Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.53% | 2.59% | 2.59% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.53% | 2.59% | 2.59% |
The Brandes International Equity Fund returned 2.59% in Q1 2026, outperforming the MSCI EAFE Index which fell 1.24%. Energy was the strongest contributor, with Petrobras benefiting from higher oil prices amid Middle East geopolitical tensions. AI-related infrastructure spending supported semiconductor names like Samsung Electronics and STMicroelectronics, while pharmaceutical holdings Takeda and Astellas also performed well. However, concerns about AI disruption weighed on traditional IT services companies like Capgemini and enterprise software vendors including SAP and OpenText. The fund initiated a position in Sodexo, viewing the food services company as attractively valued following operational challenges, while exiting Engie after shares approached intrinsic value estimates. The portfolio maintains overweights in healthcare and consumer staples with significant exposure to Europe and select emerging markets. Despite increased market volatility driven by geopolitical uncertainty and economic growth concerns, the managers remain optimistic about international value opportunities and believe the fund is well-positioned for continued rotation toward value and international equities.
International value stocks offer compelling long-term opportunities at attractive valuations, with the fund positioned to benefit from rotation toward value and international equities while maintaining a disciplined, valuation-driven approach to stock selection.
We remain optimistic about the prospects of the Fund's holdings. We believe international stocks, especially value-oriented ones, remain appealing long-term opportunities, particularly given valuation dispersion across regions and sectors. The Fund is well-positioned to benefit if there is a continued rotation toward value and international equities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 21 2026 | 2026 Q1 | 005930 KS, 4502.T, 4503.T, CAP.PA, ENGI.PA, F34.SI, KER.PA, OTEX, PBR, PUB.PA, SAP, STM, SW.PA, WPP.L | AI, emerging markets, energy, Europe, international, Pharmaceuticals, semiconductors, value | - | Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in IT services. The fund added Sodexo and exited Engie, maintaining conviction in international value opportunities despite increased market volatility from geopolitical and economic uncertainties. |
| Jan 23 2026 | 2025 Q4 | 005930.KS, 1876.HK, 4503.T, 8306.T, BABA, BNP.PA, CX, DGE.L, DPW.DE, EBS.VI, ERJ, GRF.MC, GSK, HEI.DE, KER.PA, MNDI.L, NG.L, ORA.PA, OTEX.TO, RI.PA, TSCO.L, TSM | emerging markets, Europe, international, Outperformance, packaging, Utilities, value |
MNDI LN NG LN TSCO LN |
Brandes International Equity delivered exceptional 39% annual returns in 2025, outperforming benchmarks through strong emerging market stock selection and value rotation. Despite the rally, international value stocks remain historically cheap versus growth. The portfolio added UK utilities and packaging exposure while maintaining overweights in defensive sectors and emerging markets positioning. |
| Oct 24 2025 | 2025 Q3 | 005930.KS, 086280.KS, 4502.T, 6273.T, BABA, CAP.PA, CX, ERJ, GSK.L, HEI.DE, HEIA.AS, KER.PA, OTEX, PBR, PUB.PA, SAN.PA, STM, TSM, UHR.SW, WPP.L | AI, Automation, emerging markets, Europe, international, Outperformance, technology, value |
SMC JP SMC JP |
Brandes International Equity Fund outperformed significantly in Q3 2025 on AI-driven gains and value stock selection. International value stocks trade at historically attractive discounts, creating compelling opportunities. Portfolio emphasizes Europe and emerging markets with increased technology exposure. Manager remains optimistic about continued value rotation and international equity outperformance given attractive relative valuations. |
| Jul 22 2025 | 2025 Q2 | 005930.KS, 086280.KS, 6273.T, BABA, CAP.PA, CX, ERJ, GSK.L, HEI.DE, HEIA.AS, KER.PA, OTEX.TO, PETR4.SA, PUB.PA, SAN.PA, STM, TAK, TSM, UHR.SW, WPP.L | AI, Automation, emerging markets, Europe, industrials, international, technology, value | 6273.T | Brandes International Equity Fund outperformed on AI-driven gains from Alibaba, Samsung, and TSMC, while value rotation provided additional tailwinds. New position in SMC Corporation adds factory automation exposure at attractive valuations. Portfolio emphasizes domestically oriented European and emerging market companies with defensive characteristics, positioning for continued value outperformance and international equity rotation. |
| Mar 31 2025 | 2025 Q1 | 005930.KS, 1876.HK, 4502.T, BABA, BNP.PA, CA.PA, ERJ, GSK.L, HEI.DE, HEIA.AS, HEN3.DE, ISP.MI, ORA.PA, PUB.PA, RR.L, SAN.PA, STM, TSM, UHR.SW, WPP.L | aerospace, Beverages, emerging markets, Europe, financials, international, semiconductors, value |
WMMVY CAP.PA RI.PA |
