Strategy and Investment Approach


International Value Advisers, LLC (IVA) will seek long-term growth of capital by investing in a range of securities and asset classes from markets around the world. Over the short-term (12-18 months), our attempt is to try to preserve capital, while over the longer-term (5-10 years, i.e., over a full economic cycle), we seek to outperform equity indices. We are absolute return oriented investors.

Investment Approach

We employ a fundamental, bottom-up approach and have a preference for quality businesses with securities trading at what we believe to be a meaningful discount to our intrinsic value estimate. We define intrinsic value as "the amount that a knowledgeable investor or corporate competitor would pay - in cash - for 100% of the economic and controlling interests of a company.” A security is deemed attractive if there is a suitable margin of safety, meaning that the market price of a security is trading at a meaningful discount to its intrinsic value estimate. The size of the discount required and the position size is determined by the following criteria: quality of business, quality of balance sheet, quality of capital allocation, ability for intrinsic value growth, quality of management, liquidity/free float, dividend payout, and concentration/quality of shareholders.

Additionally, we employ a flexible approach, which may include securities across all asset classes (equities, fixed income, gold, cash) and securities throughout the capitalization spectrum (small, mid, large caps).

We believe that this investment approach emphasizes capital preservation while still providing the capacity to outperform equity indices over the long term.

IVA’s computation of a company’s intrinsic value is based on internally generated assumptions and opinions of key variables affecting the company’s business. These variables may materially influence the assessed intrinsic value and perceived margin of safety to the internally calculated intrinsic value. Variables used in the computations are the opinion of IVA and may change without notice at any time.

There are risks associated with investing in mutual funds that invest in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

An investor should read and consider the funds' investment objectives, risks, charges and expenses carefully before investing in the IVA International Fund or IVA Worldwide Fund. This and other important information are detailed in our prospectus and summary prospectus, which can be obtained by calling (866) 941-4482 or clicking here. Please read the prospectus and summary prospectus carefully before you invest. The IVA Funds are offered by Foreside Fund Services, LLC.

Any statistics contained herein have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed.