Mondrian International Value Equity Fund

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Fund Facts as of September 30, 2020

Ticker MPIEX
Net Expense Ratio* (July 1, 2020) 0.74%
Gross Expense Ratio 0.89%
Sales Charge None
Inception Date 02/04/1992
Morningstar Rating (September 30, 2020) ★★★★
Benchmark MSCI EAFE
Minimum Initial Investment $50,000
Minimum Subsequent Investment $100
CUSIP 36381Y108

Effective March 1, 2019, The Fund changed it’s name to the Mondrian International Value Equity Fund (formerly Mondrian International Equity Fund), the ticker to MPIEX (formerly DPIEX) and the minimum initial investment to $50,000 (formerly $1 million).

© 2020 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 rising from any use of this information. Past performance is no guarantee of future results.

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 mutualfunds 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 Value Equity Fund was rated against the following numbers of U.S.-domiciled Foreign Large value funds over the following time periods: 311 funds in the last three years, 272 funds in the last five years and 179 funds in the last ten years. With respect to these Foreign Large Value funds, the Mondrian International Value Equity Fund received a Morningstar Rating of 3 stars, 3 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, July 2020 – Mondrian Reduces Fee for Mondrian International Value Equity Fund

Mondrian Investment Partners is pleased to announce a reduction in the management fee for Mondrian International Value Equity Fund (MPIEX) and changes to the Fund’s contractual expense limit. Effective July 1, 2020, the Fund’s management fee will be reduced from 0.70% to 0.65%, and the Fund’s Total Fund Operating Expenses will be changed from exceeding 0.79% to 0.74% of the Fund’s average daily net assets.

As of year-end 2019, Morningstar awarded the Fund a Morningstar analyst rating of Silver and maintained its 4-star Overall rating. “The fund has been touted as a ‘solid choice’ by Morningstar, and these reductions reflect our commitment as an active defensive manager to providing the best value to our clients,” said CEO & Group CIO Clive A. Gillmore. “Given the competitive market environment, we believe these changes will position the Fund for even greater success.”

The operating expense limits and management fee are reduced effective July 1, 2020 as follows:

Management Fees 0.65%
Other Expenses 0.19%
Total Annual Fund Operating Expenses 0.84%
Less Fee Reductions and/or Expense Reimbursements (0.10)%
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements 0.74%

 


London, UK, March 2020 – Morningstar: MPIEX “A solid choice.”

Mondrian Investment Partners Limited is pleased to announce that Morningstar has awarded the Mondrian International Value Equity Fund a Morningstar Analyst Rating of Silver and maintains its 4-star Overall rating as of December 31, 2019.

A solid choice—Mondrian International Equity has a consistent, reasonable approach that typically holds up better than most in downturns,” said the most recent Morningstar Analyst Report dated December 2, 2019.

The Fund was upgraded to Silver in its Morningstar Analyst Rating. The Fund had earned Bronze in December 2018 and February 2019.

Morningstar awarded the Fund (ticker symbol MPIEX) with an above average rating in all pillars—Process, People and Parent.

For more information, read the analyst report by clicking here.


London, UK, January 2019 – Morningtar: DPIEX “Outperformance in downturns pays off over time.”

The Fund maintained its Morningstar Analyst Rating of Bronze, with a positive rating for each of five pillars —process, performance, people, parent, and price—which it also earned in February 2018.

According to the report, “The Fund has a solid approach and the right team in place to execute it…Founded in the early 1990s, Mondrian—a boutique based in London—is still led by its founders and still relies on the patient, dividend focused value strategy that they brought to the firm.”

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, 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 Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund. For any Morningstar Analyst Rating published after October 31, 2019, the following disclosure applies: The Morningstar Analyst RatingTM is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.

The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingfor-FundsMethodology.pdf.

The Mondrian International Value Equity Fund is overall rated 4 stars for the period ending December 31, 2019 out of 302 US OE Foreign Large Value Funds. 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 Value Equity Fund was rated against the following numbers of U.S.-domiciled Foreign Large value funds over the following time periods: 304 funds in the last three years, 253 funds in the last five years and 165 funds in the last ten years. With respect to these Foreign Large Value funds, the Mondrian International Value Equity Fund received a Morningstar Rating of 4 stars, 4 stars and 4 stars for the three, five and ten-year periods, respectively. Past performance is no guarantee of future results.

Effective March 1, 2019, The Fund changed its name to the Mondrian International Value Equity Fund (formerly Mondrian International Equity Fund), the ticker to MPIEX (formerly DPIEX) and the minimum initial investment to $50,000 (formerly $1 million).

© 2020 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.

 

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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