International Stock Fund (ISF)
Type of Fund: International (non U.S.) stock fund.
Objective: To attain long-term capital appreciation from a diversified portfolio of stocks of companies whose equity securities are traded on a regulated foreign stock exchange.
Who Should Invest: Investors who seek long-term investment growth through exposure to companies based in foreign countries and who are willing to accept the risk of possible wide fluctuations in the unit price of the fund.
Investments: The fund's investments consist primarily of stocks of companies domiciled in developed and developing (emerging) foreign countries. The fund will hold stock index futures as necessary to maintain exposure to foreign stock markets. Additionally, the fund may invest in publicly traded internationally-based Real Estate Investment Trusts (REITs), and the fund may also invest approximately 10% of its assets in alternative investments such as private real estate partnerships and private equity. Finally, the fund may also invest in stock index futures and foreign currency forward contracts.
Management: More than eight different investment management firms selected by the General Board, including Capital Guardian Trust Company.
Strategy: The International Stock Fund seeks a favorable long-term rate of return from a broadly diversified portfolio of foreign stocks domiciled in developed and emerging market countries.
The fund relies on the professional judgment of its investment managers to decide how to allocate fund assets among different countries and/or regions of the world, and in which stocks the fund should invest. The investment managers seek to invest in attractively valued companies that represent above-average long-term investment opportunities. The investment managers accomplish this objective primarily through fundamental analysis, which may include meeting with a company's management, competitors, suppliers and customers in order to evaluate a company's future prospects.
Performance Benchmark: Morgan Stanley Capital International All Country World (MSCI ACWI) ex USA IMI Index. This index is designed to measure performance of stocks domiciled in developed and emerging markets, excluding the U.S.
Performance Objective: To produce a return that, on average, exceeds that of the performance benchmark by 2% on average per year over a market cycle (three to five years).
For more detailed information regarding the International Stock Fund, please see the Investment Funds Description.
Fund Performance:
Fund Market Value (as of 9/30/08): $2,062,917,683.
Annual Performance at Year End, Net of Fees
| |
International
Stock Fund |
Blended
Index |
| 2007 |
15.9% |
16.7% |
| 2006 |
25.4% |
26.7% |
| 2005 |
17.8% |
13.5% |
| 2004 |
13.3% |
20.2% |
| 2003 |
35.4% |
38.6% |
| 2002 |
-16.4% |
-15.9% |
| 2001 |
-18.0% |
-21.4% |
| 2000 |
-21.2% |
-13.5% |
| 1999 |
74.4% |
27.0% |
| 1998 |
23.8% |
20.0% |
| 1997 |
14.8% |
1.8% |
| 1996 |
- |
6.0% |
| 1995 |
- |
11.2% |
| 1994 |
- |
7.8% |
| 1993 |
- |
32.6% |
Compounded Annual Performance, Net of Fees (periods ending 9/30/08):
| |
International
Stock Fund |
Blended
Index |
| YTD |
-29.7% |
-30.3% |
| 1 Year |
-30.8% |
-30.8% |
| 2 Yrs. |
-4.4% |
-4.9% |
| 3 Yrs. |
3.1% |
2.3% |
| 5 Yrs. |
9.6% |
10.5% |
| 7 Yrs. |
8.3% |
8.3% |
| 10 Yrs. |
7.4% |
5.4% |
| Inception |
6.7% |
5.0% |
All returns for the International Stock Fund are net of all fees and expenses which include all investment management fees, operating expenses and bank custodial fees. The fund inception was January 1, 1998.
Fund Holdings
| Top-Ten Stock Holdings |
Fund % |
| Nestle |
1.6% |
| Novartis |
1.0% |
| Tesco |
0.9% |
| SMC Corp |
0.8% |
| Roche |
0.7% |
| Total |
0.7% |
| L'Oreal |
0.7% |
| American Movil |
0.7% |
| SAP |
0.6% |
| HSBC |
0.6% |
Fund Holdings (As of 9/30/08): Download/view fund holdings in PDF format.
Expense Ratio: The General Board will charge participants in the International Stock Fund annual expenses equal to approximately 0.76% of total fund assets. This cost includes investment management fees, operating expenses, and bank custodial fees.
In 2004, The General Board began imposing a seven day holding period between inter fund transfer purchases and sales in the International Stock Fund. This action was taken to discourage short-term market timing trades within the fund.
Lending of Portfolio Securities: The fund seeks to earn additional income by making loans of its portfolio securities to brokers, dealers and other financial institutions. The loans will be secured at all times by cash and liquid high grade debt obligations. As with any extension of credit, there are risks of delay in recovery and in some cases even loss of rights in the collateral should the borrower fail financially. Additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.
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