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Brandes Investment Trust (BVNSC)

Filed: 3 Jun 22, 10:58am

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)

4275 Executive Square, 5th Floor

La Jolla, CA 92037

(Address of principal executive offices) (Zip code)

Lea Anne Copenhefer

Morgan, Lewis & Bockius LLP

One Federal Street

Boston, MA 02110-1726

(Name and address of agent for service)

(858) 755-0239

Registrant’s telephone number, including area code

Date of fiscal year end: September 30

Date of reporting period: March 31, 2022


Item 1. Reports to Stockholders.

(a) The following is a copy of the reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30e-1):


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SEMI-ANNUAL REPORT INTERNATIONAL EQUITY FUND GLOBAL EQUITY FUND EMERGING MARKETS VALUE FUND INTERNATIONAL SMALL CAP EQUITY FUND SMALL CAP VALUE FUND U.S. VALUE FUND CORE PLUS FIXED INCOME FUND For the six months ended March 31, 2022


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Table of Contents

 

 

Letter to Shareholders and Performance Graphs

   2 

Brandes International Equity Fund

   2 

Brandes Global Equity Fund

   8 

Brandes Emerging Markets Value Fund

   15 

Brandes International Small Cap Equity Fund

   22 

Brandes Small Cap Value Fund

   29 

Brandes U.S. Value Fund

   35 

Brandes Core Plus Fixed Income Fund

   42 

Expense Example

   50 

Schedule of Investments

   54 

Brandes International Equity Fund

   54 

Brandes Global Equity Fund

   56 

Brandes Emerging Markets Value Fund

   62 

Brandes International Small Cap Equity Fund

   67 

Brandes Small Cap Value Fund

   73 

Brandes U.S. Value Fund

   77 

Brandes Core Plus Fixed Income Fund

   80 

Statements of Assets and Liabilities

   86 

Statements of Operations

   88 

Statements of Changes in Net Assets

   90 

Financial Highlights

   94 

Notes to Financial Statements

   108 

Additional Information

   132 

Trustees and Officers Information

   139 

 

1


    

Brandes International Equity Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes International Equity Fund (Class I Shares) declined 3.39% in the six months ended March 31, 2022. During the same period, the MSCI EAFE Index declined 3.38%.

From a country perspective, holdings in Brazil helped performance, led by Telefonica Brasil and Petroleo Brasileiro (Petrobras). Select holdings in the United Kingdom (e.g., pharmaceutical firm GlaxoSmithKline) and Switzerland (e.g., financial services company UBS Group) also did well.

From an industry perspective, beverage companies Ambev (Brazil) and Anheuser-Busch InBev (Belgium) aided returns. The Fund also saw positive contributions from select insurance holdings, notably Swiss Re and AEGON (Netherlands), as they benefited from improved prospects for increased interest rates and strengthening business results.

Furthermore, our underweight to technology aided relative returns as the sector declined significantly more than the broader market (MSCI EAFE).

The most significant detractors were our holdings in Russia (Mobile TeleSystems and Surgutneftegas). Our thoughts continue to be with the people of Ukraine, as well as those in Russia that are advocating for peace. The events that have unfolded since the start of the Russian invasion of Ukraine in February have significantly elevated the risks and uncertainties associated with investments in Russian securities.

Other detractors included consumer-related holdings, namely Germany-based Henkel and France-based Danone, as well as U.K.-based Marks & Spencer, J Sainsbury and Kingfisher.

Furthermore, Brazilian regional jet manufacturer Embraer gave back some of its strong performance over the past 18 months as it declined on lowered short- term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.

Select Portfolio Activity

The investment committee initiated new positions in Japan-based SoftBank Group and U.K-based TechnipFMC during the period.

TechnipFMC (FTI) is the product of a 2016 merger between Technip, a leading engineering, procurement and construction company (EPC), and FMC, a leading provider of subsea production and processing equipment. The rationale of the merger was to combine equipment manufacturing with engineering and construction of subsea oilfields. In 2021, the company completed a long-planned separation of its onshore EPC business, making it purely focused on offshore oilfield exploration and development.

With an over 40% market share, FTI is the industry leader in subsea systems, highly engineered capital goods that reside on the seabed producing and processing

 

2  

Past Performance is not a guarantee of future results.


Brandes International Equity Fund

 

 

hydrocarbons. The subsea industry has been in a multi-year slump following a decade of high oil prices. Capital expenditures (capex) among upstream oil and gas companies (FTI’s customer base) reached highs in 2014 and are estimated to be less than half of the peak levels in 2021. In addition to the collapse in capex, there has been a shift of investment to unconventional opportunities on land. The overall effect has been a sustained period of low manufacturing utilization, high price competition and distressed profitability for the subsea industry.

While a return to peak capex is unlikely, we believe a gradual increase in offshore activity is in the cards given two main factors: 1) global demand growth has been stable or growing; and 2) poor returns from onshore unconventional production over the past decade may be an indication that more capital should flow elsewhere (or oil prices need to be substantially higher). In our view, FTI is well positioned to benefit from the potentially improved offshore activity considering its industry-leading position in subsea equipment and engineering, as well as its fully integrated business model. Furthermore, we appreciate that FTI has made several investments to capitalize on its offshore development expertise and seek to benefit from a global energy transition, including subsea carbon transportation and storage, floating renewable power generation (offshore wind) and hydrogen production, storage and re-electrification.

SoftBank Group is a holding company whose primary assets include technology and wireless companies, such as internet company Alibaba, semiconductor firm Arm and wireless telecommunication company Softbank Corp, as well as its two Vision funds, which are venture capital funds that invest in technology companies. SoftBank’s stock fell at the beginning of the year due to Alibaba’s share-price decline, as well as a widening discount to its net asset value (NAV). SoftBank now trades near its largest NAV discount in its history (as of March 31).

Other major portfolio activity included the divestments of German chemical company BASF, Ireland-based building materials business CRH and Canadian uranium company Cameco, which appreciated significantly on a potentially improved uranium outlook.

Looking Forward

As of March 31, 2022, the Brandes International Equity Fund held its key overweights to communication services, health care, energy and consumer staples, while maintaining significantly lower allocations to technology and industrials than the benchmark. Geographically, we continued to have overweight positions in France and emerging markets, and underweight positions in Australia and Japan. We believe the differences between our Fund and the benchmark continue to make it an attractive complement to index-tracking or growth-oriented alternatives.

Value stocks (as measured by the MSCI EAFE Value Index) outperformed the broader market (MSCI EAFE Index) noticeably at the start of the year when rising inflation and interest rates caused the valuations of many high-flying growth companies to compress.

 

3


Brandes International Equity Fund

 

 

Geopolitical developments in the second half of the quarter (i.e., the Russia/Ukraine conflict) have exacerbated inflationary trends and triggered concerns about an economic slowdown, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).

In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially given the historically wide valuation discounts at which value stocks traded relative to growth (MSCI EAFE Growth Index). However, with inflation persisting and economic growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While it is true that weaker growth may present a headwind for value stocks (all else being equal), it has not always been the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. These periods shared common attributes that catalyzed the favorable environment for value: they were preceded by a period of elevated general market valuations and historically wide discount levels for value relative to growth.

Today, even after outperforming growth in the past 18 months, value stocks continue to trade at historically high discount levels relative to growth stocks, leading us to believe that the current environment still bodes well for value despite diminished optimism about economic growth.

We remain optimistic about the prospects of the Brandes International Equity Fund and appreciate your continued trust.

Thank you for the trust you have placed in us.

Sincerely yours,

The Brandes International Large-Cap Investment Committee

Brandes Investment Trust

Dividend Yield: Dividends per share divided by price per share.

Net Asset Value: A company’s total assets minus its liabilities, divided by the number of outstanding shares.

Nifty Fifty: A popular name in the 1960s and 70s for a group of the largest U.S. companies.

Return on Invested 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.

Stagflation: Combination of slow economic growth and high inflation.

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

 

4  


Brandes International Equity 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. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

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 Index with net dividends captures large and mid cap representation of developed market countries excluding the U.S. and Canada.

The MSCI EAFE Value Index with gross dividends captures large and mid cap securities across developed market countries, excluding the United States and Canada, exhibiting value style characteristics, defined using book value to price, 12-month forward earnings to price, and dividend yield.

The MSCI EAFE Growth Index with gross dividends captures large and mid cap securities across developed market countries, excluding the United States and Canada, exhibiting growth style characteristics, defined using long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend.

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.

 

5


Brandes International Equity Fund

 

 

One cannot invest directly in an index.

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

The following chart compares the value of a hypothetical $100,000 investment in the Brandes International Equity Fund – Class I from March 31, 2012 to March 31, 2022 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, 2022 
   One  Five  Ten  Since 
   Year  Years  Years  Inception(1) 

Brandes International Equity Fund

     

Class A(2)

   -0.07  3.60  4.87  6.97% 

Class A (2) (with maximum sales charge)

   -5.84  2.37  4.25  6.72% 

Class C(3)

   -0.55  2.88  4.23  6.17% 

Class C (3) (with maximum sales charge)

   -1.51  2.88  4.23  6.17% 

Class I

   0.16  3.86  5.09  7.21% 

Class R6(4)

   0.23  3.97  5.20  7.28% 

MSCI EAFE (Europe, Australasia and Far East) Index

   1.16  6.72  6.27  4.96% 

 

(1) 

The inception date is January 2, 1997.

 

(2) 

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

 

6


Brandes International Equity Fund

 

 

(3) 

Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date.

 

(4) 

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 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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

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The sector classifications represented in the graph above 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’s Financial Services LLC.

 

7


Brandes Global Equity Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes Global Equity Fund (Class I Shares) increased 0.86% in the six months ended March 31, 2022. During the same period, the MSCI World Index increased 2.21%.

Rising energy prices benefited our oil-related holdings, including integrated oil firms Shell and BP, as well as oil field services company Halliburton. Additionally, financial firms UBS Group, Wells Fargo and AIG rose.

Other contributors included aerospace and defense company General Dynamics and several of our health care holdings, notably McKesson, Pfizer, GlaxoSmithKline and Merck.

As geopolitical concerns increased in lock step with worries about sustained increased inflation and the potential for slowing economic growth, European markets and emerging markets experienced the deepest decline. The impact was primarily led by technology and consumer discretionary companies because their valuations are materially influenced by rising interest rates and consumer companies are likely to see the largest demand impact from rising inflation. Our largest detractors included several of our consumer holdings, such as U.S. flooring company Mohawk Industries, U.K. home retailer Kingfisher, South Korean auto manufacturer Hyundai Motor and Chinese major appliance manufacturer Gree Electric.

We had no direct exposure to securities in Russia or Ukraine; while some of our holdings have indirect exposure, our overall portfolio revenue exposure is less than those in the MSCI World Index. Excluding energy-related holdings, Mohawk has the highest exposure to Russia at about 4% of total sales. The company has also confronted significant cost inflation, which we expect to blunt its short-term margins. Longer term, we believe Mohawk is well positioned and can contend with cost inflation. After its recent stock price decline, it now trades at a single digit multiple of earnings.

Other detractors included Embraer, Citigroup and Alibaba Group. Embraer saw its stock decline on its reduced short-term margin guidance. However, over the longer term, we believe the market is missing the ongoing cycle recovery across the company’s portfolio. While the market is heavily focused on short-term, one-off item margin distortions, Embraer’s order backlog has already risen above pre-COVID levels. The company is therefore trading at a wide discount to our estimate of its long-term intrinsic value.

Select Portfolio Activity

The investment committee initiated a position in U.K.-based bank NatWest, while selling our holdings in U.K-based Barclays.

NatWest, formerly RBS, is the U.K.’s fourth-largest bank. Since its government bailout during the financial crisis, the company has pursued its turnaround to become a financial institution focused on retail and commercial banking. The bank has de-risked its balance sheet, built capital and focused on reducing costs. The U.K. government still owns just over half of its outstanding shares, but NatWest has targeted fully exiting its majority government ownership over the next three to four years. Through its

 

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Past Performance is not a guarantee of future results.


Brandes Global Equity Fund

 

 

simplified positioning, we believe NatWest could benefit from a rise in interest rates as it is likely the most interest rate-sensitive of the U.K.-listed banks.

NatWest trades at what we believe to be an attractive valuation of less than 80% of tangible book, and a single digit multiple of earnings that have not yet been materially affected by increasing interest rates. In our opinion, it offers a very strong capital position, has plans to distribute about 15 to 20% of its current market cap to shareholders over the next few years and currently offers a 7% dividend yield.

We therefore decided to sell our stake in Barclays, which has tended to be less rate sensitive and more complex given its corporate and investment banking exposure, and bought a position in NatWest.

The investment committee also added China-based sportswear retailer Topsports Holdings International to the Fund, while divesting Mexican beverage firm Fomento Economico Mexicano(FEMSA) and U.S. food products company Ingredion as they reached our estimates of their intrinsic value.

The investment committee bought Ingredion during the market downturn of early 2020. The company’s share price came under pressure due to concerns around global trade, as well as the risk of a significant recession as COVID-19 began to spread globally. However, we thought Ingredion offered an attractive long-term opportunity as it had exposure to the growing specialty ingredients market and at its valuation, it also offered a significant margin of safety. Over our holding period, the company has executed well and its share price climbed significantly in 2021. When it reached our estimate of its intrinsic value, we divested.

Looking Forward

Value stocks (as measured by the MSCI World Value Index) outperformed the broader market (MSCI World Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends and increased worries about a slowdown in growth, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).

Heading into 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially against the wide valuation discounts value stocks traded at relative to growth. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. Weaker growth may be a headwind for value stocks all else being equal, but that has rarely been the case. In fact, two of the best periods for value versus growth were in the 1970s post-“Nifty Fifty” era (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s.

The common factors of these two periods resulting in highly favorable value environments were: markets were in a state of elevated valuations and the spread

 

9


Brandes Global Equity Fund

 

 

between value and growth was at historically wide levels. The 1970s experienced one of the strongest value performance relative to growth of any decade in the Ken French Data Library (data from 1930 to 2020)1—and it was a period of weak real U.S. GDP (gross domestic product) growth and elevated U.S. inflation. However, and significantly for our analysis, it was preceded by a wide divergence between value and growth stock valuations—just like today. The tailwinds for value that were driving relative returns earlier this year still appear evident to us. Valuation spreads are almost as wide as they have ever been, and we are as bullish about value as we have been for more than a decade.

From an industry/sector standpoint, the Fund’s largest relative overweight positions remained in three main areas. These are: the economically sensitive financials and energy sector, and the more defensive, but (from our perspective) meaningfully undervalued, health care sector. Besides many of the attractive defensive and high-quality characteristics of many of our health care holdings, some also show potential for a cyclical rebound from a pick-up in demand for elective procedures, which had been restricted during the pandemic. We expect our financial holdings to benefit from an increase in interest rates, which is finally starting to occur and will affect their net interest margins.

Our most significant underweights were in technology, consumer staples, and communication services, which appear generally expensive to us, excluding a few specific value opportunities. These areas include several appealingly priced companies that have exposure to robust secular trends, such as 5G, AI, and fintech. They include semiconductor companies, like Samsung and SK Hynix, which trade at much more attractive valuations than a company like Nvidia, yet should benefit from the growth in artificial intelligence and the Internet of Things proliferation. Additionally, instead of holding fintech darling Square (now called Block), whose high valuation reflects market admiration, we invested in Fiserv, which owns Square competitor, Clover, and trades at much more appealing valuation levels.

We are also being careful with our exposure to companies that may be hurt by continued inflation. Generally, these include businesses with low margins, low returns on equity, low pricing power, or high labor cost, as well as those with balance sheet leverage.

From a country/region perspective, we remained overweight in the United Kingdom, France and emerging markets; we were underweight in the United States and Japan.

Looking ahead for the remainder of this year and beyond, we remain optimistic about the prospects for the Global Equity Fund given its history of outperforming the MSCI World Value Index during periods of strong value performance. Furthermore, we are encouraged by the potential for earnings recoveries among our holdings, as well as their attractive valuation discounts relative to growth stocks and the broad market.

 

10


Brandes Global Equity Fund

 

 

We believe the differences between the Fund and the broader market continue to make it an intelligent complement to index-tracking or growth-oriented alternatives. We remain excited about the Fund’s potential, and we thank you for the trust you have placed in us.

Sincerely yours,

The Brandes Global Large-Cap Investment Committee

Brandes Investment Trust

1Dec. 31, 1929 to Dec. 31, 2019. Based on the Ken French Data Library. Value stocks represented by the cheapest quintile of the universe – all listed NYSE, AMEX, and Nasdaq stocks – on a book to price basis, relative to growth stocks represented by the most expensive quintile of the universe on a book to price basis.

Dividend Yield: Dividends per share divided by price per share.

Margin of Safety: The discount of a security’s market price to what the firm believes is the intrinsic value of that security.

Market Capitalization (Cap): The number of common shares outstanding multiplied by the current market price per common share.

Nifty Fifty: A popular name in the 1960s and ‘70s for a group of the largest U.S. companies.

Return on Equity: Net income divided by shareholder’s equity.

Stagflation: Combination of slow economic growth and high inflation.

Tangible Book Value: Book value minus intangible assets (e.g., goodwill).

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

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

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. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

 

11


Brandes Global Equity Fund

 

 

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 captures large and mid cap representation of developed markets.

The MSCI World Value Index with gross dividends captures large and mid cap securities across developed market countries exhibiting value style characteristics, defined using book value to price, 12-month forward earnings to price, and dividend yield.

MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

One cannot invest directly in an index.

The Brandes Global Equity Fund is distributed by ALPS Distributors, Inc.

 

12


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 March 31, 2012 to March 31, 2022 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)

 

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   Average Annual Total Return
Periods Ended March 31, 2022
 
   One
Year
     Five
Years
     Ten
Years
   Since
Inception(1)
 

Brandes Global Equity Fund

            

Class A (2)

   4.31     6.62     7.29   6.93% 

Class A (2) (with maximum sales charge)

   -1.68     5.36     6.66   6.46% 

Class C(3)

   3.54     5.83     6.66   6.11% 

Class C (3) (with maximum sales charge)

   2.56     5.83     6.66   6.11% 

Class I

   4.56     6.89     7.56   7.17% 

MSCI World Index

   10.12     12.42     10.88   10.21% 

 

(1) 

The inception date is October 6, 2008.

 

(2) 

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

 

(3) 

Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares.

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

 

13


Brandes Global Equity Fund

 

 

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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

The sector classifications represented in the graph above 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’s Financial Services LLC.

 

14


Brandes Emerging Markets Value Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes Emerging Markets Value Fund (Class I Shares) declined 11.23% in the six months ended March 31, 2022. During the same period, the MSCI Emerging Markets Index declined 8.20%.

At the onset, we are deeply saddened by the loss of life and the disruption being forced upon the people of Ukraine. Our thoughts continue to be with the people of Ukraine, as well as those in Russia that are advocating for peace. The events that have unfolded since the start of the Russian invasion of Ukraine in February have significantly elevated the risks and uncertainties associated with investments in Russian securities. The most significant detractors in the Fund during the period were our holdings domiciled in Russia, including Lukoil, Mobile TeleSystems and Sberbank.

Beyond Russia, we have also observed increased volatility within the Chinese equity market. Fresh COVID-related lockdowns and geopolitical issues (e.g., relations with Russia and Taiwan) were notable overhangs. Continued investor unease with ADRs (American depositary receipts) and overseas listings further pressured the market, along with regulatory risk on technology-related companies, property market instability, and concerns about economic growth. In mid-March, Vice Premier Liu He announced that the government would introduce policies that are expected to be favorable to the market. While the statement stabilized China’s financial markets momentarily, several of our holdings there performed poorly in recent months, most notably China Education Group, Chinasoft International, Midea and Weichai Power.

Other poor performers included Brazilian regional jet manufacturer Embraer and Mexican cement company Cemex. Embraer’s shares declined on lowered short-term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.

Additionally, our underweight to non-Russian commodities-oriented companies and allocation to the financials sector weighed on returns relative to the MSCI Emerging Markets Index.

Strong performers in the Fund included Brazilian holdings such as oil and gas firm Petrobras, Telefonica Brasil and wireless telecommunication services company TIM. Additionally, China based Wens Foodstuff Group saw its shares rise as strong peak-season demand led hog prices to increase materially from October 2021’s lows.

Although our overall exposure to the financials sector hurt relative returns, select bank holdings performed well. These included Bank Rakyat Indonesia, Thailand-based Bangkok Bank, Bank of the Philippine Islands, and newly added Erste Group Bank. Furthermore, the Fund’s underweight to China helped returns relative to the benchmark.

Select Portfolio Activity

 

          

Past Performance is not a guarantee of future results.

  15


Brandes Emerging Markets Value Fund

 

 

The emerging markets investment committee initiated several positions, including Erste Group Bank and LG Household & Healthcare.

Erste is a bank that we know well, having held it on multiple occasions, most recently in early 2020. While it is domiciled in Austria, the company operates throughout emerging Europe with a strong market position. Erste fell nearly 50% amid the Russia/Ukraine conflict, despite having no direct exposure to Russia, Ukraine, and Belarus. The company has performed stress-testing on its loans to account for the energy price increases and concluded there was no need for materially higher provisions, highlighting the strength of its loan portfolio.

LG Household & Health Care (LGHH) is a diversified consumer goods company based in South Korea. The company has enjoyed consistent growth, with revenues growing at a 10-year compounded rate of 13% annually (pre-pandemic) and operating profit at 18%, leading it to become South Korea’s top player in all three of its divisions: Beauty (cosmetic products), Health (health care and household products) and Refreshment (beverages).

