Asia Pacific (ex-Japan) Equity Strategy

Investment Strategies

Participate in the Excitement and Economic Optimism

  • Economic Expansion Potential — IMF forecasts that the Asia Pacific region will remain the global economic growth leader over the medium term.1
  • Improving Demographics and Socioeconomics  — The region benefits from a young and growing population, and a burgeoning middle class.
  • Refining Public Policies  — Public debt levels are low, especially compared to developed markets, and balance of payments and foreign exchange reserves are strong.2
  • Diversification  — We believe Asia Pacific equities have been often overlooked in constructing a well-diversified portfolio.

Utilize Discipline and Experience When Investing in Asia

  • Application of a Disciplined Value Process — Contrary to perception, value investing has outperformed growth investing in Asia equities.3
  • Active Approach, Company Focused — Helps identify companies that the market may be mispriced.
  • Long-term Emphasis — Allows opportunity to potentially capitalize on short-term market volatility.
  • Regional Experience — Brandes has been investing in Asia for over 35 years, and with a standalone strategy since 1996.

Partner with a Pioneer in Global Value Investing

  • Experienced Professionals — The Investment Team is composed of experienced professionals who have managed through extreme market cycles.
  • Commitment to a Transparent, Easy-to-Understand Investment Process — The strategy consistently applies a Graham and Dodd, value investing approach centered on a research-driven process of purchasing potentially undervalued companies with the goal of capturing future price appreciation. 
  • Independent Point of View — Brandes Investment Partners is a 100% employee owned firm and its strategies are unhindered by sales quotas or any outside influence that may impede the firm’s pursuit of investment management excellence. 

Past performance is not a guarantee of future results.

No investment strategy can assure a profit or protect against loss. Diversification does not assure a profit or protect against a loss in a declining market.

1 International Monetary Fund’s Regional Economic Outlook: Asia and Pacific, April 2015

2 Source: IMF. World Economic Outlook, April 2015 http://www.imf.org/external/pubs/ft/weo/2015/01/pdf/text.pdf. There is no assurance that a forecast will be accurate. Because of the many variables involved, an investor should not rely on forecasts without realizing their limitations.

3 Source: FactSet from 12/31/1997 to 06/30/2017; this data is since inception of the MSCI AC Asia ex-Japan Value and Growth indices. Annualized relative performance over a five-year rolling period. Past performance is not a guarantee of future results. Rolling periods represent a series of overlapping, smaller time periods within a single, longer-term time period. For example, over a 20-year period, there is one 20-year rolling period, eleven 10-year rolling periods, sixteen 5-year rolling periods, and so forth.

Value stocks are represented by the MSCI AC Asia ex Japan Value Index. Growth stocks are represented by the MSCI AC Asia ex Japan Growth Index. One cannot invest directly into an index. For each period, relative performance was calculated by subtracting the annualized 5-year returns of the MSCI AC Asia ex Japan Growth Index from the MSCI AC Asia ex Japan Value Index. A negative result in this calculation indicates that growth outperformed while a positive result indicates that value outperformed.

The MSCI AC Asia Pacific ex Japan Index with net dividends captures large and mid cap representation of developed and emerging markets in the Asia Pacific region, excluding Japan. Data prior to 2001 is gross dividend and linked to the net dividend returns.  

The MSCI AC Asia ex Japan Growth Index with gross dividends measures the equity market performance of developed and emerging markets in the Asia region excluding Japan. The five attributes for growth index construction are: 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, long-term historical sales per share growth trend.  

The MSCI AC Asia ex Japan Value Index with gross dividends measures equity market performance of developed and emerging markets in the Asia region excluding Japan. The attributes for value index construction are 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.

International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes, differences in financial reporting standards and less stringent regulation of securities markets which may result in greater share price volatility.
This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

The Brandes Asia Pacific (ex-Japan) Equity Strategy* seeks long-term capital appreciation by investing primarily in equity securities of Asian issuers other than Japanese issuers as well as issuers from Australia and New Zealand. There is no limitation on the market capitalization of the issuers in which the strategy may invest.

The strategy benchmark is the MSCI AC Asia ex Japan Index.

In September 2016 the strategy benchmark changed from gross of withholding tax to net of withholding tax, effective back to the inception date of the strategy. For periods where the net dividend returns are not available gross benchmark returns are used and linked to the net benchmark returns. The change was made to better reflect our expectation for an investor’s actual experience.

*As of February 1, 2013 the Brandes Asia (ex-Japan) Equity Strategy was renamed as the Brandes Asia Pacific (ex-Japan) Equity Strategy to better reflect the strategy’s investment style.

