COLLEGE PLANNING | ESTATE PLANNING | INVESTING | PORTFOLIO SPOTLIGHT | REAL ESTATE | RETIREMENT | TAX PLANNING
Pzena Emerging Markets Value Fund
TICKER ASSETS
PZIEX $ 1.3 billion
PERFORMANCE |
YTD |
1 yr . |
3 yr . |
5 yr . |
Institutional share class |
18.69 % |
22.18 % |
15.27 % |
6.26 % |
TOP 5 HOLDINGS
CONTACT INFO
Samsung Electronics Co ., Ltd .; Ambev S . A .; Taiwan Semiconductor Manufacturing Co ., Ltd .; Hon Hai Precision Industry Co ., Ltd .; Cognizant Technology Solutions – Class A
212.355.1600 • pzena . com
Allison Fisch
TOP INDUSTRIES ( As a % of portfolio ) Financials 28 % Information Technology 25 % Consumer Discretionary 13 % Consumer Staples 9 % Industrials 6 % Materials 6 % Utilities 4 % Communication Services 3 % Real Estate 3 % Healthcare 2 % Energy 1 %
Performance and asset numbers as of 8 / 3 / 23 . Holdings , sector weightings as of 6 / 30 / 23 . Performance figures are for the institutional share class . Sources : Pzena Investment Management and Morningstar .
Finding Gems In The Trash Heap
The Pzena Emerging Markets Value Fund ’ s deep-value approach has been a winner . By Jeff Schlegel
PZENA INVESTMENT MANAGEMENT IS A VALUE INVEStor ’ s value investor . We ’ re not talking relative value , we ’ re talking deep value . That ’ s illustrated by the Pzena Emerging Markets Value Fund , where as of June 30 the portfolio ’ s valuation multiples — priceto-earnings / book / sales / cash flow — were all significantly less than those of the MSCI Emerging Markets Index . And with the exception of price-to-cash flow , they were also lower than the multiples on the MSCI Emerging Markets Value Index .
Finding off-price items is great , but it ’ s pointless if you ’ re buying junk that deserves to be sold at steeply discounted prices . Successful bargain hunters have a knack for separating gems from the rubbish , and the folks who run the Emerging Markets Value Fund have built an impressive track record that shows they have an eye for spotting mispriced merchandise .
As of July 31 , the 6.60 % annualized five-year return on the fund ’ s institutional share class offering trounced the returns of both the MSCI Emerging Markets and MSCI Emerging
Markets Value indexes by roughly five percentage points . The disparities are much wider — at double-digit percentage point levels — on the fund ’ s three-year average return of 16.15 % and its one-year return of nearly 25 %.
From its beginning , Pzena ( pronounced “ pa-zeena ”) has been hyper-focused on value investing . The New York Citybased firm was founded in 1995 by Richard Pzena , former chief research officer and director of U . S . equity investments at Sanford C . Bernstein & Co . The company ’ s mission statement at its inception said it wanted “ to be considered among the premier value investors globally .”
The firm has built a sizable book of business with roughly $ 56 billion in assets under management , mainly via separately managed accounts with big institutions . It also subadvises portfolios for a half dozen other fund companies , including four funds at Vanguard . It began rolling out Pzena-branded mutual funds in 2014 . Of course , all of this is done under the rubric of value investing .
48 | FINANCIAL ADVISOR MAGAZINE | SEPTEMBER 2023 WWW . FA-MAG . COM