Brandes International Equity Fund outperformed in Q1 2025 driven by aerospace and beverage holdings while semiconductor positions detracted. The team actively repositioned the portfolio, adding value opportunities in Mexican retail, French spirits, and IT services. Management remains optimistic on international value investing given attractive valuations relative to U.S. markets and growth stocks. |
| Dec 31 2024 | 2024 Q4 | 005930.KS, 1211.HK, 4502.T, 5108.T, 7201.T, BABA, BNP.PA, CAE.TO, EBS.VI, ERJ, GSK, HEI.DE, HEIA.AS, KGF.L, RR.L, SAN.PA, STM, UBS, UHR.SW, WPP.L | China, industrials, international, materials, semiconductors, value |
STM MKS.L |
Brandes International Equity Fund sees compelling value in international stocks trading at extreme discounts to U.S. equities. Despite Q4 weakness from Chinese holdings, strong aerospace and materials performance drove solid annual returns. New semiconductor position in STMicroelectronics reflects cyclical opportunity. Manager optimistic on international rotation given historical valuation extremes. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI infrastructure spending continued to underpin memory demand and pricing, benefiting Samsung Electronics. However, concerns about AI disruption weighed on traditional IT services companies like Capgemini and enterprise software vendors like SAP and OpenText, as investors reassessed the impact of generative AI on legacy business models. |
Memory Infrastructure Semiconductors Enterprise Software Disruption |
PharmaceuticalsJapanese pharmaceutical companies Takeda and Astellas performed well during the quarter. Astellas benefited from improved market optimism around its drug pipeline and solid earnings results, while the sector contributed positively to overall fund performance. |
Drug Pipeline Earnings Japan Healthcare | |
EnergyThe energy sector rose significantly amid geopolitical conflict in the Middle East. Petrobras was a top performer, benefiting from higher oil prices and lack of production exposure in the conflict region. The fund maintained a slight overweight and pared exposure as prices held up well during market pullback. |
Oil Prices Geopolitical Middle East Brazil | |
SemiconductorsSamsung Electronics advanced on AI-related infrastructure spending supporting memory demand. STMicroelectronics benefited from collaboration with Amazon Web Services and growing confidence in automotive and industrial chip rebound, though semiconductor sentiment became more volatile later in the period. |
Memory Automotive Industrial AWS | |
ValueInternational value stocks maintained leadership over growth stocks over the past five years. The fund trades at compelling valuation levels with attractive long-term growth characteristics relative to benchmarks, positioned to benefit from continued rotation toward value and international equities. |
International Valuation Growth Rotation | |
| 2025 Q4 |
ValueFund focuses on buying shares in decent operating businesses at significant discounts to intrinsic value. European value stocks had their largest outperformance versus growth stocks in 30 years, beating them by 19 percentage points. Manager believes value will continue to outperform growth during the remainder of this decade. |
Value Investing Discount Intrinsic Value P/E Ratios Deep Value |
BiotechnologyFund invested in RTW Biotech after reading about gene editing potential. Manager believes gene splicing and editing are likely to be the next big thing over the coming generation. RTW Biotech appreciated by more than 69% and manager expects to hold for many years. |
Gene Editing Biotech RTW Biotech China Innovation M&A | |
ShippingFund generated exceptional returns from car carrier investments with 110% per annum IRR over five years. Sold operating companies but maintains exposure through Wilhelmsen family holding company at 48% discount to NAV. Also invested in Norwegian oil services business. |
Car Carriers Maritime Shipping Cycles Oil Services Norway | |
InsuranceVienna Insurance Group was the best performing stock with 158% return in USD. NN Group generated 85% return despite trading at discount to book value. Both companies demonstrate efficient capital allocation and strong market positions in their regions. |
Life Insurance P&C Insurance Central Europe Capital Allocation Book Value | |
SteelDanieli specializes in manufacturing steel plants and producing specialist steels. European Commission proposals to safeguard European steel production led to surge in demand for energy efficient and hydrogen-ready steel plants. Order book elevated with increasing profitability. |
Steel Plants Energy Efficiency Hydrogen Carbon Costs Italy | |
FertilizersYara International increased EPS from $1.75 to around $4.25 estimated for 2025. Manager expects Yara to surpass analysts' earnings expectations due to tight new supply and Carbon Border Adjustment Mechanism in the EU. Well managed business owned for over 20 years. |
Nitrogen CBAM Supply Constraints EU Regulation Agriculture | |
| 2025 Q3 |
AIAI-related investments drove strong performance across multiple holdings. Alibaba benefited from aggressive AI investment plans and growth in AI-related products and cloud revenue. Samsung and TSMC gained from positive AI sentiment. The fund sees AI deployment as a catalyst for enterprise spending and IT services recovery. |
