Mondrian International Equity Fund

Fund Facts as of September 30, 2018

Ticker DPIEX
Net Expense Ratio* 0.79%
Gross Expense Ratio 0.85%
Sales Charge None
Inception Date 02/04/1992
Morningstar Rating (September 30, 2018) ★★★★
Benchmark MSCI EAFE
Minimum Initial Investment $1 million
Minimum Subsequent Investment $100
CUSIP 36381Y108

*Mondrian Investment Partners Limited (the Adviser) has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses) from exceeding 0.79% of the Fund’s average daily net assets until February 28, 2021.

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The Morningstar Rating™ 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. 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 Morningstar Rating does not include any adjustment for sales loads. 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 Rating 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 Rating 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. The Mondrian International Equity Fund was rated against the following numbers of U.S.-domiciled Foreign Large value funds over the following time periods: 276 funds in the last three years, 225 funds in the last five years and 146 funds in the last ten years. With respect to these Foreign Large Value funds, the Mondrian International Equity Fund received a Morningstar Rating of 3 stars, 4 stars and 4 stars for the three, five and ten-year periods, respectively. Past performance is no guarantee of future results.

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Fund News

London, UK, September 2018 – Mondrian Investment Partners Limited announced the reorganizations of the Laudus Mondrian International Equity Fund (LIEIX), Laudus Mondrian Emerging Markets Fund (LEMNX) and the Laudus Mondrian International Government Fixed Income Fund (LIFNX) effective September 24, 2018.

With all three reorganizations, Mondrian transitioned from the sub-advisor to the advisor and will continue to apply Mondrian’s value investment philosophy, methodology and portfolio management process to each Fund.

Read more.


London, UK, April 2018 –  Morningtar: DPIEX “Worth a Look

According to the report, “Experience wouldn’t be a selling point without the consistent application of a solid method and performance to demonstrate its value, and this fund has both.”

For more information, read the analyst’s report by clicking on the above report image, which includes an analysis of the Fund’s Process, Performance, People, Parent, and Pricing.


London, UK, March 2016 – Mondrian Investment Partners Limited announced the reorganization of the Delaware Pooled Trust International Equity Fund (DPIEX) into the Mondrian International Equity Fund. With the Fund’s reorganization, Mondrian transitions from the sub-advisor to the advisor for the Fund. The Fund is available to new institutional investors starting today.

“Mondrian has managed this portfolio since inception in February 1992, offering shareholders a long-term record of outperformance and lower volatility as compared to MSCI EAFE and the Morningstar Foreign Large Value peer group” said Clive Gillmore CEO and Group CIO for Mondrian.  The Fund’s investment team, led by CIO Elizabeth Desmond, will continue to apply Mondrian’s philosophy, methodology, and portfolio management process and anticipate providing the defensive, value-oriented characteristics that have been consistently delivered for over two decades.  Gillmore added, “The ability to manage our own mutual fund builds on our strategy of delivering our investment capabilities to a broad range of institutional investors.  We believe that the Mondrian International Equity Fund will be of interest to defined contribution plan sponsors and their consultants, as well as other US institutional advisors.”

Fund Features

Universe of Securities

The Fund’s universe spans markets covered in the MSCI EAFE Index (developed markets outside of North America) and some select exposure to emerging markets with adequate investor protection and good repatriation procedures. We narrow the universe to a list of more than 1000 securities on the basis of value criteria such as price to book, price to cash flow ratio, price to earnings ratio, yield, and liquidity considerations.

Security Selection

Security selection is the most important part of Mondrian’s equity investment process. Mondrian uses the same dividend discount valuation model of future income streams across all markets, securities and industries. Securities which are significantly mispriced relative to the dividend discount valuation are purchase and sale candidates.

Key to the security selection process is fundamental company analysis and a regular program of meeting with companies. Meeting with the management of holdings is important to the investment process. The firm uses forward looking valuations, and therefore, the business plans and projections for a company’s future are extremely important.

Country Selection

Tied to the security selection is a top-down country allocation overlay that helps to structure the portfolio. Markets are analyzed by the relevant regional specialist who uses an aggregated dividend discount model to assess each market’s real return potential. This analysis is combined with shorter term political and monetary considerations to assist the International Equity team in screening for potential ideas and to guide them in building the portfolio’s country allocations. These allocations can vary substantially from the index.

Sector/Industry Selection

Sector / Industry selection forms a secondary part of the Fund’s portfolio construction process. Levels of all allocations to sectors are monitored to ensure prudent diversification. Sector allocations can vary substantially from the index.

Currency Selection

We believe in the long term, currencies adjust back to their long term purchasing power parity value relative to the US dollar. Over the short-term, currencies can fluctuate significantly around this value. Consequently, Mondrian may defensively hedge a foreign currency back to the US dollar if we feel that currency is materially overvalued.

Market Cap

Capitalization size is not a major factor in the Mondrian equity investment process. There is no set percentage of the Fund that will be invested in certain capitalization size ranges. The majority of the Fund is invested in medium and large capitalization stocks.

The MSCI EAFE Index (Europe, Australasia, Far East) is a free-float adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US and Canada.  Index returns are shown with net dividends reinvested.

The MSCI EAFE Value Index captures large and mid cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada.  The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.

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