|
BRANDES INTERNATIONAL EQUITY FUND
|
|
Summary Prospectus
|
|
Class I Ticker Symbol: BIIEX
Class E Ticker Symbol: BIEEX
Class A Ticker Symbol: BIEAX
Class C Ticker Symbol: BIECX
|
January 31, 2013
As Supplemented May 17, 2013
|
Before you invest, you may want to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s Prospectus, Statement of Additional Information and other information about the Fund online at http://www.brandesinstitutionalfunds.com/biiex/downloads.html. You may also obtain this information at no cost by calling (800) 395-3807. The Fund's Prospectus dated January 31, 2013 as supplemented February 7, 2013 and May 15, 2013 and Statement of Additional Information dated January 31, 2013 as supplemented February 25, 2013 and May 15, 2013, are incorporated by reference into this Summary Prospectus.
Investment Objective
The Brandes International Equity Fund (the “International Equity Fund”), formerly named the Brandes Institutional International Equity Fund, seeks long term capital appreciation.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy and hold shares of the
International Equity Fund
.
You may qualify for sales charge discounts if you or your family invest, or agree to invest in the future, at least $25,000 in the Brandes Funds. More information about these and other discounts is available from your financial professional and in the section titled “Shareholder Information” on page 38 of the Prospectus and “Additional Purchase and Redemption Information” on page B-77 of the Fund’s Statement of Additional Information.
|
Shareholder Fees
(
fees paid directly from your investment
)
|
Class A
|
Class C
|
Class E
|
Class I
|
|
Maximum Sales Charge (Load) Imposed
on Purchases (as a percentage of offering price)
|
|
5.75%
|
|
None
|
|
None
|
|
None
|
|
Maximum Deferred Sales Charge (Load)
|
|
None*
|
|
1.00%
#
|
|
None
|
|
None
|
|
*
Investments of $1 million or more are not subject to a front-end sales charge but generally will be subject to a deferred sales charge of 1.00% if redeemed within one year from the date of purchase.
#
A charge of 1.00% will be imposed on Class C shares redeemed within one year of purchase by any investor.
|
|
Annual Fund Operating Expenses
(
expenses that you pay each year as a
percentage of the value of your investment
)
|
Class A
|
Class C
|
Class E
|
Class I
|
|
Management Fees
|
|
0.80%
|
|
0.80%
|
|
0.80%
|
|
0.80%
|
|
Distribution (12b-1) Fees
|
|
0.25%
|
|
0.75%
|
|
None
|
|
None
|
|
Other Expenses
|
|
|
|
|
|
|
|
|
|
Shareholder Servicing Fees
|
None
|
|
0.25%
|
|
0.25%
|
|
None
|
|
|
Other Expenses
|
0.20%
|
|
0.20%
|
|
0.20%
|
|
0.25%
|
|
|
Total Other Expenses
|
|
0.20%
|
|
0.45%
|
|
0.45%
|
|
0.25%
|
|
|
|
|
|
|
|
|
|
|
|
Total Annual Fund Operating Expenses
|
|
1.25%
|
|
2.20%
|
|
1.25%
|
|
1.05%
|
|
Less: Fee Waiver and/or Expense Reimbursement
|
|
-0.05%
|
|
-0.05%
|
|
-0.05%
|
|
-0.05%
|
|
Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement
(1)
|
|
1.20%
|
|
1.95%
|
|
1.20%
|
|
1.00%
|
|
(1)
|
The Advisor has contractually agreed to limit the International Equity Fund’s Class A, Class C, Class E, and Class I annual operating expenses (excluding acquired fund fees and expenses, taxes, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization or extraordinary expenses such as litigation), including repayment of previous waivers, to 1.30% for Class A and Class E, 2.05% for Class C and 1.05% for Class I, as percentages of the respective Fund classes’ average daily net assets through January 31, 2014 (the “Expense Caps”). The Expense Caps may be terminated at any time by the Board of Trustees upon 60 days’ written notice to the Advisor, or by the Advisor with the consent of the Board. The Advisor is permitted, with Board approval, to be reimbursed for fee reductions and/or expense payments made in the prior three years with respect to any Class of the Fund. The Advisor may request reimbursement if the aggregate amount paid by the Fund toward operating expenses for the Class for the fiscal year (taking into account the reimbursement) does not exceed the Expense Cap with respect to such Class or any lower expense cap for the Class in effect at the time of the reimbursement.
