 4.1% -1.9% Singapore 1.2 0.8 0.4% 1.5 0.9 0.5% 0.1% New Zealand 0.0 0.2 -0.2% 0.0 0.2 -0.2% 0.0% Hong Kong 0.0 1.7 -1.7% 0.0 1.8 -1.7% -0.1% Australia 2.0 5.2 -3.2% 0.0 5.5 -5.5% -2.3% PACIFIC BASIN 34.8 33.5 1.3% 28.2 31.0 -2.8% -4.2%

Non-EAFE Markets 0.0 0.0 0.0% 0.0 0.0 0.0% 0.0%

Cash 3.8 0.0 3.8% 0.9 0.0 0.9% -2.9% TOTAL 100% 100% 100% 100%

NOTE: Analysis is based on internal Oechsle systems for indicative purposes only. Reconciled client reports may vary.

Country

Change Over

Period

20

Oechsle International Advisors, LLCCURRENT PORTFOLIO PROFILE Portfolio vs. MSCI EAFE Index

SECTOR ALLOCATIONS12/31/05 12/31/06

Port. Weight

Bench Weight

Active Weight

Port. Weight

Bench Weight

Active Weight

Information Technology 8.8 6.2 2.6% 9.5 5.7 3.8% 1.3% Energy 7.8 8.1 -0.2% 9.9 7.2 2.6% 2.8% Financials 30.3 28.5 1.9% 31.6 29.9 1.7% -0.2% Telecommunication Services 5.5 5.6 -0.1% 5.9 5.3 0.6% 0.7% Consumer Discretionary 14.3 12.3 2.0% 12.6 12.0 0.6% -1.4% Health Care 8.0 7.9 0.2% 6.9 7.0 -0.2% -0.3% Consumer Staples 5.6 7.8 -2.2% 7.3 7.9 -0.7% 1.5% Utilities 2.3 4.9 -2.6% 3.6 5.5 -1.9% 0.7% Industrials 6.5 10.7 -4.3% 8.2 10.9 -2.8% 1.5% Materials 7.0 8.0 -1.0% 3.7 8.4 -4.7% -3.7%

Cash 3.8 0.0 3.8% 0.9 0.0 0.9% -2.9% TOTAL 100% 100% 100% 100%


Sector

Change Over

Period

21

Oechsle International Advisors, LLCCURRENT PORTFOLIO PROFILE As of December 31, 2006

TOP 10 HOLDINGS

Sector Country Weight

Royal Dutch Shell Energy United Kingdom 2.86Repsol YPF Energy Spain 2.50Land Securities Group Financials United Kingdom 2.29KPN Telecommunication Services Netherlands 2.22Mitsubishi UFJ Financial Group Financials Japan 2.19GlaxoSmithKline Health Care United Kingdom 2.16Mitsubishi Estate Financials Japan 2.10ENI Energy Italy 2.07Sumitomo Mitsui Financial Group Financials Japan 2.05Suez Utilities France 2.02

TOTAL 22.47 %

TOP 10 OVERWEIGHTS TOP 10 UNDERWEIGHTSPort.

WeightBench Weight

Active Weight

Port. Weight

Bench Weight

Active Weight

Repsol YPF 2.5 0.2 2.3% BP 0.0 1.7 -1.7%Land Securities Group 2.3 0.2 2.1% HSBC Holdings 0.0 1.6 -1.6%KPN 2.2 0.2 2.0% Toyota Motor Corp. 0.0 1.5 -1.5%Mitsubishi Estate 2.1 0.2 1.9% Vodafone Group 0.0 1.1 -1.1%Suez 2.0 0.4 1.6% Royal Bank of Scotland Group 0.0 1.0 -1.0%Sumitomo Mitsui Financial Group 2.0 0.5 1.6% UBS 0.0 0.9 -0.9%NTT Data 1.5 0.0 1.5% BHP Billton 0.0 0.9 -0.9%ENI 2.1 0.7 1.4% Banco Santander Central Hispano 0.0 0.9 -0.9%Mitsubishi UFJ Financial Group 2.2 0.8 1.4% Barclays 0.0 0.7 -0.7%DBS Group Holdings 1.5 0.1 1.3% BNP Paribas 0.0 0.7 -0.7%