LGHH’s flagship luxury cosmetics brand, The History of Whoo, has steadily been gaining share in the Chinese beauty market (its main market) as it benefited from the shift in consumer preferences from value to premium products, a trend that is expected to continue in the foreseeable future. Recently, however, sales have started to slow down, mainly due to the strict lockdowns in China and the related decline in the duty-free sales channel. As a result, LGHH’s shares fell over 30% in 2021.

We believe the market is applying an overly harsh scenario of permanently slower sales growth of LGHH’s cosmetic products, providing us with an opportunity to invest in a company with a solid market presence at appealing valuations. In our opinion, LGHH remains well positioned to benefit from the premiumization of China’s beauty market and from a rebound in sales as mobility restrictions ease in its main markets.

The emerging markets investment committee also took advantage of the increased volatility in China to add Topsports International Holdings to the Fund.

As China’s largest sportwear retailer, Topsports partners with international brands to sell their products through the company’s directly operated stores. Topsports’ largest and most significant partners are Nike and Adidas, two highly popular brands in China that account for nearly half of the country’s sportswear market in terms of sales. Topsports is Adidas’ largest global partner and Nike’s second-largest global partner, representing roughly half of Nike’s total sales in China.

In March 2021, Topsports’ shares reached highs after Nike reported strong sales in China, suggesting that the post-COVID demand recovery was underway. Since then, however, Topsports’ shares have declined materially on several factors:

•  Short-term concerns around inventory shortages due to government-mandated production shutdowns;

•  Increased geopolitical risks for Western brands selling in China;

•  Tension over labor treatment in cotton-growing Xinjiang region;

 

16


Brandes Emerging Markets Value Fund

 

 

•  Fresh lockdowns triggered by the Delta variant;

•  Worries about the spillover effects of the property market downturn on consumption.

We believe these concerns have been accounted for in Topsports’ share price. Topsports is one of two Chinese sportwear companies (the other one being Pou Sheng International) with a national network of retail outlets. Over the past five years, it has outpaced its rival, achieving better topline growth and higher average operating margins. It is our view that the current manufacturing challenges will eventually subside and that Topsports is well positioned to benefit from China’s sportswear market growth, which is expected to be double-digit annually over the medium term. Furthermore, Adidas and Nike are looking to consolidate their retail partnerships, and we believe Topsports should be a beneficiary of this trend given its strong position in China and its established relationships with both brands.

Other major activity included the full sells of Thailand-based Siam Commercial Bank, India-based media company Zee Entertainment Enterprises, and Mexican beverage company Fomento Economico Mexicano (FEMSA). The committee also exited the Fund’s positions in China-based Wens Foodstuff, Argentina’s YPF and O2 Czech Republic, as well as Greece’s Hellenic Telecommunications. We exited these positions as the shares appreciated toward our estimates of their intrinsic values.

Looking Forward

As of March 31, 2022, the Fund held large sector overweights in real estate (note that we do not own any real estate holdings in China) and consumer discretionary, and key underweights to materials and financials. From a country perspective, even though Chinese companies made up the Fund’s largest allocation, we remained underweight relative to the benchmark. We also continued to be underweight India and Taiwan, while having a significant overweight to companies in Mexico, Indonesia and Brazil.

The world has changed significantly in the past couple months. With so many moving parts and ever-changing news flow, it is easy to get lost in the myriad of topical questions. It would be impossible to predict the outcomes of current world events and their impact on investment portfolios.

Looking forward, we believe the Brandes Emerging Markets Value Fund offers a diversified portfolio with exposure to the following factors:

•  Post-COVID economic reopening/normalization: We believe our holdings in air travel, casino gaming and luxury retail, as well as those in China, Southeast Asia, and Latin America from a geographic standpoint, will benefit assuming the pandemic’s economic impact continues to ease.

•  Inflation: While we make no attempt to forecast inflation, we believe the portfolio is well positioned for a rising inflation environment through our holdings in financials and real estate investment trusts with inflation-indexed rents, as well as high-yielding businesses. These holdings may benefit from net interest margin expansion should the

 

17


Brandes Emerging Markets Value Fund

 

 

yield curve steepen. Additionally, we have reduced the exposure to financial leverage among our non-financial holdings, which we believe is prudent given the potential impact of rising interest rates on the cash flows of these businesses.

•  Long-term growth drivers in emerging markets: Our positions in consumer-related fields (e.g., e-commerce, food products, appliances, sportswear, cosmetics, education) provide exposure to the growing middle-class consumption in emerging markets.

We believe this positioning, combined with the Fund’s overall attractive valuation levels, bodes well for the Fund’s returns in the long term.

Sincerely yours,

The Brandes Emerging Markets Investment Committee

Brandes Investment Trust

American Depositary Receipt: A negotiable certificate issued by a U.S. depositary bank representing a specified number of shares—usually one share—of a foreign company’s stock.

Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.

Net Interest Margin: Interest income generated by a financial institution minus the amount of interest paid to its lenders, divided by average earning assets.

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

Operating Profit: Earnings before interests and taxes.

Yield Curve: A yield curve shows the relation between the yield on debt instruments (i.e., annual income from the investment, divided by the current market price of the investment) and their times to maturity. A typical yield curve slopes upward to reflect higher interest rates for longer maturities.

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

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 markets involve greater risk and volatility than more developed markets. Some emerging markets 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 investments in larger capitalization companies. Value

 

18


Brandes Emerging Markets Value Fund

 

 

stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

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 captures large and mid cap representation of emerging market countries.

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 Emerging Markets Value Fund is distributed by ALPS Distributors, Inc.

 

19


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, 2012 to March 31, 2022 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, 2022(1) 
   One  Five  Ten  Since 
   Year  Years  Years  Inception(2) 

Brandes Emerging Markets Value Fund

     

Class A

   -12.39  -0.78  0.25  5.89% 

Class A (with maximum sales charge)

   -17.42  -1.94  -0.34  5.65% 

Class C(3)

   -12.70  -1.43  -0.34  5.08% 

Class C (3) (with maximum sales charge)

   -13.55  -1.43  -0.34  5.08% 

Class I

   -12.35  -0.58  0.48  6.11% 

Class R6(4)

   -12.18  -0.42  0.60  6.20% 

MSCI Emerging Markets Index

   -11.37  5.98  3.36  5.93% 

 

(1)

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.

 

20


Brandes Emerging Markets Value Fund

 

 

(2) 

The inception date is August 20, 1996.

 

(3) 

Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date.

 

(4) 

Performance shown prior to July 11, 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 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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

The sector classifications represented in the graph above 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’s Financial Services LLC.

 

21


Brandes International Small Cap Equity Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes International Small Cap Equity Fund (Class I Shares) fell 10.21% in the six months ended March 31, 2022. During the same period, the S&P Developed Ex-U.S. SmallCap Index fell 8.52%.

From a country perspective, holdings in Canada contributed meaningfully to performance, led by Dorel Industries and uranium companies Cameco Corporation and Sprott Physical Uranium Trust, which both benefited from a sharp increase in commodity prices.

Other notable positive contributors included South Korean gas utility Samchully,U.K. energy equipment company TechnipFMC, Mexican real estate investment trust Fibra Uno,and Japan Petroleum Exploration. Additionally, Italian defense company Leonardo SpA, a new addition in the first quarter, saw its share price increase on the prospect for higher defense spending in Europe.

European markets and emerging markets experienced the steepest decline in the period as geopolitical concerns related to the Russia/Ukraine conflict exacerbated inflationary trends and triggered worries about an economic slowdown. The Fund does not have any direct investments in Russia or Ukraine. While select holdings do have some indirect exposure to the countries, our overall portfolio revenue exposure is less than that of the S&P Developed ex-U.S. SmallCap Index.

Among the Fund’s largest detractors were several of our consumer and construction materials-related holdings, led by French catering services provider Elior Group and U.K. retailer Marks & Spencer, as well as cement companies Buzzi Unicem (Italy), Cemex (Mexico) and Vicat (France). Elior suspended its earnings guidance in January, citing a lack of visibility regarding the impact of the strict health protocols implemented to stifle the Omicron COVID variant. In early March, the company’s chief executive officer unexpectedly resigned. We believe that these challenges are temporary in nature and that the company warrants a continued inclusion in the Fund’s portfolio.

Other detractors included industrial holdings Embraer and De La Rue,German health care equipment supplier Draegerwerk, and Hong Kong-based payment services provider PAX Global Technology Limited.

Brazilian jet manufacturer Embraer gave back some of its strong performance over the past 18 months as it declined on lowered short-term margin guidance. We believe the market underappreciates the ongoing cycle recovery across Embraer’s products, which have seen their order backlog rise above pre-COVID levels. As the market is heavily focused on short-term, one-off item margin distortions, Embraer now trades at a wide discount to our estimate of its intrinsic value.

Select Portfolio Activity

The small-cap investment committee initiated positions in Hong Kong-based YueYuen, U.K. defense technology company QinetiQ, Ireland-based food products company Greencore Group, Japanese entertainment business DeNA,

 

22  

Past Performance is not a guarantee of future results.

  


Brandes International Small Cap Equity Fund

 

 

U.K.-domiciled energy equipment company TechnipFMC, as well as the aforementioned Leonardo SpA.

Founded in 1988, Yue Yuen is the world’s largest manufacturer of branded athletic and casual footwear, producing nearly 250 million pairs of shoes in the fiscal year 2020 as an original equipment manufacturer for major brands such as Nike and Adidas, which together account for almost two-thirds of Yue Yuen’s sales, as well as Reebok, Asics, New Balance, and Puma. The company also has a majority stake in sportswear (athletic shoes and apparel) retailer Pou Sheng.

We see significant value potential in Yue Yuen. While volume growth has been muted in recent years as key customers have been working to reduce inventories and demanding shorter lead times, Yue Yuen has maintained a strong pricing power which is attributable to increased popularity of athletic shoes and a style shift toward more complex designs. Provided COVID-related conditions continue to improve, the industry is expected to grow at mid-single digits. Furthermore, we believe Yue Yuen is well positioned to expand its operating margins, which have been negatively affected by forced factory closures and occupancy reductions (for social distancing). Although the timing of the recovery is impossible to predict, it is our opinion that Yue Yuen’s current share price is overly discounted, providing us with what we consider a compelling entry point for an investment.

TechnipFMC (FTI) is the product of a 2016 merger between Technip, a leading engineering, procurement and construction company (EPC), and FMC, a leading provider of subsea production and processing equipment. The rationale of the merger was to combine equipment manufacturing with engineering and construction of subsea oilfields. Earlier this year, the company completed a long-planned separation of its onshore EPC business, making it purely focused on offshore oilfield exploration and development.

With an over 40% market share, FTI is the industry leader in subsea systems, highly engineered capital goods that reside on the seabed producing and processing hydrocarbons. The subsea industry has been in a multi-year slump following a decade of high oil prices. Capital expenditures (capex) among upstream oil and gas companies (FTI’s customer base) reached highs in 2014 and are estimated to be less than half of the peak levels in 2021. In addition to the collapse in capex, there has been a shift of investment to unconventional opportunities on land. The overall effect has been a sustained period of low manufacturing utilization, high price competition and distressed profitability for the subsea industry.

While a return to peak capex is unlikely, we believe a gradual increase in offshore activity is in the cards given two main factors: 1) global demand growth has been stable or growing; and 2) poor returns from onshore unconventional production over the past decade may be an indication that more capital should flow elsewhere (or oil prices need to be substantially higher). In our view, FTI is well positioned to benefit from the potentially improved offshore activity considering its industry-leading position in subsea equipment and engineering, as well as its fully integrated business model.

 

23


Brandes International Small Cap Equity Fund

 

 

Furthermore, we appreciate that FTI has made several investments to capitalize on its offshore development expertise and seek to benefit from a global energy transition, including subsea carbon transportation and storage, floating renewable power generation (offshore wind) and hydrogen production, storage and re-electrification.

During the period, the investment committee exited several positions in Spain, namely Atresmedia, Bankinter, CaixaBank and Linea Directa Aseguradora. Other full sells were Canadian Corby Spirit and Wine and insurer E-L Financial, utility First Philippine Holdings, and South Korea-based Lotte Confectionary.

Looking Forward

Value stocks (as measured by the S&P Developed ex-U.S. SmallCap Value Index) outperformed the broader market (S&P Developed ex-U.S. SmallCap Index) noticeably at the start of the year when rising inflation and interest rates caused the valuations of many high-flying growth companies to compress. Geopolitical developments in the second half of the quarter (i.e., the Russia/Ukraine conflict) have exacerbated inflationary trends and triggered concerns about an economic slowdown, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).

In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially given the historically wide valuation discounts at which value stocks traded relative to growth (S&P Developed ex-U.S. SmallCap Growth Index). However, with inflation persisting and economic growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While it is true that weaker growth may present a headwind for value stocks (all else being equal), it is not always the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. These periods shared common attributes that catalyzed the favorable environment for value: they were preceded by a period of elevated general market valuations and historically wide discount levels for value relative to growth.

In terms of portfolio positioning, there were no wholesale changes in the period. From a sector standpoint, the Fund held its largest weights in industrials (although underweight relative to the benchmark), consumer staples and financials. While returns for the industrials sector were negative in the quarter, the Fund’s weighting to industrials increased slightly with the additions of defense companies Leonardo SpA and QinetiQ. The Fund maintained underweights in technology and materials, and continued to have significant exposure to Japan, the U.K., and emerging markets.

We remain excited about the prospects of the Brandes International Small Cap Equity Fund and appreciate your continued trust.

 

24


Brandes International Small Cap Equity Fund

 

 

Sincerely yours,

The Brandes Small-Cap Investment Committee

Brandes Investment Trust

Dividend Yield: Dividends per share divided by price per share.

Nifty Fifty: A popular name in the 1960s and 70s for a group of the largest US companies.

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

Stagflation: Combination of slow economic growth and high inflation.

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

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 investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

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 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.

 

25


Brandes International Small Cap Equity Fund

 

 

The S&P Developed Ex U.S. SmallCap Value Index with net dividends measures the equity performance of small cap companies in developed markets excluding the United States, which are classified as value stocks by book value-to-price, sales-to-price, cash flow-to-price, and dividend yield.

The S&P Developed Ex-U.S. SmallCap Growth Index measures the equity performance of small cap companies in developed markets excluding the United States, which are classified as growth stocks by 5-year historical earnings per share growth, 5-year historical sales per share growth, and 5-year average annual internal growth rate.

One cannot invest directly in an index.

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

 

26


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, 2012 to March 31, 2022 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, 2022(1) 
   One  Five  Ten  Since 
   Year  Years  Years  Inception(2) 

Brandes International Small Cap Equity Fund

     

Class A

   -1.28  0.80  5.66  8.19% 

Class A (with maximum sales charge)

   -6.95  -0.38  5.04  7.94% 

Class C(3)

   -1.52  0.15  5.05  7.40% 

Class C (3) (with maximum sales charge)

   -2.45  0.15  5.05  7.40% 

Class I

   -1.14  1.00  5.89  8.43% 

Class R6(4)

   -1.06  1.10  5.98  8.50% 

S&P Developed Ex-U.S. SmallCap Index

   -3.72  7.09  7.58  6.71% 

 

(1) 

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

 

            27


Brandes International Small Cap Equity Fund

 

 

 

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.

 

(2) 

The inception date is August 19, 1996.

 

(3) 

Performance shown prior to January 31, 2013 for Class C shares reflects the performance of Class I shares adjusted to reflect Class C expenses. Class C shares automatically convert to Class A shares if held for 8 years. The Class C shares’ average annual total return for the 10-year period assumes that Class C shares automatically converted to Class A shares on January 1, 2021. The Class C shares’ average annual total return for the since inception period does not reflect the automatic conversion to Class A shares, as Class A shares did not yet exist 8 years after the Fund’s inception date.

 

(4) 

Performance shown prior to June 27, 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 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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

The sector classifications represented in the graph above 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’s Financial Services LLC.

 

28


Brandes Small Cap Value Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes Small Cap Value Fund (Class I Shares) rose 2.58% in the six months ended March 31, 2022. During the same period, the Russell 2000 Index fell 5.55%.

Given the recent sharp increase in commodity prices, the strongest performers were companies that directly benefitted from that increase. Oil- and gas-related companies performed exceptionally well, led by Dril-Quip, Helmerich & Payne, Chesapeake Energy and Halliburton. Uranium company Sprott Physical Uranium Trust also performed well.

Other strong contributors included Canadian household durables manufacturer Dorel Industries, machinery business Flowserve, professional services companies Kelly Services and Science Applications International (SAIC).

As geopolitical concerns increased in lock step with worries about inflation and the potential for “stagflation,” the broad U.S. small cap market (as measured by the Russell 2000 Index) declined. The impact was primarily led by technology companies because their valuations tend to be materially influenced by rising interest rates. For the Fund, major detractors included communications equipment companies Ribbon Communications and NETGEAR.

Other detractors included holdings in the industrials sector, namely aircraft manufacturer Embraer, vacuum and heat transfer equipment manufacturer Graham Corporation and Orion Group. Embraer saw its stock decline on its reduced short-term margin guidance. However, over the longer term, we believe the market is missing the ongoing cycle recovery across the company’s portfolio. While the market is heavily focused on short-term, one-off item margin distortions, Embraer’s order backlog has already risen above pre-COVID levels. The company is trading at a wide discount to our estimate of its long-term intrinsic value, and we added to our position.

Select Portfolio Activity

We sold our stakes in Varex Imaging Corporation, Utah Medical Products, Halliburton and Helmerich & Payne.

During the period, the small-cap investment committee initiated positions in Kelly Services, Science Applications International Corporation, office furniture company Kimball International, Ribbon Communications, commercial services & supplies provider Steelcase, and machinery business Flowserve. We also took advantage of share price weakness and added to our investments in consumer products company Edgewell Personal Care, computer networking company NETGEAR.

Founded in 1946, Kelly Services has evolved from a U.S.-based company concentrating primarily on traditional office staffing into a global workforce solutions provider. Kelly Services is the fourth-largest staffing company in the U.S. Most of its operations are still derived from lower-end office services, education, contact center, light industrial and

 

          

Past Performance is not a guarantee of future results.

  29


Brandes Small Cap Value Fund

 

 

electronic assembly staffing. It has also been attempting to expand into more complex areas and claims to have a unique talent supply chain management approach to help many of the world’s largest companies plan for and manage their workforces. Those areas involve outsourcing, consulting, recruitment, career transition and vendor management services.

Kelly Services had begun to recover from the unemployment peak (revenues and unemployment have typically been inversely related) caused by COVID-19 and had proceeded with its plan to expand into higher-margin, specialty businesses. However, the share price was down in the second half of 2021 and early 2022, likely due to COVID spikes derailing the path to a more normal business environment. We believe this offered an opportunity to purchase one of the top players in the professional services industry trading at a discount to tangible book value with a strong net cash balance sheet, enabling it to weather economic volatility.

Science Applications International Corporation is the fifth-largest government IT services contractor and operates a capital-light business model that has generated strong free cash flow. We believe that SAIC trades at an attractive valuation and should continue to be a defensive business with at least low single-digit organic growth driven by greater alignment with budget priorities of the defense and civilian agencies. Continued solid free cash flow generation would allow it to deleverage its balance sheet over the next few years, and it also has a track record of returning some excess free cash flow to shareholders via buybacks and dividends.

Under the name of a predecessor entity, Flowserve was founded in 1912. Today, the firm develops and manufactures precision-engineered equipment integral to the movement, control and protection of the flow of materials in critical processes and also provides aftermarket services for these complex systems. Flowserve has underperformed during the past year due to the cyclical aspects of its business; recent results were also hampered by supply chain issues affecting many businesses around the world. However, we believe these challenges are temporary and have created a buying opportunity.

Looking Forward

Value stocks (as measured by the Russell 2000 Value Index) outperformed the broader market (Russell 2000 Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends and increased worries about a slowdown in growth, raising the potential for a “stagflationary” environment (low economic growth and elevated inflation).

In the beginning of 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth and almost no inflation before COVID-19) would benefit value stocks—especially against the preferable valuation

 

30


Brandes Small Cap Value Fund

 

 

discounts value stocks traded at relative to growth. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. Weaker growth may be a headwind for value stocks all else being equal, but that has rarely been the case. In fact, two of the best periods for value versus growth were the post-Nifty Fifty era in the 1970s (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s. The common factors of these two periods resulting in highly favorable value environments were: markets were in a state of elevated valuations and the spread between value and growth was at historical levels.

From a positioning standpoint, our largest sector overweights were in industrials and energy, and we continued to find value in health care companies, although we are underweight relative to the Russell 2000 Index. We are markedly underweight companies in the financials, real estate, information technology and consumer discretionary sectors.

In our opinion, the differences between the Brandes Small Cap Value Fund and the broader market continue to make it an attractive complement to other small-cap offerings. The Fund exhibits lower valuations than the Russell 2000 Index. We believe our holdings have strong balance sheets, compelling growth prospects and are able to generate durable free cash flow. Compared with the Russell 2000 Value Index, the Fund has significantly less exposure to financials and real estate.

As always, we appreciate the trust you have placed in us.

Sincerely yours,

The Brandes Small-Cap Investment Committee

Brandes Investment Trust

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

Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.

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

Forward Price/Earnings: Price per share divided by earnings per share expected over the next 12 months.

Net Cash: Total cash minus total debt.

Nifty Fifty: A popular name in the 1960s and ‘70s for a group of the largest U.S. companies.

Stagflation: Combination of slow economic growth and high inflation.

Tangible Book Value: Book value minus intangible assets (e.g., goodwill).

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

 

31


Brandes Small Cap 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. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

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 Russell 2000 Index with gross dividends measures the performance of the small cap segment of the U.S. equity universe.