|
Example
This Example is intended to help you compare the costs of investing in the International Equity Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Class A
|
$690
|
$944
|
$1,217
|
$1,995
|
|
Class C
|
$298
|
$623
|
$1,073
|
$2,323
|
|
Class E
|
$122
|
$392
|
$682
|
$1,507
|
|
Class I
|
$102
|
$329
|
$575
|
$1,278
|
You would pay the following expenses if you did not redeem your Class C shares:
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Class C
|
$198
|
$623
|
$1,073
|
$2,323
|
Portfolio Turnover
The International Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 13.47% of the average value of its portfolio.
Principal Investment Strategies
The International Equity Fund invests principally in common and preferred stocks of foreign companies. These companies generally have market capitalizations (market value of publicly traded securities) greater than $1 billion. A foreign company is determined to be “foreign” on the basis of its domicile, its principal place of business, its primary stock exchange listing, the source of its revenues or other factors. Under normal market conditions, the International Equity Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) measured at the time of purchase in equity securities of issuers located in at least three countries outside the United States. Equity securities include common and preferred stocks, warrants and rights. Up to 30% of the International Equity Fund’s total assets, measured at the time of purchase, may be invested in securities of companies located in countries with emerging securities markets.
Brandes Investment Partners, L.P., the Fund’s investment advisor (the “Advisor”), uses the principles of value investing to analyze and select equity securities for the International Equity
Fund’s investment portfolio. When buying equity securities, the Advisor assesses the estimated “intrinsic” value of a company based on data such as a company’s earnings power, cash flow generation, and/or asset value of the underlying business. By choosing securities that are selling at a discount to the Advisor’s estimates of their share of the company’s intrinsic business value, the Advisor seeks to establish an opportunity for long-term capital appreciation. The Advisor may sell a security when its price reaches a target set by the Advisor, the Advisor believes that other investments are more attractive, or for other reasons.
Principal Investment Risks
Because the values of the International Equity Fund’s investments will fluctuate with market conditions, so will the value of your investment in the International Equity Fund. You could lose money on your investment in the International Equity Fund, or the International Equity Fund could underperform other investments. Principal risks of the International Equity Fund are as follows:
|
·
|
Stock Risks
– The values of the International Equity Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions.
|
|
·
|
Foreign Securities and Emerging Markets Risks –
In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the International Equity Fund invests. Emerging 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.
|
|
·
|
Currency Risks
– Because the International Equity Fund invests in securities denominated in foreign currencies, the U.S. dollar values of its investments fluctuate as a result of changes in foreign exchange rates. Such changes will also affect the Fund’s income.
|
|
·
|
Value Securities Risks
– The International Equity Fund invests in value securities, which are securities the Advisor believes are undervalued for various reasons, including but not limited to as a result of adverse business, industry or other developments, or are subject to special risks, or limited market understanding of the issuer’s business or industry, that have caused the securities to be out of favor. It may take longer than expected for the prices of these securities to increase to the anticipated value, or they may never increase to that value or may decline. In addition, value securities, at times, may not perform as well as growth securities or the stock market in general, and may be out of favor with investors for varying periods of time.
|
|
·
|
Value Style Risks
– In managing the International Equity Fund, the Advisor applies the Graham and Dodd Value Investing approach, which selects investments based on the Advisor’s evaluation of the intrinsic long-term value of companies using measurable data. This style of investing has caused the Fund’s performance to deviate from the performance of market benchmarks and other managers for substantial periods of time and may do so in the future.
|
Performance
The following performance information shows you how the International Equity
Fund has performed and provides some indication of the risks of investing in the Fund by showing how its performance has varied from year to year. The bar chart shows changes in the yearly performance of the Fund’s Class I shares since its inception. The table below compares the Fund’s total return over time to a broad-based securities index. The chart and table assume reinvestment of dividends and distributions. Of course, past performance, before and after taxes, does not indicate how the International Equity
Fund will perform in the future. Updated performance is available on the Fund’s website www.brandesfunds.com.
