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3 Brandes Mutual Funds to Support Your Wealth-Building Strategy
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Brandes Investment Partners is a globally recognized asset manager known for its disciplined value investing philosophy. Founded in 1974, the firm has built its reputation on identifying undervalued companies with strong long-term potential, often overlooked by the broader market. Its mutual fund offerings reflect this core approach, focusing on fundamental research and a long-term investment horizon.
Brandes mutual funds typically emphasize a bottom-up stock selection process, relying on detailed company analysis rather than macroeconomic trends. The firm’s strategy is rooted in classic value principles inspired by Benjamin Graham, seeking securities trading below their intrinsic worth. This approach can lead to portfolios that differ significantly from benchmark indices, often resulting in periods of underperformance during growth-driven market cycles but potential outperformance over the long run.
A defining feature of Brandes mutual funds is their global perspective. The firm invests across developed and emerging markets, offering diversified exposure while maintaining strict valuation discipline. Risk management is integrated into the investment process, with attention to downside protection and margin of safety.
However, investors should be aware that value investing requires patience. Brandes funds may lag during momentum-driven markets when growth stocks dominate. Still, their consistent adherence to a time-tested philosophy appeals to investors seeking a contrarian approach and long-term capital appreciation.
Hence, it will be prudent to invest in Brandes mutual funds if one is seeking stability in a market that is expected to remain volatile for a while. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and carry a low expense ratio.
Brandes Separately Managed Account Reverse Trust (SMARX - Free Report) invests in a diversified mix of debt securities, including government and corporate bonds, mortgage-backed and asset-backed instruments, across varying maturities, spanning both investment-grade and high-yield segments globally.
David J. Gilson has been the lead manager of SMARX since 2007. The three top holdings for SMARX are U.S. Treasury Bond (31.7%), Bank of America (3.4%) and Goldman Sachs (3.1%).
SMARX’s 3-year and 5-year annualized returns are 5.9% and 2.4%, respectively, and its net expense ratio is 0.00%. SMARX has a Zacks Mutual Fund Rank #2. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Brandes International Equity Fund (BIERX - Free Report) primarily invests in equities of large foreign companies, defined by domicile, operations, listing, or revenue sources, maintaining broad international exposure across multiple countries outside the United States.
Jeffrey Germain has been the lead manager of BIERX since 2019. The three top holdings for BIERX are Sanofi (2.7%), Takeda Pharma (2.6%) and Samsung (2.5%).
BIERX’s 3-year and 5-year annualized returns are 21.6% and 13.7%, respectively, and its net expense ratio is 0.75%. BIERX has a Zacks Mutual Fund Rank #1.
Brandes International Small Cap Equity Fund (BISMX - Free Report) primarily invests in equities of small-cap foreign companies, maintaining broad diversification by allocating most assets across multiple countries outside the United States under normal market conditions.
Luiz G. Sauerbronn has been the lead manager of BISMX since 2012. The three top holdings for BISMX are Lisi (4.4%), Montana Aerospace (4.3%) and Kennametal (3.3%).
BISMX’s 3-year and 5-year annualized returns are 29.8% and 19.1%, respectively, and its net expense ratio is 1.07%. BISMX has a Zacks Mutual Fund Rank #1.
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3 Brandes Mutual Funds to Support Your Wealth-Building Strategy
Brandes Investment Partners is a globally recognized asset manager known for its disciplined value investing philosophy. Founded in 1974, the firm has built its reputation on identifying undervalued companies with strong long-term potential, often overlooked by the broader market. Its mutual fund offerings reflect this core approach, focusing on fundamental research and a long-term investment horizon.
Brandes mutual funds typically emphasize a bottom-up stock selection process, relying on detailed company analysis rather than macroeconomic trends. The firm’s strategy is rooted in classic value principles inspired by Benjamin Graham, seeking securities trading below their intrinsic worth. This approach can lead to portfolios that differ significantly from benchmark indices, often resulting in periods of underperformance during growth-driven market cycles but potential outperformance over the long run.
A defining feature of Brandes mutual funds is their global perspective. The firm invests across developed and emerging markets, offering diversified exposure while maintaining strict valuation discipline. Risk management is integrated into the investment process, with attention to downside protection and margin of safety.
However, investors should be aware that value investing requires patience. Brandes funds may lag during momentum-driven markets when growth stocks dominate. Still, their consistent adherence to a time-tested philosophy appeals to investors seeking a contrarian approach and long-term capital appreciation.
Hence, it will be prudent to invest in Brandes mutual funds if one is seeking stability in a market that is expected to remain volatile for a while. Astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns and carry a low expense ratio.
Brandes Separately Managed Account Reverse Trust (SMARX - Free Report) invests in a diversified mix of debt securities, including government and corporate bonds, mortgage-backed and asset-backed instruments, across varying maturities, spanning both investment-grade and high-yield segments globally.
David J. Gilson has been the lead manager of SMARX since 2007. The three top holdings for SMARX are U.S. Treasury Bond (31.7%), Bank of America (3.4%) and Goldman Sachs (3.1%).
SMARX’s 3-year and 5-year annualized returns are 5.9% and 2.4%, respectively, and its net expense ratio is 0.00%. SMARX has a Zacks Mutual Fund Rank #2. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Brandes International Equity Fund (BIERX - Free Report) primarily invests in equities of large foreign companies, defined by domicile, operations, listing, or revenue sources, maintaining broad international exposure across multiple countries outside the United States.
Jeffrey Germain has been the lead manager of BIERX since 2019. The three top holdings for BIERX are Sanofi (2.7%), Takeda Pharma (2.6%) and Samsung (2.5%).
BIERX’s 3-year and 5-year annualized returns are 21.6% and 13.7%, respectively, and its net expense ratio is 0.75%. BIERX has a Zacks Mutual Fund Rank #1.
Brandes International Small Cap Equity Fund (BISMX - Free Report) primarily invests in equities of small-cap foreign companies, maintaining broad diversification by allocating most assets across multiple countries outside the United States under normal market conditions.
Luiz G. Sauerbronn has been the lead manager of BISMX since 2012. The three top holdings for BISMX are Lisi (4.4%), Montana Aerospace (4.3%) and Kennametal (3.3%).
BISMX’s 3-year and 5-year annualized returns are 29.8% and 19.1%, respectively, and its net expense ratio is 1.07%. BISMX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>