Company

Company

Company

22


Active Weights: Fresno County vs. MSCI EAFE

Portfolio vs. MSCI EAFE Index (Country, Sector, Industry, Currency, Market Cap and Stocks) As of December 31, 2006

-10.59-5.73-5.55

-4.84-4.64

-4.14-3.57

-2.89-2.31

-1.92-1.74-1.71-1.64-1.63-1.61-1.51-1.39-1.25-1.14-1.11

1.701.711.871.872.012.032.122.272.322.362.472.63

3.443.453.463.693.944.09

8.4510.84

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

Smallest MC QuintileCommercial Banks

Australia (& AUD Currency)Largest MC Quintile

MaterialsMetals & Mining

United Kingdom (& GBP Currency)Industrials

AutomobilesUtilities

Hong Kong (& HKD Currency)BP

HSBC HoldingsElectric Utilities

MachineryToyota Motor

BeveragesBelgium

Vodafone Group Media

2nd Largest MC QuintileAerospace & Defense

Oil & GasMitsubishi Estate

KPN2nd Smallest Quintile

Land Securities Group Repsol YPF

Real Estate Management & DevelopmentHousehold Durables

Capital MarketsEnergy

InsuranceFood & Staples Retailing

GermanyNetherlands

Information TechnologyJapan (& JPY Currency)

Euro CurrencyMiddle (3rd) MC Quintile

Top Overweights

Top Underweights


Inefficiencieswithin and between equity markets provide opportunities for incremental returns.

Investment Horizonone to two years, the period during which the greatest identifiable inefficiencies occur.

Researchobjective is to transform inefficiencies into superior returns.

Investment Philosophy & Tactics*

*There can be no guarantee that any portfolio or performance objective will be achieved.

Market/Sector Weightssignificant deviation from benchmark weights when warranted by fundamentals.

Risk Controlachieved through broad country/sector diversification and comparison of risk factors.


• Team Members assigned geographic and industry responsibility

• Analysts develop top-down framework and bottom-up stock ideas for discussion

- Meet semi-annually (Investment Strategy Committee)

- Recommend both Buy and Sell ideas

Investment Process

U.K.

MEXICO

JAPAN

AutoPharmaceutical Energy


Portfolio Construction

Realization of return expectationsChange in fundamentalsReplaced by new idea

Key: Intensive Fundamental Stock Research

3,000+ CompaniesAll Capitalization

45+ Markets

800+ CompaniesFavorable operating Environment

Investment ThemesFundamental Analysis

Typically about 90 stocksTop 10 = 20%-35%

12+ markets

Sell Candidates

Portfolio

Best adjusted return potentialTypically between 80 – 110 stocks

12+ Markets

Company Meetings

Investment Opportunities

Stock Universe


Portfolio Holdings

PORTFOLIO VALUATION BY COUNTRY FRESNO COUNTY

12/31/06

Portfolio Curr: US

QUANTITY SECURITY MARKET MARKET VALUE MARKET VALUE PERCENTTEST2 CALCDESCRIPTION PRICE (LOCAL) (US$) ASSETS

DENMARK STOCKS

18,339 NOVO NORDISK B 470.500 8,628,499.5 1,526,331 0.77% 0.00 DENMARK STOCKS

18,339 8,628,499.5 1,526,331 0.77%

EURO N/A 175,386.67 231,282 0.12% N/A 175,386.67 231,282 0.12%

EURO

108,577 NOKIA OY SER A 15.480 1,680,771.96 2,216,434 1.12% 0.00 EURO

108,577 1,680,771.96 2,216,434 1.12%

EURO

138,653 ALCATEL-LUCENT 10.900 1,511,317.7 1,992,975 1.01% 0.0034,913 CARREFOUR 45.940 1,603,903.22 2,115,067 1.07% 0.0012,288 CASINO GUICHARD 70.400 865,075.2 1,140,775 0.58% 0.0032,890 EADS 26.100 858,429 1,132,010 0.57% 0.0035,080 FRANCE TELECOM 20.950 734,926 969,147 0.49% 0.0013,180 PPR 113.200 1,491,976 1,967,469 1 % 0.0024,378 SAINT-GOBAIN 63.650 1,551,659.7 2,046,174 1.04% 0.0018,135 SANOFI-AVENTIS 69.950 1,268,543.25 1,672,828 0.85% 0.0077,395 SUEZ SA 39.230 3,036,205.85 4,003,845 2.03% 0.0039,118 TOTAL SA 54.650 2,137,798.7 2,819,115 1.43% 0.00


