UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-08614
Brandes Investment Trust
(Exact name of registrant as specified in charter)
4275 Executive Square, 5th Floor
La Jolla, CA 92037
(Address of principal executive offices) (Zip code)
Lea Anne Copenhefer
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726
(Name and address of agent for service)
(858) 755-0239
Registrant’s telephone number, including area code
Date of fiscal year end: September 30
Date of reporting period: March 31, 2022
Item 1. Reports to Stockholders.
(a) The following is a copy of the reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30e-1):
SEMI-ANNUAL REPORT INTERNATIONAL EQUITY FUND GLOBAL EQUITY FUND EMERGING MARKETS VALUE FUND INTERNATIONAL SMALL CAP EQUITY FUND SMALL CAP VALUE FUND U.S. VALUE FUND CORE PLUS FIXED INCOME FUND For the six months ended March 31, 2022
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Brandes International Equity Fund
Dear Fellow Investor,
The net asset value of the Brandes International Equity Fund (Class I Shares) declined 3.39% in the six months ended March 31, 2022. During the same period, the MSCI EAFE Index declined 3.38%.
From a country perspective, holdings in Brazil helped performance, led by Telefonica Brasil and Petroleo Brasileiro (Petrobras). Select holdings in the United Kingdom (e.g., pharmaceutical firm GlaxoSmithKline) and Switzerland (e.g., financial services company UBS Group) also did well.
From an industry perspective, beverage companies Ambev (Brazil) and Anheuser-Busch InBev (Belgium) aided returns. The Fund also saw positive contributions from select insurance holdings, notably Swiss Re and AEGON (Netherlands), as they benefited from improved prospects for increased interest rates and strengthening business results.
Furthermore, our underweight to technology aided relative returns as the sector declined significantly more than the broader market (MSCI EAFE).
The most significant detractors were our holdings in Russia (Mobile TeleSystems and Surgutneftegas). Our thoughts continue to be with the people of Ukraine, as well as those in Russia that are advocating for peace. The events that have unfolded since the start of the Russian invasion of Ukraine in February have significantly elevated the risks and uncertainties associated with investments in Russian securities.
Other detractors included consumer-related holdings, namely Germany-based Henkel and France-based Danone, as well as U.K.-based Marks & Spencer, J Sainsbury and Kingfisher.
Furthermore, Brazilian regional jet manufacturer Embraer gave back some of its strong performance over the past 18 months as it declined on lowered short- term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.
Select Portfolio Activity
The investment committee initiated new positions in Japan-based SoftBank Group and U.K-based TechnipFMC during the period.
TechnipFMC (FTI) is the product of a 2016 merger between Technip, a leading engineering, procurement and construction company (EPC), and FMC, a leading provider of subsea production and processing equipment. The rationale of the merger was to combine equipment manufacturing with engineering and construction of subsea oilfields. In 2021, the company completed a long-planned separation of its onshore EPC business, making it purely focused on offshore oilfield exploration and development.
With an over 40% market share, FTI is the industry leader in subsea systems, highly engineered capital goods that reside on the seabed producing and processing
2 | Past Performance is not a guarantee of future results. |
Brandes International Equity Fund
hydrocarbons. The subsea industry has been in a multi-year slump following a decade of high oil prices. Capital expenditures (capex) among upstream oil and gas companies (FTI’s customer base) reached highs in 2014 and are estimated to be less than half of the peak levels in 2021. In addition to the collapse in capex, there has been a shift of investment to unconventional opportunities on land. The overall effect has been a sustained period of low manufacturing utilization, high price competition and distressed profitability for the subsea industry.
While a return to peak capex is unlikely, we believe a gradual increase in offshore activity is in the cards given two main factors: 1) global demand growth has been stable or growing; and 2) poor returns from onshore unconventional production over the past decade may be an indication that more capital should flow elsewhere (or oil prices need to be substantially higher). In our view, FTI is well positioned to benefit from the potentially improved offshore activity considering its industry-leading position in subsea equipment and engineering, as well as its fully integrated business model. Furthermore, we appreciate that FTI has made several investments to capitalize on its offshore development expertise and seek to benefit from a global energy transition, including subsea carbon transportation and storage, floating renewable power generation (offshore wind) and hydrogen production, storage and re-electrification.
SoftBank Group is a holding company whose primary assets include technology and wireless companies, such as internet company Alibaba, semiconductor firm Arm and wireless telecommunication company Softbank Corp, as well as its two Vision funds, which are venture capital funds that invest in technology companies. SoftBank’s stock fell at the beginning of the year due to Alibaba’s share-price decline, as well as a widening discount to its net asset value (NAV). SoftBank now trades near its largest NAV discount in its history (as of March 31).
Other major portfolio activity included the divestments of German chemical company BASF, Ireland-based building materials business CRH and Canadian uranium company Cameco, which appreciated significantly on a potentially improved uranium outlook.
Looking Forward
As of March 31, 2022, the Brandes International Equity Fund held its key overweights to communication services, health care, energy and consumer staples, while maintaining significantly lower allocations to technology and industrials than the benchmark. Geographically, we continued to have overweight positions in France and emerging markets, and underweight positions in Australia and Japan. We believe the differences between our Fund and the benchmark continue to make it an attractive complement to index-tracking or growth-oriented alternatives.
Value stocks (as measured by the MSCI EAFE Value Index) outperformed the broader market (MSCI EAFE Index) noticeably at the start of the year when rising inflation and interest rates caused the valuations of many high-flying growth companies to compress.
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Brandes International Equity Fund
Geopolitical developments in the second half of the quarter (i.e., the Russia/Ukraine conflict) have exacerbated inflationary trends and triggered concerns about an economic slowdown, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).
In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially given the historically wide valuation discounts at which value stocks traded relative to growth (MSCI EAFE Growth Index). However, with inflation persisting and economic growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While it is true that weaker growth may present a headwind for value stocks (all else being equal), it has not always been the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. These periods shared common attributes that catalyzed the favorable environment for value: they were preceded by a period of elevated general market valuations and historically wide discount levels for value relative to growth.
Today, even after outperforming growth in the past 18 months, value stocks continue to trade at historically high discount levels relative to growth stocks, leading us to believe that the current environment still bodes well for value despite diminished optimism about economic growth.
We remain optimistic about the prospects of the Brandes International Equity Fund and appreciate your continued trust.
Thank you for the trust you have placed in us.
Sincerely yours,
The Brandes International Large-Cap Investment Committee
Brandes Investment Trust
Dividend Yield: Dividends per share divided by price per share.
Net Asset Value: A company’s total assets minus its liabilities, divided by the number of outstanding shares.
Nifty Fifty: A popular name in the 1960s and 70s for a group of the largest U.S. companies.
Return on Invested Capital: Net income minus dividends divided by total capital; used to assess a company’s efficiency at allocating the capital under its control to profitable investments.
Stagflation: Combination of slow economic growth and high inflation.
Diversification does not assure a profit or protect against a loss in a declining market.
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Brandes International Equity Fund
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The MSCI EAFE Index with net dividends captures large and mid cap representation of developed market countries excluding the U.S. and Canada.
The MSCI EAFE Value Index with gross dividends captures large and mid cap securities across developed market countries, excluding the United States and Canada, exhibiting value style characteristics, defined using book value to price, 12-month forward earnings to price, and dividend yield.
The MSCI EAFE Growth Index with gross dividends captures large and mid cap securities across developed market countries, excluding the United States and Canada, exhibiting growth style characteristics, defined using long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
5
Brandes International Equity Fund
One cannot invest directly in an index.
The Brandes International Equity Fund is distributed by ALPS Distributors, Inc.
The following chart compares the value of a hypothetical $100,000 investment in the Brandes International Equity Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the MSCI EAFE (Europe, Australasia and Far East) Index for the same period.
Value of $100,000 Investment vs MSCI
EAFE (Europe, Australasia and Far East) Index (Unaudited)
Average Annual Total Return | ||||||||||||||||
Periods Ended March 31, 2022 | ||||||||||||||||
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception(1) | |||||||||||||
Brandes International Equity Fund | ||||||||||||||||
Class A(2) | -0.07 | % | 3.60 | % | 4.87 | % | 6.97% | |||||||||
Class A (2) (with maximum sales charge) | -5.84 | % | 2.37 | % | 4.25 | % | 6.72% | |||||||||
Class C(3) | -0.55 | % | 2.88 | % | 4.23 | % | 6.17% | |||||||||
Class C (3) (with maximum sales charge) | -1.51 | % | 2.88 | % | 4.23 | % | 6.17% | |||||||||
Class I | 0.16 | % | 3.86 | % | 5.09 | % | 7.21% | |||||||||
Class R6(4) | 0.23 | % | 3.97 | % | 5.20 | % | 7.28% | |||||||||
MSCI EAFE (Europe, Australasia and Far East) Index | 1.16 | % | 6.72 | % | 6.27 | % | 4.96% |
(1) | The inception date is January 2, 1997. |
(2) | Performance shown prior to January 31, 2011 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. |
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Brandes International Equity Fund
(3) | Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date. |
(4) | Performance shown prior to February 1, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
7
Dear Fellow Investor,
The net asset value of the Brandes Global Equity Fund (Class I Shares) increased 0.86% in the six months ended March 31, 2022. During the same period, the MSCI World Index increased 2.21%.
Rising energy prices benefited our oil-related holdings, including integrated oil firms Shell and BP, as well as oil field services company Halliburton. Additionally, financial firms UBS Group, Wells Fargo and AIG rose.
Other contributors included aerospace and defense company General Dynamics and several of our health care holdings, notably McKesson, Pfizer, GlaxoSmithKline and Merck.
As geopolitical concerns increased in lock step with worries about sustained increased inflation and the potential for slowing economic growth, European markets and emerging markets experienced the deepest decline. The impact was primarily led by technology and consumer discretionary companies because their valuations are materially influenced by rising interest rates and consumer companies are likely to see the largest demand impact from rising inflation. Our largest detractors included several of our consumer holdings, such as U.S. flooring company Mohawk Industries, U.K. home retailer Kingfisher, South Korean auto manufacturer Hyundai Motor and Chinese major appliance manufacturer Gree Electric.
We had no direct exposure to securities in Russia or Ukraine; while some of our holdings have indirect exposure, our overall portfolio revenue exposure is less than those in the MSCI World Index. Excluding energy-related holdings, Mohawk has the highest exposure to Russia at about 4% of total sales. The company has also confronted significant cost inflation, which we expect to blunt its short-term margins. Longer term, we believe Mohawk is well positioned and can contend with cost inflation. After its recent stock price decline, it now trades at a single digit multiple of earnings.
Other detractors included Embraer, Citigroup and Alibaba Group. Embraer saw its stock decline on its reduced short-term margin guidance. However, over the longer term, we believe the market is missing the ongoing cycle recovery across the company’s portfolio. While the market is heavily focused on short-term, one-off item margin distortions, Embraer’s order backlog has already risen above pre-COVID levels. The company is therefore trading at a wide discount to our estimate of its long-term intrinsic value.
Select Portfolio Activity
The investment committee initiated a position in U.K.-based bank NatWest, while selling our holdings in U.K-based Barclays.
NatWest, formerly RBS, is the U.K.’s fourth-largest bank. Since its government bailout during the financial crisis, the company has pursued its turnaround to become a financial institution focused on retail and commercial banking. The bank has de-risked its balance sheet, built capital and focused on reducing costs. The U.K. government still owns just over half of its outstanding shares, but NatWest has targeted fully exiting its majority government ownership over the next three to four years. Through its
8 | Past Performance is not a guarantee of future results. |
Brandes Global Equity Fund
simplified positioning, we believe NatWest could benefit from a rise in interest rates as it is likely the most interest rate-sensitive of the U.K.-listed banks.
NatWest trades at what we believe to be an attractive valuation of less than 80% of tangible book, and a single digit multiple of earnings that have not yet been materially affected by increasing interest rates. In our opinion, it offers a very strong capital position, has plans to distribute about 15 to 20% of its current market cap to shareholders over the next few years and currently offers a 7% dividend yield.
We therefore decided to sell our stake in Barclays, which has tended to be less rate sensitive and more complex given its corporate and investment banking exposure, and bought a position in NatWest.
The investment committee also added China-based sportswear retailer Topsports Holdings International to the Fund, while divesting Mexican beverage firm Fomento Economico Mexicano(FEMSA) and U.S. food products company Ingredion as they reached our estimates of their intrinsic value.
The investment committee bought Ingredion during the market downturn of early 2020. The company’s share price came under pressure due to concerns around global trade, as well as the risk of a significant recession as COVID-19 began to spread globally. However, we thought Ingredion offered an attractive long-term opportunity as it had exposure to the growing specialty ingredients market and at its valuation, it also offered a significant margin of safety. Over our holding period, the company has executed well and its share price climbed significantly in 2021. When it reached our estimate of its intrinsic value, we divested.
Looking Forward
Value stocks (as measured by the MSCI World Value Index) outperformed the broader market (MSCI World Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends and increased worries about a slowdown in growth, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).
Heading into 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially against the wide valuation discounts value stocks traded at relative to growth. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. Weaker growth may be a headwind for value stocks all else being equal, but that has rarely been the case. In fact, two of the best periods for value versus growth were in the 1970s post-“Nifty Fifty” era (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s.
The common factors of these two periods resulting in highly favorable value environments were: markets were in a state of elevated valuations and the spread
9
Brandes Global Equity Fund
between value and growth was at historically wide levels. The 1970s experienced one of the strongest value performance relative to growth of any decade in the Ken French Data Library (data from 1930 to 2020)1—and it was a period of weak real U.S. GDP (gross domestic product) growth and elevated U.S. inflation. However, and significantly for our analysis, it was preceded by a wide divergence between value and growth stock valuations—just like today. The tailwinds for value that were driving relative returns earlier this year still appear evident to us. Valuation spreads are almost as wide as they have ever been, and we are as bullish about value as we have been for more than a decade.
From an industry/sector standpoint, the Fund’s largest relative overweight positions remained in three main areas. These are: the economically sensitive financials and energy sector, and the more defensive, but (from our perspective) meaningfully undervalued, health care sector. Besides many of the attractive defensive and high-quality characteristics of many of our health care holdings, some also show potential for a cyclical rebound from a pick-up in demand for elective procedures, which had been restricted during the pandemic. We expect our financial holdings to benefit from an increase in interest rates, which is finally starting to occur and will affect their net interest margins.
Our most significant underweights were in technology, consumer staples, and communication services, which appear generally expensive to us, excluding a few specific value opportunities. These areas include several appealingly priced companies that have exposure to robust secular trends, such as 5G, AI, and fintech. They include semiconductor companies, like Samsung and SK Hynix, which trade at much more attractive valuations than a company like Nvidia, yet should benefit from the growth in artificial intelligence and the Internet of Things proliferation. Additionally, instead of holding fintech darling Square (now called Block), whose high valuation reflects market admiration, we invested in Fiserv, which owns Square competitor, Clover, and trades at much more appealing valuation levels.
We are also being careful with our exposure to companies that may be hurt by continued inflation. Generally, these include businesses with low margins, low returns on equity, low pricing power, or high labor cost, as well as those with balance sheet leverage.
From a country/region perspective, we remained overweight in the United Kingdom, France and emerging markets; we were underweight in the United States and Japan.
Looking ahead for the remainder of this year and beyond, we remain optimistic about the prospects for the Global Equity Fund given its history of outperforming the MSCI World Value Index during periods of strong value performance. Furthermore, we are encouraged by the potential for earnings recoveries among our holdings, as well as their attractive valuation discounts relative to growth stocks and the broad market.
10
Brandes Global Equity Fund
We believe the differences between the Fund and the broader market continue to make it an intelligent complement to index-tracking or growth-oriented alternatives. We remain excited about the Fund’s potential, and we thank you for the trust you have placed in us.
Sincerely yours,
The Brandes Global Large-Cap Investment Committee
Brandes Investment Trust
1Dec. 31, 1929 to Dec. 31, 2019. Based on the Ken French Data Library. Value stocks represented by the cheapest quintile of the universe – all listed NYSE, AMEX, and Nasdaq stocks – on a book to price basis, relative to growth stocks represented by the most expensive quintile of the universe on a book to price basis.
Dividend Yield: Dividends per share divided by price per share.
Margin of Safety: The discount of a security’s market price to what the firm believes is the intrinsic value of that security.
Market Capitalization (Cap): The number of common shares outstanding multiplied by the current market price per common share.
Nifty Fifty: A popular name in the 1960s and ‘70s for a group of the largest U.S. companies.
Return on Equity: Net income divided by shareholder’s equity.
Stagflation: Combination of slow economic growth and high inflation.
Tangible Book Value: Book value minus intangible assets (e.g., goodwill).
Yield: Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.
Diversification does not assure a profit or protect against a loss in a declining market.
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
11
Brandes Global Equity Fund
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The MSCI World Index with net dividends captures large and mid cap representation of developed markets.
The MSCI World Value Index with gross dividends captures large and mid cap securities across developed market countries exhibiting value style characteristics, defined using book value to price, 12-month forward earnings to price, and dividend yield.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
One cannot invest directly in an index.
The Brandes Global Equity Fund is distributed by ALPS Distributors, Inc.
12
Brandes Global Equity Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes Global Equity Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the MSCI World Index for the same period.
Value of $100,000 Investment vs MSCI
World Index (Unaudited)
Average Annual Total Return Periods Ended March 31, 2022 | ||||||||||||||||
One Year | Five Years | Ten Years | Since Inception(1) | |||||||||||||
Brandes Global Equity Fund | ||||||||||||||||
Class A (2) | 4.31 | % | 6.62 | % | 7.29 | % | 6.93% | |||||||||
Class A (2) (with maximum sales charge) | -1.68 | % | 5.36 | % | 6.66 | % | 6.46% | |||||||||
Class C(3) | 3.54 | % | 5.83 | % | 6.66 | % | 6.11% | |||||||||
Class C (3) (with maximum sales charge) | 2.56 | % | 5.83 | % | 6.66 | % | 6.11% | |||||||||
Class I | 4.56 | % | 6.89 | % | 7.56 | % | 7.17% | |||||||||
MSCI World Index | 10.12 | % | 12.42 | % | 10.88 | % | 10.21% |
(1) | The inception date is October 6, 2008. |
(2) | Performance shown prior to January 31, 2011 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. |
(3) | Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares. |
Performance data quoted represents past performance; past performance does not indicate 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
13
Brandes Global Equity Fund
performance quoted. Performance data current to the most recent month end may be obtained by calling 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
14
Brandes Emerging Markets Value Fund
Dear Fellow Investor,
The net asset value of the Brandes Emerging Markets Value Fund (Class I Shares) declined 11.23% in the six months ended March 31, 2022. During the same period, the MSCI Emerging Markets Index declined 8.20%.
At the onset, we are deeply saddened by the loss of life and the disruption being forced upon the people of Ukraine. Our thoughts continue to be with the people of Ukraine, as well as those in Russia that are advocating for peace. The events that have unfolded since the start of the Russian invasion of Ukraine in February have significantly elevated the risks and uncertainties associated with investments in Russian securities. The most significant detractors in the Fund during the period were our holdings domiciled in Russia, including Lukoil, Mobile TeleSystems and Sberbank.
Beyond Russia, we have also observed increased volatility within the Chinese equity market. Fresh COVID-related lockdowns and geopolitical issues (e.g., relations with Russia and Taiwan) were notable overhangs. Continued investor unease with ADRs (American depositary receipts) and overseas listings further pressured the market, along with regulatory risk on technology-related companies, property market instability, and concerns about economic growth. In mid-March, Vice Premier Liu He announced that the government would introduce policies that are expected to be favorable to the market. While the statement stabilized China’s financial markets momentarily, several of our holdings there performed poorly in recent months, most notably China Education Group, Chinasoft International, Midea and Weichai Power.
Other poor performers included Brazilian regional jet manufacturer Embraer and Mexican cement company Cemex. Embraer’s shares declined on lowered short-term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.
Additionally, our underweight to non-Russian commodities-oriented companies and allocation to the financials sector weighed on returns relative to the MSCI Emerging Markets Index.
Strong performers in the Fund included Brazilian holdings such as oil and gas firm Petrobras, Telefonica Brasil and wireless telecommunication services company TIM. Additionally, China based Wens Foodstuff Group saw its shares rise as strong peak-season demand led hog prices to increase materially from October 2021’s lows.
Although our overall exposure to the financials sector hurt relative returns, select bank holdings performed well. These included Bank Rakyat Indonesia, Thailand-based Bangkok Bank, Bank of the Philippine Islands, and newly added Erste Group Bank. Furthermore, the Fund’s underweight to China helped returns relative to the benchmark.
Select Portfolio Activity
Past Performance is not a guarantee of future results. | 15 |
Brandes Emerging Markets Value Fund
The emerging markets investment committee initiated several positions, including Erste Group Bank and LG Household & Healthcare.
Erste is a bank that we know well, having held it on multiple occasions, most recently in early 2020. While it is domiciled in Austria, the company operates throughout emerging Europe with a strong market position. Erste fell nearly 50% amid the Russia/Ukraine conflict, despite having no direct exposure to Russia, Ukraine, and Belarus. The company has performed stress-testing on its loans to account for the energy price increases and concluded there was no need for materially higher provisions, highlighting the strength of its loan portfolio.
LG Household & Health Care (LGHH) is a diversified consumer goods company based in South Korea. The company has enjoyed consistent growth, with revenues growing at a 10-year compounded rate of 13% annually (pre-pandemic) and operating profit at 18%, leading it to become South Korea’s top player in all three of its divisions: Beauty (cosmetic products), Health (health care and household products) and Refreshment (beverages).
LGHH’s flagship luxury cosmetics brand, The History of Whoo, has steadily been gaining share in the Chinese beauty market (its main market) as it benefited from the shift in consumer preferences from value to premium products, a trend that is expected to continue in the foreseeable future. Recently, however, sales have started to slow down, mainly due to the strict lockdowns in China and the related decline in the duty-free sales channel. As a result, LGHH’s shares fell over 30% in 2021.
We believe the market is applying an overly harsh scenario of permanently slower sales growth of LGHH’s cosmetic products, providing us with an opportunity to invest in a company with a solid market presence at appealing valuations. In our opinion, LGHH remains well positioned to benefit from the premiumization of China’s beauty market and from a rebound in sales as mobility restrictions ease in its main markets.
The emerging markets investment committee also took advantage of the increased volatility in China to add Topsports International Holdings to the Fund.
As China’s largest sportwear retailer, Topsports partners with international brands to sell their products through the company’s directly operated stores. Topsports’ largest and most significant partners are Nike and Adidas, two highly popular brands in China that account for nearly half of the country’s sportswear market in terms of sales. Topsports is Adidas’ largest global partner and Nike’s second-largest global partner, representing roughly half of Nike’s total sales in China.
In March 2021, Topsports’ shares reached highs after Nike reported strong sales in China, suggesting that the post-COVID demand recovery was underway. Since then, however, Topsports’ shares have declined materially on several factors:
• Short-term concerns around inventory shortages due to government-mandated production shutdowns;
• Increased geopolitical risks for Western brands selling in China;
• Tension over labor treatment in cotton-growing Xinjiang region;
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Brandes Emerging Markets Value Fund
• Fresh lockdowns triggered by the Delta variant;
• Worries about the spillover effects of the property market downturn on consumption.
We believe these concerns have been accounted for in Topsports’ share price. Topsports is one of two Chinese sportwear companies (the other one being Pou Sheng International) with a national network of retail outlets. Over the past five years, it has outpaced its rival, achieving better topline growth and higher average operating margins. It is our view that the current manufacturing challenges will eventually subside and that Topsports is well positioned to benefit from China’s sportswear market growth, which is expected to be double-digit annually over the medium term. Furthermore, Adidas and Nike are looking to consolidate their retail partnerships, and we believe Topsports should be a beneficiary of this trend given its strong position in China and its established relationships with both brands.
Other major activity included the full sells of Thailand-based Siam Commercial Bank, India-based media company Zee Entertainment Enterprises, and Mexican beverage company Fomento Economico Mexicano (FEMSA). The committee also exited the Fund’s positions in China-based Wens Foodstuff, Argentina’s YPF and O2 Czech Republic, as well as Greece’s Hellenic Telecommunications. We exited these positions as the shares appreciated toward our estimates of their intrinsic values.
Looking Forward
As of March 31, 2022, the Fund held large sector overweights in real estate (note that we do not own any real estate holdings in China) and consumer discretionary, and key underweights to materials and financials. From a country perspective, even though Chinese companies made up the Fund’s largest allocation, we remained underweight relative to the benchmark. We also continued to be underweight India and Taiwan, while having a significant overweight to companies in Mexico, Indonesia and Brazil.
The world has changed significantly in the past couple months. With so many moving parts and ever-changing news flow, it is easy to get lost in the myriad of topical questions. It would be impossible to predict the outcomes of current world events and their impact on investment portfolios.
Looking forward, we believe the Brandes Emerging Markets Value Fund offers a diversified portfolio with exposure to the following factors:
• Post-COVID economic reopening/normalization: We believe our holdings in air travel, casino gaming and luxury retail, as well as those in China, Southeast Asia, and Latin America from a geographic standpoint, will benefit assuming the pandemic’s economic impact continues to ease.
