International Small Cap Value Fund

Our International Small Cap 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 40-90 stocks of small-cap companies located in developed markets outside the U.S.



Characteristics as of 9/30/2018

  Pzena International
Small Cap Value Fund
MSCI World
(ex USA Small Cap)
Price/Earnings (1 Year Forecast) 11.5x 16.2x
Price/Book 1.0x 1.6x
Median Market Cap ($M) $1,707 $1,128
Weighted Average Market Cap ($M) $2,255 $2,726
Number of Stocks 48 2,559


Sector Weights as of 9/30/2018

Sector   International Small Cap Value Fund MSCI World
(ex USA Small Cap)
Consumer Discretionary
2% 14%
Consumer Staples
4% 6%
Energy
7% 4%
Financials
17% 11%
Health Care
1% 7%
Industrials
32% 21%
Information Technology
4% 11%
Materials
13% 10%
Real Estate
0% 11%
Telecom Services
5% 1%
Utilities
2% 2%
0%
10%
20%
30%
40%

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


Region Concentration as of 9/30/2018

  International
Small Cap Value Fund
MSCI World
(ex USA Small Cap)
Europe ex-U.K. 43% 36%
United Kingdom 21% 17%
Japan 18% 28%
North America 11% 9%
Dev. Asia ex-Japan 5% 3%
Australia/New Zealand 2% 7%

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

 

Top Ten Holdings as of 9/30/2018

  % of Net Assets
Salzgitter AG 3.4%
DIC Corp. 3.3%
Hitachi Metals, Ltd. 3.2%
Rexel 3.1%
Danieli & C Officine Meccaniche S.p.A. 3.0%
Northgate PLC. 3.0%
John Wood Group PLC 3.0%
Greencore Group PLC 2.9%
PostNL N.V. 2.8%
Genworth MI Canada, Inc. 2.8%
Total 30.5%

Performance as of 09/30/18

        Annualized
 
QTR
YTD
2018
One Year Since Inception
July 2, 2018
PZIIX - Institutional Class n/a n/a n/a 3.10%
PZVIX - Investor Class n/a n/a n/a 3.00%
MSCI World ex USA Small Cap Index n/a n/a n/a 0.70%

PZIIX Expense Ratio: Gross: 5.34%, Net: 1.17%*
PZVIX Expense Ratio: Gross: 5.69%, Net: 1.52%*


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 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

International Small Cap Value Fund - Portfolio Managers


Matthew Ring

Allison Fisch

Started at Pzena:

Started in Industry:

Education:

Principal, Portfolio Manager

2010

2002

BS in Aerospace Engineering University of Notre Dame,
MS in Mechanical Engineering at The Ohio State University,
MBA in Finance from Columbia University

Principal, Portfolio Manager

2001

1999

BA in Psychology from Dartmouth College

Started at Pzena:

2010

2001

Started in Industry:

2002

1999

Education:

BS in Aerospace Engineering University of Notre Dame,
MS in Mechanical Engineering at The Ohio State University,
MBA in Finance from Columbia University.

BA in Psychology from Dartmouth College

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 World ex USA Small Cap Index captures small cap representation across 22 of 23 Developed Markets (DM) countries* (excluding the United States). With 2,580 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. *DM countries in this index include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.

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.


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.