12/31/06

Portfolio Curr: US


EURO - cont.44,891 VIVENDI SA 29.610 1,329,222.51 1,752,846 0.89% 0.00

EURO470,921 16,389,057.13 21,612,250 10.93%

EURO

15,764 ALLIANZ AG 154.910 2,442,001.24 3,220,267 1.63% 0.0011,198 ALTANA AG 46.850 524,626.3 691,825 0.35% 0.0035,378 BAYER AG 40.830 1,444,483.74 1,904,841 0.96% 0.0024,378 DEUTSCHE BANK AG 101.580 2,476,317.24 3,265,520 1.65% 0.0018,144 DEUTSCHE POSTBANK AG 63.740 1,156,498.56 1,525,075 0.77% 0.0044,990 INFINEON TECHNOLOGIS 10.660 479,593.4 632,440 0.32% 0.0022,297 KARSTADT QUELLE AG 21.980 490,088.06 646,279 0.33% 0.0022,297 METRO AG 48.190 1,074,492.43 1,416,933 0.72% 0.0012,189 MUENCHENER RUECKVER REG 131.000 1,596,759 2,105,646 1.07% 0.0048,008 SAP AG 40.340 1,936,642.72 2,553,851 1.29% 0.0035,350 SIEMENS AG 75.600 2,672,460 3,524,173 1.78% 0.00

EURO289,993 16,293,962.69 21,486,849 10.87%

EURO

79,278 HELLENIC TELECOMMUN ORGANIZA 22.760 1,804,367.28 2,379,419 1.2 % 0.00 EURO

79,278 1,804,367.28 2,379,419 1.2 %

HONG KONG STOCKS (US DOLLARS)


12/31/06

Portfolio Curr: US


HONG KONG STOCKS (US DOLLARS) - cont.3,712 MELCO PBL ENTERTAINMENT ADR 21.260 78,917.12 78,917 0.04% 0.00

HONG KONG STOCKS (US DOLLARS)3,712 78,917.12 78,917 0.04%

EURO

196,497 ENEL SPA 7.815 1,535,624.06 2,025,027 1.02% 0.00121,790 ENI 25.480 3,103,209.2 4,092,202 2.07% 0.0052,125 GENERALI 33.270 1,734,198.75 2,286,888 1.16% 0.00

180,882 UNICREDITO ITALIANO SPA 6.640 1,201,056.48 1,583,833 0.8 % 0.00 EURO

551,294 7,574,088.49 9,987,950 5.05%

JAPANESE YEN N/A 4,140,918 34,752 0.02% N/A 4,140,918 34,752 0.02%

JAPANESE STOCKS

68,400 BRIDGESTONE 2655.000 181,602,000 1,524,082 0.77% 0.0029,800 CANON 6700.000 199,660,000 1,675,633 0.85% 0.00

137,000 DAIWA SECURITIES 1335.000 182,895,000 1,534,933 0.78% 0.00297 EAST JAPAN RAILWAY 795000.000 236,115,000 1,981,579 1 % 0.00

10,600 FANUC LTD 11720.000 124,232,000 1,042,608 0.53% 0.0019,800 FAST RETAILING 11360.000 224,928,000 1,887,693 0.96% 0.0011,300 HOYA CORPORATION 4640.000 52,432,000 440,032 0.22% 0.0065,700 JSR CORP. 3080.000 202,356,000 1,698,259 0.86% 0.006,400 KEYENCE CORPORATION 29490.000 188,736,000 1,583,954 0.8 % 0.00