• Inflation: While we make no attempt to forecast inflation, we believe the portfolio is well positioned for a rising inflation environment through our holdings in financials and real estate investment trusts with inflation-indexed rents, as well as high-yielding businesses. These holdings may benefit from net interest margin expansion should the
17
Brandes Emerging Markets Value Fund
yield curve steepen. Additionally, we have reduced the exposure to financial leverage among our non-financial holdings, which we believe is prudent given the potential impact of rising interest rates on the cash flows of these businesses.
• Long-term growth drivers in emerging markets: Our positions in consumer-related fields (e.g., e-commerce, food products, appliances, sportswear, cosmetics, education) provide exposure to the growing middle-class consumption in emerging markets.
We believe this positioning, combined with the Fund’s overall attractive valuation levels, bodes well for the Fund’s returns in the long term.
Sincerely yours,
The Brandes Emerging Markets Investment Committee
Brandes Investment Trust
American Depositary Receipt: A negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—usually one share—of a foreign company’s stock.
Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.
Net Interest Margin: Interest income generated by a financial institution minus the amount of interest paid to its lenders, divided by average earning assets.
Operating Margin: Operating income divided by net sales; used to measure a company’s operating efficiency.
Operating Profit: Earnings before interests and taxes.
Yield Curve: A yield curve shows the relation between the yield on debt instruments (i.e., annual income from the investment, divided by the current market price of the investment) and their times to maturity. A typical yield curve slopes upward to reflect higher interest rates for longer maturities.
Diversification does not assure a profit or protect against a loss in a declining market.
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging markets involve greater risk and volatility than more developed markets. Some emerging markets may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value
18
Brandes Emerging Markets Value Fund
stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The MSCI Emerging Markets Index with net dividends captures large and mid cap representation of emerging market countries.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
One cannot invest directly in an index.
The Brandes Emerging Markets Value Fund is distributed by ALPS Distributors, Inc.
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Brandes Emerging Markets Value Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes Emerging Markets Value Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the MSCI Emerging Markets Index for the same period.
Value of $100,000 Investment vs MSCI
Emerging Markets Index (Unaudited)
Average Annual Total Return | ||||||||||||||||
Periods Ended March 31, 2022(1) | ||||||||||||||||
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception(2) | |||||||||||||
Brandes Emerging Markets Value Fund | ||||||||||||||||
Class A | -12.39 | % | -0.78 | % | 0.25 | % | 5.89% | |||||||||
Class A (with maximum sales charge) | -17.42 | % | -1.94 | % | -0.34 | % | 5.65% | |||||||||
Class C(3) | -12.70 | % | -1.43 | % | -0.34 | % | 5.08% | |||||||||
Class C (3) (with maximum sales charge) | -13.55 | % | -1.43 | % | -0.34 | % | 5.08% | |||||||||
Class I | -12.35 | % | -0.58 | % | 0.48 | % | 6.11% | |||||||||
Class R6(4) | -12.18 | % | -0.42 | % | 0.60 | % | 6.20% | |||||||||
MSCI Emerging Markets Index | -11.37 | % | 5.98 | % | 3.36 | % | 5.93% |
(1) | Prior to January 31, 2011, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes Emerging Markets Value Fund. The performance information shown for the Class I shares for periods before January 31, 2011 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to January 31, 2011 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance. |
20
Brandes Emerging Markets Value Fund
(2) | The inception date is August 20, 1996. |
(3) | Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date. |
(4) | Performance shown prior to July 11, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
21
Brandes International Small Cap Equity Fund
Dear Fellow Investor,
The net asset value of the Brandes International Small Cap Equity Fund (Class I Shares) fell 10.21% in the six months ended March 31, 2022. During the same period, the S&P Developed Ex-U.S. SmallCap Index fell 8.52%.
From a country perspective, holdings in Canada contributed meaningfully to performance, led by Dorel Industries and uranium companies Cameco Corporation and Sprott Physical Uranium Trust, which both benefited from a sharp increase in commodity prices.
Other notable positive contributors included South Korean gas utility Samchully,U.K. energy equipment company TechnipFMC, Mexican real estate investment trust Fibra Uno,and Japan Petroleum Exploration. Additionally, Italian defense company Leonardo SpA, a new addition in the first quarter, saw its share price increase on the prospect for higher defense spending in Europe.
European markets and emerging markets experienced the steepest decline in the period as geopolitical concerns related to the Russia/Ukraine conflict exacerbated inflationary trends and triggered worries about an economic slowdown. The Fund does not have any direct investments in Russia or Ukraine. While select holdings do have some indirect exposure to the countries, our overall portfolio revenue exposure is less than that of the S&P Developed ex-U.S. SmallCap Index.
Among the Fund’s largest detractors were several of our consumer and construction materials-related holdings, led by French catering services provider Elior Group and U.K. retailer Marks & Spencer, as well as cement companies Buzzi Unicem (Italy), Cemex (Mexico) and Vicat (France). Elior suspended its earnings guidance in January, citing a lack of visibility regarding the impact of the strict health protocols implemented to stifle the Omicron COVID variant. In early March, the company’s chief executive officer unexpectedly resigned. We believe that these challenges are temporary in nature and that the company warrants a continued inclusion in the Fund’s portfolio.
Other detractors included industrial holdings Embraer and De La Rue,German health care equipment supplier Draegerwerk, and Hong Kong-based payment services provider PAX Global Technology Limited.
Brazilian jet manufacturer Embraer gave back some of its strong performance over the past 18 months as it declined on lowered short-term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.
Select Portfolio Activity
The small-cap investment committee initiated positions in Hong Kong-based YueYuen, U.K. defense technology company QinetiQ, Ireland-based food products company Greencore Group, Japanese entertainment business DeNA,
22 | Past Performance is not a guarantee of future results. |
Brandes International Small Cap Equity Fund
U.K.-domiciled energy equipment company TechnipFMC, as well as the aforementioned Leonardo SpA.
Founded in 1988, Yue Yuen is the world’s largest manufacturer of branded athletic and casual footwear, producing nearly 250 million pairs of shoes in the fiscal year 2020 as an original equipment manufacturer for major brands such as Nike and Adidas, which together account for almost two-thirds of Yue Yuen’s sales, as well as Reebok, Asics, New Balance, and Puma. The company also has a majority stake in sportswear (athletic shoes and apparel) retailer Pou Sheng.
We see significant value potential in Yue Yuen. While volume growth has been muted in recent years as key customers have been working to reduce inventories and demanding shorter lead times, Yue Yuen has maintained a strong pricing power which is attributable to increased popularity of athletic shoes and a style shift toward more complex designs. Provided COVID-related conditions continue to improve, the industry is expected to grow at mid-single digits. Furthermore, we believe Yue Yuen is well positioned to expand its operating margins, which have been negatively affected by forced factory closures and occupancy reductions (for social distancing). Although the timing of the recovery is impossible to predict, it is our opinion that Yue Yuen’s current share price is overly discounted, providing us with what we consider a compelling entry point for an investment.
TechnipFMC (FTI) is the product of a 2016 merger between Technip, a leading engineering, procurement and construction company (EPC), and FMC, a leading provider of subsea production and processing equipment. The rationale of the merger was to combine equipment manufacturing with engineering and construction of subsea oilfields. Earlier this year, the company completed a long-planned separation of its onshore EPC business, making it purely focused on offshore oilfield exploration and development.
With an over 40% market share, FTI is the industry leader in subsea systems, highly engineered capital goods that reside on the seabed producing and processing hydrocarbons. The subsea industry has been in a multi-year slump following a decade of high oil prices. Capital expenditures (capex) among upstream oil and gas companies (FTI’s customer base) reached highs in 2014 and are estimated to be less than half of the peak levels in 2021. In addition to the collapse in capex, there has been a shift of investment to unconventional opportunities on land. The overall effect has been a sustained period of low manufacturing utilization, high price competition and distressed profitability for the subsea industry.
While a return to peak capex is unlikely, we believe a gradual increase in offshore activity is in the cards given two main factors: 1) global demand growth has been stable or growing; and 2) poor returns from onshore unconventional production over the past decade may be an indication that more capital should flow elsewhere (or oil prices need to be substantially higher). In our view, FTI is well positioned to benefit from the potentially improved offshore activity considering its industry-leading position in subsea equipment and engineering, as well as its fully integrated business model.
23
Brandes International Small Cap Equity Fund
Furthermore, we appreciate that FTI has made several investments to capitalize on its offshore development expertise and seek to benefit from a global energy transition, including subsea carbon transportation and storage, floating renewable power generation (offshore wind) and hydrogen production, storage and re-electrification.
During the period, the investment committee exited several positions in Spain, namely Atresmedia, Bankinter, CaixaBank and Linea Directa Aseguradora. Other full sells were Canadian Corby Spirit and Wine and insurer E-L Financial, utility First Philippine Holdings, and South Korea-based Lotte Confectionary.
Looking Forward
Value stocks (as measured by the S&P Developed ex-U.S. SmallCap Value Index) outperformed the broader market (S&P Developed ex-U.S. SmallCap Index) noticeably at the start of the year when rising inflation and interest rates caused the valuations of many high-flying growth companies to compress. Geopolitical developments in the second half of the quarter (i.e., the Russia/Ukraine conflict) have exacerbated inflationary trends and triggered concerns about an economic slowdown, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).
In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially given the historically wide valuation discounts at which value stocks traded relative to growth (S&P Developed ex-U.S. SmallCap Growth Index). However, with inflation persisting and economic growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While it is true that weaker growth may present a headwind for value stocks (all else being equal), it is not always the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. These periods shared common attributes that catalyzed the favorable environment for value: they were preceded by a period of elevated general market valuations and historically wide discount levels for value relative to growth.
In terms of portfolio positioning, there were no wholesale changes in the period. From a sector standpoint, the Fund held its largest weights in industrials (although underweight relative to the benchmark), consumer staples and financials. While returns for the industrials sector were negative in the quarter, the Fund’s weighting to industrials increased slightly with the additions of defense companies Leonardo SpA and QinetiQ. The Fund maintained underweights in technology and materials, and continued to have significant exposure to Japan, the U.K., and emerging markets.
We remain excited about the prospects of the Brandes International Small Cap Equity Fund and appreciate your continued trust.
24
Brandes International Small Cap Equity Fund
Sincerely yours,
The Brandes Small-Cap Investment Committee
Brandes Investment Trust
Dividend Yield: Dividends per share divided by price per share.
Nifty Fifty: A popular name in the 1960s and 70s for a group of the largest US companies.
Operating Margin: Operating income divided by net sales; used to measure a company’s operating efficiency.
Stagflation: Combination of slow economic growth and high inflation.
Diversification does not assure a profit or protect against a loss in a declining market.
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The S&P Developed Ex-U.S. SmallCap Index with net dividends measures the equity performance of small-capitalization companies from developed markets excluding the United States.
25
Brandes International Small Cap Equity Fund
The S&P Developed Ex U.S. SmallCap Value Index with net dividends measures the equity performance of small cap companies in developed markets excluding the United States, which are classified as value stocks by book value-to-price, sales-to-price, cash flow-to-price, and dividend yield.
The S&P Developed Ex-U.S. SmallCap Growth Index measures the equity performance of small cap companies in developed markets excluding the United States, which are classified as growth stocks by 5-year historical earnings per share growth, 5-year historical sales per share growth, and 5-year average annual internal growth rate.
One cannot invest directly in an index.
The Brandes International Small Cap Equity Fund is distributed by ALPS Distributors, Inc.
26
Brandes International Small Cap Equity Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes International Small Cap Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the S&P Developed Ex-U.S. SmallCap Index for the same period.
Value of $100,000 Investment vs S&P Developed
Ex-U.S. SmallCap Index (Unaudited)
Average Annual Total Return | ||||||||||||||||
Periods Ended March 31, 2022(1) | ||||||||||||||||
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception(2) | |||||||||||||
Brandes International Small Cap Equity Fund | ||||||||||||||||
Class A | -1.28 | % | 0.80 | % | 5.66 | % | 8.19% | |||||||||
Class A (with maximum sales charge) | -6.95 | % | -0.38 | % | 5.04 | % | 7.94% | |||||||||
Class C(3) | -1.52 | % | 0.15 | % | 5.05 | % | 7.40% | |||||||||
Class C (3) (with maximum sales charge) | -2.45 | % | 0.15 | % | 5.05 | % | 7.40% | |||||||||
Class I | -1.14 | % | 1.00 | % | 5.89 | % | 8.43% | |||||||||
Class R6(4) | -1.06 | % | 1.10 | % | 5.98 | % | 8.50% | |||||||||
S&P Developed Ex-U.S. SmallCap Index | -3.72 | % | 7.09 | % | 7.58 | % | 6.71% |
(1) | Prior to February 1, 2012, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes International Small Cap Fund. The performance information shown for the Class I shares for periods before February 1, 2012 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to February 1, 2012 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and was not subject to certain investment |
27 |
Brandes International Small Cap Equity Fund
limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance. |
(2) | The inception date is August 19, 1996. |
(3) | Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date. |
(4) | Performance shown prior to June 27, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
28
Dear Fellow Investor,
The net asset value of the Brandes Small Cap Value Fund (Class I Shares) rose 2.58% in the six months ended March 31, 2022. During the same period, the Russell 2000 Index fell 5.55%.
Given the recent sharp increase in commodity prices, the strongest performers were companies that directly benefitted from that increase. Oil- and gas-related companies performed exceptionally well, led by Dril-Quip, Helmerich & Payne, Chesapeake Energy and Halliburton. Uranium company Sprott Physical Uranium Trust also performed well.
Other strong contributors included Canadian household durables manufacturer Dorel Industries, machinery business Flowserve, professional services companies Kelly Services and Science Applications International (SAIC).
As geopolitical concerns increased in lock step with worries about inflation and the potential for “stagflation,” the broad U.S. small cap market (as measured by the Russell 2000 Index) declined. The impact was primarily led by technology companies because their valuations tend to be materially influenced by rising interest rates. For the Fund, major detractors included communications equipment companies Ribbon Communications and NETGEAR.
Other detractors included holdings in the industrials sector, namely aircraft manufacturer Embraer, vacuum and heat transfer equipment manufacturer Graham Corporation and Orion Group. Embraer saw its stock decline on its reduced short-term margin guidance. However, over the longer term, we believe the market is missing the ongoing cycle recovery across the company’s portfolio. While the market is heavily focused on short-term, one-off item margin distortions, Embraer’s order backlog has already risen above pre-COVID levels. The company is trading at a wide discount to our estimate of its long-term intrinsic value, and we added to our position.
Select Portfolio Activity
We sold our stakes in Varex Imaging Corporation, Utah Medical Products, Halliburton and Helmerich & Payne.
During the period, the small-cap investment committee initiated positions in Kelly Services, Science Applications International Corporation, office furniture company Kimball International, Ribbon Communications, commercial services & supplies provider Steelcase, and machinery business Flowserve. We also took advantage of share price weakness and added to our investments in consumer products company Edgewell Personal Care, computer networking company NETGEAR.
Founded in 1946, Kelly Services has evolved from a U.S.-based company concentrating primarily on traditional office staffing into a global workforce solutions provider. Kelly Services is the fourth-largest staffing company in the U.S. Most of its operations are still derived from lower-end office services, education, contact center, light industrial and
Past Performance is not a guarantee of future results. | 29 |
Brandes Small Cap Value Fund
electronic assembly staffing. It has also been attempting to expand into more complex areas and claims to have a unique talent supply chain management approach to help many of the world’s largest companies plan for and manage their workforces. Those areas involve outsourcing, consulting, recruitment, career transition and vendor management services.
Kelly Services had begun to recover from the unemployment peak (revenues and unemployment have typically been inversely related) caused by COVID-19 and had proceeded with its plan to expand into higher-margin, specialty businesses. However, the share price was down in the second half of 2021 and early 2022, likely due to COVID spikes derailing the path to a more normal business environment. We believe this offered an opportunity to purchase one of the top players in the professional services industry trading at a discount to tangible book value with a strong net cash balance sheet, enabling it to weather economic volatility.
Science Applications International Corporation is the fifth-largest government IT services contractor and operates a capital-light business model that has generated strong free cash flow. We believe that SAIC trades at an attractive valuation and should continue to be a defensive business with at least low single-digit organic growth driven by greater alignment with budget priorities of the defense and civilian agencies. Continued solid free cash flow generation would allow it to deleverage its balance sheet over the next few years, and it also has a track record of returning some excess free cash flow to shareholders via buybacks and dividends.
Under the name of a predecessor entity, Flowserve was founded in 1912. Today, the firm develops and manufactures precision-engineered equipment integral to the movement, control and protection of the flow of materials in critical processes and also provides aftermarket services for these complex systems. Flowserve has underperformed during the past year due to the cyclical aspects of its business; recent results were also hampered by supply chain issues affecting many businesses around the world. However, we believe these challenges are temporary and have created a buying opportunity.
Looking Forward
Value stocks (as measured by the Russell 2000 Value Index) outperformed the broader market (Russell 2000 Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends and increased worries about a slowdown in growth, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).
In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially against the preferable valuation
30
Brandes Small Cap Value Fund
discounts value stocks traded at relative to growth. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. Weaker growth may be a headwind for value stocks all else being equal, but that has rarely been the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. The common factors of these two periods resulting in highly favorable value environments were: markets were in a state of elevated valuations and the spread between value and growth was at historical levels.
From a positioning standpoint, our largest sector overweights were in industrials and energy, and we continued to find value in health care companies, although we are underweight relative to the Russell 2000 Index. We are markedly underweight companies in the financials, real estate, information technology and consumer discretionary sectors.
In our opinion, the differences between the Brandes Small Cap Value Fund and the broader market continue to make it an attractive complement to other small-cap offerings. The Fund exhibits lower valuations than the Russell 2000 Index. We believe our holdings have strong balance sheets, compelling growth prospects and are able to generate durable free cash flow. Compared with the Russell 2000 Value Index, the Fund has significantly less exposure to financials and real estate.
As always, we appreciate the trust you have placed in us.
Sincerely yours,
The Brandes Small-Cap Investment Committee
Brandes Investment Trust
Book Value: Assets minus liabilities. Also known as shareholders’ equity.
Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.
Free Cash Flow: Total cash flow from operations less capital expenditures.
Forward Price/Earnings: Price per share divided by earnings per share expected over the next 12 months.
Net Cash: Total cash minus total debt.
Nifty Fifty: A popular name in the 1960s and ‘70s for a group of the largest U.S. companies.
Stagflation: Combination of slow economic growth and high inflation.
Tangible Book Value: Book value minus intangible assets (e.g., goodwill).
Diversification does not assure a profit or protect against a loss in a declining market.
31
Brandes Small Cap Value Fund
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The Russell 2000 Index with gross dividends measures the performance of the small cap segment of the U.S. equity universe.
The Russell 2000 Value Index with gross dividends measures performance of the small cap value segment of the U.S. equity universe. Securities are categorized as growth or value based on their relative book-to-price ratios, historical sales growth, and expected earnings growth.
One cannot invest directly in an index.
The Brandes Small Cap Value Fund is distributed by ALPS Distributors, Inc.
32
Brandes Small Cap Value Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes Small Cap Value Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the Russell 2000 Total Return Index and Russell 2000 Value Total Return Index for the same period.
Value of $100,000 Investment vs Russell 1000 Total
Return Index & Russell 1000 Value Total
Return Index(Unaudited)
Average Annual Total Return Periods Ended March 31, 2022(2) | ||||||||||||||||
One Year | Five Years | Ten Years | Since Inception(1) | |||||||||||||
Brandes Small Cap Value Fund | ||||||||||||||||
Class A | 9.23 | % | 10.03 | % | 12.53 | % | 7.71% | |||||||||
Class A (with maximum sales charge) | 2.92 | % | 8.75 | % | 11.88 | % | 7.45% | |||||||||
Class I | 9.58 | % | 10.36 | % | 12.82 | % | 7.99% | |||||||||
Class R6(3) | 10.17 | % | 9.10 | % | 12.18 | % | 7.73% | |||||||||
Russell 2000 Total Return Index | -5.79 | % | 9.74 | % | 11.04 | % | 7.79% | |||||||||
Russell 2000 Value Total Return Index | 3.32 | % | 8.57 | % | 10.54 | % | 8.52% |
(1) | The inception date is September 30, 1997. |
(2) | Prior to January 2, 2018, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes Small Cap Value Fund. The performance information shown for the Class I shares for periods before January 2, 2018 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to January 2, 2018 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. |
(3) | Performance shown prior to January 2, 2018 for Class R6 shares reflects the performance of Class I shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) |
33
Brandes Small Cap Value Fund
and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
34
Dear Fellow Investor,
The net asset value of the Brandes U.S. Value Fund (Class I Shares) gained 6.14% in the six months ended March 31, 2022. During the same period, the Russell 1000 Value Index gained 5.65% and the Russell 1000 Index increased 2.97%.
Rising energy prices benefited our oil-related companies, including integrated oil firm Chevron and oil field services company Halliburton. Rising commodity prices also aided our materials investments, namely Corteva and Westlake.
Other contributors included pharmaceutical distributor McKesson, advertising agency Omnicom, and aerospace and defense company General Dynamics.
As geopolitical concerns increased in lock step with worries about inflation and the potential for “stagflation” during the first quarter, the broad U.S. market (as measured by the Russell 1000 Index) declined. During the six months ending March 31, 2022, the Fund’s largest detractors were holdings in the banking, household durables and consumer finance industries. Citigroup, flooring company Mohawk Industries and OneMain Holdings were among the worst performers.
Among the Fund’s holdings, Mohawk has the highest exposure to Russia at about 4% of total sales, although the company does have some manufacturing facilities in Eastern European countries such as Poland. As a flooring manufacturer and distributor, Mohawk has experienced material cost inflation which could pressure short-term margins, but over the longer term we believe its advantaged position should enable it to manage these costs better than many competitors. After its recent decline, the stock trades at a single digit multiple of earnings, which we believe allows for an attractive return over time.
While household durables company Taylor Morrison Home performed well during the previous year’s strong housing market, the shares have pulled back recently amid anxiety about the consequences of rising mortgage rates. However, at the company’s current valuation of only 3x forward earnings, and given the lack of new housing built over the past decade, we believe these factors are fully reflected in Taylor Morrison’s share price.
Select Portfolio Activity
The investment committee initiated positions in semiconductor firm Qorvo, insurance broker and benefits firm Willis Towers Watson (WTW) and industrial equipment firm Gates Industrial.
Qorvo was formed in 2015 via the merger of TriQuint Semiconductor and RF Micro Devices. The company is now the second-largest independent radio frequency (RF) front-end component supplier and offers products that are critical for transmitting radio signals to, and receiving them from, a smartphone’s cellular modem.
Most of Qorvo’s revenue comes from the smartphone market. It has a strong competitive position and should continue to benefit from the transition to 5G-enabled
Past Performance is not a guarantee of future results. | 35 |
Brandes U.S. Value Fund
phones, which include significantly more RF components per phone (3G phones average $8 of RF components versus 5G at $25). Additionally, the company earns almost one-third of its revenue outside of smartphone end-markets, and will likely derive a benefit from the growing Internet of Things (IoT) applications for internet-connected appliances and devices.
Qorvo’s shares have declined due to concerns about supply chain constraints and a slowdown in the smartphone market, especially in China which accounts for the largest share of Qorvo’s revenue. Over the longer term, we believe that Qorvo’s supply chain constraints will be resolved and that it offers an appealing way to benefit from the growth of RF content per 5G phone, as well as the proliferation of internet-connected devices globally. At a current valuation of less than 10x our estimate of normalized earnings, we feel the company offers a desirable risk/reward tradeoff.
Willis Towers Watson (WTW) is the third-largest retail insurance broker in the United States. The company offers insurance brokerage, actuarial support, consulting, pension plan design, risk broking and benefits outsourcing. WTW’s share price declined over the past year when an intended acquisition by Aon fell through for anti-trust reasons. WTW is now working to turn around its standalone business, with a new management team and a reconstituted board of directors.
Overall, we believe WTW is an appealing business with good cash flow generation and a strong balance sheet that trades at an attractive valuation level, especially as it works on raising its margins closer to those of its insurance broker peers. Additionally, several activist investors have bought WTW shares to push for its turnaround, and WTW has announced it will be returning a significant amount of excess cash to shareholders over the next 18 months, equal to about 15% of its market cap.
We also initiated a position in Gates Industrial, a global manufacturer of power transmission and fluid power solutions used across a variety of industrial applications. The company is the market leader in belts, hoses, hydraulics and engine systems used by automobile manufacturers, heavy duty trucks, construction and mining, as well as industrial and oil and gas end markets. Demand for its products is largely driven by replacement demand and the cost of product failure is high relative to the component cost, giving Gates pricing power that would be beneficial in an inflationary environment.