The Russell 2000 Value Index with gross dividends measures performance of the small cap value segment of the U.S. equity universe. Securities are categorized as growth or value based on their relative book-to-price ratios, historical sales growth, and expected earnings growth.

One cannot invest directly in an index.

The Brandes Small Cap Value Fund is distributed by ALPS Distributors, Inc.

 

32


Brandes Small Cap Value Fund

 

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes Small Cap Value Fund – Class I from March 31, 2012 to March 31, 2022 with the value of such an investment in the Russell 2000 Total Return Index and Russell 2000 Value Total Return Index for the same period.

Value of $100,000 Investment vs Russell 1000 Total

Return Index & Russell 1000 Value Total

Return Index(Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2022(2)
 
   One
Year
   Five
Years
   Ten
Years
  Since
Inception(1)
 

Brandes Small Cap Value Fund

       

Class A

   9.23   10.03   12.53  7.71% 

Class A (with maximum sales charge)

   2.92   8.75   11.88  7.45% 

Class I

   9.58   10.36   12.82  7.99% 

Class R6(3)

   10.17   9.10   12.18  7.73% 

Russell 2000 Total Return Index

   -5.79   9.74   11.04  7.79% 

Russell 2000 Value Total Return Index

   3.32   8.57   10.54  8.52% 

 

(1) 

The inception date is September 30, 1997.

 

(2) 

Prior to January 2, 2018, 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 Small Cap Value Fund. The performance information shown for the Class I shares for periods before January 2, 2018 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 2, 2018 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.

 

(3) 

Performance shown prior to January 2, 2018 for Class R6 shares reflects the performance of Class I shares. The private investment fund was not registered under the Investment Company Act of 1940 (“1940 Act”)

 

33


Brandes Small Cap Value Fund

 

 

 

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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

The sector classifications represented in the graph above 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’s Financial Services LLC.

 

34


Brandes U.S. Value Fund

 

 

Dear Fellow Investor,

The net asset value of the Brandes U.S. Value Fund (Class I Shares) gained 6.14% in the six months ended March 31, 2022. During the same period, the Russell 1000 Value Index gained 5.65% and the Russell 1000 Index increased 2.97%.

Rising energy prices benefited our oil-related companies, including integrated oil firm Chevron and oil field services company Halliburton. Rising commodity prices also aided our materials investments, namely Corteva and Westlake.

Other contributors included pharmaceutical distributor McKesson, advertising agency Omnicom, and aerospace and defense company General Dynamics.

As geopolitical concerns increased in lock step with worries about inflation and the potential for “stagflation” during the first quarter, the broad U.S. market (as measured by the Russell 1000 Index) declined. During the six months ending March 31, 2022, the Fund’s largest detractors were holdings in the banking, household durables and consumer finance industries. Citigroup, flooring company Mohawk Industries and OneMain Holdings were among the worst performers.

Among the Fund’s holdings, Mohawk has the highest exposure to Russia at about 4% of total sales, although the company does have some manufacturing facilities in Eastern European countries such as Poland. As a flooring manufacturer and distributor, Mohawk has experienced material cost inflation which could pressure short-term margins, but over the longer term we believe its advantaged position should enable it to manage these costs better than many competitors. After its recent decline, the stock trades at a single digit multiple of earnings, which we believe allows for an attractive return over time.

While household durables company Taylor Morrison Home performed well during the previous year’s strong housing market, the shares have pulled back recently amid anxiety about the consequences of rising mortgage rates. However, at the company’s current valuation of only 3x forward earnings, and given the lack of new housing built over the past decade, we believe these factors are fully reflected in Taylor Morrison’s share price.

Select Portfolio Activity

The investment committee initiated positions in semiconductor firm Qorvo, insurance broker and benefits firm Willis Towers Watson (WTW) and industrial equipment firm Gates Industrial.

Qorvo was formed in 2015 via the merger of TriQuint Semiconductor and RF Micro Devices. The company is now the second-largest independent radio frequency (RF) front-end component supplier and offers products that are critical for transmitting radio signals to, and receiving them from, a smartphone’s cellular modem.

Most of Qorvo’s revenue comes from the smartphone market. It has a strong competitive position and should continue to benefit from the transition to 5G-enabled

 

          

Past Performance is not a guarantee of future results.

  35


Brandes U.S. Value Fund

 

 

phones, which include significantly more RF components per phone (3G phones average $8 of RF components versus 5G at $25). Additionally, the company earns almost one-third of its revenue outside of smartphone end-markets, and will likely derive a benefit from the growing Internet of Things (IoT) applications for internet-connected appliances and devices.

Qorvo’s shares have declined due to concerns about supply chain constraints and a slowdown in the smartphone market, especially in China which accounts for the largest share of Qorvo’s revenue. Over the longer term, we believe that Qorvo’s supply chain constraints will be resolved and that it offers an appealing way to benefit from the growth of RF content per 5G phone, as well as the proliferation of internet-connected devices globally. At a current valuation of less than 10x our estimate of normalized earnings, we feel the company offers a desirable risk/reward tradeoff.

Willis Towers Watson (WTW) is the third-largest retail insurance broker in the United States. The company offers insurance brokerage, actuarial support, consulting, pension plan design, risk broking and benefits outsourcing. WTW’s share price declined over the past year when an intended acquisition by Aon fell through for anti-trust reasons. WTW is now working to turn around its standalone business, with a new management team and a reconstituted board of directors.

Overall, we believe WTW is an appealing business with good cash flow generation and a strong balance sheet that trades at an attractive valuation level, especially as it works on raising its margins closer to those of its insurance broker peers. Additionally, several activist investors have bought WTW shares to push for its turnaround, and WTW has announced it will be returning a significant amount of excess cash to shareholders over the next 18 months, equal to about 15% of its market cap.

We also initiated a position in Gates Industrial, a global manufacturer of power transmission and fluid power solutions used across a variety of industrial applications. The company is the market leader in belts, hoses, hydraulics and engine systems used by automobile manufacturers, heavy duty trucks, construction and mining, as well as industrial and oil and gas end markets. Demand for its products is largely driven by replacement demand and the cost of product failure is high relative to the component cost, giving Gates pricing power that would be beneficial in an inflationary environment.

Gates was fully owned by private equity firm Blackstone until it went public in 2018, and Blackstone still owns roughly two-thirds of the company today. Blackstone’s partial ownership divestment likely created some overhang on Gates’ stock price, contributing to its recent underperformance. Additionally, Gates has suffered from the well-publicized supply chain issues which have kept the company from meeting end-demand. We feel Gates now trades at an attractive valuation and should benefit from an improvement in economic and industrial activity, as well as the resolution of supply-chain constraints.

 

36


Brandes U.S. Value Fund

 

 

During the period, the investment committee divested the Fund’s holdings in biotechnology firm Gilead Sciences and real estate investment trust Mid-America Apartment Communities (MAA). Real estate markets and rents have continued to see strong price appreciation, which has significantly benefited MAA. We divested MAA when its share price reached our estimate of its intrinsic value. Additionally, we sold long-time holding in beverage and snack company PepsiCo., the world’s second-largest food and beverage company, as the stock price exceeded our estimate of intrinsic value.

Looking Forward

Value stocks (as measured by the Russell 1000 Value Index) outperformed the broader market (Russell 1000 Index) noticeably at the start of the year when rising inflation and interest rates caused many high-flying growth company valuations to compress. Geopolitical developments in the second half of the quarter (i.e., the invasion of Ukraine) have exacerbated inflationary trends, increased worries about a slowdown in growth, and raised the potential for a “stagflationary” environment (low economic growth and elevated inflation).

Heading into 2022, we were optimistic that improving economic growth and an uptick in inflation (after a decade-plus of weak growth coupled with low and declining interest rates) would benefit value stocks—especially against the valuation discounts value stocks traded at relative to growth stocks. With inflation persisting and growth potentially slowing, we are often asked if these factors change our outlook for value stocks. While weaker growth may be a headwind for value stocks all else being equal, it’s rarely “all else equal.” In fact, two of the best periods for value stocks relative to growth stocks were during the 1970s following the “Nifty Fifty” era (during which the term “stagflation” was first widely used) and the post-tech bubble correction of the early 2000s.

The common factors leading up to these two periods of significant value outperformance were a) U.S. stocks in general were trading at very elevated valuations, and b) the valuation spreads between value and growth stocks were at historically elevated levels – both of which we are experiencing today.

From an industry/sector standpoint, the Fund’s largest relative overweight positions remained in the economically sensitive financials sector, the more defensive health care sector and various areas within the technology sector that are exposed to secular growth at what we consider to be reasonable valuations.

While we feel our health care holdings generally exhibit defensive and high-quality characteristics, many also show the potential to benefit from the resumption of elective procedures that may have been delayed during the pandemic. With regard to our financial holdings, in addition to the tailwind from loan growth and capital returns, many of them should also benefit from the increase in interest rates that we are now starting to experience. Finally, our overweight to the technology sector includes several

 

37


Brandes U.S. Value Fund

 

 

companies with exposure to secular megatrends like artificial intelligence, fintech, and 5G (companies such as Micron, Fiserv and Qorvo) at what we consider to be very reasonable valuations.

Our most significant underweights are in consumer staples, utilities and real estate, which appear generally expensive to us other than a few specific opportunities.

We believe the differences between the Brandes U.S. Value Fund and the broader market continue to make the Fund an attractive complement to more index-like or growth-oriented alternatives.

Looking ahead to this year and beyond, we remain optimistic about the Fund’s prospects given what we consider to be an attractive environment for value investing, and the Fund’s historic tendency to outperform the Russell 1000 Value Index during periods of value outperformance (Russell 1000 Value vs. Russell 1000).

As always, we thank you for the trust you have placed in us.

Sincerely yours,

The Brandes Global Large-Cap Investment Committee

Brandes Investment Trust

Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.

Forward Price/Earnings: Price per share divided by earnings per share expected over the next 12 months.

Market Capitalization (Cap): The number of common shares outstanding multiplied by the current market price per common share.

Nifty Fifty: A popular term in the 1960s and ‘70s for a group of the largest U.S. companies.

Normalized Earnings: Earnings adjusted based on economic cycles.

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

Stagflation: Combination of slow economic growth and high inflation.

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

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. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than investments in larger capitalization companies. Value stocks typically are less volatile than growth stocks; however, issues of value stocks typically have a lower expected growth rate in earnings and sales than issues of growth stocks.

 

38


Brandes U.S. Value Fund

 

 

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 Russell 1000 Value Index with gross dividends measures performance of the large cap segment of the U.S. equity universe. Securities are categorized as growth or value based on their relative book-to-price ratios, historical sales growth, and expected earnings growth.

The Russell 1000 Index with gross dividends measures performance of the large cap segment of the U.S. equity universe.

One cannot invest directly in an index.

The Brandes U.S. Value Fund is distributed by ALPS Distributors, Inc.

 

39


Brandes U.S. Value Fund

 

 

The following chart compares the value of a hypothetical $100,000 investment in the Brandes U.S. Value Fund – Class I from October 1, 2021 to March 31, 2022 with the value of such an investment in the Russell 1000 Total Return Index and Russell 1000 Value Total Return Index for the same period.

Value of $100,000 Investment vs Russell 1000 Total

Return Index & Russell 1000 Value Total

Return Index(Unaudited)

 

LOGO

 

   Average Annual Total Return
Periods Ended March 31, 2022
 
   YTD   Since
InceptionR

Brandes U.S. Value Fund

    

Class A

   -0.10%    6.35%     

Class A (with maximum sales charge)

   -5.87%    0.24% 

Class I

   -0.11%    6.14% 

Class R6

   -0.28%    6.16% 

Russell 1000 Total Return

   -5.13%    2.97% 

Russell 1000 Value Total Return

   -0.74%    5.65% 

 

R

Commencement of operations on October 1, 2021.

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. Brandes

 

40


Brandes U.S. Value Fund

 

 

Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

The sector classifications represented in the graph above 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’s Financial Services LLC.

 

41


Brandes Core Plus Fixed Income Fund

 

 

Dear Fellow Investor,

In the six months ended March 31, 2022, the Brandes Core Plus Fixed Income Fund (Class I Shares) declined 5.27%, while its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, declined 5.92%.

Boxing great Mike Tyson once said: “Everyone has a plan until they get punched in the mouth.” The swift repricing of fixed income markets in the first quarter 2022, the likes which we have not seen since the 1970s, appeared to knock the Federal Reserve (Fed) and many investors on their heels.

During this time, the Fed was forced to quickly pivot from their plan of slowly and methodically winding down the most accommodative monetary policy in their history, to aggressively updating their forecasts for future rate hikes and balance sheet reductions.

In mid-December 2021 the Fed released its closely watched “dot plot”1, which pegged the median forecast for the fed funds rate at 0.81% for year-end 2022 and 1.65% for year-end 2023. The updated March dot plot pegged the median fed funds rate at 2.05% for year-end 2022 and 2.81% for year-end 2023. This represents an abrupt upward shift in just three months and is particularly interesting in the context of the Fed’s view that the long-term normalized fed funds rate is 2.5%. The updated dot plot forecasts imply that the Fed believes that they will have to aggressively tighten above the projected long-term normalized rate to tame inflation. That is a considerable about-face from the transitory narrative that dominated their thinking for the better part of the past two years.

Market expectations have abruptly changed as well. During the fourth quarter 2021 we observed the disconnect between the Fed’s forward interest rate guidance and market expectations, noting that market expectations for the terminal fed funds rate were much lower than Fed guidance. As the market has reset future expectations guided by the newly hawkish Fed, rates have swiftly moved higher to levels not seen in several years.

After two years of a global health pandemic, during recent months the world has had to grapple with the worst outbreak of European military violence since World War II. Navigating monetary policy through this turbulent time has undoubtedly been a difficult task, but history will likely show that the Fed has simply waited too long to begin policy normalization and hence has run the risk of falling well behind the curve on inflation. Many commentators (including ourselves) have made this accusation, and we finally feel like we are no longer the old man yelling at the clouds when it comes to expressing concerns about inflation.

We have previously accused the Fed of being guilty of policy inertia and we have hoped that inertia would not lead to a policy error. It increasingly looks like the Fed has indeed made a policy error with its continuation of unprecedented stimulus well after the initial shock of the pandemic receded. As a result, taming inflation while achieving a

 

42  

Past Performance is not a guarantee of future results.


Brandes Core Plus Fixed Income Fund

 

 

soft landing for the economy has become decidedly more difficult and could lead to additional market volatility.

During the trailing six-month period ending March 31, 2022, holdings in energy (Range Resources & Occidental Petroleum), services (Prime Security Services) and healthcare (Tenet Healthcare) aided returns.

Select holdings in banking (U.S. Bank & Goldman Sachs) and telecom (Telecom Italia) detracted from returns.

The fund’s underweight to agency mortgage-backed securities (MBS) aided performance during the period.

Term-structure positioning was a positive factor in performance as interest rates rose sharply. The fund was positioned near the bottom of its duration-controlled band during the period, helping to mitigate the impact of rising rates on a relative basis.

Select Portfolio Activity

During the period, the Fund added new positions in Mauser Packaging (7.25% coupon, maturing 4/15/25, rated Caa3/CCC), Charles Schwab Inc. (5.375% coupon, perpetual, callable 6/1/25, rated Baa2/BBB), Citigroup Inc. (4.40% coupon, maturing 6/10/25, rated Baa2/BBB), Methanex Corp (5.125% coupon, maturing 10/15/27, rated Ba1/BB), Coty Inc. secured debt (5.00% coupon, maturing 4/15/26, rated B1/B+) and American Transmission System (2.65% coupon, maturing 1/15/32, rated A3/BBB).

We believe that the Charles Schwab bond that we purchased is a good example of a situation where the distinctive structure of the security presents an attractive value opportunity. This bond is a junior subordinated security – it ranks lower in the company’s capital structure. It pays a fixed-rate coupon until June 2025. If the bond is not called in June 2025, it will become a perpetual security, and its coupon will revert to a floating rate based on the 5-year U.S. Treasury rate plus 4.97% - with a quarterly reset. The reset rate will be at a yield spread that is similar to where low-quality high yield bonds generally trade.

The distinctive feature of this bond is that if Charles Schwab chooses not to call the security in June 2025, the company does not have the option to call it again for an additional five years. At today’s interest rates the coupon would reset to nearly 7%. Given the relatively high cost of a coupon reset and the limited flexibility offered to the company for future calls, we believe that this bond is best treated as a bullet security with a 3-year maturity.

Charles Schwab issued this bond in April 2020 during the early stages of the pandemic, which we believe is the likely explanation of why the bond’s structure is not representative of the strong underlying credit quality of the company. As a result, this represents an attractive value opportunity to us.

 

43


Brandes Core Plus Fixed Income Fund

 

 

Coty Inc. is a world leader in beauty with 75 brands and is home to well-known brands such as CoverGirl, Clairol and Max Factor. The company experienced turnover in the chief executive officer’s (CEO’s) chair with four different CEOs in 2020. Additionally, the pandemic affected revenues as beauty sales suffered in a world dominated by Zoom calls.

However, Coty is in the early stages of an operational turnaround centered on three key initiatives: 1) shifting the mix toward prestige brands with a focus on clean and green—i.e., CoverGirl Clean Fresh vegan makeup; 2) stabilizing its mass market beauty portfolio; and 3) reducing leverage through applying strong operational cash flows to paying down debt and divesting non-core brands.

As the pandemic recedes and more people can return to the office, travel, and engage in leisure activities, we believe Coty is well positioned to benefit from positive industry trends, as well as specific steps the company has taken to strengthen its balance sheet and product portfolio.

American Transmission System is a regulated operating company of First Energy. We believe the company’s bonds offer an attractive higher-quality position within the First Energy capital structure.

The Fund also added to existing positions in MicroStrategy, Netflix, Allison Transmission and Telecom Italia.

The Fund exited our full position in Occidental Petroleum (3.50% coupon, maturing 6/15/25, rated Ba1/BB+), experienced a full call in Range Resources (9.25% coupon, maturing 2/1/26, rated B1/BB-), and saw maturities in Microsoft Corp. and ExxonMobil.

Outlook

From a total return perspective, the performance of virtually the entire fixed income universe was quite painful during the first quarter of 2022. Interest rates moved up swiftly from a very low base, leading to negative returns across the fixed income spectrum.

As the second quarter of 2022 begins, higher yields in the market and in the Fund can help cushion some of the impact if we are in the midst of secular change to a higher rate environment. With any investment, and in particular fixed income, time horizon is important. In the short-term, interest rate increases can cause negative total returns. However, over a longer time horizon, higher rates should allow a diversified portfolio to generate a higher level of income.

For a considerable period now, we have attempted to tilt the Brandes Core Plus Fixed Income Fund into what we believe is a defensive posture in order to mitigate some of the detrimental impact of higher interest rates and wider yield spreads. The Fund continues to favor shorter-maturity corporate bonds and those that we believe exhibit strong, tangible asset coverage. We are managing duration toward the shorter end of

 

44


Brandes Core Plus Fixed Income Fund

 

 

our duration-controlled range. We have a substantial allocation to U.S. Treasuries and if recent market uncertainty and volatility continues to cause credit fundamentals to become mispriced relative to our estimates of intrinsic value, then we will look to redeploy some of those Treasury holdings thoughtfully and effectively to take advantage of opportunities.

We remain underweight Agency mortgage-backed securities. In March, the Fed finally wrapped up their temporary support for a market where they have been making outright purchases since 2008. We are cautious on this market, given that the Fed owns 37% of the universe and has been absorbing nearly 50% of supply since March 2020.2

While the amount of Agency mortgage-backed securities supply could slow if interest rates continue to move higher, it remains to be seen how the market will respond to the withdrawal of explicit central bank support.

As we move forward, we believe prudence dictates that we continue our search for value at the margins while continuing to tilt the Fund to what we believe is a relatively defensive posture.

As always, thank you for your business and continued trust.

Sincerely yours,

The Brandes Fixed Income Investment Committee

Brandes Investment Trust

1 Bloomberg, Federal Reserve, 12/15/21, and 3/17/22

2 Mortgage QE 2020-22: A Look Back and Ahead, Bloomberg Intelligence, 3/14/22

Agency mortgage-backed securities (MBS): An MBS issued by one of three quasi-governmental agencies: The Government National Mortgage Association (GNMA or Ginnie Mae), the Federal National Mortgage Association (FNMA or Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). A MBS is an investment similar to a bond that is made up of a bundle of home loans bought from the banks that issued them.

Asset Coverage: Measures how well a company can repay its debts by selling or liquidating its assets.

Bullet security: a debt investment whose entire principal value is paid in one lump sum on its maturity date, rather than amortized over its lifetime.

Cash Flow: The amount of cash generated minus the amount of cash used by a company in a given period.

Coupon: The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Dot Plot: Data points that are plotted on a graph and is used by the Federal Reserve to show its projected interest-rate outlook. Source: Investopedia

 

45


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.

Mortgage-Backed Security: A type of asset-backed security which is secured by a mortgage or collection of mortgages.

Secured Debt: Debt that is backed by collateral to reduce the risk associated with lending. Source: Investopedia

Total Return: Income plus capital appreciation.

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

Yield Spread: The net difference between two interest-bearing instruments of varying maturities, credit ratings, issuer or risk level.

Short-term debt refers to fixed income securities set to mature in 1 to 5 years from the issue or purchase date. Long-term debt refers to fixed income securities set to mature more than 10 years from the issue or purchase date.

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

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 bond market and economic conditions. Investments in small and medium capitalization companies tend to have limited liquidity and greater price volatility than large capitalization companies.

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 than higher grade debt. 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.

Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund securities except for those labeled “Not Rated” and “Other” have been

 

46


Brandes Core Plus Fixed Income Fund

 

 

rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization. All Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change.

Index securities except for those labeled “Not Rated” have been rated by Moody’s or S&P. Credit ratings are subject to change.

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 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.

One cannot invest directly in an index.

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

 

47


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 March 31, 2012 to March 31, 2022 with the value of such an investment in the Bloomberg U.S. Aggregate Bond Index for the same period.

Value of $100,000 Investment vs Bloomberg

U.S. Aggregate Bond Index (Unaudited)

 

LOGO

 

   Average Annual Total Return 
   Periods Ended March 31, 2022 
   One  Five  Ten  Since 
   Year  Years  Years  Inception(1) 

Brandes Core Plus Fixed Income Fund

     

Class A(2)

   -3.63  1.54  2.20  2.95%   

Class A (2) (with maximum sales charge)

   -7.23  0.76  1.82  2.67%   

Class I

   -3.39  1.82  2.52  3.25%   

Class R6(2)

   -2.21  2.68  2.98  3.59%   

Bloomberg Barclays U.S. Aggregate Bond Index

   -4.15  2.14  2.24  3.39%   

 

(1)

The inception date is December 28, 2007.

 

(2)

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 shown prior to October 10, 2017 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 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.

 

48


Brandes Core Plus Fixed Income 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. Brandes Investment Partners, L.P., 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, 2022 (Unaudited)

 

LOGO

 

49


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, 2021 to March 31, 2022 (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
   Annualized
Expense
Ratio
 Expenses
Paid

During
the Period

International Equity Fund

  $1,000.00   $964.60   1.11%   $5.44R

Global Equity Fund

  $1,000.00   $1,007.50   1.25%   $6.26R

Emerging Markets Value Fund

  $1,000.00   $887.30   1.31%   $6.16R

International Small Cap Fund

  $1,000.00   $897.40   1.35%   $6.39R

Small Cap Value Fund

  $1,000.00   $1,024.60   1.15%   $5.80R

U.S. Value Fund

  $1,000.00   $1,063.50   0.95%   $4.86RR

Core Plus Fixed Income Fund

  $1,000.00   $945.80   0.50%   $2.43R
   Class C

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During
the Period

International Equity Fund

  $1,000.00   $961.00   1.86%   $9.09R

Global Equity Fund

  $1,000.00   $1,003.60   2.00%   $9.99R

Emerging Markets Value Fund

  $1,000.00   $883.80   2.06%   $9.67R

International Small Cap Fund

  $1,000.00   $893.80   2.10%   $9.92R

 

50


Brandes Investment Trust

 

 

   Class I

Fund

  Beginning
Account
Value
   Ending
Account

Value
   Annualized
Expense
Ratio
 Expenses
Paid
During
the Period

International Equity Fund

  $1,000.00   $966.10   0.85%   $4.17R

Global Equity Fund

  $1,000.00   $991.40   1.00%   $4.96R

Emerging Markets Value Fund

  $1,000.00   $887.70   1.12%   $5.27R

International Small Cap Fund

  $1,000.00   $897.90   1.15%   $5.44R

Small Cap Value Fund

  $1,000.00   $1,025.80   0.90%   $4.55R

U.S. Value Fund

  $1,000.00   $1,061.40   0.70%   $3.58RR

Core Plus Fixed Income Fund

  $1,000.00   $947.40   0.30%   $1.46R
   Class R6

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During
the Period

International Equity Fund

  $1,000.00   $966.20   0.75%   $3.68R

Emerging Markets Value Fund

  $1,000.00   $889.10   0.97%   $4.57R

International Small Cap Fund

  $1,000.00   $898.30   1.00%   $4.73R

Small Cap Value Fund

  $1,000.00   $1,027.70   0.72%   $3.64R

U.S. Value Fund

  $1,000.00   $1,061.60   0.60%   $3.07RR

Core Plus Fixed Income Fund

  $1,000.00   $953.40   0.30%   $1.46R

 

R 

The Fund’s 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).

RR  

The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half-year period).

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 Funds’ 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 brokerage commissions on purchase and sales of Fund shares. 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.

 

51


Brandes Investment Trust

 

 

   Class A

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During
the Period

International Equity Fund

  $1,000.00   $1,019.40   1.11%   $5.59R

Global Equity Fund

  $1,000.00   $1,018.70   1.25%   $6.29R

Emerging Markets Value Fund

  $1,000.00   $1,018.40   1.31%   $6.59R

International Small Cap Fund

  $1,000.00   $1,018.20   1.35%   $6.79R

Small Cap Value Fund

  $1,000.00   $1,019.20   1.15%   $5.79R

U.S. Value Fund

  $1,000.00   $1,020.08   0.95%   $4.76RR

Core Plus Fixed Income Fund

  $1,000.00   $1,022.44   0.50%   $2.52R
   Class C

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During
the Period

International Equity Fund

  $1,000.00   $1,015.66   1.86%   $  9.35R

Global Equity Fund

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

Emerging Markets Value Fund

  $1,000.00   $1,014.66   2.06%   $10.35R

International Small Cap Fund

  $1,000.00   $1,014.46   2.10%   $10.55R
   Class I

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During

the Period

International Equity Fund

  $1,000.00   $1,020.69   0.85%   $4.28R

Global Equity Fund

  $1,000.00   $1,019.95   1.00%   $5.04R

Emerging Markets Value Fund

  $1,000.00   $1,019.35   1.12%   $5.64R

International Small Cap Fund

  $1,000.00   $1,019.20   1.15%   $5.79R

Small Cap Value Fund

  $1,000.00   $1,020.44   0.90%   $4.53R

U.S. Value Fund

  $1,000.00   $1,021.32   0.70%   $3.51RR

Core Plus Fixed Income Fund

  $1,000.00   $1,023.44   0.30%   $1.51R
   Class R6

Fund

  Beginning
Account
Value
   Ending
Account
Value
   Annualized
Expense
Ratio
 Expenses
Paid
During

the Period

International Equity Fund

  $1,000.00   $1,021.19   0.75%   $3.78R

Emerging Markets Value Fund

  $1,000.00   $1,020.09   0.97%   $4.89R

International Small Cap Fund

  $1,000.00   $1,019.95   1.00%   $5.04R

Small Cap Value Fund

  $1,000.00   $1,021.34   0.72%   $3.63R

U.S. Value Fund

  $1,000.00   $1,021.82   0.60%   $3.01RR

Core Plus Fixed Income Fund

  $1,000.00   $1,023.44   0.30%   $1.51R

 

R 

The Fund’s 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).

 

52


Brandes Investment Trust

 

 

RR  

The Fund’s expenses are equal to the Fund’s expense ratio for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one half-year period).

 

53


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 91.74%

 
 

Belgium – 1.49%

 
 164,338   Anheuser-Busch InBev SA/NV  $9,825,459 
    

 

 

 
 

Brazil – 5.55%

 
 3,441,600   Ambev SA   11,132,132 
 907,636   Embraer SA Sponsored – ADR(a)   11,445,290 
 1,250,800   Telefonica Brasil SA   14,105,177 
    

 

 

 
     36,682,599 
    

 

 

 
 

China – 2.49%

 
 1,203,500   Alibaba Group Holding Ltd.(a)   16,423,819 
    

 

 

 
 

France – 18.28%

 
 182,548   BNP Paribas SA   10,431,645 
 852,822   Carrefour SA   18,559,174 
 260,289   Danone SA   14,379,145 
 1,096,002   Engie SA   14,409,141 
 1,082,792   Orange SA   12,821,665 
 238,165   Publicis Groupe SA   14,455,106 
 124,687   Renault SA(a)   3,259,326 
 159,487   Sanofi   16,305,896 
 144,167   Societe BIC SA   7,283,765 
 175,660   TotalEnergies SE   8,888,318 
    

 

 

 
     120,793,181 
    

 

 

 
 

Germany – 5.92%

 
 339,841   Fresenius & Co. KGaA   12,477,763 
 219,159   HeidelbergCement AG   12,420,660 
 215,587   Henkel AG & Co. KGaA   14,229,747 
    

 

 

 
     39,128,170 
    

 

 

 
 

Hong Kong – 0.73%

 
 11,842,000   First Pacific Co. Ltd.   4,784,616 
    

 

 

 
 

Italy – 5.39%

 
 450,604   Buzzi Unicem SpA   8,338,501 
 666,439   Eni SpA   9,718,831 
 5,256,037   Intesa Sanpaolo SpA   12,029,838 
 16,264,983   Telecom Italia Rsp   5,516,594 
    

 

 

 
     35,603,764 
    

 

 

 
 

Japan – 14.59%

 
 199,800   Dai Nippon Printing Co. Ltd.   4,684,345 
Shares       Value 
 362,200   Honda Motor Co. Ltd.  $10,266,864 
 2,132,500   Mitsubishi UFJ Financial Group, Inc.(b)   13,181,282 
 400,799   MS&AD Insurance Group Holdings, Inc.   13,013,117 
 1,200,000   Nissan Motor Co. Ltd.(a)   5,331,992 
 156,900   SoftBank Group Corp.   7,014,944 
 299,200   Sumitomo Mitsui Trust Holdings, Inc.   9,737,356 
 190,900   Taisho Pharmaceutical Holdings Co. Ltd.   8,861,886 
 853,683   Takeda Pharmaceutical Co. Ltd.   24,323,327 
    

 

 

 
     96,415,113 
    

 

 

 
 

Mexico – 4.10%

  
 1,893,829   Cemex SAB de CV Sponsored – ADR(a)   10,018,355 
 14,564,736   Fibra Uno Administracion SA de CV   17,061,757 
    

 

 

 
     27,080,112 
    

 

 

 
 

Netherlands – 1.03%

  
 1,283,691   Aegon NV   6,805,016 
    

 

 

 
 

Russia – 0.20%

  
 1,013,133   Mobile TeleSystems Public Joint Stock Company(c)   1,344,897 
    

 

 

 
 

South Korea – 4.35%

  
 150,417   Hana Financial Group, Inc.   5,982,561 
 46,455   Hyundai Mobis Co. Ltd.   8,187,722 
 129,701   KT&G Corp.   8,629,015 
 24,810   POSCO   5,951,267 
    

 

 

 
     28,750,565 
    

 

 

 
 

Spain – 0.96%

  
 485,099   Repsol SA   6,354,410 
    

 

 

 
 

Switzerland – 10.98%

  
 1,836,533   Credit Suisse Group AG Registered   14,457,400 
 192,185   Novartis AG Registered   16,872,220 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

54


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

Shares       Value 
 16,342   

Swatch Group AG Bearer

  $4,633,349 
 171,045   

Swatch Group AG Registered

   9,307,632 
 107,656   

Swiss Re AG

   10,248,200 
 872,235   

UBS Group AG Registered

   17,044,613 
    

 

 

 
     72,563,414 
    

 

 

 
 

United Kingdom – 15.68%

  
 3,210,487   

Barclays Plc

   6,223,454 
 1,919,259   

BP Plc

   9,408,942 
 997,306   

GlaxoSmithKline Plc

   21,578,666 
 400,385   

Imperial Brands Plc

   8,434,009 
 3,445,836   

J Sainsbury Plc

   11,404,985 
 1,902,868   

Kingfisher Plc

   6,351,103 
 3,252,132   

Marks & Spencer Group Plc(a)

   6,563,976 
 57,832   

Reckitt Benckiser Group Plc

   4,411,770 
 691,451   

TechnipFMC Plc(a)

   5,358,745 
Shares       Value 
 3,044,705   

Tesco Plc

  $11,022,764 
 979,508   

WPP Plc

   12,819,896 
    

 

 

 
     103,578,310 
    

 

 

 
 

TOTAL COMMON STOCKS
 
(Cost $653,594,119)

  $606,133,445 
    

 

 

 
 

PREFERRED STOCKS – 5.09%

  
 

Brazil – 2.37%

  
 2,233,200   

Petroleo Brasileiro SA, 8.75%(d)

  $15,689,930 
    

 

 

 
 

Russia – 0.21%

  
 21,512,699   

Surgutneftegas PJSC, 0%(c),(d)

   1,407,942 
    

 

 

 
 

Spain – 2.51%

  
 1,399,701   

Grifols SA – Class B, 6.46%(d)

   16,552,778 
    

 

 

 
 

TOTAL PREFERRED STOCKS
 
(Cost $39,763,184)

  $33,650,650 
    

 

 

 

 

 
    Shares   Value 

SHORT-TERM INVESTMENTS – 2.49%

    

Money Market Funds — 2.49%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e)

   16,421,449   $16,421,449 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $16,421,449)

    $16,421,449 
    

 

 

 

Total Investments
(Cost $709,778,752) – 99.32%

    $656,205,544 

Other Assets in Excess of Liabilities – 0.68%

     4,522,204 
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $660,727,748 
    

 

 

 

 

 

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.

(c)

Level 3 asset.

(d)

Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.

(e)

The rate shown is the annualized seven day yield as of March 31, 2022.

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

 

55


Brandes International Equity Fund

 

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022    

 

COMMON STOCKS

  

Aerospace & Defense

   1.73

Auto Components

   1.24

Automobiles

   2.85

Banks

   8.71

Beverages

   3.18

Capital Markets

   4.77

Commercial Services & Supplies

   1.81

Construction Materials

   4.66

Diversified Telecommunication Services

   4.91

Energy Equipment & Services

   0.81

Equity Real Estate Investment Trusts

   2.58

Food & Staples Retailing

   7.20

Food Products

   2.91

Health Care Providers & Services

   1.89

Household Products

   2.82

Insurance

   4.55

Internet & Direct Marketing Retail

   2.49

Media

   4.13

Metals & Mining

   0.90

Multi-Utilities

   2.18

Oil, Gas & Consumable Fuels

   5.19

Pharmaceuticals

   13.31

Specialty Retail

   0.96

Textiles, Apparel & Luxury Goods

   2.11

Tobacco

   2.59

Wireless Telecommunication Services

   1.26
  

 

 

 

TOTAL COMMON STOCKS

   91.74
  

 

 

 

PREFERRED STOCKS

  

Biotechnology

   2.51

Oil, Gas & Consumable Fuels

   2.58
  

 

 

 

TOTAL PREFERRED STOCKS

   5.09
  

 

 

 

SHORT-TERM INVESTMENTS

   2.49
  

 

 

 

TOTAL INVESTMENTS

   99.32

Other Assets in Excess of Liabilities

   0.68
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

 

56


Brandes International Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)

 

 

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

 

57


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 98.10%

 
 

Austria – 2.63%

 
 33,629   

Erste Group Bank AG

  $1,226,332 
    

 

 

 
 

Brazil – 1.48%

  
 168,020   

Embraer SA(a)

   527,946 
 12,908   

Embraer SA Sponsored – ADR(a)

   162,770 
    

 

 

 
     690,716 
    

 

 

 
 

Chile – 0.36%

  
 5,632,734   

Enel Chile SA

   168,237 
    

 

 

 
 

China – 3.70%

  
 62,300   

Alibaba Group Holding Ltd.(a)

   850,190 
 104,698   

Gree Electric Appliances, Inc. of Zhuhai – Class A

   529,744 
 413,000   

Topsports International Holdings Ltd.

   343,261 
    

 

 

 
     1,723,195 
    

 

 

 
 

France – 10.52%

  
 29,890   

Carrefour SA

   650,468 
 28,638   

Engie SA

   376,504 
 31,200   

Engie SA(a)

   410,187 
 15,034   

Publicis Groupe SA

   912,469 
 11,262   

Sanofi

   1,151,423 
 2,650   

Schneider Electric SE

   444,909 
 19,013   

TotalEnergies SE

   962,049 
    

 

 

 
     4,908,009 
    

 

 

 
 

Germany – 1.66%

  
 13,695   

HeidelbergCement AG

   776,153 
    

 

 

 
 

Ireland – 0.82%

  
 9,567   

CRH Plc

   382,122 
    

 

 

 
 

Italy – 1.29%

  
 41,240   

Eni SpA

   601,412 
    

 

 

 
 

Japan – 1.29%

  
 21,200   

Honda Motor Co. Ltd.

   600,932 
    

 

 

 
 

Malaysia – 1.43%

  
 600,000   

Genting Berhad

   666,163 
    

 

 

 
 

Mexico – 1.68%

  
 668,608   

Fibra Uno Administracion SA de CV

   783,236 
    

 

 

 
Shares       Value 
 

South Korea – 5.75%

 
 2,433   

Hyundai Mobis Co. Ltd.

  $428,818 
 3,846   

Hyundai Motor Co.

   567,442 
 4,388   

KT&G Corp.

   291,934 
 15,353   

Samsung Electronics Co. Ltd.

   878,544 
 5,365   

SK Hynix, Inc.

   516,109 
    

 

 

 
     2,682,847 
    

 

 

 
 

Spain – 1.27%

  
 45,360   

Repsol SA

   594,180 
    

 

 

 
 

Switzerland – 3.25%

  
 77,518   

UBS Group AG Registered

   1,514,803 
    

 

 

 
 

United Kingdom – 14.20%

  
 215,586   

BP Plc

   1,056,885 
 56,721   

GlaxoSmithKline Plc

   1,227,270 
 40,460   

Imperial Brands Plc

   852,280 
 98,722   

J Sainsbury Plc

   326,749 
 164,394   

Kingfisher Plc

   548,689 
 165,615   

NatWest Group Plc

   467,753 
 14,819   

Shell Plc – ADR

   814,007 
 126,932   

Tesco Plc

   459,533 
 66,573   

WPP Plc

   871,314 
    

 

 

 
     6,624,480 
    

 

 

 
 

United States – 46.77%

  
 8,073   

Amdocs Ltd.

   663,681 
 14,017   

American International Group, Inc.

   879,847 
 28,633   

Bank of America Corp.

   1,180,252 
 9,412   

Bank of New York Mellon Corp.

   467,118 
 11,964   

Cardinal Health, Inc.

   678,359 
 15,020   

Change Healthcare, Inc.(a)

   327,436 
 4,593   

Cigna Corp.

   1,100,529 
 19,954   

Citigroup, Inc.

   1,065,544 
 17,564   

Comcast Corp. – Class A

   822,346 
 8,509   

CVS Health Corp.

   861,196 
 4,807   

Emerson Electric Co.

   471,326 
 3,158   

FedEx Corp.

   730,730 
 8,120   

Fiserv, Inc.(a)

   823,368 
 3,110   

General Dynamics Corp.

   750,070 
 20,471   

Halliburton Co.

   775,237 
 2,628   

HCA Healthcare, Inc.

   658,629 
 3,238   

JPMorgan Chase & Co.

   441,404 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

58


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 1,669   

Laboratory Corp. of America Holdings(a)

  $440,049 
 4,009   

McKesson Corp.

   1,227,275 
 14,370   

Merck & Co., Inc.

   1,179,058 
 3,316   

Mohawk Industries, Inc.(a)

   411,847 
 18,621   

Old Republic International Corp.

   481,725 
 13,977   

OneMain Holdings, Inc.

   662,650 
 21,182   

Pfizer, Inc.

   1,096,592 
 2,517   

PNC Financial Services Group, Inc.

   464,261 
 7,272   

State Street Corp.

   633,537 
 9,352   

Textron, Inc.

   695,602 
 10,604   

Truist Financial Corp.

   601,247 
 25,275   

Wells Fargo & Co.

   1,224,826 
    

 

 

 
     21,815,741 
    

 

 

 
 

TOTAL COMMON STOCKS
(Cost $37,819,337)

  $45,758,558 
    

 

 

 
Shares       Value 
 

PREFERRED STOCKS – 1.34%

  
 

South Korea – 0.34%

  
 3,072   

Samsung Electronics Co. Ltd., 2.308%(b)

  $159,177 
    

 

 

 
 

Spain – 1.00%

  
   39,892   

Grifols SA – ADR, 7.503%(b)

   465,939 
    

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $722,660)

  $625,116 
    

 

 

 

 

 

 

    Shares   Value 

SHORT-TERM INVESTMENTS – 0.45%

    

Money Market Funds — 0.45%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(c)

   209,674   $209,674 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $209,674)

    $209,674 
    

 

 

 

Total Investments
(Cost $38,751,671) – 99.89%

    $46,593,348 

Other Assets in Excess of Liabilities – 0.11%

     50,542 
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $46,643,890 
    

 

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

(a)

Non-income producing security.

(b)

Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.

(c)

The rate shown is the annualized seven day yield as of March 31, 2022.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

59


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   4.58

Air Freight & Logistics

   1.57

Auto Components

   0.92

Automobiles

   2.51

Banks

   14.31

Capital Markets

   5.61

Construction Materials

   2.48

Consumer Finance

   1.42

Electric Utilities

   0.36

Electrical Equipment

   1.96

Energy Equipment & Services

   1.66

Equity Real Estate Investment Trusts

   1.68

Food & Staples Retailing.

   3.07

Health Care Providers & Services

   10.64

Health Care Technology

   0.70

Hotels, Restaurants & Leisure

   1.43

Household Durables

   2.02

Insurance

   2.92

Internet & Direct Marketing Retail

   1.82

IT Services

   3.19

Media

   5.59

Multi-Utilities

   1.69

Oil, Gas & Consumable Fuels

   8.63

Pharmaceuticals

   9.98

Semiconductors & Semiconductor Equipment

   1.11

Specialty Retail

   1.92

Technology Hardware, Storage & Peripherals

   1.88

Tobacco

   2.45
  

 

 

 

TOTAL COMMON STOCKS

   98.10
  

 

 

 

PREFERRED STOCKS

  

Biotechnology

   1.00

Technology Hardware, Storage & Peripherals

   0.34
  

 

 

 

TOTAL PREFERRED STOCKS

   1.34
  

 

 

 

SHORT-TERM INVESTMENTS

   0.45
  

 

 

 

TOTAL INVESTMENTS

   99.89

Other Assets in Excess of Liabilities

   0.11
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

60


Brandes Global Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)

 

 

 

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

61


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 96.18%

  
 

Austria – 0.98%

  
 287,562   Erste Group Bank AG  $10,486,381 
    

 

 

 
 

Brazil – 7.66%

  
 2,591,574   Embraer SA Sponsored – ADR(a)   32,679,748 
 5,171,400   Sendas Distribuidora SA   17,694,018 
 1,125,300   Telefonica Brasil SA   12,689,923 
 163,109   Telefonica Brasil SA – ADR   1,834,976 
 5,908,900   TIM SA(a)   17,114,656 
    

 

 

 
     82,013,321 
    

 

 

 
 

Chile – 1.82%

  
 2,807,269   Empresa Nacional de Telecomunicaciones SA   12,270,206 
 161,104,262   Enel Chile SA   4,811,833 
 1,509,388   Enel Chile SA Sponsored – ADR   2,384,833 
    

 

 

 
     19,466,872 
    

 

 

 
 

China – 25.66%

  
 3,344,000   Alibaba Group Holding Ltd.(a)   45,634,608 
 18,035,000   China Education Group Holdings Ltd.   15,518,191 
 2,145,591   China South Publishing & Media Group Co. Ltd. – Class A   3,192,808 
 19,718,000   Chinasoft International Ltd.(a)   16,162,064 
 4,999,000   Galaxy Entertainment Group Ltd.   29,581,004 
 20,832,500   Genertec Universal Medical Group Co. Ltd.(b)   13,651,410 
 3,515,396   Gree Electric Appliances, Inc. of Zhuhai – Class A   17,786,976 
Shares       Value 
 1,881,646   Midea Group Co. Ltd. – Class A  $16,751,346 
 3,512,000   Ping An Insurance Group Co of China Ltd. – Class H   24,552,619 
 10,976,200   Shanghai Pharmaceuticals Holding Co. Ltd. – Class H   21,075,397 
 18,742,000   Topsports International Holdings Ltd.   15,577,223 
 15,236,000   TravelSky Technology Ltd. – Class H   21,856,715 
 6,589,000   Weichai Power Co. Ltd. – Class H   10,327,579 
 10,112,200   Wynn Macau Ltd.(a)   7,328,132 
 630,090   ZTO Express Cayman, Inc. – ADR   15,752,250 
    

 

 

 
     274,748,322 
    

 

 

 
 

Hong Kong – 4.35%

  
 2,298,800   AIA Group Ltd.   24,003,807 
 17,315,920   First Pacific Co. Ltd.   6,996,286 
 10,348,500   Lifestyle International Holdings Ltd.(a)   4,955,215 
 4,392,200   Luk Fook Holdings International Ltd.   10,651,030 
    

 

 

 
     46,606,338 
    

 

 

 
 

India – 3.99%

  
 1,062,300   HDFC Bank Ltd.   20,459,714 
 7,638,169   Indus Towers Ltd.(a)   22,266,022 
    

 

 

 
     42,725,736 
    

 

 

 
 

Indonesia – 6.54%

  
 78,235,411   Bank Rakyat Indonesia Persero Tbk PT   25,268,844 
 6,612,112   Gudang Garam Tbk PT   14,547,797 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

62


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 36,825,900   Indofood Sukses Makmur Tbk PT  $15,240,633 
 81,651,015   XL Axiata Tbk PT   15,026,767 
    

 

 

 
     70,084,041 
    

 

 

 
 

Malaysia – 2.16%

  
 20,807,000   Genting Berhad   23,101,417 
    

 

 

 
 

Mexico – 8.16%

  
 6,744,605   America Movil SAB de CV   7,161,692 
 3,981,000   Cemex SAB de CV Sponsored – ADR(a)   21,059,490 
 30,775,129   Fibra Uno Administracion SA de CV   36,051,307 
 4,086,997   Macquarie Mexico Real Estate Management SA de CV(b)   4,892,479 
 12,836,544   PLA Administradora Industrial S de RL de CV   18,077,003 
 512,122   Urbi Desarrollos Urbanos SAB de CV(a)   173,411 
    

 

 

 
     87,415,382 
    

 

 

 
 

Panama – 2.16%

  
 643,993   Banco Latinoamericano de Comercio Exterior SA – Class E   10,033,411 
 156,141   Copa Holdings SA – Class A(a)   13,059,633 
    

 

 

 
     23,093,044 
    

 

 

 
 

Philippines – 1.75%

  
 9,718,404   Bank of the Philippine Islands   18,706,214 
    

 

 

 
 

Russia – 1.76%

  
 11,121,093   Detsky Mir PJSC(c)   5,377,449 
 236,429   Lukoil PJSC Sponsored – ADR(c)   2,111,675 

 

Shares       Value 
 4,858,073   Mobile TeleSystems Public Joint Stock Company(c)  $6,448,912 
 7,919,891   Sberbank of Russia PJSC(c)   19,800 
 1,571,174   Sistema PJSFC Sponsored – GDR(c)   4,937,139 
    

 

 

 
     18,894,975 
    

 

 

 
 

South Korea – 14.59%

  
 394,434   KT&G Corp.   26,241,717 
 22,168   LG Household & Health Care Ltd.   15,637,573 
 108,324   POSCO   25,984,081 
 764,342   Samsung Electronics Co. Ltd.   43,737,929 
 621,928   Shinhan Financial Group Co. Ltd.   21,126,110 
 244,956   SK Hynix, Inc.   23,564,574 
    

 

 

 
     156,291,984 
    

 

 

 
 

Spain – 0.61%

  
 9,996,309   Prosegur Cash SA(b)   6,535,524 
    

 

 

 
 

Taiwan – 9.84%

  
 3,036,000   Accton Technology Corp.   23,343,844 
 93,000   Largan Precision Co. Ltd.   6,079,356 
 2,624,000   Taiwan Semiconductor Manufacturng Co. Ltd.   53,827,480 
 626,000   Wiwynn Corp.   22,083,029 
    

 

 

 
     105,333,709 
    

 

 

 
 

Thailand – 4.15%

  
 1,989,200   Bangkok Bank PCL – Class F   8,141,800 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

63


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 76,811,481   Jasmine Broadband Internet Infrastructure Fund – Class F  $25,411,317 
 2,263,900   

Kasikornbank PCL – Class F

   10,926,505 
    

 

 

 
     44,479,622 
    

 

 

 
 

TOTAL COMMON STOCKS
(Cost $1,266,886,473)

  $1,029,982,882 
    

 

 

 

 

Shares       Value 
 

PREFERRED STOCKS – 2.53%

  
 

Brazil – 2.53%

  
 3,864,700   

Petroleo Brasileiro SA, 8.749%(d)

  $27,152,459 
    

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $15,633,904)

  $27,152,459 
    

 

 

 

 

 
    Shares   Value 

SHORT-TERM INVESTMENTS – 1.58%

    

Money Market Funds — 1.58%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e)

   16,878,075   $16,878,075 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $16,878,075)

    $16,878,075 
    

 

 

 

Total Investments
(Cost $1,299,398,452) – 100.29%

    $1,074,013,416 

Liabilities in Excess of Other Assets – (0.29)%

     (3,119,237
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $1,070,894,179 
    

 

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

GDR Global Depositary Receipt

(a)

Non-income producing security.

(b)

Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $40,656,636 which represented 3.80% of the net assets of the Fund.

(c)

The price for this security was derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. This security represents $18,894,975 or 1.76% of the Fund’s net assets and is classified as a Level 3 security. See Note 2 in the Notes to Financial Statements.

(d)

Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.

(e)

The rate shown is the annualized seven day yield as of March 31, 2022.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

64


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   3.05

Air Freight & Logistics

   1.47

Airlines

   1.22

Banks

   10.75

Commercial Services & Supplies

   0.61

Communications Equipment

   2.18

Construction Materials

   1.97

Diversified Consumer Services

   1.45

Diversified Financial Services

   2.22

Diversified Telecommunication Services

   5.81

Electric Utilities

   0.67

Electronic Equipment, Instruments & Components

   0.57

Equity Real Estate Investment Trusts

   5.51

Food & Staples Retailing

   1.65

Food Products

   2.07

Health Care Providers & Services

   1.97

Hotels, Restaurants & Leisure

   5.60

Household Durables

   3.23

Insurance

   4.53

Internet & Direct Marketing Retail

   4.26

IT Services

   3.55

Machinery

   0.97

Media

   0.30

Metals & Mining

   2.43

Multiline Retail

   0.46

Oil, Gas & Consumable Fuels

   0.20

Personal Products

   1.46

Semiconductors & Semiconductor Equipment

   7.23

Specialty Retail

   2.96

Technology Hardware, Storage & Peripherals

   6.14

Tobacco

   3.81

Wireless Telecommunication Services

   5.88
  

 

 

 

TOTAL COMMON STOCKS

   96.18
  

 

 

 

PREFERRED STOCKS

  

Oil, Gas & Consumable Fuels

   2.53
  

 

 

 

TOTAL PREFERRED STOCKS

   2.53
  

 

 

 

SHORT-TERM INVESTMENTS

   1.58
  

 

 

 

TOTAL INVESTMENTS

   100.29

Liabilities in Excess of Other Assets

   (0.29)% 
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

65


Brandes Emerging Markets Value Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)

 

 

 

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

66


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 95.68%

  
 

Austria – 0.83%

  
 216,981   

Addiko Bank AG

  $2,856,419 
    

 

 

 
 

Belgium – 0.97%

  
 456,862   

Ontex Group NV(a)

   3,334,401 
    

 

 

 
 

Brazil – 5.10%

  
 5,580,440   

Embraer SA(a)

   17,534,658 
    

 

 

 
 

Canada – 2.97%

  
 118,787   

Cameco Corp.

   3,456,702 
 789,544   

Dorel Industries, Inc. – Class B

   6,113,495 
 35,395   

Sierra Wireless, Inc.(a)

   638,526 
    

 

 

 
     10,208,723 
    

 

 

 
 

Chile – 1.79%

  
 205,562,931   

Enel Chile SA

   6,139,716 
    

 

 

 
 

China – 1.96%

  
 12,512,900   

Boyaa Interactive International Ltd.(a)

   743,329 
 300,880   

China Yuchai International Ltd.

   3,505,252 
 8,397,000   

Weiqiao Textile Co. – Class H

   2,476,232 
    

 

 

 
     6,724,813 
    

 

 

 
 

France – 4.78%

  
 570,514   

Elior Group SA(a),(b)

   1,912,520 
 50,890   

Savencia SA

   3,422,862 
 134,780   

Societe BIC SA

   6,809,504 
 126,443   

Vicat SA

   4,285,437 
    

 

 

 
     16,430,323 
    

 

 

 
 

Germany – 0.73%

  
 46,766   

Draegerwerk AG & Co. KGaA

   2,519,009 
    

 

 

 
 

Greece – 0.55%

  
 236,992   

Sarantis SA

   1,877,025 
    

 

 

 
 

Hong Kong – 7.58%

  
 4,180,050   

APT Satellite Holdings Ltd.

   1,264,083 
 2,059,500   

Dickson Concepts International Ltd.

   1,051,664 
 66,630,000   

Emperor Watch & Jewellery Ltd.

   1,605,061 
 18,613,000   

First Pacific Co. Ltd.

   7,520,355 
Shares       Value 
 8,314,020   

PAX Global Technology Ltd.

  $6,794,644 
 25,232,000   

Pico Far East Holdings Ltd.

   3,492,353 
 2,670,500   

Yue Yuen Industrial Holdings Ltd.(a)

   4,309,183 
    

 

 

 
     26,037,343 
    

 

 

 
 

Hungary – 2.05%

  
 5,792,540   

Magyar Telekom Telecommunications Plc

   7,036,110 
    

 

 

 
 

Ireland – 6.38%

  
 3,146,582   

AIB Group Plc

   6,930,680 
 496,596   

Avadel Pharmaceuticals Plc – ADR(a)

   3,391,751 
 2,826,375   

C&C Group Plc(a)

   7,277,221 
 2,569,148   

Greencore Group Plc(a)

   4,336,825 
    

 

 

 
     21,936,477 
    

 

 

 
 

Israel – 1.18%

  
 93,929   

Taro Pharmaceutical Industries Ltd.(a)

   4,063,369 
    

 

 

 
 

Italy – 3.28%

  
 278,717   

Buzzi Unicem SpA

   5,157,704 
 549,590   

Credito Emiliano SpA

   3,613,286 
 251,174   

Leonardo SpA(a)

   2,495,960 
    

 

 

 
     11,266,950 
    

 

 

 
 

Japan – 21.22%

  
 874,600   

Concordia Financial Group Ltd.

   3,254,959 
 284,800   

DeNa Co. Ltd.

   4,326,450 
 458,900   

Fuji Media Holdings, Inc.

   4,394,305 
 38,900   

Fukuda Denshi Co. Ltd.

   2,485,232 
 301,300   

Futaba Corp.

   1,618,701 
 1,703,300   

Hachijuni Bank Ltd.

   5,643,482 
 1,335,300   

Hyakugo Bank Ltd.

   3,645,665 
 281,600   

Japan Petroleum Exploration Co. Ltd.

   5,930,778 
 96,200   

Kaken Pharmaceutical Co. Ltd.

   3,059,224 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

67


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 324,900   

Kissei Pharmaceutical Co. Ltd.

  $6,771,995 
 293,200   

Koatsu Gas Kogyo Co. Ltd.

   1,582,232 
 1,156,844   

Komori Corp.

   6,868,767 
 534,000   

Kyushu Financial Group, Inc.

   1,745,848 
 189,600   

Mitsubishi Shokuhin Co. Ltd.

   4,669,618 
 119,700   

Nichiban Co. Ltd.

   1,664,057 
 183,200   

Oita Bank Ltd.

   2,863,144 
 92,600   

Sankyo Co. Ltd.

   2,567,997 
 226,600   

Tachi-S Co. Ltd.

   1,837,754 
 100,200   

Taisho Pharmaceutical Holdings Co. Ltd.

   4,651,445 
 154,400   

Yodogawa Steel Works Ltd.

   3,313,057 
    

 

 

 
     72,894,710 
    

 

 

 
 

Malaysia – 1.40%

  
 4,333,200   

Genting Berhad

   4,811,028 
    

 

 

 
 

Mexico – 7.63%

  
 357,715   Cemex SAB de CV Sponsored – ADR(a)   1,892,312 
 24,958,198   Consorcio ARA SAB de CV   5,094,534 
 279,501,983   Desarrolladora Homex SAB de CV(a),(c)   604,253 
 11,123,149   Fibra Uno Administracion SA de CV   13,030,134 
 4,448,928   Macquarie Mexico Real Estate Management SA de CV(b)   5,325,741 
 806,929   Urbi Desarrollos Urbanos SAB de CV(a),(c)   273,236 
    

 

 

 
     26,220,210 
    

 

 

 
 

Panama – 1.58%

  
 348,146   

Banco Latinoamericano de Comercio Exterior SA – Class E

   5,424,115 
    

 

 

 
Shares       Value 
 

Slovenia – 2.09%

  
 474,148   

Nova Ljubljanska Banka – GDR(b)

  $7,186,009 
    

 

 

 
 

South Korea – 2.82%

  
 102,219   

Binggrae Co. Ltd.

   4,542,020 
 5,097   

Namyang Dairy Products Co. Ltd.

   1,686,314 
 39,595   

Samchully Co. Ltd.

   3,461,314 
    

 

 

 
     9,689,648 
    

 

 

 
 

Spain – 2.01%

  
 1,262,982   

Lar Espana Real Estate Socimi SA

   6,905,047 
    

 

 

 
 

Turkey – 1.08%

  
 3,558,239   

Ulker Biskuvi Sanayi AS

   3,717,880 
    

 

 

 
 

United Kingdom – 15.70%

  
 1,565,145   

Balfour Beatty Plc

   5,274,116 
 2,373,448   

De La Rue Plc(a)

   3,365,660 
 752,668   

ITV Plc(a)

   809,978 
 2,806,878   

J Sainsbury Plc

   9,290,170 
 903,776   

LSL Property Services Plc

   4,606,512 
 2,554,535   

Marks & Spencer Group Plc(a)

   5,155,973 
 11,438,501   

Mitie Group Plc

   8,207,415 
 1,698,234   

Premier Foods Plc

   2,543,209 
 819,654   

QinetiQ Group Plc

   3,257,230 
 641,649   

TechnipFMC Plc(a)

   4,972,780 
 1,244,657   

Yellow Cake Plc(a),(b)

   6,442,037 
    

 

 

 
     53,925,080 
    

 

 

 
 

TOTAL COMMON STOCKS
(Cost $356,660,668)

  $328,739,063 
    

 

 

 
 

PREFERRED STOCKS – 1.89%

  
 

Germany – 1.89%

  
 117,368   

Draegerwerk AG & Co. KGaA, 0.37%(d)

  $6,494,548 
    

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $7,288,587)

  $6,494,548 
    

 

 

 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

68


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 

INVESTMENT COMPANIES – 0.86%

 
 

Canada – 0.86%

  
 196,492   

Sprott Physical Uranium Trust(a)

  $2,959,600 
    

 

 

 
 

TOTAL INVESTMENT COMPANIES
(Cost $1,814,617)

  $2,959,600 
    

 

 

 
 

 

    Shares   Value 

SHORT-TERM INVESTMENTS – 1.15%

    

Money Market Funds — 1.15%

    
Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(e)   3,945,685   $3,945,685 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $3,945,685)

    $3,945,685 
    

 

 

 

Total Investments
(Cost $369,709,557) – 99.58%

    $342,138,896 

Other Assets in Excess of Liabilities – 0.42%

     1,452,096 
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $343,590,992 
    

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

GDR Global Depositary Receipt

(a)

Non-income producing security.

(b)

Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities

 

Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $20,866,306 which represented 6.07% of the net assets of the Fund.

(c)

Affiliated issuer. See Note 3 in the Notes to Financial Statements.

(d)

Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.

(e)

The rate shown is the annualized seven day yield as of March 31, 2022.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

69


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022

 

 

 

COMMON STOCKS

  

Aerospace & Defense

   6.78

Auto Components

   0.54

Banks

   10.97

Beverages

   2.12

Chemicals

   0.46

Commercial Services & Supplies

   5.84

Communications Equipment

   0.18

Construction & Engineering

   1.54

Construction Materials

   3.30

Diversified Financial Services

   1.58

Diversified Telecommunication Services

   2.42

Electric Utilities

   1.79

Electrical Equipment

   0.47

Electronic Equipment, Instruments & Components

   1.98

Energy Equipment & Services

   1.45

Entertainment

   1.48

Equity Real Estate Investment Trusts

   7.35

Food & Staples Retailing

   5.56

Food Products

   8.07

Gas Utilities

   1.01

Health Care Equipment & Supplies

   1.45

Hotels, Restaurants & Leisure

   1.96

Household Durables

   3.52

Leisure Products

   0.75

Machinery

   3.02

Media

   2.54

Metals & Mining

   0.96

Oil, Gas & Consumable Fuels

   2.74

Personal Products

   1.52

Pharmaceuticals

   6.38

Real Estate Management & Development

   1.34

Specialty Retail

   0.77

Textiles, Apparel & Luxury Goods

   1.97

Trading Companies & Distributors

   1.87
  

 

 

 

TOTAL COMMON STOCKS

   95.68
  

 

 

 

PREFERRED STOCKS

  

Health Care Equipment & Supplies

   1.89
  

 

 

 

TOTAL PREFERRED STOCKS

   1.89
  

 

 

 

INVESTMENT COMPANIES

  

Trading Companies & Distributors

   0.86
  

 

 

 

TOTAL INVESTMENT COMPANIES

   0.86
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

70


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)

 

 

 

SHORT-TERM INVESTMENTS

   1.15
  

 

 

 

TOTAL INVESTMENTS

   99.58

Other Assets in Excess of Liabilities

   0.42
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

71


Brandes International Small Cap Equity Fund

SCHEDULE OF INVESTMENTS BY INDUSTRY — March 31, 2022 (continued)

 

 

 

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

72


Brandes Small Cap Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 86.12%

  
 

Aerospace & Defense – 12.49%

  
 11,205   

Embraer SA Sponsored – ADR(a)

  $141,295 
 1,449   

Moog, Inc. – Class A

   127,222 
 1,153   

National Presto Industries, Inc.

   88,723 
 8,392   

Park Aerospace Corp.

   109,516 
    

 

 

 
     466,756 
    

 

 

 
 

Banks – 3.51%

  
 1,053   

ACNB Corp.

   36,802 
 787   

Eagle Bancorp Montana, Inc.

   17,574 
 2,063   

National Bankshares, Inc.

   76,723 
    

 

 

 
     131,099 
    

 

 

 
 

Biotechnology – 5.28%

  
 1,993   

Eagle Pharmaceuticals, Inc.(a)

   98,633 
 11,508   

PDL BioPharma, Inc.(a),(b)

   28,425 
 392   

United Therapeutics Corp.(a)

   70,329 
    

 

 

 
     197,387 
    

 

 

 
 

Commercial Services & Supplies – 1.86%

 
 3,977   

Kimball International, Inc. – Class B

   33,606 
 2,994   

Steelcase, Inc. – Class A

   35,778 
    

 

 

 
     69,384 
    

 

 

 
 

Communications Equipment – 4.68%

  
 5,972   

NETGEAR, Inc.(a)

   147,389 
 8,918   

Ribbon Communications, Inc.(a)

   27,557 
    

 

 

 
     174,946 
    

 

 

 
 

Construction & Engineering – 2.13%

  
 32,119   

Orion Group Holdings, Inc.(a)

   79,655 
    

 

 

 
 

Electric Utilities – 1.01%

  
 562   

ALLETE, Inc.

