BCPIX OverviewInvestment Objective of the Brandes Institutional Core Plus Fixed Income Fund (the "Fund") (BCPIX) The Fund seeks to maximize total return, consisting of both current income and capital appreciation. Principal Investment Strategies of the Fund The Fund is comprised of bonds issued by U.S. and non-U.S. companies, as well as U.S. and non-U.S. governments. The Fund also may hold bonds issued by government agencies, U.S. and non-U.S. mortgage-backed securities, collateralized mortgage obligations, and asset-backed debt securities. Brandes Investment Partners, L.P. is the investment advisor to the Fund (the "Advisor"). As the Advisor, we apply the principles of value investing to analyze and select securities. We seek to purchase bonds at a price below our assessment of their underlying value. We believe that bond markets frequently misprice securities in the short term, creating opportunities for long-term investors. The relationship between price and value drives all of our investment decisions. We invest in both investment- and non-investment grade bonds. At least 75% of the Fund's total assets must be investment grade, measured at the time of purchase. Although we may invest in bonds of any maturity, under normal market conditions, we seek to maintain a portfolio duration for the Fund above or below 10% of the duration of the Lehman Brothers U.S. Aggregate Index. This is designed to reduce swings in Fund value due to interest-rate fluctuations and create an opportunity for us to build wealth over the long term through issue selection. We tend to invest in U.S. dollar-denominated bonds. However, we may invest up to 25% of the Fund's assets (measured at the time of purchase), in non-U.S. dollar-denominated bonds. We also may engage in currency hedging and use derivative instruments, such as options, futures and swap agreements to help better manage risk or help us pursue our investment objectives. Principal Risks of Investing in the 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. As with most fixed income funds, the income on and value of your shares in the Fund will fluctuate along with interest rates. When interest rates rise, the market prices of the debt securities the Fund owns usually decline. When interest rates fall, the prices of these securities usually increase. Generally, the longer the Fund's average portfolio maturity and the lower the average quality of its portfolio, the greater the price fluctuation. The price of any security owned by the Fund may also fall in response to events affecting the issuer of the security, such as its ability to continue to make principal and interest payments or its credit rating. Below investment grade debt securities are speculative and involve a greater risk of default and price change due to changes in the issuer's creditworthiness. The market prices of these debt securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in periods of general economic difficulty. Investing in foreign securities poses additional risks. The performance of foreign securities can be adversely affected by the different political, regulatory 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 may experience substantial fluctuations or steady devaluation relative to the U.S. dollar. The Fund's use of derivative instruments, such as options contracts, futures contracts or swap agreements, involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other more traditional investments. Investments in Asset Backed and Mortgage Backed Securities include additional risks that Investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Please see the Definitions page for an explanation between rating risks. Fees and Expenses The Funds have three classes of shares – Class I shares for institutional investors, Class E shares which pay service fees to intermediaries providing non-distribution services to their clients who own shares of the Funds, and Class S shares which pay intermediaries fees for providing distribution and non-distribution services to their clients who own shares of the Funds. Class S shares are not currently being sold. As an investor in a Fund, you will pay the following fees and expenses based on an estimate of the Fund’s first fiscal period. Annual Fund operating expenses are paid out of Fund assets and are reflected in its share price. If you purchase shares though a bank, broker or other investment representative, they may charge you an account-level fee for additional services provided to you in connection with your investment in the Fund. This table describes the fees and expenses that you may pay if you buy and hold shares of the Core Plus Fund.
1 The Advisor has contractually agreed with Brandes Investment Trust to limit each Fund’s Class I, Class E and Class S annual operating expenses, including repayment of previous waivers, to the following percentages of the Fund's average daily net assets attributable to such Classes through the Fund's fiscal year ended January 30, 2011: Core Plus Fund -- 0.50%, 0.70% and 0.70%, respectively. Please refer to the Prospectus for important information about the investment company including investment objectives, risks, charges and expenses. To obtain a hard copy Prospectus, please call the Mutual Fund Group at 800.395.3807. The Brandes Funds are distributed by Quasar Distributors, LLC. |
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