Small 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 40-90 stocks in companies typically ranked 1,001-3,000 by market capitalization.



Small Cap Value Fund

Characteristics as of 9/30/17

  Small Cap Value Russell 2000® Value Index
Price/Earnings (1 Year Forecast) 17.4x 18.1x
Price/Book 1.6x 1.5x
Median Market Cap ($M) $1,821 $696
Weighted Average Market Cap ($M) $2,331 $1,960
Number of Stocks 43 1,396


Sector Weights as of 9/30/17

Sector   Small Cap Value Russell 2000® Value Index
Consumer Discretionary
3% 11%
Consumer Staples
2% 2%
Energy
4% 6%
Financial Services
27% 42%
Health Care
6% 6%
Materials & Processing
12% 6%
Producer Durables
24% 11%
Technology
17% 8%
Utilities
0% 7%
10%
20%
30%

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

 


Top Ten Holdings as of 9/30/17

  % of Net Assets
TriMas Corp. 4.1%
Actuant Corp. 3.8%
Associated Banc-Corp. 3.5%
American Equity Investment Life Holdings Co. 3.5%
Masonite International Corp. 3.4%
Aspen Insurance Holdings, Ltd. 3.4%
JELD-WEN Holdings, Inc. 3.3%
Gibraltar Industries, Inc. 3.3%
ScanSource, Inc. 3.3%
Owens & Minor, Inc. 3.2%
Total 34.8%


 

Performance as of 9/30/17

       Annualized
  QTR
2017
YTD
2017
One Year Since Inception
Apr. 27, 2016
PZISX - Institutional Class 6.59% 3.02% 20.36% 15.69%
PZVSX - Investor Class 6.43% 2.77% 20.01% 15.30%
Russell 2000® Value Index 5.11% 5.68% 20.55% 21.51%

PZISX Expense Ratio: Gross: 4.32%, Net: 1.21%*
PZVSX Expense Ratio: Gross: 4.97%, Net: 1.56%*


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 6/27/18

Small Cap Value Fund - Portfolio Managers


John Flynn

Evan Fox

Benjamin Silver

Tenure at Pzena:

Experience:

Education:

Principal, Portfolio Manager

11 years

16 years

Yale University, BA in Music
Harvard Business School, MBA

Principal Portfolio Manager

9 years

9 years

Wharton School of the University of Pennsylvania, BS in Economics
University of Pennsylvania, Bachelor of Applied Science
Chartered Financial Analyst (CFA)

Principal, Co-Director of Research and Portfolio Manager

15 years

28 years

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

Tenure at Pzena:

11 years

9 years

15 years

Experience:

16 years

9 years

28 years

Education:

Yale University, BA in Music
Harvard Business School, MBA

Wharton School of the University of Pennsylvania, BS in Economics
University of Pennsylvania, Bachelor of Applied Science
Chartered Financial Analyst (CFA)

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 2000® Value Index is an unmanaged index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth rates. 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.



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 small-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. These risks are greater for investments in Emerging Markets. 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.

The price-to-normalized earnings ratio is a valuation ratio. It is defined as a company's current share price divided by Pzena's estimate of future earnings.

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.