Emerging Markets Value Fund

Our Emerging Markets Value Fund adheres to the same disciplined, deep value investment philosophy and process as all of our products. Fundamental research is the core of our approach. We focus our search for investment ideas on companies that are experiencing difficulties that our research suggests are likely to be temporary. We believe that very poor profitability tends not to persist. Over time, cycles turn, management takes actions, costs are cut, and excess industry capacity diminishes. Therefore, we apply intensive research to these companies in an effort to determine whether the problems that caused the earnings shortfall are temporary or permanent. Generally speaking, the most undervalued companies receive the largest weightings. These are the companies that rank best on the basis of our estimate of normalized earnings relative to the current price of the stock.

Our investment process is bottom-up, one stock at a time. We do not value sectors or countries in aggregate nor do we make explicit allocations to sectors or countries, though we limit individual security, sector and country weights to control for risk.

We generally hold 40-80 stocks in companies from the emerging and frontier markets.



Characteristics as of 9/30/2018

  Emerging Markets Value MSCI Emerging Markets Index
Price/Earnings (1 Year Forecast) 9.5x 11.8x
Price/Book 1.0x 1.6x
Median Market Cap ($M) $10,377 $5,307
Weighted Average Market Cap ($M) $40,333 $78,955
Number of Stocks 65 1,151


Sector Weights as of 9/30/2018

Sector   Emerging Markets Value MSCI Emerging Markets Index
Consumer Discretionary
12% 9%
Consumer Staples
4% 7%
Energy
10% 8%
Financials
21% 23%
Health Care
0% 3%
Industrials
7% 5%
Information Technology
23% 27%
Materials
6% 8%
Real Estate
0% 3%
Telecom Services
5% 4%
Utilities
8% 2%
0%
10%
20%
30%

Sector weights adjusted for cash - may appear higher than actual.


Region Concentration as of 9/30/2018

  Emerging Markets Value MSCI Emerging Markets Index
Asia 70% 75%
Europe 16% 6%
North America 5% 0%
Latin America 5% 11%
Africa/Middle East 4% 8%

Country weights adjusted for cash - may appear higher than actual.

 

Top Ten Holdings as of 9/30/2018

  % of Net Assets
China Mobile, Ltd. 3.8%
Lenovo Group Ltd. 3.6%
POSCO 3.1%
Hon Hai Precision Industry Co., Ltd. 3.1%
Hyundai Heavy Industries Co., Inc. 3.0%
Samsung Electronics Co., Ltd. 2.9%
Rosneft Oil Co. - GDR 2.8%
Lukoil PJSC 2.7%
Pacific Basin Shipping, Ltd. 2.6%
Compal Electronics, Inc. 2.5%
Total 30.1%

Please click here to view a full list of our quarterly holdings.

Performance as of 9/30/18


    Annualized
  QTR
2018
YTD
2018
One
Year
Three
Year
Since Inception
Mar 31, 2014
PZIEX - Institutional Class 2.60% -3.61% 0.60% 14.77% 2.63%
PZVEX - Investor Class 2.50% -3.97% 0.15% 14.43% 2.34%
MSCI Emerging Markets Index -1.09% -7.68% -0.81% 12.36% 3.70%

 

PZIEX Expense Ratio: Gross: 1.76%, Net: 1.26%*
PZVEX Expense Ratio: Gross: 2.07%, Net: 1.61%*


Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an invest- ment 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 844.PZN.1996 (844.796.1996). The fund imposes a 1.00% redemption fee on shares held 60 days or less. Performance does not reflect the redemption fee and, if it had, returns would have been lower.

*Contractual fee waivers through 6/27/19

Emerging Markets Value Fund - Portfolio Managers


Rakesh Bordia

Caroline Cai

Allison Fisch

John P. Goetz

Started at Pzena:

Started in Industry:

Education:

Principal, Portfolio Manager

2007

1998

Indian Institute of Technology, Bachelor of Technology in Computer Science and Engineering

Principal, Portfolio Manager

2004

1998

Bryn Mawr College, BA in Economics
Chartered Financial Analyst (CFA)

Principal, Portfolio Manager

2001

1999

Dartmouth College, BA in Psychology

Managing Principal, Founding Partner, Co-Chief Investment Officer and Portfolio Manager

1996

1979

Wheaton College, BS in Mathematics
Kellogg School at Northwestern University, MBA

Started at Pzena:

2007

2004

2001

1996

Started in Industry:

1998

1998

1999

1979

Education:

Indian Institute of Technology, Bachelor of Technology in Computer Science and Engineering

Bryn Mawr College, BA in Economics
Chartered Financial Analyst (CFA)

Dartmouth College, BA in Psychology

Wheaton College, BS in Mathematics
Kellogg School at Northwestern University, MBA

Price / Earnings (1-Year Forecast) is a measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. Price / Book is a valuation ratio of a company's current share price compared to its book value. Median Market Cap is the point at which half of the market value of a portfolio is invested in stocks with a greater market cap, and consequently the other half is invested in stocks with a lower market cap. Weighted Average Market Cap is the average firm market capitalization weighted by security weight.

The MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 24 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and UAE. You cannot invest directly in an index.

Fund holdings, Regional and Sector exposures and characteristics are as of the date shown and are subject to change at any time. As a result, the Fund's current and future holdings, Regional and Sector exposures and characteristics may vary substantially from the information shown. No recommendation is made regarding the advisability of buying or selling any security.


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, without adjustment for sales loads. 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 RatingTM 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 RatingTM 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. PZIEX was rated against the following numbers of Diversified Emerging Markets Funds over the following time periods: 708 funds in the last three years. With respect to these Diversified Emerging Markets Funds, PZIEX received a Morningstar rating of 5 stars for the three-year period. The rating is specific to PZIEX and does not apply to other share classes of the Fund. © 2018 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. Past performance is no guarantee of future results.


Before you invest in Pzena Funds, please refer to the statutory and summary prospectuses for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectuses by calling 1-844-PZN-1996 (1-844-796-1996) or by clicking on statutory prospectus or summary prospectus . The prospectuses should be read carefully before you invest or send money.

Mutual fund investing involves risk. Principal loss is possible. Investments in small- and mid-cap companies involve additional risks such as limited liquidity and greater volatility than larger companies. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in Emerging Markets. The fund may have emphasis on a specific sector which could adversely affect a fund to a greater extent than if its emphasis was less. The fund may invest in securities which are less liquid and more difficult to sell than more liquid securities. The fund may invest in p-notes which are a type of equity linked derivative and involve counterparty risk and risk that the performance of the security may not exactly match the performance of the issuer. Investments in REITs are subject to the risks associated with the direct ownership of real estate.

Pzena Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Investments in REITs are subject to the risks associated with the direct ownership of real estate.

The Pzena Funds are distributed by Quasar Distributors, LLC.