GIPS® Compliant Presentation:

Annualized Performance (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Asia Pacific (ex-Japan) Equity
4.79%
12.63%
7.79%
10.46%
13.43%
11.82%
15.67%
Primary Benchmark (a)
1.95%
13.25%
5.66%
7.86%
8.03%
9.90%
9.83%
Relative Performance
2.84%
-0.62%
2.13%
2.60%
5.40%
1.92%
5.84%

Annualized Performance (Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Asia Pacific (ex-Japan) Equity
5.78%
13.71%
8.84%
11.58%
14.62%
13.05%
16.93%
Primary Benchmark (a)
1.95%
13.25%
5.66%
7.86%
8.03%
9.90%
9.83%
Relative Performance
3.83%
0.46%
3.18%
3.72%
6.59%
3.15%
7.10%

Annual Periods (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
2017
2016
2015
2014
2013
2012
2011
Asia Pacific (ex-Japan) Equity
26.77%
11.02%
-9.82%
8.45%
17.68%
24.22%
-14.80%
Primary Benchmark (a)
36.99%
6.75%
-9.37%
2.82%
3.41%
22.31%
-15.60%
 
2010
2009
2008
2007
2006
2005
2004
Asia Pacific (ex-Japan) Equity
30.84%
121.65%
-56.89%
13.20%
35.64%
14.67%
24.81%
Primary Benchmark (a)
18.13%
73.22%
-51.93%
36.46%
32.39%
20.15%
22.20%
 
2003
2002
2001
2000
1999
1998
Asia Pacific (ex-Japan) Equity
63.78%
5.44%
-1.01%
8.32%
55.84%
-1.78%
Primary Benchmark (a)
47.67%
-5.57%
-2.79%
-29.97%
49.83%
-4.42%

Quarterly Performance (Net And Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
 