Gates was fully owned by private equity firm Blackstone until it went public in 2018, and Blackstone still owns roughly two-thirds of the company today. Blackstone’s partial ownership divestment likely created some overhang on Gates’ stock price, contributing to its recent underperformance. Additionally, Gates has suffered from the well-publicized supply chain issues which have kept the company from meeting end-demand. We feel Gates now trades at an attractive valuation and should benefit from an improvement in economic and industrial activity, as well as the resolution of supply-chain constraints.
36
Brandes U.S. Value Fund
During the period, the investment committee divested the Fund’s holdings in biotechnology firm Gilead Sciences and real estate investment trust Mid-America Apartment Communities (MAA). Real estate markets and rents have continued to see strong price appreciation, which has significantly benefited MAA. We divested MAA when its share price reached our estimate of its intrinsic value. Additionally, we sold long-time holding in beverage and snack company PepsiCo., the world’s second-largest food and beverage company, as the stock price exceeded our estimate of intrinsic value.
Looking Forward
Value stocks (as measured by the Russell 1000 Value Index) outperformed the broader market (Russell 1000 Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends, increased worries about a slowdown in growth, and raised the potential for a “stagflationary” environment (low economic growth and elevated inflation).
Heading into 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth coupled with low and declining interest rates) would benefit value stocks—especially against the valuation discounts value stocks traded at relative to growth stocks. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While weaker growth may be a headwind for value stocks all else being equal, it’s rarely “all else equal.” In fact, two of the best periods for value stocks relative to growth stocks were during the 1970s following the “Nifty Fifty” era (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s.
The common factors leading up to these two periods of significant value outperformance were a) U.S. stocks in general were trading at very elevated valuations, and b) the valuation spreads between value and growth stocks were at historically elevated levels – both of which we are experiencing today.
From an industry/sector standpoint, the Fund’s largest relative overweight positions remained in the economically sensitive financials sector, the more defensive health care sector and various areas within the technology sector that are exposed to secular growth at what we consider to be reasonable valuations.
While we feel our health care holdings generally exhibit defensive and high-quality characteristics, many also show the potential to benefit from the resumption of elective procedures that may have been delayed during the pandemic. With regard to our financial holdings, in addition to the tailwind from loan growth and capital returns, many of them should also benefit from the increase in interest rates that we are now starting to experience. Finally, our overweight to the technology sector includes several
37
Brandes U.S. Value Fund
companies with exposure to secular megatrends like artificial intelligence, fintech, and 5G (companies such as Micron, Fiserv and Qorvo) at what we consider to be very reasonable valuations.
Our most significant underweights are in consumer staples, utilities and real estate, which appear generally expensive to us other than a few specific opportunities.
We believe the differences between the Brandes U.S. Value Fund and the broader market continue to make the Fund an attractive complement to more index-like or growth-oriented alternatives.
Looking ahead to this year and beyond, we remain optimistic about the Fund’s prospects given what we consider to be an attractive environment for value investing, and the Fund’s historic tendency to outperform the Russell 1000 Value Index during periods of value outperformance (Russell 1000 Value vs. Russell 1000).
As always, we thank you for the trust you have placed in us.
Sincerely yours,
The Brandes Global Large-Cap Investment Committee
Brandes Investment Trust
Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.
Forward Price/Earnings: Price per share divided by earnings per share expected over the next 12 months.
Market Capitalization (Cap): The number of common shares outstanding multiplied by the current market price per common share.
Nifty Fifty: A popular term in the 1960s and ‘70s for a group of the largest U.S. companies.
Normalized Earnings: Earnings adjusted based on economic cycles.
Price/Earnings: Price per share divided by earnings per share.
Stagflation: Combination of slow economic growth and high inflation.
Diversification does not assure a profit or protect against a loss in a declining market.
Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.
38
Brandes U.S. Value Fund
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The Russell 1000 Value Index with gross dividends measures performance of the large cap segment of the U.S. equity universe. Securities are categorized as growth or value based on their relative book-to-price ratios, historical sales growth, and expected earnings growth.
The Russell 1000 Index with gross dividends measures performance of the large cap segment of the U.S. equity universe.
One cannot invest directly in an index.
The Brandes U.S. Value Fund is distributed by ALPS Distributors, Inc.
39
Brandes U.S. Value Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes U.S. Value Fund – Class I from October 1, 2021 to March 31, 2022 with the value of such an investment in the Russell 1000 Total Return Index and Russell 1000 Value Total Return Index for the same period.
Value of $100,000 Investment vs Russell 1000 Total
Return Index & Russell 1000 Value Total
Return Index(Unaudited)
Average Annual Total Return Periods Ended March 31, 2022 | ||||||||
YTD | Since InceptionR | |||||||
Brandes U.S. Value Fund | ||||||||
Class A | -0.10% | 6.35% | ||||||
Class A (with maximum sales charge) | -5.87% | 0.24% | ||||||
Class I | -0.11% | 6.14% | ||||||
Class R6 | -0.28% | 6.16% | ||||||
Russell 1000 Total Return | -5.13% | 2.97% | ||||||
Russell 1000 Value Total Return | -0.74% | 5.65% |
R | Commencement of operations on October 1, 2021. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Brandes
40
Brandes U.S. Value Fund
Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Sector Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
The sector classifications represented in the graph above are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC.
41
Brandes Core Plus Fixed Income Fund
Dear Fellow Investor,
In the six months ended March 31, 2022, the Brandes Core Plus Fixed Income Fund (Class I Shares) declined 5.27%, while its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, declined 5.92%.
Boxing great Mike Tyson once said: “Everyone has a plan until they get punched in the mouth.” The swift repricing of fixed income markets in the first quarter 2022, the likes which we have not seen since the 1970s, appeared to knock the Federal Reserve (Fed) and many investors on their heels.
During this time, the Fed was forced to quickly pivot from their plan of slowly and methodically winding down the most accommodative monetary policy in their history, to aggressively updating their forecasts for future rate hikes and balance sheet reductions.
In mid-December 2021 the Fed released its closely watched “dot plot”1, which pegged the median forecast for the fed funds rate at 0.81% for year-end 2022 and 1.65% for year-end 2023. The updated March dot plot pegged the median fed funds rate at 2.05% for year-end 2022 and 2.81% for year-end 2023. This represents an abrupt upward shift in just three months and is particularly interesting in the context of the Fed’s view that the long-term normalized fed funds rate is 2.5%. The updated dot plot forecasts imply that the Fed believes that they will have to aggressively tighten above the projected long-term normalized rate to tame inflation. That is a considerable about-face from the transitory narrative that dominated their thinking for the better part of the past two years.
Market expectations have abruptly changed as well. During the fourth quarter 2021 we observed the disconnect between the Fed’s forward interest rate guidance and market expectations, noting that market expectations for the terminal fed funds rate were much lower than Fed guidance. As the market has reset future expectations guided by the newly hawkish Fed, rates have swiftly moved higher to levels not seen in several years.
After two years of a global health pandemic, during recent months the world has had to grapple with the worst outbreak of European military violence since World War II. Navigating monetary policy through this turbulent time has undoubtedly been a difficult task, but history will likely show that the Fed has simply waited too long to begin policy normalization and hence has run the risk of falling well behind the curve on inflation. Many commentators (including ourselves) have made this accusation, and we finally feel like we are no longer the old man yelling at the clouds when it comes to expressing concerns about inflation.
We have previously accused the Fed of being guilty of policy inertia and we have hoped that inertia would not lead to a policy error. It increasingly looks like the Fed has indeed made a policy error with its continuation of unprecedented stimulus well after the initial shock of the pandemic receded. As a result, taming inflation while achieving a
42 | Past Performance is not a guarantee of future results. |
Brandes Core Plus Fixed Income Fund
soft landing for the economy has become decidedly more difficult and could lead to additional market volatility.
During the trailing six-month period ending March 31, 2022, holdings in energy (Range Resources & Occidental Petroleum), services (Prime Security Services) and healthcare (Tenet Healthcare) aided returns.
Select holdings in banking (U.S. Bank & Goldman Sachs) and telecom (Telecom Italia) detracted from returns.
The fund’s underweight to agency mortgage-backed securities (MBS) aided performance during the period.
Term-structure positioning was a positive factor in performance as interest rates rose sharply. The fund was positioned near the bottom of its duration-controlled band during the period, helping to mitigate the impact of rising rates on a relative basis.
Select Portfolio Activity
During the period, the Fund added new positions in Mauser Packaging (7.25% coupon, maturing 4/15/25, rated Caa3/CCC), Charles Schwab Inc. (5.375% coupon, perpetual, callable 6/1/25, rated Baa2/BBB), Citigroup Inc. (4.40% coupon, maturing 6/10/25, rated Baa2/BBB), Methanex Corp (5.125% coupon, maturing 10/15/27, rated Ba1/BB), Coty Inc. secured debt (5.00% coupon, maturing 4/15/26, rated B1/B+) and American Transmission System (2.65% coupon, maturing 1/15/32, rated A3/BBB).
We believe that the Charles Schwab bond that we purchased is a good example of a situation where the distinctive structure of the security presents an attractive value opportunity. This bond is a junior subordinated security – it ranks lower in the company’s capital structure. It pays a fixed-rate coupon until June 2025. If the bond is not called in June 2025, it will become a perpetual security, and its coupon will revert to a floating rate based on the 5-year U.S. Treasury rate plus 4.97% - with a quarterly reset. The reset rate will be at a yield spread that is similar to where low-quality high yield bonds generally trade.
The distinctive feature of this bond is that if Charles Schwab chooses not to call the security in June 2025, the company does not have the option to call it again for an additional five years. At today’s interest rates the coupon would reset to nearly 7%. Given the relatively high cost of a coupon reset and the limited flexibility offered to the company for future calls, we believe that this bond is best treated as a bullet security with a 3-year maturity.
Charles Schwab issued this bond in April 2020 during the early stages of the pandemic, which we believe is the likely explanation of why the bond’s structure is not representative of the strong underlying credit quality of the company. As a result, this represents an attractive value opportunity to us.
43
Brandes Core Plus Fixed Income Fund
Coty Inc. is a world leader in beauty with 75 brands and is home to well-known brands such as CoverGirl, Clairol and Max Factor. The company experienced turnover in the chief executive officer’s (CEO’s) chair with four different CEOs in 2020. Additionally, the pandemic affected revenues as beauty sales suffered in a world dominated by Zoom calls.
However, Coty is in the early stages of an operational turnaround centered on three key initiatives: 1) shifting the mix toward prestige brands with a focus on clean and green—i.e., CoverGirl Clean Fresh vegan makeup; 2) stabilizing its mass market beauty portfolio; and 3) reducing leverage through applying strong operational cash flows to paying down debt and divesting non-core brands.
As the pandemic recedes and more people can return to the office, travel, and engage in leisure activities, we believe Coty is well positioned to benefit from positive industry trends, as well as specific steps the company has taken to strengthen its balance sheet and product portfolio.
American Transmission System is a regulated operating company of First Energy. We believe the company’s bonds offer an attractive higher-quality position within the First Energy capital structure.
The Fund also added to existing positions in MicroStrategy, Netflix, Allison Transmission and Telecom Italia.
The Fund exited our full position in Occidental Petroleum (3.50% coupon, maturing 6/15/25, rated Ba1/BB+), experienced a full call in Range Resources (9.25% coupon, maturing 2/1/26, rated B1/BB-), and saw maturities in Microsoft Corp. and ExxonMobil.
Outlook
From a total return perspective, the performance of virtually the entire fixed income universe was quite painful during the first quarter of 2022. Interest rates moved up swiftly from a very low base, leading to negative returns across the fixed income spectrum.
As the second quarter of 2022 begins, higher yields in the market and in the Fund can help cushion some of the impact if we are in the midst of secular change to a higher rate environment. With any investment, and in particular fixed income, time horizon is important. In the short-term, interest rate increases can cause negative total returns. However, over a longer time horizon, higher rates should allow a diversified portfolio to generate a higher level of income.
For a considerable period now, we have attempted to tilt the Brandes Core Plus Fixed Income Fund into what we believe is a defensive posture in order to mitigate some of the detrimental impact of higher interest rates and wider yield spreads. The Fund continues to favor shorter-maturity corporate bonds and those that we believe exhibit strong, tangible asset coverage. We are managing duration toward the shorter end of
44
Brandes Core Plus Fixed Income Fund
our duration-controlled range. We have a substantial allocation to U.S. Treasuries and if recent market uncertainty and volatility continues to cause credit fundamentals to become mispriced relative to our estimates of intrinsic value, then we will look to redeploy some of those Treasury holdings thoughtfully and effectively to take advantage of opportunities.
We remain underweight Agency mortgage-backed securities. In March, the Fed finally wrapped up their temporary support for a market where they have been making outright purchases since 2008. We are cautious on this market, given that the Fed owns 37% of the universe and has been absorbing nearly 50% of supply since March 2020.2
While the amount of Agency mortgage-backed securities supply could slow if interest rates continue to move higher, it remains to be seen how the market will respond to the withdrawal of explicit central bank support.
As we move forward, we believe prudence dictates that we continue our search for value at the margins while continuing to tilt the Fund to what we believe is a relatively defensive posture.
As always, thank you for your business and continued trust.
Sincerely yours,
The Brandes Fixed Income Investment Committee
Brandes Investment Trust
1 Bloomberg, Federal Reserve, 12/15/21, and 3/17/22
2 Mortgage QE 2020-22: A Look Back and Ahead, Bloomberg Intelligence, 3/14/22
Agency mortgage-backed securities (MBS): An MBS issued by one of three quasi-governmental agencies: The Government National Mortgage Association (GNMA or Ginnie Mae), the Federal National Mortgage Association (FNMA or Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). A MBS is an investment similar to a bond that is made up of a bundle of home loans bought from the banks that issued them.
Asset Coverage: Measures how well a company can repay its debts by selling or liquidating its assets.
Bullet security: a debt investment whose entire principal value is paid in one lump sum on its maturity date, rather than amortized over its lifetime.
Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.
Coupon: The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
Dot Plot: Data points that are plotted on a graph and is used by the Federal Reserve to show its projected interest-rate outlook. Source: Investopedia
45
Brandes Core Plus Fixed Income Fund
Duration: The weighted maturity of a fixed-income investment’s cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.
Mortgage-Backed Security: A type of asset-backed security which is secured by a mortgage or collection of mortgages.
Secured Debt: Debt that is backed by collateral to reduce the risk associated with lending. Source: Investopedia
Total Return: Income plus capital appreciation.
Yield: Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.
Yield Spread: The net difference between two interest-bearing instruments of varying maturities, credit ratings, issuer or risk level.
Short-term debt refers to fixed income securities set to mature in 1 to 5 years from the issue or purchase date. Long-term debt refers to fixed income securities set to mature more than 10 years from the issue or purchase date.
Diversification does not assure a profit or protect against a loss in a declining market.
Because the values of the fund’s investments will fluctuate with market conditions, so will the value of your investment in the fund. You could lose money on your investment in the fund, or the fund could underperform other investments. The values of the fund’s investments fluctuate in response to the activities of individual companies and general bond market and economic conditions. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.
As with most fixed income funds, the income on and value of your shares in the fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the fund owns usually decline. When interest rates fall, the prices of these securities usually increase. Generally, the longer the fund’s average portfolio maturity and the lower the average quality of its portfolio, the greater the price fluctuation. The price of any security owned by the fund may also fall in response to events affecting the issuer of the security, such as its ability to continue to make principal and interest payments or its credit rating. Below investment grade debt securities are speculative and involve a greater risk of default and price change due to changes in the issuer’s creditworthiness than higher grade debt. The market prices of these debt securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in periods of general economic difficulty.
Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund securities except for those labeled “Not Rated” and “Other” have been
46
Brandes Core Plus Fixed Income Fund
rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization. All Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change.
Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change.
Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.
Must be preceded or accompanied by a prospectus.
Index Guide
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. This index is a total return index which reflects the price changes and interest of each bond in the index.
One cannot invest directly in an index.
The Brandes Core Plus Fixed Income Fund is distributed by ALPS Distributors, Inc.
47
Brandes Core Plus Fixed Income Fund
The following chart compares the value of a hypothetical $100,000 investment in the Brandes Core Plus Fixed Income Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the Bloomberg U.S. Aggregate Bond Index for the same period.
Value of $100,000 Investment vs Bloomberg
U.S. Aggregate Bond Index (Unaudited)
Average Annual Total Return | ||||||||||||||||
Periods Ended March 31, 2022 | ||||||||||||||||
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception(1) | |||||||||||||
Brandes Core Plus Fixed Income Fund | ||||||||||||||||
Class A(2) | -3.63 | % | 1.54 | % | 2.20 | % | 2.95% | |||||||||
Class A (2) (with maximum sales charge) | -7.23 | % | 0.76 | % | 1.82 | % | 2.67% | |||||||||
Class I | -3.39 | % | 1.82 | % | 2.52 | % | 3.25% | |||||||||
Class R6(2) | -2.21 | % | 2.68 | % | 2.98 | % | 3.59% | |||||||||
Bloomberg Barclays U.S. Aggregate Bond Index | -4.15 | % | 2.14 | % | 2.24 | % | 3.39% |
(1) | The inception date is December 28, 2007. |
(2) | Performance shown prior to January 31, 2013 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. Performance shown prior to October 10, 2017 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses. |
Performance data quoted represents past performance; past performance does not indicate 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 800-331-2979.
48
Brandes Core Plus Fixed Income Fund
The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of Fund shares. Brandes Investment Partners, L.P., the Advisor, has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.
Asset Allocation as a Percentage of Total Investments as of
March 31, 2022 (Unaudited)
49
Brandes Investment Trust
As a shareholder of a Fund, you incur ongoing costs, including investment advisory and administrative fees and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with ongoing costs of investing in other mutual funds.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2021 to March 31, 2022 (the “Period”).
Actual Expenses
This section provides information about actual account values and actual expenses. The “Ending Account Value” shown is derived from each Fund’s actual return. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Class A | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 964.60 | 1.11% | $5.44R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 1,007.50 | 1.25% | $6.26R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 887.30 | 1.31% | $6.16R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 897.40 | 1.35% | $6.39R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,024.60 | 1.15% | $5.80R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,063.50 | 0.95% | $4.86RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 945.80 | 0.50% | $2.43R | ||||||||||
Class C | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 961.00 | 1.86% | $9.09R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 1,003.60 | 2.00% | $9.99R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 883.80 | 2.06% | $9.67R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 893.80 | 2.10% | $9.92R |
50
Brandes Investment Trust
Class I | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 966.10 | 0.85% | $4.17R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 991.40 | 1.00% | $4.96R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 887.70 | 1.12% | $5.27R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 897.90 | 1.15% | $5.44R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,025.80 | 0.90% | $4.55R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,061.40 | 0.70% | $3.58RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 947.40 | 0.30% | $1.46R | ||||||||||
Class R6 | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 966.20 | 0.75% | $3.68R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 889.10 | 0.97% | $4.57R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 898.30 | 1.00% | $4.73R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,027.70 | 0.72% | $3.64R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,061.60 | 0.60% | $3.07RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 953.40 | 0.30% | $1.46R |
R | The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one half-year period). |
RR | The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half-year period). |
Hypothetical Example for Comparison Purposes
This section provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as brokerage commissions on purchase and sales of Fund shares. Therefore, the last column of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
51
Brandes Investment Trust
Class A | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 1,019.40 | 1.11% | $5.59R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 1,018.70 | 1.25% | $6.29R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 1,018.40 | 1.31% | $6.59R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 1,018.20 | 1.35% | $6.79R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,019.20 | 1.15% | $5.79R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,020.08 | 0.95% | $4.76RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 1,022.44 | 0.50% | $2.52R | ||||||||||
Class C | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 1,015.66 | 1.86% | $ 9.35R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 1,014.96 | 2.00% | $10.05R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 1,014.66 | 2.06% | $10.35R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 1,014.46 | 2.10% | $10.55R | ||||||||||
Class I | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 1,020.69 | 0.85% | $4.28R | ||||||||||
Global Equity Fund | $ | 1,000.00 | $ | 1,019.95 | 1.00% | $5.04R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 1,019.35 | 1.12% | $5.64R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 1,019.20 | 1.15% | $5.79R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,020.44 | 0.90% | $4.53R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,021.32 | 0.70% | $3.51RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 1,023.44 | 0.30% | $1.51R | ||||||||||
Class R6 | ||||||||||||||||
Fund | Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During the Period | ||||||||||||
International Equity Fund | $ | 1,000.00 | $ | 1,021.19 | 0.75% | $3.78R | ||||||||||
Emerging Markets Value Fund | $ | 1,000.00 | $ | 1,020.09 | 0.97% | $4.89R | ||||||||||
International Small Cap Fund | $ | 1,000.00 | $ | 1,019.95 | 1.00% | $5.04R | ||||||||||
Small Cap Value Fund | $ | 1,000.00 | $ | 1,021.34 | 0.72% | $3.63R | ||||||||||
U.S. Value Fund | $ | 1,000.00 | $ | 1,021.82 | 0.60% | $3.01RR | ||||||||||
Core Plus Fixed Income Fund | $ | 1,000.00 | $ | 1,023.44 | 0.30% | $1.51R |
R | The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one half-year period). |
52
Brandes Investment Trust
RR | The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half-year period). |
53
Brandes International Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 91.74% | ||||||||
Belgium – 1.49% | ||||||||
164,338 | Anheuser-Busch InBev SA/NV | $ | 9,825,459 | |||||
|
| |||||||
Brazil – 5.55% | ||||||||
3,441,600 | Ambev SA | 11,132,132 | ||||||
907,636 | Embraer SA Sponsored – ADR(a) | 11,445,290 | ||||||
1,250,800 | Telefonica Brasil SA | 14,105,177 | ||||||
|
| |||||||
36,682,599 | ||||||||
|
| |||||||
China – 2.49% | ||||||||
1,203,500 | Alibaba Group Holding Ltd.(a) | 16,423,819 | ||||||
|
| |||||||
France – 18.28% | ||||||||
182,548 | BNP Paribas SA | 10,431,645 | ||||||
852,822 | Carrefour SA | 18,559,174 | ||||||
260,289 | Danone SA | 14,379,145 | ||||||
1,096,002 | Engie SA | 14,409,141 | ||||||
1,082,792 | Orange SA | 12,821,665 | ||||||
238,165 | Publicis Groupe SA | 14,455,106 | ||||||
124,687 | Renault SA(a) | 3,259,326 | ||||||
159,487 | Sanofi | 16,305,896 | ||||||
144,167 | Societe BIC SA | 7,283,765 | ||||||
175,660 | TotalEnergies SE | 8,888,318 | ||||||
|
| |||||||
120,793,181 | ||||||||
|
| |||||||
Germany – 5.92% | ||||||||
339,841 | Fresenius & Co. KGaA | 12,477,763 | ||||||
219,159 | HeidelbergCement AG | 12,420,660 | ||||||
215,587 | Henkel AG & Co. KGaA | 14,229,747 | ||||||
|
| |||||||
39,128,170 | ||||||||
|
| |||||||
Hong Kong – 0.73% | ||||||||
11,842,000 | First Pacific Co. Ltd. | 4,784,616 | ||||||
|
| |||||||
Italy – 5.39% | ||||||||
450,604 | Buzzi Unicem SpA | 8,338,501 | ||||||
666,439 | Eni SpA | 9,718,831 | ||||||
5,256,037 | Intesa Sanpaolo SpA | 12,029,838 | ||||||
16,264,983 | Telecom Italia Rsp | 5,516,594 | ||||||
|
| |||||||
35,603,764 | ||||||||
|
| |||||||
Japan – 14.59% | ||||||||
199,800 | Dai Nippon Printing Co. Ltd. | 4,684,345 |
Shares | Value | |||||||
362,200 | Honda Motor Co. Ltd. | $ | 10,266,864 | |||||
2,132,500 | Mitsubishi UFJ Financial Group, Inc.(b) | 13,181,282 | ||||||
400,799 | MS&AD Insurance Group Holdings, Inc. | 13,013,117 | ||||||
1,200,000 | Nissan Motor Co. Ltd.(a) | 5,331,992 | ||||||
156,900 | SoftBank Group Corp. | 7,014,944 | ||||||
299,200 | Sumitomo Mitsui Trust Holdings, Inc. | 9,737,356 | ||||||
190,900 | Taisho Pharmaceutical Holdings Co. Ltd. | 8,861,886 | ||||||
853,683 | Takeda Pharmaceutical Co. Ltd. | 24,323,327 | ||||||
|
| |||||||
96,415,113 | ||||||||
|
| |||||||
Mexico – 4.10% | ||||||||
1,893,829 | Cemex SAB de CV Sponsored – ADR(a) | 10,018,355 | ||||||
14,564,736 | Fibra Uno Administracion SA de CV | 17,061,757 | ||||||
|
| |||||||
27,080,112 | ||||||||
|
| |||||||
Netherlands – 1.03% | ||||||||
1,283,691 | Aegon NV | 6,805,016 | ||||||
|
| |||||||
Russia – 0.20% | ||||||||
1,013,133 | Mobile TeleSystems Public Joint Stock Company(c) | 1,344,897 | ||||||
|
| |||||||
South Korea – 4.35% | ||||||||
150,417 | Hana Financial Group, Inc. | 5,982,561 | ||||||
46,455 | Hyundai Mobis Co. Ltd. | 8,187,722 | ||||||
129,701 | KT&G Corp. | 8,629,015 | ||||||
24,810 | POSCO | 5,951,267 | ||||||
|
| |||||||
28,750,565 | ||||||||
|
| |||||||
Spain – 0.96% | ||||||||
485,099 | Repsol SA | 6,354,410 | ||||||
|
| |||||||
Switzerland – 10.98% | ||||||||
1,836,533 | Credit Suisse Group AG Registered | 14,457,400 | ||||||
192,185 | Novartis AG Registered | 16,872,220 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
54
Brandes International Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
16,342 | Swatch Group AG Bearer | $ | 4,633,349 | |||||
171,045 | Swatch Group AG Registered | 9,307,632 | ||||||
107,656 | Swiss Re AG | 10,248,200 | ||||||
872,235 | UBS Group AG Registered | 17,044,613 | ||||||
|
| |||||||
72,563,414 | ||||||||
|
| |||||||
United Kingdom – 15.68% | ||||||||
3,210,487 | Barclays Plc | 6,223,454 | ||||||
1,919,259 | BP Plc | 9,408,942 | ||||||
997,306 | GlaxoSmithKline Plc | 21,578,666 | ||||||
400,385 | Imperial Brands Plc | 8,434,009 | ||||||
3,445,836 | J Sainsbury Plc | 11,404,985 | ||||||
1,902,868 | Kingfisher Plc | 6,351,103 | ||||||
3,252,132 | Marks & Spencer Group Plc(a) | 6,563,976 | ||||||
57,832 | Reckitt Benckiser Group Plc | 4,411,770 | ||||||
691,451 | TechnipFMC Plc(a) | 5,358,745 |
Shares | Value | |||||||
3,044,705 | Tesco Plc | $ | 11,022,764 | |||||
979,508 | WPP Plc | 12,819,896 | ||||||
|
| |||||||
103,578,310 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 606,133,445 | |||||
|
| |||||||
PREFERRED STOCKS – 5.09% | ||||||||
Brazil – 2.37% | ||||||||
2,233,200 | Petroleo Brasileiro SA, 8.75%(d) | $ | 15,689,930 | |||||
|
| |||||||
Russia – 0.21% | ||||||||
21,512,699 | Surgutneftegas PJSC, 0%(c),(d) | 1,407,942 | ||||||
|
| |||||||
Spain – 2.51% | ||||||||
1,399,701 | Grifols SA – Class B, 6.46%(d) | 16,552,778 | ||||||
|
| |||||||
| TOTAL PREFERRED STOCKS | $ | 33,650,650 | |||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 2.49% | ||||||||
Money Market Funds — 2.49% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e) | 16,421,449 | $ | 16,421,449 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 16,421,449 | ||||||
|
| |||||||
Total Investments | $ | 656,205,544 | ||||||
Other Assets in Excess of Liabilities – 0.68% | 4,522,204 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 660,727,748 | ||||||
|
|
Percentages are stated as a percent of net assets.
ADR American Depositary Receipt
(a) | Non-income producing security. |
(b) | All or a portion of this security is on loan. See Note 2 in the Notes to Financial Statements. |
(c) | Level 3 asset. |
(d) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. |
(e) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
55
Brandes International Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 |
COMMON STOCKS | ||||
Aerospace & Defense | 1.73 | % | ||
Auto Components | 1.24 | % | ||
Automobiles | 2.85 | % | ||
Banks | 8.71 | % | ||
Beverages | 3.18 | % | ||
Capital Markets | 4.77 | % | ||
Commercial Services & Supplies | 1.81 | % | ||
Construction Materials | 4.66 | % | ||
Diversified Telecommunication Services | 4.91 | % | ||
Energy Equipment & Services | 0.81 | % | ||
Equity Real Estate Investment Trusts | 2.58 | % | ||
Food & Staples Retailing | 7.20 | % | ||
Food Products | 2.91 | % | ||
Health Care Providers & Services | 1.89 | % | ||
Household Products | 2.82 | % | ||
Insurance | 4.55 | % | ||
Internet & Direct Marketing Retail | 2.49 | % | ||
Media | 4.13 | % | ||
Metals & Mining | 0.90 | % | ||
Multi-Utilities | 2.18 | % | ||
Oil, Gas & Consumable Fuels | 5.19 | % | ||
Pharmaceuticals | 13.31 | % | ||
Specialty Retail | 0.96 | % | ||
Textiles, Apparel & Luxury Goods | 2.11 | % | ||
Tobacco | 2.59 | % | ||
Wireless Telecommunication Services | 1.26 | % | ||
|
| |||
TOTAL COMMON STOCKS | 91.74 | % | ||
|
| |||
PREFERRED STOCKS | ||||
Biotechnology | 2.51 | % | ||
Oil, Gas & Consumable Fuels | 2.58 | % | ||
|
| |||
TOTAL PREFERRED STOCKS | 5.09 | % | ||
|
| |||
SHORT-TERM INVESTMENTS | 2.49 | % | ||
|
| |||
TOTAL INVESTMENTS | 99.32 | % | ||
Other Assets in Excess of Liabilities | 0.68 | % | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
56
Brandes International Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
57
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.10% | ||||||||
Austria – 2.63% | ||||||||
33,629 | Erste Group Bank AG | $ | 1,226,332 | |||||
|
| |||||||
Brazil – 1.48% | ||||||||
168,020 | Embraer SA(a) | 527,946 | ||||||
12,908 | Embraer SA Sponsored – ADR(a) | 162,770 | ||||||
|
| |||||||
690,716 | ||||||||
|
| |||||||
Chile – 0.36% | ||||||||
5,632,734 | Enel Chile SA | 168,237 | ||||||
|
| |||||||
China – 3.70% | ||||||||
62,300 | Alibaba Group Holding Ltd.(a) | 850,190 | ||||||
104,698 | Gree Electric Appliances, Inc. of Zhuhai – Class A | 529,744 | ||||||
413,000 | Topsports International Holdings Ltd. | 343,261 | ||||||
|
| |||||||
1,723,195 | ||||||||
|
| |||||||
France – 10.52% | ||||||||
29,890 | Carrefour SA | 650,468 | ||||||
28,638 | Engie SA | 376,504 | ||||||
31,200 | Engie SA(a) | 410,187 | ||||||
15,034 | Publicis Groupe SA | 912,469 | ||||||
11,262 | Sanofi | 1,151,423 | ||||||
2,650 | Schneider Electric SE | 444,909 | ||||||
19,013 | TotalEnergies SE | 962,049 | ||||||
|
| |||||||
4,908,009 | ||||||||
|
| |||||||
Germany – 1.66% | ||||||||
13,695 | HeidelbergCement AG | 776,153 | ||||||
|
| |||||||
Ireland – 0.82% | ||||||||
9,567 | CRH Plc | 382,122 | ||||||
|
| |||||||
Italy – 1.29% | ||||||||
41,240 | Eni SpA | 601,412 | ||||||
|
| |||||||
Japan – 1.29% | ||||||||
21,200 | Honda Motor Co. Ltd. | 600,932 | ||||||
|
| |||||||
Malaysia – 1.43% | ||||||||
600,000 | Genting Berhad | 666,163 | ||||||
|
| |||||||
Mexico – 1.68% | ||||||||
668,608 | Fibra Uno Administracion SA de CV | 783,236 | ||||||
|
|
Shares | Value | |||||||
South Korea – 5.75% | ||||||||
2,433 | Hyundai Mobis Co. Ltd. | $ | 428,818 | |||||
3,846 | Hyundai Motor Co. | 567,442 | ||||||
4,388 | KT&G Corp. | 291,934 | ||||||
15,353 | Samsung Electronics Co. Ltd. | 878,544 | ||||||
5,365 | SK Hynix, Inc. | 516,109 | ||||||
|
| |||||||
2,682,847 | ||||||||
|
| |||||||
Spain – 1.27% | ||||||||
45,360 | Repsol SA | 594,180 | ||||||
|
| |||||||
Switzerland – 3.25% | ||||||||
77,518 | UBS Group AG Registered | 1,514,803 | ||||||
|
| |||||||
United Kingdom – 14.20% | ||||||||
215,586 | BP Plc | 1,056,885 | ||||||
56,721 | GlaxoSmithKline Plc | 1,227,270 | ||||||
40,460 | Imperial Brands Plc | 852,280 | ||||||
98,722 | J Sainsbury Plc | 326,749 | ||||||
164,394 | Kingfisher Plc | 548,689 | ||||||
165,615 | NatWest Group Plc | 467,753 | ||||||
14,819 | Shell Plc – ADR | 814,007 | ||||||
126,932 | Tesco Plc | 459,533 | ||||||
66,573 | WPP Plc | 871,314 | ||||||
|
| |||||||
6,624,480 | ||||||||
|
| |||||||
United States – 46.77% | ||||||||
8,073 | Amdocs Ltd. | 663,681 | ||||||
14,017 | American International Group, Inc. | 879,847 | ||||||
28,633 | Bank of America Corp. | 1,180,252 | ||||||
9,412 | Bank of New York Mellon Corp. | 467,118 | ||||||
11,964 | Cardinal Health, Inc. | 678,359 | ||||||
15,020 | Change Healthcare, Inc.(a) | 327,436 | ||||||
4,593 | Cigna Corp. | 1,100,529 | ||||||
19,954 | Citigroup, Inc. | 1,065,544 | ||||||
17,564 | Comcast Corp. – Class A | 822,346 | ||||||
8,509 | CVS Health Corp. | 861,196 | ||||||
4,807 | Emerson Electric Co. | 471,326 | ||||||
3,158 | FedEx Corp. | 730,730 | ||||||
8,120 | Fiserv, Inc.(a) | 823,368 | ||||||
3,110 | General Dynamics Corp. | 750,070 | ||||||
20,471 | Halliburton Co. | 775,237 | ||||||
2,628 | HCA Healthcare, Inc. | 658,629 | ||||||
3,238 | JPMorgan Chase & Co. | 441,404 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
58
Brandes Global Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
1,669 | Laboratory Corp. of America Holdings(a) | $ | 440,049 | |||||
4,009 | McKesson Corp. | 1,227,275 | ||||||
14,370 | Merck & Co., Inc. | 1,179,058 | ||||||
3,316 | Mohawk Industries, Inc.(a) | 411,847 | ||||||
18,621 | Old Republic International Corp. | 481,725 | ||||||
13,977 | OneMain Holdings, Inc. | 662,650 | ||||||
21,182 | Pfizer, Inc. | 1,096,592 | ||||||
2,517 | PNC Financial Services Group, Inc. | 464,261 | ||||||
7,272 | State Street Corp. | 633,537 | ||||||
9,352 | Textron, Inc. | 695,602 | ||||||
10,604 | Truist Financial Corp. | 601,247 | ||||||
25,275 | Wells Fargo & Co. | 1,224,826 | ||||||
|
| |||||||
21,815,741 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 45,758,558 | |||||
|
|
Shares | Value | |||||||
PREFERRED STOCKS – 1.34% | ||||||||
South Korea – 0.34% | ||||||||
3,072 | Samsung Electronics Co. Ltd., 2.308%(b) | $ | 159,177 | |||||
|
| |||||||
Spain – 1.00% | ||||||||
39,892 | Grifols SA – ADR, 7.503%(b) | 465,939 | ||||||
|
| |||||||
| TOTAL PREFERRED STOCKS | $ | 625,116 | |||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 0.45% | ||||||||
Money Market Funds — 0.45% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(c) | 209,674 | $ | 209,674 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 209,674 | ||||||
|
| |||||||
Total Investments | $ | 46,593,348 | ||||||
Other Assets in Excess of Liabilities – 0.11% | 50,542 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 46,643,890 | ||||||
|
|
Percentages are stated as a percent of net assets.
ADR American Depositary Receipt
(a) | Non-income producing security. |
(b) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. |
(c) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
59
Brandes Global Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022
COMMON STOCKS | ||||
Aerospace & Defense | 4.58 | % | ||
Air Freight & Logistics | 1.57 | % | ||
Auto Components | 0.92 | % | ||
Automobiles | 2.51 | % | ||
Banks | 14.31 | % | ||
Capital Markets | 5.61 | % | ||
Construction Materials | 2.48 | % | ||
Consumer Finance | 1.42 | % | ||
Electric Utilities | 0.36 | % | ||
Electrical Equipment | 1.96 | % | ||
Energy Equipment & Services | 1.66 | % | ||
Equity Real Estate Investment Trusts | 1.68 | % | ||
Food & Staples Retailing. | 3.07 | % | ||
Health Care Providers & Services | 10.64 | % | ||
Health Care Technology | 0.70 | % | ||
Hotels, Restaurants & Leisure | 1.43 | % | ||
Household Durables | 2.02 | % | ||
Insurance | 2.92 | % | ||
Internet & Direct Marketing Retail | 1.82 | % | ||
IT Services | 3.19 | % | ||
Media | 5.59 | % | ||
Multi-Utilities | 1.69 | % | ||
Oil, Gas & Consumable Fuels | 8.63 | % | ||
Pharmaceuticals | 9.98 | % | ||
Semiconductors & Semiconductor Equipment | 1.11 | % | ||
Specialty Retail | 1.92 | % | ||
Technology Hardware, Storage & Peripherals | 1.88 | % | ||
Tobacco | 2.45 | % | ||
|
| |||
TOTAL COMMON STOCKS | 98.10 | % | ||
|
| |||
PREFERRED STOCKS | ||||
Biotechnology | 1.00 | % | ||
Technology Hardware, Storage & Peripherals | 0.34 | % | ||
|
| |||
TOTAL PREFERRED STOCKS | 1.34 | % | ||
|
| |||
SHORT-TERM INVESTMENTS | 0.45 | % | ||
|
| |||
TOTAL INVESTMENTS | 99.89 | % | ||
Other Assets in Excess of Liabilities | 0.11 | % | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
60
Brandes Global Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
61
Brandes Emerging Markets Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 96.18% | ||||||||
Austria – 0.98% | ||||||||
287,562 | Erste Group Bank AG | $ | 10,486,381 | |||||
|
| |||||||
Brazil – 7.66% | ||||||||
2,591,574 | Embraer SA Sponsored – ADR(a) | 32,679,748 | ||||||
5,171,400 | Sendas Distribuidora SA | 17,694,018 | ||||||
1,125,300 | Telefonica Brasil SA | 12,689,923 | ||||||
163,109 | Telefonica Brasil SA – ADR | 1,834,976 | ||||||
5,908,900 | TIM SA(a) | 17,114,656 | ||||||
|
| |||||||
82,013,321 | ||||||||
|
| |||||||
Chile – 1.82% | ||||||||
2,807,269 | Empresa Nacional de Telecomunicaciones SA | 12,270,206 | ||||||
161,104,262 | Enel Chile SA | 4,811,833 | ||||||
1,509,388 | Enel Chile SA Sponsored – ADR | 2,384,833 | ||||||
|
| |||||||
19,466,872 | ||||||||
|
| |||||||
China – 25.66% | ||||||||
3,344,000 | Alibaba Group Holding Ltd.(a) | 45,634,608 | ||||||
18,035,000 | China Education Group Holdings Ltd. | 15,518,191 | ||||||
2,145,591 | China South Publishing & Media Group Co. Ltd. – Class A | 3,192,808 | ||||||
19,718,000 | Chinasoft International Ltd.(a) | 16,162,064 | ||||||
4,999,000 | Galaxy Entertainment Group Ltd. | 29,581,004 | ||||||
20,832,500 | Genertec Universal Medical Group Co. Ltd.(b) | 13,651,410 | ||||||
3,515,396 | Gree Electric Appliances, Inc. of Zhuhai – Class A | 17,786,976 |
Shares | Value | |||||||
1,881,646 | Midea Group Co. Ltd. – Class A | $ | 16,751,346 | |||||
3,512,000 | Ping An Insurance Group Co of China Ltd. – Class H | 24,552,619 | ||||||
10,976,200 | Shanghai Pharmaceuticals Holding Co. Ltd. – Class H | 21,075,397 | ||||||
18,742,000 | Topsports International Holdings Ltd. | 15,577,223 | ||||||
15,236,000 | TravelSky Technology Ltd. – Class H | 21,856,715 | ||||||
6,589,000 | Weichai Power Co. Ltd. – Class H | 10,327,579 | ||||||
10,112,200 | Wynn Macau Ltd.(a) | 7,328,132 | ||||||
630,090 | ZTO Express Cayman, Inc. – ADR | 15,752,250 | ||||||
|
| |||||||
274,748,322 | ||||||||
|
| |||||||
Hong Kong – 4.35% | ||||||||
2,298,800 | AIA Group Ltd. | 24,003,807 | ||||||
17,315,920 | First Pacific Co. Ltd. | 6,996,286 | ||||||
10,348,500 | Lifestyle International Holdings Ltd.(a) | 4,955,215 | ||||||
4,392,200 | Luk Fook Holdings International Ltd. | 10,651,030 | ||||||
|
| |||||||
46,606,338 | ||||||||
|
| |||||||
India – 3.99% | ||||||||
1,062,300 | HDFC Bank Ltd. | 20,459,714 | ||||||
7,638,169 | Indus Towers Ltd.(a) | 22,266,022 | ||||||
|
| |||||||
42,725,736 | ||||||||
|
| |||||||
Indonesia – 6.54% | ||||||||
78,235,411 | Bank Rakyat Indonesia Persero Tbk PT | 25,268,844 | ||||||
6,612,112 | Gudang Garam Tbk PT | 14,547,797 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
62
Brandes Emerging Markets Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
36,825,900 | Indofood Sukses Makmur Tbk PT | $ | 15,240,633 | |||||
81,651,015 | XL Axiata Tbk PT | 15,026,767 | ||||||
|
| |||||||
70,084,041 | ||||||||
|
| |||||||
Malaysia – 2.16% | ||||||||
20,807,000 | Genting Berhad | 23,101,417 | ||||||
|
| |||||||
Mexico – 8.16% | ||||||||
6,744,605 | America Movil SAB de CV | 7,161,692 | ||||||
3,981,000 | Cemex SAB de CV Sponsored – ADR(a) | 21,059,490 | ||||||
30,775,129 | Fibra Uno Administracion SA de CV | 36,051,307 | ||||||
4,086,997 | Macquarie Mexico Real Estate Management SA de CV(b) | 4,892,479 | ||||||
12,836,544 | PLA Administradora Industrial S de RL de CV | 18,077,003 | ||||||
512,122 | Urbi Desarrollos Urbanos SAB de CV(a) | 173,411 | ||||||
|
| |||||||
87,415,382 | ||||||||
|
| |||||||
Panama – 2.16% | ||||||||
643,993 | Banco Latinoamericano de Comercio Exterior SA – Class E | 10,033,411 | ||||||
156,141 | Copa Holdings SA – Class A(a) | 13,059,633 | ||||||
|
| |||||||
23,093,044 | ||||||||
|
| |||||||
Philippines – 1.75% | ||||||||
9,718,404 | Bank of the Philippine Islands | 18,706,214 | ||||||
|
| |||||||
Russia – 1.76% | ||||||||
11,121,093 | Detsky Mir PJSC(c) | 5,377,449 | ||||||
236,429 | Lukoil PJSC Sponsored – ADR(c) | 2,111,675 |
Shares | Value | |||||||
4,858,073 | Mobile TeleSystems Public Joint Stock Company(c) | $ | 6,448,912 | |||||
7,919,891 | Sberbank of Russia PJSC(c) | 19,800 | ||||||
1,571,174 | Sistema PJSFC Sponsored – GDR(c) | 4,937,139 | ||||||
|
| |||||||
18,894,975 | ||||||||
|
| |||||||
South Korea – 14.59% | ||||||||
394,434 | KT&G Corp. | 26,241,717 | ||||||
22,168 | LG Household & Health Care Ltd. | 15,637,573 | ||||||
108,324 | POSCO | 25,984,081 | ||||||
764,342 | Samsung Electronics Co. Ltd. | 43,737,929 | ||||||
621,928 | Shinhan Financial Group Co. Ltd. | 21,126,110 | ||||||
244,956 | SK Hynix, Inc. | 23,564,574 | ||||||
|
| |||||||
156,291,984 | ||||||||
|
| |||||||
Spain – 0.61% | ||||||||
9,996,309 | Prosegur Cash SA(b) | 6,535,524 | ||||||
|
| |||||||
Taiwan – 9.84% | ||||||||
3,036,000 | Accton Technology Corp. | 23,343,844 | ||||||
93,000 | Largan Precision Co. Ltd. | 6,079,356 | ||||||
2,624,000 | Taiwan Semiconductor Manufacturng Co. Ltd. | 53,827,480 | ||||||
626,000 | Wiwynn Corp. | 22,083,029 | ||||||
|
| |||||||
105,333,709 | ||||||||
|
| |||||||
Thailand – 4.15% | ||||||||
1,989,200 | Bangkok Bank PCL – Class F | 8,141,800 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
63
Brandes Emerging Markets Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
76,811,481 | Jasmine Broadband Internet Infrastructure Fund – Class F | $ | 25,411,317 | |||||
2,263,900 | Kasikornbank PCL – Class F | 10,926,505 | ||||||
|
| |||||||
44,479,622 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 1,029,982,882 | |||||
|
|
Shares | Value | |||||||
PREFERRED STOCKS – 2.53% | ||||||||
Brazil – 2.53% | ||||||||
3,864,700 | Petroleo Brasileiro SA, 8.749%(d) | $ | 27,152,459 | |||||
|
| |||||||
| TOTAL PREFERRED STOCKS | $ | 27,152,459 | |||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 1.58% | ||||||||
Money Market Funds — 1.58% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e) | 16,878,075 | $ | 16,878,075 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 16,878,075 | ||||||
|
| |||||||
Total Investments | $ | 1,074,013,416 | ||||||
Liabilities in Excess of Other Assets – (0.29)% | (3,119,237 | ) | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 1,070,894,179 | ||||||
|
|
Percentages are stated as a percent of net assets.