Artificial Intelligence Cloud Enterprise Technology Semiconductors |
ValueThe fund's value philosophy continues to drive outperformance as international value stocks remain in the least expensive valuation quartile relative to growth. Historical discount levels often preceded attractive relative returns for value stocks over subsequent three- to five-year periods. The fund trades at compelling valuations while offering attractive long-term growth characteristics. |
Valuation Discount Growth Outperformance Philosophy | |
AutomationSMC Corporation represents exposure to factory automation trends through pneumatic components used in robotics, packaging, medical and automotive systems. The company's exposure to factory automation may provide long-term tailwinds even as pneumatics grows more slowly than robotics. Industrial automation cycle recovery could drive margin improvement. |
Factory Robotics Industrial Pneumatics Manufacturing | |
| 2025 Q2 |
AIAI-related investments drove strong performance across multiple holdings. Alibaba benefited from aggressive AI investment plans and growth in AI-related products and cloud revenue. Samsung and TSMC gained from positive AI sentiment. Capgemini is positioned to benefit from increased corporate spending on enterprise AI applications despite near-term headwinds. |
Artificial Intelligence Cloud Enterprise Technology Semiconductors |
ValueThe fund's value philosophy continues to drive outperformance as international value stocks remain in the least expensive valuation quartile relative to growth. The manager emphasizes compelling valuations across holdings and expects continued rotation toward value investing to benefit the fund's positioning. |
Valuation Discount Undervalued Price Rotation | |
AutomationSMC Corporation represents exposure to factory automation trends through its dominant position in pneumatic components used in robotics, packaging, and industrial applications. The company's exposure to automation may provide long-term tailwinds despite near-term cyclical pressures. |
Factory Robotics Industrial Pneumatics Manufacturing | |
| 2025 Q1 |
ValueThe fund emphasizes value investing philosophy with holdings trading at compelling valuation levels relative to benchmarks. International stocks and value stocks offer attractive return potential based on current valuations, with value stocks trading in the cheapest quartile relative to growth stocks historically. |
Value Valuation Discount Multiple Intrinsic |
AerospaceTop performers included aerospace and defense companies Rolls-Royce and Embraer, which appreciated substantially as end markets recovered with better-than-expected earnings, higher volumes, and enhanced margins. Both companies benefited from strengthening balance sheets and expanding order backlogs. |
Aerospace Defense Recovery Margins Backlog | |
BeveragesThe fund has been finding more opportunities in the beverage industry over the past year, with notable contributors including Heineken Holding and Budweiser Brewing APAC. The team also added spirits company Pernod Ricard despite demand weakness in the U.S. and China. |
Beverages Spirits Premium Brands Emerging | |
SemiconductorsTechnology-related stocks including semiconductor holdings STMicroelectronics and TSMC pulled back amid concerns around semiconductor capital expenditure spending triggered by DeepSeek's lower-cost AI model announcement. TSMC also faced skepticism about substantial U.S. spending plans. |
Semiconductors Technology AI Capex Cyclical | |
| 2024 Q4 |
SemiconductorsThe fund initiated a position in STMicroelectronics, a semiconductor supplier with diverse exposure to automotive, industrial, and personal electronics markets. While the auto semiconductor market weakness has pressured near-term results, the manager believes current challenges are cyclical and sees compelling long-term growth from electric vehicles, ADAS, and IoT adoption. |
Automotive Cyclical Electric Vehicles IoT ADAS |
ValueThe manager emphasizes trading at attractive valuation levels relative to U.S. stocks and highlights the significant valuation gap between international and U.S. equities. Multiple portfolio exits occurred as positions reached intrinsic value estimates, including Marks and Spencer and Contemporary Amperex Technology. |
Valuation Intrinsic Value Discount Margin of Safety | |
ChinaChinese holdings including Alibaba and Budweiser Brewing APAC were notable detractors as stocks pulled back after initial stimulus optimism proved overdone. Consumer holdings with China exposure faced headwinds throughout the quarter. |
Stimulus Consumer Volatility |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 23, 2026 | Fund Letters | Jeffrey Germain | MNDI LN | Mondi plc | Materials | Containers & Packaging | Bull | New York Stock Exchange | Container board, Cyclicality, Margin recovery, Packaging, Sustainability | Login |
| Jan 23, 2026 | Fund Letters | Jeffrey Germain | NG LN | National Grid plc | Utilities | Electric Utilities | Bull | New York Stock Exchange | CapEx, Decarbonization, Electrification, Inflation Protection, Regulated utilities | Login |