1Q
2Q
3Q
4Q
YTD
2018
NET
GROSS
Primary Benchmark (a)
00 -0.32%
00 -0.09%
00 -0.59%
00 -2.74%
00 -2.51%
00 -3.60%
-00 1.06%
-00 1.30%
00 -1.44%
-0000000
-0000000
-0000000
00 -2.03%
00 -1.33%
00 -5.54%
2017
NET
GROSS
Primary Benchmark (a)
-0 12.40%
-0 12.67%
-0 12.82%
-00 4.08%
-00 4.33%
-00 6.21%
-00 1.31%
-00 1.55%
-00 5.93%
-00 6.95%
-00 7.21%
-00 7.93%
-0 26.77%
-0 27.98%
-0 36.99%
2016
NET
GROSS
Primary Benchmark (a)
-00 4.60%
-00 4.85%
-00 1.90%
-00 3.21%
-00 3.46%
-00 0.46%
-00 5.87%
-00 6.12%
-00 9.69%
00 -2.87%
00 -2.64%
00 -4.92%
-0 11.02%
-0 12.08%
-00 6.75%
2015
NET
GROSS
Primary Benchmark (a)
00 -1.47%
00 -1.24%
-00 4.44%
-00 1.46%
-00 1.70%
00 -1.02%
0 -12.95%
0 -12.74%
0 -16.63%
-00 3.63%
-00 3.87%
-00 5.16%
00 -9.82%
00 -8.96%
00 -9.37%
2014
NET
GROSS
Primary Benchmark (a)
00 -0.15%
-00 0.11%
-00 0.99%
-0 12.48%
-0 12.77%
-00 6.04%
-00 1.88%
-00 2.15%
00 -3.26%
00 -5.21%
00 -4.96%
00 -0.75%
-00 8.45%
-00 9.59%
-00 2.82%
2013
NET
GROSS
Primary Benchmark (a)
-00 4.50%
-00 4.77%
-00 1.97%
00 -5.52%
00 -5.25%
00 -7.61%
-0 10.48%
-0 10.77%
-00 7.32%
-00 7.89%
-00 8.17%
-00 2.28%
-0 17.68%
-0 18.95%
-00 3.41%
2012
NET
GROSS
Primary Benchmark (a)
-0 15.00%
-0 15.30%
-0 12.49%
00 -7.18%
00 -6.94%
00 -6.39%
-00 8.30%
-00 8.58%
-00 9.60%
-00 7.45%
-00 7.80%
-00 5.98%
-0 24.22%
-0 25.60%
-0 22.31%
2011
NET
GROSS
Primary Benchmark (a)
00 -1.08%
00 -0.81%
-00 2.03%
-00 1.71%
-00 1.99%
00 -0.11%
0 -16.80%
0 -16.57%
0 -20.64%
-00 1.79%
-00 2.07%
-00 4.35%
0 -14.80%
0 -13.85%
0 -15.60%
2010
NET
GROSS
Primary Benchmark (a)
-00 7.82%
-00 8.12%
-00 2.05%
00 -5.44%
00 -5.18%
00 -8.91%
-0 16.57%
-0 16.89%
-0 18.20%
-0 10.09%
-0 10.40%
-00 7.50%
-0 30.84%
-0 32.30%
-0 18.13%
2009
NET
GROSS
Primary Benchmark (a)
-00 3.43%
-00 3.73%
00 -0.04%
-0 43.21%
-0 43.62%
-0 33.07%
-0 34.22%
-0 34.61%
-0 22.76%
-0 11.49%
-0 11.80%
-00 6.09%
- 121.65%
- 124.20%
-0 73.22%
2008
NET
GROSS
Primary Benchmark (a)
00 -5.94%
00 -5.68%
0 -13.72%
0 -13.29%
0 -13.05%
00 -4.73%
0 -26.95%
0 -26.75%
0 -24.03%
0 -27.63%
0 -27.42%
0 -23.02%
0 -56.89%
0 -56.40%
0 -51.93%
2007
NET
GROSS
Primary Benchmark (a)
-00 6.28%
-00 6.58%
-00 3.44%
-0 15.64%
-0 15.96%
-0 14.19%
00 -0.74%
00 -0.47%
-0 16.22%
00 -7.21%
00 -6.96%
00 -0.59%
-0 13.20%
-0 14.45%
-0 36.46%
2006
NET
GROSS
Primary Benchmark (a)
-00 7.68%
-00 8.02%
-00 8.03%
00 -1.82%
00 -1.52%
00 -0.02%
-00 9.05%
-00 9.39%
-00 5.77%
-0 17.65%
-0 18.02%
-0 15.89%
-0 35.64%
-0 37.33%
-0 32.39%
2005
NET
GROSS
Primary Benchmark (a)
-00 2.52%
-00 2.84%
-00 1.48%
-00 1.96%
-00 2.28%
-00 4.05%
-00 2.95%
-00 3.27%
-00 9.43%
-00 6.55%
-00 6.88%
-00 3.98%
-0 14.67%
-0 16.11%
-0 20.15%
2004
NET
GROSS
Primary Benchmark (a)
-00 6.37%
-00 6.71%
-00 7.04%
00 -3.10%
00 -2.80%
00 -7.96%
-00 6.08%
-00 6.41%
-00 7.44%
-0 14.14%
-0 14.50%
-0 15.45%
-0 24.81%
-0 26.37%
-0 22.20%
2003
NET
GROSS
Primary Benchmark (a)
00 -3.55%
00 -3.25%
00 -3.41%
-0 24.70%
-0 25.08%
-0 17.83%
-0 17.65%
-0 18.02%
-0 12.87%
-0 15.75%
-0 16.11%
-0 14.96%
-0 63.78%
-0 65.83%
-0 47.67%
2002
NET
GROSS
Primary Benchmark (a)
-0 15.14%
-0 15.50%
-00 9.46%
-00 1.21%
-00 1.52%
00 -4.37%
0 -11.20%
0 -10.92%
0 -13.93%
-00 1.88%
-00 2.23%
-00 4.81%
-00 5.44%
-00 6.78%
00 -5.57%
2001
NET
GROSS
Primary Benchmark (a)
00 -2.84%
00 -2.60%
00 -6.21%
-00 8.25%
-00 8.52%
-00 1.86%
0 -21.40%
0 -21.21%
0 -19.19%
-0 19.75%
-0 20.04%
-0 25.93%
00 -1.01%
00 -0.02%
00 -2.79%
2000
NET
GROSS
Primary Benchmark (a)
-0 18.26%
-0 18.51%
00 -1.92%
00 -0.35%
00 -0.10%
00 -8.33%
00 -8.72%
00 -8.47%
0 -14.40%
-00 0.70%
-00 0.95%
00 -9.01%
-00 8.32%
-00 9.39%
0 -29.97%
1999
NET
GROSS
Primary Benchmark (a)
-00 3.45%
-00 3.70%
-00 7.95%
-0 37.21%
-0 37.46%
-0 24.92%
00 -5.76%
00 -5.51%
00 -6.39%
-0 16.50%
-0 16.74%
-0 18.70%
-0 55.84%
-0 57.24%
-0 49.83%
1998
NET
GROSS
Primary Benchmark (a)
-0 10.78%
-0 11.18%
-00 8.75%
0 -29.80%
0 -29.63%
0 -24.86%
00 -8.50%
00 -8.28%
00 -8.49%
-0 38.04%
-0 38.29%
-0 27.82%
00 -1.78%
00 -0.76%
00 -4.42%

