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Brandes Investment Trust (BVNSC)

Filed: 5 Jun 17, 12:00am

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-08614

 

 

Brandes Investment Trust

(Exact name of registrant as specified in charter)

 

 

11988 El Camino Real, Suite 600

San Diego, CA 92130

(Address of principal executive offices) (Zip code)

 

 

Michael Glazer

Morgan, Lewis & Bockius LLP

355 South Grand Ave., Suite 4400

Los Angeles, CA 90071-3106

(Name and address of agent for service)

 

 

800-331-2979

Registrant’s telephone number, including area code

Date of fiscal year end: September 30, 2017

Date of reporting period: March 31, 2017

 

 

 


Item 1. Reports to Stockholders.

 


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SEMI-ANNUAL REPORT INTERNATIONAL EQUITY FUND GLOBAL EQUITY FUND GLOBAL EQUITY INCOME FUND GLOBAL OPPORTUNITIES VALUE FUND EMERGING MARKETS VALUE FUND INTERNATIONAL SMALL CAP EQUITY FUND CORE PLUS FIXED INCOME FUND CREDIT FOCUS YIELD FUND For the six months ended March 31, 2017


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Table of Contents

 

 

Letter to Shareholders

   2 

Performance Graphs

   6 

Schedule of Investments

   56 

Statements of Assets and Liabilities

   90 

Statements of Operations

   92 

Statements of Changes in Net Assets

   94 

Financial Highlights

   98 

Notes to Financial Statements

   108 

Additional Information

   132 

Trustees and Officers

   136 

 

1


Brandes International Equity Fund

 

Dear Fellow Investor,

The net asset value of the Brandes International Equity Fund (Class I Shares) rose 7.38% in the six months ended March 31, 2017. For the same period, the MSCI EAFE Index increased 6.48%.

Major positive contributors included holdings in energy, industrials and financials. From a country standpoint, allocations to companies in emerging markets, especially Brazil and South Korea, as well as those in Switzerland and Japan, helped performance.

Top-performing holdings included Dutch insurer Aegon, South Korea-based Hana Financial Group and steelmaker POSCO, U.K.-based bank Barclays and Brazilian jet manufacturer Embraer.

Hana saw its share price appreciate as the market seemed to start anticipating a potential recovery in the bank’s net interest margins. Meanwhile, POSCO’s shares benefited from an improving steel market.

Other contributors included France-based pharmaceutical firm Sanofi, Italian oil & gas firm ENI and British security services provider G4S. In addition to its strong 2016 results, the market seemed to appreciate G4S’s growth in North America and Europe, which was more robust than expected, as well as the improvement in its operating margin and financial leverage.

Holdings in consumer discretionary and information technology detracted from relative returns. From a regional perspective, a lack of allocation to Germany hurt relative performance, along with positions in Sweden and China.

Primary return detractors included South Korean auto component manufacturer Hyundai Mobis, retailers Kingfisher (United Kingdom) and Carrefour (France), as well as French utility Engie.

Engie’s shares fell amid weak earnings guidance from the company due to low natural gas prices and nuclear outages in Belgium and France. Meanwhile, for Hyundai Mobis, the stock-price decline could be attributed to poor near-term results following a series of labor strikes over the summer, which led to lower utilization rates and higher fixed costs. There is also fear that the ensuing production loss may cause a shortage in certain models in the coming months.

In a relatively light period for Fund activity, the International Large-Cap Investment Committee purchased shares of U.K.-based pharmaceutical firm AstraZeneca, Italian bank Intesa Sanpaolo and Mexico-based real estate firm Fibra Uno.

A Fibra (Fideicomiso de Infraestructura y Bienes Raíces) is an investment vehicle in Mexico that has similarities to a REIT (real estate investment trust) in the United States.

 

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Brandes International Equity Fund

 

Fibra Uno (FUNO) is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of commercial real estate in Mexico, including industrial, retail and office properties. FUNO has selectively assembled a diversified portfolio of high-quality, well-located, income-producing commercial properties. The trust began trading on the Mexican stock exchange in 2011 and is the first — also currently the largest — publicly listed Fibra.

Over the past few years, FUNO’s shares have been under pressure, mainly due to the peso depreciation, which negatively affected the company’s real estate value and peso-denominated rental revenues. FUNO has more U.S. dollar-denominated debt than revenues; however, from a debt servicing perspective, it has what we consider solid revenue coverage of interest expense in U.S. dollars. Moreover, FUNO has predominantly long-term debt with a fixed interest rate. Hence, we believe FUNO should be relatively resilient against rising rates.

Most recently, the selloff in FUNO’s shares was magnified by the election of Donald Trump as U.S. President, creating what we considered a good entry point for investment. In our view, FUNO’s positive attributes include:

 

  Strong earnings growth prospects through a sizeable development pipeline

 

  A solid balance sheet and a seasoned management team

 

  An income stream which is “inflation protected” as rents are contractually tied to inflation

 

  Attractive dividend yield

During the period, we were able to purchase FUNO at a very compelling price, in our opinion, as the company traded not only below our conservative estimate of its net assets value, but also less than its original IPO (initial public offering) price in U.S. dollar terms. Additionally, we believe FUNO is now better diversified than it was in the past, while having limited direct exposure to major exporters to the United States and continuing to demonstrate strong capital allocation.

Other activity included the divestment of Ireland-based CRH, one of the world’s largest building materials companies.

We initially bought CRH following the downturn in construction materials that began during the financial crisis and continued on to the European sovereign debt crisis in 2011. Given its strong market share, improved balance sheet and solid cash generation, the business was well positioned to benefit from a rebound in its cyclically depressed end markets, in our view.

We also believed the company had significant opportunity to cut costs considering its acquisition history. We appreciated the fact that the company’s distribution business, where it channels building materials to contractors and direct to consumers, was more resilient to the cyclical downturn than were its building products due to its reliance on repair and maintenance demand as opposed to new infrastructure building.

 

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Brandes International Equity Fund

 

Throughout 2016, the market started to show appreciation for the company’s improved cost and competitive position, and anticipated a recovery in the construction market. Consequently, CRH’s share price reached our estimate of its intrinsic value and we divested our position.

Outlook

As of March 31, 2017, the Fund held its largest overweight positions in emerging markets and France. From an industry standpoint, key overweights were in oil, gas & consumable fuels, food & staples retailing, pharmaceuticals and diversified telecommunication services.

The Fund continued to have no allocations to companies based in Germany and Australia, while maintaining its underweights to the industrials, materials and consumer staples sectors.

As always, we base our allocation decisions on a fundamental, bottom-up investment approach focused on seeking the most attractive value in all corners of the globe. Our focus remains long term as we seek to take advantage of indiscriminate mispricing by pursuing potentially undervalued opportunities, while avoiding areas that may be overheated. We believe this price-matters approach is the best way we can pursue alpha for Fund shareholders.

Thank you for your business and continued trust.

Sincerely yours,

The Brandes International Large-Cap Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

 

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Brandes International Equity Fund

 

Diversification does not guarantee a profit or protect from loss in a declining market.

Alpha:  A measure of performance based on the excess return of an investment relative to the return of a benchmark index.

Interest Coverage Ratio:  Used to determine a company’s ability to pay interest on outstanding debt with available earnings.

Operating Margin:  Operating income divided by net sales; used to measure a company’s operating efficiency.

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

The declaration and payment of shareholder dividends are solely at the discretion of the issuer and are subject to change at any time.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

Index Guide

The MSCI EAFE (Europe, Australasia, Far East) Index with net dividends measures equity market performance of developed markets in Europe, Australasia, and the Far East.

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.

One cannot invest directly in an index.

The Brandes International Equity Fund is distributed by ALPS Distributors, LLC.

 

5


Brandes International Equity Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes International Equity Fund – Class I from March 31, 2007 to March 31, 2017 with the value of such an investment in the MSCI EAFE (Europe, Australasia and Far East) Index for the same period.

Value of $100,000 Investment vs MSCI EAFE (Europe, Australasia and Far East) Index (Unaudited)

 

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   Average Annual Total Return
Periods Ended March 31, 2017
 
   One
Year
  Five
Years
  Ten
Years
  Since
Inception(1)
 

Brandes International Equity Fund

     

Class A*

   12.17  6.15  0.61  7.82

Class A* (with maximum sales charge)

   5.73  4.91  0.02  7.51

Class C*

   11.36  5.35  -0.17  7.00

Class I

   12.38  6.34  0.80  8.05

Class R6*

   12.68  6.44  0.87  8.12

MSCI EAFE (Europe, Australasia, and Far East) Index

   11.67  5.83  1.05  4.48

 

(1) The inception date is January 2, 1997.

 

*Performance shown prior to January 31, 2011 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Performance shown prior to February 1, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses.

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or

 

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Brandes International Equity Fund

 

less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

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The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

7


Brandes Global Equity Fund

 

Dear Fellow Investor,

The net asset value of the Brandes Global Equity Fund (Class I Shares) rose 9.75% in the six months ended March 31, 2017. For the same period, the MSCI World Index increased 8.35%.

Allocations to a number of U.S.-based banks significantly boosted performance. Notable contributors included Bank of America, Citigroup, Wells Fargo, PNC Financial Services and Bank of New York Mellon.

After posting negative returns in the first half of 2016, these banks regained lost ground in the year’s second half as the market began to anticipate a generally better operating environment in the years ahead.

We believe despite their significant recent rally, our U.S. bank holdings continue to present attractive investment opportunities. As of March 31, they traded at low multiples of forward earnings and book value. Additionally, they have offered more attractive yields than areas of the market that investors have traditionally flocked to as yield plays, such as those in the consumer staples sector. Unlike many other yield plays, several U.S. banks have grown earnings in the last five years and have had a higher total shareholder yield (buybacks and dividends) with, in our opinion, a better opportunity to sustain and grow their payouts.

Additionally, the Fund’s emerging market holdings aided returns, including South Korean technology company Samsung Electronics and auto maker Hyundai Motor, as well as Brazil-based jet manufacturer Embraer and telecommunications firm TIM Participacoes. These companies enjoyed double-digit gains as emerging markets’ strong 2016 performance extended into the first quarter of 2017.

TIM Participacoes’ share price increased after the company announced solid financial results for the fourth quarter of 2016. The company’s revenue has improved, with growth mainly coming from contract subscribers and price increases. Moreover, its cost-cutting initiatives have been advancing at a good pace.

Other positive contributors included U.S.-based computer data storage company Western Digital and holding company Leucadia National Corp., as well as France-based pharmaceutical firm Sanofi, the Fund’s largest holding.

The Fund’s most significant return detractors were South Korea-based auto components manufacturer Hyundai Mobis, Sweden-based telecommunications equipment company Ericsson and China-based telecommunications firm China Mobile.

Ericsson declined on the back of weaker earnings guidance due to a lull in demand for wireless network equipment from carriers, its primary customers. However, the company has been working on cutting costs to improve margins. We believe despite the currently weak carrier spending environment, Ericsson should see its profitability pick up when spending starts to eventually recover from the 2016/2017 decline. Moreover, we hold the view that the company is well positioned to benefit from the industry consolidation that has occurred over the last several years.

 

8


Brandes Global Equity Fund

 

The investment team initiated positions in France-based advertising agency Publicis, South Korea-based KT&G (formerly known as Korea Tobacco & Ginseng) and U.S. drug distributor McKesson.

As the world’s third-largest global ad agency holding company, Publicis is the owner of many of the industry’s most valuable brands such as Saatchi & Saatchi, Leo Burnett, Razorfish, ZenithOptimedia and Starcom MediaVest. Publicis has historically been a well-run company with a sound balance sheet and industry-leading margins.

In our view, the business model of ad agencies has attractive economics given their variable cost structure, as well as exposure to long-term ad spending and global gross domestic product growth. While the industry as a whole appears to be valued somewhat fully by the market, Publicis has been the recent exception due to concerns over slowing organic growth, a handful of recent account losses and its acquisition of Sapient (its largest acquisition to date), which was seen as expensive.

In our view, excessive short-term pessimism centered on these recent missteps has created an attractive entry point in Publicis’ shares for long-term focused investors. Historically, Publicis management has displayed, in our opinion, an admirable track record of profitability, earnings growth, operational execution and successful acquisition integration. We do not view recent client losses and the potential overpayment for Sapient as evidence of permanent structural changes in the business, and we believe Publicis is well positioned to return to levels of growth in line with its peers. Given its strong free-cash-flow generation, we also expect the company will quickly de-lever its balance sheet.

The investment team decided to divest the Fund’s position in U.S.-based Corning, the world’s largest manufacturer of LCD glass, after its share price appreciated to our estimate of intrinsic value following the company’s strong 2016 performance.

We initially purchased Corning several years ago after its price declined on a variety of market concerns, including pricing pressure in the LCD TV glass market, concerns about currency fluctuation in the value of the yen as LCD glass is priced in yen, and overall growth prospects for Corning’s business.

Despite these concerns, we believed the shares offered an attractive discount to our estimate of its long-term intrinsic value for a number of reasons:

 

  The company’s strong technological know-how

 

  History of innovation

 

  Solid competitive position

 

  A healthy balance sheet

 

  Attractive capital return plan

Over the past several years, Corning has returned half of its free cash flow to shareholders, reflecting its commitment to increase shareholder value. Additionally, the company has benefited from growth in its Gorilla Glass business,

 

9


Brandes Global Equity Fund

 

which produces thin sheet glass used as a protective cover providing scratch resistance and durability. Finally, the LCD-TV glass market has moved from a cyclically depressed environment to a cyclically elevated one. As a result of these factors and after the company increased its capital return to shareholders, Corning’s stock price appreciated to our estimate of intrinsic value and we sold our position.

Outlook

As of March 31, the Fund’s valuation metrics remained more appealing than those of the benchmark, as measured by price-to-book, price-to-earnings and price-to-cash-flow ratios. It also offered a higher dividend yield than the MSCI World Index.

Allocations to emerging markets, the United Kingdom and France represented the Fund’s largest relative overweight positions (calculated as a percentage of benchmark weights). From an industry standpoint, key areas of exposure were in banks, pharmaceuticals, oil, gas & consumable fuels, capital markets and automobiles. The Fund maintained its largest underweight position in the United States.

Information technology, which in past years represented a large overweight for the Fund (largely in what we called “boring” or mature technology companies mostly based in the United States), is currently the largest underweight to the index. Several companies from this group have had strong share-price appreciation, moving closer to or exceeding our intrinsic value estimates. Consequently, the investment committee decided to pare or sell several of our tech holdings over the past year.

The investment team’s allocation decisions are based on a fundamental, bottom-up investment approach focused on seeking the most attractive value in all corners of the globe.

While markets, economies and investor sentiment constantly change, our long-term focus is the same. We seek to take advantage of indiscriminate mispricing to uncover potentially undervalued opportunities, while avoiding areas that may be overheated. We are confident that our unwavering commitment to value investing will provide for attractive long-term returns for the Fund.

Sincerely yours,

The Brandes Global Large-Cap Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market

 

10


Brandes Global Equity Fund

 

and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar.

Diversification does not guarantee a profit or protect from loss in a declining market.

Book Value:  Assets minus liabilities. Also known as shareholders’ equity.

Free Cash Flow:  Total cash flow from operations less capital expenditures.

Forward Earnings:  Sell-side analysts’ consensus earnings estimates for the next fiscal year

Intrinsic Value:  The actual value of a company or an asset based on an underlying perception of its true value.

Price/Book:  Price per share divided by book value per share.

Price/Cash Flow:  Price per share divided by cash flow per share.

Price/Earnings:  Price per share divided by earnings per share.

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

Index Guide

The MSCI World Index with net dividends measures equity market performance of developed markets.

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 Brandes Global Equity Fund is distributed by ALPS Distributors, LLC.

 

11


Brandes Global Equity Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Global Equity Fund – Class I from its inception (October 6, 2008) to March 31, 2017 with the value of such an investment in the MSCI World Index for the same period.

Value of $100,000 Investment vs MSCI World Index (Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2017
 
   One
Year
  Three
Years
  Five
Years
  Since
Inception(1)
 

Brandes Global Equity Fund

     

Class A*

   15.35  2.54  7.96  7.11

Class A* (with maximum sales charge)

   8.70  0.53  6.69  6.37

Class C*

   14.46  1.78  7.18  6.29

Class I

   15.58  2.79  8.24  7.34

MSCI World Index

   14.77  5.52  9.37  8.92

 

(1) The inception date is October 6, 2008.

 

*Performance shown prior to January 31, 2011 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses. Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses.

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

 

 

12


Brandes Global Equity Fund

 

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

LOGO

The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

13


Brandes Global Equity Income Fund

 

Dear Fellow Investor,

The net asset value of the Brandes Global Equity Income Fund (Class I Shares) rose 8.46% in the six months ended March 31, 2017. For the same period, the MSCI World Index increased 8.35%.

The Fund’s most significant positive contributors included a diverse set of holdings in the United States, France, Switzerland and emerging markets.

U.S.-based banks PNC Financial Services, Wells Fargo and BB&T advanced strongly in the fourth quarter of 2016 following their negative performance in last year’s first half. The market seemed to begin anticipating a generally better operating environment for banks in the years ahead.

We believe despite their share-price appreciation, the Fund’s U.S. bank holdings continue to present attractive investment opportunities. As of March 31, they traded at low multiples of forward earnings and book value. Additionally, U.S. banks have offered more attractive yields than other areas of the market that investors have traditionally flocked to for yield, such as consumer staples. Unlike many other yield plays, several U.S. banks have grown earnings in the last five years and have had a higher total shareholder yield (buybacks and dividends) with, in our opinion, a better opportunity to sustain and grow their payouts.

U.S.-based computer data storage firm Western Digital also boosted Fund performance. The market seemed to have become more optimistic on the prospects for Western Digital’s NAND flash business (the storage business it acquired in its SanDisk acquisition in 2015) and appreciated the company’s improved results for its hard drive storage business.

Other notable contributors included France-based pharmaceutical firm Sanofi and luxury goods firm LVMH, Switzerland-based bank UBS and luxury goods firm Richemont, Brazil-based electric utility Companhia Paranaense de Energia (Copel), and South-Korea based technology company Samsung Electronics.

The Fund’s most significant performance detractors were U.K.-based retailer Kingfisher and pharmaceutical firm GlaxoSmithKline, communications equipment firms Ericsson (Sweden) and Nokia (Finland), Japanese pharmaceutical firm Daiichi Sankyo, as well as Brazilian telecommunications company Telefonica Brasil.

Ericsson and Nokia declined on the back of weaker earnings guidance due to a lull in demand for wireless network equipment from carriers, their primary customers. However, both companies have been working on cutting costs to improve margins. We believe despite the currently weak carrier spending environment, Ericsson and Nokia should see profitability pick up when spending starts to eventually recover from its current decline. Moreover, we hold the view that these companies are well positioned to benefit from the consolidation in the industry that has occurred over the last several years.

 

14


Brandes Global Equity Income Fund

 

During the period, the investment team initiated positions in companies exhibiting appealing valuations relative to our intrinsic value estimates and those with attractive dividend yield.

New additions included South Korea-based KT&G (formerly known as Korea Tobacco & Ginseng, with a dividend yield of 3.4% as of March 31), Mexico-based real estate firm Fibra Uno (div. yield: 6.2%) and France-based advertising agency Publicis (div. yield: 2.8%).

A Fibra (Fideicomiso de Infraestructura y Bienes Raíces) is an investment vehicle in Mexico that has similarities to a REIT (real estate investment trust) in the United States.

Fibra Uno (FUNO) is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of commercial real estate in Mexico, including industrial, retail and office properties. FUNO has selectively assembled a diversified portfolio of high-quality, well-located, income-producing commercial properties. The trust began trading on the Mexican stock exchange in 2011 and is the first — also currently the largest — publicly listed Fibra.

Over the past few years, FUNO’s shares have been under pressure, mainly due to the peso depreciation, which affected the company’s real estate value and peso-denominated rental revenues. FUNO has more U.S. dollar-denominated debt than revenues; however, from a debt servicing perspective, it has what we consider solid revenue coverage of interest expense in U.S. dollars.

We were able to purchase FUNO at a very compelling price, in our opinion, as the company traded not only below our conservative estimate of its net asset value, but also for less than its initial public offering price in U.S. dollar terms. The company also has a very attractive dividend yield that we believe is sustainable given the support of the income stream derived from the properties in which it owns. Moreover, while the market is focused on U.S. policy concerns, we appreciate that the company’s property portfolio has limited direct exposure to major exporters to the United States, and that management continues to demonstrate strong capital allocation with a conservative balance sheet, which should enable the company to be opportunistic if market conditions weaken further in Mexico.

The Fund divested its position in Richemont as the company’s share price rose toward our intrinsic value estimate, with the price appreciation also lowering the yield to 2.2%.

We also sold U.S. semiconductor firm Xilinx (dividend yield of 2.2% as of 12/31/2016).

We initially purchased Xilinx, the world’s largest field-programmable gate array (FPGA) company, nearly two years ago after its share price declined on market concerns of a near-term semiconductor downturn and weakened spending in one of Xilinx’s key end markets. Despite these concerns, we believed the company offered a number of positive attributes.

 

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Brandes Global Equity Income Fund

 

In the last two years, Xilinx generated strong returns on capital, while its main competitor was acquired by Intel at a significant premium to Xilinx’s valuation. As a result, Xilinx’s stock price appreciated as speculation increased about a potential takeover given: 1) Xilinx’s strong market share in products (FPGAs) that will be increasingly used in various computer acceleration applications, namely in the data center, artificial intelligence and automotive end markets; and 2) a highly active mergers and acquisitions environment in the semiconductor market. As a result, the company’s share price appreciated above our estimate of intrinsic value and we divested our position.

Outlook

As of March 31, the Brandes Global Equity Income Fund exhibited more appealing valuations than the benchmark, as measured by price-to-book, price-to-earnings and price-to-cash flow ratios. It also offered a higher dividend yield of 3.8% versus the MSCI World Index’s 2.4%.

The Fund’s largest overweight positions were in emerging markets, France and the United Kingdom, while its largest underweight positions were in the United States and Japan. From an industry standpoint, the Fund’s most significant weightings were in pharmaceuticals, U.K. food & staples retail, and oil, gas & consumable fuels.

The investment team’s allocation decisions are based on a fundamental, bottom-up investment approach centered on seeking companies around the world that are 1) potentially undervalued, and 2) offering attractive, higher-than-benchmark dividend yields. In our view, focusing on valuations and the sustainability of a company’s dividend enables us to select what we consider the best combination of value opportunities with attractive yield characteristics that are worthy of inclusion in the Fund.

Thank you for your business and continued trust.

Sincerely yours,

The Brandes Global Large-Cap Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed

 

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Brandes Global Equity Income Fund

 

currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

Diversification does not assure a profit or protect against loss in a declining market.

Book Value:  Assets minus liabilities. Also known as shareholders’ equity.

Free Cash  Flow: Total cash flow from operations less capital expenditures.

Forward Earnings:  Sell-side analysts’ consensus earnings estimates for the next fiscal year

Intrinsic Value:  The actual value of a company or an asset based on an underlying perception of its true value.

Price/Book:  Price per share divided by book value per share.

Price/Cash Flow:  Price per share divided by cash flow per share.

Price/Earnings:  Price per share divided by earnings per share.