ADR American Depositary Receipt
GDR Global Depositary Receipt
(a) | Non-income producing security. |
(b) | Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $40,656,636 which represented 3.80% of the net assets of the Fund. |
(c) | The price for this security was derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. This security represents $18,894,975 or 1.76% of the Fund’s net assets and is classified as a Level 3 security. See Note 2 in the Notes to Financial Statements. |
(d) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. |
(e) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
64
Brandes Emerging Markets Value Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022
COMMON STOCKS | ||||
Aerospace & Defense | 3.05 | % | ||
Air Freight & Logistics | 1.47 | % | ||
Airlines | 1.22 | % | ||
Banks | 10.75 | % | ||
Commercial Services & Supplies | 0.61 | % | ||
Communications Equipment | 2.18 | % | ||
Construction Materials | 1.97 | % | ||
Diversified Consumer Services | 1.45 | % | ||
Diversified Financial Services | 2.22 | % | ||
Diversified Telecommunication Services | 5.81 | % | ||
Electric Utilities | 0.67 | % | ||
Electronic Equipment, Instruments & Components | 0.57 | % | ||
Equity Real Estate Investment Trusts | 5.51 | % | ||
Food & Staples Retailing | 1.65 | % | ||
Food Products | 2.07 | % | ||
Health Care Providers & Services | 1.97 | % | ||
Hotels, Restaurants & Leisure | 5.60 | % | ||
Household Durables | 3.23 | % | ||
Insurance | 4.53 | % | ||
Internet & Direct Marketing Retail | 4.26 | % | ||
IT Services | 3.55 | % | ||
Machinery | 0.97 | % | ||
Media | 0.30 | % | ||
Metals & Mining | 2.43 | % | ||
Multiline Retail | 0.46 | % | ||
Oil, Gas & Consumable Fuels | 0.20 | % | ||
Personal Products | 1.46 | % | ||
Semiconductors & Semiconductor Equipment | 7.23 | % | ||
Specialty Retail | 2.96 | % | ||
Technology Hardware, Storage & Peripherals | 6.14 | % | ||
Tobacco | 3.81 | % | ||
Wireless Telecommunication Services | 5.88 | % | ||
|
| |||
TOTAL COMMON STOCKS | 96.18 | % | ||
|
| |||
PREFERRED STOCKS | ||||
Oil, Gas & Consumable Fuels | 2.53 | % | ||
|
| |||
TOTAL PREFERRED STOCKS | 2.53 | % | ||
|
| |||
SHORT-TERM INVESTMENTS | 1.58 | % | ||
|
| |||
TOTAL INVESTMENTS | 100.29 | % | ||
Liabilities in Excess of Other Assets | (0.29 | )% | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
65
Brandes Emerging Markets Value Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
66
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 95.68% | ||||||||
Austria – 0.83% | ||||||||
216,981 | Addiko Bank AG | $ | 2,856,419 | |||||
|
| |||||||
Belgium – 0.97% | ||||||||
456,862 | Ontex Group NV(a) | 3,334,401 | ||||||
|
| |||||||
Brazil – 5.10% | ||||||||
5,580,440 | Embraer SA(a) | 17,534,658 | ||||||
|
| |||||||
Canada – 2.97% | ||||||||
118,787 | Cameco Corp. | 3,456,702 | ||||||
789,544 | Dorel Industries, Inc. – Class B | 6,113,495 | ||||||
35,395 | Sierra Wireless, Inc.(a) | 638,526 | ||||||
|
| |||||||
10,208,723 | ||||||||
|
| |||||||
Chile – 1.79% | ||||||||
205,562,931 | Enel Chile SA | 6,139,716 | ||||||
|
| |||||||
China – 1.96% | ||||||||
12,512,900 | Boyaa Interactive International Ltd.(a) | 743,329 | ||||||
300,880 | China Yuchai International Ltd. | 3,505,252 | ||||||
8,397,000 | Weiqiao Textile Co. – Class H | 2,476,232 | ||||||
|
| |||||||
6,724,813 | ||||||||
|
| |||||||
France – 4.78% | ||||||||
570,514 | Elior Group SA(a),(b) | 1,912,520 | ||||||
50,890 | Savencia SA | 3,422,862 | ||||||
134,780 | Societe BIC SA | 6,809,504 | ||||||
126,443 | Vicat SA | 4,285,437 | ||||||
|
| |||||||
16,430,323 | ||||||||
|
| |||||||
Germany – 0.73% | ||||||||
46,766 | Draegerwerk AG & Co. KGaA | 2,519,009 | ||||||
|
| |||||||
Greece – 0.55% | ||||||||
236,992 | Sarantis SA | 1,877,025 | ||||||
|
| |||||||
Hong Kong – 7.58% | ||||||||
4,180,050 | APT Satellite Holdings Ltd. | 1,264,083 | ||||||
2,059,500 | Dickson Concepts International Ltd. | 1,051,664 | ||||||
66,630,000 | Emperor Watch & Jewellery Ltd. | 1,605,061 | ||||||
18,613,000 | First Pacific Co. Ltd. | 7,520,355 |
Shares | Value | |||||||
8,314,020 | PAX Global Technology Ltd. | $ | 6,794,644 | |||||
25,232,000 | Pico Far East Holdings Ltd. | 3,492,353 | ||||||
2,670,500 | Yue Yuen Industrial Holdings Ltd.(a) | 4,309,183 | ||||||
|
| |||||||
26,037,343 | ||||||||
|
| |||||||
Hungary – 2.05% | ||||||||
5,792,540 | Magyar Telekom Telecommunications Plc | 7,036,110 | ||||||
|
| |||||||
Ireland – 6.38% | ||||||||
3,146,582 | AIB Group Plc | 6,930,680 | ||||||
496,596 | Avadel Pharmaceuticals Plc – ADR(a) | 3,391,751 | ||||||
2,826,375 | C&C Group Plc(a) | 7,277,221 | ||||||
2,569,148 | Greencore Group Plc(a) | 4,336,825 | ||||||
|
| |||||||
21,936,477 | ||||||||
|
| |||||||
Israel – 1.18% | ||||||||
93,929 | Taro Pharmaceutical Industries Ltd.(a) | 4,063,369 | ||||||
|
| |||||||
Italy – 3.28% | ||||||||
278,717 | Buzzi Unicem SpA | 5,157,704 | ||||||
549,590 | Credito Emiliano SpA | 3,613,286 | ||||||
251,174 | Leonardo SpA(a) | 2,495,960 | ||||||
|
| |||||||
11,266,950 | ||||||||
|
| |||||||
Japan – 21.22% | ||||||||
874,600 | Concordia Financial Group Ltd. | 3,254,959 | ||||||
284,800 | DeNa Co. Ltd. | 4,326,450 | ||||||
458,900 | Fuji Media Holdings, Inc. | 4,394,305 | ||||||
38,900 | Fukuda Denshi Co. Ltd. | 2,485,232 | ||||||
301,300 | Futaba Corp. | 1,618,701 | ||||||
1,703,300 | Hachijuni Bank Ltd. | 5,643,482 | ||||||
1,335,300 | Hyakugo Bank Ltd. | 3,645,665 | ||||||
281,600 | Japan Petroleum Exploration Co. Ltd. | 5,930,778 | ||||||
96,200 | Kaken Pharmaceutical Co. Ltd. | 3,059,224 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
67
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
324,900 | Kissei Pharmaceutical Co. Ltd. | $ | 6,771,995 | |||||
293,200 | Koatsu Gas Kogyo Co. Ltd. | 1,582,232 | ||||||
1,156,844 | Komori Corp. | 6,868,767 | ||||||
534,000 | Kyushu Financial Group, Inc. | 1,745,848 | ||||||
189,600 | Mitsubishi Shokuhin Co. Ltd. | 4,669,618 | ||||||
119,700 | Nichiban Co. Ltd. | 1,664,057 | ||||||
183,200 | Oita Bank Ltd. | 2,863,144 | ||||||
92,600 | Sankyo Co. Ltd. | 2,567,997 | ||||||
226,600 | Tachi-S Co. Ltd. | 1,837,754 | ||||||
100,200 | Taisho Pharmaceutical Holdings Co. Ltd. | 4,651,445 | ||||||
154,400 | Yodogawa Steel Works Ltd. | 3,313,057 | ||||||
|
| |||||||
72,894,710 | ||||||||
|
| |||||||
Malaysia – 1.40% | ||||||||
4,333,200 | Genting Berhad | 4,811,028 | ||||||
|
| |||||||
Mexico – 7.63% | ||||||||
357,715 | Cemex SAB de CV Sponsored – ADR(a) | 1,892,312 | ||||||
24,958,198 | Consorcio ARA SAB de CV | 5,094,534 | ||||||
279,501,983 | Desarrolladora Homex SAB de CV(a),(c) | 604,253 | ||||||
11,123,149 | Fibra Uno Administracion SA de CV | 13,030,134 | ||||||
4,448,928 | Macquarie Mexico Real Estate Management SA de CV(b) | 5,325,741 | ||||||
806,929 | Urbi Desarrollos Urbanos SAB de CV(a),(c) | 273,236 | ||||||
|
| |||||||
26,220,210 | ||||||||
|
| |||||||
Panama – 1.58% | ||||||||
348,146 | Banco Latinoamericano de Comercio Exterior SA – Class E | 5,424,115 | ||||||
|
|
Shares | Value | |||||||
Slovenia – 2.09% | ||||||||
474,148 | Nova Ljubljanska Banka – GDR(b) | $ | 7,186,009 | |||||
|
| |||||||
South Korea – 2.82% | ||||||||
102,219 | Binggrae Co. Ltd. | 4,542,020 | ||||||
5,097 | Namyang Dairy Products Co. Ltd. | 1,686,314 | ||||||
39,595 | Samchully Co. Ltd. | 3,461,314 | ||||||
|
| |||||||
9,689,648 | ||||||||
|
| |||||||
Spain – 2.01% | ||||||||
1,262,982 | Lar Espana Real Estate Socimi SA | 6,905,047 | ||||||
|
| |||||||
Turkey – 1.08% | ||||||||
3,558,239 | Ulker Biskuvi Sanayi AS | 3,717,880 | ||||||
|
| |||||||
United Kingdom – 15.70% | ||||||||
1,565,145 | Balfour Beatty Plc | 5,274,116 | ||||||
2,373,448 | De La Rue Plc(a) | 3,365,660 | ||||||
752,668 | ITV Plc(a) | 809,978 | ||||||
2,806,878 | J Sainsbury Plc | 9,290,170 | ||||||
903,776 | LSL Property Services Plc | 4,606,512 | ||||||
2,554,535 | Marks & Spencer Group Plc(a) | 5,155,973 | ||||||
11,438,501 | Mitie Group Plc | 8,207,415 | ||||||
1,698,234 | Premier Foods Plc | 2,543,209 | ||||||
819,654 | QinetiQ Group Plc | 3,257,230 | ||||||
641,649 | TechnipFMC Plc(a) | 4,972,780 | ||||||
1,244,657 | Yellow Cake Plc(a),(b) | 6,442,037 | ||||||
|
| |||||||
53,925,080 | ||||||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 328,739,063 | |||||
|
| |||||||
PREFERRED STOCKS – 1.89% | ||||||||
Germany – 1.89% | ||||||||
117,368 | Draegerwerk AG & Co. KGaA, 0.37%(d) | $ | 6,494,548 | |||||
|
| |||||||
| TOTAL PREFERRED STOCKS | $ | 6,494,548 | |||||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
68
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
INVESTMENT COMPANIES – 0.86% | ||||||||
Canada – 0.86% | ||||||||
196,492 | Sprott Physical Uranium Trust(a) | $ | 2,959,600 | |||||
|
| |||||||
| TOTAL INVESTMENT COMPANIES | $ | 2,959,600 | |||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 1.15% | ||||||||
Money Market Funds — 1.15% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e) | 3,945,685 | $ | 3,945,685 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 3,945,685 | ||||||
|
| |||||||
Total Investments | $ | 342,138,896 | ||||||
Other Assets in Excess of Liabilities – 0.42% | 1,452,096 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 343,590,992 | ||||||
|
|
Percentages are stated as a percent of net assets.
ADR American Depositary Receipt
GDR Global Depositary Receipt
(a) | Non-income producing security. |
(b) | Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities |
Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $20,866,306 which represented 6.07% of the net assets of the Fund. |
(c) | Affiliated issuer. See Note 3 in the Notes to Financial Statements. |
(d) | Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income. |
(e) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
69
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022
COMMON STOCKS | ||||
Aerospace & Defense | 6.78 | % | ||
Auto Components | 0.54 | % | ||
Banks | 10.97 | % | ||
Beverages | 2.12 | % | ||
Chemicals | 0.46 | % | ||
Commercial Services & Supplies | 5.84 | % | ||
Communications Equipment | 0.18 | % | ||
Construction & Engineering | 1.54 | % | ||
Construction Materials | 3.30 | % | ||
Diversified Financial Services | 1.58 | % | ||
Diversified Telecommunication Services | 2.42 | % | ||
Electric Utilities | 1.79 | % | ||
Electrical Equipment | 0.47 | % | ||
Electronic Equipment, Instruments & Components | 1.98 | % | ||
Energy Equipment & Services | 1.45 | % | ||
Entertainment | 1.48 | % | ||
Equity Real Estate Investment Trusts | 7.35 | % | ||
Food & Staples Retailing | 5.56 | % | ||
Food Products | 8.07 | % | ||
Gas Utilities | 1.01 | % | ||
Health Care Equipment & Supplies | 1.45 | % | ||
Hotels, Restaurants & Leisure | 1.96 | % | ||
Household Durables | 3.52 | % | ||
Leisure Products | 0.75 | % | ||
Machinery | 3.02 | % | ||
Media | 2.54 | % | ||
Metals & Mining | 0.96 | % | ||
Oil, Gas & Consumable Fuels | 2.74 | % | ||
Personal Products | 1.52 | % | ||
Pharmaceuticals | 6.38 | % | ||
Real Estate Management & Development | 1.34 | % | ||
Specialty Retail | 0.77 | % | ||
Textiles, Apparel & Luxury Goods | 1.97 | % | ||
Trading Companies & Distributors | 1.87 | % | ||
|
| |||
TOTAL COMMON STOCKS | 95.68 | % | ||
|
| |||
PREFERRED STOCKS | ||||
Health Care Equipment & Supplies | 1.89 | % | ||
|
| |||
TOTAL PREFERRED STOCKS | 1.89 | % | ||
|
| |||
INVESTMENT COMPANIES | ||||
Trading Companies & Distributors | 0.86 | % | ||
|
| |||
TOTAL INVESTMENT COMPANIES | 0.86 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
70
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)
SHORT-TERM INVESTMENTS | 1.15 | % | ||
|
| |||
TOTAL INVESTMENTS | 99.58 | % | ||
Other Assets in Excess of Liabilities | 0.42 | % | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
71
Brandes International Small Cap Equity Fund
SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
72
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 86.12% | ||||||||
Aerospace & Defense – 12.49% | ||||||||
11,205 | Embraer SA Sponsored – ADR(a) | $ | 141,295 | |||||
1,449 | Moog, Inc. – Class A | 127,222 | ||||||
1,153 | National Presto Industries, Inc. | 88,723 | ||||||
8,392 | Park Aerospace Corp. | 109,516 | ||||||
|
| |||||||
466,756 | ||||||||
|
| |||||||
Banks – 3.51% | ||||||||
1,053 | ACNB Corp. | 36,802 | ||||||
787 | Eagle Bancorp Montana, Inc. | 17,574 | ||||||
2,063 | National Bankshares, Inc. | 76,723 | ||||||
|
| |||||||
131,099 | ||||||||
|
| |||||||
Biotechnology – 5.28% | ||||||||
1,993 | Eagle Pharmaceuticals, Inc.(a) | 98,633 | ||||||
11,508 | PDL BioPharma, Inc.(a),(b) | 28,425 | ||||||
392 | United Therapeutics Corp.(a) | 70,329 | ||||||
|
| |||||||
197,387 | ||||||||
|
| |||||||
Commercial Services & Supplies – 1.86% | ||||||||
3,977 | Kimball International, Inc. – Class B | 33,606 | ||||||
2,994 | Steelcase, Inc. – Class A | 35,778 | ||||||
|
| |||||||
69,384 | ||||||||
|
| |||||||
Communications Equipment – 4.68% | ||||||||
5,972 | NETGEAR, Inc.(a) | 147,389 | ||||||
8,918 | Ribbon Communications, Inc.(a) | 27,557 | ||||||
|
| |||||||
174,946 | ||||||||
|
| |||||||
Construction & Engineering – 2.13% | ||||||||
32,119 | Orion Group Holdings, Inc.(a) | 79,655 | ||||||
|
| |||||||
Electric Utilities – 1.01% | ||||||||
562 | ALLETE, Inc. | 37,643 | ||||||
|
| |||||||
Electronic Equipment, Instruments & | ||||||||
Components – 2.87% | ||||||||
6,173 | Arlo Technologies, Inc.(a) | 54,693 | ||||||
1,298 | Avnet, Inc. | 52,686 | ||||||
|
| |||||||
107,379 | ||||||||
|
|
Shares | Value | |||||||
Energy Equipment & Services – 4.89% | ||||||||
4,895 | Dril-Quip, Inc.(a) | $ | 182,828 | |||||
|
| |||||||
Equity Real Estate Investment Trusts – 3.22% | ||||||||
4,270 | Equity Commonwealth(a) | 120,457 | ||||||
|
| |||||||
Food & Staples Retailing – 0.80% | ||||||||
337 | Ingles Markets, Inc. – Class A | 30,010 | ||||||
|
| |||||||
Health Care Equipment & Supplies – 0.63% | ||||||||
1,354 | Invacare Corp.(a) | 1,909 | ||||||
2,918 | LENSAR, Inc.(a) | 21,593 | ||||||
|
| |||||||
23,502 | ||||||||
|
| |||||||
Health Care Providers & Services – 2.42% | ||||||||
2,328 | MEDNAX, Inc.(a) | 54,662 | ||||||
1,007 | Premier, Inc. – Class A | 35,839 | ||||||
|
| |||||||
90,501 | ||||||||
|
| |||||||
Household Durables – 3.74% | ||||||||
9,253 | Dorel Industries, Inc. – Class B | 71,647 | ||||||
2,497 | Taylor Morrison Home Corp.(a) | 67,968 | ||||||
|
| |||||||
139,615 | ||||||||
|
| |||||||
Insurance – 6.34% | ||||||||
373 | American National Group, Inc. | 70,530 | ||||||
7,695 | Crawford & Co. – Class A | 58,174 | ||||||
514 | National Western Life Group, Inc. – Class A | 108,146 | ||||||
|
| |||||||
236,850 | ||||||||
|
| |||||||
IT Services – 0.48% | ||||||||
1,340 | SolarWinds Corp. | 17,835 | ||||||
|
| |||||||
Machinery – 10.91% | ||||||||
3,431 | Flowserve Corp. | 123,173 | ||||||
14,874 | Graham Corp. | 114,678 | ||||||
2,613 | Hurco Companies, Inc. | 82,362 | ||||||
5,689 | L.B. Foster Co. – Class A(a) | 87,440 | ||||||
|
| |||||||
407,653 | ||||||||
|
| |||||||
Multi-Utilities – 0.97% | ||||||||
798 | Avista Corp. | 36,030 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 4.79% | ||||||||
983 | Chesapeake Energy Corp. | 85,521 | ||||||
3,457 | World Fuel Services Corp. | 93,477 | ||||||
|
| |||||||
178,998 | ||||||||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
73
Brandes Small Cap Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
Personal Products – 4.03% | ||||||||
4,111 | Edgewell Personal Care Co. | $ | 150,750 | |||||
|
| |||||||
Pharmaceuticals – 5.56% | ||||||||
4,197 | Avadel Pharmaceuticals Plc –ADR(a) | 28,666 | ||||||
4,621 | Phibro Animal Health Corp. – Class A | 92,189 | ||||||
1,644 | Prestige Consumer Healthcare, Inc.(a) | 87,033 | ||||||
|
| |||||||
207,888 | ||||||||
|
| |||||||
Professional Services – 3.08% | ||||||||
1,916 | Kelly Services, Inc. – Class A | 41,558 | ||||||
2,162 | Resources Connection, Inc. | 37,057 | ||||||
395 | Science Applications International Corp. | 36,407 | ||||||
|
| |||||||
115,022 | ||||||||
|
|
Shares | Value | |||||||
Software – 0.43% | ||||||||
1,781 | N-Able, Inc.(a) | $ | 16,207 | |||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 3,218,395 | |||||
|
| |||||||
INVESTMENT COMPANIES – 2.10% | ||||||||
Trading Companies & Distributors – 2.10% | ||||||||
5,206 | Sprott Physical Uranium Trust(a) | $ | 78,413 | |||||
|
| |||||||
| TOTAL INVESTMENT COMPANIES | $ | 78,413 | |||||
|
|
Principal Amount | Value | |||||||
CORPORATE BONDS – 0.35% | ||||||||
Multi-Utilities – 0.35% | ||||||||
Avista Corp. | $ | 13,000 | $ | 13,000 | ||||
|
| |||||||
TOTAL CORPORATE BONDS | $ | 13,000 | ||||||
|
| |||||||
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 10.92% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%, (c) | 408,112 | $ | 408,112 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 408,112 | ||||||
|
| |||||||
Total Investments (Cost $3,490,072) – 99.49% | $ | 3,717,920 | ||||||
Other Assets in Excess of Liabilities – 0.51% | 18,932 | |||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 3,736,852 | ||||||
|
|
Percentages are stated as a percent of net assets.
ADR American Depositary Receipt
(a) | Non-income producing security. |
(b) | The price for this security was derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. This security represents $28,425 or 0.76% of the Fund’s net assets and is classified as a Level 3 security. See Note 2 in the Notes to Financial Statements. |
(c) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
74
Brandes Small Cap Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
75
Brandes Small Cap Value Fund
SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2022
COMMON STOCKS | ||||
Brazil | 3.78 | % | ||
Canada | 1.92 | % | ||
Ireland | 0.77 | % | ||
United States | 79.65 | % | ||
|
| |||
TOTAL COMMON STOCKS | 86.12 | % | ||
|
| |||
CORPORATE BONDS | ||||
United States | 0.35 | % | ||
|
| |||
TOTAL CORPORATE BONDS | 0.35 | % | ||
|
| |||
INVESTMENT COMPANIES | ||||
Canada | 2.10 | % | ||
|
| |||
TOTAL INVESTMENT COMPANIES | 2.10 | % | ||
|
| |||
SHORT-TERM INVESTMENTS | 10.92 | % | ||
|
| |||
TOTAL INVESTMENTS | 99.49 | % | ||
Other Assets in Excess of Liabilities | 0.51 | % | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
76
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 98.02% | ||||||||
Aerospace & Defense – 4.35% | ||||||||
493 | General Dynamics Corp. | $ | 118,902 | |||||
1,376 | Textron, Inc. | 102,347 | ||||||
|
| |||||||
221,249 | ||||||||
|
| |||||||
Air Freight & Logistics – 2.51% | ||||||||
552 | FedEx Corp. | 127,727 | ||||||
|
| |||||||
Banks – 12.92% | ||||||||
3,266 | Bank of America Corp. | 134,625 | ||||||
2,304 | Citigroup, Inc. | 123,034 | ||||||
591 | JPMorgan Chase & Co. | 80,565 | ||||||
470 | PNC Financial Services Group, Inc. | 86,691 | ||||||
1,739 | Truist Financial Corp. | 98,601 | ||||||
2,744 | Wells Fargo & Co. | 132,974 | ||||||
|
| |||||||
656,490 | ||||||||
|
| |||||||
Building Products – 1.04% | ||||||||
806 | Johnson Controls International Plc | 52,849 | ||||||
|
| |||||||
Capital Markets – 3.24% | ||||||||
1,763 | Bank of New York Mellon Corp. | 87,498 | ||||||
887 | State Street Corp. | 77,275 | ||||||
|
| |||||||
164,773 | ||||||||
|
| |||||||
Chemicals – 2.83% | ||||||||
1,626 | Corteva, Inc. | 93,463 | ||||||
408 | Westlake Corp. | 50,347 | ||||||
|
| |||||||
143,810 | ||||||||
|
| |||||||
Communications Equipment – 1.15% | ||||||||
1,047 | Cisco Systems, Inc. | 58,381 | ||||||
|
| |||||||
Consumer Finance – 1.92% | ||||||||
2,062 | OneMain Holdings, Inc. | 97,759 | ||||||
|
| |||||||
Diversified Financial Services – 1.51% | ||||||||
218 | Berkshire Hathaway, Inc. – Class B(a) | 76,934 | ||||||
|
| |||||||
Electric Utilities – 0.74% | ||||||||
562 | ALLETE, Inc. | 37,643 | ||||||
|
| |||||||
Electrical Equipment – 1.93% | ||||||||
1,001 | Emerson Electric Co. | 98,148 | ||||||
|
|
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – 2.60% | ||||||||
1,233 | Avnet, Inc. | $ | 50,048 | |||||
4,415 | Flex Ltd.(a) | 81,898 | ||||||
|
| |||||||
131,946 | ||||||||
|
| |||||||
Energy Equipment & Services – 2.86% | ||||||||
3,841 | Halliburton Co. | 145,459 | ||||||
|
| |||||||
Food Products – 1.93% | ||||||||
1,126 | Ingredion, Inc. | 98,131 | ||||||
|
| |||||||
Health Care Providers & Services – 12.34% | ||||||||
1,430 | Cardinal Health, Inc. | 81,081 | ||||||
574 | Cigna Corp. | 137,536 | ||||||
1,294 | CVS Health Corp. | 130,966 | ||||||
284 | HCA Healthcare, Inc. | 71,176 | ||||||
243 | Laboratory Corp. of America Holdings(a) | 64,070 | ||||||
464 | McKesson Corp. | 142,044 | ||||||
|
| |||||||
626,873 | ||||||||
|
| |||||||
Health Care Technology – 1.08% | ||||||||
2,525 | Change Healthcare, Inc.(a) | 55,045 | ||||||
|
| |||||||
Household Durables – 3.01% | ||||||||
638 | Mohawk Industries, Inc.(a) | 79,239 | ||||||
2,708 | Taylor Morrison Home Corp.(a) | 73,712 | ||||||
|
| |||||||
152,951 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.84% | ||||||||
286 | 3M Co. | 42,580 | ||||||
|
| |||||||
Insurance – 5.92% | ||||||||
1,923 | American International Group, Inc. | 120,707 | ||||||
817 | Loews Corp. | 52,958 | ||||||
2,830 | Old Republic International Corp. | 73,212 | ||||||
229 | Willis Towers Watson Plc | 54,094 | ||||||
|
| |||||||
300,971 | ||||||||
|
| |||||||
Interactive Media & Services – 1.27% | ||||||||
23 | Alphabet, Inc. – Class C(a) | 64,239 | ||||||
|
| |||||||
IT Services – 6.83% | ||||||||
1,604 | Amdocs Ltd. | 131,865 | ||||||
1,046 | Cognizant Technology Solutions Corp. – Class A | 93,795 | ||||||
1,197 | Fiserv, Inc.(a) | 121,376 | ||||||
|
| |||||||
347,036 | ||||||||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
77
Brandes U.S. Value Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
Machinery – 0.99% | ||||||||
3,322 | Gates Industrial Corp. Plc(a) | $ | 50,029 | |||||
|
| |||||||
Media – 6.32% | ||||||||
2,950 | Comcast Corp. – Class A | 138,119 | ||||||
2,003 | Fox Corp. – Class B | 72,669 | ||||||
1,300 | Omnicom Group, Inc. | 110,344 | ||||||
|
| |||||||
321,132 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 5.34% | ||||||||
1,144 | Chevron Corp. | 186,278 | ||||||
3,154 | World Fuel Services Corp. | 85,284 | ||||||
|
| |||||||
271,562 | ||||||||
|
| |||||||
Pharmaceuticals – 7.01% | ||||||||
528 | Johnson & Johnson | 93,577 | ||||||
1,648 | Merck & Co., Inc. | 135,218 | ||||||
2,463 | Pfizer, Inc. | 127,510 | ||||||
|
| |||||||
356,305 | ||||||||
|
|
Shares | Value | |||||||
Semiconductors & Semiconductor Equipment – 3.09% | ||||||||
240 | Applied Materials, Inc. | $ | 31,632 | |||||
839 | Micron Technology, Inc. | 65,350 | ||||||
483 | Qorvo, Inc.(a) | 59,940 | ||||||
|
| |||||||
156,922 | ||||||||
|
| |||||||
Software – 1.12% | ||||||||
92 | Microsoft Corp. | 28,364 | ||||||
346 | Oracle Corp. | 28,625 | ||||||
|
| |||||||
56,989 | ||||||||
|
| |||||||
Specialty Retail – 1.33% | ||||||||
33 | AutoZone, Inc.(a) | 67,471 | ||||||
|
| |||||||
| TOTAL COMMON STOCKS | $ | 4,981,404 | |||||
|
|
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 2.10% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%, (b) | 106,638 | $ | 106,638 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | $ | 106,638 | ||||||
|
| |||||||
Total Investments (Cost $5,205,324) – 100.12% | $ | 5,088,042 | ||||||
Liabilities in Excess of Other Assets – (0.12)% | (6,006 | ) | ||||||
|
| |||||||
TOTAL NET ASSETS – 100.00% | $ | 5,082,036 | ||||||
|
|
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS® ), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
78
Brandes U.S. Value Fund
SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2022
COMMON STOCKS | ||||
Ireland | 2.10 | % | ||
Singapore | 1.61 | % | ||
United Kingdom | 0.99 | % | ||
United States | 93.32 | % | ||
|
| |||
TOTAL COMMON STOCKS | 98.02 | % | ||
|
| |||
SHORT-TERM INVESTMENTS | 2.10 | % | ||
|
| |||
TOTAL INVESTMENTS | 100.12 | % | ||
Liabilities in Excess of Other Assets | (0.12 | )% | ||
|
| |||
TOTAL NET ASSETS | 100.00 | % | ||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
79
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)
Shares | Value | |||||||
COMMON STOCKS – 0.00% | ||||||||
Household Durables – 0.00% | ||||||||
Urbi Desarrollos Urbanos SAB de CV (a) | 1,564 | $ | 530 | |||||
|
| |||||||
TOTAL COMMON STOCKS (Cost $292,050) | $ | 530 | ||||||
|
| |||||||
Principal Amount | Value | |||||||
FEDERAL AND FEDERALLY SPONSORED CREDITS – 4.99% | ||||||||
Federal Home Loan Mortgage Corporation – 1.62% | ||||||||
Pool A9-3505 4.500%, 8/1/2040 | $ | 44,524 | $ | 47,413 | ||||
Pool G0-6018 6.500%, 4/1/2039 | 13,934 | 15,152 | ||||||
Pool G1-8578 3.000%, 12/1/2030 | 607,749 | 613,067 | ||||||
Pool SD-8001 3.500%, 7/1/2049 | 194,701 | 195,763 | ||||||
Pool SD-8003 4.000%, 7/1/2049 | 240,630 | 245,938 | ||||||
|
| |||||||
1,117,333 | ||||||||
|
| |||||||
Federal National Mortgage Association – 3.37% | ||||||||
Pool 934124 5.500%, 7/1/2038 | 35,932 | 39,595 | ||||||
Pool AL9865 3.000%, 2/1/2047 | 713,596 | 708,464 | ||||||
Pool AS6201 3.500%, 11/1/2045 | 237,549 | 242,071 | ||||||
Pool BJ2553 3.500%, 12/1/2047 | 198,956 | 201,411 | ||||||
Pool BN6683 3.500%, 6/1/2049 | 393,514 | 395,553 | ||||||
Pool CA1624 3.000%, 4/1/2033 | 472,120 | 477,031 | ||||||
Pool MA0918 4.000%, 12/1/2041 | 95,053 | 99,194 | ||||||
Pool MA3687 4.000%, 6/1/2049 | 162,315 | 165,897 | ||||||
|
| |||||||
2,329,216 | ||||||||
|
| |||||||
TOTAL FEDERAL AND FEDERALLY SPONSORED CREDITS (Cost $3,425,361) | $ | 3,446,549 | ||||||
|
| |||||||
OTHER MORTGAGE RELATED SECURITIES – 0.00% | ||||||||
Collateralized Mortgage Obligations – 0.00% | ||||||||
Wells Fargo Mortgage Backed Securities Trust Series 2006-AR14 2.915%, 10/25/2036(b) | $ | 423 | $ | 395 | ||||
|
| |||||||
TOTAL OTHER MORTGAGE RELATED SECURITIES (Cost $416) | $ | 395 | ||||||
|
| |||||||
US GOVERNMENTS – 53.68% | ||||||||
Sovereign – 53.68% | ||||||||
United States Treasury Note | ||||||||
2.375%, 8/15/2024 | $ | 2,660,000 | $ | 2,653,870 | ||||
2.250%, 2/15/2027 | 9,075,000 | 8,979,996 | ||||||
2.375%, 5/15/2029 | 15,900,000 | 15,854,039 | ||||||
United States Treasury Bond | ||||||||
4.750%, 2/15/2037 | 5,775,000 | 7,534,570 | ||||||
3.500%, 2/15/2039 | 1,750,000 | 2,004,980 | ||||||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
80
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Principal Amount | Value | |||||||
TOTAL US GOVERNMENTS (Cost $ 38,323,129) | $ | 37,027,455 | ||||||
|
| |||||||
CONVERTIBLE BONDS – 1.59% | ||||||||
Technology – 1.59% | ||||||||
MicroStrategy, Inc. 0.000%, 2/15/2027(c) | $ | 1,540,000 | $ | 1,100,142 | ||||
|
| |||||||
TOTAL CONVERTIBLE BONDS (Cost $ 1,137,176) | $ | 1,100,142 | ||||||
|
| |||||||
CORPORATE BONDS – 35.50% | ||||||||
Banks – 7.06% | ||||||||
Charles Schwab Corp. 5.375% (U.S. Treasury Yield Curve Rate CMT 5Y + 4.971%), Perpetual(d) | $ | 465,000 | $ | 478,950 | ||||
Citigroup, Inc. 4.400%, 6/10/2025 | 730,000 | 750,949 | ||||||
Fifth Third Bancorp 8.250%, 3/1/2038 | 175,000 | 258,537 | ||||||
Goldman Sachs Group, Inc. 3.800% (U.S. Treasury Yield Curve Rate CMT 5Y + 2.969%), Perpetual(d) | 585,000 | 542,222 | ||||||
JPMorgan Chase & Co. 3.769% (3M LIBOR + 3.470%), Perpetual(d) | 1,317,000 | 1,317,000 | ||||||
USB Capital IX 3.500% (3M LIBOR + 1.020%, minimum of 3.500%), Perpetual(d) | 1,830,000 | 1,520,037 | ||||||
|
| |||||||
4,867,695 | ||||||||
|
| |||||||
Commercial Services & Supplies – 1.94% | ||||||||
Iron Mountain, Inc. 4.875%, 9/15/2027(e) | 645,000 | 637,744 | ||||||
Travel + Leisure Co. 6.625%, 7/31/2026(e) | 670,000 | 698,475 | ||||||
|
| |||||||
1,336,219 | ||||||||
|
| |||||||
Consumer Products – 8.34% | ||||||||
Avon Products, Inc. 6.500%, 3/15/2023 | 1,625,000 | 1,639,332 | ||||||
Coty, Inc. 5.000%, 4/15/2026(e) | 821,000 | 799,449 | ||||||
Ford Motor Credit Co. LLC | ||||||||
3.350%, 11/1/2022 | 370,000 | 370,851 | ||||||
3.375%, 11/13/2025 | 350,000 | 342,106 | ||||||
Pilgrim’s Pride Corp. | ||||||||
5.875%, 9/30/2027(e) | 210,000 | 211,972 | ||||||
4.250%, 4/15/2031(e) | 625,000 | 578,125 | ||||||
PulteGroup, Inc. 5.500%, 3/1/2026 | 980,000 | 1,042,583 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
81
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Principal Amount | Value | |||||||
Toll Brothers Finance Corp. 4.875%, 11/15/2025 | $ | 745,000 | $ | 767,166 | ||||
|
| |||||||
5,751,584 | ||||||||
|
| |||||||
Containers & Packaging – 0.61% | ||||||||
Sealed Air Corp. 4.000%, 12/1/2027(e) | 430,000 | 419,250 | ||||||
|
| |||||||
Electric Utilities – 1.54% | ||||||||
American Transmission Systems, Inc. 2.650%, 1/15/2032(e) | 600,000 | 554,518 | ||||||
Commonwealth Edison Co. 5.900%, 3/15/2036 | 175,000 | 214,801 | ||||||
FirstEnergy Corp. 7.375%, 11/15/2031 | 240,000 | 296,007 | ||||||
|
| |||||||
1,065,326 | ||||||||
|
| |||||||
Hardware – 0.45% | ||||||||
Mauser Packaging Solutions Holding Co. 7.250%, 4/15/2025(e) | 310,000 | 307,244 | ||||||
|
| |||||||
Health Care Facilities & Services – 1.51% | ||||||||
Tenet Healthcare Corp. 4.875%, 1/1/2026(e) | 1,030,000 | 1,039,013 | ||||||
|
| |||||||
Industrial Services – 2.36% | ||||||||
Continental Airlines Pass Through Trust Series 2007-1 5.983%, 4/19/2022 | 6,008 | 6,017 | ||||||
Prime Security Services Borrower LLC | ||||||||
5.750%, 4/15/2026(e) | 715,000 | 729,425 | ||||||
6.250%, 1/15/2028(e) | 915,000 | 895,414 | ||||||
|
| |||||||
1,630,856 | ||||||||
|
| |||||||
Media – 1.53% | ||||||||
Charter Communications Operating LLC 4.908%, 7/23/2025 | 295,000 | 305,918 | ||||||
Netflix, Inc. 4.375%, 11/15/2026 | 720,000 | 748,753 | ||||||
|
| |||||||
1,054,671 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 3.44% | ||||||||
BP Capital Markets Plc 3.506%, 3/17/2025 | 810,000 | 825,421 | ||||||
Continental Resources, Inc. | ||||||||
4.500%, 4/15/2023 | 355,000 | 359,260 | ||||||
4.375%, 1/15/2028 | 215,000 | 217,967 |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
82
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Principal Amount | Value | |||||||
Range Resources Corp. 4.875%, 5/15/2025 | $ | 960,000 | $ | 971,679 | ||||
|
| |||||||
2,374,327 | ||||||||
|
| |||||||
Technology – 1.78% | ||||||||
VMware, Inc. 4.500%, 5/15/2025 | 215,000 | 221,470 | ||||||
3.900%, 8/21/2027 | 995,000 | 1,007,859 | ||||||
|
| |||||||
1,229,329 | ||||||||
|
| |||||||
Telecommunications – 4.40% | ||||||||
AT&T, Inc. 3.000%, 6/30/2022 | 1,630,000 | 1,631,878 | ||||||
Sprint Spectrum Co. LLC 5.152%, 3/20/2028(e) | 415,000 | 436,993 | ||||||
Telecom Italia Capital SA 6.375%, 11/15/2033 | 695,000 | 664,232 | ||||||
T-Mobile USA, Inc. 4.750%, 2/1/2028 | 300,000 | 304,920 | ||||||
|
| |||||||
3,038,023 | ||||||||
|
| |||||||
Transportation & Logistics – 0.54% | ||||||||
Allison Transmission, Inc. 4.750%, 10/1/2027(e) | 380,000 | 373,825 | ||||||
|
| |||||||
TOTAL CORPORATE BONDS (Cost $24,720,007) | $ | 24,487,362 | ||||||
|
| |||||||
ASSET BACKED SECURITIES – 1.75% | ||||||||
Student Loan – 1.75% | ||||||||
SLM Private Credit Student Loan Trust Series 2007-A, 1.066%, (3M LIBOR + 0.240%), 12/16/2041(d) | $ | 179,794 | $ | 174,314 | ||||
SLM Private Credit Student Loan Trust Series 2004-B, 1.256%, (3M LIBOR + 0.430%), 9/15/2033(d) | 300,000 | 289,381 | ||||||
SLM Private Credit Student Loan Trust Series 2005-A, 1.136%, (3M LIBOR + 0.310%), 12/15/2038(d) | 293,220 | 286,952 | ||||||
SLM Private Credit Student Loan Trust Series 2006-A, 1.116%, (3M LIBOR + 0.290%), 6/15/2039(d) | 477,182 | 458,843 | ||||||
|
| |||||||
TOTAL ASSET BACKED SECURITIES (Cost $1,160,817) | $ | 1,209,490 | ||||||
|
| |||||||
FOREIGN ISSUER BONDS – 0.65% | ||||||||
Materials – 0.37% | ||||||||
Methanex Corp., 5.125%, 10/15/2027 | $ | 250,000 | $ | 251,250 | ||||
|
| |||||||
Telecommunications – 0.28% | ||||||||
SoftBank Group Corp., 4.750%, 9/19/2024 | 200,000 | 195,000 | ||||||
|
| |||||||
TOTAL FOREIGN ISSUER BONDS (Cost $458,519) | $ | 446,250 | ||||||
|
|
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
83
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
Shares | Value | |||||||
SHORT-TERM INVESTMENTS – 1.23% | ||||||||
Money Market Funds – 1.23% | ||||||||
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(f) | 846,688 | $ | 846,688 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $846,688) | $ | 846,688 | ||||||
�� |
|
| ||||||
Total Investments (Cost $70,364,163) – 99.39% | $ | 68,564,861 | ||||||
Other Assets in Excess of Liabilities – 0.61% | 417,431 | |||||||
|
| |||||||
Total Net Assets – 100.00% | $ | 68,982,292 | ||||||
|
|
Percentages are stated as a percent of net assets.
LIBOR London Interbank Offered Rate
(a) | Non-income producing security. |
(b) | Variable rate security. The coupon is based on an underlying pool of loans. |
(c) | Zero coupon bond. |
(d) | Variable rate security. The coupon is based on a reference index and spread index. |
(e) | Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $7,681,446 which represented 11.14% of the net assets of the Fund. |
(f) | The rate shown is the annualized seven day yield as of March 31, 2022. |
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
84
Brandes Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)
The industry classifications represented in the Schedule of Investments are in accordance with Bloomberg Industry Classification Standards (BICS) or were otherwise determined by the Advisor to be appropriate. This information is unaudited.
The accompanying notes to financial statements are an integral part of these Schedule of Investments.
85
Brandes Investment Trust
STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2022 (Unaudited)
Brandes International Equity Fund | Brandes Global Equity Fund | |||||||
ASSETS | ||||||||
Investment in securities, at value(1), (2) | ||||||||
Unaffiliated issuers | $ | 656,205,544 | $ | 46,593,348 | ||||
Affiliated issuers | — | — | ||||||
Foreign Currency(1) | 255,001 | 25,767 | ||||||
Receivables: | ||||||||
Securities sold | — | — | ||||||
Fund shares sold | 386,368 | 1,557 | ||||||
Dividends and interest | 3,561,842 | 141,289 | ||||||
Tax reclaims | 1,695,468 | 51,883 | ||||||
Securities lending | 1,612 | 104 | ||||||
Receivable from service providers | 12,573 | 476 | ||||||
Prepaid expenses and other assets | 92,201 | 36,489 | ||||||
Due from Advisor | — | — | ||||||
|
|
|
|
| ||||
Total Assets | 662,210,609 | 46,850,913 | ||||||
|
|
|
|
| ||||
LIABILITIES | ||||||||
Payables: | ||||||||
Securities purchased | 74 | 7 | ||||||
Fund shares redeemed | 821,868 | 94,092 | ||||||
12b-1 Fee | 13,996 | 694 | ||||||
Trustee Fees | 19,151 | 1,351 | ||||||
Custodian Fee | 19,842 | 1,461 | ||||||
Foreign capital gains taxes | — | — | ||||||
Dividends payable | 28,008 | 927 | ||||||
Accrued expenses | 206,861 | 84,159 | ||||||
Due to Advisor | 373,061 | 24,332 | ||||||
|
|
|
|
| ||||
Total Liabilities | 1,482,861 | 207,023 | ||||||
|
|
|
|
| ||||
NET ASSETS | $ | 660,727,748 | $ | 46,643,890 | ||||
|
|
|
|
| ||||
COMPONENTS OF NET ASSETS | ||||||||
Paid in Capital | $ | 787,809,016 | $ | 38,646,614 | ||||
Total distributable earnings (loss) | (127,081,268 | ) | 7,997,276 | |||||
|
|
|
|
| ||||
Total Net Assets | $ | 660,727,748 | $ | 46,643,890 | ||||
|
|
|
|
| ||||
Net asset value, offering price and redemption proceeds per share | ||||||||
Class A Shares | ||||||||
Net Assets | $ | 45,730,851 | $ | 868,697 | ||||
Shares outstanding (unlimited shares authorized without par value) | 2,659,081 | 33,960 | ||||||
Offering and redemption price | $ | 17.20 | $ | 25.58 | ||||
|
|
|
|
| ||||
Maximum offering price per share* | $ | 18.25 | $ | 27.14 | ||||
|
|
|
|
| ||||
Class C Shares | ||||||||
Net Assets | $ | 8,211,196 | $ | 800,469 | ||||
Shares outstanding (unlimited shares authorized without par value) | 486,546 | 31,686 | ||||||
Offering and redemption price | $ | 16.88 | $ | 25.26 | ||||
|
|
|
|
| ||||
Class I Shares | ||||||||
Net Assets | $ | 554,269,978 | $ | 44,974,724 | ||||
Shares outstanding (unlimited shares authorized without par value) | 31,972,320 | 1,738,897 | ||||||
Offering and redemption price | $ | 17.34 | $ | 25.86 | ||||
|
|
|
|
| ||||
Class R6 Shares | ||||||||
Net Assets | $ | 52,515,723 | $ | N/A | ||||
Shares outstanding (unlimited shares authorized without par value) | 3,007,584 | N/A | ||||||
Offering and redemption price | $ | 17.46 | $ | N/A | ||||
|
|
|
|
| ||||
(1) Cost of: | ||||||||
Investments in securities | ||||||||
Unaffiliated issuers | $ | 709,778,752 | $ | 38,751,671 | ||||
Affiliated issuers | — | — | ||||||
Foreign currency | 254,966 | 25,767 | ||||||
(2) Market value of securities loaned of: | $ | 13,224,469 | $ | — |
* | Includes a sales load of 5.75% for the International, Global, Emerging Markets, International Small Cap, Small Cap Value, and U.S. Value Funds and 3.75% for the Core Plus Fund. (see Note 7 of the Notes to Financial Statements) |
The accompanying notes to financial statements are an integral part of this statement.
86
Brandes Investment Trust
STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2022 (Unaudited) (continued)
Brandes Emerging Markets Value Fund | Brandes International Small Cap Equity Fund | Brandes Small Cap Value Fund | Brandes U.S. Value Fund | Brandes Core Plus Fixed Income Fund | ||||||||||||||
$ | 1,074,013,416 | $ | 341,261,407 | $ | 3,717,920 | $ | 5,088,042 | $ | 68,564,861 | |||||||||
— | 877,489 | — | — | — | ||||||||||||||
182,722 | 132 | — | — | — | ||||||||||||||
8,230,337 | 1,542,437 | 27,509 | — | — | ||||||||||||||
867,153 | 213,957 | 28,468 | 5,582 | 90,903 | ||||||||||||||
6,059,674 | 1,883,153 | 3,697 | 6,014 | 497,736 | ||||||||||||||
184,109 | 393,952 | — | 117 | — | ||||||||||||||
— | 7,487 | — | — | — | ||||||||||||||
25,412 | 5,189 | — | — | 1,308 | ||||||||||||||
130,617 | 70,919 | 33,961 | 934 | 35,351 | ||||||||||||||
— | — | 6,620 | 5,564 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
1,089,693,440 | 346,256,122 | 3,818,175 | 5,106,253 | 69,190,159 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
10,992,831 | 1,257,401 | 30,079 | — | — | ||||||||||||||
4,229,047 | 879,103 | 14,479 | — | 76,074 | ||||||||||||||
43,042 | 15,682 | 181 | 22 | 178 | ||||||||||||||
33,908 | 10,686 | 87 | 10 | 2,155 | ||||||||||||||
57,628 | 18,018 | — | 90 | 886 | ||||||||||||||
926,804 | — | — | — | — | ||||||||||||||
1,280,304 | 9,815 | 1 | — | 1,692 | ||||||||||||||
384,327 | 195,105 | 36,496 | 24,095 | 126,157 | ||||||||||||||
851,370 | 279,320 | — | — | 725 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
18,799,261 | 2,665,130 | 81,323 | 24,217 | 207,867 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 1,070,894,179 | $ | 343,590,992 | $ | 3,736,852 | $ | 5,082,036 | $ | 68,982,292 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 1,466,166,758 | $ | 526,087,041 | $ | 3,528,407 | $ | 5,192,726 | $ | 72,155,859 | |||||||||
(395,272,579 | ) | (182,496,049 | ) | 208,445 | (110,690 | ) | (3,173,567 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 1,070,894,179 | $ | 343,590,992 | $ | 3,736,852 | $ | 5,082,036 | $ | 68,982,292 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 177,146,654 | $ | 60,348,689 | $ | 889,280 | $ | 105,948 | $ | 818,095 | |||||||||
23,442,039 | 5,018,225 | 69,231 | 10,026 | 93,533 | ||||||||||||||
$ | 7.56 | $ | 12.03 | $ | 12.85 | $ | 10.57 | $ | 8.75 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 8.02 | $ | 12.76 | $ | 13.63 | $ | 11.21 | $ | 9.09 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 7,845,447 | $ | 4,411,821 | $ | N/A | $ | N/A | $ | N/A | |||||||||
1,048,641 | 381,248 | N/A | N/A | N/A | ||||||||||||||
$ | 7.48 | $ | 11.57 | $ | N/A | $ | N/A | $ | N/A | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 827,656,545 | $ | 266,173,255 | $ | 2,847,411 | $ | 4,975,982 | $ | 68,164,099 | |||||||||
108,865,383 | 22,010,888 | 219,362 | 471,520 | 7,717,282 | ||||||||||||||
$ | 7.60 | $ | 12.09 | $ | 12.98 | $ | 10.55 | $ | 8.83 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 58,245,533 | $ | 12,657,227 | $ | 161 | $ | 106 | $ | 98 | |||||||||
7,603,714 | 1,043,171 | 13 | 10 | 11 | ||||||||||||||
$ | 7.66 | $ | 12.13 | $ | 12.18 | $ | 10.57 | $ | 8.83 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||
$ | 1,299,398,452 | $ | 338,826,683 | $ | 3,490,072 | $ | 5,205,324 | $ | 70,364,163 | |||||||||
— | 30,882,874 | — | — | — | ||||||||||||||
182,729 | 132 | — | — | — | ||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — |
The accompanying notes to financial statements are an integral part of this statement.
87
Brandes Investment Trust
STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2022 (Unaudited)
Brandes International Equity Fund | Brandes Global Equity Fund | |||||||
INVESTMENT INCOME | ||||||||
Income | ||||||||
Dividend income | ||||||||
Unaffiliated issuers | $ | 9,720,871 | $ | 609,762 | ||||
Non Cash Dividends | — | — | ||||||
Less: Foreign taxes withheld | (802,218 | ) | (28,203 | ) | ||||
Interest income | — | 249 | ||||||
Income from securities lending | 30,143 | 709 | ||||||
|
|
|
|
|
| |||
Total Income | 8,948,796 | 582,517 | ||||||
|
|
|
|
|
| |||
Expenses | ||||||||
Advisory fees (Note 3) | 2,489,665 | 193,838 | ||||||
Custody fees | 39,305 | 2,454 | ||||||
Administration fees (Note 3) | 78,484 | 13,660 | ||||||
Insurance expense | 11,102 | 811 | ||||||
Legal fees | 32,823 | 2,376 | ||||||
Printing fees | 17,352 | 758 | ||||||
Miscellaneous | 41,186 | 6,298 | ||||||
Registration expense | 42,252 | 27,631 | ||||||
Trustees fees | 37,149 | 2,679 | ||||||
Transfer agent fees | 69,928 | 5,104 | ||||||
12b-1 Fees – Class A | 49,698 | 1,068 | ||||||
12b-1 Fees – Class C | 32,401 | 3,286 | ||||||
Shareholder Service Fees – Class C | 10,800 | 1,095 | ||||||
Sub-Transfer Agency Fees – Class I | 139,662 | 11,683 | ||||||
Auditing fees | 23,213 | 22,111 | ||||||
|
|
|
|
|
| |||
Total expenses | 3,115,020 | 294,852 | ||||||
Expenses waived by Advisor | (201,868 | ) | (45,819 | ) | ||||
Expenses recouped | — | — | ||||||
Expenses waived by Service Providers | (23,528 | ) | (1,255 | ) | ||||
|
|
|
|
|
| |||
Total net expenses | 2,889,624 | 247,778 | ||||||
|
|
|
|
|
| |||
Net investment income | 6,059,172 | 334,739 | ||||||
|
|
|
|
|
| |||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||
Net realized gain (loss) on: | ||||||||
Unaffiliated investments | 1,060,378 | 677,818 | ||||||
Foreign currency transactions | (153,166 | ) | (2,010 | ) | ||||
|
|
|
|
|
| |||
Net realized gain (loss) | 907,212 | 675,808 | ||||||
|
|
|
|
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Unaffiliated investments (net of increase in estimated foreign capital gains taxes of $3,797,746 for the Emerging Markets Fund) | (30,843,777 | ) | (625,011 | ) | ||||
Affiliated investments | — | — | ||||||
Foreign currency transactions | 25,817 | (2,231 | ) | |||||
|
|
|
|
|
| |||
Net change in unrealized appreciation (depreciation) | (30,817,960 | ) | (627,242 | ) | ||||
|
|
|
|
|
| |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | (29,910,748 | ) | 48,566 | |||||
|
|
|
|
|
| |||
Net increase (decrease) in net assets resulting from operations | $ | (23,851,576 | ) | $ | 383,305 | |||
|
|
|
|
|
|
* | Commencement of operations on October 1, 2021. |
The accompanying notes to financial statements are an integral part of this statement.
88
Brandes Investment Trust
STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2022 (Unaudited) (continued)
Brandes | Brandes International Small Cap Equity Fund | Brandes Small Cap Value Fund | Brandes U.S. Value Fund* | Brandes Core Plus Fixed Income Fund | ||||||||||||||
$ | 20,726,166 | $ | 12,298,478 | $ | 66,832 | $ | 18,004 | $ | 85 | |||||||||
— | — | — | — | — | ||||||||||||||
(3,342,561 | ) | (1,728,430 | ) | (6,806 | ) | — | (2 | ) | ||||||||||
— | — | 25 | — | 1,008,366 | ||||||||||||||
— | 229,264 | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
17,383,605 | 10,799,312 | 60,051 | 18,004 | 1,008,449 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
5,824,500 | 1,768,638 | 10,289 | 4,353 | 134,302 | ||||||||||||||
110,448 | 38,099 | 3,122 | 467 | 1,732 | ||||||||||||||
137,735 | 47,782 | 8,865 | 4,523 | 16,640 | ||||||||||||||
22,228 | 6,712 | 42 | 5 | 1,388 | ||||||||||||||
62,991 | 19,191 | 133 | 11 | 3,866 | ||||||||||||||
48,823 | 14,773 | 75 | 262 | 2,174 | ||||||||||||||
89,523 | 35,924 | 2,900 | 17,207 | 6,840 | ||||||||||||||
49,719 | 40,342 | 27,703 | 2,587 | 27,803 | ||||||||||||||
70,378 | 21,250 | 156 | 18 | 4,333 | ||||||||||||||
129,180 | 39,226 | 310 | 166 | 8,084 | ||||||||||||||
257,993 | 80,812 | 871 | 34 | 2,223 | ||||||||||||||
35,237 | 18,240 | — | — | — | ||||||||||||||
11,746 | 6,080 | — | — | — | ||||||||||||||
236,084 | 72,448 | 561 | 236 | 18,742 | ||||||||||||||
23,864 | 22,917 | 20,465 | 21,032 | 21,578 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
7,110,449 | 2,232,434 | 75,492 | 50,901 | 249,705 | ||||||||||||||
(39,535 | ) | (6,384 | ) | (61,320 | ) | (45,211 | ) | (111,043 | ) | |||||||||
36,235 | — | — | — | — | ||||||||||||||
(47,208 | ) | (12,077 | ) | (28 | ) | — | (21,811 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
7,059,941 | 2,213,973 | 14,144 | 5,690 | 116,851 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
10,323,664 | 8,585,339 | 45,907 | 12,314 | 891,598 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(37,139,257 | ) | 10,252,949 | 55,307 | 4,452 | 157,346 | |||||||||||||
(178,667 | ) | (19,714 | ) | 376 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(37,317,924 | ) | 10,233,235 | 55,683 | 4,452 | 157,346 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(112,600,286 | ) | (58,584,189 | ) | (43,007 | ) | (117,282 | ) | (5,107,510 | ) | |||||||||
— | (418,431 | ) | — | — | — | |||||||||||||
(20,722 | ) | (24,231 | ) | 15 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(112,621,008 | ) | (59,026,851 | ) | (42,992 | ) | (117,282 | ) | (5,107,510 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
(149,938,932 | ) | (48,793,616 | ) | 12,691 | (112,830 | ) | (4,950,164 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ | (139,615,268 | ) | $ | (40,208,277 | ) | $ | 58,598 | $ | (100,516 | ) | $ | (4,058,566 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes to financial statements are an integral part of this statement.
89
Brandes Investment Trust
STATEMENT OF CHANGES IN NET ASSETS
Brandes International Equity | Brandes Global | |||||||||||||||
Fund | Equity Fund | |||||||||||||||
Six Months Ended March 31, 2022 (Unaudited) | �� | Year Ended September 30, 2021 | Six Months Ended March 31, 2022 (Unaudited) | Year Ended September 30, 2021 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 6,059,172 | $ | 19,498,943 | $ | 334,739 | $ | 1,021,630 | ||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | 1,060,378 | (474,713 | ) | 677,818 | 1,871,263 | |||||||||||
Foreign currency transactions | (153,166 | ) | (131,250 | ) | (2,010 | ) | (4,557 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (30,843,777 | ) | 154,701,750 | (625,011 | ) | 9,678,417 | ||||||||||
Foreign currency transactions | 25,817 | (29,853 | ) | (2,231 | ) | (3,044 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (23,851,576 | ) | 173,564,877 | 383,305 | 12,563,709 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
Distributions to shareholders | ||||||||||||||||
Class A | (647,712 | ) | (867,045 | ) | (36,642 | ) | (24,398 | ) | ||||||||
Class C | (104,154 | ) | (203,047 | ) | (36,326 | ) | (26,196 | ) | ||||||||
Class I | (8,025,880 | ) | (14,614,616 | ) | (2,009,739 | ) | (1,407,084 | ) | ||||||||
Class R6 | (760,201 | ) | (1,576,599 | ) | N/A | N/A | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Decrease in net assets from distributions | (9,537,947 | ) | (17,261,307 | ) | (2,082,707 | ) | (1,457,678 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from shares sold | 95,338,830 | 181,449,754 | 2,378,740 | 9,162,908 | ||||||||||||
Net asset value of shares issued on reinvestment of distributions | 9,351,063 | 16,741,706 | 2,069,801 | 1,446,229 | ||||||||||||
Cost of shares redeemed | (68,656,645 | ) | (175,603,810 | ) | (3,319,730 | ) | (4,707,060 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net increase (decrease) in net assets from capital share transactions | 36,033,248 | 22,587,650 | 1,128,811 | 5,902,077 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total increase (decrease) in net assets | 2,643,725 | 178,891,220 | (570,591 | ) | 17,008,108 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET ASSETS | ||||||||||||||||
Beginning of the Period | 658,084,023 | 479,192,803 | 47,214,481 | 30,206,373 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of the Period | $ | 660,727,748 | $ | 658,084,023 | $ | 46,643,890 | $ | 47,214,481 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes to financial statements are an integral part of this statement.
90
Brandes Investment Trust
STATEMENT OF CHANGES IN NET ASSETS (continued)
Brandes Emerging Markets | Brandes International Small | |||||||||||||||
Value Fund | Cap Equity Fund | |||||||||||||||
Six Months Ended 2022 | Year Ended September 30, 2021 | Six Months Ended 2022 | Year Ended September 30, 2021 | |||||||||||||
(Unaudited) |
| (Unaudited) |
| |||||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 10,323,664 | $ | 28,600,598 | $ | 8,585,339 | $ | 4,725,118 | ||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (37,139,257 | ) | 3,896,861 | 10,252,949 | 23,489,024 | |||||||||||
Foreign currency transactions | (178,667 | ) | (265,591 | ) | (19,714 | ) | (86,203 | ) | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (112,600,286 | ) | 224,737,828 | (59,002,620 | ) | 130,209,934 | ||||||||||
Foreign currency transactions | (20,722 | ) | 73,348 | (24,231 | ) | (27,266 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (139,615,268 | ) | 257,043,044 | (40,208,277 | ) | 158,310,607 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
DISTRIBUTIONS TO | ||||||||||||||||
SHAREHOLDERS | ||||||||||||||||
Distributions to shareholders | ||||||||||||||||
Class A | (3,221,170 | ) | (2,477,613 | ) | (2,751,254 | ) | (775,482 | ) | ||||||||
Class C | (128,667 | ) | (132,067 | ) | (192,412 | ) | (75,830 | ) | ||||||||
Class I | (15,338,947 | ) | (12,653,014 | ) | (12,328,933 | ) | (3,791,449 | ) | ||||||||
Class R6 | (1,078,028 | ) | (871,639 | ) | (585,337 | ) | (159,657 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Decrease in net assets from distributions | (19,766,812 | ) | (16,134,333 | ) | (15,857,936 | ) | (4,802,418 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||||||
Proceeds from shares sold | 183,328,234 | 362,787,961 | 27,180,271 | 66,727,719 | ||||||||||||
Net asset value of shares issued on reinvestment of distributions | 16,340,485 | 15,194,734 | 15,826,755 | 4,783,873 | ||||||||||||
Cost of shares redeemed | (267,886,937 | ) | (379,551,076 | ) | (48,183,750 | ) | (131,748,892 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net increase (decrease) in net assets from capital share transactions | (68,218,218 | ) | (1,568,381 | ) | (5,176,724 | ) | (60,237,300 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total increase (decrease) in net assets | (227,600,298 | ) | 239,340,330 | (61,242,937 | ) | 93,270,889 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET ASSETS | ||||||||||||||||
Beginning of the Period | 1,298,494,477 | 1,059,154,147 | 404,833,929 | 311,563,040 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
End of the Period | $ | 1,070,894,179 | $ | 1,298,494,477 | $ | 343,590,992 | $ | 404,833,929 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes to financial statements are an integral part of this statement.
91
Brandes Investment Trust
STATEMENT OF CHANGES IN NET ASSETS (continued)
Brandes | ||||||||||||
U.S. Value | ||||||||||||
Brandes Small Cap Value Fund | Fund | |||||||||||
Six Months Ended 2022 | Year Ended September 30, 2021 | Period Ended March 31, 2022(1) | ||||||||||
(Unaudited) |
| (Unaudited) | ||||||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 45,907 | $ | 11,005 | $ | 12,314 | ||||||
Net realized gain (loss) on: | ||||||||||||
Investments | 55,307 | 217,309 | 4,452 | |||||||||
Foreign currency transactions | 376 | (305 | ) | — | ||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (43,007 | ) | 300,796 | (117,282 | ) | |||||||
Foreign currency transactions | 15 | (15 | ) | — | ||||||||
|
|
|
|
|
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations | 58,598 | 528,790 | (100,516 | ) | ||||||||
|
|
|
|
|
|
|
|
| ||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||
Distributions to shareholders | ||||||||||||
Class A | (37,530 | ) | (1,309 | ) | (194 | ) | ||||||
Class C | N/A | N/A | N/A | |||||||||
Class I | (122,555 | ) | (19,384 | ) | (9,980 | ) | ||||||
Class R6 | (8 | ) | (2 | ) | N/A | |||||||
|
|
|
|
|
|
|
|
| ||||
Decrease in net assets from distributions | (160,093 | ) | (20,695 | ) | (10,174 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
CAPITAL SHARE TRANSACTIONS | ||||||||||||
Proceeds from shares sold | 2,957,105 | 2,067,659 | 5,320,733 | |||||||||
Net asset value of shares issued on reinvestment of distributions | 160,024 | 20,693 | 10,174 | |||||||||
Cost of shares redeemed | (1,408,313 | ) | (1,016,511 | ) | (138,181 | ) | ||||||
|
|
|
|
|
|
|
|
| ||||
Net increase (decrease) in net assets from capital share transactions | 1,708,816 | 1,071,841 | 5,192,726 | |||||||||
|
|
|
|
|
|
|
|
| ||||
Total increase (decrease) in net assets | 1,607,321 | 1,579,936 | 5,082,036 | |||||||||
|
|
|
|
|
|
|
|
| ||||
NET ASSETS | ||||||||||||
Beginning of the Period | 2,129,531 | 549,595 | — | |||||||||
|
|
|
|
|
|
|
|
| ||||
End of the Period | $ | 3,736,852 | $ | 2,129,531 | $ | 5,082,036 | ||||||
|
|
|
|
|
|
|
|
|
(1) | Commencement of operations on October 1, 2021. |
The accompanying notes to financial statements are an integral part of this statement.
92
Brandes Investment Trust
STATEMENT OF CHANGES IN NET ASSETS (continued)
Brandes Core Plus Fixed | ||||||||
Income Fund | ||||||||
Six Months Ended 2022 | Year Ended September 30, 2021 | |||||||
(Unaudited) |
| |||||||
INCREASE (DECREASE) IN NET ASSETS FROM: | ||||||||
OPERATIONS | ||||||||
Net investment income | $ | 891,598 | $ | 1,794,678 | ||||
Net realized gain (loss) on: | ||||||||
Investments | 157,346 | 2,224,588 | ||||||
Foreign currency transactions | — | — | ||||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | (5,107,510 | ) | (3,279,513 | ) | ||||
Foreign currency transactions | — | — | ||||||
|
|
|
|
|
| |||
Net increase (decrease) in net assets resulting from operations | (4,058,566 | ) | 739,753 | |||||
|
|
|
|
|
| |||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||
Distributions to shareholders | ||||||||
Class A | (18,783 | ) | (29,720 | ) | ||||
Class C | N/A | N/A | ||||||
Class I | (871,460 | ) | (2,138,336 | ) | ||||
Class R6 | (2 | ) | (4 | ) | ||||
| �� |
|
|
|
| |||
Decrease in net assets from distributions | (890,245 | ) | (2,168,060 | ) | ||||
|
|
|
|
|
| |||
CAPITAL SHARE TRANSACTIONS | ||||||||
Proceeds from shares sold | 7,054,292 | 19,386,128 | ||||||
Net asset value of shares issued on reinvestment of distributions | 879,280 | 2,121,069 | ||||||
Cost of shares redeemed | (13,118,900 | ) | (27,773,634 | ) | ||||
|
|
|
|
|
| |||
Net increase (decrease) in net assets from capital share transactions | (5,185,328 | ) | (6,266,437 | ) | ||||
|
|
|
|
|
| |||
Total increase (decrease) in net assets | (10,134,139 | ) | (7,694,744 | ) | ||||
|
|
|
|
|
| |||
NET ASSETS | ||||||||
Beginning of the Period | 79,116,431 | 86,811,175 | ||||||
|
|
|
|
|
| |||
End of the Period | $ | 68,982,292 | $ | 79,116,431 | ||||
|
|
|
|
|
|
The accompanying notes to financial statements are an integral part of this statement.
93
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net asset value, beginning of period | Net investment income(1) | Net unrealized | Total from investment operations | Dividends from net investment income | Net asset value, end of period | |||||||||||||||||||
Brandes International Equity Fund |
| |||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
3/31/2022 (Unaudited) | $18.12 | 0.15 | (0.78) | (0.63) | (0.29) | $17.20 | ||||||||||||||||||
9/30/2021 | $13.51 | 0.53 | 4.54 | 5.07 | (0.46) | $18.12 | ||||||||||||||||||
9/30/2020 | $16.02 | 0.26 | (2.40) | (2.14) | (0.37) | $13.51 | ||||||||||||||||||
9/30/2019 | $17.71 | 0.53 | (1.59) | (1.06) | (0.63) | $16.02 | ||||||||||||||||||
9/30/2018 | $17.48 | 0.36 | 0.17 | 0.53 | (0.30) | $17.71 | ||||||||||||||||||
9/30/2017 | $15.70 | 0.29 | 2.03 | 2.32 | (0.54) | $17.48 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
3/31/2022 (Unaudited) | $17.78 | 0.07 | (0.76) | (0.69) | (0.21) | $16.88 | ||||||||||||||||||
9/30/2021 | $13.27 | 0.43 | 4.47 | 4.90 | (0.39) | $17.78 | ||||||||||||||||||
9/30/2020 | $15.76 | 0.13 | (2.33) | (2.20) | (0.29) | $13.27 | ||||||||||||||||||
9/30/2019 | $17.47 | 0.40 | (1.58) | (1.18) | (0.53) | $15.76 | ||||||||||||||||||
9/30/2018 | $17.30 | 0.22 | 0.18 | 0.40 | (0.23) | $17.47 | ||||||||||||||||||
9/30/2017 | $15.58 | 0.17 | 2.00 | 2.17 | (0.45) | $17.30 | ||||||||||||||||||
Class I | ||||||||||||||||||||||||
3/31/2022 (Unaudited) | $18.21 | 0.17 | (0.78) | (0.61) | (0.26) | $17.34 | ||||||||||||||||||
9/30/2021 | $13.57 | 0.57 | 4.57 | 5.14 | (0.50) | $18.21 | ||||||||||||||||||
9/30/2020 | $16.07 | 0.27 | (2.37) | (2.10) | (0.40) | $13.57 | ||||||||||||||||||
9/30/2019 | $17.76 | 0.56 | (1.60) | (1.04) | (0.65) | $16.07 | ||||||||||||||||||
9/30/2018 | $17.52 | 0.40 | 0.16 | 0.56 | (0.32) | $17.76 | ||||||||||||||||||
9/30/2017 | $15.72 | 0.33 | 2.04 | 2.37 | (0.57) | $17.52 | ||||||||||||||||||
Class R6 | ||||||||||||||||||||||||
3/31/2022 (Unaudited) | $18.32 | 0.18 | (0.79) | (0.61) | (0.25) | $17.46 | ||||||||||||||||||
9/30/2021 | $13.64 | 0.57 | 4.62 | 5.19 | (0.51) | $18.32 | ||||||||||||||||||
9/30/2020 | $16.15 | 0.36 | (2.47) | (2.11) | (0.40) | $13.64 | ||||||||||||||||||
9/30/2019 | $17.83 | 0.59 | (1.61) | (1.02) | (0.66) | $16.15 | ||||||||||||||||||
9/30/2018 | $17.56 | 0.42 | 0.18 | 0.60 | (0.33) | $17.83 | ||||||||||||||||||
9/30/2017 | $15.74 | 0.35 | 2.04 | 2.39 | (0.57) | $17.56 |
(1) | Net investment income per share has been calculated based on average shares outstanding during the period. |
(2) | The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements). |
(3) | After fees waived and expenses absorbed or recouped by the Advisor, where applicable. |
(4) | Not annualized. |
(5) | Annualized. |
(6) | Includes expenses not covered by the Trust’s expense limitation agreement. |
(7) | As of June 30, 2019, the expense cap for the class changed from 1.00% to 0.85%. |
(8) | As of June 30, 2019, the expense cap for the class changed from 0.82% to 0.75%. |
The accompanying notes to financial statements are an integral part of this statement.
94
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Total return(2) | Net assets, end of period (millions) | Ratio of net expenses to average net assets(3) | Ratio of net net assets(3) | Ratio of net assets | Ratio of net net assets | Portfolio turnover rate | |||||||||||||||||||||||||||
(3.54) | %(4) | $ | 45.7 | 1.11 | %(5) | 1.62 | %(5) | 1.12 | %(5) | 1.61 | %(5) | 11.02 | %(4) | ||||||||||||||||||||
37.55 | % | $ | 38.2 | 1.10 | % | 3.03 | % | 1.11 | % | 3.02 | % | 30.41 | % | ||||||||||||||||||||
(13.42) | % | $ | 22.1 | 1.13 | % | 1.80 | % | 1.14 | % | 1.79 | % | 23.20 | % | ||||||||||||||||||||
(5.98) | % | $ | 32.0 | 1.16 | % | 3.21 | % | 1.16 | % | 3.21 | % | 14.43 | % | ||||||||||||||||||||
3.02 | % | $ | 34.9 | 1.16 | % | 2.00 | % | 1.16 | % | 2.00 | % | 20.37 | % | ||||||||||||||||||||
15.07 | % | $ | 31.5 | 1.18 | %(6) | 1.77 | % | 1.18 | %(6) | 1.77 | % | 33.82 | % | ||||||||||||||||||||
(3.90) | %(4) | $ | 8.2 | 1.86 | %(5) | 0.82 | %(5) | 1.87 | %(5) | 0.81 | %(5) | 11.02 | %(4) | ||||||||||||||||||||
36.90 | % | $ | 8.8 | 1.54 | % | 2.51 | % | 1.56 | % | 2.49 | % | 30.41 | % | ||||||||||||||||||||
(14.06) | % | $ | 7.6 | 1.88 | % | 1.01 | % | 1.89 | % | 1.00 | % | 23.20 | % | ||||||||||||||||||||
(6.73) | % | $ | 13.1 | 1.91 | % | 2.46 | % | 1.91 | % | 2.46 | % | 14.43 | % | ||||||||||||||||||||
2.31 | % | $ | 18.3 | 1.91 | % | 1.25 | % | 1.91 | % | 1.25 | % | 20.37 | % | ||||||||||||||||||||
14.19 | % | $ | 17.9 | 1.93 | %(6) | 1.01 | % | 1.93 | %(6) | 1.01 | % | 33.82 | % | ||||||||||||||||||||
(3.39) | %(4) | $ | 554.3 | 0.85 | %(5) | 1.85 | %(5) | 0.92 | %(5) | 1.78 | %(5) | 11.02 | %(4) | ||||||||||||||||||||
37.87 | % | $ | 552.2 | 0.85 | % | 3.25 | % | 0.91 | % | 3.19 | % | 30.41 | % | ||||||||||||||||||||
(13.13) | % | $ | 401.7 | 0.85 | % | 2.03 | % | 0.94 | % | 1.94 | % | 23.20 | % | ||||||||||||||||||||
(5.82) | % | $ | 622.4 | 0.94 | %(7) | 3.43 | % | 0.96 | %(7) | 3.41 | % | 14.43 | % | ||||||||||||||||||||
3.23 | % | $ | 664.7 | 0.96 | % | 2.20 | % | 0.96 | % | 2.20 | % | 20.37 | % | ||||||||||||||||||||
15.33 | % | $ | 523.1 | 0.98 | %(6) | 1.96 | % | 0.98 | %(6) | 1.96 | % | 33.82 | % | ||||||||||||||||||||
(3.38) | %(4) | $ | 52.5 | 0.75 | %(5) | 1.94 | %(5) | 0.87 | %(5) | 1.82 | %(5) | 11.02 | %(4) | ||||||||||||||||||||
38.03 | % | $ | 58.8 | 0.75 | % | 3.28 | % | 0.86 | % | 3.17 | % | 30.41 | % | ||||||||||||||||||||
(13.08) | % | $ | 47.8 | 0.75 | % | 2.35 | % | 0.89 | % | 2.21 | % | 23.20 | % | ||||||||||||||||||||
(5.69) | % | $ | 35.9 | 0.80 | %(8) | 3.57 | % | 0.91 | %(8) | 3.46 | % | 14.43 | % | ||||||||||||||||||||
3.44 | % | $ | 24.6 | 0.82 | % | 2.34 | % | 0.91 | % | 2.25 | % | 20.37 | % | ||||||||||||||||||||
15.48 | % | $ | 38.5 | 0.83 | %(6) | 2.12 | % | 0.93 | %(6) | 2.02 | % | 33.82 | % |
The accompanying notes to financial statements are an integral part of this statement.
95
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net | ||||||||||||||||||||||||||||||
Net asset | realized and | Dividends | Dividends | |||||||||||||||||||||||||||
value, | Net | unrealized | Total from | from net | from net | |||||||||||||||||||||||||
beginning | investment | gain (loss) on | investment | investment | realized | |||||||||||||||||||||||||
of period | income(1) | investments | operations | income | gains | |||||||||||||||||||||||||
Brandes Global Equity Fund | ||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 26.53 | 0.15 | 0.07 | 0.22 | (0.27 | ) | (0.90 | ) | |||||||||||||||||||||
9/30/2021 | $ | 19.30 | 0.55 | 7.54 | 8.09 | (0.56 | ) | (0.30 | ) | |||||||||||||||||||||
9/30/2020 | $ | 21.75 | 0.28 | (2.33 | ) | (2.05 | ) | (0.40 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 24.61 | 0.47 | (1.80 | ) | (1.33 | ) | (0.48 | ) | (1.05 | ) | |||||||||||||||||||
9/30/2018 | $ | 24.42 | 0.43 | 0.69 | 1.12 | (0.42 | ) | (0.51 | ) | |||||||||||||||||||||
9/30/2017 | $ | 21.21 | 0.34 | 3.28 | 3.62 | (0.41 | ) | — | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 26.25 | 0.05 | 0.06 | 0.11 | (0.20 | ) | (0.90 | ) | |||||||||||||||||||||
9/30/2021 | $ | 19.16 | 0.37 | 7.47 | 7.84 | (0.45 | ) | (0.30 | ) | |||||||||||||||||||||
9/30/2020 | $ | 21.60 | 0.17 | (2.35 | ) | (2.18 | ) | (0.26 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 24.45 | 0.30 | (1.78 | ) | (1.48 | ) | (0.32 | ) | (1.05 | ) | |||||||||||||||||||
9/30/2018 | $ | 24.28 | 0.24 | 0.69 | 0.93 | (0.25 | ) | (0.51 | ) | |||||||||||||||||||||
9/30/2017 | $ | 21.09 | 0.18 | 3.25 | 3.43 | (0.24 | ) | — | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 26.78 | 0.19 | 0.06 | 0.25 | (0.27 | ) | (0.90 | ) | |||||||||||||||||||||
9/30/2021 | $ | 19.46 | 0.64 | 7.59 | 8.23 | (0.61 | ) | (0.30 | ) | |||||||||||||||||||||
9/30/2020 | $ | 21.91 | 0.38 | (2.39 | ) | (2.01 | ) | (0.44 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 24.77 | 0.53 | (1.81 | ) | (1.28 | ) | (0.53 | ) | (1.05 | ) | |||||||||||||||||||
9/30/2018 | $ | 24.57 | 0.49 | 0.70 | 1.19 | (0.48 | ) | (0.51 | ) | |||||||||||||||||||||
9/30/2017 | $ | 21.33 | 0.41 | 3.30 | 3.71 | (0.47 | ) | — |
(1) | Net investment income per share has been calculated based on average shares outstanding during the period. |
(2) | After fees waived and expenses absorbed or recouped by the Advisor, where applicable. |
(3) | Annualized. |
(4) | Not annualized. |
(5) | Includes expenses not covered by the Trust’s expense limitation agreement. |
The accompanying notes to financial statements are an integral part of this statement.
