Brandes Core Plus Fixed Income Fund

The Brandes Core Plus Fixed Income Fund seeks to maximize long-term total return, consisting of both current income and capital appreciation.

 

  • Ticker Symbol BCPIX
  • Cusip 105262869
  • Fund Inception Date December 28, 2007
  • Dividend Frequency Monthly
  • Number of Holdings 66
  • Total Net Assets $61.8 million (As of Jun 30, 2022)
  • Share Price (USD) 8.15 (As of Oct 04, 2022)

Overview

Why Brandes Core Plus Fixed Income Fund?

  • Flexibility: The strategy is designed for income-oriented investors who are also seeking value potential from an actively managed bond portfolio.
  • Experience: Brandes has been navigating the fixed-income investment landscape for over 20 years.
  • Focus: The strategy primarily invests in U.S. Treasury and high quality agency and corporate debt. The portfolio may invest up to 25% of its assets (at time of purchase) in each of non-U.S. dollar-denominated and non-investment grade debt instruments. A minimum of 75% of the investments must be rated investment grade by a nationally recognized rating agency at time of purchase.

    Performance

    Average Annual Total Returns (%)

    Data displayed as of Aug 31, 2022

    Swipe to View Month End
    Source: Brandes, Bloomberg Indices. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800.395.3807. It is not possible to invest directly in an index.
    Class I shares were first offered on December 28, 2007. Class A shares were first offered on January 31, 2013. Performance shown prior to the inception of Class A shares on January 31, 2013, reflects the performance of Class I shares, restated to reflect Class A sales loads and expenses.

    Expenses

    Expenses Class I
    Total Annual Fund Operating Expenses
    Fees that you pay each year as a % of the value of your investment.
    0.63%
    Less: Fee Waiver and/or Expense Reimbursement -0.33%
    Net Expense Ratio 0.30%
    Swipe to View Expenses

    Morningstar Rating

    BCPIX as of Jun 30, 2022

    Total # of Funds 566 Intermediate-Term Bond
    The Overall Morningstar Rating is derived from a weighted average of the fund's three-, five- and ten-year (if applicable). Morningstar Ratings metrics which are based on risk-adjusted return performance.

    Portfolio

    Data displayed as of Jun 30, 2022

    Characteristics

    Characteristic Brandes Core Plus Fixed Income Fund Bloomberg U.S. Aggregate Bond Index
    Average Maturity (yrs)
    This figure is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures.
    8.5 8.9
    Average Yield to Maturity %
    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate.
    4.4 3.7
    Current Yield %
    Annualized income from the investment (dividends, interest, etc.) divided by the current market price of the investment.
    3.6 2.7
    Average Coupon %
    The annual rate, as a percentage of par that the issuer has agreed to pay the bondholder.
    3.4 2.5
    Average Duration (yrs)
    Duration is a time measure of a bond's interest-rate sensitivity, based on the weighted average of the time periods over which a bond's cash flows accrue to the bondholder.
    5.2 6.4
    Number of Holdings 66 --
    SEC 30 Day Yield (subsidized) %
    As of 8/31/2022 | SEC 30-Day Yield This calculation is based on a 30-day period ending on the last day of the month shown. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. A subsidized yield takes into consideration the expenses paid by the advisor.
    3.77 --
    SEC 30 Day Yield (unsubsidized) %
    As of 8/31/2022 | SEC 30-Day Yield This calculation is based on a 30-day period ending on the last day of the month shown. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. A subsidized yield takes into consideration the expenses paid by the advisor.
    3.42 --
    Swipe to View Characteristics

    Top 10 Corporate Holdings (%)

    Issuer % Coupon Maturity
    Prime Security Services 2.3 5.750 Apr 15, 2026
    USB Capital IX 2.1 3.500 Apr 15, 2049
    JPMorgan Chase & Co 2.0 4.709 Apr 30, 2049
    VMware Inc 1.9 3.900 May 15, 2025
    Ford Motor Credit Co LLC 1.9 2.700 Nov 01, 2022
    Netflix Inc 1.6 4.375 Nov 15, 2026
    PulteGroup Inc 1.6 5.500 Mar 01, 2026
    Tenet Healthcare Corp 1.5 4.875 Jan 01, 2026
    Range Resources Corp 1.5 4.875 May 15, 2025
    Coty Inc 1.2 5.000 Apr 15, 2026
    % of Fund 17.6    
    Portfolio holdings are subject to change at any time at the discretion of the investment manager.
    Swipe to View Top 10 Holdings

    Maturity Breakdown Exposure (%)

    Credit Quality Exposure (%)

    Swipe to View Credit Quality Exposure (%)

    Distributions

    Monthly Distributions
    Type Record Date
    Date on which a shareholder must officially own shares in order to be entitled to a dividend. After the date of record, the stock is said to be ex-dividend.
    Ex-Date
    Date on which a fund begins trading without the benefit of the dividend. Typically, a fund's price moves up by the dollar amount of the dividend as the ex-dividend date approaches, then falls by the amount of the dividend after that date.
    Payable Date
    Date on which a declared fund dividend or a bond interest payment is scheduled to be paid.
    Amount
    Income Dividend
    Payout to shareholders of interest, dividends, or other income received by the Fund, net of operating expenses. By law, all such income must be distributed to shareholders, who may choose to take the money in cash or reinvest it in more shares of the Fund.
    Daily Daily Sep 30, 2022 $0.0218
    Short-Term Capital Gain
    Profit or loss from the sale of a capital asset that was held for one year or less.
    Dec 1, 2016 Dec 2, 2016 Dec 2, 2016 $0.0244
    Long-Term Capital Gain
    Gain on the sale of a security where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax.
    Dec 3, 2015 Dec 4, 2015 Dec 4, 2015 $0.0078
    Swipe to View Monthly Distributions

