4. To what extent have you (or will you) invest in foreign equities?

We have rarely exceeded 10% in foreign equities, but would be willing to own them to the extent we could not find domestic companies that meet our criteria. We need to see higher potential returns from foreign equities than we can find in domestic equities to offset the additional risks of currency exchange rates, different accounting rules, different political and economic climates, etc. Currently, we are finding enough domestic companies that should meet or exceed our required returns that we are not heavily invested in foreign equities.