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Four money managers examine portfolio management strategies in the latest issue of The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info556.htm

TWST: Could you give us a brief overview of AIC and your responsibilities there?

Mr. Murdoch: AIC is a privately owned retail mutual fund company in Canada. We are the 10th largest fund company in Canada. I am an Executive Vice President and Portfolio Manager at the institution. I am responsible for our international equities. In particular, I am the lead manager on our World Equity Fund, our World Advantage Fund and our Global Advantage Fund. I have been with the company since 1994, when it had about US$100 million in assets. We have about US$10 billion in assets under management now.

TWST: The reasons for investing overseas, of course, include the potential for higher returns and portfolio diversification. Can you give us the positive side of international investing at this time?

Mr. Murdoch: You just gave the two long-term perspectives. And we tend to be long-term investors. We think our goal as investors is to create wealth over the long term and to really find what we think are excellent businesses in great, long-term growth industries. While many of these are domiciled in Canada or the United States, there are some great businesses in fantastic industries that are outside the United States. So when we talk about international investing, it is not to the exclusion of investing in North America; it is really as an addition to investing in North America and looking for these great businesses to invest in.

TWST: Is there volatility in foreign markets too?

Mr. Murdoch: Oh yes. We don’t hear as much about it here and it may not be that it all happens in a day. You may not see a stock get beaten up by 25%-30%, although in certain sectors you will, but it can happen instead over a period of two, three weeks. You have still a lot of volatility in foreign markets as well. The largest holding in a couple of our international funds is AMVESCAP (NYSE:AVZ). AMVESCAP’s share price has dropped from a high of 17 pounds 40 down into the 7 pounds 50 range, and yet the underlying business is doing everything we would like it to do. It has slowed down some last year after a very strong 2000. But if you had asked me in 1998 where AMVESCAP would be today, it is ahead of where we would have expected it to be. Yet obviously the share price has gone down by more than that.

TWST: How is your strategy impacted by companies alerting investors about earnings shortfalls?

Mr. Murdoch: First of all, we try to anticipate where our companies are going by knowing the businesses and knowing the industry, so that we are not be as surprised as the general marketplace about earnings shortfalls. We know our businesses well enough to be able to quickly make an assessment of the earnings. Has there been a fundamental change in the long-term prospects or opportunities for the business? If not then the volatility can give us a great buying opportunity. So we are using the volatility of the stock market to our advantage.

TWST: Is there anything that you would like to say to investors about why they should put at least a portion of their portfolio into international at this time?

Mr. Murdoch: I think that any investor over the long term should have a good portion of their invested assets in international equities. I do not think that is something that should change from quarter to quarter or from year to year. It is part of having a good, diversified financial portfolio to meet your long-term goals.

This special Investing Strategies Report includes:

1) James C. Hansberger, Managing Director at Hansberger Group at Salomon Smith Barney, examines portfolio management strategies in this timely and deeply informative 5,400-word interview from The Wall Street Transcript.

2) Outlook for International Investing - Neil Murdoch, Executive Vice President at AIC Limited, examines portfolio management strategies in this timely and deeply informative 6,400-word interview from The Wall Street Transcript.

3)John P. Thayer, Chief Investment Officer for Associated Trust Co., examines portfolio management strategies in this timely and deeply informative 3,600-word interview from The Wall Street Transcript.

4) Laurence E. Ach, Chief Investment Officer at Trainer Wortha, examines portfolio management strategies in this timely and deeply informative 3,700-word interview from The Wall Street Transcript.