Return on Capital: Net income minus dividends divided by total capital; used to assess a company’s efficiency at allocating the capital under its control to profitable investments.

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

SEC 30-Day Yield (Class I Shares): 2.51% (subsidized) -12.33% (unsubsidized) This calculation is based on a 30-day period ending on the last day of the month shown. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund expenses. A subsidized yield takes into consideration the expenses paid by the advisor.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

 

17


Brandes Global Equity Income Fund

 

Index Guide

The MSCI World Index with net dividends measures equity market performance of developed markets.

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 Brandes Global Equity Income Fund is distributed by ALPS Distributors, LLC.

 

 

18


Brandes Global Equity Income Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Global Equity Income Fund – Class I from its inception (December 31, 2014) to March 31, 2017 with the value of such an investment in the MSCI World Index for the same period.

Value of $100,000 Investment vs MSCI World Index (Unaudited)

 

LOGO

 

   Average Annual
Total Return Periods
Ended March 31, 2017
 
   One
Year
  Since
Inception(1)
 

Brandes Global Equity Income Fund

   

Class A

   18.82  10.95

Class A (with maximum sales charge)

   11.99  8.07

Class C

   15.43  9.00

Class I

   16.53  10.01

MSCI World Index

   14.77  5.74

 

(1) The inception date is December 31, 2014.

 

 

19


Brandes Global Equity Income Fund

 

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of March 31, 2017 (Unaudited)

 

LOGO

The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

20


Brandes Global Opportunities Value Fund

 

Dear Fellow Investor,

The net asset value of the Brandes Global Opportunities Value Fund (Class I Shares) rose 10.12% in the six months ended March 31, 2017. For the same period, the MSCI All Country World Index increased 8.18%.

Allocations to companies in health care, consumer staples and industrials significantly helped relative performance, as did positions in the United States and Brazil.

At the company level, a number of financial holdings boosted returns, led by U.S.-based Bank of America, Citigroup and Leucadia National Corporation. Other major positive contributors included Brazilian regional jet manufacturer Embraer, as well as U.S.-based engine manufacturer Briggs & Stratton and computer data storage company Western Digital.

Embraer rebounded in the period after performing poorly in the first nine months of 2016. The company’s core regional and business jet markets have been at cyclical lows, but we believe they are mean-reverting over the long term. Recently, the market seemed to have become more optimistic about Embraer’s production schedule and budget for its new aircraft. Amid the resulting share-price appreciation, we continue to see value in Embraer as it is well managed, holds competitive positions across its end markets, and has a strong balance sheet, even after years of aggressive product development.

Holdings in consumer discretionary generated positive absolute returns overall but detracted from relative performance. Additionally, the Fund’s real estate positions weighed on returns.

Notable detractors from a country standpoint included allocations to companies in the United Kingdom and Mexico. At the company level, U.K.-based real estate firm Countrywide, South Korean auto component manufacturer Hyundai Mobis and French utility Engie hurt returns.

Countrywide continued to struggle with uncertainties surrounding Brexit (the United Kingdom’s decision to leave the European Union), which have led to fewer buyers and sellers in the housing market. Despite the continued slowdown in housing sales, we believe Countrywide is well positioned to adapt its business mix, as its rental business provides somewhat of a hedge in this challenging environment.

In a relatively light period for activity, the All-Cap Investment Committee initiated positions in China Mobile, U.S.-based health care firms McKesson Corporation and Express Scripts, South Korean tobacco company KT&G and Mexico-based Fibra Uno.

A Fibra (Fideicomiso de Infraestructura y Bienes Raíces) is an investment vehicle in Mexico that has similarities to a REIT (real estate investment trust) in the United States.

 

21


Brandes Global Opportunities Value Fund

 

Fibra Uno (FUNO) is a Mexican trust formed primarily to acquire, own, develop and operate a broad range of commercial real estate in Mexico, including industrial, retail and office properties. FUNO has selectively assembled a diversified portfolio of high-quality, well-located, income-producing commercial properties. The trust began trading on the Mexican stock exchange in 2011 and is the first — also currently the largest — publicly listed Fibra.

Over the past few years, FUNO’s shares have been under pressure, mainly due to the peso depreciation, which affected the company’s real estate value and peso-denominated rental revenues. FUNO has more U.S. dollar-denominated debt than revenues; however, from a debt servicing perspective, it has what we consider solid revenue coverage of interest expense in U.S. dollars.

We were able to purchase FUNO at a very compelling price, in our opinion, as the company traded not only below our conservative estimate of its net asset value, but also for less than its initial public offering price in U.S. dollar terms. The company also has a very attractive dividend yield that we believe is sustainable given the support of the income stream derived from the properties in which it owns. Moreover, while the market is focused on U.S. policy concerns, we appreciate that the company’s property portfolio has limited direct exposure to major exporters to the United States, and that management continues to demonstrate strong capital allocation with a conservative balance sheet, which should enable the company to be opportunistic if market conditions weaken further in Mexico.

The only position sold from the Fund was TIM Participacoes (TSU), the fourth-largest telecommunication firm by sales in Brazil and the second largest in terms of wireless subscribers.

Over the last year, TSU’s operations have improved, enabling the company to grow its revenue. Additionally, positive industry developments and rumors of a possible acquisition renewed investor interest in TSU. As the company appeared fully valued, we exited our position.

Outlook

We have been finding many value opportunities in emerging markets, with over a third of the Fund allocated to companies in this region as of March 31, 2017. From a country perspective, Brazil and South Korea continued to represent major overweights, while the United States remained a significant underweight position. From a sector standpoint, the Fund held its key overweights in real estate and telecommunication services.

At Brandes, our investment process focuses on a bottom-up analysis. As such, the Fund’s country and industry weightings are the result of our research-driven stock selection and reflect our convictions.

Our focus remains long term as we seek to take advantage of indiscriminate mispricing by pursuing potentially undervalued opportunities while avoiding areas

 

22


Brandes Global Opportunities Value Fund

 

that may be overheated. We believe this price-matters approach is the best way we can pursue attractive long-term returns for Fund shareholders.

As always, thank you for your continued trust.

Sincerely yours,

The Brandes All-Cap Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

Diversification does not guarantee a profit or protect from loss in a declining market.

Interest Coverage Ratio:  Used to determine a company’s ability to pay interest on outstanding debt with available earnings.

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

The declaration and payment of shareholder dividends are solely at the discretion of the issuer and are subject to change at any time.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

 

 

23


Brandes Global Opportunities Value Fund

 

Index Guide

The MSCI All Country World Index with net dividends measures equity market performance of developed and emerging markets.

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.

One cannot invest directly in an index.

The Brandes Global Opportunities Value Fund is distributed by ALPS Distributors, LLC.

 

24


Brandes Global Opportunities Value Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Global Opportunities Value Fund – Class I from its inception (December 31, 2014) to March 31, 2017 with the value of such an investment in the MSCI All Country World Index for the same period.

Value of $100,000 Investment vs MSCI All Country World Index (Unaudited)

 

LOGO

 

   Average Annual
Total Return Periods
Ended March 31, 2017
 
   One
Year
  Since
Inception(1)
 

Brandes Global Opportunities Value Fund

   

Class A

   16.63  6.94

Class A (with maximum sales charge)

   9.97  4.16

Class C

   15.85  6.16

Class I

   16.99  7.03

MSCI All Country World Index

   15.04  5.42

 

(1) The inception date is December 31, 2014.

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

 

25


Brandes Global Opportunities Value Fund

 

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of March 31, 2017 (Unaudited)

 

LOGO

The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

26


Brandes Emerging Markets Value Fund

 

Dear Fellow Investor,

The net asset value of the Brandes Emerging Markets Value Fund (Class I Shares) rose 10.11% in the six months ended March 31, 2017. For the same period, the MSCI Emerging Markets Index increased 6.80%.

Noteworthy positive contributors included holdings in industrials, telecommunication services and consumer staples. From a country perspective, the Fund benefited from positions in Brazil, Russia and Hong Kong.

On an individual security basis, Russian wireless telecommunication services provider Mobile TeleSystems, Brazilian jet manufacturer Embraer and Hong Kong-based specialty retailer Chow Tai Fook Jewellery helped performance significantly. Additionally, the Fund’s holding in McDonald’s franchisee Arcos Dorados aided returns.

Domiciled in Argentina, Arcos’ largest market is Brazil. In the first quarter of 2017, the company announced a new restaurant opening and reinvestment plan for the period 2017-2019, which was well received by the market. Under its agreement with McDonalds, Arcos Dorados expects to open at least 180 new restaurants and reinvest $292 million in its existing restaurants. Furthermore, as its balance sheet leverage has improved over the past year, Arcos Dorados decided not to pursue further asset monetization deals.

The Fund’s positions in real estate and its significant underweight to information technology (IT) hurt performance. Regionally, holdings in Turkey and South Korea weighed on relative returns, along with a lack of allocation to Taiwan.

Meanwhile, at the company level, primary detractors included Turkish real estate firm Emlak Konut, as well as South Korean auto companies Hyundai Mobis and KIA Motors.

New buys during the period included South Korean tobacco company KT&G and Indian IT services providers Infosys and Tech Mahindra (TechM).

Originally created as a joint venture between Indian Mahindra & Mahindra and British BT Group, TechM provides IT services, networking technology solutions and business process outsourcing primarily to the telecommunications sector.

TechM has grown its business through a number of acquisitions over the years. Lately, the company has been experiencing integration issues, resulting in depressed operating margins. It has also been slightly behind its competitors, such as Infosys and TCS, in the automation space, which has further contributed to margin compression. Nonetheless, in addition to its strong presence in the telecommunications sector, TechM has been able to successfully penetrate other industry markets because of its strong network management capabilities. These capabilities have allowed TechM to become a preferred partner for many cutting-edge IoT (internet of things) platform providers such as GE, Bosch and IBM.

 

27


Brandes Emerging Markets Value Fund

 

TechM’s investment thesis hinges upon its ability to enhance margins and operational efficiency. After its failed integration of U.S.-based Lightbridge Communications (LCC), which the company acquired in 2014, the market questioned TechM’s competence to increase margins and execute its growth strategy effectively. However, we have observed signs of a turnaround. While a disruption by cloud computing may present a headwind for TechM, we believe the company should be among the least negatively affected Indian IT services players because it is focused primarily on network management (more a facilitator of the cloud technology than a victim of it).

Finally, TechM, along with other Indian IT services providers, has recently seen its stock price fall on the specter of proposed protectionist policies in the United States. This provided us with a good opportunity to invest in the company, as we believe TechM and other offshore providers will be able to adjust their pricing and service model to minimize the impact of such policies on their earnings. Considering its strengths and the challenges it currently faces, we believe TechM offers an attractive risk/reward tradeoff over the long term.

Other activity included the divestments of Panamanian airline Copa Holdings and Turkish airport operator TAV Havalimanlari Holding.

Outlook

As always, we anchor our allocation decisions on a fundamental, bottom-up investment approach seeking the most attractive value in emerging markets.

Brazil continued to represent the Fund’s largest country weighting at quarter end, even after we sold or trimmed a number of our positions there. While our composition of Brazilian holdings remains well diversified, in our opinion, the companies we now own are mostly domestic oriented, with the exception of export-focused Embraer.

Meanwhile, we continued to struggle to find attractive value potential in China and the country remained our largest underweight position. Moreover, even with the additions of Tech Mahindra and Infosys in the period, our allocations to the information technology sector and to India were still well below those of the index as of March 31, 2017.

At Brandes, our focus remains long term as we seek to take advantage of indiscriminate mispricing by pursuing potentially undervalued opportunities, while avoiding areas that may be overheated. We believe this price-matters approach is the best way we can pursue alpha for client portfolios.

Sincerely yours,

The Brandes Emerging Markets Investment Committee

Brandes Investment Trust

 

28


Brandes Emerging Markets Value Fund

 

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

Diversification does not guarantee a profit or protect from loss in a declining market.

Alpha:  A measure of performance based on the excess return of an investment relative to the return of a benchmark index.

‘Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

Index Guide

The MSCI Emerging Markets Index with net dividends measures equity market performance of emerging markets. 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.

One cannot invest directly in an index.

 

29


Brandes Emerging Markets Value Fund

 

The Brandes Emerging Markets Value Fund is distributed by ALPS Distributors, LLC.

 

30


Brandes Emerging Markets Value Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Emerging Markets Value Fund – Class I from March 31, 2007 to March 31, 2017 with the value of such an investment in the MSCI Emerging Markets Index for the same period.

Value of $100,000 Investment vs MSCI Emerging Markets Index (Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2017**
 
   One
Year
  Five
Years
  Ten
Years
  Since
Inception(1)
 

Brandes Emerging Markets Value Fund

     

Class A

   21.86  1.28  4.27  7.53

Class A (with maximum sales charge)

   14.86  0.09  3.66  7.22

Class C*

   20.97  0.55  3.49  6.73

Class I

   22.10  1.55  4.52  7.80

Class R6*

   22.28  1.62  4.58  7.86

MSCI Emerging Markets Index

   17.22  0.81  2.72  5.99

 

(1) The inception date is August 20, 1996.

 

*Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Performance shown prior to July 11, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses.

 

 

31


Brandes Emerging Markets Value Fund

 

**Prior to January 31, 2011, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes Emerging Markets Value Fund. The performance information shown for the Class I shares for periods before January 31, 2011 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to January 31, 2011 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance.

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

LOGO

The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

32


Brandes International Small Cap Equity Fund

 

Dear Fellow Investor,

The net asset value of the Brandes International Small Cap Equity Fund (Class I Shares) advanced 7.61% in the six months ended March 31, 2017. For the same period, the S&P Developed Ex-U.S. SmallCap Index rose 4.27%.

Our stock selection in industrials, health care and information technology helped performance significantly. From a country standpoint, positions in Japan, Brazil and South Korea represented major positive contributors.

Top-performing holdings included Japanese power tool manufacturer Hitachi Koki and Brazilian regional jet maker Embraer, as well as medical equipment companies Draegerwerk (Germany) and Syneron Medical (Israel).

Over the last year, we took advantage of the market’s focus on short-term concerns to continue to build our position in Embraer at an attractive price, in our opinion. The company’s core regional and business jet markets have been at cyclical lows, but we believe they are mean-reverting over the long term. Recently, the market seemed to have become more optimistic about Embraer’s production schedule and budget for its new aircraft. Amid the resulting share-price appreciation, we continue to see value in Embraer as the company is well managed, holds competitive positions across its end markets, and has a strong balance sheet, even after years of aggressive product development.

The Fund’s underweight position to financials hurt relative returns, as did positions in the United Kingdom, Ireland and Italy. Meanwhile, primary detractors at the company level included U.K.-based real estate firm Countrywide and food product company Premier Foods, and Hong Kong-based satellite operator APT Satellite Holdings.

Countrywide continued to struggle with market uncertainties surrounding Brexit (the United Kingdom’s decision to leave the European Union), which have led to fewer buyers and sellers in the housing market. Despite the continued slowdown in housing sales, we believe Countrywide is well positioned to adapt its business mix, given its rental business provides a hedge in this challenging environment, in our opinion.

New buys in the period included Mexico-based real estate investment trust Fibra Uno and Canadian uranium producer Cameco. Additionally, the Small-Cap Investment Committee initiated several positions in Japan, namely Sankyo, Oita Bank, Toyo Susan Kaisha and Wacoal Holdings.

Meanwhile, divested holdings included Italian construction material companies Buzzi Unicem and Italcementi. Additionally, the investment committee exited a number of positions in Japan, namely Hibiya Engineering, Sega Sammy Holdings, Toshiba Machine, Hitachi Koki, Wakita & Co and Hosiden Corporation.

 

33


Brandes International Small Cap Equity Fund

 

Hosiden is an electronic components and devices manufacturer whose main business segments include:

 

  Building components for amusement applications, a vast majority of which is related to Nintendo’s hardware platforms

 

  Mobile telecom, mainly switch components

 

  Auto-related components

In recent years, Hosiden saw its revenue from Nintendo deteriorate as the video game console industry faced declining sales due to increased competition from mobile gaming platforms. The company was also negatively affected by heightened competition in the mobile telecom component space and a slowing growth in the smartphone market.

Despite the challenging environment in its building-component and mobile-telecom segments, we saw an appealing value proposition in Hosiden’s auto-related segment, specifically in its hands-free microphone business. Hosiden sells voice-recognition modules directly to auto parts OEMs (original equipment manufacturers), optimized for the specific car platform. Hosiden’s auto-related segment represents not only its highest-margin business, but also an area with increasing growth as voice-recognition technology has become increasingly popular in new auto designs.

Additionally, Hosiden had a strong balance sheet, with its net cash position accounting for a large portion of our estimate of the company’s intrinsic value. We were also very attracted to the purchase price, as the stock represented what we call a net-net (i.e., the company traded for less than its current assets minus all liabilities).

Over the last year, Hosiden continued to allocate more resources toward its auto-related business and has made it a primary focus for the company, a move which seems to have been appreciated by the market. Moreover, as one of its component suppliers, Hosiden has benefited from the positive reception of the latest Nintendo Switch console release. We sold our position as the shares reached our intrinsic value estimate.

Outlook

As of March 31, 2017, holdings in Japan and the United Kingdom remained the Fund’s largest country weightings. We also continued to see tremendous value opportunities in emerging markets, which accounted for over 22% of the Fund.

Meanwhile, we remained underweight in Australia, Switzerland and France.

From a sector standpoint, the Fund held its key overweights in consumer staples and utilities, and its key underweights in industrials and materials.

As always, we anchor our allocation decisions on a fundamental, bottom-up investment approach focused on seeking the most attractive value in all corners of the globe.

 

34


Brandes International Small Cap Equity Fund

 

At Brandes, our focus remains long term as we seek to take advantage of indiscriminate mispricing by pursuing potentially undervalued opportunities, while avoiding areas that may be overheated. We believe this price-matters approach is the best way we can pursue alpha for client portfolios.

Sincerely yours,

The Brandes Small-Cap Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

Diversification does not guarantee a profit or protect from loss in a declining market.

Alpha:  A measure of performance based on the excess return of an investment relative to the return of a benchmark index.

Net Cash:  Total cash minus total debt.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not considered a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

 

35


Brandes International Small Cap Equity Fund

 

Index Guide

The S&P Developed Ex-U.S. SmallCap Index with net dividends measures the equity performance of small-capitalization companies from developed markets excluding the United States. Data prior to 2001 is gross dividend and linked to the net dividend returns.

One cannot invest directly in an index.

The Brandes International Small Cap Equity Fund is distributed by ALPS Distributors, LLC.

 

36


Brandes International Small Cap Equity Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes International Small Cap Fund – Class I from March 31, 2007 to March 31, 2017 with the value of such an investment in the S&P Developed Ex-U.S. SmallCap Index for the same period.

Value of $100,000 Investment vs S&P Developed

Ex-U.S. SmallCap Index (Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2017**
 
   One
Year
  Five
Years
  Ten
Years
  Since
Inception(1)
 

Brandes International Small Cap Fund

     

Class A

   10.34  10.76  6.27  10.06

Class A (with maximum sales charge)

   3.99  9.45  5.64  9.74

Class C*

   9.50  9.97  5.48  9.24

Class I

   10.54  11.02  6.51  10.32

Class R6*

   10.70  11.09  6.58  10.38

S&P Developed Ex-U.S. Small Cap Index

   10.80  8.08  2.72  6.62

 

(1) The inception date is August 19, 1996.

 

*Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Performance shown prior to June 27, 2016 for Class R6 shares reflects the performance of Class I shares adjusted to reflect Class R6 expenses.

 

**Prior to February 1, 2012, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes International Small Cap Fund. The performance information shown for the Class I shares for periods before February 1, 2012 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to February 1, 2012 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance.

 

37


Brandes International Small Cap Equity Fund

 

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Sector Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

LOGO

The sector classifications represented in the graph above and industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standard (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC.

 

38


Brandes Core Plus Fixed Income Fund

 

Dear Fellow Investor,

The Brandes Core Plus Fixed Income Fund (Class I Shares) declined 1.17% during the six months ended March 31, 2017, while its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, declined 2.18%.

The most notable positive contributors were corporate holdings in banking, energy, utilities and commodity resources. The Fund also benefited from holdings in private student loan asset backed securities (ABS) and an underweight to agency mortgage backed securities (MBS).

Within the banking industry, the Fund received strong contributions from junior subordinated securities from U.S. Bank, JPMorgan and Wells Fargo. The U.S. Bank holding is a floating rate note while the JPMorgan and Wells Fargo holdings are currently fixed-rate securities, but will convert to floating rate notes in a year if they are not called. Bank credit profiles continue to improve, especially with short rates trending higher, and these securities also benefit from the possibility that they can convert to floating rate instruments.

Metals & mining companies Cloud Peak Energy and Royal Gold helped performance, as these companies benefited from higher commodity prices.

Cloud Peak is a coal miner operating in the Powder River Basin (Western United States). The company operates some of the industry’s lowest-cost mines in the country. During the fourth quarter of 2016 the company took steps to ease refinancing concerns by issuing a tender offer for its nearest term maturity (December 2019) and issuing second-lien notes maturing in 2021. The result of the tender was that Cloud Peak was able to reduce its debt maturing in 2019 from $200 million to $56 million. The company also benefited, post-U.S. presidential election, from the perception that the incoming administration will take a more favorable regulatory approach toward the coal industry.

In the first quarter of 2017, the Fund’s holdings in private student loan floating rate note ABS added to returns. We own securities backed by pools of loans issued from 2004 to 2007. We see improving credit trends with delinquencies declining, recovery rates increasing, and the credit enhancement feature of the bonds improving as the students in our pools are largely now in the workforce and thus better equipped to meet payment terms. Additionally, one feature common to private student loans is that most require a co-borrower. Therefore, in the event of bankruptcy the bond holder has recourse not only to the student, but typically the student’s parent or guardian as well. Furthermore, student loan debt is not dischargeable during bankruptcy, making the probability for an ultimate recovery high but the timing uncertain. These are floating rate notes that have begun to see their coupon rates reset higher as the Federal Reserve has begun to normalize interest rates.

 

39


Brandes Core Plus Fixed Income Fund

 

The Fund’s underweight position in U.S. agency MBS aided relative performance. The agency MBS market underperformed other taxable fixed-income sectors during the six-month period. MBS prices are typically sensitive to interest-rate volatility, and the sharp rise in interest rates during the fourth quarter, strong demand for corporate bonds and the anticipation that the Fed will begin to reduce MBS held on its balance sheet at some point this year caused agency MBS to underperform.

The Fund added Frontier Communications (6.25% coupon rate, maturing September 2021 and rated B1/B+). Frontier is a telecommunications company offering services in mostly rural areas and is the dominant provider in areas that it serves. The company is facing industry headwinds as landline operations appear to be experiencing a secular decline. We believe Frontier’s primarily rural markets should be more insulated from secular changes initially, making this issue (with four years until maturity) attractive.

We also took advantage of the weakness in the energy sector in the first quarter of 2017 to increase our weighting in Range Resources.

After the U.S. presidential election, the Fund increased its weighting in a number of financials, including Bank of America, Goldman Sachs and Wells Fargo, as the incoming administration has suggested that it will examine and potentially roll back some of the onerous regulations that have been placed on the financial industry since the Global Financial Crisis. The Fund also purchased a few industrial credits, namely AT&T, Tenet Healthcare and Transocean. The common theme with both the increased weighting in financials and industrial purchases is our continued preference for shorter maturities, with all of the bonds above scheduled to mature between 2017 and 2022.

Other activity included the sale of securities of Laboratory Corp. and Genworth Financial, which reached our estimates of intrinsic value.

Agency MBS Value

Over the last several years, the Fund’s largest underweight position has been agency MBS. As a byproduct of this underweight, we have had a larger allocation to U.S. Treasury securities than at any time in the Fund’s history.

The agency MBS market, in our view, has been supported by massive, and unprecedented, purchases by the Fed. In late 2008, the Fed began buying agency MBS to hold on its balance sheet in an effort to help alleviate the fallout from the financial crisis and stimulate lending in the U.S. housing market. Prior to that, the Fed did not hold any agency MBS on its balance sheet. Today, however, the Fed owns $1.7 trillion in agency MBS. In our opinion, the Fed’s increased involvement in the MBS market over the last several years has contributed to a considerable supply/demand imbalance, which in turn has made it difficult for us to find value in the sector.

 

40


Brandes Core Plus Fixed Income Fund

 

To illustrate how tight yield spreads have been, the average yield spread over U.S. Treasuries on the Bloomberg Barclays MBS Index over the past three years has been 0.23% (23 basis points). In comparison, for the 10-year period ended 12/31/2007, the average yield spread was 0.60% (60 basis points).

One mechanism to evaluate the relative values of agency MBS value and U.S. Treasury securities is the concept of breakeven spread analysis. The calculation is relatively straightforward. If one takes the yield spread divided by the duration, the result is how much the yield spread can widen before the returns are equivalent between similar maturity agency MBS and U.S. Treasuries. The current yield spread on the Bloomberg Barclays MBS Index is 0.27% and the duration is 4.95 years. Therefore, the current breakeven spread is 0.05%. If MBS yield spreads widen by more than 5 basis points, agency MBS will underperform similar maturity U.S. Treasury securities.

With yield spreads on agency MBS hovering near multi-decade lows, there is not much of a yield cushion in the event yield spreads widen. Additionally, the Fed is expected to eventually begin to unwind its massive agency MBS holdings. In their March meeting, Fed officials suggested that the move may come as early as this year. Given that we are almost 10 years into the Fed’s explicit support for the agency MBS market, we believe that the bank’s gradual exit may not be as smooth as most market participants hope. Consider what the market experienced in 2010 when the Fed made an initial attempt to slow its purchase activity. Yield spreads significantly widened, leading the Fed to launch another round of outright purchases. Even with an expected slowdown in mortgage origination due to higher interest rates, there is an enormous MBS supply that the market will need to absorb once the Fed slows and eventually ceases its purchase activity.

Agency MBS yield spreads have drifted wider over the last few months causing underperformance versus U.S. Treasury securities. Accordingly, our underweight to the agency MBS sector and overweight to U.S. Treasuries have benefited the Fund. We will continue to monitor developments and reassess our allocation when we believe there is value in owning additional agency MBS.

Outlook

As of March 31, the U.S. fixed-income market continued to operate in a low-volatility environment. This has caused a great deal of complacency among investors.

What could possibly go wrong with equities hitting all-time highs and yield spreads hovering near historic lows? In our view, this environment has driven investors to stretch their risk boundaries in an effort to pick up additional yield.

Against this backdrop, the Fed appeared to start the process of withdrawing its unprecedented monetary policy accommodation. Does this mean we could begin to see volatility rise toward its historical mean and valuations become guided by fundamentals? We certainly hope so. Until that happens, we believe it is best to remain patient, especially if you’re a long-term investor.

 

41


Brandes Core Plus Fixed Income Fund

 

At the close of the six-month period, the Brandes Core Plus Fixed Income Fund remained defensively positioned across a number of metrics. We favor short-maturity corporate bonds and those exhibiting strong, tangible asset coverage based on our analysis. We are underweight agency MBS and are managing duration toward the shorter end of our range. We have a high allocation to U.S. Treasuries that we will look to redeploy thoughtfully and efficiently — if and when market uncertainty and volatility cause credit fundamentals to become mispriced based on our intrinsic value estimates.

Sincerely yours,

The Brandes Fixed-Income Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. It is not possible to invest directly in an index.

As with most fixed income funds, the income on and value of your shares in the Fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the Fund owns usually decline. When interest rates fall, the prices of these securities usually increase. Generally, the longer the Fund’s average portfolio maturity and the lower the average quality of its portfolio, the greater the price fluctuation. The price of any security owned by the Fund may also fall in response to events affecting the issuer of the security, such as its ability to continue to make principal and interest payments or its credit rating. Below investment grade debt securities are speculative and involve a greater risk of default and price change due to changes in the issuer’s creditworthiness. The market prices of these debt securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in periods of general economic difficulty.

Asset coverage:  Assets available to cover debt obligations after all other liabilities have been satisfied.

Basis Point:  1/100 of 1%.

 

42


Brandes Core Plus Fixed Income Fund

 

Duration:  The weighted maturity of a fixed-income investment’s cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.

Intrinsic Value:  The actual value of a company or an asset based on an underlying perception of its true value.

Yield Spread:  The difference in yield between two comparable securities.

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

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.

Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service such as Standard & Poor’s or Moody’s. The service evaluates a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the Advisor will classify the security as nonrated.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

Index Guide

The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. This index is a total return index which reflects the price changes and interest of each bond in the index.

The Bloomberg Barclays U.S. Mortgage-Backed Securities Index is an unmanaged index consisting of mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The index is a total return index which reflects the price changes and interest of each bond in the index.

The Brandes Core Plus Fixed Income Fund is distributed by ALPS Distributors, Inc.

 

43


Brandes Core Plus Fixed Income Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Core Plus Fixed Income Fund – Class I from its inception (December 28, 2007) to March 31, 2017 with the value of such an investment in the Bloomberg Barclays U.S. Aggregate Bond Index for the same period.

Value of $100,000 Investment vs Bloomberg Barclays U.S. Aggregate Bond Index (Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2017
 
   One
Year
  Three
Years
  Five
Years
  Since
Inception(1)
 

Brandes Core Plus Fixed Income Fund

     

Class A*

   2.81  2.34  2.88  3.74

Class A* (with maximum sales charge)

   -1.10  1.04  2.10  3.32

Class I

   3.01  2.57  3.23  4.03

Bloomberg Barclays U.S. Aggregate Bond Index

   0.44  2.68  2.34  4.07

 

(1) The inception date is December 28, 2007.

 

*Performance shown prior to January 31, 2013 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses.

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of Fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

 

44


Brandes Core Plus Fixed Income Fund

 

Asset Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

LOGO

 

45


Brandes Credit Focus Yield Fund

 

Dear Fellow Investor,

The Brandes Credit Focus Yield Fund (Class I Shares) advanced 0.33% during the six months ended March 31, 2017, while its benchmark, the Bloomberg Barclays U.S. Intermediate Credit Bond Index, returned -0.78%.

The most notable positive contributors were corporate holdings in banking, energy, utilities and commodity resources. The Fund also benefited from holdings in private student loan asset backed securities (ABS).

Within the banking industry, the Fund received strong contributions from junior subordinated securities of U.S. Bank, JPMorgan and Wells Fargo. The U.S. Bank holding is a floating rate note while the JPMorgan and Wells Fargo holdings are currently fixed-rate securities, but will convert to floating rate notes in a year if they are not called. Bank credit profiles continue to improve, especially with short rates trending higher, and these securities also benefit from the possibility that they can convert to floating rate instruments.

Metals & mining companies Cloud Peak Energy and Royal Gold helped performance, as these companies benefited from higher commodity prices.

Cloud Peak is a coal miner operating in the Powder River Basin (Western United States). The company operates some of the industry’s lowest-cost mines in the country. During the fourth quarter of 2016 the company took steps to ease refinancing concerns by issuing a tender offer for its nearest term maturity (December 2019) and issuing second-lien notes maturing in 2021. The result of the tender was that Cloud Peak was able to reduce its debt maturing in 2019 from $200 million to $56 million. The company also benefited, post-U.S. presidential election, from the perception that the incoming administration will take a more favorable regulatory approach toward the coal industry.

In the first quarter of 2017, the Fund’s holdings in private student loan floating rate note ABS added to returns. We own securities backed by pools of loans issued from 2004 to 2007. We see improving credit trends with delinquencies declining, recovery rates increasing, and the credit enhancement feature of the bonds improving as the students in our pools are largely now in the workforce and thus better equipped to meet payment terms. Additionally, one feature common to private student loans is that most require a co-borrower. Therefore, in the event of bankruptcy the bond holder has recourse not only to the student, but typically the student’s parent or guardian as well. Furthermore, student loan debt is not dischargeable during bankruptcy, making the probability for an ultimate recovery high but the timing uncertain. These are floating rate notes that have begun to see their coupon rates reset higher as the Federal Reserve has begun to normalize interest rates.

Given tight yield spreads and low volatility, Fund activity was light.

 

 

46


Brandes Credit Focus Yield Fund

 

We added Frontier Communications (6.25% coupon rate, maturing September 2021 and rated B1/B+). Frontier is a telecommunications company offering services in mostly rural areas and is the dominant provider in areas that it serves. Frontier is facing industry headwinds as landline operations appear to be experiencing a secular decline. We believe Frontier’s primarily rural markets should be more insulated from secular changes initially, making this issue (with four years until maturity) attractive.

We also took advantage of the weakness in the energy sector in the first quarter of 2017 to increase our weighting in Range Resources.

After the U.S. presidential election, the Fund increased its weighting in a number of financials, including Bank of America, Goldman Sachs and Wells Fargo, as the incoming administration has suggested that it will examine and potentially roll back some of the onerous regulations that have been placed on the financial industry since the Global Financial Crisis. The Fund also purchased a few industrial credits, namely AT&T, Tenet Healthcare and Transocean. The common theme with both the increased weighting in financials and industrial purchases is our continued preference for shorter maturities, with all of the bonds scheduled to mature between 2017 and 2022.

Other activity included the sale of securities of Laboratory Corp. and Genworth Financial, which reached our estimates of intrinsic value.

Outlook

As of March 31, the U.S. fixed-income market continued to operate in a low-volatility environment. This has caused a great deal of complacency among investors.

What could possibly go wrong with equities hitting all-time highs and yield spreads hovering near historic lows? In our view, this environment has driven investors to stretch their risk boundaries in an effort to pick up additional yield.

Against this backdrop, the Fed appeared to start the process of withdrawing its unprecedented monetary policy accommodation. Does this mean we could begin to see volatility rise toward its historical mean and valuations become guided by fundamentals? We certainly hope so. Until that happens, we believe it is best to remain patient, especially if you’re a long-term investor.

At the close of the six-month period, the Brandes Credit Focus Yield Fund remained defensively positioned across a number of metrics. We favor short-maturity corporate bonds and those exhibiting strong, tangible asset coverage based on our analysis. We are underweight agency MBS and are managing duration toward the shorter end of our range. We have a high allocation to U.S. Treasuries that we will look to redeploy thoughtfully and efficiently — if and when market uncertainty and volatility cause credit fundamentals to become mispriced based on our intrinsic value estimates.

 

47


Brandes Credit Focus Yield Fund

 

Sincerely yours,

The Brandes Fixed-Income Investment Committee

Brandes Investment Trust

Because the values of the Fund’s investments will fluctuate with market conditions, so will the value of your investment in the Fund. You could lose money on your investment in the Fund, or the Fund could underperform other investments. The values of the Fund’s investments fluctuate in response to the activities of individual companies and general stock market and economic conditions. In addition, the performance of foreign securities depends on the political and economic environments and other overall economic conditions in the countries where the Fund invests. Emerging country markets involve greater risk and volatility than more developed markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar. It is not possible to invest directly in an index.

As with most fixed income funds, the income on and value of your shares in the Fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the Fund owns usually decline. When interest rates fall, the prices of these securities usually increase. Generally, the longer the Fund’s average portfolio maturity and the lower the average quality of its portfolio, the greater the price fluctuation. The price of any security owned by the Fund may also fall in response to events affecting the issuer of the security, such as its ability to continue to make principal and interest payments or its credit rating. Below investment grade debt securities are speculative and involve a greater risk of default and price change due to changes in the issuer’s creditworthiness. The market prices of these debt securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in periods of general economic difficulty.

Asset coverage:  Assets available to cover debt obligations after all other liabilities have been satisfied.

Duration:  The weighted maturity of a fixed-income investment’s cash flows, used in the estimation of the price sensitivity of fixed-income securities for a given change in interest rates.

Intrinsic Value:  The actual value of a company or an asset based on an underlying perception of its true value.

Yield Spread:  The difference in yield between two comparable securities.

 

 

48


Brandes Credit Focus Yield Fund

 

Yield:  Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment.

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.

Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service such as Standard & Poor’s or Moody’s. The service evaluates a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the Advisor will classify the security as nonrated.

Please refer to the Schedule of Investments in the report for complete holdings information. Fund holdings, geographic allocations and/or sector allocations are subject to change at any time and are not a recommendation to buy or sell any security.

The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Must be preceded or accompanied by a prospectus.

Index Guide

The Bloomberg Barclays U.S. Intermediate Credit Bond Index measures performance of U.S. Treasuries and government-related and investment-grade U.S. corporate securities that have remaining maturities of greater than one year and less than ten years. This index is a total return index which reflects the price changes and interest of each bond in the index.

The Brandes Credit Focus Yield Fund is distributed by ALPS Distributors, Inc.

 

49


Brandes Credit Focus Yield Fund

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Credit Focus Yield Fund – Class I from March 31, 2007 to March 31, 2017 with the value of such an investment in the Bloomberg Barclays U.S. Intermediate Credit Bond Index for the same period.

Value of $100,000 Investment vs Bloomberg Barclays U.S. Intermediate Credit Bond Index (Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2017**
 
   One
Year
  Five
Years
  Ten
Years
  Since
Inception(1)
 

Brandes Credit Focus Yield Fund

     

Class A*

   6.16  2.76  3.51  5.42

Class A* (with maximum sales charge)

   2.14  1.98  3.11  5.18

Class I

   6.53  3.05  3.79  5.70

Bloomberg Barclays U.S. Intermediate Credit Bond Index

   2.11  3.02  4.69  5.49

 

(1) The inception date is June 29, 2000.

 

*Performance shown prior to March 1, 2012 for Class A shares reflects the performance of Class I shares adjusted to reflect Class A expenses.

 

**Prior to February 1, 2012, the Advisor managed a private investment fund with an investment objective, investment policies and strategies that were, in all material respects, equivalent to those of the Brandes Credit Focus Yield Fund. The performance information shown for the Class I shares for periods before February 1, 2012 is that of the private investment fund and reflects the net expenses of the private investment fund. The performance of the private investment fund prior to February 1, 2012 is based on a calculation method that is different from the standardized calculation method prescribed by the SEC. The performance information shown for the Class A shares has been adjusted to reflect the differences in the net expense ratios between the Class I and A shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance.

 

 

50


Brandes Credit Focus Yield Fund

 

Performance data quoted represents past performance; past performance does not indicate future results. The investment return and principal value of an investment will fluctuate so 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. Performance data current to the most recent month end may be obtained by calling 800-331-2979.

The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The Advisor has a fee waiver arrangement in place to limit the Fund’s annual operating expenses.

Asset Allocation as a Percentage of Total Investments as of

March 31, 2017 (Unaudited)

 

LOGO

 

51


Brandes Investment Trust

 

Expense Example (Unaudited)

As a shareholder of a Fund, you incur ongoing costs, including investment advisory and administrative fees and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with ongoing costs of investing in other mutual funds.

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2016 to March 31, 2017 (the “Period”).

Actual Expenses

This section provides information about actual account values and actual expenses. The “Ending Account Value” shown is derived from each Fund’s actual return. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for the Fund under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

  Class A 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,072.90   1.18%  $6.10 

Global Equity Fund

 $1,000.00  $1,096.10   1.25%  $6.53 

Global Equity Income Fund

 $1,000.00  $1,103.30   1.25%  $6.55 

Global Opportunities Value Fund

 $1,000.00  $1,099.10   1.40%  $7.33 

Emerging Markets Value Fund

 $1,000.00  $1,099.70   1.37%  $7.17 

International Small Cap Fund

 $1,000.00  $1,075.30   1.29%  $6.67 

Core Plus Fixed Income Fund

 $1,000.00  $987.20   0.70%  $3.47 

Credit Focus Yield Fund

 $1,000.00  $1,001.10   0.85%  $4.24 

 

  Class C 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,068.90   1.93%  $9.96 

Global Equity Fund

 $1,000.00  $1,091.90   2.00%  $10.43 

Global Equity Income Fund

 $1,000.00  $1,095.80   2.00%  $10.36 

Global Opportunities Value Fund

 $1,000.00  $1,095.80   2.15%  $11.23 

Emerging Markets Value Fund

 $1,000.00  $1,095.50   2.12%  $11.08 

International Small Cap Fund

 $1,000.00  $1,071.80   2.04%  $10.54 

 

52


Brandes Investment Trust

 

  Class I 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,073.80   0.98%  $5.07 

Global Equity Fund

 $1,000.00  $1,097.50   1.00%  $5.23 

Global Equity Income Fund

 $1,000.00  $1,084.60   1.00%  $5.20 

Global Opportunities Value Fund

 $1,000.00  $1,101.20   1.15%  $6.02 

Emerging Markets Value Fund

 $1,000.00  $1,101.10   1.12%  $5.87 

International Small Cap Fund

 $1,000.00  $1,076.10   1.09%  $5.64 

Core Plus Fixed Income Fund

 $1,000.00  $988.30   0.50%  $2.48 

Credit Focus Yield Fund

 $1,000.00  $1,003.30   0.60%  $3.00 

 

  Class R6 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,075.20   0.82%  $4.24 

Emerging Markets Value Fund

 $1,000.00  $1,103.90   0.97%  $5.09 

International Small Cap Fund

 $1,000.00  $1,077.10   1.00%  $5.18 

Hypothetical Example for Comparison Purposes

This section provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Fund’s actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the last column of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

53


Brandes Investment Trust

 

 

  Class A 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,019.05   1.18%  $5.94 

Global Equity Fund

 $1,000.00  $1,018.70   1.25%  $6.29 

Global Equity Income Fund

 $1,000.00  $1,018.70   1.25%  $6.29 

Global Opportunities Value Fund

 $1,000.00  $1,017.95   1.40%  $7.04 

Emerging Markets Value Fund

 $1,000.00  $1,018.10   1.37%  $6.89 

International Small Cap Fund

 $1,000.00  $1,018.50   1.29%  $6.49 

Core Plus Fixed Income Fund

 $1,000.00  $1,021.44   0.70%  $3.53 

Credit Focus Yield Fund

 $1,000.00  $1,020.69   0.85%  $4.28 

 

  Class C 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,015.31   1.93%  $9.70 

Global Equity Fund

 $1,000.00  $1,014.96   2.00%  $10.05 

Global Equity Income Fund

 $1,000.00  $1,014.96   2.00%  $10.05 

Global Opportunities Value Fund

 $1,000.00  $1,014.21   2.15%  $10.80 

Emerging Markets Value Fund

 $1,000.00  $1,014.36   2.12%  $10.65 

International Small Cap Fund

 $1,000.00  $1,014.76   2.04%  $10.25 

 

  Class I 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,020.04   0.98%  $4.94 

Global Equity Fund

 $1,000.00  $1,019.95   1.00%  $5.04 

Global Equity Income Fund

 $1,000.00  $1,019.95   1.00%  $5.04 

Global Opportunities Value Fund

 $1,000.00  $1,019.20   1.15%  $5.79 

Emerging Markets Value Fund

 $1,000.00  $1,019.35   1.12%  $5.64 

International Small Cap Fund

 $1,000.00  $1,019.50   1.09%  $5.49 

Core Plus Fixed Income Fund

 $1,000.00  $1,022.44   0.50%  $2.52 

Credit Focus Yield Fund

 $1,000.00  $1,021.94   0.60%  $3.02 

 

54


Brandes Investment Trust

 

 

  Class R6 

Fund

 Beginning
Account
Value
  Ending
Account
Value
  Annual
Expense
Ratio
  Expenses
Paid
During
the Period*
 

International Equity Fund

 $1,000.00  $1,020.84   0.82%  $4.13 

Emerging Markets Value Fund

 $1,000.00  $1,020.16   0.97%  $4.89 

International Small Cap Fund

 $1,000.00  $1,020.01   1.00%  $5.04 

 

*Expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).