    Fees/Expenses

    Fees/Expenses Class I
    Net Expense Ratio 0.30%
    Annual Management 0.35%
    Other Expenses 0.28%
    Service 12b-1 None
    Shareholder Servicing None
    Fees paid directly from your investment.
    The Core Plus Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) measured at the time of purchase in U.S. dollar-denominated debt securities. These include, but are not limited to, debt securities issued by U.S. and foreign companies, debt obligations issued or guaranteed by the U.S. Government and foreign governments and their agencies and instrumentalities, and U.S. and foreign mortgage-backed securities, collateralized mortgage obligations and asset-backed debt securities. The Core Plus Fund may invest up to 25% of its total fixed income assets, measured at the time of purchase, in non-U.S. dollar securities and may engage in currency hedging. Brandes Investment Partners, L.P., the Fund’s investment advisor (the “Advisor”), uses the principles of value investing to analyze and select debt securities for the Core Plus Fund’s investment portfolio. As part of this process, the Advisor reviews such measures as the issuer’s free cash flow, debt-to-equity ratio, earnings before interest, taxes, depreciation and amortization (“EBITDA”)-to-interest ratio, debt-to-EBITDA ratio or other measures of credit worthiness in evaluating the securities of a particular issuer.

    The Core Plus Fund may invest in debt instruments of any maturity or with no maturity and it may invest in both investment-grade securities and non-investment grade securities (also known as “high-yield bonds” or “junk bonds”). (Up to 25% of the Fund’s total debt securities may be in junk bonds.) The Core Plus Fund invests in debt securities that can be purchased at prices or yield premiums over U.S. Treasury securities (or other relatively risk free securities) which the Advisor believes to be attractive based on the Advisor’s assessment of each security’s intrinsic value. The Advisor will typically sell a security from the Fund’s portfolio when the Advisor’s research process identifies a significantly better investment opportunity. The Advisor may also sell certain portfolio securities from time to time in order to adjust the average maturity, duration or yield of the Fund’s portfolio or to meet requests for redemption of Fund shares.
    † The Advisor has contractually agreed to limit the Management Fee of each share class of the Core Plus Fund to 0.30% pursuant to an Investment Advisory Fee Waiver Agreement in effect until January 28, 2023.

    The Advisor has contractually agreed to limit the Core Plus Fund’s Class A and Class I annual operating expenses (excluding acquired fund fees and expenses, interest expense in connection with investment activities, taxes and extraordinary expenses), including repayment of previous waivers, to the following percentages of the Fund’s average daily net assets attributable to the specific classes through January 28, 2023: 0.50% and 0.30%, respectively (the “Expense Caps”). The Expense Caps may be terminated at any time by the Board of Trustees upon 60 days’ notice to the Advisor. The Advisor is permitted, with Board approval, to be reimbursed for fee reductions and/or expense payments made in the prior three years with respect to any Class of the Fund. The Advisor may request reimbursement if the aggregate amount paid by the Fund toward operating expenses for the Class for such period (taking into account any reimbursement) does not exceed the lesser of the Expense Cap in effect at the time of waiver or at the time of reimbursement.
    Because the values of the Fund's investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. As with most fixed income funds, the income on and value of your shares in the Fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the Fund owns usually decline. When interest rates fall, the prices of these securities usually increase. Generally, the longer the Fund's average portfolio maturity and the lower the average quality of its portfolio, the greater the price fluctuation. The price of any security owned by the Fund may also fall in response to events affecting the issuer of the security, such as its ability to continue to make principal and interest payments or its credit rating. Below investment grade debt securities are speculative and involve a greater risk of default and price change due to changes in the issuer's creditworthiness. The market prices of these debt securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in periods of general economic difficulty. The Fund may hold illiquid securities which may reduce the return of the Fund because it may be unable to sell such illiquid securities at an advantageous time or price. Illiquid securities may also be difficult to value. The Fund is actively managed, and may frequently buy and sell securities. Frequent trading increases a Fund’s portfolio turnover rate and may increase transaction costs, such as brokerage commissions and taxes, which in turn could detract from the Fund’s performance.
    Investing in foreign securities poses additional risks. The performance of foreign securities can be adversely affected by the different political, regulatory and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies may experience substantial fluctuations or steady devaluation relative to the U.S. dollar. Mortgage-related securities are subject to certain additional risks. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, when holding mortgage-related securities in a period of rising interest rates, a Fund may exhibit additional volatility. In addition, mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of a Fund because it will have to reinvest that money at the lower prevailing interest rates.
    The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. This index is a total return index which reflects the price changes and interest of each bond in the index. 
    It is not possible to invest directly in an index.
    The Fund's Composition, Holdings and Sector Weightings are subject to change and should not be considered a recommendation to buy or sell any security. 
    © 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 
    The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings for other share classes may differ. For current performance, please view the Performance page of the web site or call 800.395.3807.