ANCHOR (OFF-CAMERA) ENGLISH SAYING:

So it's ironic that European stocks actually did pretty well when all was said and done last year. Are there opportunities still within that area?

KATRINA DUDLEY, PORTFOLIO MANAGER, RANKLIN TEMPLETON, (ENGLISH) SAYING:

We see a lot of opportunities. I think what happened last year as you went into 2012 with a lot of people bearish on the Euro, thinking that the region was going to break up. And what we've seen is the performance of last year was really due to a lack of sellers. What we see in 2013 is very optimistic and we actually see this as a stock picker's market.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

So are you looking then more at individual stocks than sectors or countries?

KATRINA DUDLEY, CO-PORTFOLIO MANAGER, RANKLIN TEMPLETON, (ENGLISH) SAYING:

Yes. At Mutual Series, we're stock pickers and that's what we do and we think that we're going to really find a lot of opportunities in this environment. Our top position is AP Moller-Maersk which is a Danish company and it trades at a discount to what we see as a sum of the parts and we see significant opportunity there.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

What else do you like?

KATRINA DUDLEY, CO-PORTFOLIO MANAGER, RANKLIN TEMPLETON, (ENGLISH) SAYING:

We like Vinci which is a French construction company. A lot of people have not liked the French market and have ignored it completely and we see a company that's got a great dividend, a good policy towards its shareholders, and it's got an operation that is fairly protected from French macroeconomic risk.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

How are you feeling about the European banks, because you did have a significant holding in the European banks when we talked last?

KATRINA DUDLEY, CO-PORTFOLIO MANAGER, RANKLIN TEMPLETON, (ENGLISH) SAYING:

We do. We continue to have a significant weighting there, but I would say that many more of those positions are getting closer to fair value. The banks have had a significant run particularly over the last three months.

ANCHOR (OFF-CAMERA) ENGLISH SAYING:

What's the biggest risk to a stock picker's market this year in Europe?

KATRINA DUDLEY, CO-PORTFOLIO MANAGER, RANKLIN TEMPLETON, (ENGLISH) SAYING:

It's that we go back to this thematic investing where everyone just invests on a theme basis. When you're picking stocks and you're looking at things on a stock-by-stock basis and there's a massive negative theme, you just can't avoid that tidal wave.