Mid Cap Value Fund

Fundamental research is the core of our investment process. 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 in aggregate nor do we make explicit allocations to sectors, though we limit individual security and sector weights to control for risk.

We generally hold 30-80 stocks in companies typically ranked 201-1,200 by market capitalization.



Mid Cap Value Fund

Characteristics as of 3/31/2018

  Mid Cap Value Russell Mid Cap® Value Index
Price/Earnings (1 Year Forecast) 13.3x 16.1x
Price/Book 1.6x 1.9x
Median Market Cap ($M) $8,492 $6,838
Weighted Average Market Cap ($M) $11,549 $13,833
Number of Stocks 44 582

Sector Weights as of 3/31/2018

Sector Mid Cap Value Russell Mid Cap® Value Index
Consumer Discretionary
10% 12%
Consumer Staples
0% 4%
Energy
8% 8%
Financial Services
34% 35%
Health Care
9% 6%
Materials & Processing
3% 7%
Producer Durables
18% 11%
Technology
9% 6%
Utilities
3% 11%
0%
10%
20%
30%
40%

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

 


Top Ten Holdings as of 3/31/2018

  % of Net Assets
Avnet, Inc. 4.7%
Voya Financial, Inc. 3.8%
Axis Capital Holdings, Ltd. 3.7%
Mylan N.V. 3.4%
JELD-WEN Holdings Co. 3.3%
Edison International 3.1%
Cardinal Health, Inc. 3.1%
Omnicom Group, Inc. 3.0%
Ryder System, Inc. 3.0%
Carlisle Cos., Inc. 3.0%
Total 34.1%

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

 

Performance as of 6/30/18

    Annualized
  QTR
2018
YTD
2018
One
Year
Three
Year
Since Inception
Mar 31, 2014
PZIMX - Institutional Class -1.32% -2.83% 7.66% 9.46% 8.47%
PZVMX - Investor Class -1.40% -3.06% 7.39% 9.13% 8.15%
Russell Mid Cap® Value Index 2.41% -0.16% 7.60% 8.80% 8.42%

PZIMX Expense Ratio: Gross: 6.65%, Net: 0.91%*
PZVMX Expense Ratio: Gross: 6.91%, Net: 1.26%*


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 30 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

Mid Cap Value Fund - Portfolio Managers


John Flynn

Richard S. Pzena

Benjamin Silver

Started at Pzena:

Started in Industry:

Education:

Principal, Portfolio Manager

2005

2000

Yale University, BA in Music
Harvard Business School, MBA

Founder, Co-Chief Investment Officer and Portfolio Manager

1995

1980

Wharton School of the University of Pennsylvania, BS
University of Pennsylvania, MBA

Principal, Portfolio Manager

2001

1988

Yeshiva University Sy Syms School of Business, BS in Accounting
Chartered Financial Analyst (CFA)
Certified Public Accountant (CPA)

Started at Pzena:

2005

1995

2001

Started in Industry:

2000

1980

1988

Education:

Yale University, BA in Music
Harvard Business School, MBA

Wharton School of the University of Pennsylvania, BS
University of Pennsylvania, MBA

Yeshiva University Sy Syms School of Business, BS in Accounting
Chartered Financial Analyst (CFA)
Certified Public Accountant (CPA)


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 Russell Mid Cap® Value Index is unmanaged and measures the performance of those Russell Mid Cap® companies with lower price-to-book ratios and lower forecasted growth rates. The Russell Mid Cap® Index represents the approximately 800 smallest companies in the Russell 1000® Index. One cannot invest directly in an index.

Fund holdings, Sector exposure 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, Sector exposure 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/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. PZIMX was rated against the following numbers of Mid-Cap Value Funds over the following time period ending 6/30/18: 365 funds in the last three years. With respect to these Mid-Cap Value Funds, PZIMX received a Morningstar rating of 3 stars. The rating is specific to PZIMX 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 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. 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. 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.