LOS ANGELES–(BUSINESS WIRE)–Sept. 8, 2003–Hotchkis and Wiley Capital Management announced today that Hotchkis and Wiley All Cap Value Fund is now available to mutual fund investors throughfinancial intermediaries. The Fund is a concentrated portfolio of U.S. companies that constitute the firm’s best investment ideas, regardless of market cap. The Fund is co-managed by Joseph Huber andGeorge Davis.
“We established Hotchkis and Wiley All Cap Value Fund in response to requests from the institutional community for an alpha-seeking product that concentrates on our best ideas,” said Bob Dochterman, Managing Director. “This is a natural extension of our highly disciplined, value oriented investment process. We believe this fund might be suitable for investors who already have a well-diversified asset allocation plan in place, but are looking to add a value fund managed with a consistent process, offering higher return potential with, in all likelihood, greater volatility than our diversified funds. This strategy has been available to institutional clients since November 2002, and has grown to $170 million in assets.”
The Fund is available in Class A shares (HWAAX) with a minimum initial investment of $2,500 and a maximum sales charge of 5.25%. Class I shares (HWAIX) have a $1 million minimum without a sales charge. Class C shares (HWACX) have a $2,500 minimum and no front-end sales charge, but redemptions within one year of purchase may be subject to a CDSC of 1%. The Fund is also available through certain intermediary-sold fund wrap programs.
Investment Strategy
Hotchkis and Wiley All Cap Value Fund seeks capital appreciation using a disciplined, value-oriented investment process. As a result of its consistent process and independent research, Hotchkis and Wiley owns companies that are, in its opinion, undervalued relative to their tangible assets, sustainable cash flow and potential for improving business performance. The Fund seeks to own a portfolio of U.S. based companies regardless of size that offer the best combination of value and potential for price appreciation. Generally, The Fund invests in only the firm’s best ideas and therefore will generally hold fewer names at higher weights than other funds. The Fund employs traditional value investing principles as well as independent and contrarian thinking to drive the investment process, and it exploits excessive investor reaction.
Fund Managers
Joseph Huber joined Hotchkis and Wiley in 2000 as a domestic equity portfolio manager. Before joining the firm, Mr. Huber was a managing member at HPB Group, LLC a New York-based hedge fund manager where he served as a portfolio manager. Prior to that he worked at Goldman Sachs Asset Management where he started out as a senior analyst on the Broad Market Value team. Mr. Huber received his BA from Northwestern University and his MBA from the University of Chicago. He is an associate in the Society of Actuaries (A.S.A.) as well as a member of the American Academy of Actuaries (M.A.A.A.).
George Davis joined Hotchkis and Wiley in 1988. He is a member of the Los Angeles Society of Financial Analysts. Mr. Davis received his BA in Economics and History and his MBA from Stanford University.
About Hotchkis and Wiley
Founded in 1980, Hotchkis and Wiley Capital Management manages over $6.2 billion. Hotchkis and Wiley is a value-oriented, bottom up investment manager, focused on identifying significantly undervalued companies where, in its opinion, actual value clearly exceeds current market price. Hotchkis and Wiley believes that the rigorous application of time-proven investment disciplines along with extensive fundamental research should produce attractive long-term returns with less volatility than the relevant market index.
In 1996, Merrill Lynch purchased Hotchkis and Wiley. In 2001, Hotchkis and Wiley management bought back the domestic equity business from Merrill Lynch. <pre><br>Performance as of June 30, 2003<br> Return since fund inception (12/02)<br><br>Class I shares(a) 25.80%<br>Class A shares 26.50<br>Class A shares(b) 19.57<br>S&P 500 Index 11.76<br>Lipper Multi-Cap Value Avg. 12.33<br></pre>
For more complete information about The Fund including risks, fees and expenses, obtain a current prospectus by calling 1-800-796-5606 or contact your investment professional. You may also print the current prospectus from Hotchkis and Wiley’s Web site under “Download Center.” Please read the prospectus carefully before investing. Investing in non-diversified funds may involve greater risks than those associated with investing in diversified funds, such as business risk, significant stock price fluctuations and sector concentration.
Past performance is no guarantee of future results. Due to market volatility, current Fund performance may be different than the performance shown. Total returns include changes in principal value, reinvested dividends and capital gain distributions. The investment return and principal value of the investment will fluctuate, and investors’ shares, when redeemed, may be worth more or less than their original cost. Class A returns reflect the current maximum initial sales charge of 5.25%. Expense limitations may have increased The Fund’s total return.
The S&P 500 Index, an unmanaged index, consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock’s weight in the index proportionate to its market value. The Lipper Multi-Cap Value Funds Average is the average annual total return performance of those funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. The index does not reflect the payment of transaction costs, fees and expenses associated with an investment in The Fund. The Fund’s value disciplines may prevent or restrict investment in major stocks in the benchmark index. It is not possible to invest directly in an index.
The Funds are distributed by Stephens Inc., Member NYSE/SIPC. Stephens Inc. is an affiliate of the Advisor.
NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE
