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By Karin Anderson | 06-08-2009 09:34 AM

Putting Cash to Work Overseas

AIM foreign fund manager Clas Olsson discusses global opportunities in small caps and the funds' caution about financials.

Karin Anderson: Hi, I'm Karin Anderson, a mutual fund analyst here at Morningstar. I'm here with Clas Olsson, international equity manager at AIM. He runs funds including international growth, European growth, and global growth.

Hi, Clas, thanks for being here.

Clas Olsson: Thank you.

Anderson: Maybe you can talk to us a little bit today about the cash stakes in the funds that you run. Last year during the market downturn, you weren't finding so many opportunities, kind of found more reasons to sell stocks than buy stocks. Maybe you can just give us a picture for where the funds sit now. Right now, for example, the foreign large-growth fund has about 13% in cash, whereas the Europe fund as about 6%.

With that, maybe you can just talk about why those stakes got to be as large as they did, and also where you're finding opportunities now.

Olsson: Sure. The reason why we started to see the cash balances go up in most of our funds was quite simply going back to late '06 into '07, that we thought a lot of valuations started getting full. We've had a couple of years of very strong market returns.

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