70,100 MARUI CO. 1388.000 97,298,800 816,573 0.41% 0.0094,000 MATSUSHITA ELECTRIC IND. 2375.000 223,250,000 1,873,610 0.95% 0.00


12/31/06

Portfolio Curr: US


JAPANESE STOCKS

49,500 MILLEA HOLDINGS 4200.000 207,900,000 1,744,786 0.88% 0.00161,000 MITSUBISHI ESTATE 3080.000 495,880,000 4,161,638 2.11% 0.00

351 MITSUBISHI UFJ FINANCIAL GROUP 1470000.000 515,970,000 4,330,242 2.19% 0.0080,500 NIKKO CORDIAL 1365.000 109,882,500 922,181 0.47% 0.00

164,400 NISSAN MOTOR 1433.000 235,585,200 1,977,132 1 % 0.00167,100 NOMURA HOLDINGS 2245.000 375,139,500 3,148,332 1.59% 0.00

596 NTT DATA CORP. 596000.000 355,216,000 2,981,125 1.51% 0.00892 NTT DoCoMo 188000.000 167,696,000 1,407,377 0.71% 0.00

111,400 PIONEER CORP 1634.000 182,027,600 1,527,654 0.77% 0.0027,700 SECOM CO LTD 6170.000 170,909,000 1,434,342 0.73% 0.0074,600 SEVEN & I HOLDINGS 3700.000 276,020,000 2,316,479 1.17% 0.00

109,000 SHARP CORPORATION 2050.000 223,450,000 1,875,288 0.95% 0.00396 SUMITOMO MITSUI FINANCIAL 1220000.000 483,120,000 4,054,551 2.05% 0.00

28,750 T & D HOLDINGS 7870.000 226,262,500 1,898,892 0.96% 0.0014,000 TDK CORPORATION 9460.000 132,440,000 1,111,493 0.56% 0.0022,300 TOKYO ELECTRON 9380.000 209,174,000 1,755,478 0.89% 0.00

JAPANESE STOCKS1,525,882 ,280,177,100 52,705,947 26.66%

EURO

37,954 ABN AMRO HLDGS NV 24.350 924,179.9 1,218,716 0.62% 0.0059,260 AEGON N.V. 14.440 855,714.4 1,128,431 0.57% 0.0027,846 AKZO NOBEL EU 46.210 1,286,763.66 1,696,855 0.86% 0.0054,900 FORTIS (AMS) 32.310 1,773,819 2,339,135 1.18% 0.0052,720 ING GROEP 33.590 1,770,864.8 2,335,239 1.18% 0.00

309,490 KPN NV 10.770 3,333,207.3 4,395,500 2.22% 0.0042,414 PHILIPS ELECTRONICS 28.570 1,211,767.98 1,597,958 0.81% 0.00

EURO584,584 11,156,317.04 14,711,835 7.44%


12/31/06

Portfolio Curr: US


NORWEGIAN STOCKS

74,023 STATOIL ASA 165.250 12,232,300.75 1,964,586 0.99% 0.00 NORWEGIAN STOCKS

74,023 12,232,300.75 1,964,586 0.99%

EURO

223,761 EDP - ENERGIAS DE PORTUGAL 3.840 859,242.24 1,133,083 0.57% 0.00 EURO

223,761 859,242.24 1,133,083 0.57%

SINGAPORE STOCKS

198,000 DBS GROUP HOLDINGS 22.600 4,474,800 2,916,509 1.48% 0.00 SINGAPORE STOCKS

198,000 4,474,800 2,916,509 1.48%

EURO

143,294 REPSOL ORD 26.200 3,754,302.8 4,950,799 2.5 % 0.0091,268 TELEFONICA S.A. 16.120 1,471,240.16 1,940,124 0.98% 0.00

EURO234,562 5,225,542.96 6,890,924 3.49%


12/31/06

Portfolio Curr: US


- cont. SWEDISH KRONER N/A 1,194.35 175 0 % N/A

1,194.35 175 0 %

SWEDISH STOCKS

482,702 ERICSSON B 27.650 13,346,710.3 1,950,418 0.99% 0.00199,185 NORDEA BANK AB ( NORDIC BALTIC) 105.500 21,014,017.5 3,070,878 1.55% 0.00

SWEDISH STOCKS681,887 34,360,727.8 5,021,296 2.54%

SWISS STOCKS

37,657 CS GROUP REG 85.250 3,210,259.25 2,629,851 1.33% 0.004,757 NESTLE REGISTERED 433.000 2,059,781 1,687,377 0.85% 0.00

53,413 NOVARTIS REG 70.250 3,752,263.25 3,073,862 1.56% 0.0013,180 ROCHE HOLDING GENUSS 218.500 2,879,830 2,359,163 1.19% 0.009,712 SWISS RE-REG 103.600 1,006,163.2 824,251 0.42% 0.004,261 ZURICH FINANCIAL SERVICES 328.000 1,397,608 1,144,923 0.58% 0.00

SWISS STOCKS122,980 14,305,904.7 11,719,427 5.93%

THAILAND BAHT N/A 2,671.53 74 0 % N/A 2,671.53 74 0 %


12/31/06

Portfolio Curr: US


UK BRITISH POUNDS N/A 54,824 107,296 0.05% N/A 54,824 107,296 0.05%

EURO

104,746 ROYAL DUTCH SHELL A SHARES 26.720 2,798,813.12 3,690,795 1.87% 0.00 EURO

104,746 2,798,813.12 3,690,795 1.87%

UK SECURITIES

213,851 BAE SYSTEMS FMRLY BRITISH AEROSPACE 4.258 910,470.63 1,781,882 0.9 % 0.0043,504 BERKELEY GROUP HOLDINGS 17.110 744,353.44 1,456,774 0.74% 0.00

216,824 CABLE AND WIRELESS 1.578 342,039.86 669,406 0.34% 0.00179,194 CADBURY SCHWEPPES 5.465 979,295.21 1,916,579 0.97% 0.0017,937 CARNIVAL PLC ( FMRLY P&O PRINCESS) 25.880 464,209.56 908,505 0.46% 0.00

162,531 GLAXOSMITHKLINE PLC 13.440 2,184,416.64 4,275,122 2.16% 0.00234,067 ICI 4.520 1,057,982.84 2,070,578 1.05% 0.0074,521 KESA ELECTRICALS PLC 3.393 252,812.49 494,779 0.25% 0.00

327,119 KINGFISHER 2.385 780,178.82 1,526,888 0.77% 0.0099,692 LAND SECURITIES PLC 23.230 2,315,845.16 4,532,341 2.29% 0.00

194,032 LLOYDS TSB GROUP PLC 5.715 1,108,892.88 2,170,214 1.1 % 0.00287,183 MORRISON SUPERMARKETS 2.545 730,880.74 1,430,407 0.72% 0.00172,726 PRUDENTIAL CORP 6.995 1,208,218.37 2,364,604 1.2 % 0.00

7,292,290 ROLLS ROYCE B SHARES 0.001 7,292.29 14,272 0.01% 0.00196,906 ROLLS-ROYCE PLC 4.478 881,646.62 1,725,471 0.87% 0.0056,386 ROYAL DUTCH SHELL B SHARES 17.900 1,009,309.4 1,975,319 1 % 0.00

289,562 SAINSBURY ORD 4.093 1,185,032.49 2,319,227 1.17% 0.0079,832 SMITHS GROUP 9.915 791,534.28 1,549,112 0.78% 0.0066,796 WHITBREAD HOLDINGS PLC 16.750 1,118,833 2,189,668 1.11% 0.00


12/31/06

Portfolio Curr: US


UK SECURITIES - cont.820,722 WOOLWORTHS GROUP PLC 0.343 281,097.29 550,135 0.28% 0.00

UK SECURITIES11,025,675 18,354,341.99 35,921,283 18.17%

US DOLLARS N/A 1,323,831.46 1,323,831 0.67% N/A 1,323,831.46 1,323,831 0.67%

PORTFOLIO: FRESNO COUNTY16,298,214 ,442,093,580.78 197,661,245 100 %

oechsle international advisors, llc · 2004-04-07 · oechsle international advisors, llc 2 james...

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