 

55


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 88.06% 
 Austria – 1.42% 
 221,089  Erste Group Bank AG $7,199,097 
  

 

 

 
 Brazil – 3.73% 
 376,596  Embraer SA Sponsored – ADR  8,315,240 
 1,434,000  Petroleo Brasileiro SA(a)  6,673,922 
 204,600  TIM Participacoes SA  656,163 
 208,017  TIM Participacoes SA Sponsored – ADR  3,324,111 
  

 

 

 
   18,969,436 
  

 

 

 
 China – 1.47% 
 678,500  China Mobile Ltd.  7,461,806 
  

 

 

 
 Finland – 1.35% 
 1,271,356  Nokia OYJ  6,833,360 
  

 

 

 
 France – 15.48% 
 496,041  Carrefour SA  11,687,337 
 148,084  Compagnie De Saint-Gobain SA  7,597,745 
 1,014,349  Engie SA  14,334,442 
 651,120  Orange SA  10,109,047 
 107,414  Publicis Groupe SA  7,499,692 
 64,077  Renault SA  5,566,533 
 152,205  Sanofi  13,758,656 
 110,349  Schneider Electric SE  8,107,228 
  

 

 

 
   78,660,680 
  

 

 

 
 Hong Kong – 1.03% 
 7,208,000  First Pacific Co. Ltd.  5,239,084 
  

 

 

 
 Ireland – 0.96% 
 37,407  Willis Towers Watson Plc  4,896,202 
  

 

 

 
 Italy – 5.70% 
 886,545  Eni SpA  14,515,704 
 1,885,373  Intesa Sanpaolo SpA  5,128,429 
 11,040,253  Telecom Italia Rsp  8,060,310 
 1,365,052  Telecom Italia SpA(a)  1,228,805 
  

 

 

 
   28,933,248 
  

 

 

 
Shares     Value 
 Japan – 15.95% 
 143,800  Canon, Inc. $4,490,681 
 498,400  Dai Nippon Printing Co. Ltd.  5,393,374 
 324,102  Daiichi Sankyo Co. Ltd.  7,312,092 
 328,100  Honda Motor Co. Ltd.  9,905,025 
 227,700  Mitsubishi Tanabe Pharma Corp.  4,754,159 
 1,280,000  Mitsubishi UFJ Financial Group, Inc.  8,062,935 
 229,999  MS&AD Insurance Group Holdings, Inc.  7,346,307 
 702,500  Nissan Motor Co. Ltd.  6,773,775 
 226,200  Sumitomo Mitsui Trust Holdings, Inc.  7,838,263 
 90,900  Taisho Pharmaceutical Holdings Co. Ltd.  7,401,407 
 250,100  Takeda Pharmaceutical Co. Ltd.  11,773,993 
  

 

 

 
   81,052,011 
  

 

 

 
 Mexico – 2.36% 
 838,272  Cemex SAB de CV Sponsored ADR – ADR(a)  7,603,127 
 2,553,982  Fibra Uno Administracion SA de CV  4,366,621 
  

 

 

 
   11,969,748 
  

 

 

 
 Netherlands – 1.72% 
 1,714,506  AEGON NV  8,733,465 
  

 

 

 
 Russia – 2.99% 
 139,363  Oil Company LUKOIL PJSC  7,382,010 
 84,652  Oil Company LUKOIL PJSC Sponsored – ADR  4,491,635 
 1,456,315  Public Join-Stock Co. Gazprom  3,309,719 
  

 

 

 
   15,183,364 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

56


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 South Korea – 5.25% 
 221,975  Hana Financial Group, Inc. $7,324,736 
 41,267  Hyundai Mobis Co. Ltd.  8,877,239 
 20,520  Hyundai Motor Co.  2,891,921 
 29,246  POSCO  7,595,946 
  

 

 

 
   26,689,842 
  

 

 

 
 Spain – 1.63% 
 534,406  Repsol SA  8,279,526 
  

 

 

 
 Sweden – 1.50% 
 1,139,674  LM Ericsson Telefon AB – Class B(b)  7,608,884 
  

 

 

 
 Switzerland – 5.72% 
 600,322  Credit Suisse Group AG  8,931,965 
 16,049  Swatch Group Ltd. Bearer  5,745,988 
 37,669  Swatch Group Ltd. Registered  2,624,965 
 26,053  Swiss Resources AG  2,339,979 
 588,653  UBS Group AG  9,409,391 
  

 

 

 
   29,052,288 
  

 

 

 
 United Kingdom – 19.80% 
 86,832  AstraZeneca Plc  5,339,031 
Shares     Value 
 2,554,364  Barclays Plc $7,210,395 
 2,295,925  BP Plc  13,215,585 
 1,658,328  G4S Plc  6,321,728 
 620,684  GlaxoSmithKline Plc  12,905,818 
 919,294  HSBC Holdings Plc  7,498,526 
 2,629,364  J Sainsbury Plc  8,708,916 
 1,821,726  Kingfisher Plc  7,453,748 
 2,587,222  Marks & Spencer Group Plc  10,928,080 
 4,460,190  Tesco Plc(a)  10,380,460 
 3,535,297  Wm Morrison Supermarkets Plc  10,638,677 
  

 

 

 
   100,600,964 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $510,713,863)

 $447,363,005 
  

 

 

 
 PREFERRED STOCKS – 2.73% 
 Brazil – 1.45% 
 376,900  Telefonica Brasil SA  5,605,463 
 120,102  Telefonica Brasil SA Sponsored – ADR  1,783,515 
  

 

 

 
   7,388,978 
  

 

 

 
 Russia – 1.28% 
 11,340,603  Surgutneftegas OJSC  6,486,677 
  

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $13,035,371)

 $13,875,655 
  

 

 

 
 
   Principal
Amount
  Value 
REPURCHASE AGREEMENTS – 9.45% 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $49,170,000, US Treasury Note 1.875%, 03/31/22,
(Market Value $48,985,613)] (proceeds $48,023,738)

 $48,023,378  $48,023,378 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $48,023,378)

  $48,023,378 
  

 

 

 

Total Investments (Cost $571,772,612) – 100.24%

  $509,262,038 

Liabilities in Excess of Other Assets – (0.24)%

   (1,208,317
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $508,053,721 
  

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

(a)Non-income producing security.
(b)All or a portion of this security is on loan. See Note 2 in the Notes to Financial Statements.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

57


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   1.64

Auto Components

   1.75

Automobiles

   4.95

Banks

   9.89

Building Products

   1.50

Capital Markets

   3.61

Commercial Services & Supplies

   2.31

Communications Equipment

   2.84

Construction Materials

   1.50

Diversified Financial Services

   1.03

Diversified Telecommunication Services

   3.82

Electrical Equipment

   1.60

Food & Staples Retailing

   8.15

Insurance

   4.59

Media

   1.48

Metals & Mining

   1.50

Multiline Retail

   2.15

Multi-Utilities

   2.82

Oil, Gas & Consumable Fuels

   11.39

Pharmaceuticals

   12.45

Real Estate Investment Trust

   0.86

Specialty Retail

   1.47

Technology Hardware, Storage & Peripherals

   0.88

Textiles, Apparel & Luxury Goods

   1.65

Wireless Telecommunication Services

   2.23
  

 

 

 

TOTAL COMMON STOCKS

   88.06
  

 

 

 

PREFERRED STOCKS

  

Diversified Telecommunication Services

   1.45

Oil, Gas & Consumable Fuels

   1.28
  

 

 

 

TOTAL PREFERRED STOCKS

   2.73
  

 

 

 

REPURCHASE AGREEMENTS

   9.45
  

 

 

 

TOTAL INVESTMENTS

   100.24

Liabilities in Excess of Other Assets

   (0.24)% 
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

58


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 92.63% 
 Aerospace & Defense – 2.31% 
 250,820  Embraer SA $1,390,062 
 7,378  Embraer SA Sponsored – ADR  162,906 
  

 

 

 
   1,552,968 
  

 

 

 
 Auto Components – 1.58% 
 4,950  Hyundai Mobis Co. Ltd.  1,064,830 
  

 

 

 
 Automobiles – 5.86% 
 35,100  Honda Motor Co. Ltd.  1,059,635 
 11,771  Hyundai Motor Co.  1,658,908 
 127,000  Nissan Motor Co. Ltd.  1,224,583 
  

 

 

 
   3,943,126 
  

 

 

 
 Banks – 12.56% 
 58,097  Bank of America Corp.  1,370,508 
 228,395  Barclays Plc  644,708 
 35,722  Citigroup, Inc.  2,136,890 
 25,975  Erste Group Bank AG  845,797 
 87,902  HSBC Holdings Plc  717,002 
 9,560  PNC Financial Services Group, Inc.  1,149,494 
 28,404  Wells Fargo & Co.  1,580,967 
  

 

 

 
   8,445,366 
  

 

 

 
 Beverages – 0.78% 
 4,668  PepsiCo, Inc.  522,162 
  

 

 

 
 Capital Markets – 7.87% 
 26,440  Bank of New York Mellon Corp.  1,248,761 
 81,067  Credit Suisse Group AG  1,206,166 
 17,458  State Street Corp.  1,389,831 
 90,575  UBS Group AG  1,447,806 
  

 

 

 
   5,292,564 
  

 

 

 
 Communications Equipment – 2.57% 
 148,782  LM Ericsson Telefon AB – Class B(c)  993,324 
 137,193  Nokia OYJ  737,393 
  

 

 

 
   1,730,717 
  

 

 

 
 Diversified Financial Services – 1.41% 
 36,368  Leucadia National Corp.  945,568 
  

 

 

 
Shares     Value 
 
Diversified Telecommunication
Services – 1.13%
 
 
 1,045,481  Telecom Italia Rsp $763,289 
  

 

 

 
 Electric Utilities – 0.81% 
 15,092  Exelon Corp.  543,010 
  

 

 

 
 Electrical Equipment – 3.97% 
 17,086  Emerson Electric Co.  1,022,768 
 22,403  Schneider Electric SE  1,645,925 
  

 

 

 
   2,668,693 
  

 

 

 
 Food & Staples Retailing – 4.78% 
 26,418  Carrefour SA  622,441 
 297,726  J Sainsbury Plc  986,121 
 416,038  Tesco Plc(a)  968,269 
 212,603  Wm Morrison Supermarkets Plc  639,781 
  

 

 

 
   3,216,612 
  

 

 

 
 Health Care Providers & Services – 4.26% 
 21,065  Express Scripts Holding Co.(a)  1,388,394 
 9,960  McKesson Corp.  1,476,670 
  

 

 

 
   2,865,064 
  

 

 

 
 Hotels, Restaurants & Leisure – 1.84% 
 1,004,500  Genting Malaysia Bhd.  1,236,853 
  

 

 

 
 Insurance – 2.34% 
 15,211  American International Group, Inc.  949,622 
 6,929  Swiss Resources AG  622,336 
  

 

 

 
   1,571,958 
  

 

 

 
 Media – 1.03% 
 9,950  Publicis Groupe SA  694,713 
  

 

 

 
 Multiline Retail – 1.56% 
 248,544  Marks & Spencer Group Plc  1,049,817 
  

 

 

 
 Multi-Utilities – 2.32% 
 79,376  Engie SA  1,121,715 
 20,100  Engie SA Registered Shares (Prime De Fidelite 2017)  284,046 
 11,100  Engie SA Registered Shares (Prime De Fidelite 2018)  156,862 
  

 

 

 
   1,562,623 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

59


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 Oil, Gas & Consumable Fuels – 10.56% 
 8,374  Apache Corp. $430,340 
 314,242  BP Plc  1,808,810 
 71,529  Eni SpA  1,171,169 
 24,494  Oil Company LUKOIL PJSC Sponsored – ADR  1,299,652 
 220,760  Public Join-Stock
Co. Gazprom
  501,714 
 55,737  Repsol SA  863,530 
 20,323  Total SA  1,027,603 
  

 

 

 
   7,102,818 
  

 

 

 
 Pharmaceuticals – 12.85% 
 47,000  Daiichi Sankyo Co. Ltd.  1,060,371 
 105,356  GlaxoSmithKline Plc  2,190,656 
 21,071  Merck & Co., Inc.  1,338,851 
 52,336  Pfizer, Inc.  1,790,415 
 25,066  Sanofi  2,265,855 
  

 

 

 
   8,646,148 
  

 

 

 
 Software – 2.17% 
 22,158  Microsoft Corp.  1,459,326 
  

 

 

 
Shares     Value 
 
Technology Hardware, Storage &
Peripherals – 3.37%
 
 
 865  Samsung Electronics Co. Ltd. $1,591,959 
 8,197  Western Digital Corp.  676,499 
  

 

 

 
   2,268,458 
  

 

 

 
 Tobacco – 1.01% 
 7,830  KT&G Corp.  682,666 
  

 

 

 
 Wireless Telecommunication Services – 3.69% 
 48,696  America Movil SAB de CV Sponsored – Class L – ADR  690,023 
 99,000  China Mobile Ltd.  1,088,753 
 43,936  TIM Participacoes SA Sponsored – ADR  702,097 
  

 

 

 
   2,480,873 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $56,692,056)

 $62,310,222 
  

 

 

 
 
   Principal
Amount
  Value 
CORPORATE BONDS – 0.98% 
Oil, Gas & Consumable Fuels – 0.98% 

Chesapeake Energy Corp.
8.000%, 12/15/2022 (Acquired 02/24/16, Cost $262,938)(b)

 $626,000  $655,735 
  

 

 

 

TOTAL CORPORATE BONDS
(Cost $262,937)

  $655,735 
  

 

 

 
REPURCHASE AGREEMENTS – 6.23% 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $4,495,000 US Treasury Note, 1.375%, 08/31/23,
(Market Value $4,278,629)] (proceeds $4,192,808)

 $4,192,777  $4,192,777 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $4,192,777)

  $4,192,777 
  

 

 

 

Total Investments (Cost $61,147,770) – 99.84%

  $67,158,734 

Other Assets in Excess of Liabilities – 0.16%

   106,219 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $67,264,953 
  

 

 

 

 

Percentages are stated as a percent of net assets.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

60


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

ADR American Depositary Receipt

(a)Non-income producing security.
(b)Security was purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or were acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market value of this security totals $655,735 which represents 0.98% of the Fund’s net assets.
(c)All or a portion of this security is on loan. See Note 2 in the Notes to Financial Statements.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

61


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Austria

   1.26

Brazil

   3.35

China

   1.62

Finland

   1.10

France

   11.62

Italy

   2.88

Japan

   4.97

Malaysia

   1.84

Mexico

   1.03

Russia

   2.68

South Korea

   7.43

Spain

   1.28

Sweden

   1.48

Switzerland

   4.87

United Kingdom

   13.39

United States

   31.83
  

 

 

 

TOTAL COMMON STOCKS

   92.63
  

 

 

 

CORPORATE BONDS

  

United States

   0.98
  

 

 

 

TOTAL CORPORATE BONDS

   0.98
  

 

 

 

REPURCHASE AGREEMENTS

   6.23
  

 

 

 

TOTAL INVESTMENTS

   99.84

Other Assets in Excess of Liabilities

   0.16
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

62


Brandes Global Equity Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 87.29% 
 Automobiles – 2.18% 
 700  Honda Motor Co. Ltd. $21,132 
  

 

 

 
 Banks – 7.90% 
 377  BB&T Corp.  16,852 
 2,038  HSBC Holdings Plc  16,623 
 176  PNC Financial Services Group, Inc.  21,162 
 395  Wells Fargo & Co.  21,986 
  

 

 

 
   76,623 
  

 

 

 
 Beverages – 2.37% 
 567  Diageo Plc  16,236 
 60  PepsiCo, Inc.  6,712 
  

 

 

 
   22,948 
  

 

 

 
 Capital Markets – 4.16% 
 280  Bank of New York Mellon Corp.  13,224 
 1,695  UBS Group AG  27,094 
  

 

 

 
   40,318 
  

 

 

 
 Communications Equipment – 2.76% 
 2,502  LM Ericsson Telefon AB – Class B  16,704 
 1,875  Nokia OYJ  10,078 
  

 

 

 
   26,782 
  

 

 

 
 
Diversified Telecommunication
Services – 2.53%
 
 
 2,190  Telefonica Brasil SA  24,498 
  

 

 

 
 Electric Utilities – 5.91% 
 3,200  Companhia Paranaense de Energia  26,321 
 152,328  Enersis Chile SA  16,861 
 392  Exelon Corp.  14,104 
  

 

 

 
   57,286 
  

 

 

 
 Electrical Equipment – 4.93% 
 305  Emerson Electric Co.  18,257 
 403  Schneider Electric SE  29,608 
  

 

 

 
   47,865 
  

 

 

 
 Food & Staples Retailing – 5.67% 
 4,381  J Sainsbury Plc  14,511 
 6,533  Tesco Plc(a)  15,205 
 219  Wal-Mart Stores, Inc.  15,785 
Shares     Value 
 3,159  Wm Morrison Supermarkets Plc $9,506 
  

 

 

 
   55,007 
  

 

 

 
 Household Products – 1.06% 
 115  Procter & Gamble Co.  10,333 
  

 

 

 
 Insurance – 1.48% 
 160  Swiss Resources AG  14,371 
  

 

 

 
 Media – 1.60% 
 222  Publicis Groupe SA  15,500 
  

 

 

 
 Multiline Retail – 1.54% 
 3,545  Marks & Spencer Group Plc  14,974 
  

 

 

 
 Multi-Utilities – 2.98% 
 1,648  Engie SA  23,289 
 400  Engie SA Registered Shares (Prime De Fidelite 2018)  5,653 
  

 

 

 
   28,942 
  

 

 

 
 Oil, Gas & Consumable Fuels – 10.42% 
 4,367  BP Plc  25,137 
 77  Chevron Corp.  8,267 
 1,585  Eni SpA  25,952 
 776  Royal Dutch Shell
Plc – Class A
  20,454 
 420  Total SA  21,237 
  

 

 

 
   101,047 
  

 

 

 
 Pharmaceuticals – 15.18% 
 600  Daiichi Sankyo Co. Ltd.  13,537 
 1,512  GlaxoSmithKline Plc  31,439 
 180  Johnson & Johnson  22,419 
 345  Merck & Co., Inc.  21,921 
 747  Pfizer, Inc.  25,555 
 358  Sanofi  32,361 
  

 

 

 
   147,232 
  

 

 

 
 Real Estate Investment Trusts – 1.84% 
 10,415  Fibra Uno Administracion SA de CV  17,807 
  

 

 

 
 Software – 2.16% 
 318  Microsoft Corp.  20,943 
  

 

 

 
 Specialty Retail – 1.53% 
 3,620  Kingfisher Plc  14,811 
  

 

 

 
 
Technology Hardware, Storage &
Peripherals – 1.00%
 
 
 118  Western Digital Corp.  9,739 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

63


Brandes Global Equity Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 Textiles, Apparel & Luxury Goods – 3.64% 
 810  Burberry Group Plc $17,481 
 81  LVMH Moet Hennessy Louis Vuitton SE  17,803 
  

 

 

 
   35,284 
  

 

 

 
 Tobacco – 4.45% 
 196  British American Tobacco Plc  13,004 
 312  Imperial Tobacco Group Plc  15,121 
 173  KT&G Corp.  15,083 
  

 

 

 
   43,208 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $784,147)

 $846,650 
  

 

 

 
 PREFERRED STOCKS – 9.59% 
 Banks – 2.56% 
 1,067  Bank of America Corp., 4.000%  24,829 
  

 

 

 
Shares     Value 
 Capital Markets – 5.11% 
 1,031  Goldman Sachs Group, Inc., 3.750% $24,445 
 1,063  Morgan Stanley, 4.000%  25,097 
  

 

 

 
   49,542 
  

 

 

 
 
Technology Hardware, Storage &
Peripherals – 1.92%
 
 
 13  Samsung Electronics Co. Ltd.  18,621 
  

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $74,408)

 $92,992 
  

 

 

 
 

Total Investments
(Cost $858,555) – 96.88%

 $939,642 
 

Other Assets in Excess of
Liabilities – 3.12%

  30,259 
  

 

 

 
 

TOTAL NET ASSETS – 100.00%

 $969,901 
  

 

 

 
 

 

Percentages are stated as a percent of net assets.

 

(a)Non-income producing security.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

64


Brandes Global Equity Income Fund

SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Brazil

   5.24

Chile

   1.74

Finland

   1.04

France

   15.00

Italy

   2.68

Japan

   3.57

Mexico

   1.84

South Korea

   1.56

Sweden

   1.72

Switzerland

   4.28

United Kingdom

   23.15

United States

   25.47
  

 

 

 

TOTAL COMMON STOCKS

   87.29
  

 

 

 

PREFERRED STOCKS

  

South Korea

   1.92

United States

   7.67
  

 

 

 

TOTAL PREFERRED STOCKS

   9.59
  

 

 

 

TOTAL INVESTMENTS

   96.88

Other Assets in Excess of Liabilities

   3.12
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

65


Brandes Global Opportunities Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 85.78% 
 Aerospace & Defense – 2.58% 
 27,509  Embraer SA Sponsored – ADR $607,399 
  

 

 

 
 Auto Components – 2.57% 
 1,608  Hyundai Mobis Co. Ltd.  345,908 
 12,900  Tachi-S Co. Ltd.  257,304 
  

 

 

 
   603,212 
  

 

 

 
 Automobiles – 2.86% 
 11,300  Honda Motor Co. Ltd.  341,136 
 34,300  Nissan Motor Co. Ltd.  330,734 
  

 

 

 
   671,870 
  

 

 

 
 Banks – 7.24% 
 9,327  Bank of America Corp.  220,024 
 75,862  Barclays Plc  214,141 
 8,000  Citigroup, Inc.  478,560 
 10,146  Erste Group Bank AG  330,374 
 5,095  KB Financial Group, Inc.  223,296 
 83,468  Sberbank of Russia OJSC  237,008 
  

 

 

 
   1,703,403 
  

 

 

 
 Capital Markets – 4.41% 
 22,793  Credit Suisse Group AG  339,129 
 4,202  State Street Corp.  334,521 
 22,729  UBS Group AG  363,314 
  

 

 

 
   1,036,964 
  

 

 

 
 Commercial Services & Supplies – 2.78% 
 42,897  De La Rue Plc  331,072 
 116,406  Mitie Group Plc  323,630 
  

 

 

 
   654,702 
  

 

 

 
 Communications Equipment – 1.63% 
 57,383  LM Ericsson Telefon AB – Class B  383,110 
  

 

 

 
 Construction & Engineering – 0.69% 
 18,700  Sanki Engineering Co. Ltd.  161,367 
  

 

 

 
 Construction Materials – 0.97% 
 25,224  Cemex SAB de CV Sponsored –
ADR(a)
  228,782 
  

 

 

 
Shares     Value 
 Diversified Financial Services – 3.23% 
 397,340  First Pacific Co. Ltd. $288,804 
 87,172  Haci Omer Sabanci Holding AS  239,843 
 8,920  Leucadia National Corp.  231,920 
  

 

 

 
   760,567 
  

 

 

 
 
Diversified Telecommunication
Services – 4.16%
 
 
 72,050  APT Satellite Holdings Ltd.  38,526 
 117,693  Magyar Telekom Telecommunications Plc  195,200 
 487,782  Telecom Italia Rsp  356,121 
 34,800  Telefonica Brasil SA  389,285 
  

 

 

 
   979,132 
  

 

 

 
 Electric Utilities – 2.23% 
 28,200  Companhia Paranaense de Energia  231,952 
 11,165  Reliance Infrastructure Ltd. – GDR  293,324 
  

 

 

 
   525,276 
  

 

 

 
 Electrical Equipment – 1.91% 
 13,500  Futaba Corp.  239,324 
 2,868  Schneider Electric SE  210,709 
  

 

 

 
   450,033 
  

 

 

 
 Food & Staples Retailing – 6.56% 
 10,703  Carrefour SA  252,176 
 143,607  J Sainsbury Plc  475,652 
 146,693  Tesco Plc(a)  341,407 
 157,480  Wm Morrison Supermarkets Plc  473,900 
  

 

 

 
   1,543,135 
  

 

 

 
 Food Products – 1.26% 
 133,700  Marfrig Global Foods SA(a)  247,276 
 590  Savencia SA  49,120 
  

 

 

 
   296,396 
  

 

 

 
 Health Care Equipment & Supplies – 0.84% 
 18,810  Syneron Medical Ltd.(a)  198,446 
  

 

 

 
 Health Care Providers & Services – 2.61% 
 4,176  Express Scripts Holding Co.(a)  275,240 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

66


Brandes Global Opportunities Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 2,285  McKesson Corp. $338,774 
  

 

 

 
   614,014 
  

 

 

 
 Household Durables – 2.50% 
 1,133,079  Consorcio ARA SAB de CV  358,281 
 7,626  MDC Holdings, Inc.  229,161 
  

 

 

 
   587,442 
  

 

 

 
 Insurance – 0.95% 
 1,699  Willis Towers Watson Plc  222,382 
  

 

 

 
 Machinery – 2.72% 
 22,258  Briggs & Stratton Corp.  499,692 
 7,610  China Yuchai International Ltd.  140,861 
  

 

 

 
   640,553 
  

 

 

 
 Metals & Mining – 0.98% 
 885  POSCO  229,858 
  

 

 

 
 Multiline Retail – 2.66% 
 268,022  Debenhams Plc  182,678 
 104,827  Marks & Spencer Group Plc  442,775 
  

 

 

 
   625,453 
  

 

 

 
 Multi-Utilities – 1.87% 
 26,627  Engie SA  376,284 
 4,400  Engie SA Registered Shares (Prime De Fidelite 2018)  62,179 
  

 

 

 
   438,463 
  

 

 

