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PartnerSelect International Fund MSILX

Seeking superior long-term performance relative to its peer group of international stock funds.

Overview

PartnerSelect International Fund, formerly known as Litman Gregory Masters International Fund, invests in foreign stocks and seeks superior long-term performance relative to its peer group of international stock funds. Each of the managers separately runs a portion of the portfolio composed of his highest conviction stocks. The fund may invest in emerging markets, although it is expected that exposure to developed markets will be significantly greater. Although each manager runs a concentrated portfolio of no fewer than 8 or more than 15 of his favorite ideas, the fund as a whole is diversified by industry, country and stocks.

Typically, the fund holds between 48 and 90 securities. The fund seeks to maintain risk in line with its peer group of international stock funds.

This fund is appropriate for investors who:

  • Want a core international equity investment with some exposure to emerging markets and small companies
  • Seek strong market-cycle performance but are less concerned about short-term returns
  • Understand the risks associated with international investing

DUE DILIGENCE TOOLKIT

Managers

Evermore Global Advisors

Target Manager Allocation: 25%

Stock-Picking Style: Value

David Marcus

Co-Founder, CEO, CIO
Read the full manager bio

David Marcus is Co-Founder, CEO and CIO of Evermore Global Advisors, LLC. He co-founded the firm in 2009. David is portfolio manager of the Evermore Global Value Fund and our separate account portfolios. Beginning his career in 1988 at Mutual Series Fund, where he was mentored by renowned value investor Michael Price, David rose to manage the Mutual European Fund and co-manage the Mutual Shares and Mutual Discovery Funds, representing over $14 billion in assets. He also served as director of European investments for Franklin Mutual Advisers, LLC. In 2000, David founded Marcstone Capital Management, LP, a long-short Europe-focused equity manager, largely funded by Swedish financier Jan Stenbeck. After Mr. Stenbeck passed away in 2002, Mr. Marcus closed Marcstone, co-founded a family office for the Stenbeck family, and advised on the restructuring of a number of the public and private companies the family controlled. David later founded and served as Managing Partner of MarCap Investors LP, which was seeded by Reservoir Capital. David graduated from Northeastern University in 1988 with a B.S. in Business Administration and a concentration in Finance.

Evermore Global Advisors is a global special situations investment manager with a mission to produce superior long-term investment returns with an emphasis on capital preservation.

Evermore employs a fundamental, bottom-up approach to investing. They focus on complex, misunderstood and under-researched companies around the world that they believe can be purchased for substantially less than our estimate of their intrinsic values and that have several identifiable catalysts present that may create value. They believe catalysts, like strategic corporate change, operational or financial restructurings, are integral to value creation.

Their prior experience as business operators gives them a unique perspective as they attempt to analyze corporate leadership and their planned catalysts, allowing Evermore to better understand the likelihood that such change may be value accretive to shareholders.

Evermore aims to construct concentrated portfolios without regards to benchmarks or peer groups. Evermore’s portfolios have the flexibility to invest opportunistically in any asset class, geography or capitalization. They strictly follow a well-defined and disciplined investment process, whose foundation is built on rigorous, original bottom-up fundamental research, which they believe will ultimately produce non-correlated investment results.

Evermore’s disciplined investment process leverages the company’s value investing pedigree, extensive business operating experience and global relationship network that has been built over the past three decades.

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Harris Associates

Target Manager Allocation: 25%

Stock-Picking Style: Value

David Herro

CIO-International Equities, Portfolio Manager
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David Herro is the Chief Investment Officer-International Equities at Harris Associates L.P. and serves as the Portfolio Manager of The Oakmark International Fund, The Oakmark International Small Cap Fund, The Oakmark Global Select Fund and The Oakmark Global Fund. He was named Morningstar’s International-Stock Fund Manager of the Year for 2006; and International-Stock Fund Manager of the Decade for 2000-2009*.
Herro has been managing international portfolios since 1986, previously managing international portfolios for The State of Wisconsin Investment Board and The Principal Financial Group. Herro, who joined Harris Associates in 1992, holds a B.S. in Business and Economics from the University of Wisconsin-Platteville (1983) and an M.A. in Economics from the University of Wisconsin-Milwaukee (1985). He is a CFA charterholder.
*According to Morningstar, the Morningstar Manager of the Year award is presented to portfolio managers based on the managers’ (i) “ability to generate exceptional returns;” (ii) “willingness to align their interests with shareholders;” and (iii) “courage to stay with their strategies in order to produce superior risk-adjusted returns in the end.“
According to Morningstar, the Fund Manager of the Decade award, which is a new award from Morningstar, recognizes fund managers who have achieved superior risk-adjusted results over the past 10 years and have an established record of serving shareholders well. While the awards focus on performance over the past decade, Morningstar takes into consideration other factors, including the fund manager’s strategy, approach to risk, size of the fund, and stewardship. Both individual fund managers and management teams are eligible, and being a previous winner of the Morningstar Fund Manager of the Year award isn’t a prerequisite. Morningstar’s fund analysts select the Fund Manager of the Decade award winners based on Morningstar’s proprietary research and in-depth evaluation.

