Brandes International Small Cap Equity Fund Class R6 (BISRX)

Overview

The described fund operates as an international investment entity, focusing primarily on the equity securities of small market capitalization companies located outside of the United States. With an investment criterion that includes a market capitalization of $5 billion or less at the time of purchase, the fund prioritizes diversification not just in sector but geographically, extending its portfolio across at least three countries. Furthermore, a notable portion of its assets, up to 30%, can be allocated to emerging and frontier markets, highlighting its aggressive strategy to tap into rapidly growing markets.

Products and Services

The fund's investment portfolio is built around two main focal areas:

• Equity Securities of Small Market Capitalization Companies: This product focuses on investing in companies with a market capitalization of $5 billion or less. The fund identifies these companies across a broad range of countries, with a requirement to invest in at least three countries outside the United States. This strategy aims to capitalize on the growth potential of small-cap companies, which may offer higher returns albeit with higher volatility and risk.
• Securities in Emerging and Frontier Markets: Up to 30% of the fund's total assets may be allocated to markets classified as emerging or frontier. This portion of the investment underscores the fund’s approach towards diversification and risk-taking by venturing into markets with potential for significant growth. These markets often carry additional risks, including but not limited to, political instability, less regulatory oversight, and liquidity issues. However, the fund mitigates these risks through careful selection and allocation, aiming to maximize returns for its investors.