 
 Oil, Gas & Consumable Fuels – 7.54% 
 61,719  BP Plc  355,261 
 33,407  Chesapeake Energy Corp.(a)  198,437 
 23,917  Eni SpA  391,601 
 6,446  Oil Company LUKOIL PJSC Sponsored – ADR  342,025 
 43,540  Petroleo Brasileiro SA(a)  202,638 
 62,719  Public Joint-Stock Co. Gazprom Sponsored – ADR  281,922 
  

 

 

 
   1,771,884 
  

 

 

 
 Pharmaceuticals – 3.43% 
 21,829  GlaxoSmithKline Plc  453,888 
Shares     Value 
 3,911  Sanofi $353,537 
  

 

 

 
   807,425 
  

 

 

 
 Real Estate Investment Trusts – 3.71% 
 230,344  Fibra Uno Administracion SA de CV  393,826 
 27,539  Grivalia Properties Real Estate Investment Co. SA  240,905 
 211,505  Macquarie Mexico Real Estate Management SA de CV  237,237 
  

 

 

 
   871,968 
  

 

 

 
 
Real Estate Management &
Development – 3.74%
 
 
 218,712  Countrywide Plc  426,327 
 70,749  LSL Property Services Plc  185,260 
 15,741  St Joe Co.(a)  268,384 
  

 

 

 
   879,971 
  

 

 

 
 
Semiconductors & Semiconductor
Equipment – 1.01%
 
 
 3,900  NuFlare Technology, Inc.  237,410 
  

 

 

 
 
Technology Hardware, Storage &
Peripherals – 1.97%
 
 
 184  Samsung Electronics Co. Ltd.  338,636 
 1,494  Western Digital Corp.  123,300 
  

 

 

 
   461,936 
  

 

 

 
 Textiles, Apparel & Luxury Goods – 1.34% 
 43,700  TSI Holdings Co. Ltd.  315,202 
  

 

 

 
 Tobacco – 1.00% 
 2,689  KT&G Corp.  234,443 
  

 

 

 
 Wireless Telecommunication Services – 1.83% 
 27,500  China Mobile Ltd.  302,431 
 326,647  Sistema JSFC  129,028 
  

 

 

 
   431,459 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $18,995,633)

 $20,173,657 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

67


Brandes Global Opportunities Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 PREFERRED STOCKS – 5.81% 
 Automobiles – 2.00% 
 5,284  Hyundai Motor Co. $469,195 
  

 

 

 
 Banks – 1.01% 
 78,108  Itausa – Investimentos Itau SA  238,271 
  

 

 

 
 Food & Staples Retailing – 1.04% 
 12,700  Companhia Brasileira de Distribuicao  244,540 
  

 

 

 
Shares     Value 
 Health Care Equipment & Supplies – 0.77% 
 1,769  Draegerwerk AG & Co. KGaA $181,782 
  

 

 

 
 Oil, Gas & Consumable Fuels – 0.99% 
 405,050  Surgutneftegas OJSC  231,683 
  

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $1,182,278)

 $1,365,471 
  

 

 

 
 
   Principal
Amount
  Value 
CORPORATE BONDS – 0.61%  
Oil, Gas & Consumable Fuels – 0.61%  

Chesapeake Energy Corp.
6.625%, 8/15/2020

 $86,000  $85,893 

8.000%, 12/15/2022 (Acquired 02/08/16, Cost $24,003)(b)

  54,000   56,565 
  

 

 

 

TOTAL CORPORATE BONDS
(Cost $69,080)

  $142,458 
  

 

 

 
REPURCHASE AGREEMENTS – 7.27%  

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), Due 04/03/17, 0.09% [Collateralized
by $1,750,000 US Treasury Note, 1.875%, 03/31/22
(Market Value $1,743,438)] (proceeds $1,709,142)

 $1,709,130  $1,709,130 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $1,709,130)

  $1,709,130 
  

 

 

 

Total Investments (Cost $21,956,121) – 99.47%

  $23,390,716 

Other Assets in Excess of Liabilities – 0.53%

   124,458 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $23,515,174 
  

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

GDR Global Depositary Receipt

(a)Non-income producing security.
(b)Security was purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or was acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market value of this security totals $56,565 which represents 0.24% of the Fund’s net assets.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

68


Brandes Global Opportunities Value Fund

SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Austria

   1.40

Brazil

   7.14

China

   1.89

France

   5.55

Greece

   1.02

Hong Kong

   1.39

Hungary

   0.83

India

   1.25

Israel

   0.84

Italy

   3.18

Japan

   8.01

Mexico

   5.18

Russia

   4.21

South Korea

   5.84

Sweden

   1.63

Switzerland

   2.99

Turkey

   1.02

United Kingdom

   17.89

United States

   14.52
  

 

 

 

TOTAL COMMON STOCKS

   85.78
  

 

 

 

PREFERRED STOCKS

  

Brazil

   2.05

Germany

   0.77

Russia

   0.99

South Korea

   2.00
  

 

 

 

TOTAL PREFERRED STOCKS

   5.81
  

 

 

 

CORPORATE BONDS

  

United States

   0.61
  

 

 

 

TOTAL CORPORATE BONDS

   0.61
  

 

 

 

REPURCHASE AGREEMENTS

   7.27
  

 

 

 

TOTAL INVESTMENTS

   99.47

Other Assets in Excess of Liabilities

   0.53
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

69


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 84.12% 
 Argentina – 1.27% 
 2,289,635  Arcos Dorados Holdings, Inc. – Class A(a) $18,431,562 
  

 

 

 
 Austria – 2.38% 
 1,066,750  Erste Group Bank AG  34,735,499 
  

 

 

 
 Brazil – 9.94% 
 1,390,315  Banco do Brasil SA  14,970,778 
 800,010  Companhia Paranaense de Energia  6,580,291 
 1,767,385  Embraer SA Sponsored – ADR  39,023,861 
 3,767,200  Estacio Participacoes SA  18,988,825 
 4,153,000  Kroton Educacional SA  17,603,753 
 11,717,111  Marfrig Global Foods SA(a)  21,670,630 
 2,598,900  Petroleo Brasileiro SA(a)  12,095,436 
 862,644  TIM Participacoes SA Sponsored – ADR  13,785,051 
  

 

 

 
   144,718,625 
  

 

 

 
 Chile – 3.54% 
 2,108,192  Empresa Nacional de Telecomunicaciones SA(a)  25,482,646 
 51,051,761  Enersis Chile SA  5,650,798 
 3,724,374  Enersis Chile SA Sponsored – ADR  20,484,057 
  

 

 

 
   51,617,501 
  

 

 

 
 China – 6.02% 
 174,645,000  Bosideng International Holdings Ltd.  15,065,808 
 3,251,400  China Mobile Ltd.  35,757,284 
 173,073  China Yuchai International Ltd.  3,203,581 
Shares     Value 
 22,125,000  Dongfeng Motor Group Co. Ltd. – Class H $24,870,681 
 12,307,077  Weiqiao Textile Co. – Class H(b)(f)  8,836,581 
  

 

 

 
   87,733,935 
  

 

 

 
 Colombia – 1.19% 
 2,127,094  Grupo Aval Acciones y Valores Grupo Sponsored – ADR  17,378,358 
  

 

 

 
 Cyprus – 0.33% 
 669,837  Globaltrans Investment Plc Sponsored RegS – GDR  4,822,826 
  

 

 

 
 Czech Republic – 0.75% 
 981,490  O2 Czech Republic AS  10,965,741 
  

 

 

 
 Greece – 1.48% 
 2,300,930  Hellenic Telecommunications Organization SA  21,617,625 
  

 

 

 
 Hong Kong – 6.56% 
 24,990,600  Chow Tai Fook Jewellery Group Ltd.  24,274,704 
 28,461,920  First Pacific Co. Ltd.  20,687,346 
 15,778,500  Lifestyle China Group Ltd.(a)  4,732,476 
 15,676,500  Lifestyle International Holdings Ltd.  21,273,423 
 7,754,000  Luk Fook Holdings International Ltd.  24,648,707 
  

 

 

 
   95,616,656 
  

 

 

 
 India – 4.04% 
 913,009  Infosys Ltd.  14,393,689 
 1,077,359  PC Jeweller Ltd.  6,935,810 
 34,348  Reliance Infrastructure Ltd. – GDR  902,380 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

70


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 2,515,599  Reliance Infrastructure Ltd. $22,033,799 
 2,062,248  Tech Mahindra Ltd.  14,584,778 
  

 

 

 
   58,850,456 
  

 

 

 
 Indonesia – 2.06% 
 130,976,015  PT XL Axiata Tbk(a)  30,075,520 
  

 

 

 
 Luxembourg – 1.55% 
 604,688  Adecoagro SA(a)  6,929,724 
 600,885  Ternium SA Sponsored – ADR  15,695,116 
  

 

 

 
   22,624,840 
  

 

 

 
 Mexico – 8.41% 
 4,136,586  Cemex SAB de CV Sponsored – ADR(a)  37,518,836 
 14,231,206  Fibra Uno Administracion SA de CV  24,331,526 
 21,413,582  Fideicomiso PLA Administradora Industrial S de RL de CV  34,941,576 
 20,533,014  Macquarie Mexico Real Estate Management SA de CV  23,031,062 
 10,242,449  Urbi Desarrollos Urbanos SA de CV(a)(e)  2,735,368 
  

 

 

 
   122,558,368 
  

 

 

 
 Pakistan – 0.83% 
 7,646,760  Nishat Mills Ltd.  12,050,413 
  

 

 

 
 Panama – 1.48% 
 778,859  Banco Latinoamericano de Comercio Exterior SA – Class E  21,605,549 
  

 

 

 
 Russia – 8.69% 
 6,767,787  Mobile TeleSystems PJSC  32,782,172 
Shares     Value 
 54,717  Mobile TeleSystems PJSC Sponsored – ADR $603,529 
 630,096  Oil Company LUKOIL PJSC Sponsored – ADR  33,432,895 
 1,673,728  Public Joint-Stock Co. Gazprom  3,803,826 
 3,939,534  Public Joint-Stock Co. Gazprom Sponsored – ADR  17,708,205 
 3,302,987  Sberbank of Russia OJSC Sponsored – ADR  38,083,440 
  

 

 

 
   126,414,067 
  

 

 

 
 South Korea – 12.49% 
 443,333  Hana Financial Group, Inc.  14,629,112 
 131,987  Hyundai Mobis Co. Ltd.  28,392,665 
 340,531  KB Financial Group, Inc.  14,924,271 
 648,389  KIA Motors Corp.  21,489,352 
 418,544  KT&G Corp.  36,491,138 
 57,604  POSCO  14,961,256 
 17,987  Samsung Electronics Co. Ltd.  33,103,552 
 427,503  Shinhan Financial Group Co. Ltd.  17,812,803 
  

 

 

 
   181,804,149 
  

 

 

 
 Spain – 0.98% 
 6,246,765  Prosegur Cash SA (Acquired 03/16/17, Cost $13,454,302)(a)(c)  14,261,108 
  

 

 

 
 Thailand – 3.47% 
 4,162,000  Bangkok Bank Plc – NVDR  21,984,607 
 43,883,700  Jasmine Broadband Internet Infrastructure  14,813,261 
 2,511,600  Kasikornbank Plc – NVDR  13,821,168 
  

 

 

 
   50,619,036 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

71


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 Turkey – 5.67% 
 6,190,065  Akbank TAS $14,533,246 
 37,130,599  Emlak Konut Gayrimenkul Yatirim Ortakligi AG  29,627,929 
 6,223,640  Turkiye Garanti Bankasi Anonim Sirketi  15,177,037 
 15,747,168  Turkiye Vakiflar Bankasi Turk Anonim Ortakligi  23,234,630 
  

 

 

 
   82,572,842 
  

 

 

 
 United Kingdom – 0.99% 
 7,130,076  ITE Group Plc  14,382,538 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $1,209,331,869)

 $1,225,457,214 
  

 

 

 
 PREFERRED STOCKS – 10.66% 
 Brazil – 6.69% 
 1,524,489  Banco Bradesco SA  15,719,193 
 1,755,200  Companhia Brasileira de Distribuicao  33,796,542 
 709,810  Companhia Brasileira de Distribuicao Sponsored – Class A – ADR  13,628,352 
 857,150  Companhia Paranaense de Energia – COPEL B  8,876,510 
 2,760  Companhia Paranaense de Energia Sponsored – Class B – ADR  28,456 
Shares     Value 
 1,123,832  Petroleo Brasileiro Sponsored – ADR(a) $10,361,731 
 13,500  Telefonica Brasil SA  200,779 
 1,004,568  Telefonica Brasil SA Sponsored – ADR  14,917,835 
  

 

 

 
   97,529,398 
  

 

 

 
 Colombia – 0.37% 
 13,282,093  Grupo Aval Acciones y Valores SA  5,405,272 
  

 

 

 
 Russia – 1.52% 
 16,137,141  Surgutneftegas OJSC  9,230,235 
 2,304,816  Surgutneftegas OJSC Sponsored – ADR  12,906,970 
  

 

 

 
   22,137,205 
  

 

 

 
 South Korea – 2.08% 
 340,966  Hyundai Motor Co.  30,276,244 
  

 

 

 
 

TOTAL PREFERRED
STOCKS
(Cost $159,285,406)

 $155,348,119 
  

 

 

 
 PARTICIPATORY NOTES – 0.00% 
 Saudi Arabia – 0.00% 
 7,093  Banque Saudi Fransi (Acquired 03/28/17, Cost $45,064)(a)(b)(c)(d)  48,971 
  

 

 

 
 

TOTAL PARTICIPATORY
NOTES
(Cost $45,064)

 $48,971 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

72


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

 

   Principal
Amount
  Value 
REPURCHASE AGREEMENTS – 4.95%  

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $73,880,000 US Treasury Note, 1.875%, 03/31/22,
(Market Value 73,602,950)] (proceeds $72,159,088)

 $72,158,547  $72,158,547 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $72,158,547)

  $72,158,547 
  

 

 

 

Total Investments (Cost $1,440,820,886) – 99.73%

  $1,453,012,851 

Other Assets in Excess of Liabilities – 0.27%

   3,864,270 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $1,456,877,121 
  

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

GDR Global Depositary Receipt

NVDR Non-Voting Depositary Receipt

(a)Non-income producing security.
(b)The prices for these securities were derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. These securities represent $8,885,552 or 0.61% of the Fund’s net assets and are classified as Level 2 securities. See Note 2 in the Notes to Financial Statements.
(c)Securities were purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or were acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market value of these securities total $14,310,079 which represents 0.98% of the Fund’s net assets.
(d)Represents the underlying security of a participatory note with HSBC Bank Plc. Banque Saudi Fransi has a maturity date of March 24, 2020. See Note 2 in the Notes to Financial Statements.
(e)Affiliated issuer. See Note 8 in the Notes to Financial Statements.
(f)This security has limited liquidity and represents $8,836,581 or 0.61% of the Fund’s net assets and is classified as a Level 2 security. See Note 2 in the Notes to Financial Statements.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

73


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   2.68

Auto Components

   1.95

Automobiles

   3.18

Banks

   18.04

Construction Materials

   2.58

Consumer Finance

   0.98

Diversified Consumer Services

   2.51

Diversified Financial Services

   1.42

Diversified Telecommunication Services

   2.24

Electric Utilities

   3.82

Food Products

   1.96

Hotels, Restaurants & Leisure

   1.27

Household Durables

   0.19

IT Services

   1.99

Machinery

   0.22

Media

   0.99

Metals & Mining

   2.10

Multiline Retail

   1.79

Oil, Gas & Consumable Fuels

   4.60

Real Estate Investment Trusts

   8.70

Road & Rail

   0.33

Specialty Retail

   3.83

Technology Hardware, Storage & Peripherals

   2.27

Textiles, Apparel & Luxury Goods

   2.47

Tobacco

   2.50

Wireless Telecommunication Services

   9.51
  

 

 

 

TOTAL COMMON STOCKS

   84.12
  

 

 

 

PREFERRED STOCKS

  

Automobiles

   2.08

Banks

   1.45

Diversified Telecommunication Services

   1.04

Electric Utilities

   0.61

Food & Staples Retailing

   3.26

Oil, Gas & Consumable Fuels

   2.22
  

 

 

 

TOTAL PREFERRED STOCKS

   10.66
  

 

 

 

PARTICIPATORY NOTE

  

Banks

   0.00
  

 

 

 

TOTAL PARTICIPATORY NOTE

   0.00
  

 

 

 

REPURCHASE AGREEMENTS

   4.95
  

 

 

 

TOTAL INVESTMENTS

   99.73

Other Assets in Excess of Liabilities

   0.27
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

74


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

Shares     Value 
 COMMON STOCKS – 82.24% 
 Belgium – 1.47% 
 521,144  D’Ieteren SA $24,384,631 
  

 

 

 
 Brazil – 4.96% 
 1,468,720  Companhia Paranaense de Energia  12,080,604 
 9,060,600  Embraer SA  50,214,467 
 10,886,724  Marfrig Global Foods SA(a)  20,134,841 
  

 

 

 
   82,429,912 
  

 

 

 
 Canada – 5.09% 
 1,202,524  Cameco Corp.  13,311,941 
 1,302,257  Dorel Industries, Inc. –
Class B(a)
  31,061,843 
 16,404  E-L Financial Corp. Ltd.(a)  10,102,550 
 1,057,021  Norbord, Inc.  30,084,780 
  

 

 

 
   84,561,114 
  

 

 

 
 China – 1.49% 
 47,744,500  Sinotrans Shipping Ltd.  11,558,457 
 18,429,000  Weiqiao Textile Co. –
Class H(b)(d)
  13,232,172 
  

 

 

 
   24,790,629 
  

 

 

 
 France – 0.96% 
 191,944  Savencia SA  15,979,976 
  

 

 

 
 Germany – 0.74% 
 156,726  Draegerwerk AG & Co. KGaA  12,210,769 
  

 

 

 
 Greece – 1.87% 
 1,005,596  GR Sarantis SA  12,411,984 
 2,136,124  Grivalia Properties Real Estate Investment Co. SA  18,686,357 
  

 

 

 
   31,098,341 
  

 

 

 
 Hong Kong – 1.56% 
 14,961,750  APT Satellite Holdings Ltd.  8,000,180 
 10,889,500  Dickson Concepts International Ltd.  3,881,350 
Shares     Value 
 316,040,000  Emperor Watch & Jewellery Ltd.(a) $14,041,790 
  

 

 

 
   25,923,320 
  

 

 

 
 Hungary – 1.53% 
 15,336,018  Magyar Telekom Telecommunications Plc  25,435,559 
  

 

 

 
 India – 3.40% 
 2,988,135  NIIT Technologies Ltd.  20,048,562 
 4,164,040  Reliance Infrastructure Ltd.  36,472,276 
  

 

 

 
   56,520,838 
  

 

 

 
 Ireland – 2.92% 
 12,518,280  C&C Group Plc  48,543,758 
  

 

 

 
 Israel – 2.23% 
 7,952,280  Israel Discount Bank Ltd. – Class A(a)  18,676,539 
 1,748,885  Syneron Medical Ltd.(a)  18,450,737 
  

 

 

 
   37,127,276 
  

 

 

 
 Japan – 24.40% 
 273,300  Bank of Nagoya Ltd.  9,846,324 
 2,654,000  Denki Kogyo Co. Ltd.  13,424,842 
 561,400  Fuji Machine Manufacturing Co. Ltd.  7,379,271 
 1,765,800  Fuji Media Holdings, Inc.  24,470,122 
 1,632,700  Funai Electric Co. Ltd.  13,892,289 
 961,100  Futaba Corp.  17,038,081 
 4,588,700  Hachijuni Bank Ltd.  25,892,336 
 4,845,000  Hyakugo Bank Ltd.  19,344,233 
 1,119,700  Kato Sangyo Co. Ltd.  28,838,766 
 1,101,200  Kissei Pharmaceutical Co. Ltd.  28,930,313 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

75


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 2,145,600  Komori Corp. $27,592,689 
 419,000  Nippon Seiki Co. Ltd.  9,028,068 
 999,900  Noritsu Koki Co. Ltd.  8,073,423 
 311,700  NuFlare Technology, Inc.  18,974,526 
 2,037,000  Oita Bank Ltd.  7,960,768 
 1,653,700  Sanki Engineering Co. Ltd.  14,270,187 
 513,700  Sankyo Co. Ltd.  17,206,320 
 1,994,800  Sintokogio Ltd.  17,392,766 
 1,272,700  Tachi-S Co. Ltd.  25,385,323 
 605,300  Torii Pharmaceutical Co. Ltd.  15,666,292 
 638,300  Toyo Suisan Kaisha Ltd  23,813,264 
 1,908,400  TSI Holdings Co. Ltd.  13,765,044 
 283,700  Tsutsumi Jewelry Co. Ltd.  5,313,048 
 973,000  Wacoal Holdings Corp.  12,020,214 
  

 

 

 
   405,518,509 
  

 

 

 
 Mexico – 3.34% 
 43,348,757  Consorcio ARA SAB de CV  13,706,934 
 2,517,107  Desarrolladora Homex SAB de CV(a)  112,396 
 13,695,224  Fibra Uno Administracion SA de CV  23,415,141 
 13,203,697  Macquarie Mexico Real Estate Management SA de CV  14,810,059 
 12,714,355  Urbi Desarrollos Urbanos SA de CV(a)(e)  3,395,520 
  

 

 

 
   55,440,050 
  

 

 

 
 Philippines – 0.58% 
 6,701,510  First Philippine Holdings Corp.  9,589,804 
  

 

 

 
Shares     Value 
 Russia – 1.00% 
 42,262,804  Sistema JSFC $16,694,103 
  

 

 

 
 South Korea – 3.71% 
 243,745  Binggrae Co. Ltd.  14,930,280 
 2,983  Lotte Chilsung Beverage Co. Ltd.  3,774,298 
 133,938  Lotte Confectionery Co. Ltd.  23,039,783 
 208,685  Samchully Co. Ltd.(e)  19,967,178 
  

 

 

 
   61,711,539 
  

 

 

 
 Spain – 3.41% 
 10,932,902  Banco Popular Espanol SA(a)  10,601,654 
 1,418,942  Hispania Activos Inmobiliarios SOCIMI SA  20,360,137 
 2,333,732  Lar Espana Real Estate SOCIMI SA  17,975,149 
 687,144  Merlin Properties SOCIMI SA  7,676,876 
  

 

 

 
   56,613,816 
  

 

 

 
 United Kingdom – 17.58% 
 5,001,259  Balfour Beatty Plc  16,867,655 
 18,744,516  Countrywide Plc(e)  36,537,962 
 3,828,362  De La Rue Plc  29,546,714 
 40,881,841  Debenhams Plc  27,864,088 
 7,262,710  ITE Group Plc  14,650,082 
 10,390,076  J Sainsbury Plc  34,413,757 
 5,321,367  LSL Property Services Plc(e)  13,934,294 
 12,427,717  Mitie Group Plc  34,551,280 
 19,714,556  Premier Foods Plc(a)  10,868,139 
 14,481,089  Spirent Communications Plc  21,635,906 
 17,015,273  Wm Morrison Supermarkets Plc  51,203,618 
  

 

 

 
   292,073,495 
  

 

 

 
 

TOTAL COMMON STOCKS
(Cost $1,297,309,456)

 $1,366,647,439 
  

 

 

 
 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

76


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

Shares     Value 
 PREFERRED STOCKS – 3.10% 
 Brazil – 1.15% 
 1,845,600  Companhia Paranaense de Energia – COPEL B $19,112,742 
  

 

 

 
 Germany – 1.95% 
 315,507  Draegerwerk AG & Co. KGaA  32,421,396 
  

 

 

 
 

TOTAL PREFERRED
STOCKS
(Cost $36,819,152)

 $51,534,138 
  

 

 

 
 
   Principal
Amount
  Value 
CORPORATE BONDS & NOTES – 0.12% 
Mexico – 0.12% 

Desarrolladora Homex SA de CV Promissory Note
4.000%, 10/23/2022 (Acquired 10/23/15 through 03/16/17, Cost $4,961,200)(b)(c)(d)

 $1,057,347  $1,996,671 

Urbi Desarrollos Urbanos SA de CV
8.500%, 4/19/2016(a)(d)(f)

  8,014,000   20,035 
  

 

 

 

TOTAL CORPORATE BONDS & NOTES
(Cost $6,966,122)

  $2,016,706 
  

 

 

 
REPURCHASE AGREEMENTS – 13.72% 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $25,000,000 US Treasury Bond, 6.250%, 08/15/23,
(Market Value $31,301,325)], (proceeds 30,687,804)

 $30,687,573  $30,687,573 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $37,615,000 US Treasury Note, 1.375%, 08/31/23,
(Market Value $35,804,364)], (proceeds 35,102,581)

  35,102,318   35,102,318 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $166,160,000 US Treasury Note, 1.875%, 03/31/22,
(Market Value $165,536,900)], (proceeds $162,289,114)

  162,287,897   162,287,897 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $228,077,788)

  $228,077,788 
  

 

 

 

Total Investments (Cost $1,569,172,518) – 99.18%

  $1,648,276,071 

Other Assets in Excess of Liabilities – 0.82%

   13,602,463 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $1,661,878,534 
  

 

 

 

 

Percentages are stated as a percent of net assets.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

77


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

 

(a)Non-income producing security.
(b)The prices for these securities were derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. These securities represent $15,228,843 or 0.92% of the Fund’s net assets and are classified as Level 2 securities. See Note 2 in the Notes to Financial Statements.
(c)Security was purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or were acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market value of this security totals $1,996,671 which represents 0.12% of the Fund’s net assets.
(d)These securities have limited liquidity and represent $15,248,878 or 0.92% of the Fund’s net assets and are classified as Level 2 securities. See Note 2 in the Notes to Financial Statements.
(e)Affiliated issuer. See Note 8 in the Notes to Financial Statements.
(f)In default.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

78


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2017 (Unaudited)

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   3.02

Auto Components

   2.07

Banks

   5.56

Beverages

   3.15

Commercial Services & Supplies

   3.86

Communications Equipment

   2.11

Construction & Engineering

   1.87

Distributors

   1.47

Diversified Telecommunication Services

   2.01

Electric Utilities

   3.50

Electrical Equipment

   1.03

Food & Staples Retailing

   6.89

Food Products

   6.54

Gas Utilities

   1.20

Health Care Equipment & Supplies

   1.84

Household Durables

   3.74

Insurance

   0.61

Leisure Products

   1.04

Machinery

   3.15

Marine

   0.70

Media

   2.35

Multiline Retail

   1.68

Oil, Gas & Consumable Fuels

   0.80

Paper & Forest Products

   1.81

Personal Products

   0.75

Pharmaceuticals

   2.68

Real Estate Investment Trusts

   6.19

Real Estate Management & Development

   3.04

Semiconductors & Semiconductor Equipment

   1.14

Software

   1.21

Specialty Retail

   1.08

Technology Hardware, Storage & Peripherals

   0.49

Textiles, Apparel & Luxury Goods

   2.67

Wireless Telecommunication Services

   0.99
  

 

 

 

TOTAL COMMON STOCKS

   82.24
  

 

 

 

PREFERRED STOCKS

  

Electric Utilities

   1.15

Health Care Equipment & Supplies

   1.95
  

 

 

 

TOTAL PREFERRED STOCKS

   3.10
  

 

 

 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

79


Brandes International Small Cap Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2017 (Unaudited) (continued)

 

 

 

CORPORATE BONDS & NOTES

  

Household Durables

   0.12
  

 

 

 

TOTAL CORPORATE BONDS & NOTES

   0.12
  

 

 

 

REPURCHASE AGREEMENTS

   13.72
  

 

 

 

TOTAL INVESTMENTS

   99.18

Other Assets in Excess of Liabilities

   0.82
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

80


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

   Principal
Amount
  Value 
FEDERAL AND FEDERALLY SPONSORED CREDITS – 4.36% 
Federal Home Loan Mortgage Corporation – 2.42% 

Pool G1-8578, 3.000%, 12/1/2030

 $2,148,869  $2,205,968 

Pool A9-3505, 4.500%, 8/1/2040

  168,499   181,467 

Pool G0-6018, 6.500%, 4/1/2039

  37,960   44,310 
  

 

 

 
   2,431,745 
  

 

 

 
Federal National Mortgage Association – 1.94% 

Pool AS6201, 3.500%, 11/1/2045

  1,450,893   1,484,975 

Pool MA0918, 4.000%, 12/1/2041

  372,504   392,187 

Pool 254631, 5.000%, 2/1/2018

  19,088   19,617 

Pool 934124, 5.500%, 7/1/2038

  51,487   57,426 
  

 

 

 
   1,954,205 
  

 

 

 

TOTAL FEDERAL AND FEDERALLY SPONSORED CREDITS (Cost $4,393,430)

  $4,385,950 
  

 

 

 
OTHER MORTGAGE RELATED SECURITIES – 0.11% 
Collateralized Mortgage Obligations – 0.00% 

Wells Fargo Mortgage Backed Securities 2006-AR14 Trust
Series 2006-AR14, 3.066%, 10/25/2036(c)

 $2,103  $1,961 
  

 

 

 
Near Prime Mortgage – 0.11% 

Bear Stearns ALT-A Trust 2004-11
Series 2004-11, 1.662%, 11/25/2034(c)

  115,556   112,997 
  

 

 

 

TOTAL OTHER MORTGAGE RELATED SECURITIES
(Cost $110,054)

  $114,958 
  

 

 

 
US GOVERNMENTS – 55.57% 
Sovereign – 55.57% 

United States Treasury Bond
4.750%, 2/15/2037

 $1,925,000  $2,513,403 

United States Treasury Note

  

2.000%, 11/15/2021

  13,811,000   13,874,655 

2.000%, 2/15/2023

  15,390,000   15,310,649 

2.375%, 8/15/2024

  24,055,000   24,247,632 
  

 

 

 

TOTAL US GOVERNMENTS
(Cost $56,718,999)

  $55,946,339 
  

 

 

 
ASSET BACKED SECURITIES – 1.94% 
Equipment – 0.03% 

Continental Airlines 2007-1 Class A Pass Through Trust
Series 2007-1, 5.983%, 4/19/2022

 $30,178  $33,196 
  

 

 

 
Student Loan – 1.91% 

SLM Private Credit Student Loan Trust 2004-B
Series 2004-B, 1.561%, 9/15/2033

  300,000   271,690 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

81


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 

SLM Private Credit Student Loan Trust 2005-A
Series 2005-A, 1.441%, 12/15/2038

 $400,000  $366,220 

SLM Private Credit Student Loan Trust 2006-A
Series 2006-A, 1.421%, 6/15/2039

  1,025,000   962,885 

SLM Private Credit Student Loan Trust 2007-A
Series 2007-A, 1.371%, 12/16/2041

  350,000   318,145 
  

 

 

 
   1,918,940 
  

 

 

 

TOTAL ASSET BACKED SECURITIES
(Cost $1,865,298)

  $1,952,136 
  

 

 

 
CORPORATE BONDS – 34.34% 
Banks & Thrifts – 8.44% 

Bank of America Corp.
6.875%, 11/15/2018

 $1,475,000  $1,588,301 

Citigroup, Inc.
6.125%, 11/21/2017

  885,000   910,111 

Fifth Third Bancorp
8.250%, 3/1/2038

  175,000   249,294 

Goldman Sachs Group, Inc.
7.500%, 2/15/2019

  1,025,000   1,124,897 

JPMorgan Chase & Co.
7.900%, Perpetual

  2,085,000   2,160,581 

USB Capital IX
3.500%, Perpetual

  750,000   637,500 

Wells Fargo & Co.
1.400%, 9/8/2017

  625,000   624,686 

7.980%, Perpetual

  1,150,000   1,201,750 
  

 

 

 
   8,497,120 
  

 

 

 
Commercial Services & Supplies – 1.44% 

ADT Corp.
3.500%, 7/15/2022

  1,510,000   1,445,825 
  

 

 

 
Diversified Telecommunication Services – 0.37% 

Frontier Communications Corp.
6.250%, 9/15/2021

  400,000   372,000 
  

 

 

 
Electric Utilities – 3.32% 

Arizona Public Service Co.
8.750%, 3/1/2019

  340,000   383,110 

Commonwealth Edison Co.
5.900%, 3/15/2036

  175,000   215,520 

FirstEnergy Corp.
7.375%, 11/15/2031

  1,465,000   1,909,400 

Israel Electric Corp. Ltd.
7.250%, 1/15/2019 (Acquired 11/26/12 through 09/04/13, Cost $430,692)(b)

  420,000   454,633 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

82


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 

Oncor Electric Delivery Co., LLC
7.000%, 9/1/2022

 $315,000  $380,002 
  

 

 

 
   3,342,665 
  

 

 

 
Energy Equipment & Services – 1.01% 

Transocean, Inc.
4.250%, 10/15/2017

  1,010,000   1,015,050 
  

 

 

 
Food, Beverage & Tobacco – 0.99% 

Tesco Plc

5.500%, 11/15/2017 (Acquired 03/12/15 through 02/24/16, Cost $995,726)(b)

  980,000   998,558 
  

 

 

 
Forest Products & Paper – 1.38% 

Sappi Papier Holding GmbH
7.750%, 7/15/2017 (Acquired 05/23/16 through 11/02/16, Cost $1,405,162)(b)

  1,390,000   1,392,919 
  

 

 

 
Health Care Providers & Services – 1.52% 

Tenet Healthcare Corp.
8.000%, 8/1/2020

  1,505,000   1,529,456 
  

 

 

 
Homebuilders – 0.88% 

PulteGroup, Inc.
5.500%, 3/1/2026

  370,000   382,950 

Toll Brothers Finance Corp.
4.875%, 11/15/2025

  495,000   498,713 

Urbi Desarrollos Urbanos SAB de CV
9.500%, 1/21/2020 (Acquired 04/17/13 through 02/17/15,
Cost $292,050)(a)(b)(c)(d)

  1,640,000   4,100 
  

 

 

 
   885,763 
  

 

 

 
Independent Power and Renewable Electricity Producers – 0.26% 

Talen Energy Supply, LLC
6.500%, 5/1/2018

  255,000   263,287 
  

 

 

 
Insurance – 2.29% 

American International Group, Inc.
6.400%, 12/15/2020

  800,000   905,480 

CNA Financial Corp.

  

7.350%, 11/15/2019

  785,000   885,404 

5.875%, 8/15/2020

  135,000   149,754 

Voya Financial, Inc.
5.500%, 7/15/2022

  335,000   369,203 
  

 

 

 
   2,309,841 
  

 

 

 
Metals & Mining – 1.76% 

Cloud Peak Energy Resources, LLC / Cloud Peak Energy Finance Corp. 12.000%, 11/1/2021

  1,030,000   1,109,825 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

83


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 

Royal Gold, Inc.
2.875%, 6/15/2019

 $625,000  $660,156 
  

 

 

 
   1,769,981 
  

 

 

 
Oil, Gas & Consumable Fuels – 7.10% 

BP Capital Markets Plc

  

2.241%, 9/26/2018

  1,115,000   1,122,855 

3.506%, 3/17/2025

  810,000   815,009 

Chesapeake Energy Corp.
6.125%, 2/15/2021

  1,925,000   1,867,250 

Exxon Mobil Corp.
2.397%, 3/6/2022

  745,000   745,136 

Kinder Morgan, Inc.

  

7.000%, 6/15/2017

  195,000   197,090 

4.300%, 6/1/2025

  904,000   923,534 

Occidental Petroleum Corp.
3.500%, 6/15/2025

  405,000   408,987 

Range Resources Corp.
5.000%, 3/15/2023 (Acquired 08/06/15 through 02/17/17,
Cost $863,237)(b)

  890,000   876,650 

Valero Energy Corp.
9.375%, 3/15/2019

  170,000   193,292 
  

 

 

 
   7,149,803 
  

 

 

 
Telecommunications – 3.58% 

AT&T, Inc.
3.000%, 6/30/2022

  1,480,000   1,472,297 

Sprint Communications, Inc.
9.000%, 11/15/2018 (Acquired 11/24/15 through 10/24/16, Cost $1,253,863)(b)

  1,175,000   1,279,281 

Telecom Italia Capital SA
6.999%, 6/4/2018

  85,000   89,356 

Telefonica Emisiones SAU

  

6.221%, 7/3/2017

  610,000   616,710 

5.462%, 2/16/2021

  135,000   148,193 
  

 

 

 
   3,605,837 
  

 

 

 

TOTAL CORPORATE BONDS
(Cost $33,451,457)

  $34,578,105 
  

 

 

 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

84


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 
REPURCHASE AGREEMENTS – 2.58% 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17 0.09% [Collateralized
by $2,790,000 US Treasury Note, 1.375%, 08/31/23,
(Market Value $2,655,701)] (proceeds $2,601,812)

 $2,601,793  $2,601,793 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $2,601,793)

  $2,601,793 
  

 

 

 

Total Investments (Cost $99,141,031) – 98.90%

  $99,579,281 

Other Assets in Excess of Liabilities – 1.10%

   1,105,347 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $100,684,628 
  

 

 

 

 

Percentages are stated as a percent of net assets.

 

(a)Non-income producing security.
(b)Securities were purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or were acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market values of these securities total $5,006,141 which represents 4.97% of the Fund’s net assets.
(c)These securities have limited liquidity and represent $119,058 or 0.12% of the Fund’s net assets and are classified as Level 2 securities. See Note 2 in the Notes to Financial Statements.
(d)In default.

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

85


Brandes Credit Focus Yield Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited)

 

 

 

   Principal
Amount
  Value 
US GOVERNMENTS – 35.59% 
Sovereign – 35.59% 

United States Treasury Note

  

3.375%, 11/15/2019

 $3,380,000  $3,551,244 

2.000%, 11/15/2021

  2,815,000   2,827,974 

2.000%, 2/15/2023

  1,655,000   1,646,467 

2.375%, 8/15/2024

  3,100,000   3,124,825 
  

 

 

 

TOTAL US GOVERNMENTS
(Cost $11,196,528)

  $11,150,510 
  

 

 

 
ASSET BACKED SECURITIES – 2.65% 
Equipment – 0.27% 

Continental Airlines 2007-1 Class A Pass Through Trust
Series 2007-1, 5.983%, 4/19/2022

 $75,445  $82,990 
  

 

 

 
Student Loan – 2.38% 

SLM Private Credit Student Loan Trust 2006-A
Series 2006-A, 1.421%, 6/15/2039

  505,000   474,397 

SLM Private Credit Student Loan Trust 2007-A
Series 2007-A, 1.371%, 12/16/2041

  300,000   272,695 
  

 

 

 
   747,092 
  

 

 

 

TOTAL ASSET BACKED SECURITIES
(Cost $764,125)

  $830,082 
  

 

 

 
CORPORATE BONDS – 59.23% 
Banks & Thrifts – 13.50% 

Bank of America Corp.
6.875%, 11/15/2018

 $700,000  $753,770 

Citigroup, Inc.
6.125%, 11/21/2017

  500,000   514,187 

Fifth Third Bancorp
8.250%, 3/1/2038

  65,000   92,595 

Goldman Sachs Group, Inc.
7.500%, 2/15/2019

  490,000   537,755 

JPMorgan Chase & Co.
7.900%, Perpetual

  1,140,000   1,181,325 

USB Capital IX
3.500%, Perpetual

  350,000   297,500 

Wells Fargo & Co.
1.400%, 9/8/2017

  350,000   349,824 

7.980%, Perpetual

  480,000   501,600 
  

 

 

 
   4,228,556 
  

 

 

 
Commercial Services & Supplies – 2.28% 

ADT Corp.
3.500%, 7/15/2022

  745,000   713,337 
  

 

 

 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

86


Brandes Credit Focus Yield Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 
Computers & Peripherals – 2.35% 

Apple, Inc.
2.400%, 5/3/2023

 $750,000  $737,461 
  

 

 

 
Diversified Financial Services – 1.25% 

Voya Financial, Inc.
5.500%, 7/15/2022

  355,000   391,245 
  

 

 

 
Diversified Telecommunication Services – 0.53% 

Frontier Communications Corp.
6.250%, 9/15/2021

  180,000   167,400 
  

 

 

 
Electric Utilities – 5.35% 

Arizona Public Service Co.
8.750%, 3/1/2019

  435,000   490,156 

FirstEnergy Corp.
7.375%, 11/15/2031

  380,000   495,271 

Israel Electric Corp. Ltd.
7.250%, 1/15/2019 (Acquired 11/26/12 through 09/04/13, Cost $517,790)(b)

  505,000   546,642 

Oncor Electric Delivery Co., LLC
7.000%, 9/1/2022

  120,000   144,763 
  

 

 

 
   1,676,832 
  

 

 

 
Energy Equipment & Services – 1.54% 

Transocean, Inc.
4.250%, 10/15/2017

  480,000   482,400 
  

 

 

 
Food, Beverage & Tobacco – 1.81% 

Tesco Plc
5.500%, 11/15/2017 (Acquired 03/12/15 through 02/24/16, Cost $563,954)(b)

  555,000   565,510 
  

 

 

 
Forest Products & Paper – 2.11% 

Sappi Papier Holding GmbH
7.750%, 7/15/2017 (Acquired 06/16/16 through 11/02/16, Cost $667,303)(b)

  660,000   661,386 
  

 

 

 
Health Care Providers & Services – 2.29% 

Tenet Healthcare Corp.
8.000%, 8/1/2020

  705,000   716,456 
  

 

 

 
Homebuilders – 1.41% 

PulteGroup, Inc.
5.500%, 3/1/2026

  205,000   212,175 

Toll Brothers Finance Corp.
4.875%, 11/15/2025

  225,000   226,687 

Urbi Desarrollos Urbanos SAB de CV
9.500%, 1/21/2020 (Acquired 04/17/13 through 02/17/15, Cost $259,625)(a)(b)(c)(d)

  1,225,000   3,063 
  

 

 

 
   441,925 
  

 

 

 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

87


Brandes Credit Focus Yield Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 
Independent Power & Renewable Electricity Producers – 0.73% 

Talen Energy Supply, LLC
6.500%, 5/1/2018

 $220,000  $227,150 
  

 

 

 
Insurance – 3.03% 

American International Group, Inc.
6.400%, 12/15/2020

  485,000   548,947 

CNA Financial Corp.
7.350%, 11/15/2019

  125,000   140,988 

5.875%, 8/15/2020

  235,000   260,684 
  

 

 

 
   950,619 
  

 

 

 
Metals & Mining – 2.85% 

Cloud Peak Energy Resources, LLC / Cloud Peak Energy Finance Corp.
12.000%, 11/1/2021

  470,000   506,425 

Royal Gold, Inc.
2.875%, 6/15/2019

  365,000   385,531 
  

 

 

 
   891,956 
  

 

 

 
Oil, Gas & Consumable Fuels – 12.25% 

BP Capital Markets Plc
2.241%, 9/26/2018

  475,000   478,346 

3.506%, 3/17/2025

  445,000   447,752 

Chesapeake Energy Corp.
6.125%, 2/15/2021

  1,010,000   979,700 

Exxon Mobil Corp.
2.397%, 3/6/2022

  435,000   435,079 

Kinder Morgan, Inc.
7.000%, 6/15/2017

  270,000   272,894 

4.300%, 6/1/2025

  353,000   360,628 

Occidental Petroleum Corp.
3.500%, 6/15/2025

  220,000   222,166 

Range Resources Corp.
5.000%, 3/15/2023 (Acquired 08/06/15 through 02/27/17, Cost $400,922)(b)

  415,000   408,775 

Valero Energy Corp.
9.375%, 3/15/2019

  205,000   233,088 
  

 

 

 
   3,838,428 
  

 

 

 
Telecommunications – 5.95% 

AT&T, Inc.
3.000%, 6/30/2022

  710,000   706,305 

Sprint Communications, Inc.
9.000%, 11/15/2018 (Acquired 11/24/15 through 10/24/16, Cost $568,794)(b)

  535,000   582,481 

Telecom Italia Capital SA
6.999%, 6/4/2018

  140,000   147,175 

 

The accompanying notes are an integral part of these Schedules of Investments.

 

88


Brandes Credit Focus Yield Fund

SCHEDULE OF INVESTMENTS — March 31, 2017 (Unaudited) (continued)

 

 

 

   Principal
Amount
  Value 

Telefonica Emisiones SAU
6.221%, 7/3/2017

 $335,000  $338,685 

5.462%, 2/16/2021

  80,000   87,818 
  

 

 

 
   1,862,464 
  

 

 

 

TOTAL CORPORATE BONDS
(Cost $18,279,896)

  $18,553,125 
  

 

 

 
REPURCHASE AGREEMENTS – 1.50% 

State Street Bank and Trust Repurchase Agreement,
(Dated 03/31/17), due 04/03/17, 0.09% [Collateralized
by $505,000 US Treasury Note, 1.375% 08/31/23,
(Market Value $480,691)] (proceeds $470,885)

 $470,881  $470,881 
  

 

 

 

TOTAL REPURCHASE AGREEMENTS
(Cost $470,881)

  $470,881 
  

 

 

 

Total Investments (Cost $30,711,430) – 98.97%

  $31,004,598 

Other Assets in Excess of Liabilities – 1.03%

   323,179 
  

 

 

 

TOTAL NET ASSETS – 100.00%

  $31,327,777 
  

 

 

 

 

Percentages are stated as a percent of net assets.

 

(a)Non-income producing security.
(b)Securities were purchased exempt from registration in the U.S. pursuant to Rule 144A of the Securities Act of 1933 (the “Act”) or were acquired in a private placement, and, unless registered under the Act, may only be sold to “qualified institutional buyers” (as defined in the Act) or pursuant to another exemption from registration. The market values of these securities total $2,767,857 which represents 8.84% of the Fund’s net assets.
(c)This security has limited liquidity and represents $3,063 or 0.01% of the Fund’s net assets and is classified as a Level 2 security. See Note 2 in the Notes to Financial Statements.
(d)In default.

The industry classifications represented in the Schedule of Investments are in accordance with Global Industry Classification Standards (GICS®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC. This information is unaudited.

 

The accompanying notes are an integral part of these Schedules of Investments.

 

89


Brandes Investment Trust

STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2017 (Unaudited)

 

 

 

       
Brandes
International
Equity Fund
     Brandes
Global
Equity Fund
 

ASSETS

      

Investment in securities, at value(1)

      

Unaffiliated issuers

  $509,262,038     $67,158,734 

Affiliated issuers

          

Cash

          

Restricted Cash

          

Foreign Currency(1)

   250,627      16,575 

Receivables:

      

Securities sold

          

Fund shares sold

   1,107,799      18,445 

Dividends and interest

   2,323,738      240,216 

Foreign currency spot trade

          

Tax reclaims

   317,113      20,165 

Due from Advisor

          

Prepaid expenses and other assets

   50,400      35,778 
  

 

 

     

 

 

 

Total Assets

   513,311,715      67,489,913 
  

 

 

     

 

 

 

LIABILITIES

      

Payables:

      

Securities purchased

   3,158,167       

Fund shares redeemed

   1,147,531      87,114 

Due to Advisor

   345,406      31,651 

12b-1 Fee

   12,872      2,855 

Trustee Fees

   16,932      2,900 

Dividends payable

   141,184      1,006 

Foreign tax witholding

   252,196      22,468 

Foreign currency spot trade payable

   2,806       

Accrued expenses

   180,900      76,966 
  

 

 

     

 

 

 

Total Liabilities

   5,257,994      224,960 
  

 

 

     

 

 

 

NET ASSETS

  $508,053,721     $67,264,953 
  

 

 

     

 

 

 

COMPONENTS OF NET ASSETS

      

Paid-in capital

  $625,649,313     $61,770,785 

Undistributed net investment income (loss)

   (3,836,382     (235,808

Accumulated net realized gain (loss) on investments and foreign currency

   (51,262,965     (284,527

Net unrealized appreciation (depreciation) on:

      

Investments

   (62,510,574     6,010,964 

Foreign currency

   14,329      3,539 
  

 

 

     

 

 

 

Total Net Assets

  $508,053,721     $67,264,953 
  

 

 

     

 

 

 

Net asset value, offering price and redemption proceeds per share

      

Class A Shares

      

Net Assets

  $22,369,451     $7,603,862 

Shares outstanding (unlimited shares authorized without par value)

   1,354,316      329,520 

Offering and redemption price

  $16.52     $23.08 
  

 

 

     

 

 

 

Maximum offering price per share*

  $17.52     $24.48 
  

 

 

     

 

 

 

Class C Shares

      

Net Assets

  $13,816,588     $1,889,120 

Shares outstanding (unlimited shares authorized without par value)

   844,679      82,332 

Offering and redemption price

  $16.36     $22.95 
  

 

 

     

 

 

 

Class I Shares

      

Net Assets

  $439,842,777     $57,771,971 

Shares outstanding (unlimited shares authorized without par value)

   26,571,055      2,488,144 

Offering and redemption price

  $16.55     $23.22 
  

 

 

     

 

 

 

Class R6 Shares

      

Net Assets

  $32,024,905      N/A 

Shares outstanding (unlimited shares authorized without par value)

   1,930,791      N/A 

Offering and redemption price

  $16.59      N/A 
  

 

 

     

 

 

 

(1)  Cost of:

      

Investments in securities

      

Unaffiliated issuers

  $571,772,612     $61,147,770 

Affiliated issuers

          

Foreign currency

   250,271      16,629 

 

*Includes a sales load of 5.75% for the International, Global, Global Equity Income, Global Opportunities Value, Emerging Markets Value, and International Small Cap Funds and 3.75% for the Core Plus Fixed Income and Credit Focus Yield Funds. (See Note 7 of the Notes to Financial Statements)

 

The accompanying notes to financial statements are an integral part of this statement.

 

90


Brandes Investment Trust

STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2017 (Unaudited) (continued)

 

 

 

Brandes
Global Equity
Income Fund

  Brandes
Global
Opportunities
Value Fund
  Brandes
Emerging
Markets
Value Fund
  Brandes
International
Small Cap
Equity Fund
  Brandes
Core Plus Fixed
Income Fund
  Brandes
Credit Focus
Yield Fund
 
     
     
$939,642  $23,390,716  $1,450,277,483  $1,574,441,117  $99,579,281  $31,004,598 
       2,735,368   73,834,954       
 48,203                
          1,857,541       
 137   1,379   160,420   17,147,454       
     
    61,849   3,688,989   3,130,536       
    84,713   2,728,934   4,241,236   489,487    
 4,030   89,285   4,912,987   6,639,032   760,492   348,309 
    6,008   840,242   1,847,913       
 240   6,735   249,816   405,173       
 12,016                
 5,105   34,003   102,946   81,986   36,587   24,852 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 1,009,373   23,674,688   1,465,697,185   1,683,626,942   100,865,847   31,377,759 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
     
    99,723   3,815,929   15,248,274       
    994   2,595,024   3,872,146   85,087   107 
    4,172   1,090,987   1,318,809   16,043   256 
 10   620   86,743   51,043   443   639 
 3,146   2,868   42,281   43,533   5,513   2,400 
 116   412      227,529   2,331   2,894 
 290   8,843   802,059   690,290       
                 
 35,910   41,882   387,041   296,784   71,802   43,686 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 39,472   159,514   8,820,064   21,748,408   181,219   49,982 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
$969,901  $23,515,174  $1,456,877,121  $1,661,878,534  $100,684,628  $31,327,777 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
$878,837  $22,503,771  $1,634,649,699  $1,577,617,457  $100,408,281  $30,811,932 
 (20  (28,446  (7,691,421  (28,321,141  (14,690  (7,292
 9,941   (395,912  (182,521,040  33,462,014   (147,213  229,969 
     
 81,087   1,434,595   12,191,965   79,103,553   438,250   293,168 
 56   1,166   247,918   16,651       

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
$969,901  $23,515,174  $1,456,877,121  $1,661,878,534  $100,684,628  $31,327,777 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
     
$119  $2,654,854  $347,924,095  $174,312,821  $1,663,752  $2,362,027 
 10   238,889   40,374,429   12,562,099   182,092   231,625 
$11.57  $11.11  $8.62  $13.88  $9.14  $10.20 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
$12.27  $11.79  $9.14  $14.72  $9.49  $10.59 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
$11,913  $102,538  $24,134,216  $24,425,928   N/A   N/A 
 1,060   9,265   2,823,524   1,792,489       
$11.23  $11.07  $8.55  $13.63   N/A   N/A 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
$957,869  $20,757,782  $1,012,314,886  $1,404,851,459  $99,020,876  $28,965,750 
 85,542   1,870,755   116,956,714   100,926,874   10,775,666   2,840,922 
$11.20  $11.10  $8.66  $13.92  $9.19  $10.20 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
 N/A   N/A  $72,503,924  $58,288,326   N/A   N/A 
 N/A   N/A   8,364,195   4,185,734   N/A   N/A 
 N/A   N/A  $8.67  $13.93   N/A   N/A 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
     
$858,555  $21,956,121  $1,428,618,721  $1,455,593,971  $99,141,031  $30,711,430 
       12,202,165   113,578,547       
 139   7,194   163,271   19,024,682       

 

The accompanying notes to financial statements are an integral part of this statement.

 

91


Brandes Investment Trust

STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2017 (Unaudited)

 

 

 

   Brandes
International
Equity Fund
     Brandes
Global
Equity Fund
 

INVESTMENT INCOME

      

Income

      

Dividend income

      

Unaffiliated issuers

  $5,329,761     $659,807 

Affiliated issuers

          

Less: foreign taxes withheld

   (444,516     (36,417

Interest income

   2,602      37,414 

Less: Foreign taxes withheld

          

Income from securities lending

   57,284      1,877 

Miscellaneous Income

          
  

 

 

     

 

 

 

Total Income

   4,945,131      662,681 
  

 

 

     

 

 

 

Expenses

      

Advisory fees (Note 3)

   2,177,747      245,729 

Custody fees

   27,273      3,182 

Administration fees (Note 3)

   60,425      7,100 

Insurance expense

   9,899      790 

Legal fees

   10,652      2,041 

Printing fees

   18,588      2,998 

Miscellaneous

   19,410      2,367 

Registration expense

   47,253      28,542 

Trustee fees

   27,528      4,536 

Transfer agent fees

   70,346      31,872 

12b-1 Fees – Class A

   20,139      8,324 

12b-1 Fees – Class C

   48,568      7,369 

Shareholder Service Fees – Class C

   16,189      2,457 

Shareholder Service Fees – Class E*

   225       

Sub-Transfer Agency Fees – Class I

   122,774      13,197 

Accounting fees

   37,686      31,676 

Auditing fees

   20,106      19,209 

Proxy expense

   49,384      4,138 
  

 

 

     

 

 

 

Total expenses

   2,784,192      415,527 

Expense recoupment (reimbursement / waiver)

   (13,705     (86,054
  

 

 

     

 

 

 

Total expenses net of recoupment / reimbursement / waiver

   2,770,487      329,473 
  

 

 

     

 

 

 

Net investment income

   2,174,644      333,208 
  

 

 

     

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

      

Net realized gain (loss) on:

      

Unaffiliated investments

   3,791,366      225,845 

Redemption in-kind

   9,879,819       

Foreign currency transactions

   (493,145     (5,135
  

 

 

     

 

 

 

Net realized gain (loss)

   13,178,040      220,710 
  

 

 

     

 

 

 

Net change in unrealized appreciation (depreciation) on:

      

Investments

   12,209,297      5,109,484 

Foreign currency transactions

   17,391      4,707 
  

 

 

     

 

 

 

Net unrealized appreciation (depreciation)

   12,226,688      5,114,191 
  

 

 

     

 

 

 

Net realized and unrealized gain (loss) on investments and foreign currency transactions

   25,404,728      5,334,901 
  

 

 

     

 

 

 

Net Increase (decrease) in net assets resulting from operations

  $27,579,372     $5,668,109 
  

 

 

     

 

 

 

 

*Class E shares were eliminated effective November 30, 2016 and are no longer offered for sale.

 

The accompanying notes to financial statements are an integral part of this statement.

 

92


Brandes Investment Trust

STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2017 (Unaudited) (continued)

 

 

 

Brandes
Global Equity
Income Fund

  Brandes
Global
Opportunities
Value Fund
  Brandes
Emerging
Markets
Value Fund
  Brandes
International
Small Cap
Equity Fund
  Brandes
Core Plus Fixed
Income Fund
  Brandes
Credit Focus
Yield Fund
 
     
     
     
$12,900  $131,735  $12,912,217  $18,823,129  $29,890  $18,837 
          849,035       
 (456  (10,323  (1,266,121  (1,720,291      
    9,549      120,153   1,376,257   534,353 
          (4,874      
          7,570       
       1,497    43,195   21,465 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 12,444   130,961   11,647,593   18,074,722   1,449,342   574,655 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
 3,573   60,967   5,889,120   7,076,060   169,955   77,592 
 731   1,560   221,684   90,213   6,184   2,361 
 633   1,737   133,336   165,436   11,471   3,821 
    94   17,066   17,847   1,275   486 
 1,121   1,216   22,401   26,175   2,858   1,589 
 1,179   1,082   57,809   51,128   4,544   1,722 
 1,273   1,275   113,972   23,865   2,548   1,362 
 4,817   21,746   59,740   48,831   22,934   17,513 
 275   842   61,776   73,022   4,153   2,963 
 22,567   22,847   219,607   119,334   26,116   15,914 
 7   2,557   391,019   182,702   2,554   2,912 
 42   351   82,291   77,398   N/A   N/A 
 14   117   27,431   25,799   N/A   N/A 
 N/A   N/A   N/A   N/A   124   N/A 
 219   2,674   218,653   320,234   23,744    
 26,803   29,274   40,613   43,371   29,167   23,110 
 16,459   17,551   19,402   19,544   19,655   18,960 
 44   585   147,917   144,069   8,990   1,401 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 79,757   166,475   7,723,837   8,505,028   336,272   171,706 
 (75,184  (89,038  (138,884  (9,552  (82,350  (74,282

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 4,573   77,437   7,584,953   8,495,476   253,922   97,424 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 7,871   53,524   4,062,640   9,579,246   1,195,420   477,231 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
     
 10,117   45,112   (20,286,267  44,410,695   (63,699  19,925 
                 
 (167  (14,907  (815,739  (915,359      

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 9,950   30,205   (21,102,006  43,495,336   (63,699  19,925 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
     
 56,251   1,172,278   139,571,143   60,100,234   (2,370,579  (423,059
 (12  724   252,454   212,644       

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 56,239   1,173,002   139,823,597   60,312,878   (2,370,579  (423,059

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
 
    
66,189

 
  1,203,207   118,721,591   103,808,214   (2,434,278  (403,134

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
$74,060  $1,256,731  $122,784,231  $113,387,460  $(1,238,858 $74,097 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

The accompanying notes to financial statements are an integral part of this statement.

 

93


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS

 

 

 

  Brandes International
Equity Fund
  Brandes Global
Equity Fund
 
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
 
  (Unaudited)     (Unaudited)    

INCREASE (DECREASE) IN NET ASSETS FROM:

    

OPERATIONS

    

Net investment income

 $2,174,644  $15,585,402  $333,208  $1,078,861 

Net realized gain (loss) on:

    

Investments

  13,671,185   (3,759,302  225,845   (224,516

Foreign currency transactions

  (493,145  (98,428  (5,135  (20,745

Net unrealized appreciation on:

 

   

Investments

  12,209,297   36,944,553   5,109,484   1,898,143 

Foreign currency transactions

  17,391   50,697   4,707   1,386 
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets resulting from operations

  27,579,372   48,722,922   5,668,109   2,733,129 
 

 

 

  

 

 

  

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

    

From net investment income

    

Class A

  (324,942  (326,735  (55,597  (83,326

Class C

  (228,741  (217,328  (6,978  (25,407

Class E

  N/A   (16,845  N/A   (1,382

Class I

  (7,997,807  (15,332,614  (452,016  (991,951

Class R6

  (486,156  (458,693  N/A   N/A 

From net realized gains

    

Class A

           (117,360

Class C

           (144,639

Class E

  N/A      N/A   (13,647

Class I

           (2,617,644

Class R6

        N/A   N/A 
 

 

 

  

 

 

  

 

 

  

 

 

 

Decrease in net assets from distributions

  (9,037,646  (16,352,215  (514,591  (3,995,356
 

 

 

  

 

 

  

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Proceeds from shares sold

  124,051,761   278,842,419   11,526,259   12,290,688 

Net asset value of shares issued on reinvestment of distributions

  8,448,623   15,725,407   511,381   3,952,436 

Cost of shares redeemed

  (115,722,899  (212,318,638  (3,860,581  (11,550,515

Cost of shares redeemed from Redemption in-kind (Note 10)

  (231,178,479         
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) in net assets from capital share transactions

  (214,400,994  82,249,188   8,177,059   4,692,609 
 

 

 

  

 

 

  

 

 

  

 

 

 

Total increase (decrease) in net assets

  (195,859,268  114,619,895   13,330,577   3,430,382 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

    

Beginning of the Period

  703,912,989   589,293,094   53,934,376   50,503,994 
 

 

 

  

 

 

  

 

 

  

 

 

 

End of the Period

 $508,053,721  $703,912,989  $67,264,953  $53,934,376 
 

 

 

  

 

 

  

 

 

  

 

 

 

Undistributed net investment income (loss)

 $(3,836,382 $3,026,620  $(235,808 $(54,425
 

 

 

  

 

 

  

 

 

  

 

 

 

 

The accompanying notes to financial statements are an integral part of this statement.

 

94


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

 

  Brandes Global Equity
Income Fund
  Brandes Global Opportunities
Value Fund
 
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
 
  (Unaudited)     (Unaudited)    

INCREASE (DECREASE) IN NET ASSETS FROM:

    

OPERATIONS

    

Net investment income

 $7,871  $20,269  $53,524  $120,380 

Net realized gain (loss) on:

    

Investments

  10,117   24,436   45,112   (399,349

Foreign currency transactions

  (167  (291  (14,907  (2,745

Net unrealized appreciation (depreciation) on:

    

Investments

  56,251   64,664   1,172,278   680,460 

Foreign currency transactions

  (12  153   724   536 
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets resulting from operations

  74,060   109,231   1,256,731   399,282 
 

 

 

  

 

 

  

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

    

From net investment income

    

Class A

  (19  (76  (13,472  (10,894

Class C

  (46  (122  (792  (463

Class I

  (7,826  (20,233  (69,785  (124,679

Class R6

  N/A   N/A   N/A   N/A 

From net realized gains

    

Class A

  (124  (2     (3,623

Class C

  (269  (2     (304

Class I

  (20,701  (12,640     (70,302

Class R6

  N/A   N/A   N/A   N/A 
 

 

 

  

 

 

  

 

 

  

 

 

 

Decrease in net assets from distributions

  (28,985  (33,075  (84,049  (210,265
 

 

 

  

 

 

  

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Proceeds from shares sold

  39,089   150,238   16,944,978   6,590,086 

Net asset value of shares issued on reinvestment of distributions

  28,163   31,963   82,432   149,850 

Cost of shares redeemed

  (5,444     (384,114  (4,571,439
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets from capital share transactions

  61,808   182,201   16,643,296   2,168,497 
 

 

 

  

 

 

  

 

 

  

 

 

 

Total increase in net assets

  106,883   258,357   17,815,978   2,357,514 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

    

Beginning of the Period

  863,018   604,661   5,699,196   3,341,682 
 

 

 

  

 

 

  

 

 

  

 

 

 

End of the Period

 $969,901  $863,018  $23,515,174  $5,699,196 
 

 

 

  

 

 

  

 

 

  

 

 

 

Undistributed net investment income (loss)

 $(20 $  $(28,446 $2,079 
 

 

 

  

 

 

  

 

 

  

 

 

 

 

The accompanying notes to financial statements are an integral part of this statement.

 

95


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

 

  Brandes Emerging Markets
Value Fund
  Brandes International
Small Cap Equity Fund
 
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
 
  (Unaudited)     (Unaudited)    

INCREASE (DECREASE) IN NET ASSETS FROM:

    

OPERATIONS

    

Net investment income

 $4,062,640  $19,655,749  $9,579,246  $10,157,426 

Net realized gain (loss) on:

    

Investments

  (20,286,267  (125,575,989  44,410,695   27,969,963 

Foreign currency transactions

  (815,739  (1,608,216  (915,359  (772,696

Net unrealized appreciation (depreciation) on:

    

Investments

  139,571,143   380,769,626   60,100,234   84,984,537 

Foreign currency transactions

  252,454   12,415   212,644   (182,673
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets resulting from operations

  122,784,231   273,253,585   113,387,460   122,156,557 
 

 

 

  

 

 

  

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

    

From net investment income

    

Class A

  (2,708,288  (3,653,585  (3,132,973  (1,623,052

Class C

  (144,547  (95,247  (376,041  (237,168

Class I

  (7,781,416  (10,871,960  (27,937,640  (18,992,579

Class R6

  (237,281     (936,034  (26,169

From net realized gains

    

Class A

        (2,808,067  (1,347,940

Class C

        (411,540  (268,103

Class I

        (25,524,016  (14,618,967

Class R6

        (794,405   
 

 

 

  

 

 

  

 

 

  

 

 

 

Decrease in net assets from distributions

  (10,871,532  (14,620,792  (61,920,716  (37,113,978
 

 

 

  

 

 

  

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Proceeds from shares sold

  366,705,707   465,356,191   395,619,725   620,532,710 

Net asset value of shares issued on reinvestment of distributions

  9,550,092   12,848,337   60,221,079   36,267,289 

Cost of shares redeemed

  (187,649,411  (619,619,751  (215,270,824  (343,843,528
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) in net assets from capital share transactions

  188,606,388   (141,415,223  240,569,980   312,956,471 
 

 

 

  

 

 

  

 

 

  

 

 

 

Total increase in net assets

  300,519,087   117,217,570   292,036,724   397,999,050 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

    

Beginning of the Period

  1,156,358,034   1,039,140,464   1,369,841,810   971,842,760 
 

 

 

  

 

 

  

 

 

  

 

 

 

End of the Period

 $1,456,877,121  $1,156,358,034  $1,661,878,534  $1,369,841,810 
 

 

 

  

 

 

  

 

 

  

 

 

 

Undistributed net investment loss

 $(7,691,421 $(882,529 $(28,321,141 $(5,517,699
 

 

 

  

 

 

  

 

 

  

 

 

 

 

The accompanying notes to financial statements are an integral part of this statement.

 

96


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

 

  Brandes Core Plus
Fixed Income Fund
  Brandes Credit
Focus Yield Fund
 
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
  Six Months
Ended
March 31,
2017
  Year Ended
September 30,
2016
 
  (Unaudited)     (Unaudited)    

INCREASE (DECREASE) IN NET ASSETS FROM:

    

OPERATIONS

    

Net investment income

 $1,195,420  $2,115,182  $477,231  $925,834 

Net realized gain (loss) on:

    

Investments

  (63,699  275,403   19,925   (76,678

Foreign currency transactions

            

Net unrealized appreciation (depreciation) on:

 

   

Investments

  (2,370,579  2,095,921   (423,059  1,053,459 

Foreign currency transactions

            
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase (decrease) in net assets resulting from operations

  (1,238,858  4,486,506   74,097   1,902,615 
 

 

 

  

 

 

  

 

 

  

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

    

From net investment income

    

Class A

  (23,696  (55,764  (33,126  (59,334

Class E

  (1,222  (15,343  N/A   N/A 

Class I

  (1,185,192  (2,076,681  (444,104  (866,362

Class R6

  N/A   N/A   N/A   N/A 

From net realized gains

    

Class A

  (5,530  (1,614  (3,593   

Class E

  N/A   (1,430  N/A   N/A 

Class I

  (253,423  (64,614  (44,344   

Class R6

  N/A   N/A   N/A   N/A 
 

 

 

  

 

 

  

 

 

  

 

 

 

Decrease in net assets from distributions

  (1,469,063  (2,215,446  (525,167  (925,696
 

 

 

  

 

 

  

 

 

  

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Proceeds from shares sold

  20,101,219   38,192,598   11,025   520,078 

Net asset value of shares issued on reinvestment of distributions

  1,446,467   2,175,810   505,899   894,878 

Cost of shares redeemed

  (17,697,785  (19,193,056  (86,090  (419,739
 

 

 

  

 

 

  

 

 

  

 

 

 

Net increase in net assets from capital share transactions

  3,849,901   21,175,352   430,834   995,217 
 

 

 

  

 

 

  

 

 

  

 

 

 

Total increase (decrease) in net assets

  1,141,980   23,446,412   (20,236  1,972,136 
 

 

 

  

 

 

  

 

 

  

 

 

 

NET ASSETS

    

Beginning of the Period

  99,542,648   76,096,236   31,348,013   29,375,877 
 

 

 

  

 

 

  

 

 

  

 

 

 

End of the Period

 $100,684,628  $99,542,648  $31,327,777  $31,348,013 
 

 

 

  

 

 

  

 

 

  

 

 

 

Undistributed net investment income (loss)

 $(14,690 $  $(7,292 $(7,293
 

 

 

  

 

 

  

 

 

  

 

 

 

 

The accompanying notes to financial statements are an integral part of this statement.