Herro employs Harris’ value investment philosophy and process to manage his portion of the fund’s assets. This investment philosophy is based upon the belief that, over time, a company’s stock price converges with the company’s intrinsic or true business value. By “true business value,” Harris means an estimate of the price a knowledgeable buyer would pay to acquire the entire business. In making its investment decisions, Harris uses a “bottom-up” approach focused on individual companies, rather than focusing on specific economic factors or specific industries.

The chief consideration in the selection of stocks is the size of the discount of a company’s stock price compared to the company’s perceived true business value. In addition, Harris looks for companies with the following characteristics, although not all companies will have all of these attributes: free cash flows and intelligent investment of excess cash, earnings that are growing and are reasonably predictable, and a high level of management ownership in the company. Once Harris determines that a stock is selling at a significant discount and that the company has some of the aforementioned attributes, Harris generally will consider buying that stock for a strategy. Harris usually sells a stock when the price approaches its estimated worth. This means Harris sets specific “buy” and “sell” targets for each stock held in its clients’ discretionary accounts. Harris also monitors each holding and adjusts those price targets as warranted to reflect changes in a company’s fundamentals. Harris attempts to manage some of the risks of investing in stocks of companies by purchasing stocks whose prices it considers low relative to the companies’ intrinsic values. In addition, Harris seeks companies with solid finances and proven records and continuously monitors each portfolio holding. Harris attempts to manage some of the risks of investing in foreign securities by considering the relative political and economic stability of a company’s home country, the company’s ownership structure, and the company’s accounting practices.

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Lazard Asset Management

Target Manager Allocation: 25%

Stock-Picking Style: Blend/Relative Value

Mark Little

Managing Director, Portfolio Manager/Analyst
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Mark Little is a Portfolio Manager/Analyst on the International Strategic Equity, International Compounders, and Global Strategic Equity teams. He began working in the investment field in 1992. Prior to joining Lazard in 1997, he was a manager in the corporate finance practice of Coopers & Lybrand and earned his ACA qualification with Rees Pollock Chartered Accountants. Little has an MA in Economics from Clare College, Cambridge University.

Established in 1848, Lazard has long held a preeminent position in the global financial marketplace. Lazard Asset Management LLC, an indirect, wholly-owned subsidiary of Lazard Ltd., is known for its global view on investing and its vast experience with global, regional, and domestic portfolios. With more than 340 investment personnel and offices in 23 cities across 16 countries, we offer investors an array of traditional and alternative investment solutions. Our team-based approach to portfolio management allows us to deliver robust and consistent performance over time, and strong client relationships enhance our ability to employ our capabilities to our clients’ advantage.
As of 30 September 2019, Lazard managed approximately $207.7 billion in assets.*
* Total assets under management include those of Lazard Asset Management LLC (New York) and its affiliates, but do not include those of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Ltd.

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Pictet

Target Manager Allocation: 25%

Stock-Picking Style: Blend

Fabio Paolini

Head of the Greater European Equities Team
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Fabio Paolini joined Pictet Asset Management in 1997. He is Head of Greater European Equities (the group with responsibility for managing EAFE and European equity products) and is Co-Lead of the EAFE Equity strategy. Paolini specific focus is on the European Equities. He began his career in Pictet’s Financial Research department in 1994, initially in the Economics team and then in the European equities research team. Paolini graduated with a degree in Economics from the University of Siena in Italy. He obtained a CFPI/AZEK diploma in 1996 and is a Chartered Financial Analyst (CFA) charterholder.

Benjamin Beneche

Co-Lead of the EAFE Equity Strategy
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Ben Beneche joined Pictet Asset Management in 2008 and is Co-Lead of the EAFE Equity strategy. He has a specific focus is on Japanese and Pacific ex Japan Equities. Beneche graduated from York University with a first class honours degree in Economics and Economic History. He also holds the Investment Management Certificate (IMC) and he is a Chartered Financial Analyst (CFA) charterholder.

Pictet is an independent, privately owned, global investment firm offering, offering wealth management, asset management and related services. Headquartered in Geneva, Switzerland and founded there in 1805, Pictet today employs more than 4,300 people across 27 global offices and has assets under management of USD 557bn. Pictet is a partnership of seven owner-managers responsible for the entire activity of the Group. Their principles of succession and transmission of ownership have remained unchanged since foundation in 1805. Each of the three business lines is under the joint or sole responsibility of a Pictet partner. Their purpose is to build responsible partnerships with their clients, colleagues, communities and the companies in which they invest, in order to safeguard and transmit wealth, of all kinds, in the service of the real economy.

Pictet Asset Management has been dedicated to investment management for institutional investors and financial intermediaries since 1980 and has assets under management of USD 192bn. Pictet provides specialist investment management services through segregated accounts and investment funds to some of the world’s largest pension funds, financial institutions, sovereign wealth funds, intermediaries and their clients. Their business is investment led and cantered around a long-term perspective with a dedication to client service. Pictet’s aim is to be the investment partner of choice to their clients. This means giving them undivided attention, offering pioneering strategies and being committed to excellence.

Pictet do not aspire to be all things to everyone and are a focused multi-boutique asset manager, investing where they can add value for their clients with a belief in the pre-eminence of active manager skill rather than simple style and carry bias. Their managers aim to deliver alpha coupled with high active share and/or astute management of market risk. With no single investment approach, they empower each team to be independent to encourage innovation and accountability.

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Performance

AVERAGE ANNUAL TOTAL RETURN

 

 Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing, or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability, or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates, or any third party involved in or related to compiling, computing, or creating the data have any liability for any direct, indirect, special, punitive, consequential, or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source note: Returns prior to 1999 are the MSCI ACWI ex-US GR index. Returns from 1999 onwards are MSCI ACWI ex-US NR index.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.

Prior to April 30, 2009, the Fund’s Institutional Class was an unnamed share class.

Indexes are unmanaged, do not incur fees and cannot be invested in directly. 

Returns less than one year are not annualized.

AVERAGE ANNUAL TOTAL RETURN

The first rolling 12 month-period is reached 12 months after each fund’s inception (based on month-end dates). The starting and ending periods then “roll” forward one month at a time to comprise a new 12-month period. The first rolling three-year period is reached 36 months after each fund’s inception (based on month-end dates). The starting and ending periods then “roll” forward one month at a time to comprise a new 36-month period. The first rolling five-year period is reached 60 months after each fund’s inception (based on month-end dates). The starting and ending periods then “roll” forward one month at a time to comprise a new 60-month period.

Fund Data

Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. The gross and net expense ratios can be found in the most recent Summary Prospectus (4/29/2020). There are contractual fee waivers in effect through 4/30/2021.

While the fund is no-load, management and other expenses still apply.

Portfolio Holdings

  • To view our most recent portfolio holdings, please click here.

Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

Portfolio Composition (as of 6.30.2020)

Market Capitalization
Small-Cap: < $5.5 Billion
Mid-Cap: $5.5 - $15 Billion
Large-Cap: > $15 Billion

Developed vs. Emerging Markets (as of 6.30.2020)

Market Capitalization
Developed Small: < $5.5 Billion
Developed Large/Mid: > $5.5 Billion

Regional Allocation Vs. MSCI ACWI Ex-u.s. Index (As Of 6.30.2020)

Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
Please click here for index definitions.

Sector Allocation vs. MSCI ACWI ex-U.S. Index (as of 6.30.2020)

Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
*Sectors reflect 12/31/04 change to Thomson One GICS - Telecom & Utilities separated; Industrials & Materials separated.

Geographic Distribution (as of 6.30.2020)

* Emerging markets consist of Arab Emirates, Argentina, Brazil, China, Greece, India, Korea, Malaysia, Mexico, Panama, Philippines, Poland, Russia, South Africa,Taiwan, and Turkey and total 5.61% of the portfolio. Due to rounding totals may not always equal 100%.

Related

Stay Informed

The PartnerSelect Funds monthly email provides investors a way to stay in touch with us and receive information regarding the funds and investment principles in general. Topics may include updates on the funds and managers, further insights into Litman Gregoryʼs processes, and commentary on various aspects of investing.

DISCLOSURE

PartnerSelect Fundsʼ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be viewed here or by calling 1-800-960-0188. Read it carefully before investing.

Mutual fund investing involves risk. Principal loss is possible.

The fund will invest in foreign securities. Investing in foreign securities exposes investors to economic, political, and market risks and fluctuations in foreign currencies. Though not a small-cap fund, the fund may invest in the securities of small companies. Small-company investing subjects investors to additional risks, including security price volatility and less liquidity than investing in larger companies. Investments in emerging-market countries involve additional risks such as government dependence on a few industries or resources, government-imposed taxes on foreign investment or limits on the removal of capital from a country, unstable government, and volatile markets. Multi-investment management styles may lead to higher transaction expenses compared to single investment management styles. Outcomes depend on the skill of the sub-advisors and advisor and the allocation of assets amongst them.

Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.

Diversification does not assure a profit nor protect against loss in a declining market.

Index Definitions | Industry Terms and Definitions

The PartnerSelect Funds are distributed by ALPS Distributors, Inc.