Morningstar Recognizes ADVIX's 5-Year Performance with 4-Star Rating

CHICAGO--()--Advisory Research, Inc. (ARI) recently marked the five-year anniversary of the Advisory Research International Small Cap Value Fund (Investor Class: ADVIX, Institutional Class: ADVLX) (the “Fund”). Based on its risk adjusted returns, the Fund received a 4-star Morningstar Rating™ on its 5-year and 3-year historical track record, relative to the 35 and 46 funds respectively in the Foreign Small/Mid Value category as of March 31, 2015.

“We believe that investing in non-US small and mid cap stocks provides investors access to an inefficient asset class. Our time-tested, bottom-up, approach to these markets allows us the opportunity to exploit these inefficiencies for investors in the Fund. We are encouraged by our 5-year results and the 4-star recognition the Fund has received from Morningstar. We look forward to building on the success of the Fund in the future,” said Jonathan P. Brodsky, ARI Managing Director and one of the Fund’s Portfolio Managers.

The Fund, which was launched on March 31, 2010, seeks to generate long-term capital appreciation by investing in stocks of small and mid capitalization companies primarily located in developed markets outside of the United States. Fund management applies a thorough research process to identify securities that 1) trade at low price-to-book ratios or price to net asset value levels; 2) exhibit profitability on an operating basis and 3) possess healthy balance sheets with minimal leverage to help protect downside risk. Fund management then attempts to determine a company’s upside potential through rigorous quantitative and qualitative analysis, with a special focus on corporate governance.

“Although we are pleased with the absolute returns of the Fund over its first 5-years and its relative performance vis-à-vis the MSCI EAFE benchmark, we think our risk controls, especially downside risk controls, differentiate us within the Non-US Small/Mid Cap space. We are especially pleased that our risk adjusted returns exceeded the peer group and the MSCI EAFE benchmark over the Fund’s first 5-years,” said Drew Edwards, ARI Managing Director and one of the Fund’s Portfolio Managers.

“We continue to improve on our investment capabilities and have added a number of new analysts to the team over the past 5 years. I would like to thank the whole team for their hard work in achieving the 4-star recognition from Morningstar. The Fund management and research team is passionate about value investing in the non-US markets, as we are firm believers in the inefficiencies of these markets, which results from a number of factors such as language and cultural barriers, limited sell-side research coverage or a stock’s absence from an Index. We mine these areas for new ideas and are very pleased with our current pipeline. We look forward to exploiting price inefficiencies in the future, which we hope will deliver outperformance in the coming years relative to our benchmark, with attractive risk adjusted characteristics,” said Marco Priani, ARI Managing Director and one of the Fund’s Portfolio Managers.

More information about the Fund, including recent performance, is available at

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 Cap 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. Smaller company stocks tend to be sold less often and in smaller amounts than larger company stocks. Risk may increase due to potential for concentration in the Financial Sector.

© 2015 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.

The Fund’s prospectus, or summary 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.

Advisory Research International Small Cap Value Fund is distributed by IMST Distributors, LLC.


Tony Kono, 646-922-7767

Release Summary

Advisory Research, Inc. International Small Cap Value Fund (ADVIX:US, ADVLX:US) received a 4-star Morningstar Rating™ on its 5-year and 3-year historical track record.


Tony Kono, 646-922-7767