   37,643 
    

 

 

 
 

Electronic Equipment, Instruments &

  
 

Components – 2.87%

  
 6,173   

Arlo Technologies, Inc.(a)

   54,693 
 1,298   

Avnet, Inc.

   52,686 
    

 

 

 
     107,379 
    

 

 

 
Shares       Value 
 

Energy Equipment & Services – 4.89%

 
 4,895   

Dril-Quip, Inc.(a)

  $182,828 
    

 

 

 
 

Equity Real Estate Investment Trusts – 3.22%

 
 4,270   

Equity Commonwealth(a)

   120,457 
    

 

 

 
 

Food & Staples Retailing – 0.80%

  
 337   

Ingles Markets, Inc. – Class A

   30,010 
    

 

 

 
 

Health Care Equipment & Supplies – 0.63%

 
 1,354   

Invacare Corp.(a)

   1,909 
 2,918   

LENSAR, Inc.(a)

   21,593 
    

 

 

 
     23,502 
    

 

 

 
 

Health Care Providers & Services – 2.42%

 
 2,328   

MEDNAX, Inc.(a)

   54,662 
 1,007   

Premier, Inc. – Class A

   35,839 
    

 

 

 
     90,501 
    

 

 

 
 

Household Durables – 3.74%

  
 9,253   

Dorel Industries, Inc. – Class B

   71,647 
 2,497   

Taylor Morrison Home Corp.(a)

   67,968 
    

 

 

 
     139,615 
    

 

 

 
 

Insurance – 6.34%

  
 373   

American National Group, Inc.

   70,530 
 7,695   

Crawford & Co. – Class A

   58,174 
 514   

National Western Life Group, Inc. – Class A

   108,146 
    

 

 

 
     236,850 
    

 

 

 
 

IT Services – 0.48%

  
 1,340   

SolarWinds Corp.

   17,835 
    

 

 

 
 

Machinery – 10.91%

  
 3,431   

Flowserve Corp.

   123,173 
 14,874   

Graham Corp.

   114,678 
 2,613   

Hurco Companies, Inc.

   82,362 
 5,689   

L.B. Foster Co. – Class A(a)

   87,440 
    

 

 

 
     407,653 
    

 

 

 
 

Multi-Utilities – 0.97%

  
 798   

Avista Corp.

   36,030 
    

 

 

 
 

Oil, Gas & Consumable Fuels – 4.79%

  
 983   

Chesapeake Energy Corp.

   85,521 
 3,457   

World Fuel Services Corp.

   93,477 
    

 

 

 
     178,998 
    

 

 

 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

73


Brandes Small Cap Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 

Personal Products – 4.03%

  
 4,111   

Edgewell Personal Care Co.

  $150,750 
    

 

 

 
 

Pharmaceuticals – 5.56%

  
 4,197   

Avadel Pharmaceuticals Plc –ADR(a)

   28,666 
 4,621   

Phibro Animal Health Corp. – Class A

   92,189 
 1,644   

Prestige Consumer Healthcare, Inc.(a)

   87,033 
    

 

 

 
     207,888 
    

 

 

 
 

Professional Services – 3.08%

  
 1,916   

Kelly Services, Inc. – Class A

   41,558 
 2,162   

Resources Connection, Inc.

   37,057 
 395   

Science Applications International Corp.

   36,407 
    

 

 

 
     115,022 
    

 

 

 
Shares       Value 
 

Software – 0.43%

  
 1,781   

N-Able, Inc.(a)

  $16,207 
    

 

 

 
 

TOTAL COMMON STOCKS
(Cost $ 3,015,966)

  $3,218,395 
    

 

 

 
 

INVESTMENT COMPANIES – 2.10%

 
 

Trading Companies & Distributors – 2.10%

 
 5,206   

Sprott Physical Uranium Trust(a)

  $78,413 
    

 

 

 
 

TOTAL INVESTMENT COMPANIES
(Cost $ 52,994)

  $78,413 
    

 

 

 
 

 

    Principal
Amount
   Value 

CORPORATE BONDS – 0.35%

    

Multi-Utilities – 0.35%

    

Avista Corp.
5.125%, 4/1/2022

  $13,000   $13,000 
    

 

 

 

TOTAL CORPORATE BONDS
(Cost $13,000)

    $13,000 
    

 

 

 
    Shares   Value 

SHORT-TERM INVESTMENTS – 10.92%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%, (c)

   408,112   $408,112 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $408,112)

    $408,112 
    

 

 

 

Total Investments (Cost $3,490,072) – 99.49%

    $3,717,920 

Other Assets in Excess of Liabilities – 0.51%

     18,932 
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $3,736,852 
    

 

 

 

 

Percentages are stated as a percent of net assets.

ADR American Depositary Receipt

(a)

Non-income producing security.

(b)

The price for this security was derived from an estimate of fair market value using methods approved by the Fund’s Board of Trustees. This security represents $28,425 or 0.76% of the Fund’s net assets and is classified as a Level 3 security. See Note 2 in the Notes to Financial Statements.

(c)

The rate shown is the annualized seven day yield as of March 31, 2022.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

74


Brandes Small Cap Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

75


Brandes Small Cap Value Fund

SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2022

 

 

 

COMMON STOCKS

  

Brazil

   3.78

Canada

   1.92

Ireland

   0.77

United States

   79.65
  

 

 

 

TOTAL COMMON STOCKS

   86.12
  

 

 

 

CORPORATE BONDS

  

United States

   0.35
  

 

 

 

TOTAL CORPORATE BONDS

   0.35
  

 

 

 

INVESTMENT COMPANIES

  

Canada

   2.10
  

 

 

 

TOTAL INVESTMENT COMPANIES

   2.10
  

 

 

 

SHORT-TERM INVESTMENTS

   10.92
  

 

 

 

TOTAL INVESTMENTS

   99.49

Other Assets in Excess of Liabilities

   0.51
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

76


Brandes U.S. Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

Shares       Value 
 

COMMON STOCKS – 98.02%

  
 

Aerospace & Defense – 4.35%

  
 493   

General Dynamics Corp.

  $118,902 
 1,376   

Textron, Inc.

   102,347 
    

 

 

 
     221,249 
    

 

 

 
 

Air Freight & Logistics – 2.51%

  
 552   

FedEx Corp.

   127,727 
    

 

 

 
 

Banks – 12.92%

  
 3,266   

Bank of America Corp.

   134,625 
 2,304   

Citigroup, Inc.

   123,034 
 591   

JPMorgan Chase & Co.

   80,565 
 470   

PNC Financial Services Group, Inc.

   86,691 
 1,739   

Truist Financial Corp.

   98,601 
 2,744   

Wells Fargo & Co.

   132,974 
    

 

 

 
     656,490 
    

 

 

 
 

Building Products – 1.04%

  
 806   

Johnson Controls International Plc

   52,849 
    

 

 

 
 

Capital Markets – 3.24%

  
 1,763   

Bank of New York Mellon Corp.

   87,498 
 887   

State Street Corp.

   77,275 
    

 

 

 
     164,773 
    

 

 

 
 

Chemicals – 2.83%

  
 1,626   

Corteva, Inc.

   93,463 
 408   

Westlake Corp.

   50,347 
    

 

 

 
     143,810 
    

 

 

 
 

Communications Equipment – 1.15%

  
 1,047   

Cisco Systems, Inc.

   58,381 
    

 

 

 
 

Consumer Finance – 1.92%

  
 2,062   

OneMain Holdings, Inc.

   97,759 
    

 

 

 
 

Diversified Financial Services – 1.51%

 
 218   

Berkshire Hathaway, Inc. – Class B(a)

   76,934 
    

 

 

 
 

Electric Utilities – 0.74%

  
 562   

ALLETE, Inc.

   37,643 
    

 

 

 
 

Electrical Equipment – 1.93%

  
 1,001   

Emerson Electric Co.

   98,148 
    

 

 

 
Shares       Value 
 

Electronic Equipment, Instruments & Components – 2.60%

  
 1,233   

Avnet, Inc.

  $50,048 
 4,415   

Flex Ltd.(a)

   81,898 
    

 

 

 
     131,946 
    

 

 

 
 

Energy Equipment & Services – 2.86%

 
 3,841   

Halliburton Co.

   145,459 
    

 

 

 
 

Food Products – 1.93%

  
 1,126   

Ingredion, Inc.

   98,131 
    

 

 

 
 

Health Care Providers & Services – 12.34%

 
 1,430   

Cardinal Health, Inc.

   81,081 
 574   

Cigna Corp.

   137,536 
 1,294   

CVS Health Corp.

   130,966 
 284   

HCA Healthcare, Inc.

   71,176 
 243   

Laboratory Corp. of America Holdings(a)

   64,070 
 464   

McKesson Corp.

   142,044 
    

 

 

 
     626,873 
    

 

 

 
 

Health Care Technology – 1.08%

  
 2,525   

Change Healthcare, Inc.(a)

   55,045 
    

 

 

 
 

Household Durables – 3.01%

  
 638   

Mohawk Industries, Inc.(a)

   79,239 
 2,708   

Taylor Morrison Home Corp.(a)

   73,712 
    

 

 

 
     152,951 
    

 

 

 
 

Industrial Conglomerates – 0.84%

  
 286   

3M Co.

   42,580 
    

 

 

 
 

Insurance – 5.92%

  
 1,923   

American International Group, Inc.

   120,707 
 817   

Loews Corp.

   52,958 
 2,830   

Old Republic International Corp.

   73,212 
 229   

Willis Towers Watson Plc

   54,094 
    

 

 

 
     300,971 
    

 

 

 
 

Interactive Media & Services – 1.27%

  
 23   

Alphabet, Inc. – Class C(a)

   64,239 
    

 

 

 
 

IT Services – 6.83%

  
 1,604   

Amdocs Ltd.

   131,865 
 1,046   

Cognizant Technology Solutions Corp. – Class A

   93,795 
 1,197   

Fiserv, Inc.(a)

   121,376 
    

 

 

 
     347,036 
    

 

 

 
 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

77


Brandes U.S. Value Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

Shares       Value 
 

Machinery – 0.99%

  
 3,322   

Gates Industrial Corp. Plc(a)

  $50,029 
    

 

 

 
 

Media – 6.32%

  
 2,950   

Comcast Corp. – Class A

   138,119 
 2,003   

Fox Corp. – Class B

   72,669 
 1,300   

Omnicom Group, Inc.

   110,344 
    

 

 

 
     321,132 
    

 

 

 
 

Oil, Gas & Consumable Fuels – 5.34%

  
 1,144   

Chevron Corp.

   186,278 
 3,154   

World Fuel Services Corp.

   85,284 
    

 

 

 
     271,562 
    

 

 

 
 

Pharmaceuticals – 7.01%

  
 528   

Johnson & Johnson

   93,577 
 1,648   

Merck & Co., Inc.

   135,218 
 2,463   

Pfizer, Inc.

   127,510 
    

 

 

 
     356,305 
    

 

 

 
Shares       Value 
 

Semiconductors & Semiconductor Equipment – 3.09%

 
 240   

Applied Materials, Inc.

  $31,632 
 839   

Micron Technology, Inc.

   65,350 
 483   

Qorvo, Inc.(a)

   59,940 
    

 

 

 
     156,922 
    

 

 

 
 

Software – 1.12%

  
 92   

Microsoft Corp.

   28,364 
 346   

Oracle Corp.

   28,625 
    

 

 

 
     56,989 
    

 

 

 
 

Specialty Retail – 1.33%

  
 33   

AutoZone, Inc.(a)

   67,471 
    

 

 

 
 

TOTAL COMMON STOCKS
(Cost $ 5,098,686)

  $4,981,404 
    

 

 

 
 

 

    Shares   Value 

SHORT-TERM INVESTMENTS – 2.10%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%, (b)

   106,638   $106,638 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $106,638)

    $106,638 
    

 

 

 

Total Investments (Cost $5,205,324) – 100.12%

    $5,088,042 

Liabilities in Excess of Other Assets – (0.12)%

     (6,006
    

 

 

 

TOTAL NET ASSETS – 100.00%

    $5,082,036 
    

 

 

 

 

Percentages are stated as a percent of net assets.

(a)

Non-income producing security.

(b)

The rate shown is the annualized seven day yield as of March 31, 2022.

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’s Financial Services LLC or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

78


Brandes U.S. Value Fund

SCHEDULE OF INVESTMENTS BY COUNTRY — March 31, 2022

 

 

 

COMMON STOCKS

  

Ireland

   2.10

Singapore

   1.61

United Kingdom

   0.99

United States

   93.32
  

 

 

 

TOTAL COMMON STOCKS

   98.02
  

 

 

 

SHORT-TERM INVESTMENTS

   2.10
  

 

 

 

TOTAL INVESTMENTS

   100.12

Liabilities in Excess of Other Assets

   (0.12)% 
  

 

 

 

TOTAL NET ASSETS

   100.00
  

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

79


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited)

 

 

 

    Shares   Value 

COMMON STOCKS – 0.00%

    

Household Durables – 0.00%

    

Urbi Desarrollos Urbanos SAB de CV (a)

   1,564   $530 
    

 

 

 

TOTAL COMMON STOCKS

(Cost $292,050)

    $530 
    

 

 

 
    

Principal

Amount

   Value 

FEDERAL AND FEDERALLY SPONSORED CREDITS – 4.99%

    

Federal Home Loan Mortgage Corporation – 1.62%

    

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

  $44,524   $47,413 

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

   13,934    15,152 

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

   607,749    613,067 

Pool SD-8001 3.500%, 7/1/2049

   194,701    195,763 

Pool SD-8003 4.000%, 7/1/2049

   240,630    245,938 
    

 

 

 
     1,117,333 
    

 

 

 

Federal National Mortgage Association – 3.37%

    

Pool 934124 5.500%, 7/1/2038

   35,932    39,595 

Pool AL9865 3.000%, 2/1/2047

   713,596    708,464 

Pool AS6201 3.500%, 11/1/2045

   237,549    242,071 

Pool BJ2553 3.500%, 12/1/2047

   198,956    201,411 

Pool BN6683 3.500%, 6/1/2049

   393,514    395,553 

Pool CA1624 3.000%, 4/1/2033

   472,120    477,031 

Pool MA0918 4.000%, 12/1/2041

   95,053    99,194 

Pool MA3687 4.000%, 6/1/2049

   162,315    165,897 
    

 

 

 
     2,329,216 
    

 

 

 

TOTAL FEDERAL AND FEDERALLY SPONSORED CREDITS

(Cost $3,425,361)

    $3,446,549 
    

 

 

 

OTHER MORTGAGE RELATED SECURITIES – 0.00%

    

Collateralized Mortgage Obligations – 0.00%

    

Wells Fargo Mortgage Backed Securities Trust Series 2006-AR14 2.915%, 10/25/2036(b)

  $423   $395 
    

 

 

 

TOTAL OTHER MORTGAGE RELATED SECURITIES

(Cost $416)

    $395 
    

 

 

 

US GOVERNMENTS – 53.68%

    

Sovereign – 53.68%

    

United States Treasury Note

    

2.375%, 8/15/2024

  $2,660,000   $2,653,870 

2.250%, 2/15/2027

   9,075,000    8,979,996 

2.375%, 5/15/2029

   15,900,000    15,854,039 

United States Treasury Bond

    

4.750%, 2/15/2037

   5,775,000    7,534,570 

3.500%, 2/15/2039

   1,750,000    2,004,980 
    

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

80


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

    Principal
Amount
   Value 

TOTAL US GOVERNMENTS

(Cost $ 38,323,129)

    $  37,027,455 
    

 

 

 

CONVERTIBLE BONDS – 1.59%

    

Technology – 1.59%

    

MicroStrategy, Inc.

0.000%, 2/15/2027(c)

  $1,540,000   $1,100,142 
    

 

 

 

TOTAL CONVERTIBLE BONDS

(Cost $ 1,137,176)

    $1,100,142 
    

 

 

 

CORPORATE BONDS – 35.50%

    

Banks – 7.06%

    

Charles Schwab Corp.

5.375% (U.S. Treasury Yield Curve Rate CMT 5Y + 4.971%), Perpetual(d)

  $465,000   $478,950 

Citigroup, Inc.

4.400%, 6/10/2025

   730,000    750,949 

Fifth Third Bancorp

8.250%, 3/1/2038

   175,000    258,537 

Goldman Sachs Group, Inc.

3.800% (U.S. Treasury Yield Curve Rate CMT 5Y + 2.969%), Perpetual(d)

   585,000    542,222 

JPMorgan Chase & Co.

3.769% (3M LIBOR + 3.470%), Perpetual(d)

   1,317,000    1,317,000 

USB Capital IX

3.500% (3M LIBOR + 1.020%, minimum of 3.500%), Perpetual(d)

   1,830,000    1,520,037 
    

 

 

 
     4,867,695 
    

 

 

 

Commercial Services & Supplies – 1.94%

    

Iron Mountain, Inc.

4.875%, 9/15/2027(e)

   645,000    637,744 

Travel + Leisure Co.

6.625%, 7/31/2026(e)

   670,000    698,475 
    

 

 

 
     1,336,219 
    

 

 

 

Consumer Products – 8.34%

    

Avon Products, Inc.

6.500%, 3/15/2023

   1,625,000    1,639,332 

Coty, Inc.

5.000%, 4/15/2026(e)

   821,000    799,449 

Ford Motor Credit Co. LLC

    

3.350%, 11/1/2022

   370,000    370,851 

3.375%, 11/13/2025

   350,000    342,106 

Pilgrim’s Pride Corp.

    

5.875%, 9/30/2027(e)

   210,000    211,972 

4.250%, 4/15/2031(e)

   625,000    578,125 

PulteGroup, Inc.

5.500%, 3/1/2026

   980,000    1,042,583 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

81


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

    Principal
Amount
   Value 

Toll Brothers Finance Corp.

4.875%, 11/15/2025

  $745,000   $767,166 
    

 

 

 
     5,751,584 
    

 

 

 

Containers & Packaging – 0.61%

    

Sealed Air Corp.

4.000%, 12/1/2027(e)

   430,000    419,250 
    

 

 

 

Electric Utilities – 1.54%

    

American Transmission Systems, Inc.

2.650%, 1/15/2032(e)

   600,000    554,518 

Commonwealth Edison Co.

5.900%, 3/15/2036

   175,000    214,801 

FirstEnergy Corp.

7.375%, 11/15/2031

   240,000    296,007 
    

 

 

 
     1,065,326 
    

 

 

 

Hardware – 0.45%

    

Mauser Packaging Solutions Holding Co.

7.250%, 4/15/2025(e)

   310,000    307,244 
    

 

 

 

Health Care Facilities & Services – 1.51%

    

Tenet Healthcare Corp.

4.875%, 1/1/2026(e)

   1,030,000    1,039,013 
    

 

 

 

Industrial Services – 2.36%

    

Continental Airlines Pass Through Trust Series 2007-1

5.983%, 4/19/2022

   6,008    6,017 

Prime Security Services Borrower LLC

    

5.750%, 4/15/2026(e)

   715,000    729,425 

6.250%, 1/15/2028(e)

   915,000    895,414 
    

 

 

 
     1,630,856 
    

 

 

 

Media – 1.53%

    

Charter Communications Operating LLC

4.908%, 7/23/2025

   295,000    305,918 

Netflix, Inc.

4.375%, 11/15/2026

   720,000    748,753 
    

 

 

 
     1,054,671 
    

 

 

 

Oil, Gas & Consumable Fuels – 3.44%

    

BP Capital Markets Plc

3.506%, 3/17/2025

   810,000    825,421 

Continental Resources, Inc.

    

4.500%, 4/15/2023

   355,000    359,260 

4.375%, 1/15/2028

   215,000    217,967 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

82


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

    Principal
Amount
   Value 
Range Resources Corp.
4.875%, 5/15/2025
  $960,000   $971,679 
    

 

 

 
     2,374,327 
    

 

 

 
Technology – 1.78%    
VMware, Inc.
4.500%, 5/15/2025
   215,000    221,470 
3.900%, 8/21/2027   995,000    1,007,859 
    

 

 

 
     1,229,329 
    

 

 

 
Telecommunications – 4.40%    
AT&T, Inc.
3.000%, 6/30/2022
   1,630,000    1,631,878 
Sprint Spectrum Co. LLC
5.152%, 3/20/2028(e)
   415,000    436,993 
Telecom Italia Capital SA
6.375%, 11/15/2033
   695,000    664,232 
T-Mobile USA, Inc.
4.750%, 2/1/2028
   300,000    304,920 
    

 

 

 
     3,038,023 
    

 

 

 
Transportation & Logistics – 0.54%    
Allison Transmission, Inc. 4.750%, 10/1/2027(e)   380,000    373,825 
    

 

 

 

TOTAL CORPORATE BONDS

(Cost $24,720,007)

    $24,487,362 
    

 

 

 
ASSET BACKED SECURITIES – 1.75%    
Student Loan – 1.75%    
SLM Private Credit Student Loan Trust Series 2007-A, 1.066%, (3M LIBOR + 0.240%), 12/16/2041(d)  $179,794   $174,314 
SLM Private Credit Student Loan Trust Series 2004-B, 1.256%, (3M LIBOR + 0.430%), 9/15/2033(d)   300,000    289,381 
SLM Private Credit Student Loan Trust Series 2005-A, 1.136%, (3M LIBOR + 0.310%), 12/15/2038(d)   293,220    286,952 
SLM Private Credit Student Loan Trust Series 2006-A, 1.116%, (3M LIBOR + 0.290%), 6/15/2039(d)   477,182    458,843 
    

 

 

 
TOTAL ASSET BACKED SECURITIES
(Cost $1,160,817)
    $1,209,490 
    

 

 

 
FOREIGN ISSUER BONDS – 0.65%    
Materials – 0.37%    
Methanex Corp.,
5.125%, 10/15/2027
  $250,000   $251,250 
    

 

 

 
Telecommunications – 0.28%    
SoftBank Group Corp.,
4.750%, 9/19/2024
   200,000    195,000 
    

 

 

 
TOTAL FOREIGN ISSUER BONDS
(Cost $458,519)
    $446,250 
    

 

 

 

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

83


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

    Shares   Value 

SHORT-TERM INVESTMENTS – 1.23%

    

Money Market Funds – 1.23%

    

Northern Institutional Funds - Treasury Portfolio (Premier), 0.12%(f)

   846,688   $846,688 
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS

(Cost $846,688)

    $846,688 
 ��  

 

 

 

Total Investments (Cost $70,364,163) – 99.39%

    $68,564,861 

Other Assets in Excess of Liabilities – 0.61%

     417,431 
    

 

 

 

Total Net Assets – 100.00%

    $68,982,292 
    

 

 

 

 

Percentages are stated as a percent of net assets.

LIBOR London Interbank Offered Rate

 

(a)

Non-income producing security.

(b)

Variable rate security. The coupon is based on an underlying pool of loans.

(c)

Zero coupon bond.

(d)

Variable rate security. The coupon is based on a reference index and spread index.

(e)

Acquired in a transaction exempt from registration under Rule 144A or Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $7,681,446 which represented 11.14% of the net assets of the Fund.

(f)

The rate shown is the annualized seven day yield as of March 31, 2022.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

84


Brandes Core Plus Fixed Income Fund

SCHEDULE OF INVESTMENTS — March 31, 2022 (Unaudited) (continued)

 

 

 

The industry classifications represented in the Schedule of Investments are in accordance with Bloomberg Industry Classification Standards (BICS) or were otherwise determined by the Advisor to be appropriate. This information is unaudited.

 

The accompanying notes to financial statements are an integral part of these Schedule of Investments.

85


Brandes Investment Trust

STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2022 (Unaudited)

 

 

 

   Brandes
International
Equity Fund
   Brandes
Global
Equity Fund

ASSETS

    

Investment in securities, at value(1), (2)

    

Unaffiliated issuers

  $656,205,544    $46,593,348 

Affiliated issuers

        

Foreign Currency(1)

   255,001    25,767 

Receivables:

    

Securities sold

        

Fund shares sold

   386,368    1,557 

Dividends and interest

   3,561,842    141,289 

Tax reclaims

   1,695,468    51,883 

Securities lending

   1,612    104 

Receivable from service providers

   12,573    476 

Prepaid expenses and other assets

   92,201    36,489 

Due from Advisor

        
  

 

 

   

 

 

 

Total Assets

   662,210,609    46,850,913 
  

 

 

   

 

 

 

LIABILITIES

    

Payables:

    

Securities purchased

   74    7 

Fund shares redeemed

   821,868    94,092 

12b-1 Fee

   13,996    694 

Trustee Fees

   19,151    1,351 

Custodian Fee

   19,842    1,461 

Foreign capital gains taxes

        

Dividends payable

   28,008    927 

Accrued expenses

   206,861    84,159 

Due to Advisor

   373,061    24,332 
  

 

 

   

 

 

 

Total Liabilities

   1,482,861    207,023 
  

 

 

   

 

 

 

NET ASSETS

  $660,727,748    $46,643,890 
  

 

 

   

 

 

 

COMPONENTS OF NET ASSETS

    

Paid in Capital

  $787,809,016    $38,646,614 

Total distributable earnings (loss)

   (127,081,268   7,997,276 
  

 

 

   

 

 

 

Total Net Assets

  $660,727,748    $46,643,890 
  

 

 

   

 

 

 

Net asset value, offering price and redemption proceeds per share

    

Class A Shares

    

Net Assets

  $45,730,851    $868,697 

Shares outstanding (unlimited shares authorized without par value)

   2,659,081    33,960 

Offering and redemption price

  $17.20    $25.58 
  

 

 

   

 

 

 

Maximum offering price per share*

  $18.25    $27.14 
  

 

 

   

 

 

 

Class C Shares

    

Net Assets

  $8,211,196    $800,469 

Shares outstanding (unlimited shares authorized without par value)

   486,546    31,686 

Offering and redemption price

  $16.88    $25.26 
  

 

 

   

 

 

 

Class I Shares

    

Net Assets

  $554,269,978    $44,974,724 

Shares outstanding (unlimited shares authorized without par value)

   31,972,320    1,738,897 

Offering and redemption price

  $17.34    $25.86 
  

 

 

   

 

 

 

Class R6 Shares

    

Net Assets

  $52,515,723    $N/A 

Shares outstanding (unlimited shares authorized without par value)

   3,007,584    N/A 

Offering and redemption price

  $17.46    $N/A 
  

 

 

   

 

 

 

(1) Cost of:

    

Investments in securities

    

Unaffiliated issuers

  $709,778,752    $38,751,671 

Affiliated issuers

        

Foreign currency

   254,966    25,767 

(2) Market value of securities loaned of:

  $13,224,469    $ 

 

*

Includes a sales load of 5.75% for the International, Global, Emerging Markets, International Small Cap, Small Cap Value, and U.S. Value Funds and 3.75% for the Core Plus Fund. (see Note 7 of the Notes to Financial Statements)

 

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

86


Brandes Investment Trust

STATEMENTS OF ASSETS AND LIABILITIES — March 31, 2022 (Unaudited) (continued)

 

 

 

Brandes

Emerging

Markets

Value Fund

  Brandes
International
Small Cap
Equity Fund
  Brandes
Small Cap
Value Fund
  Brandes
U.S. Value
Fund
  Brandes
Core Plus Fixed
Income Fund
    
$1,074,013,416   $341,261,407   $3,717,920  $5,088,042    $68,564,861 
    877,489          
 182,722   132          
 8,230,337   1,542,437   27,509       
 867,153   213,957   28,468   5,582   90,903 
 6,059,674   1,883,153   3,697   6,014   497,736 
 184,109   393,952      117    
    7,487          
 25,412   5,189         1,308 
 130,617   70,919   33,961   934   35,351 
       6,620   5,564    

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 1,089,693,440   346,256,122   3,818,175   5,106,253   69,190,159 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
    
 10,992,831   1,257,401   30,079       
 4,229,047   879,103   14,479      76,074 
 43,042   15,682   181   22   178 
 33,908   10,686   87   10   2,155 
 57,628   18,018      90   886 
 926,804             
 1,280,304   9,815   1      1,692 
 384,327   195,105   36,496   24,095   126,157 
 851,370   279,320         725 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 18,799,261   2,665,130   81,323   24,217   207,867 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

$1,070,894,179   $343,590,992   $3,736,852  $5,082,036    $68,982,292 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$1,466,166,758   $526,087,041   $3,528,407  $5,192,726    $72,155,859 
 (395,272,579  (182,496,049  208,445   (110,690  (3,173,567

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

$1,070,894,179   $343,590,992   $3,736,852  $5,082,036    $68,982,292 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$ 177,146,654   $60,348,689   $889,280  $105,948    $818,095 
 23,442,039   5,018,225   69,231   10,026   93,533 
$7.56   $12.03   $12.85  $10.57    $8.75 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

$8.02   $12.76   $13.63  $11.21    $9.09 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$7,845,447   $4,411,821   $N/A  $N/A    $N/A 
 1,048,641   381,248   N/A   N/A   N/A 
$7.48   $11.57   $N/A  $N/A    $N/A 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$ 827,656,545   $266,173,255   $2,847,411  $4,975,982    $68,164,099 
 108,865,383   22,010,888   219,362   471,520   7,717,282 
$7.60   $12.09   $12.98  $10.55    $8.83 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$ 58,245,533   $12,657,227   $161  $106    $98 
 7,603,714   1,043,171   13   10   11 
$7.66   $12.13   $12.18  $10.57    $8.83 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

    
$1,299,398,452   $338,826,683   $3,490,072  $5,205,324    $70,364,163 
    30,882,874          
 182,729   132          
$   $   $  $    $ 

 

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

87


Brandes Investment Trust

STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2022 (Unaudited)

 

 

 

   Brandes
International
Equity Fund
  Brandes
Global
Equity Fund

INVESTMENT INCOME

    

Income

    

Dividend income

    

Unaffiliated issuers

   $9,720,871     $609,762 

Non Cash Dividends

        

Less: Foreign taxes withheld

   (802,218   (28,203

Interest income

       249 

Income from securities lending

   30,143    709 
  

 

 

 

  

 

 

 

Total Income

   8,948,796    582,517 
  

 

 

 

  

 

 

 

Expenses

    

Advisory fees (Note 3)

   2,489,665    193,838 

Custody fees

   39,305    2,454 

Administration fees (Note 3)

   78,484    13,660 

Insurance expense

   11,102    811 

Legal fees

   32,823    2,376 

Printing fees

   17,352    758 

Miscellaneous

   41,186    6,298 

Registration expense

   42,252    27,631 

Trustees fees

   37,149    2,679 

Transfer agent fees

   69,928    5,104 

12b-1 Fees – Class A

   49,698    1,068 

12b-1 Fees – Class C

   32,401    3,286 

Shareholder Service Fees – Class C

   10,800    1,095 

Sub-Transfer Agency Fees – Class I

   139,662    11,683 

Auditing fees

   23,213    22,111 
  

 

 

 

  

 

 

 

Total expenses

   3,115,020    294,852 

Expenses waived by Advisor

   (201,868   (45,819

Expenses recouped

        

Expenses waived by Service Providers

   (23,528   (1,255
  

 

 

 

  

 

 

 

Total net expenses

   2,889,624    247,778 
  

 

 

 

  

 

 

 

Net investment income

   6,059,172    334,739 
  

 

 

 

  

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

    

Net realized gain (loss) on:

    

Unaffiliated investments

   1,060,378    677,818 

Foreign currency transactions

   (153,166   (2,010
  

 

 

 

  

 

 

 

Net realized gain (loss)

   907,212    675,808 
  

 

 

 

  

 

 

 

Net change in unrealized appreciation (depreciation) on:

    

Unaffiliated investments (net of increase in estimated foreign capital gains taxes of $3,797,746 for the Emerging Markets Fund)

   (30,843,777   (625,011

Affiliated investments

        

Foreign currency transactions

   25,817    (2,231
  

 

 

 

  

 

 

 

Net change in unrealized appreciation (depreciation)

   (30,817,960   (627,242
  

 

 

 

  

 

 

 

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

   (29,910,748   48,566 
  

 

 

 

  

 

 

 

Net increase (decrease) in net assets resulting from operations

   $(23,851,576    $383,305 
  

 

 

 

  

 

 

 

 

*

Commencement of operations on October 1, 2021.

 

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

88


Brandes Investment Trust

STATEMENTS OF OPERATIONS — For the Six Months Ended March 31, 2022 (Unaudited) (continued)

 

 

 

Brandes
Emerging
Markets
Value Fund

  Brandes
International
Small Cap
Equity Fund
 Brandes
Small Cap
Value Fund
 Brandes
U.S. Value
Fund*
 Brandes
Core Plus Fixed
Income Fund
    
    
    
$ 20,726,166   $12,298,478    $66,832   $18,004    $85 
              
 (3,342,561  (1,728,430  (6,806     (2
       25      1,008,366 
    229,264          

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 17,383,605   10,799,312   60,051   18,004   1,008,449 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
 5,824,500   1,768,638   10,289   4,353   134,302 
 110,448   38,099   3,122   467   1,732 
 137,735   47,782   8,865   4,523   16,640 
 22,228   6,712   42   5   1,388 
 62,991   19,191   133   11   3,866 
 48,823   14,773   75   262   2,174 
 89,523   35,924   2,900   17,207   6,840 
 49,719   40,342   27,703   2,587   27,803 
 70,378   21,250   156   18   4,333 
 129,180   39,226   310   166   8,084 
 257,993   80,812   871   34   2,223 
 35,237   18,240          
 11,746   6,080          
 236,084   72,448   561   236   18,742 
 23,864   22,917   20,465   21,032   21,578 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 7,110,449   2,232,434   75,492   50,901   249,705 
 (39,535  (6,384  (61,320  (45,211  (111,043
 36,235             
 (47,208  (12,077  (28     (21,811

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 7,059,941   2,213,973   14,144   5,690   116,851 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 10,323,664   8,585,339   45,907   12,314   891,598 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
    
 (37,139,257  10,252,949   55,307   4,452   157,346 
 (178,667  (19,714  376       

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (37,317,924  10,233,235   55,683   4,452   157,346 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
 (112,600,286  (58,584,189  (43,007  (117,282  (5,107,510
    (418,431         
 (20,722  (24,231  15       

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (112,621,008  (59,026,851  (42,992  (117,282  (5,107,510

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (149,938,932  (48,793,616  12,691   (112,830  (4,950,164

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$(139,615,268  $(40,208,277   $58,598   $(100,516   $(4,058,566

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

89


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS

 

 

 

   Brandes International Equity Brandes Global
   Fund Equity Fund
   Six Months Ended
March 31,

2022
(Unaudited)
 Year Ended
September 30,
2021
 Six Months Ended
March 31,

2022
(Unaudited)
 Year Ended
September 30,
2021

INCREASE (DECREASE) IN NET ASSETS FROM:

     

OPERATIONS

     

Net investment income

      $6,059,172    $19,498,943      $334,739    $1,021,630 

Net realized gain (loss) on:

     

Investments

   1,060,378   (474,713  677,818   1,871,263 

Foreign currency transactions

   (153,166  (131,250  (2,010  (4,557

Net unrealized appreciation (depreciation) on:

     

Investments

   (30,843,777  154,701,750   (625,011  9,678,417 

Foreign currency transactions

   25,817   (29,853  (2,231  (3,044
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

   (23,851,576  173,564,877   383,305   12,563,709 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

     

Distributions to shareholders

     

Class A

   (647,712  (867,045  (36,642  (24,398

Class C

   (104,154  (203,047  (36,326  (26,196

Class I

   (8,025,880  (14,614,616  (2,009,739  (1,407,084

Class R6

   (760,201  (1,576,599  N/A   N/A 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets from distributions

   (9,537,947  (17,261,307  (2,082,707  (1,457,678
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL SHARE TRANSACTIONS

     

Proceeds from shares sold

   95,338,830   181,449,754   2,378,740   9,162,908 

Net asset value of shares issued on reinvestment of distributions

   9,351,063   16,741,706   2,069,801   1,446,229 

Cost of shares redeemed

   (68,656,645  (175,603,810  (3,319,730  (4,707,060
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

   36,033,248   22,587,650   1,128,811   5,902,077 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

   2,643,725   178,891,220   (570,591  17,008,108 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

     

Beginning of the Period

   658,084,023   479,192,803   47,214,481   30,206,373 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of the Period

      $660,727,748    $658,084,023      $46,643,890    $47,214,481 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

90


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

 

   Brandes Emerging Markets Brandes International Small
   Value Fund Cap Equity Fund
   

Six Months Ended
March 31,

2022

 Year Ended
September 30,
2021
 

Six Months Ended
March 31,

2022

 Year Ended
September 30,
2021
   (Unaudited) 

 

 (Unaudited) 

 

INCREASE (DECREASE) IN NET ASSETS FROM:

     

OPERATIONS

     

Net investment income

      $10,323,664   $28,600,598      $8,585,339    $4,725,118 

Net realized gain (loss) on:

     

Investments

   (37,139,257  3,896,861   10,252,949   23,489,024 

Foreign currency transactions

   (178,667  (265,591  (19,714  (86,203

Net unrealized appreciation (depreciation) on:

     

Investments

   (112,600,286  224,737,828   (59,002,620  130,209,934 

Foreign currency transactions

   (20,722  73,348   (24,231  (27,266
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

   (139,615,268  257,043,044   (40,208,277  158,310,607 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTIONS TO

     

SHAREHOLDERS

     

Distributions to shareholders

     

Class A

   (3,221,170  (2,477,613  (2,751,254  (775,482

Class C

   (128,667  (132,067  (192,412  (75,830

Class I

   (15,338,947  (12,653,014  (12,328,933  (3,791,449

Class R6

   (1,078,028  (871,639  (585,337  (159,657
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets from distributions

   (19,766,812  (16,134,333  (15,857,936  (4,802,418
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL SHARE TRANSACTIONS

     

Proceeds from shares sold

   183,328,234   362,787,961   27,180,271   66,727,719 

Net asset value of shares issued on reinvestment of distributions

   16,340,485   15,194,734   15,826,755   4,783,873 

Cost of shares redeemed

   (267,886,937  (379,551,076  (48,183,750  (131,748,892
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

   (68,218,218  (1,568,381  (5,176,724  (60,237,300
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

   (227,600,298  239,340,330   (61,242,937  93,270,889 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

     

Beginning of the Period

   1,298,494,477   1,059,154,147   404,833,929   311,563,040 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

End of the Period

      $1,070,894,179   $1,298,494,477      $343,590,992    $404,833,929 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

91


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

 

       Brandes
       U.S. Value
   Brandes Small Cap Value Fund Fund
   

Six Months Ended
March 31,

2022

 Year Ended
September 30,
2021
 Period Ended
March 31,
2022(1)
   (Unaudited) 

 

 (Unaudited)

INCREASE (DECREASE) IN NET ASSETS FROM:

    

OPERATIONS

    

Net investment income

      $45,907    $11,005    $12,314 

Net realized gain (loss) on:

    

Investments

   55,307   217,309   4,452 

Foreign currency transactions

   376   (305   

Net unrealized appreciation (depreciation) on:

    

Investments

   (43,007  300,796   (117,282

Foreign currency transactions

   15   (15   
  

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

   58,598   528,790   (100,516
  

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

    

Distributions to shareholders

    

Class A

   (37,530  (1,309  (194

Class C

   N/A   N/A   N/A 

Class I

   (122,555  (19,384  (9,980

Class R6

   (8  (2  N/A 
  

 

 

 

 

 

 

 

 

 

 

 

Decrease in net assets from distributions

   (160,093  (20,695  (10,174
  

 

 

 

 

 

 

 

 

 

 

 

CAPITAL SHARE TRANSACTIONS

    

Proceeds from shares sold

   2,957,105   2,067,659   5,320,733 

Net asset value of shares issued on reinvestment of distributions

   160,024   20,693   10,174 

Cost of shares redeemed

   (1,408,313  (1,016,511  (138,181
  

 

 

 

 

 

 

 

 

 

 

 

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

   1,708,816   1,071,841   5,192,726 
  

 

 

 

 

 

 

 

 

 

 

 

Total increase (decrease) in net assets

   1,607,321   1,579,936   5,082,036 
  

 

 

 

 

 

 

 

 

 

 

 

NET ASSETS

    

Beginning of the Period

   2,129,531   549,595    
  

 

 

 

 

 

 

 

 

 

 

 

End of the Period

      $3,736,852    $2,129,531    $5,082,036 
  

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

Commencement of operations on October 1, 2021.

 

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

92


Brandes Investment Trust

STATEMENT OF CHANGES IN NET ASSETS (continued)

 

 

   Brandes Core Plus Fixed
   Income Fund
   

Six Months Ended
March 31,

2022

 Year Ended
September 30,
2021
   (Unaudited) 

 

INCREASE (DECREASE) IN NET ASSETS FROM:

   

OPERATIONS

   

Net investment income

      $891,598    $1,794,678 

Net realized gain (loss) on:

   

Investments

   157,346   2,224,588 

Foreign currency transactions

       

Net unrealized appreciation (depreciation) on:

   

Investments

   (5,107,510  (3,279,513

Foreign currency transactions

       
  

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

   (4,058,566  739,753 
  

 

 

 

 

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

   

Distributions to shareholders

   

Class A

   (18,783  (29,720

Class C

   N/A   N/A 

Class I

   (871,460  (2,138,336

Class R6

   (2  (4
  

 

 

 

 

 

 

 

Decrease in net assets from distributions

   (890,245  (2,168,060
  

 

 

 

 

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Proceeds from shares sold

   7,054,292   19,386,128 

Net asset value of shares issued on reinvestment of distributions

   879,280   2,121,069 

Cost of shares redeemed

   (13,118,900  (27,773,634
  

 

 

 

 

 

 

 

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

   (5,185,328  (6,266,437
  

 

 

 

 

 

 

 

Total increase (decrease) in net assets

   (10,134,139  (7,694,744
  

 

 

 

 

 

 

 

NET ASSETS

   

Beginning of the Period

   79,116,431   86,811,175 
  

 

 

 

 

 

 

 

End of the Period

      $68,982,292    $79,116,431 
  

 

 

 

 

 

 

 

 

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

93


Brandes Investment Trust

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

 

 

 

    Net asset
value,
beginning
of period
   Net
investment
income(1)
   

Net
realized and

unrealized
gain (loss) on
investments

  

Total from

investment

operations

  Dividends
from net
investment
income
  Net asset
value, end
of period
 

Brandes International Equity Fund

 

     

Class A

         

3/31/2022 (Unaudited)

   $18.12    0.15    (0.78)   (0.63)   (0.29)   $17.20 

9/30/2021

   $13.51    0.53    4.54   5.07   (0.46)   $18.12 

9/30/2020

   $16.02    0.26    (2.40)   (2.14)   (0.37)   $13.51 

9/30/2019

   $17.71    0.53    (1.59)   (1.06)   (0.63)   $16.02 

9/30/2018

   $17.48    0.36    0.17   0.53   (0.30)   $17.71 

9/30/2017

   $15.70    0.29    2.03   2.32   (0.54)   $17.48 

Class C

         

3/31/2022 (Unaudited)

   $17.78    0.07    (0.76)   (0.69)   (0.21)   $16.88 

9/30/2021

   $13.27    0.43    4.47   4.90   (0.39)   $17.78 

9/30/2020

   $15.76    0.13    (2.33)   (2.20)   (0.29)   $13.27 

9/30/2019

   $17.47    0.40    (1.58)   (1.18)   (0.53)   $15.76 

9/30/2018

   $17.30    0.22    0.18   0.40   (0.23)   $17.47 

9/30/2017

   $15.58    0.17    2.00   2.17   (0.45)   $17.30 

Class I

         

3/31/2022 (Unaudited)

   $18.21    0.17    (0.78)   (0.61)   (0.26)   $17.34 

9/30/2021

   $13.57    0.57    4.57   5.14   (0.50)   $18.21 

9/30/2020

   $16.07    0.27    (2.37)   (2.10)   (0.40)   $13.57 

9/30/2019

   $17.76    0.56    (1.60)   (1.04)   (0.65)   $16.07 

9/30/2018

   $17.52    0.40    0.16   0.56   (0.32)   $17.76 

9/30/2017

   $15.72    0.33    2.04   2.37   (0.57)   $17.52 

Class R6

         

3/31/2022 (Unaudited)

   $18.32    0.18    (0.79)   (0.61)   (0.25)   $17.46 

9/30/2021

   $13.64    0.57    4.62   5.19   (0.51)   $18.32 

9/30/2020

   $16.15    0.36    (2.47)   (2.11)   (0.40)   $13.64 

9/30/2019

   $17.83    0.59    (1.61)   (1.02)   (0.66)   $16.15 

9/30/2018

   $17.56    0.42    0.18   0.60   (0.33)   $17.83 

9/30/2017

   $15.74    0.35    2.04   2.39   (0.57)   $17.56 

 

(1)

Net investment income per share has been calculated based on average shares outstanding during the period.

