We selected our foreign equities using some of the criteria of John Templeton, who established the Templeton mutual funds and was one of the first U.S. investors to look abroad.

To uncover attractive international stocks, we followed Templeton's bargain-hunting strategies. We explored both developing and developed markets around the globe, searching for stocks selling below their book values or at low P/E levels, and sought out firms with accelerating earnings growth or expanding margins.

Reflecting the strong performance of foreign markets, our international stocks from last year climbed a hefty 33%.

Company (Ticker symbol)	Current price	52-wk high	52-wk low	Market Cap (mill)	P/E ratio	Div Yield	Earnings growth
Diageo (DEO)	$69.42	$69.73	$40.93	$43,440.45	23.4	2.9%	11%
Novartis (NVS)	$55.57	$56.42	$33.34	$146,572.45	17.5	1.7%	12%
Petroleo Brasileiro (PBR)	$50.73	$53.46	$15.80	$128,685.45	11.2	0.6%	15%
Sanofi-Aventis (SNY)	$39.40	$40.17	$24.59	$103,714.01	10.9	1.7%	7%
Total (TOT)	$63.64	$64.66	$42.88	$149,363.59	10.7	2.8%	8%
UBS (UBS)	$15.98	$19.32	$7.04	$56,858.04	13.3	2.0%	14%
Unilever (UL)	$30.64	$31.11	$16.95	$39,325.18	19.7	2.1%	12%
Vodafone Group (VOD)	$23.44	$24.04	$15.46	$123,296.25	14.1	4.2%	6%
Current price, 52-week high/low and market cap as of Dec 04 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline.