Advisory Research, Inc. Launches International Small Cap Value Fund
CHICAGO, Apr 06, 2010 (BUSINESS WIRE) --Advisory Research, Inc. has expanded its mutual fund offering by launching the Advisory Research International Small Cap Value Fund ("the Fund"). The Fund seeks to provide long-term capital appreciation by investing in equity securities of small and medium capitalization companies outside the United States. The Fund primarily invests in the developed international markets, but can invest in emerging markets on a case-by-case basis. Investors can access the Fund directly through the Fund's administrator, UMB Fund Services, or through financial intermediaries including Charles Schwab & Co., Inc. and through investment professionals who utilize the services of Pershing LLC. Advisory Research, Inc. is a wholly owned subsidiary of Piper Jaffray Companies.
The Fund is managed by a seasoned team of five investment professionals led by Brien O'Brien and Jonathan Brodsky, who have been working together on this strategy for over four years. The Fund will seek to replicate the investment strategy used in the International Value limited partnership and institutional separate account products that were launched by Advisory Research, Inc. in 2006.
The team employs a bottom-up investment approach that seeks to identify companies with attractive valuations relative to their net asset value and provides additional downside protection and upside potential relative to the benchmark over market cycles. Generally, the Fund will seek to invest in 60 to 80 securities under normal market conditions.
"Although many U.S. based investors have limited exposure to the international equity markets, these markets are now far larger than the U.S. markets," said Brien O'Brien, Fund team member and CEO of Advisory Research. "The international equity markets provide very attractive opportunities for investors looking for long-term capital appreciation and the diversification benefits of investing in non-dollar denominated assets."
"Our research focus on small and medium capitalization companies outside of the U.S. yields very attractive investment opportunities, because we are operating in one of the least efficient areas of the equity markets," added Jonathan Brodsky, Fund team member. "Although our universe of securities is comprised of high quality stocks with strong potential for capital appreciation, the universe is not well-covered by sell-side research firms, and most institutional managers focus on large capitalization international securities. As a result, we are able to purchase securities for the Fund that trade at sizeable discounts to our estimate of their net asset value."
Foreign investments present additional risks due to currency fluctuations, economic and political factors, lower liquidity, government regulations, differences in securities regulations and accounting standards, possible changes in taxation, limited public information and other factors. The risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economies. Small capitalization stocks are more susceptible to market volatility, because smaller companies may not have the management experience, financial resources, product diversification and competitive strengths of larger companies. Additionally, smaller company stocks tend to be sold less often and in smaller amounts than larger company stocks.
The Fund's prospectus, which is available upon request by calling (888) 665-1414, includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.Mutual funds are subject to risks.Investments in the Fund are subject to investment risk, equity risk, small company risk, emerging markets risk, currency risk and sector risk, among others.Investors should consult the Fund's Prospectus and Statement of Additional Information for a more detailed discussion of the Fund's risks.
Advisory Research, Inc. is an investment management firm founded in 1974 on the principle of protecting capital. It employs a value-based, bottom-up investment process built upon a team-oriented decision making process that leverages the experience of its seasoned research professionals. Advisory Research, Inc. currently manages $5.9 billion of assets under discretionary management for institutional and high net worth clients.
About Piper Jaffray
Piper Jaffray Companies (NYSE: PJC) is a leading, international investment bank and institutional securities firm, serving the needs of corporations, private equity groups, public entities, nonprofit clients and institutional investors. Founded in 1895, Piper Jaffray provides a broad set of products and services, including equity and debt capital markets products; public finance services; financial advisory services; equity and fixed-income institutional brokerage; equity research and fixed income analytics; and asset management services. Piper Jaffray headquarters are located in Minneapolis, Minnesota, with offices across the U.S. and in London and Hong Kong. Piper Jaffray & Co. is the firm's principal operating subsidiary. (www.piperjaffray.com)
© 2010 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800, Minneapolis, Minnesota 55402-7020
Advisory Research International Small Cap Value Fund is distributed by Grand Distribution Services, LLC, located at 803 W. Michigan St., Milwaukee, WI 53233.
SOURCE: Piper Jaffray Companies
Piper Jaffray Companies
Investor and Media Relations
Jennifer A. Olson-Goude, 612-303-6277