Brandes - U.S. - Mutual Brandes Emerging Markets Value Fund Content

Brandes Emerging Markets Value Fund

The Fund seeks long-term capital appreciation by investing in equity securities of issuers in developing markets that the Fund’s investment team believes are undervalued relative to their financial strength and upside potential.

Be at the Forefront of Opportunity

  • Pioneer — Brandes has been navigating emerging markets for over 30 years and managing a standalone Emerging Markets Fund for over 20 years.
  • Value — The fund consistently applies a disciplined investment process focused on uncovering emerging-market companies with potentially attractive value attributes.
  • Flexibility — The fund has the ability and willingness to be different than the benchmark, including investing in frontier-market companies and other off-index opportunities.

Partner with a Pioneer in Global Value Investing

  • Experienced Professionals — The Investment Committee is composed of experienced professionals who have managed extreme market cycles.
  • Commitment to Transparent, Easy to Understand Investment Process — The firm consistently applies a Graham-and-Dodd, value investing approach centered on a research-driven process of purchasing potentially undervalued companies with the goal of capturing future price appreciation.
  • 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.
Under normal market conditions, the Emerging Markets Value Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) measured at the time of purchase in equity securities of companies located in emerging markets. These companies may have market capitalizations of any size. Equity securities include common and preferred stocks, warrants and rights. Emerging markets include some or all of the countries located in each of the following regions: Asia, Europe, Central and South America, Africa and the Middle East. The Advisor considers an emerging market country to be any country which is in the Morgan Stanley Capital International Emerging Markets Index (“MSCI EM Index”) or that, in the opinion of the Advisor, is generally considered to be an emerging market country by the international financial community.

Brandes Investment Partners, L.P., the investment advisor (the “Advisor”), uses the principles of value investing to analyze and select equity securities for the Emerging Markets Value Fund’s investment portfolio. When buying equity securities, the Advisor assesses the estimated “intrinsic” value of a company based on data such as a company’s earnings power, cash flow generation, and/or asset value of the underlying business. By choosing securities that are selling at a discount to the Advisor’s estimates of their share of the company’s intrinsic business value, the Advisor seeks to establish an opportunity for long-term capital appreciation. The Advisor may sell a security when its price reaches a target set by the Advisor, if the Advisor believes that other investments are more attractive, or for other reasons.

Shareholder Fees
(fees paid directly from your investment)
   Class A    Class C    Class I    Class R6
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) -0 5.75% -0 None -0 None -0 None
Maximum Deferred Sales Charge (Load) -0 None* -0 1.00%# -0 None -0 None
Please click here for sales load break points.

*Investments of $1 million or more are not subject to a front-end sales charge but generally will be subject to a deferred sales charge of 1.00% on amounts of less than $4 million, 0.50% on amounts of at least $4 million but less than $10 million and 0.25% on amounts of at least $10 million, if redeemed within one year from the date of purchase.

#A charge of 1.00% will be imposed on Class C shares redeemed within one year of purchase by any investor.
Annual Fund Operating Expenses 1
(expenses that you pay each year as a percentage of the value of your investment)
   Class A    Class C    Class I    Class R6
Management Fees -0 0.95% -0 0.95% -0 0.95% -0 0.95%
Distribution (rule 12b-1) Fees -0 0.25% -0 0.75% -0 None -0 None
Other Expenses        
Shareholder Service Fees -0 None -0 0.25% -0 None -0 None
Other Expenses -0 0.19% -0 0.18% -0 0.24% -0 0.19%
Total Other Expenses -0 0.19% -0 0.43% -0 0.24% -0 0.19%
         
Total Annual Fund Operating Expenses -0 1.39% -0 2.13% -0 1.19% -0 1.14%
Less Fee Waiver/Expense Reimbursement -0 0.02% -0 0.03% 0 -0.03% 0 -0.13%
Net Annual Fund Operating Expenses -0 1.41% -0 2.16% -0 1.16% -0 1.01%
1The Advisor has contractually agreed to limit the Emerging Markets Value Fund’s Class A, Class C, Class I and Class R6 annual operating expenses (excluding acquired fund fees and expenses, taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation), including repayment of previous waivers, to 1.37% for Class A, 2.12% for Class C, 1.12% for Class I and 0.97% for Class R6 as percentages of the respective Fund classes’ average daily net assets through January 31, 2019 (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 the fiscal year (taking into account the reimbursement) does not exceed the Expense Cap with respect to such Class or any lower expense cap for the Class in effect at the time of the 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. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political 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 have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

1 IMF Data Mapper “World Economic Outlook” April 2018.

2 Sources: Worldscope via FactSet, The Brandes Institute, as of 6/30/2016. Using data from 1980 to 2016, the study showed that over the long term, a value premium was evident across regions. The emerging markets sample consisted of publicly traded companies domiciled in countries not categorized as developed countries (excluding the smallest 50% of companies). Stocks were first divided into 10 deciles based on price-to-book. Aggregate performance of each decile was tracked over the next five years. This process was then repeated each year. For emerging markets stocks decile 10 value stocks outperformed decile 1 glamour stocks by an average annualized rolling five-year return of 13.59% as measured by their price-to-book ratios. Past performance is not a guarantee of future results.

The MSCI Emerging Markets Index with net dividends captures large and mid cap representation of emerging market countries. Data prior to 2001 is gross dividend and linked to the net dividend returns.

One cannot invest directly in an index.

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.

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