Q2 2025 Behavioral Alpha Benchmark Ranking: Adding Value

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. Investments in REITs are subject to the risks associated with the direct ownership of real estate. The Fund emphasizes a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.

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.

The Pzena Funds are distributed by Quasar Distributors, LLC. Quasar Distributors, LLC is not affiliated with other broker dealers referenced above.

Essentia’s Behavioral Alpha Benchmark is comprised of long-only active equity managers from around the globe. They cover a wide range of equity investment strategies and degrees of concentration. The most recent assessment examined 135 active equity mutual fund portfolio managers using the Behavioral Alpha Score from July 1, 2022 through June 30, 2025 (assessment requires a minimum of three years of historical daily holdings data). The five managers with the highest aggregate scores across all decision types are recognized as top performers in the Q2 2025 Behavioral Alpha Benchmark ranking.

The Behavioral Alpha Score is determined using a systematic approach that evaluates investment decision-making skill over a 36-month period. The methodology isolates skill from market conditions by analyzing managers’ hit rates (the percentage of value-added decisions) and payoff ratios (the relative impact of good versus bad decisions). Each manager’s score is benchmark-adjusted and calculated based on seven key decision types: stock selection – Stock selection – Did the manager choose stocks that outperformed the benchmark over the last 3 years? Entry timing – Did the manager add value through the precise timing of their entry? Sizing – Did the manager add value through capital allocation decisions, compared to running an equally-weighted portfolio? Scaling in – Did the manager add value through the way they scaled into their positions, or would a basic algorithm have done just as well? Size adjusting – Did the manager make beneficial mid-position adjustments? Scaling out – Did the manager add value through the way they scaled out of their positions, or would a basic algorithm have done just as well? Exit timing – Did the manager add value through the precise timing of their exits?