Brandes International Equity Fund
Year-by-Year Total Returns as of December 31, 2012
for Class I Shares
|
Best Quarter
|
Q2
|
2003
|
25.52%
|
|
Worst Quarter
|
Q3
|
2002
|
-20.72%
|
Brandes International Equity Fund
Average Annual Total Returns
For periods ending December 31, 2012
|
Brandes International Equity Fund
|
1 Year
|
5 Years
|
10 Years
|
Since
Inception
|
|
Class A Shares –
Return Before Taxes
|
4.54%
|
-6.32%
|
7.17%
|
7.61%
|
|
Class C Shares –
Return Before Taxes
|
11.25%
|
-5.04%
|
8.04%
|
8.25%
|
|
Class E Shares –
Return Before Taxes
|
11.18%
|
-5.12%
|
7.86%
|
2.18%
|
|
Class I Shares –
Return Before Taxes
|
11.25%
|
-5.04%
|
8.04%
|
8.25%
|
|
Return After Taxes on Distributions
|
11.07%
|
-5.35%
|
7.23%
|
6.82%
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
8.49%
|
-3.93%
|
7.33%
|
6.96%
|
|
MSCI EAFE Index (reflects no deduction for fees, expenses or taxes)
|
17.32%
|
-3.69%
|
8.21%
|
4.21%
|
The International Equity Fund commenced operations in 1997. Prior to October 6, 2008, the International Equity Fund had only one class of shares (currently designated as Class I Shares). Class E shares commenced operations on October 6, 2008. Performance shown prior to the inception of Class E shares reflects the performance of Class I shares adjusted to reflect Class E expenses. Class A shares commenced operations on January 31, 2011, but prior to January 31, 2013, Class A shares were known as Class S shares. (Class A shares have the same operating expenses as Class S shares.) Performance shown prior to January 31, 2011 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. Class C shares commenced operations on January 31, 2013. Performance shown prior to the inception of Class C shares reflects the performance of Class I shares.
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who are exempt from tax or hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class I shares only. After-tax returns for other Classes will vary.
In certain cases, the “Return After Taxes on Distributions and Sale of Fund Shares” may be higher than the other return figures for the same period. This will occur when a capital loss is realized upon the sale of Fund shares and provides an assumed tax benefit that increases the return.
Management
Investment Advisor
. Brandes Investment Partners, L.P.
|
Portfolio Managers
|
Position with Advisor
|
Managed the
Fund Since:
|
|
Brent Woods, CFA
|
Chief Executive Officer and
International Large Cap Investment Committee Voting Member
|
1996
|
|
Amelia Morris, CFA
|
Director, Investments and
International Large Cap Investment Committee Voting Member
|
1998
|
|
Shingo Omura, CFA
|
Senior Analyst and
International Large Cap Investment Committee Voting Member
|
2013
|
|
Luiz Sauerbronn
|
Director, Investments and
International Large Cap Investment Committee Voting Member
|
2013
|
|
Jeffrey Germain, CFA
|
Senior Analyst and
International Large Cap Investment Committee Voting Member
|
2009
|
Purchase and Sale of Fund Shares
You may purchase or redeem Fund shares on any business day by written request via mail (Brandes Funds, c/o
U.S. Bancorp Fund Services, LLC, 615 East Michigan Street, 3
rd
Floor, Milwaukee, WI 53201-0701), by wire transfer, by telephone at 1-800-395-3807, or through a financial intermediary.
|
Class and Type of Account
|
Minimum Initial
Investment
|
Subsequent Minimum
Investment
|
|
Classes A, C and E
|
|
|
|
– Regular Accounts
|
$2,500
|
$500
|
|
– Traditional and Roth IRA Accounts
|
$1,000
|
$500
|
|
– Automatic Investment Plans
|
$500
|
$500
|
|
Class I
|
$100,000
|
$500
|
Tax Information
The Fund’s distributions are taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. Distributions on investments made through tax deferred vehicles, such as 401(k) plans or IRAs, may be taxed later upon withdrawal of assets from those accounts.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.