Small Cap Value Fund

Fundamental research is the core of our investment process. We focus our search for investment ideas on companies that are experiencing difficulties that our research suggests are likely to be temporary. We believe that very poor profitability tends not to persist. Over time, cycles turn, management takes actions, costs are cut, and excess industry capacity diminishes. Therefore, we apply intensive research to these companies in an effort to determine whether the problems that caused the earnings shortfall are temporary or permanent. Generally speaking, the most undervalued companies receive the largest weightings. These are the companies that rank best on the basis of our estimate of normalized earnings relative to the current price of the stock.

Our investment process is bottom-up, one stock at a time. We do not value sectors in aggregate nor do we make explicit allocations to sectors, though we limit individual security and sector weights to control for risk.

We generally hold 40-90 stocks in companies typically ranked 1,001-3,000 by market capitalization.

 

Characteristics as of 12/31/16

  Small Cap
Value
Russell 2000®
Value Index
Price/Earnings (1 Year Forecast) 19.4x 19.0x
Price/Book 1.4x 1.5x
Median Market Cap ($M) $1,752 $698
Weighted Average Market Cap ($M) $2,292 $2,009
Number of Stocks 42  1,369

 

Sector Weights as of 12/31/16



Sector
  Small Cap
Value
Russell 2000®
Value Index
Consumer Discretionary 5% 10%
Consumer Staples 3% 3%
Energy 3% 6%
Financials 30% 33%
Health Care 6% 4%
Industrials 33% 12%
Information Technology 16% 10%
Materials 0% 5%
Real Estate 1% 10%
Telecom Services 0% 1%
Utilities 0% 6%
 

Sector weights adjusted for cash - may appear higher than actual.

 

Top Ten Holdings as of 12/31/16

  % of Net Assets
Masonite International Corp. 4.0%
TriMas Corp. 3.5%
Aspen Insurance Holdings, Ltd. 3.5%
ScanSource, Inc. 3.5%
American Equity Investment Life Holdings Co. 3.5%
Associated Banc-Corp. 3.5%
Chart Industries, Inc. 3.4%
Actuant Corp. 3.4%
Universal Corp. 3.1%
Owens & Minor, Inc. 3.0%
Total 34.4%

 

Performance as of 12/31/16

  QTR
2016
YTD
Since Apr. 27, 2016
Since Inception
Apr. 27, 2016
PZISX - Institutional Class 16.84% 19.52% 19.52%  
PZVSX - Investor Class 16.77% 19.22% 19.22%  
Russell 2000® Value Index 14.07% 24.97% 24.97%  

PZVSX Expense Ratio: Gross: 4.20%, Net: 1.55%*
PZISX Expense Ratio: Gross: 3.85%, Net: 1.20%*

 

Performance data quoted represents past performance; past performance does not guarantee 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 844.PZN.1996 (844.796.1996). The fund imposes a 1.00% redemption fee on shares held 30 days or less. Performance does not reflect the redemption fee and, if it had, returns would have been lower.

*Contractual fee waivers through 6/27/17

Price / Earnings (1-Year Forecast) is a measure of the price-to-earnings ratio (P/E) using forecasted earnings for the P/E calculation. Price / Book is a valuation ratio of a company’s current share price compared to its book value. Median Market Cap is the point at which half of the market value of a portfolio is invested in stocks with a greater market cap, and consequently the other half is invested in stocks with a lower market cap. Weighted Average Market Cap is the average firm market capitalization weighted by security weight.

The Russell 2000® Value Index is an unmanaged index that measures the performance of those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth rates. One cannot invest directly in an index.

Fund holdings, Sector exposure and characteristics are as of the date shown and are subject to change at any time. As a result, the Fund's current and future holdings, Sector exposure and characteristics may vary substantially from the information shown. No recommendation is made regarding the advisability of buying or selling any security.