Mondrian Global Equity Value Fund

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Fund Facts as of June 30th, 2020

Ticker MPGVX
Net Expense Ratio* 0.74%
Gross Expense Ratio 3.44%
Sales Charge None
Inception Date June 30, 2020
Benchmark MSCI All Countries World
Minimum Initial Investment $50,000
Minimum Subsequent Investment $100
CUSIP 36381Y702

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 and non-routine expenses) from exceeding 0.74% of the Fund’s average daily net assets until February 28, 2022.

This agreement may be terminated: (i) by the Board of Trustees (the “Board”) of Gallery Trust (the “Trust”), for any reason at any time; or (ii) by the Adviser, upon ninety (90) days’ prior written notice to the Trust, effective as of the close of business on February 28, 2022.

 

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Fund News

July 1, 2020, London, UK Mondrian Expands Fund Options with Mondrian Global Equity Value Fund

On the heels of reducing fees for the Mondrian International Value Equity Fund (MPIEX), Mondrian Investment Partners today announced the launch of the Mondrian Global Equity Value Fund (MPGVX), expanding Mondrian’s diverse lineup by offering investors the opportunity to identify value across the world. The Fund follows the same disciplined, value investment philosophy and process as the firm’s flagship Global Equity strategies.

“The addition of the fund to our lineup is a testament to our commitment of providing consistency and a disciplined approach for nearly 30 years, as well as our vision to further diversify our offerings in order to provide our clients and prospective clients with greater investment options,” said CEO & Group CIO Clive A. Gillmore. “Given the challenging market environment, the fund will help investors pursue diverse opportunities in various sectors and parts of the world while avoiding overvalued markets.”

The Fund will be managed by the firm’s highly experienced Global Equity Team, led by CIO Aileen Gan. Following the same investment process as the firm’s successful Global All Country World Index strategy, Mondrian Global Equity Value Fund leverages the firm’s achievement and broadens access via a mutual fund investment vehicle.

Mondrian’s time-tested approach focuses on providing a rate of return meaningfully greater than the client’s domestic rate of inflation. The firm’s portfolios seek to preserve capital during protracted global market declines.

Fund Features

Universe of Securities

The universe spans markets covered in the MSCI Indices and those developing markets with adequate investor protection and good repatriation procedures. We narrow the universe from a list of approximately 2,500 securities to a shorter list of 500 to 550 securities. The screens include basic value characteristics such as gearing ratio and dividend and free cash flow yield. In addition to the screening process, ideas are also often generated from other sources such as research trips, conferences, research reports and other publications. It is this list of securities on which more detailed fundamental analysis and financial modelling is carried out, utilizing the dividend discount model.

Security Selection

Stock selection is the most important part of Mondrian’s investment process. Mondrian performs a four-stage Dividend Discount Model, with detailed analysis of companies’ financial statements to understand the drivers of earnings, cash flow and the ability to pay dividends. In order to assess the riskiness of securities, analysts construct base-, best- and worst-case scenarios to understand the range of outcomes and skew of returns for stocks.

Our analysts aim to have a solid understanding of the company itself and the industry and markets in which the company operates. Qualitative factors such as market share, secular trends/issues, barriers to entry, competitive advantages, threats/opportunities for the company, management quality, capital management and other longer-term issues (demographics, productivity and ESG issues) are all taken into consideration. Analysts use a wide variety of source materials but all information interpretation is done in-house.

Key to the security selection process is fundamental company analysis and a regular program of visiting current and prospective holdings. The firm uses forward-looking valuations and, therefore, the business plans and projections for a company’s future are very important.

Country Selection

Markets are assessed using the same dividend discount model applied to stocks. The resulting valuations are used to identify attractive markets and to ensure that there is no disproportionate risk in any one or more markets.

Sector/Industry Selection

Mondrian’s investment strategy is primarily driven by country and stock selection. The resultant sector/industry exposure in individual portfolios is closely monitored to ensure prudent diversification and a degree of global consistency in line with our views.

Currency Selection

Mondrian believes that in the medium to long term, currencies adjust to their purchasing power parity values.

Consequently, as a defensive measure to protect real returns, Mondrian may choose to participate in the value at the local level by purchasing assets in that currency and hedging the currency back into USD when its real exchange rate suggests that it is significantly overvalued by more than two standard deviations. This long-term approach is supplemented by a shorter-term assessment of the key identifiable factors which result in deviations from purchasing power parity.

Market Cap

The minimum market capitalization for new purchases is approximately $2.5 billion based on current market liquidity.

The MSCI All Country World Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world representing large and mid-cap stocks across 23 developed and 26 emerging markets.

The Fund is non-diversified.

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