| Jan 23, 2026 | Fund Letters | Jeffrey Germain | TSCO LN | Tesco plc | Consumer Staples | Food Retail | Bear | New York Stock Exchange | Competition, grocery retail, Margins, turnaround, Valuation Discipline | Login |
| Oct 24, 2025 | Fund Letters | Jeffrey Germain | SMC JP | SMC Corporation | Energy | Machinery | Bull | NYSE | Automation, balance sheet, Industrials, manufacturing, Margins, Pneumatics, Value | Login |
| Oct 24, 2025 | Fund Letters | Jeffrey Germain | SMC JP | SMC Corporation | Energy | Machinery | Bull | NYSE | Automation, balance sheet, Industrials, manufacturing, Margins, Pneumatics, Value | Login |
| Sep 30, 2025 | Fund Letters | Brandes International Equity Fund | 6273.T | SMC Corporation | Industrials | Industrial Machinery | Bull | Tokyo Stock Exchange | Cyclical, Defensive Moat, Factory Automation, Industrial automation, Japan, manufacturing, market leader, Pneumatic Components, robotics, Value | Login |
| Mar 31, 2025 | Fund Letters | Brandes International Equity Fund | WMMVY | Wal-Mart de Mexico | Consumer Staples | Food & Staples Retailing | Bull | OTC | defensive, dominant market position, Free Cash Flow, Mexico, net cash, retailer, Value | Login |
| Mar 31, 2025 | Fund Letters | Brandes International Equity Fund | CAP.PA | Capgemini | Information Technology | IT Services | Bull | Euronext Paris | AI, cloud, Digital transformation, Discount to peers, france, High Returns on Capital, IT services, Value | Login |
| Mar 31, 2025 | Fund Letters | Brandes International Equity Fund | RI.PA | Pernod Ricard | Consumer Staples | Beverages | Bull | Euronext Paris | brand portfolio, defensive, Emerging markets, france, operating leverage, premium spirits, Value | Login |
| Dec 31, 2024 | Fund Letters | Brandes International Equity Fund | MKS.L | Marks and Spencer | Consumer Discretionary | Multiline Retail | Neutral | London Stock Exchange | Apparel, Food Retail, Free Cash Flow, Property Ownership, retailer, turnaround, UK, Value Realization | Login |
| Dec 31, 2024 | Fund Letters | Brandes International Equity Fund | STM | STMicroelectronics | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | Adas, automotive, Cyclical, Electric Vehicles, IoT, Microcontrollers, Netherlands, Power Semiconductors, semiconductors, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| PBR | Brazil's Petroleo Brasileiro (Petrobras) was a top performer in the quarter, benefiting from higher oil prices and its lack of production exposure in the region. |
| 005930.KS | Shares of Samsung Electronics advanced as infrastructure spending linked to AI continued to underpin memory demand and pricing. Given its scale, balance-sheet strength, and vertically integrated manufacturing footprint, Samsung is well positioned, in our opinion, to see robust growth in margins and free-cash-flow generation. |
| STM | France-based STMicroelectronics also added to performance after it announced a collaboration with Amazon Web Services. Growing confidence in a potential rebound for automotive and industrial chips also boosted the company's shares. While sentiment toward semiconductors became more volatile later in the period, STMicroelectronics fared relatively well, thanks to its diversified revenue base, exposure to long-cycle applications, and strong customer relationships. |
| 4502.T | Within pharmaceuticals, Japan-based Takeda Pharmaceutical and Astellas Pharma both performed well. |
| 4503.T | Astellas benefited from improved market optimism around its drug pipeline as well as the release of solid earnings results. |
| F34.SI | Other contributors included Singapore-based agribusiness company Wilmar International. The company saw its shares increase as agricultural commodity prices climbed amid shipping disruptions in the Strait of Hormuz, which represents an important corridor for both energy supplies and agricultural trade. |
| CAP.PA | France-based IT services company Capgemini declined as investors reassessed the potential impact of generative AI on traditional IT services models, particularly in application development and consulting. Although Capgemini has been investing in higher-value digital offerings and its services remain deeply embedded in the operations of large enterprise clients, market sentiment during the quarter reflected worries that AI-driven automation could compress pricing and dampen discretionary IT spending. |
| OTEX | Canada-based software company OpenText also detracted from performance. Investor concerns centered on the durability of legacy enterprise software models amid rapid advances in AI-enabled information-management tools. While OpenText continued to generate substantial recurring revenue from its mission-critical software, uncertainty around integration execution and AI-related disruption weighed on sentiment. In our view, the market has placed disproportionate emphasis on near-term disruption risk while underappreciating the strength of OpenText's installed base and customer switching costs, leading the company to trade at what we consider appealing valuations. |
