Fall 2007 Features Gray Matters 13 Research Briefs 15 Investors Should Adjust Their Home Bias 17 Few Mutual Funds Exhibit Serial Correlation 20 Valuating ETFs, the Equity Analyst’s Way Spotlight: International Think Global, Buy Global 28 See the World (Differently) Investors should go abroad looking for good businesses. Dispatches: Brazil and Canada 33 The Return of the Global Flexible Investor Mutual funds relax geographic reins on managers. Advisors should follow suit. Dispatches: China, India, Russia 40 Map of International Value 42 Sound as a Loonie? A little currency diversification goes a long way to curing the greenback blues. Dispatch: UK Morningstar Conversation 49 In Their Own Worlds Jean-Marie Eveillard and Marty Whitman go where they please in search of value. Undiscovered Managers 56 A Good Read Thinking beyond investing puts Dennis Lynch’s team in the right frame of mind to uncover his brand of growth stocks. 60 Putting Their Heads Together Manning & Napier was built on a simple premise: Several minds are better than one. 3