A less efficient market should favor active stock selection.

"But we use indexes locally because managers cannot add value with stock selection."

And the added cost of the employees is not worth the added return from the stock selections.

"We try to neutralize other sorts of risk and focus on stock selection," he said.

"Basically, we want the stock selection to drive the country allocation," he said.

And stock selections come directly from the people who are closest to the companies.

By the end of 1995, the company's most popular equity funds were all over the map in strategies and stock selections.

I might want to change some of these stock selections.

A primary focus of stock selection is the ability of a company to pay and grow dividends.

"It's a question of stock selection and weighting," he said.