| SAP | Similarly, intensifying competition and uncertainty over how quickly AI-driven innovation will translate into incremental revenue growth weighed on German enterprise software vendor SAP. Despite these challenges, SAP continued to benefit from a deeply embedded customer base and long-term secular demand for enterprise resource planning solutions. We took advantage of the share-price decline to add to the Fund's position. |
| PUB.PA | Within advertising, French Publicis Groupe and U.K.-based WPP were notable detractors. Despite posting better-than-expected earnings, Publicis guided for slightly weaker growth than the market had anticipated. Additionally, the broader sell-off in businesses perceived as vulnerable to potential AI disruption negatively impacted Publicis, along with its peer WPP. While these structural questions persist, we believe the market response during the quarter overstated near-term risks, while giving little credit to the long-term adaptability and client relationships of these franchises. |
| WPP.L | Within advertising, French Publicis Groupe and U.K.-based WPP were notable detractors. Despite posting better-than-expected earnings, Publicis guided for slightly weaker growth than the market had anticipated. Additionally, the broader sell-off in businesses perceived as vulnerable to potential AI disruption negatively impacted Publicis, along with its peer WPP. While these structural questions persist, we believe the market response during the quarter overstated near-term risks, while giving little credit to the long-term adaptability and client relationships of these franchises. |
| KER.PA | Beyond these businesses, French luxury goods company Kering also hurt returns as the broader luxury industry faced pressure amid a more cautious global consumer backdrop. |
| SW.PA | During the quarter, we initiated a position in France-based Sodexo, a global leader in food services and facilities management. Sodexo provides outsourced services to corporate, education, health care, and government clients in more than 40 countries, with a business model anchored by long-term contracts and high renewal rates. The company generates the majority of its revenue from onsite services, including contract catering and facilities management, where scale advantages and operational complexity create meaningful barriers to entry. Sodexo has fallen out of favor after several years of operational challenges, including labor cost inflation, inconsistent execution across regions, and investor skepticism following the spin-off of its employee benefits business. In North America, the company has underperformed peers, which further weighed on the shares. In our view, this pessimism has created an opportunity to invest in what we consider a well-positioned, cash-generative business at a valuation that does not reflect its long-term earnings power. We believe the market is underestimating Sodexo's ability to pass through cost inflation over time, improve margins through operational initiatives, and benefit from secular outsourcing trends across corporate and institutional customers. In our view, the company's global scale, diversified end markets, and recurring revenue profile should provide resilience across economic cycles. At current valuation levels, Sodexo trades at a meaningful discount to our estimate of intrinsic value. We see an attractive margin of safety, supported by strong returns on capital, a solid balance sheet, and the potential for earnings recovery as execution improves. |
| ENGI.PA | We exited the Fund's position in France-based utility Engie during the quarter after the share price approached our estimate of intrinsic value. We first invested in Engie (formerly known as GDF Suez) more than a decade ago when the company was undergoing a strategic transformation away from a complex, capital-intensive utility model toward a more focused portfolio centered on regulated infrastructure, renewables, and energy services. At the time of our initial investment, Engie faced structural challenges, including volatile commodity exposure and an overextended balance sheet. We believed these issues were solvable and that the market was undervaluing the durability of the company's asset base and cash-flow potential. Over our holding period, Engie executed meaningfully on this thesis. The company simplified its portfolio, reduced exposure to merchant power generation, strengthened its balance sheet, and increased its focus on regulated and contracted assets. More recently, Engie benefited from improved sentiment toward energy infrastructure and utilities, particularly as energy security and electrification became increasingly important global themes. These developments contributed to a re-rating of the shares and strong absolute performance. As the stock price rose toward our estimate of intrinsic value, we elected to divest the position and redeploy capital into opportunities where we see a more compelling margin of safety. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||