Composite Characteristics

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
#Accts
Assets
(mil)
Dispersion
% of non-fee
paying assets
Total Firm
Assets (mil)
2018
-000,00 1
-000,0 27
-000,
-000,
-0 22,449
2017
-000,00 1
-000,0 27
-00, N/A
-00 0
-0 25,578
2016
-000,00 1
-000,0 21
-00, N/A
-00 0
-0 22,971
2015
-000,00 1
-000,0 19
-00, N/A
-00 0
-0 20,666
2014
-000,00 1
-000,0 21
-00, N/A
-0 88
-0 20,722
2013
-000,00 1
-000,0 24
-00, N/A
-0 68
-0 21,464
2012
-000,00 1
-000,0 16
-00, N/A
-0 88
-0 22,171
2011
-000,00 1
-000,0 13
-00, N/A
-0 88
-0 26,658
2010
-000,00 1
-000,0 15
-00, N/A
-0 88
-0 38,659
2009
-000,00 1
-000,0 12
-00, N/A
-0 88
-0 42,152
2008
-000,00 1
-000,00 5
-00, N/A
-0 88
-0 40,591
2007
-000,00 1
-000,0 16
-00, N/A
-0 63
-0 83,242
2006
-000,00 1
-000,0 13
-00, N/A
-0 67
-0 85,974
2005
-000,00 1
-000,00 8
-00, N/A
-0 79
- 101,874
2004
-000,00 1
-000,00 5
-00, N/A
- 100
-0 98,078
2003
-000,00 1
-000,00 4
-00, N/A
- 100
-0 75,789
2002
-000,00 1
-000,00 2
-00, N/A
- 100
-0 51,808
2001
-000,00 1
-000,00 2
-00, N/A
- 100
-0 61,996
2000
-000,00 1
-000,00 2
-00, N/A
- 100
-0 50,852
1999
-000,00 1
-000,00 2
-00, N/A
- 100
-0 41,538
1998
-000,00 1
-000,00 1
-00, N/A
- 100
-0 25,125
THROUGH September 30, 2018 | REPORTING CURRENCY: USD

The results for individual accounts and for different periods may vary.  Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.
As of September 30, 2013, Brandes Investment Partners includes the non-SMA Division of Brandes Investment Partners L.P., Brandes Investment Partners (Europe) Limited, Brandes Investment Partners (Asia) Pte Ltd and the Brandes Investment Partners & Co. assets sub-advised by Brandes Investment Partners, L.P. The firm was redefined to reflect the expansion of the organization. As of January 1, 2006, Brandes Investment Partners was divided into two separate divisions: the SMA Division of Brandes Investment Partners, which acts as a discretionary manager to SMA or “wrap fee” program clients, including those who may invest in an SMA product; and the non-SMA Division of Brandes Investment Partners (Brandes), which acts as a discretionary manager for all other types of clients which may include pooled investment vehicles, institutional accounts and high net worth clients outside of wrap fee programs. Although the divisions may share portfolio management and other personnel, each division serves a particular target market, may trade in a different manner and may offer investment advice which differs from the other depending upon the individualized needs of the clients served. The performance data presented does not contain any SMA Division accounts.
The Brandes Asia Pacific (ex-Japan) Equity Composite seeks to achieve long-term capital appreciation by investing primarily in equity securities of Asian issuers other than Japanese issuers, as well as issuers from Australia and New Zealand. There is no limitation on the market capitalization of the issuers in which the composite may invest. Emerging markets securities pose greater liquidity risks and other risks than securities of companies located in developed countries and traded in more established markets.
Brandes claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions and/or presentation that complies with GIPS standards, contact client service at 800-237-7119 or write 11988 El Camino Real, Suite 600, P.O. Box 919048, San Diego, California 92191-9048 or email ClientService@Brandes.com.
(a) The MSCI AC Asia Pacific ex Japan Index with net dividends captures large and mid cap representation of developed and emerging markets in the Asia Pacific region, excluding Japan. Data prior to 2001 is gross dividend and linked to the net dividend returns. 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. The benchmark returns are not covered by the report of independent verifiers.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

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