96
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net asset value, end of period | Total return | Net assets, end of period (millions) | Ratio of net expenses to average net assets(2) | Ratio of net investment income to average net assets(2) | Ratio of expenses (prior to reimburse- ments) to average net assets | Ratio of net investment income (prior to reimburse- ments) to average net assets | Portfolio turnover rate | |||||||||||||||||||||||||||||||
$ | 25.58 | 0.75 | % | $ | 0.9 | 1.25 | %(3) | 1.15 | %(3) | 1.40 | %(3) | 1.00 | %(3) | 7.27 | %(4) | |||||||||||||||||||||||
$ | 26.53 | 42.30 | % | $ | 0.8 | 1.25 | % | 2.21 | % | 1.41 | % | 2.05 | % | 20.46 | % | |||||||||||||||||||||||
$ | 19.30 | (9.41 | )% | $ | 0.9 | 1.25 | % | 1.56 | % | 1.58 | % | 1.23 | % | 17.16 | % | |||||||||||||||||||||||
$ | 21.75 | (5.22 | )% | $ | 1.5 | 1.25 | % | 2.11 | % | 1.56 | % | 1.81 | % | 12.11 | % | |||||||||||||||||||||||
$ | 24.61 | 4.68 | % | $ | 3.4 | 1.25 | % | 1.72 | % | 1.40 | % | 1.57 | % | 8.89 | % | |||||||||||||||||||||||
$ | 24.42 | 17.20 | % | $ | 5.8 | 1.26 | %(5) | 1.52 | % | 1.45 | %(5) | 1.33 | % | 17.42 | % | |||||||||||||||||||||||
$ | 25.26 | 0.36 | % | $ | 0.8 | 2.00 | %(3) | 0.39 | %(3) | 2.15 | %(3) | 0.24 | %(3) | 7.27 | %(4) | |||||||||||||||||||||||
$ | 26.25 | 41.21 | % | $ | 0.9 | 2.00 | % | 1.50 | % | 1.78 | % | 1.72 | % | 20.46 | % | |||||||||||||||||||||||
$ | 19.16 | (10.08 | )% | $ | 0.7 | 2.00 | % | 0.84 | % | 2.32 | % | 0.52 | % | 17.16 | % | |||||||||||||||||||||||
$ | 21.60 | (5.91 | )% | $ | 1.2 | 2.00 | % | 1.37 | % | 2.32 | % | 1.05 | % | 12.11 | % | |||||||||||||||||||||||
$ | 24.45 | 3.88 | % | $ | 1.6 | 2.00 | % | 0.97 | % | 2.15 | % | 0.82 | % | 8.89 | % | |||||||||||||||||||||||
$ | 24.28 | 16.31 | % | $ | 1.7 | 2.01 | %(5) | 0.77 | % | 2.21 | %(5) | 0.57 | % | 17.42 | % | |||||||||||||||||||||||
$ | 25.86 | 0.86 | % | $ | 45.0 | 1.00 | %(3) | 1.41 | %(3) | 1.20 | %(3) | 1.21 | %(3) | 7.27 | %(4) | |||||||||||||||||||||||
$ | 26.78 | 42.67 | % | $ | 45.5 | 1.00 | % | 2.52 | % | 1.20 | % | 2.32 | % | 20.46 | % | |||||||||||||||||||||||
$ | 19.46 | (9.18 | )% | $ | 28.6 | 1.00 | % | 1.83 | % | 1.36 | % | 1.47 | % | 17.16 | % | |||||||||||||||||||||||
$ | 21.91 | (4.98 | )% | $ | 33.4 | 1.00 | % | 2.37 | % | 1.36 | % | 2.00 | % | 12.11 | % | |||||||||||||||||||||||
$ | 24.77 | 4.95 | % | $ | 62.6 | 1.00 | % | 1.97 | % | 1.20 | % | 1.77 | % | 8.89 | % | |||||||||||||||||||||||
$ | 24.57 | 17.48 | % | $ | 61.7 | 1.01 | %(5) | 1.77 | % | 1.26 | %(5) | 1.52 | % | 17.42 | % |
The accompanying notes to financial statements are an integral part of this statement.
97
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net | ||||||||||||||||||||||||||||||
Net asset | realized and | Dividends | ||||||||||||||||||||||||||||
value, | Net | unrealized | Total from | from net | Net asset | |||||||||||||||||||||||||
beginning | investment | gain (loss) on | investment | investment | value, end | |||||||||||||||||||||||||
of period | income(1) | investments | operations | income | of period | |||||||||||||||||||||||||
Brandes Emerging Markets Value Fund | ||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 8.66 | 0.06 | (1.03 | ) | (0.97 | ) | (0.13 | ) | $ | 7.56 | |||||||||||||||||||
9/30/2021 | $ | 7.04 | 0.18 | 1.54 | 1.72 | (0.10 | ) | $ | 8.66 | |||||||||||||||||||||
9/30/2020 | $ | 8.57 | 0.13 | (1.49 | ) | (1.36 | ) | (0.17 | ) | $ | 7.04 | |||||||||||||||||||
9/30/2019 | $ | 8.46 | 0.19 | 0.07 | 0.26 | (0.15 | ) | $ | 8.57 | |||||||||||||||||||||
9/30/2018 | $ | 9.47 | 0.15 | (1.01 | ) | (0.86 | ) | (0.15 | ) | $ | 8.46 | |||||||||||||||||||
9/30/2017 | $ | 7.91 | 0.10 | 1.60 | 1.70 | (0.14 | ) | $ | 9.47 | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 8.59 | 0.03 | (1.02 | ) | (0.99 | ) | (0.12 | ) | $ | 7.48 | |||||||||||||||||||
9/30/2021 | $ | 7.01 | 0.14 | 1.55 | 1.69 | (0.11 | ) | $ | 8.59 | |||||||||||||||||||||
9/30/2020 | $ | 8.53 | 0.07 | (1.48 | ) | (1.41 | ) | (0.11 | ) | $ | 7.01 | |||||||||||||||||||
9/30/2019 | $ | 8.44 | 0.13 | 0.06 | 0.19 | (0.10 | ) | $ | 8.53 | |||||||||||||||||||||
9/30/2018 | $ | 9.43 | 0.08 | (0.99 | ) | (0.91 | ) | (0.08 | ) | $ | 8.44 | |||||||||||||||||||
9/30/2017 | $ | 7.86 | 0.05 | 1.58 | 1.63 | (0.06 | ) | $ | 9.43 | |||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 8.71 | 0.07 | (1.04 | ) | (0.97 | ) | (0.14 | ) | $ | 7.60 | |||||||||||||||||||
9/30/2021 | $ | 7.07 | 0.20 | 1.55 | 1.75 | (0.11 | ) | $ | 8.71 | |||||||||||||||||||||
9/30/2020 | $ | 8.62 | 0.14 | (1.50 | ) | (1.36 | ) | (0.19 | ) | $ | 7.07 | |||||||||||||||||||
9/30/2019 | $ | 8.50 | 0.21 | 0.08 | 0.29 | (0.17 | ) | $ | 8.62 | |||||||||||||||||||||
9/30/2018 | $ | 9.51 | 0.17 | (1.01 | ) | (0.84 | ) | (0.17 | ) | $ | 8.50 | |||||||||||||||||||
9/30/2017 | $ | 7.94 | 0.13 | 1.60 | 1.73 | (0.16 | ) | $ | 9.51 | |||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 8.76 | 0.08 | (1.04 | ) | (0.96 | ) | (0.14 | ) | $ | 7.66 | |||||||||||||||||||
9/30/2021 | $ | 7.11 | 0.20 | 1.56 | 1.76 | (0.11 | ) | $ | 8.76 | |||||||||||||||||||||
9/30/2020 | $ | 8.65 | 0.16 | (1.51 | ) | (1.35 | ) | (0.19 | ) | $ | 7.11 | |||||||||||||||||||
9/30/2019 | $ | 8.53 | 0.23 | 0.07 | 0.30 | (0.18 | ) | $ | 8.65 | |||||||||||||||||||||
9/30/2018 | $ | 9.53 | 0.19 | (1.02 | ) | (0.83 | ) | (0.17 | ) | $ | 8.53 | |||||||||||||||||||
9/30/2017 | $ | 7.93 | 0.15 | 1.62 | 1.77 | (0.17 | ) | $ | 9.53 |
(1) | Net investment income per share has been calculated based on average shares outstanding during the period. |
(2) | The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements). |
(3) | After fees waived and expenses absorbed or recouped by the Advisor, where applicable. |
(4) | Annualized. |
(5) | Not annualized. |
(6) | Includes expenses not covered by the Trust’s expense limitation agreement. |
The accompanying notes to financial statements are an integral part of this statement.
98
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Total return(2) | Net assets, end of period (millions) | Ratio of net expenses to average net assets(3) | Ratio of net investment income to average net assets(3) | Ratio of expenses (prior to reimburse- ments) to average net assets | Ratio of net investment income (prior to reimburse- ments) to average net assets | Portfolio turnover rate | |||||||||||||||||||||||||||
(11.27 | )% | $ | 177.1 | 1.31 | %(4) | 1.51 | %(4) | 1.32 | %(4) | 1.50 | %(4) | 14.03 | %(5) | ||||||||||||||||||||
24.41 | % | $ | 216.2 | 1.30 | % | 2.02 | % | 1.31 | % | 2.01 | % | 34.97 | % | ||||||||||||||||||||
(16.10 | )% | $ | 174.2 | 1.33 | % | 1.75 | % | 1.34 | % | 1.74 | % | 34.39 | % | ||||||||||||||||||||
3.10 | % | $ | 235.9 | 1.35 | % | 2.23 | % | 1.35 | % | 2.23 | % | 22.09 | % | ||||||||||||||||||||
(9.14 | )% | $ | 258.8 | 1.37 | % | 1.62 | % | 1.34 | % | 1.65 | % | 37.66 | % | ||||||||||||||||||||
21.78 | % | $ | 319.2 | 1.42 | %(6) | 1.27 | % | 1.40 | %(6) | 1.29 | % | 23.67 | % | ||||||||||||||||||||
(11.62 | )% | $ | 7.8 | 2.06 | %(4) | 0.77 | %(4) | 2.07 | %(4) | 0.76 | %(4) | 14.03 | %(5) | ||||||||||||||||||||
24.01 | % | $ | 10.3 | 1.59 | % | 1.66 | % | 1.60 | % | 1.65 | % | 34.97 | % | ||||||||||||||||||||
(16.63 | )% | $ | 11.1 | 2.08 | % | 0.90 | % | 2.09 | % | 0.89 | % | 34.39 | % | ||||||||||||||||||||
2.27 | % | $ | 18.0 | 2.10 | % | 1.48 | % | 2.10 | % | 1.48 | % | 22.09 | % | ||||||||||||||||||||
(9.70 | )% | $ | 22.8 | 2.10 | % | 0.89 | % | 2.09 | % | 0.90 | % | 37.66 | % | ||||||||||||||||||||
20.83 | % | $ | 28.2 | 2.17 | %(6) | 0.52 | % | 2.14 | %(6) | 0.55 | % | 23.67 | % | ||||||||||||||||||||
(11.23 | )% | $ | 827.7 | 1.12 | %(4) | 1.72 | %(4) | 1.12 | %(4) | 1.72 | %(4) | 14.03 | %(5) | ||||||||||||||||||||
24.71 | % | $ | 1,003.8 | 1.12 | % | 2.24 | % | 1.11 | % | 2.25 | % | 34.97 | % | ||||||||||||||||||||
(15.96 | )% | $ | 834.8 | 1.12 | % | 1.88 | % | 1.14 | % | 1.86 | % | 34.39 | % | ||||||||||||||||||||
3.41 | % | $ | 1,117.7 | 1.12 | % | 2.46 | % | 1.15 | % | 2.43 | % | 22.09 | % | ||||||||||||||||||||
(8.91 | )% | $ | 1,162.1 | 1.12 | % | 1.88 | % | 0.14 | % | 1.86 | % | 37.66 | % | ||||||||||||||||||||
22.07 | % | $ | 1,311.5 | 1.17 | %(6) | 1.51 | % | 1.20 | %(6) | 1.48 | % | 23.67 | % | ||||||||||||||||||||
(11.09 | )% | $ | 58.2 | 0.97 | %(4) | 1.88 | %(4) | 1.07 | %(4) | 1.78 | %(4) | 14.03 | %(5) | ||||||||||||||||||||
24.74 | % | $ | 68.1 | 0.97 | % | 2.32 | % | 1.06 | % | 2.23 | % | 34.97 | % | ||||||||||||||||||||
(15.74 | )% | $ | 39.1 | 0.97 | % | 2.07 | % | 1.09 | % | 1.95 | % | 34.39 | % | ||||||||||||||||||||
3.45 | % | $ | 47.6 | 0.97 | % | 2.61 | % | 1.10 | % | 2.48 | % | 22.09 | % | ||||||||||||||||||||
(8.74 | )% | $ | 33.6 | 0.97 | % | 2.02 | % | 1.08 | % | 1.91 | % | 37.66 | % | ||||||||||||||||||||
22.53 | % | $ | 97.4 | 1.02 | %(6) | 1.68 | % | 1.17 | %(6) | 1.53 | % | 23.67 | % |
The accompanying notes to financial statements are an integral part of this statement.
99
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net | ||||||||||||||||||||||||||||||
Net asset | Net | realized and | Dividends | Dividends | ||||||||||||||||||||||||||
value, | investment | unrealized | Total from | from net | from net | |||||||||||||||||||||||||
beginning | income | gain (loss) on | investment | investment | realized | |||||||||||||||||||||||||
of period | (loss)(1) | investments | operations | income | gains | |||||||||||||||||||||||||
Brandes International Small Cap Equity Fund | ||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 14.01 | 0.30 | (1.72 | ) | (1.42 | ) | (0.56 | ) | — | ||||||||||||||||||||
9/30/2021 | $ | 9.33 | 0.14 | 4.69 | 4.83 | (0.15 | ) | — | ||||||||||||||||||||||
9/30/2020 | $ | 10.22 | 0.07 | (0.88 | ) | (0.81 | ) | (0.08 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 12.10 | 0.15 | (1.60 | ) | (1.45 | ) | (0.30 | ) | (0.13 | ) | |||||||||||||||||||
9/30/2018 | $ | 14.30 | 0.14 | (1.32 | ) | (1.18 | ) | (0.54 | ) | (0.48 | ) | |||||||||||||||||||
9/30/2017 | $ | 13.46 | 0.14 | 1.32 | 1.46 | (0.34 | ) | (0.28 | ) | |||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 13.49 | 0.23 | (1.64 | ) | (1.41 | ) | (0.51 | ) | — | ||||||||||||||||||||
9/30/2021 | $ | 9.03 | 0.10 | 4.54 | 4.64 | (0.18 | ) | — | ||||||||||||||||||||||
9/30/2020 | $ | 9.94 | (0.01 | ) | (0.85 | ) | (0.86 | ) | (0.05 | ) | — | |||||||||||||||||||
9/30/2019 | $ | 11.81 | 0.06 | (1.55 | ) | (1.49 | ) | (0.25 | ) | (0.13 | ) | |||||||||||||||||||
9/30/2018 | $ | 14.03 | 0.04 | (1.28 | ) | (1.24 | ) | (0.50 | ) | (0.48 | ) | |||||||||||||||||||
9/30/2017 | $ | 13.24 | 0.04 | 1.30 | 1.34 | (0.27 | ) | (0.28 | ) | |||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 14.09 | 0.31 | (1.73 | ) | (1.42 | ) | (0.58 | ) | — | ||||||||||||||||||||
9/30/2021 | $ | 9.37 | 0.15 | 4.73 | 4.88 | (0.16 | ) | — | ||||||||||||||||||||||
9/30/2020 | $ | 10.25 | 0.09 | (0.88 | ) | (0.79 | ) | (0.09 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 12.14 | 0.17 | (1.61 | ) | (1.44 | ) | (0.32 | ) | (0.13 | ) | |||||||||||||||||||
9/30/2018 | $ | 14.35 | 0.17 | (1.32 | ) | (1.15 | ) | (0.58 | ) | (0.48 | ) | |||||||||||||||||||
9/30/2017 | $ | 13.50 | 0.17 | 1.32 | 1.49 | (0.36 | ) | (0.28 | ) | |||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 14.14 | 0.33 | (1.75 | ) | (1.42 | ) | (0.59 | ) | — | ||||||||||||||||||||
9/30/2021 | $ | 9.39 | 0.17 | 4.74 | 4.91 | (0.16 | ) | — | ||||||||||||||||||||||
9/30/2020 | $ | 10.27 | 0.07 | (0.86 | ) | (0.79 | ) | (0.09 | ) | — | ||||||||||||||||||||
9/30/2019 | $ | 12.15 | 0.18 | (1.61 | ) | (1.43 | ) | (0.32 | ) | (0.13 | ) | |||||||||||||||||||
9/30/2018 | $ | 14.36 | 0.18 | (1.33 | ) | (1.15 | ) | (0.58 | ) | (0.48 | ) | |||||||||||||||||||
9/30/2017 | $ | 13.50 | 0.18 | 1.33 | 1.51 | (0.37 | ) | (0.28 | ) |
(1) | Net investment income per share has been calculated based on average shares outstanding during the period. |
(2) | The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements). |
(3) | After fees waived and expenses absorbed or recouped by the Advisor, where applicable. |
(4) | Annualized. |
(5) | Not annualized. |
(6) | Includes expenses not covered by the Trust’s expense limitation agreement. |
The accompanying notes to financial statements are an integral part of this statement.
100
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net asset value, end of period | Total return(2) | Net assets, end of period (millions) | Ratio of net expenses to average net assets(3) | Ratio of net investment income to average net assets(3) | Ratio of expenses (prior to reimburse- ments) to average net assets | Ratio of net investment income (prior to reimburse- ments) to average net assets | Portfolio turnover rate | |||||||||||||||||||||||||||||||
$ | 12.03 | (10.26 | )% | $ | 60.3 | 1.35 | %(4) | 4.48 | %(4) | 1.35 | %(4) | 4.48 | %(4) | 18.51 | %(5) | |||||||||||||||||||||||
$ | 14.01 | 51.91 | % | $ | 68.0 | 1.32 | % | 1.10 | % | 1.33 | % | 1.09 | % | 26.16 | % | |||||||||||||||||||||||
$ | 9.33 | (7.95 | )% | $ | 35.8 | 1.35 | % | 0.77 | % | 1.36 | % | 0.76 | % | 39.28 | % | |||||||||||||||||||||||
$ | 10.22 | (12.04 | )% | $ | 43.5 | 1.35 | % | 1.34 | % | 1.35 | % | 1.34 | % | 22.52 | % | |||||||||||||||||||||||
$ | 12.10 | (8.88 | )% | $ | 80.9 | 1.30 | % | 1.05 | % | 1.30 | % | 1.05 | % | 21.97 | % | |||||||||||||||||||||||
$ | 14.30 | 11.29 | % | $ | 176.9 | 1.30 | %(6) | 1.04 | % | 1.30 | %(6) | 1.04 | % | 21.37 | % | |||||||||||||||||||||||
$ | 11.57 | (10.62 | )% | $ | 4.4 | 2.10 | %(4) | 3.62 | %(4) | 2.10 | %(4) | 3.62 | %(4) | 18.51 | %(5) | |||||||||||||||||||||||
$ | 13.49 | 51.52 | % | $ | 5.3 | 1.49 | % | 0.86 | % | 1.50 | % | 0.85 | % | 26.16 | % | |||||||||||||||||||||||
$ | 9.03 | (8.64 | )% | $ | 4.5 | 2.11 | % | (0.06 | )% | 2.12 | % | (0.07 | )% | 39.28 | % | |||||||||||||||||||||||
$ | 9.94 | (12.69 | )% | $ | 6.9 | 2.10 | % | 0.59 | % | 2.10 | % | 0.59 | % | 22.52 | % | |||||||||||||||||||||||
$ | 11.81 | (9.55 | )% | $ | 14.5 | 2.05 | % | 0.30 | % | 2.05 | % | 0.30 | % | 21.97 | % | |||||||||||||||||||||||
$ | 14.03 | 10.52 | % | $ | 27.2 | 2.05 | %(6) | 0.29 | % | 2.05 | %(6) | 0.29 | % | 21.37 | % | |||||||||||||||||||||||
$ | 12.09 | (10.21 | )% | $ | 266.2 | 1.15 | %(4) | 4.64 | %(4) | 1.15 | %(4) | 4.64 | %(4) | 18.51 | %(5) | |||||||||||||||||||||||
$ | 14.09 | 52.15 | % | $ | 318.0 | 1.12 | % | 1.23 | % | 1.13 | % | 1.22 | % | 26.16 | % | |||||||||||||||||||||||
$ | 9.37 | (7.69 | )% | $ | 260.8 | 1.15 | % | 0.93 | % | 1.16 | % | 0.92 | % | 39.28 | % | |||||||||||||||||||||||
$ | 10.25 | (11.93 | )% | $ | 414.8 | 1.15 | % | 1.54 | % | 1.15 | % | 1.54 | % | 22.52 | % | |||||||||||||||||||||||
$ | 12.14 | (8.70 | )% | $ | 963.8 | 1.10 | % | 1.25 | % | 1.10 | % | 1.25 | % | 21.97 | % | |||||||||||||||||||||||
$ | 14.35 | 11.54 | % | $ | 1,543.9 | 1.10 | %(6) | 1.24 | % | 1.10 | %(6) | 1.24 | % | 21.37 | % | |||||||||||||||||||||||
$ | 12.13 | (10.17 | )% | $ | 12.7 | 1.00 | %(4) | 4.94 | %(4) | 1.10 | %(4) | 4.84 | %(4) | 18.51 | %(5) | |||||||||||||||||||||||
$ | 14.14 | 52.39 | % | $ | 13.5 | 1.00 | % | 1.37 | % | 1.08 | % | 1.29 | % | 26.16 | % | |||||||||||||||||||||||
$ | 9.39 | (7.72 | )% | $ | 10.5 | 1.00 | % | 0.83 | % | 1.12 | % | 0.71 | % | 39.28 | % | |||||||||||||||||||||||
$ | 10.27 | (11.80 | )% | $ | 20.4 | 1.00 | % | 1.69 | % | 1.10 | % | 1.59 | % | 22.52 | % | |||||||||||||||||||||||
$ | 12.15 | (8.64 | )% | $ | 72.5 | 1.00 | % | 1.35 | % | 1.05 | % | 1.30 | % | 21.97 | % | |||||||||||||||||||||||
$ | 14.36 | 11.67 | % | $ | 76.1 | 1.01 | %(6) | 1.33 | % | 1.05 | %(6) | 1.29 | % | 21.37 | % |
The accompanying notes to financial statements are an integral part of this statement.
101
Brandes Investment Trust
FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:
Net | ||||||||||||||||||||||||||||||
Net asset | realized and | Dividends | Dividends | |||||||||||||||||||||||||||
value, | Net | unrealized | Total from | from net | from net | |||||||||||||||||||||||||
beginning | investment | gain (loss) on | investment | investment | realized | |||||||||||||||||||||||||
of period | income | investments | operations | income | gains | |||||||||||||||||||||||||
Brandes Small Cap Value Fund | ||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||
3/31/2022 (Unaudited) | $ | 13.22 | 0.21 | (3) | 0.12 | 0.33 | (0.19 | ) | (0.51 | ) | ||||||||||||||||||||
9/30/2021 | $ | 8.52 | 0.02 | 4.51 | 4.53 |