 

97


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

   Net asset
value,
beginning
of period
  Net
investment
income(5)
      
    
Net
realized and
unrealized
gain/(loss) on
investments
  Total from
investment
operations
  Dividends
from net
investment
income
 

Brandes International Equity Fund

     

Class A(8)

     

3/31/2017 (Unaudited)

 $15.70   0.05   1.08   1.13   (0.31

9/30/2016

 $14.90   0.35   0.81   1.16   (0.36

9/30/2015

 $16.58   0.35   (1.73  (1.38  (0.30

9/30/2014

 $16.03   0.33   0.56   0.89   (0.34

9/30/2013

 $13.50   0.34   3.02   3.36   (0.83

9/30/2012

 $13.00   0.38   0.76   1.14   (0.64

Class C

     

3/31/2017 (Unaudited)

 $15.58   (0.01  1.07   1.06   (0.28

9/30/2016

 $14.79   0.23   0.81   1.04   (0.25

9/30/2015

 $16.48   0.24   (1.73  (1.49  (0.20

9/30/2014

 $15.98   0.20   0.55   0.75   (0.25

1/31/2013(3) – 9/30/2013

 $14.30   0.15   1.84   1.99   (0.31

Class I

     

3/31/2017 (Unaudited)

 $15.72   0.07   1.08   1.15   (0.32

9/30/2016

 $14.92   0.38   0.81   1.19   (0.39

9/30/2015

 $16.60   0.35   (1.70  (1.35  (0.33

9/30/2014

 $16.05   0.36   0.56   0.92   (0.37

9/30/2013

 $13.50   0.35   3.04   3.39   (0.84

9/30/2012

 $12.99   0.41   0.76   1.17   (0.66

Class R6

     

3/31/2017 (Unaudited)

 $15.74   0.08   1.09   1.17   (0.32

2/1/2016(3) – 9/30/2016

 $14.41   0.27   1.39   1.66   (0.33

 

 

(1)Not annualized.
(2)Annualized.
(3)Commencement of operations.
(4)After fees waived and expenses absorbed or recouped by the Advisor, where applicable.
(5)Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(6)The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements).
(7)The total return figure is the since inception return for the class.
(8)Prior to January 31, 2013, Class A shares were known as Class S shares.
(9)Amount is less than $50,000.
(10)Includes proxy expenses not covered by the Trust’s expense limitation agreement.

 

The accompanying notes to financial statements are an integral part of this statement.

 

98


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

Net asset
value, end
of period
  Total
return(6)
  Net assets,
end of
period
(millions)
  Ratio of
net expenses
to average
net assets(4)
  Ratio of net
investment
income to
average
net assets(4)
  Ratio of
expenses (prior
to reimburse-
ments) to
average
net assets
  Ratio of net
investment
income (prior
to reimburse-
ments) to
average
net assets
  Portfolio
turnover
rate
 
       
       
$16.52   7.29%(1)  $22.4   1.20%(2)(10)   0.62%(2)   1.20%(2)(10)   0.62%(2)   14.31%(1) 
$15.70   7.90 $14.3   1.18  2.30  1.18  2.30  17.60
$14.90   (8.47)%  $13.1   1.18  2.08  1.18  2.08  27.50
$16.58   5.47 $9.0   1.19  1.92  1.18  1.93  39.53
$16.03   26.06 $0.7   1.23  2.25  1.31  2.17  19.43
$13.50   8.94 $(9)   1.40  2.86  1.45  2.81  13.47
       
$16.36   6.89%(1)  $13.8   1.95%(2)(10)   (0.13)%(2)   1.95%(2)(10)   (0.13)%(2)   14.31%(1) 
$15.58   7.10 $13.1   1.93  1.55  1.93  1.55  17.60
$14.79   (9.14)%  $12.0   1.93  1.43  1.93  1.43  27.50
$16.48   4.64 $4.3   1.93  1.19  1.93  1.19  39.53
$15.98   14.17%(7)  $0.1   1.95%(2)   1.53%(2)   1.97%(2)   1.51%(2)   19.43%(1) 
       
$16.55   7.38%(1)  $439.8   1.00%(2)(10)   0.82%(2)   1.00%(2)(10)   0.82%(2)   14.31%(1) 
$15.72   8.10 $648.3   1.00  2.48  0.98  2.50  17.60
$14.92   (8.30)%  $562.5   1.00  2.10  0.98  2.12  27.50
$16.60   5.61 $521.9   1.00  2.12  0.99  2.13  39.53
$16.05   26.43 $404.4   1.03  2.45  1.15  2.33  19.43
$13.50   9.09 $352.7   1.16  3.11  1.21  3.06  13.47
       
$16.59   7.52%(1)  $32.0   0.84%(2)(10)   0.98%(2)   0.95%(2)(10)   0.87%(2)   14.31%(1) 
$15.74   11.60%(7)  $27.7   0.82%(2)   2.67%(2)   0.93%(2)   2.56%(2)   17.60%(1) 

 

The accompanying notes to financial statements are an integral part of this statement.

 

99


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

   Net asset
value,
beginning
of period
  Net
investment
income(5)
      
    
Net
realized and
unrealized
gain/(loss) on
investments
  Total from
investment
operations
  Dividends
from net
investment
income
  Dividends
from net
realized
gains
 

Brandes Global Equity Fund

      

Class A(8)

      

3/31/2017 (Unaudited)

 $21.21   0.10   1.93   2.03   (0.16   

9/30/2016

 $21.85   0.40   0.67   1.07   (0.42  (1.29

9/30/2015

 $25.43   0.27   (1.90  (1.63  (0.33  (1.62

9/30/2014

 $24.20   0.43   2.00   2.43   (0.44  (0.76

9/30/2013

 $20.27   0.38   4.80   5.18   (0.91  (0.34

9/30/2012

 $19.19   0.43   2.22   2.65   (0.44  (1.13

Class C

      

3/31/2017 (Unaudited)

 $21.09   0.02   1.92   1.94   (0.08   

9/30/2016

 $21.73   0.25   0.66   0.91   (0.26  (1.29

9/30/2015

 $25.31   0.16   (1.92  (1.76  (0.20  (1.62

9/30/2014

 $24.14   0.24   1.99   2.23   (0.30  (0.76

1/31/2013(3) – 9/30/2013

 $21.21   0.15   3.12   3.27   (0.34   

Class I

      

3/31/2017 (Unaudited)

 $21.33   0.13   1.95   2.08   (0.19   

9/30/2016

 $21.95   0.46   0.67   1.13   (0.46  (1.29

9/30/2015

 $25.52   0.39   (1.97  (1.58  (0.37  (1.62

9/30/2014

 $24.26   0.50   2.00   2.50   (0.48  (0.76

9/30/2013

 $20.33   0.43   4.81   5.24   (0.98  (0.34

9/30/2012

 $19.22   0.49   2.22   2.71   (0.47  (1.13

 

 

(1)Not annualized.
(2)Annualized.
(3)Commencement of operations.
(4)After fees waived and expenses absorbed or recouped by the Advisor, where applicable.
(5)Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(6)The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements).
(7)The total return figure is the since inception return for the class which commenced operations on January 31, 2013.
(8)Prior to January 31, 2013, Class A shares were known as Class S shares.
(9)Includes proxy expenses not covered by the Trust’s expense limitation agreement.

 

The accompanying notes to financial statements are an integral part of this statement.

 

100


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

Net asset
value, end
of period
  Total
return(6)
  Net assets,
end of
period
(millions)
  Ratio of
net expenses
to average
net assets(4)
  Ratio of net
investment
income to
average
net assets(4)
  Ratio of
expenses (prior
to reimburse-
ments) to
average
net assets
  Ratio of net
investment
income (prior
to reimburse-
ments) to
average
net assets
  Portfolio
turnover
rate
 
       
       
$23.08   9.61%(1)  $7.6   1.26%(2)(9)   0.91%(2)   1.49%(2)(9)   0.68%(2)   6.78%(1) 
$21.21   5.01 $4.6   1.25  1.95  1.58  1.62  15.68
$21.85   (6.99)%  $1.8   1.25  1.15  1.66  0.74  25.06
$25.43   10.18 $1.2   1.25  1.67  1.71  1.21  30.33
$24.20   26.81 $0.3   1.25  1.72  1.97  1.00  24.37
$20.27   14.38 $0.1   1.25  2.23  2.00  1.47  18.00
       
$22.95   9.19%(1)  $1.9   2.01%(2)(9)   0.14%(2)   2.25%(2)(9)   (0.10)%(2)   6.78%(1) 
$21.09   4.20 $2.0   2.00  1.20  2.32  0.88  15.68
$21.73   (7.62)%  $2.4   2.00  0.66  2.42  0.24  25.06
$25.31   9.34 $1.1   2.00  0.92  2.46  0.46  30.33
$24.14   15.50%(7)  $0.1   2.00%(2)   0.97%(2)   2.71%(2)   0.26%(2)   24.37%(1) 
       
$23.22   9.75%(1)  $57.8(1)   1.01%(2)(9)   1.15%(2)   1.30%(2)(9)   0.86%(2)   6.78%(1) 
$21.33   5.26 $47.3   1.00  2.20  1.38  1.82  15.68
$21.95   (6.75)%  $46.0   1.00  1.61  1.47  1.14  25.06
$25.52   10.46 $45.9   1.00  1.93  1.53  1.40  30.33
$24.26   27.12 $39.4   1.00  1.96  1.75  1.21  24.37
$20.33   14.67 $30.1   1.00  2.47  1.68  1.79  18.00

 

The accompanying notes to financial statements are an integral part of this statement.

 

101


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

   Net asset
value,
beginning
of period
  Net
investment
income(5)
      
    
Net
realized and
unrealized
gain/(loss) on
investments
  Total from
investment
operations
  Dividends
from net
investment
income
  Dividends
from net
realized
gains
 

Brandes Global Equity Income Fund

 

    

Class A

      

3/31/2017 (Unaudited)

 $10.79   0.08   1.00   1.08   (0.04  (0.26

9/30/2016

 $9.62   0.28   1.35   1.63   (0.26  (0.20

12/31/2014(3) – 9/30/2015

 $10.00   0.23   (0.46  (0.23  (0.15   

Class C

      

3/31/2017 (Unaudited)

 $10.72   0.04   0.77   0.81   (0.04  (0.26

9/30/2016

 $9.60   0.20   1.31   1.51   (0.19  (0.20

12/31/2014(3) – 9/30/2015

 $10.00   0.23   (0.52  (0.29  (0.11   

Class I

      

3/31/2017 (Unaudited)

 $10.68   0.10   0.78   0.88   (0.10  (0.26

9/30/2016

 $9.57   0.29   1.30   1.59   (0.28  (0.20

12/31/2014(3) – 9/30/2015

 $10.00   0.23   (0.45  (0.22  (0.21   

Brandes Global Opportunities Value Fund

 

  

Class A

      

3/31/2017 (Unaudited)

 $10.17   0.03   0.97   1.00   (0.06   

9/30/2016

 $9.36   0.15   0.96   1.11   (0.21  (0.09

12/31/2014(3) – 9/30/2015

 $10.00   0.12   (0.68  (0.56  (0.08   

Class C

      

3/31/2017 (Unaudited)

 $10.15   (0.01  0.98   0.97   (0.05   

9/30/2016

 $9.33   0.07   0.98   1.05   (0.14  (0.09

12/31/2014(3) – 9/30/2015

 $10.00   0.12   (0.75  (0.63  (0.04   

Class I

      

3/31/2017 (Unaudited)

 $10.15   0.05   0.97   1.02   (0.07   

9/30/2016

 $9.33   0.17   0.97   1.14   (0.23  (0.09

12/31/2014(3) – 9/30/2015

 $10.00   0.12   (0.71  (0.59  (0.08   

 

 

(1)Not annualized.
(2)Annualized.
(3)Commencement of operations.
(4)After fees waived and expenses absorbed or recouped by the Advisor, where applicable.
(5)Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(6)The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements).
(7)The total return figure is the since inception return for the class which commenced operations on December 31, 2014.
(8)Amount is less than $50,000.
(9)Includes proxy expenses not covered by the Trust’s expense limitation agreement.

 

The accompanying notes to financial statements are an integral part of this statement.

 

102


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

Net asset
value, end
of period
  Total
return(6)
  Net assets,
end of
period
(millions)
  Ratio of
net expenses
to average
net assets(4)
  Ratio of net
investment
income to
average
net assets(4)
  Ratio of
expenses (prior
to reimburse-
ments) to
average
net assets
  Ratio of net
investment
income (prior
to reimburse-
ments) to
average
net assets
  Portfolio
turnover
rate
 
       
       
$11.57   10.33%(1)  $(8)   1.26%(2)(9)   1.50%(2)   18.05%(2)(9)   (15.29)%(2)   7.89%(1) 
$10.79   17.35 $(8)   1.25  2.67  20.41  (16.49)%   22.38
$9.62   (2.44)%(7)  $(8)   1.25%(2)   2.90%(2)   570.42%(2)   (566.27)%(2)   16.78%(1) 
       
$11.23   7.85%(1)  $(8)   2.01%(2)(9)   0.78%(2)   18.81%(2)(9)   (16.02)%(2)   7.89%(1) 
$10.72   16.01 $(8)   2.00  1.91  21.51  (17.60)%   22.38
$9.60   (2.99)%(7)  $(8)   2.00%(2)   2.90%(2)   572.75%(2)   (567.85)%(2)   16.78%(1) 
       
$11.20   8.46%(1)  $1.0   1.01%(2)(9)   1.78%(2)   17.85%(2)(9)   (15.06)%(2)   7.89%(1) 
$10.68   16.98 $0.9   1.00  2.91  24.04  (20.13)%   22.38
$9.57   (2.36)%(7)  $0.6   1.00%(2)   2.90%(2)   37.61%(2)   (33.71)%(2)   16.78%(1) 
       
       
$11.11   9.91%(1)  $2.6   1.41%(2)(9)   0.63%(2)   2.94%(2)(9)   (0.90)%(2)   2.50%(1) 
$10.17   12.13 $0.6   1.40  1.53  4.57  (1.64)%   71.20
$9.36   (5.66)%(7)  $0.3   1.40%(2)   1.29%(2)   9.85%(2)   (7.16)%(2)   15.12%(1) 
       
$11.07   9.58%(1)  $0.1   2.16%(2)(9)   (0.12)%(2)   3.71%(2)(9)   (1.67)%(2)   2.50%(1) 
$10.15   11.42 $(8)   2.15  0.78  5.32  (2.39)%   71.20
$9.33   (6.33)%(7)  $(8)   2.15%(2)   1.86%(2)   13.79%(2)   (9.78)%(2)   15.12%(1) 
       
$11.10   10.12%(1)  $20.8   1.16%(2)(9)   0.88%(2)   2.52%(2)(9)   (0.48)%(2)   2.50%(1) 
$10.15   12.45 $5.1   1.15  1.78  4.25  (1.32)%   71.20
$9.33   (5.92)%(7)  $3.0   1.15%(2)   1.55%(2)   11.77%(2)   (9.07)%(2)   15.12%(1) 

 

The accompanying notes to financial statements are an integral part of this statement.

 

103


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

   Net asset
value,
beginning
of period
  Net
investment
income(5)
  

Net
realized and
unrealized
gain/(loss) on
investments

  Total from
investment
operations
  Dividends
from net
investment
income
  Dividends
from net
realized
gains
 

Brandes Emerging Markets Value Fund

 

Class A(8)

      

3/31/2017 (Unaudited)

 $7.91   0.02   0.76   0.78   (0.07   

9/30/2016

 $6.19   0.12   1.69   1.81   (0.09   

9/30/2015

 $9.56   0.11   (3.12  (3.01  (0.13  (0.23

9/30/2014

 $9.23   0.11   0.53   0.64   (0.10  (0.21

9/30/2013

 $8.96   0.11   0.59   0.70   (0.22  (0.21

9/30/2012

 $7.85   0.17   1.10   1.27   (0.08  (0.08

Class C

      

3/31/2017 (Unaudited)

 $7.86   (0.01  0.76   0.75   (0.06   

9/30/2016

 $6.15   0.07   1.67   1.74   (0.03   

9/30/2015

 $9.51   0.05   (3.10  (3.05  (0.08  (0.23

9/30/2014

 $9.19   0.03   0.54   0.57   (0.04  (0.21

1/31/2013(3) – 9/30/2013

 $9.54   0.02   (0.30  (0.28  (0.07   

Class I

      

3/31/2017 (Unaudited)

 $7.94   0.03   0.77   0.80   (0.08   

9/30/2016

 $6.21   0.14   1.70   1.84   (0.11   

9/30/2015

 $9.58   0.13   (3.12  (2.99  (0.15  (0.23

9/30/2014

 $9.24   0.13   0.54   0.67   (0.12  (0.21

9/30/2013

 $8.99   0.13   0.56   0.69   (0.23  (0.21

9/30/2012

 $7.86   0.20   1.10   1.30   (0.09  (0.08

Class R6

      

3/31/2017 (Unaudited)

 $7.93   0.04   0.78   0.82   (0.08   

7/11/2016(3) – 9/30/2016

 $7.54   0.04   0.38   0.42   (0.03   

Brandes International Small Cap Fund

 

Class A(8)

      

3/31/2017 (Unaudited)

 $13.46   0.08   0.90   0.98   (0.28  (0.28

9/30/2016

 $12.58   0.09   1.22   1.31   (0.23  (0.20

9/30/2015

 $13.55   0.04   (0.43  (0.39  (0.17  (0.41

9/30/2014

 $13.72   0.06   1.02   1.08   (0.36  (0.89

9/30/2013

 $10.56   0.06   3.36   3.42   (0.14  (0.12

1/31/2012(3) – 9/30/2012

 $10.00   0.10   0.46   0.56       

Class C

      

3/31/2017 (Unaudited)

 $13.24   0.02   0.89   0.91   (0.24  (0.28

9/30/2016

 $12.42   0.00   1.19   1.19   (0.17  (0.20

9/30/2015

 $13.45   (0.04  (0.44  (0.48  (0.14  (0.41

9/30/2014

 $13.68   (0.04  1.02   0.98   (0.32  (0.89

1/31/2013(3) – 9/30/2013

 $11.90   (0.02  1.83   1.81   (0.03   

Class I

      

3/31/2017 (Unaudited)

 $13.50   0.09   0.90   0.99   (0.29  (0.28

9/30/2016

 $12.61   0.12   1.22   1.34   (0.25  (0.20

9/30/2015

 $13.58   0.08   (0.44  (0.36  (0.20  (0.41

9/30/2014

 $13.74   0.09   1.03   1.12   (0.39  (0.89

9/30/2013

 $10.56   0.09   3.37   3.46   (0.16  (0.12

1/31/2012(3) – 9/30/2012

 $10.00   0.10   0.46   0.56       

Class R6

      

3/31/2017 (Unaudited)

 $13.50   0.10   0.90   1.00   (0.29  (0.28

6/27/2016(3) – 9/30/2016

 $12.68   0.04   0.83   0.87   (0.05   

 

 

(1)Not annualized.
(2)Annualized.
(3)Commencement of operations.
(4)After fees waived and expenses absorbed or recouped by the Advisor, where applicable.
(5)Net investment income (loss) per share has been calculated based on average shares outstanding during the period.
(6)The total return calculation does not reflect the sales loads that may be imposed on Class A or C shares (see Note 7 of the Notes to Financial Statements).
(7)The total return figure is the since inception return for the class.
(8)Prior to January 31, 2013, Class A shares were known as Class S shares.
(9)Amount is less than $50,000.
(10)Includes proxy expenses not covered by the Trust’s expense limitation agreement.

 

The accompanying notes to financial statements are an integral part of this statement.

 

104


Brandes Investment Trust

FINANCIAL HIGHLIGHTS For a capital share outstanding for the period ended:

 

 

 

Net asset
value, end
of period
  Total
return(6)
  Net assets,
end of
period
(millions)
  Ratio of
net expenses
to average
net assets(4)
  Ratio of net
investment
income to
average
net assets(4)
  Ratio of
expenses (prior
to reimburse-
ments) to
average
net assets
  Ratio of net
investment
income (prior
to reimburse-
ments) to
average
net assets
  Portfolio
turnover
rate
 
       
       
$8.62   9.97%(1)  $347.9   1.39%(2)(10)   0.48%(2)   1.37%(2)(10)   0.50%(2)   11.96%(1) 
$7.91   29.38 $305.0   1.37  1.74  1.39  1.72  26.48
$6.19   (32.32)%  $295.6   1.37  1.46  1.40  1.43  35.02
$9.56   7.09 $266.9   1.37  1.10  1.37  1.10  22.54
$9.23   8.09 $131.7   1.37  1.16  1.46  1.07  21.74
$8.96   16.40 $68.1   1.37  2.03  1.60  1.79  28.59
       
$8.55   9.55%(1)  $24.2   2.14%(2)(10)   (0.27)%(2)   2.13%(2)(10)   (0.26)%(2)   11.96%(1) 
$7.86   28.38 $22.4   2.12  0.99  2.14  0.97  26.48
$6.15   (32.83)%  $18.4   2.12  0.62  2.14  0.60  35.02
$9.51   6.38 $25.3   2.12  0.35  2.13  0.34  22.54
$9.19   (2.84)%(7)  $5.3   2.12%(2)   0.42%(2)   2.20%(2)   0.34%(2)   21.74%(1) 
       
$8.66   10.11%(1)  $1,012.3   1.14%(2)(10)   0.73%(2)   1.17%(2)(10)   0.70%(2)   11.96%(1) 
$7.94   29.70 $829.0   1.12  1.99  1.19  1.92  26.48
$6.21   (32.13)%  $725.1   1.12  1.58  1.19  1.51  35.02
$9.58   7.41 $1,144.3   1.12  1.34  1.18  1.28  22.54
$9.24   8.20 $287.7   1.12  1.41  1.26  1.27  21.74
$8.99   16.79 $134.5   1.12  2.26  1.35  2.03  28.59
       
$8.67   10.39%(1)  $72.5   0.99%(2)(10)   0.89%(2)   1.13%(2)(10)   0.75%(2)   11.96%(1) 
$7.93   5.59%(7)  $(9)   0.97%(2)   2.14%(2)   1.14%(2)   1.97%(2)   26.48%(1) 
       
       
$13.88   7.53%(1)  $174.3   1.31%(2)(10)   1.12%(2)   1.31%(2)(10)   1.12%(2)   11.75%(1) 
$13.46   10.60 $121.2   1.32  0.71  1.31  0.72  21.00
$12.58   (2.76)%  $79.1   1.40  0.35  1.32  0.43  24.82
$13.55   8.36 $50.1   1.40  0.42  1.39  0.43  24.30
$13.72   32.98 $31.2   1.40  0.49  1.68  0.21  24.45
$10.56   5.60%(1)  $38.4   1.40%(2)   1.19%(2)   2.16%(2)   0.43%(2)   13.55%(1) 
       
$13.63   7.18%(1)  $24.4   2.06%(2)(10)   0.37%(2)   2.06%(2)(10)   0.37%(2)   11.75%(1) 
$13.24   9.78 $19.8   2.06  (0.03)%   2.06  (0.03)%   21.00
$12.42   (3.49)%  $15.1   2.07  (0.34)%   2.07  (0.34)%   24.82
$13.45   7.60 $12.3   2.14  (0.32)%   2.14  (0.32)%   24.30
$13.68   15.23%(7)  $1.5   2.15%(2)   (0.25)%(2)   2.40%(2)   (0.50)%(2)   24.45%(1) 
       
$13.92   7.61%(1)  $1,404.9