Brandes - U.S. Advisors - Global Balanced Strategy

Investment Strategies

Consider More Upside with Potentially Less Downside

  • Broad Opportunity Set — Diversification across regions, countries and asset classes can potentially enhance investment return.
  • Potential for Reduced Volatility — The blend of equities and fixed income in one strategy offers attractive return potential with potentially less volatility than an all-equity strategy.
  • Built-In Asset Allocation — Because it invests across different asset classes, the strategy can offer a one-stop diversification within many types of market environments.

Capture the Potential for Enhanced Return with Potentially Less Risk

  • Pursue Gains and Manage Risk — Balancing stocks and bonds in one strategy allows Brandes to pursue returns potential while managing overall volatility.
  • Potential Income Stream — The Brandes Global Balanced Strategy seeks to offer regular income, regardless of the direction of stock prices.
  • Global Scope — The strategy goes anywhere in the world to find securities that meet Brandes’ stringent value criteria.

Partner with a Pioneer in Global Value Investing

  • Experienced Professionals — The Investment Team is composed of experienced professionals who have navigated many market cycles.
  • Trailblazer in global equity markets — Brandes Investment Partners has a long history of exploring markets worldwide in search of fundamentally solid companies selling at deep discounts to estimates of their true worth.
  • Disciplined and easy to understand investment process — The firm consistently applies a research-driven process centered on purchasing potentially undervalued equities and bonds with the goal of capturing future price appreciation.
  • Flexible approach — The strategy is unconstrained by any market index and can invest anywhere value opportunities are most compelling, including those in emerging markets.
  • Independent point of view — Brandes Investment Partners is a 100% employee owned firm and its strategies are unhindered by sales quotas or any outside influence that may impede the firm’s pursuit of investment management excellence.

Past performance is not a guarantee of future results.

No investment strategy can assure a profit or protect against loss. Diversification does not assure a profit or protect against a loss in a declining market.

Unlike bonds issued or guaranteed by the U.S. government or its agencies, stocks and other bonds are not backed by the full faith and credit of the United States. Stock and bond prices will experience market fluctuations. Please note that the value of government securities and bonds in general have an inverse relationship to interest rates. Bonds carry the risk of default, or the risk that an issuer will be unable to make income or principal payment. There is no assurance that private guarantors or insurers will meet their obligations. The credit quality of the investments in the portfolio is no guarantee of the safety or stability of the portfolio. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.

International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes, differences in financial reporting standards and less stringent regulation of securities markets which may result in greater share price volatility.

This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

The Brandes Global Balanced Strategy seeks long-term capital appreciation and current income by investing primarily in a combination of undervalued equity securities and fixed income securities of both U.S. and non-U.S. issuers. It primarily invests in equity securities of issuers whose equity market capitalization exceeds $1 billion, short- to intermediate-maturity bonds, and cash equivalents. The strategy will typically have between 40% and 75% of its total assets invested in equity securities (determined at the time of purchase), depending upon Brandes’ ability to find individual companies meeting its investment criteria.

The World Balanced Index is composed of 70% MSCI World Index with net dividends and 30% U.S. Broad Investment Grade Corporate Bond Index. The MSCI World Index captures large and mid cap representation of developed markets. The U.S. Broad Investment Grade Corporate Bond Index tracks the performance of U.S. dollar-denominated bonds issued in the U.S. investment-grade bond market. Prior to April 1, 2015, the World Balanced index was composed of a 50 percent allocation to each benchmark in the blend. Brandes Investment Partners believes the rebalance of the benchmark’s allocation better represents the Global Balanced strategy's asset allocation to equities and fixed income.

GIPS® Compliant Presentation:

Annualized Performance (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Global Balanced
0.14%
6.28%
3.15%
6.35%
4.35%
4.37%
5.21%
Primary Benchmark (a)
7.36%
9.83%
6.88%
8.08%
7.02%
6.63%
5.94%
Relative Performance
-7.22%
-3.55%
-3.73%
-1.73%
-2.67%
-2.26%
-0.73%

Annualized Performance (Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Global Balanced
0.79%
6.97%
3.97%
7.33%
5.44%
5.45%
6.27%
Primary Benchmark (a)
7.36%
9.83%
6.88%
8.08%
7.02%
6.63%
5.94%
Relative Performance
-6.57%
-2.86%
-2.91%
-0.75%
-1.58%
-1.18%
0.33%

Annual Periods (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
2017
2016
2015
2014
2013
2012
2011
Global Balanced
10.89%
8.25%
-5.06%
-0.75%
22.25%
7.84%
-4.50%
Primary Benchmark (a)
16.46%
6.18%
-0.37%
5.50%
11.55%
10.13%
1.35%
 
2010
2009
2008
2007
2006
2005
2004
Global Balanced
5.70%
17.68%
-32.92%
0.69%
21.24%
3.32%
12.81%
Primary Benchmark (a)
9.65%
17.56%
-19.52%
8.27%
12.02%
6.04%
9.58%
 
2003
2002
2001
2000
1999
1998
Global Balanced
33.18%
-13.25%
-0.68%
18.92%
10.02%
9.26%
Primary Benchmark (a)
18.07%
-5.44%
-4.48%
-1.32%
11.53%
16.92%

Quarterly Performance (Net And Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
 
1Q
2Q
3Q
4Q
YTD
2018
NET
GROSS
Primary Benchmark (a)
00 -0.46%
00 -0.29%
00 -1.34%
00 -1.24%
00 -1.08%
-00 1.16%
-00 0.56%
-00 0.72%
-00 3.48%
-0000000
-0000000
-0000000
00 -1.14%
00 -0.66%
-00 3.28%
2017
NET
GROSS
Primary Benchmark (a)
-00 3.89%
-00 4.06%
-00 4.70%
-00 1.34%
-00 1.50%
-00 3.26%
-00 3.99%
-00 4.16%
-00 3.63%
-00 1.29%
-00 1.46%
-00 3.95%
-0 10.89%
-0 11.62%
-0 16.46%
2016
NET
GROSS
Primary Benchmark (a)
-00 1.22%
-00 1.39%
-00 0.75%
00 -0.28%
00 -0.11%
-00 1.39%
-00 3.59%
-00 3.76%
-00 3.55%
-00 3.51%
-00 3.68%
-00 0.39%
-00 8.25%
-00 8.95%
-00 6.18%
2015
NET
GROSS
Primary Benchmark (a)
-00 1.10%
-00 1.27%
-00 2.05%
-00 0.66%
-00 0.83%
00 -0.27%
00 -7.79%
00 -7.64%
00 -5.61%
-00 1.17%
-00 1.33%
-00 3.72%
00 -5.06%
00 -4.44%
00 -0.37%
2014
NET
GROSS
Primary Benchmark (a)
-00 1.86%
-00 2.17%
-00 1.60%
-00 3.32%
-00 3.63%
-00 3.44%
00 -4.52%
00 -4.23%
00 -1.00%
00 -1.23%
00 -0.93%
-00 1.39%
00 -0.75%
-00 0.46%
-00 5.50%
2013
NET
GROSS
Primary Benchmark (a)
-00 5.80%
-00 6.13%
-00 3.75%
-00 2.74%
-00 3.06%
00 -0.82%
-00 7.69%
-00 8.02%
-00 4.36%
-00 4.43%
-00 4.75%
-00 3.87%
-0 22.25%
-0 23.77%
-0 11.55%
2012
NET
GROSS
Primary Benchmark (a)
-00 7.26%
-00 7.59%
-00 5.81%
00 -4.59%
00 -4.29%
00 -1.41%
-00 3.06%
-00 3.38%
-00 4.14%
-00 2.25%
-00 2.57%
-00 1.36%
-00 7.84%
-00 9.18%
-0 10.13%
2011
NET
GROSS
Primary Benchmark (a)
-00 2.96%
-00 3.29%
-00 2.57%
-00 1.22%
-00 1.54%
-00 1.40%
0 -12.18%
0 -11.89%
00 -6.69%
-00 4.35%
-00 4.68%
-00 4.42%
00 -4.50%
00 -3.27%
-00 1.35%
2010
NET
GROSS
Primary Benchmark (a)
-00 1.54%
-00 1.87%
-00 2.48%
00 -9.27%
00 -8.95%
00 -4.65%
-00 9.56%
-00 9.91%
-00 8.12%
-00 4.72%
-00 5.05%
-00 3.78%
-00 5.70%
-00 7.10%
-00 9.65%
2009
NET
GROSS
Primary Benchmark (a)
0 -10.08%
00 -9.76%
00 -5.79%
-0 14.82%
-0 15.19%
-0 10.79%
-0 12.24%
-0 12.60%
-0 10.37%
-00 1.56%
-00 1.90%
-00 2.05%
-0 17.68%
-0 19.26%
-0 17.56%
2008
NET
GROSS
Primary Benchmark (a)
00 -9.94%
00 -9.64%
00 -3.27%
00 -4.45%
00 -4.13%
00 -1.29%
0 -10.82%
0 -10.51%
00 -7.82%
0 -12.59%
0 -12.27%
00 -8.55%
0 -32.92%
0 -31.99%
0 -19.52%
2007
NET
GROSS
Primary Benchmark (a)
-00 1.99%
-00 2.33%
-00 2.01%
-00 5.03%
-00 5.38%
-00 2.93%
00 -1.21%
00 -0.88%
-00 2.73%
00 -4.86%
00 -4.55%
-00 0.38%
-00 0.69%
-00 2.01%
-00 8.27%
2006
NET
GROSS
Primary Benchmark (a)
-00 6.11%
-00 6.29%
-00 2.94%
-00 0.24%
-00 0.48%
00 -0.28%
-00 7.27%
-00 7.49%
-00 4.16%
-00 6.25%
-00 6.47%
-00 4.77%
-0 21.24%
-0 22.23%
-0 12.02%
2005
NET
GROSS
Primary Benchmark (a)
00 -2.04%
00 -1.85%
00 -0.77%
-00 0.76%
-00 0.97%
-00 1.78%
-00 5.59%
-00 5.79%
-00 3.10%
00 -0.87%
00 -0.59%
-00 1.84%
-00 3.32%
-00 4.22%
-00 6.04%
2004
NET
GROSS
Primary Benchmark (a)
-00 3.15%
-00 3.35%
-00 2.66%
-00 1.37%
-00 1.59%
00 -0.79%
00 -1.58%
00 -1.38%
-00 1.13%
-00 9.61%
-00 9.84%
-00 6.39%
-0 12.81%
-0 13.73%
-00 9.58%
2003
NET
GROSS
Primary Benchmark (a)
00 -6.27%
00 -6.00%
00 -1.86%
-0 18.56%
-0 18.75%
-00 9.67%
-00 5.37%
-00 5.56%
-00 2.35%
-0 13.74%
-0 13.96%
-00 7.18%
-0 33.18%
-0 34.28%
-0 18.07%
2002
NET
GROSS
Primary Benchmark (a)
00 -0.32%
00 -0.09%
-00 0.28%
00 -5.12%
00 -4.88%
00 -2.91%
0 -14.56%
0 -14.36%
00 -7.28%
-00 7.35%
-00 7.50%
-00 4.75%
0 -13.25%
0 -12.51%
00 -5.44%
2001
NET
GROSS
Primary Benchmark (a)
00 -1.99%
00 -1.74%
00 -5.04%
-00 2.80%
-00 3.00%
-00 1.61%
00 -6.07%
00 -5.83%
00 -5.06%
-00 4.96%
-00 5.12%
-00 4.28%
00 -0.68%
-00 0.19%
00 -4.48%
2000
NET
GROSS
Primary Benchmark (a)
00 -4.21%
00 -3.96%
-00 1.68%
-00 6.09%
-00 6.38%
00 -0.93%
-00 5.44%
-00 5.71%
00 -1.00%
-0 10.99%
-0 11.21%
00 -1.05%
-0 18.92%
-0 20.11%
00 -1.32%
1999
NET
GROSS
Primary Benchmark (a)
-00 2.28%
-00 2.50%
-00 1.55%
-00 9.52%
-00 9.81%
-00 1.94%
00 -4.11%
00 -3.86%
00 -0.38%
-00 2.43%
-00 2.76%
-00 8.15%
-0 10.02%
-0 11.19%
-0 11.53%
1998
NET
GROSS
Primary Benchmark (a)
-00 9.84%
-0 10.08%
-00 7.86%
00 -1.82%
00 -1.57%
-00 2.18%
00 -7.89%
00 -7.72%
00 -3.96%
-00 9.99%
-0 10.36%
-0 10.45%
-00 9.26%
-0 10.35%
-0 16.92%

Composite Characteristics

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
#Accts
Assets
(mil)
Dispersion
% of non-fee
paying assets
Total Firm
Assets (mil)
2018
-000,0 44
-000,0 25
-000,
-000,
-0 22,449
2017
-000,0 47
-000,0 31
-00 0.77
-00 2
-0 25,578
2016
-000,0 57
-000,0 31
-00 0.79
-00 6
-0 22,971
2015
-000,0 69
-000,0 30
-00 0.69
-00 6
-0 20,666
2014
-000,0 81
-000,0 37
-00 0.73
-00 5
-0 20,722
2013
-000,0 78
-000,0 40
-00 0.87
-00 1
-0 21,464
2012
-000,0 92
-000,0 37
-00 0.89
-00 2
-0 22,171
2011
-000, 107
-000,0 40
-00 0.81
-00 2
-0 26,658
2010
-000, 143
-000,0 55
-00 0.73
-00 2
-0 38,659
2009
-000, 212
-000,0 70
-00 1.66
-00 2
-0 42,152
2008
-000, 278
-000,0 69
-00 0.98
-0 <1
-0 40,591
2007
-000, 316
-000, 143
-00 1.03
-0 <1
-0 83,242
2006
-000, 347
-000, 142
-00 1.13
-00 0
-0 85,974
2005
-000, 335
-000, 156
-00 1.63
-00 0
- 101,874
2004
-000, 326
-000, 129
-00 1.71
-00 0
-0 98,078
2003
-000, 340
-000, 117
-00 2.70
-00 0
-0 75,789
2002
-000, 365
-000, 129
-00 1.36
-00 0
-0 51,808
2001
-000, 366
-000, 118
-00 1.52
-00 0
-0 61,996
2000
-000, 321
-000, 139
-00 2.19
-00 0
-0 50,852
1999
-000, 378
-000, 127
-00 2.51
-00 0
-0 41,538
1998
-000, 344
-000, 101
-00 2.14
-00 0
-0 25,125
THROUGH September 30, 2018 | REPORTING CURRENCY: USD

The results for individual accounts and for different periods may vary.  Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.
As of September 30, 2013, Brandes Investment Partners includes the non-SMA Division of Brandes Investment Partners L.P., Brandes Investment Partners (Europe) Limited, Brandes Investment Partners (Asia) Pte Ltd and the Brandes Investment Partners & Co. assets sub-advised by Brandes Investment Partners, L.P. The firm was redefined to reflect the expansion of the organization. As of January 1, 2006, Brandes Investment Partners was divided into two separate divisions: the SMA Division of Brandes Investment Partners, which acts as a discretionary manager to SMA or “wrap fee” program clients, including those who may invest in an SMA product; and the non-SMA Division of Brandes Investment Partners (Brandes), which acts as a discretionary manager for all other types of clients which may include pooled investment vehicles, institutional accounts and high net worth clients outside of wrap fee programs. Although the divisions may share portfolio management and other personnel, each division serves a particular target market, may trade in a different manner and may offer investment advice which differs from the other depending upon the individualized needs of the clients served. The performance data presented does not contain any SMA Division accounts.
The Brandes Global Balanced Composite seeks to achieve long-term capital appreciation and current income by investing primarily in a combination of undervalued equity securities and fixed income securities of both U.S. and non-U.S. issuers. It primarily invests in equity securities whose equity market capitalization exceeds $1 billion, short to intermediate maturity bonds and cash equivalents. The composite will typically have between 40% and 75% of its total assets invested in equity securities, determined at time of purchase, depending on the firm’s ability to find individual companies meeting its investment criteria. Generally, no more than 30% of the composite total assets, measured at the time of purchase, may be invested in equity securities of companies located in emerging and frontier countries throughout the world.
Brandes claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions and/or presentation that complies with GIPS standards, contact client service at 800-237-7119 or write 11988 El Camino Real, Suite 600, P.O. Box 919048, San Diego, California 92191-9048 or email ClientService@Brandes.com.
(a) The World Balanced Index (rebalanced monthly) is composed of 70% MSCI World Index with net dividends and 30% U.S. Broad Investment Grade Corporate Bond Index. The MSCI World Index captures large and mid cap representation of developed markets. The U.S. Broad Investment Grade Corporate Bond Index tracks the performance of U.S. dollar-denominated bonds issued in the U.S. investment-grade bond market. Prior to April 1, 2015, the World Balanced index was composed of a 50 percent allocation to each benchmark in the blend. Brandes Investment Partners believes the rebalance of the benchmark’s allocation better represents the Global Balanced strategy’s asset allocation to equities and fixed income. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The benchmark returns are not covered by the report of independent verifiers.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.