(2)

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).

(3)

After fees waived and expenses absorbed or recouped by the Advisor, where applicable.

(4)

Not annualized.

(5)

Annualized.

(6)

Includes expenses not covered by the Trust’s expense limitation agreement.

(7)

As of June 30, 2019, the expense cap for the class changed from 1.00% to 0.85%.

(8)

As of June 30, 2019, the expense cap for the class changed from 0.82% to 0.75%.

 

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

94


Brandes Investment Trust

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

 

 

 

  Total

return(2)

 Net assets,
end of
period
(millions)
 Ratio of
net expenses
to average
net assets(3)
 

Ratio of net
investment
income to
average

net assets(3)

 

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
             
             
  (3.54)%(4)  $45.7   1.11%(5)   1.62%(5)   1.12%(5)   1.61%(5)   11.02%(4)
  37.55%  $38.2   1.10%   3.03%   1.11%   3.02%   30.41%
  (13.42)%  $22.1   1.13%   1.80%   1.14%   1.79%   23.20%
  (5.98)%  $32.0   1.16%   3.21%   1.16%   3.21%   14.43%
  3.02%  $34.9   1.16%   2.00%   1.16%   2.00%   20.37%
  15.07%  $31.5   1.18%(6)   1.77%   1.18%(6)   1.77%   33.82%
             
  (3.90)%(4)  $8.2   1.86%(5)   0.82%(5)   1.87%(5)   0.81%(5)   11.02%(4)
  36.90%  $8.8   1.54%   2.51%   1.56%   2.49%   30.41%
  (14.06)%  $7.6   1.88%   1.01%   1.89%   1.00%   23.20%
  (6.73)%  $13.1   1.91%   2.46%   1.91%   2.46%   14.43%
  2.31%  $18.3   1.91%   1.25%   1.91%   1.25%   20.37%
  14.19%  $17.9   1.93%(6)   1.01%   1.93%(6)   1.01%   33.82%
             
  (3.39)%(4)  $554.3   0.85%(5)   1.85%(5)   0.92%(5)   1.78%(5)   11.02%(4)
  37.87%  $552.2   0.85%   3.25%   0.91%   3.19%   30.41%
  (13.13)%  $401.7   0.85%   2.03%   0.94%   1.94%   23.20%
  (5.82)%  $622.4   0.94%(7)   3.43%   0.96%(7)   3.41%   14.43%
  3.23%  $664.7   0.96%   2.20%   0.96%   2.20%   20.37%
  15.33%  $523.1   0.98%(6)   1.96%   0.98%(6)   1.96%   33.82%
             
  (3.38)%(4)  $52.5   0.75%(5)   1.94%(5)   0.87%(5)   1.82%(5)   11.02%(4)
  38.03%  $58.8   0.75%   3.28%   0.86%   3.17%   30.41%
  (13.08)%  $47.8   0.75%   2.35%   0.89%   2.21%   23.20%
  (5.69)%  $35.9   0.80%(8)   3.57%   0.91%(8)   3.46%   14.43%
  3.44%  $24.6   0.82%   2.34%   0.91%   2.25%   20.37%
  15.48%  $38.5   0.83%(6)   2.12%   0.93%(6)   2.02%   33.82%

 

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

95


Brandes Investment Trust

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

 

 

 

             Net               
   Net asset         realized and         Dividends    Dividends
   value,    Net    unrealized    Total from    from net    from net
   beginning    investment    gain (loss) on    investment    investment    realized
    of period    income(1)    investments    operations    income    gains

Brandes Global Equity Fund

                            

Class A

                            

3/31/2022 (Unaudited)

   $26.53      0.15      0.07      0.22      (0.27)      (0.90)

9/30/2021

   $19.30      0.55      7.54      8.09      (0.56)      (0.30)

9/30/2020

   $21.75      0.28      (2.33)      (2.05)      (0.40)      

9/30/2019

   $24.61      0.47      (1.80)      (1.33)      (0.48)      (1.05)

9/30/2018

   $24.42      0.43      0.69      1.12      (0.42)      (0.51)

9/30/2017

   $21.21      0.34      3.28      3.62      (0.41)      

Class C

                            

3/31/2022 (Unaudited)

   $26.25      0.05      0.06      0.11      (0.20)      (0.90)

9/30/2021

   $19.16      0.37      7.47      7.84      (0.45)      (0.30)

9/30/2020

   $21.60      0.17      (2.35)      (2.18)      (0.26)      

9/30/2019

   $24.45      0.30      (1.78)      (1.48)      (0.32)      (1.05)

9/30/2018

   $24.28      0.24      0.69      0.93      (0.25)      (0.51)

9/30/2017

   $21.09      0.18      3.25      3.43      (0.24)      

Class I

                            

3/31/2022 (Unaudited)

   $26.78      0.19      0.06      0.25      (0.27)      (0.90)

9/30/2021

   $19.46      0.64      7.59      8.23      (0.61)      (0.30)

9/30/2020

   $21.91      0.38      (2.39)      (2.01)      (0.44)      

9/30/2019

   $24.77      0.53      (1.81)      (1.28)      (0.53)      (1.05)

9/30/2018

   $24.57      0.49      0.70      1.19      (0.48)      (0.51)

9/30/2017

   $21.33      0.41      3.30      3.71      (0.47)      

 

 

(1)

Net investment income per share has been calculated based on average shares outstanding during the period.

(2)

After fees waived and expenses absorbed or recouped by the Advisor, where applicable.

(3)

Annualized.

(4)

Not annualized.

(5)

Includes expenses not covered by the Trust’s expense limitation agreement.

 

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

96


Brandes Investment Trust

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

 

 

 

Net asset

value, end

of period

 Total
return
 Net assets,
end of
period
(millions)
 Ratio of
net expenses
to average
net assets(2)
 Ratio of net
investment
income to
average
net assets(2)
 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
               
               
 $25.58   0.75%  $0.9   1.25%(3)   1.15%(3)   1.40%(3)   1.00%(3)   7.27%(4)
 $26.53   42.30%  $0.8   1.25%   2.21%   1.41%   2.05%   20.46%
 $19.30   (9.41)%  $0.9   1.25%   1.56%   1.58%   1.23%   17.16%
 $21.75   (5.22)%  $1.5   1.25%   2.11%   1.56%   1.81%   12.11%
 $24.61   4.68%  $3.4   1.25%   1.72%   1.40%   1.57%   8.89%
 $24.42   17.20%  $5.8   1.26%(5)   1.52%   1.45%(5)   1.33%   17.42%
               
 $25.26   0.36%  $0.8   2.00%(3)   0.39%(3)   2.15%(3)   0.24%(3)   7.27%(4)
 $26.25   41.21%  $0.9   2.00%   1.50%   1.78%   1.72%   20.46%
 $19.16   (10.08)%  $0.7   2.00%   0.84%   2.32%   0.52%   17.16%
 $21.60   (5.91)%  $1.2   2.00%   1.37%   2.32%   1.05%   12.11%
 $24.45   3.88%  $1.6   2.00%   0.97%   2.15%   0.82%   8.89%
 $24.28   16.31%  $1.7   2.01%(5)   0.77%   2.21%(5)   0.57%   17.42%
               
 $25.86   0.86%  $45.0   1.00%(3)   1.41%(3)   1.20%(3)   1.21%(3)   7.27%(4)
 $26.78   42.67%  $45.5   1.00%   2.52%   1.20%   2.32%   20.46%
 $19.46   (9.18)%  $28.6   1.00%   1.83%   1.36%   1.47%   17.16%
 $21.91   (4.98)%  $33.4   1.00%   2.37%   1.36%   2.00%   12.11%
 $24.77   4.95%  $62.6   1.00%   1.97%   1.20%   1.77%   8.89%
 $24.57   17.48%  $61.7   1.01%(5)   1.77%   1.26%(5)   1.52%   17.42%

 

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               
   Net asset         realized and         Dividends     
   value,    Net    unrealized    Total from    from net    Net asset
   beginning    investment    gain (loss) on    investment    investment    value, end
    of period    income(1)    investments    operations    income    of period

Brandes Emerging Markets Value Fund

                            

Class A

                            

3/31/2022 (Unaudited)

   $8.66      0.06      (1.03)      (0.97)      (0.13)     $7.56

9/30/2021

   $7.04      0.18      1.54      1.72      (0.10)     $8.66

9/30/2020

   $8.57      0.13      (1.49)      (1.36)      (0.17)     $7.04

9/30/2019

   $8.46      0.19      0.07      0.26      (0.15)     $8.57

9/30/2018

   $9.47      0.15      (1.01)      (0.86)      (0.15)     $8.46

9/30/2017

   $7.91      0.10      1.60      1.70      (0.14)     $9.47

Class C

                            

3/31/2022 (Unaudited)

   $8.59      0.03      (1.02)      (0.99)      (0.12)     $7.48

9/30/2021

   $7.01      0.14      1.55      1.69      (0.11)     $8.59

9/30/2020

   $8.53      0.07      (1.48)      (1.41)      (0.11)     $7.01

9/30/2019

   $8.44      0.13      0.06      0.19      (0.10)     $8.53

9/30/2018

   $9.43      0.08      (0.99)      (0.91)      (0.08)     $8.44

9/30/2017

   $7.86      0.05      1.58      1.63      (0.06)     $9.43

Class I

                            

3/31/2022 (Unaudited)

   $8.71      0.07      (1.04)      (0.97)      (0.14)     $7.60

9/30/2021

   $7.07      0.20      1.55      1.75      (0.11)     $8.71

9/30/2020

   $8.62      0.14      (1.50)      (1.36)      (0.19)     $7.07

9/30/2019

   $8.50      0.21      0.08      0.29      (0.17)     $8.62

9/30/2018

   $9.51      0.17      (1.01)      (0.84)      (0.17)     $8.50

9/30/2017

   $7.94      0.13      1.60      1.73      (0.16)     $9.51

Class R6

                            

3/31/2022 (Unaudited)

   $8.76      0.08      (1.04)      (0.96)      (0.14)     $7.66

9/30/2021

   $7.11      0.20      1.56      1.76      (0.11)     $8.76

9/30/2020

   $8.65      0.16      (1.51)      (1.35)      (0.19)     $7.11

9/30/2019

   $8.53      0.23      0.07      0.30      (0.18)     $8.65

9/30/2018

   $9.53      0.19      (1.02)      (0.83)      (0.17)     $8.53

9/30/2017

   $7.93      0.15      1.62      1.77      (0.17)     $9.53

 

 

(1)

Net investment income per share has been calculated based on average shares outstanding during the period.

(2)

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).

(3)

After fees waived and expenses absorbed or recouped by the Advisor, where applicable.

(4)

Annualized.

(5)

Not annualized.

(6)

Includes 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:

 

 

 

Total

return(2)

 Net assets,
end of
period
(millions)
 Ratio of
net expenses
to average
net assets(3)
 Ratio of net
investment
income to
average
net assets(3)
 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
                  
                  
  (11.27)%  $177.1   1.31%(4)   1.51%(4)   1.32%(4)   1.50%(4)   14.03%(5)
  24.41%  $216.2   1.30%   2.02%   1.31%   2.01%   34.97%
  (16.10)%  $174.2   1.33%   1.75%   1.34%   1.74%   34.39%
  3.10%  $235.9   1.35%   2.23%   1.35%   2.23%   22.09%
  (9.14)%  $258.8   1.37%   1.62%   1.34%   1.65%   37.66%
  21.78%  $319.2   1.42%(6)   1.27%   1.40%(6)   1.29%   23.67%
                  
  (11.62)%  $7.8   2.06%(4)   0.77%(4)   2.07%(4)   0.76%(4)   14.03%(5)
  24.01%  $10.3   1.59%   1.66%   1.60%   1.65%   34.97%
  (16.63)%  $11.1   2.08%   0.90%   2.09%   0.89%   34.39%
  2.27%  $18.0   2.10%   1.48%   2.10%   1.48%   22.09%
  (9.70)%  $22.8   2.10%   0.89%   2.09%   0.90%   37.66%
  20.83%  $28.2   2.17%(6)   0.52%   2.14%(6)   0.55%   23.67%
                  
  (11.23)%  $827.7   1.12%(4)   1.72%(4)   1.12%(4)   1.72%(4)   14.03%(5)
  24.71%  $1,003.8   1.12%   2.24%   1.11%   2.25%   34.97%
  (15.96)%  $834.8   1.12%   1.88%   1.14%   1.86%   34.39%
  3.41%  $1,117.7   1.12%   2.46%   1.15%   2.43%   22.09%
  (8.91)%  $1,162.1   1.12%   1.88%   0.14%   1.86%   37.66%
  22.07%  $1,311.5   1.17%(6)   1.51%   1.20%(6)   1.48%   23.67%
                  
  (11.09)%  $58.2   0.97%(4)   1.88%(4)   1.07%(4)   1.78%(4)   14.03%(5)
  24.74%  $68.1   0.97%   2.32%   1.06%   2.23%   34.97%
  (15.74)%  $39.1   0.97%   2.07%   1.09%   1.95%   34.39%
  3.45%  $47.6   0.97%   2.61%   1.10%   2.48%   22.09%
  (8.74)%  $33.6   0.97%   2.02%   1.08%   1.91%   37.66%
  22.53%  $97.4   1.02%(6)   1.68%   1.17%(6)   1.53%   23.67%

 

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               
   Net asset    Net    realized and         Dividends    Dividends
   value,    investment    unrealized    Total from    from net    from net
   beginning    income    gain (loss) on    investment    investment    realized
    of period    (loss)(1)    investments    operations    income    gains

Brandes International Small Cap Equity Fund

                            

Class A

                            

3/31/2022 (Unaudited)

   $14.01      0.30      (1.72)      (1.42)      (0.56)      

9/30/2021

   $9.33      0.14      4.69      4.83      (0.15)      

9/30/2020

   $10.22      0.07      (0.88)      (0.81)      (0.08)      

9/30/2019

   $12.10      0.15      (1.60)      (1.45)      (0.30)      (0.13)

9/30/2018

   $14.30      0.14      (1.32)      (1.18)      (0.54)      (0.48)

9/30/2017

   $13.46      0.14      1.32      1.46      (0.34)      (0.28)

Class C

                            

3/31/2022 (Unaudited)

   $13.49      0.23      (1.64)      (1.41)      (0.51)      

9/30/2021

   $9.03      0.10      4.54      4.64      (0.18)      

9/30/2020

   $9.94      (0.01)      (0.85)      (0.86)      (0.05)      

9/30/2019

   $11.81      0.06      (1.55)      (1.49)      (0.25)      (0.13)

9/30/2018

   $14.03      0.04      (1.28)      (1.24)      (0.50)      (0.48)

9/30/2017

   $13.24      0.04      1.30      1.34      (0.27)      (0.28)

Class I

                            

3/31/2022 (Unaudited)

   $14.09      0.31      (1.73)      (1.42)      (0.58)      

9/30/2021

   $9.37      0.15      4.73      4.88      (0.16)      

9/30/2020

   $10.25      0.09      (0.88)      (0.79)      (0.09)      

9/30/2019

   $12.14      0.17      (1.61)      (1.44)      (0.32)      (0.13)

9/30/2018

   $14.35      0.17      (1.32)      (1.15)      (0.58)      (0.48)

9/30/2017

   $13.50      0.17      1.32      1.49      (0.36)      (0.28)

Class R6

                            

3/31/2022 (Unaudited)

   $14.14      0.33      (1.75)      (1.42)      (0.59)      

9/30/2021

   $9.39      0.17      4.74      4.91      (0.16)      

9/30/2020

   $10.27      0.07      (0.86)      (0.79)      (0.09)      

9/30/2019

   $12.15      0.18      (1.61)      (1.43)      (0.32)      (0.13)

9/30/2018

   $14.36      0.18      (1.33)      (1.15)      (0.58)      (0.48)

9/30/2017

   $13.50      0.18      1.33      1.51      (0.37)      (0.28)

 

 

(1)

Net investment income per share has been calculated based on average shares outstanding during the period.

(2)

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).

(3)

After fees waived and expenses absorbed or recouped by the Advisor, where applicable.

(4)

Annualized.

(5)

Not annualized.

(6)

Includes 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(2)
 Net assets,
end of
period
(millions)
 Ratio of
net expenses
to average
net assets(3)
 Ratio of net
investment
income to
average
net assets(3)
 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
               
               
 $12.03   (10.26)%  $60.3   1.35%(4)   4.48%(4)   1.35%(4)   4.48%(4)   18.51%(5)
 $14.01   51.91%  $68.0   1.32%   1.10%   1.33%   1.09%   26.16%
 $9.33   (7.95)%  $35.8   1.35%   0.77%   1.36%   0.76%   39.28%
 $10.22   (12.04)%  $43.5   1.35%   1.34%   1.35%   1.34%   22.52%
 $12.10   (8.88)%  $80.9   1.30%   1.05%   1.30%   1.05%   21.97%
 $14.30   11.29%  $176.9   1.30%(6)   1.04%   1.30%(6)   1.04%   21.37%
               
 $11.57   (10.62)%  $4.4   2.10%(4)   3.62%(4)   2.10%(4)   3.62%(4)   18.51%(5)
 $13.49   51.52%  $5.3   1.49%   0.86%   1.50%   0.85%   26.16%
 $9.03   (8.64)%  $4.5   2.11%   (0.06)%   2.12%   (0.07)%   39.28%
 $9.94   (12.69)%  $6.9   2.10%   0.59%   2.10%   0.59%   22.52%
 $11.81   (9.55)%  $14.5   2.05%   0.30%   2.05%   0.30%   21.97%
 $14.03   10.52%  $27.2   2.05%(6)   0.29%   2.05%(6)   0.29%   21.37%
               
 $12.09   (10.21)%  $266.2   1.15%(4)   4.64%(4)   1.15%(4)   4.64%(4)   18.51%(5)
 $14.09   52.15%  $318.0   1.12%   1.23%   1.13%   1.22%   26.16%
 $9.37   (7.69)%  $260.8   1.15%   0.93%   1.16%   0.92%   39.28%
 $10.25   (11.93)%  $414.8   1.15%   1.54%   1.15%   1.54%   22.52%
 $12.14   (8.70)%  $963.8   1.10%   1.25%   1.10%   1.25%   21.97%
 $14.35   11.54%  $1,543.9   1.10%(6)   1.24%   1.10%(6)   1.24%   21.37%
               
 $12.13   (10.17)%  $12.7   1.00%(4)   4.94%(4)   1.10%(4)   4.84%(4)   18.51%(5)
 $14.14   52.39%  $13.5   1.00%   1.37%   1.08%   1.29%   26.16%
 $9.39   (7.72)%  $10.5   1.00%   0.83%   1.12%   0.71%   39.28%
 $10.27   (11.80)%  $20.4   1.00%   1.69%   1.10%   1.59%   22.52%
 $12.15   (8.64)%  $72.5   1.00%   1.35%   1.05%   1.30%   21.97%
 $14.36   11.67%  $76.1   1.01%(6)   1.33%   1.05%(6)   1.29%   21.37%

 

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               
   Net asset         realized and         Dividends    Dividends
   value,    Net    unrealized    Total from    from net    from net
   beginning    investment    gain (loss) on    investment    investment    realized
    of period    income    investments    operations    income    gains

Brandes Small Cap Value Fund

                            

Class A

                            

3/31/2022 (Unaudited)

   $13.22      0.21(3)       0.12      0.33      (0.19)      (0.51)

9/30/2021

   $8.52      0.02      4.51      4.53      0.17      

9/30/2020

   $8.58      0.15      (0.16)      (0.01)      (0.05)      

9/30/2019

   $10.27      0.05      (0.95)      (0.90)      (0.10)      (0.69)

1/2/2018(7) – 9/30/2018

   $10.00      0.02      0.27      0.29