Our primary goal is to provide attractive rates of return to our shareholders, but our portfolio managers carefully weigh the potential reward against the potential risk of each investment. Simply put, our managers are often willing to give up some potential gains in an investment when the risks appear to outweigh the rewards.
Our approach to valuation is not rigid. Valuations are measured in relation to general market and economic conditions and to the specific areas in which each fund invests.
Similarly, the prevailing valuations of recent years, while high by historical standards, are not so outlandish when judged in the context of subdued inflation, low interest rates, and the sustainability of growth in corporate earnings.