Three Years of Excellence: Smead International Value Fund Celebrates Milestone in Global Investing

Rhea-AI Summary

Smead Capital Management celebrates the third anniversary of the Smead International Value Fund (SVXLX) as a public mutual fund. Originally established as Smead International Value Fund L.P., the fund converted to a mutual fund structure on January 12, 2022. The strategy has been identifying undervalued global opportunities for ten years.

The fund operates using Smead's eight proprietary criteria, focusing on companies with competitive advantages, strong balance sheets, and attractive economic returns on capital. CEO Cole Smead emphasizes the fund's alignment with the company's founding principles of disciplined patience and high-conviction investing in quality companies.

As the largest mutual fund manager headquartered in Arizona, Smead Capital Management has established itself as a respected global value investor. The fund's approach prioritizes long-term wealth creation through investment in exceptional companies, regardless of short-term market fluctuations.

Celebrating a Milestone in International Value Investing with Proven Results and Disciplined Strategy

PHOENIX--(BUSINESS WIRE)-- Smead Capital Management, a Phoenix-based investment management firm and a leader in value investing, proudly marks the third anniversary of the Smead International Value Fund (SVXLX) as a public mutual fund. Since its inception in January 2015, the fund has demonstrated a flagship strategy that exemplifies Smead’s commitment to long-term, value-driven investing in international markets.

Celebrating a decade of disciplined investing, the Smead International Value Fund exemplifies a commitment to uncovering undervalued opportunities in global equity markets. Established initially as the Smead International Value Fund L.P., the strategy has uncovered undervalued opportunities across the globe for ten years. Since its conversion to a mutual fund structure on January 12, 2022, the fund has delivered value by adhering to Smead’s eight proprietary criteria, targeting companies with competitive advantages, strong balance sheets, and attractive economic returns on capital.

“The Smead International Value Fund represents the essence of our investing philosophy—disciplined patience and high conviction in quality companies,” shared Cole Smead, CEO of Smead Capital Management. “Over the past three years, we’ve been honored to provide investors with a vehicle to capitalize on opportunities in international markets, guided by the same principles created by our founder and my father, Bill Smead, that have defined Smead Capital for close to two decades. As we look ahead, we remain confident in our ability to navigate evolving global markets and continue delivering value to our investors.”

The Smead International Value Fund has been recognized for its differentiated strategy, which focuses on long-term wealth creation by emphasizing wonderful companies despite short-term market movements. Over the past three years, the fund’s track record underscores its value as a key portfolio component for investors seeking international equity exposure.

Smead Capital Management remains the largest mutual fund manager headquartered in AZ and one of the most respected global value investors in the industry.

About Smead Capital Management

At Smead Capital Management, we are stock market investors. Our investors are individuals, advisors, family offices and institutions globally who invest with the firm through its mutual funds, separate accounts and other investment vehicles. We advise investors that fear stock market failure through a low turnover, differentiated value discipline seeking wonderful companies to build wealth. The firm manages $7.17 billion as of December 31, 2024. For more information visit http://www.smeadcap.com or call (877) 701-2883.

RECENT FUND PERFORMANCE

As of December 31, 2024	1 Year	3 Years	5 Years	10 Years	Since inception (1/12/2015*)
SVXLX (Investor Class)	4.72%	7.35%	13.38%	--	8.68%
MSCI EAFE NR Index	3.82%	1.65%	4.73%	--	5.46%
MSCI ACWI ex-US NR Index	5.54%	0.82%	4.10%	--	5.04%

As of January 31, 2025	1 Year	3 Years	5 Years	10 Years	Since inception (1/12/2015*)
SVXLX (Investor Class)	9.37%	6.97%	15.57%	9.03%	9.06%
MSCI EAFE NR Index	8.65%	5.12%	6.25%	5.69%	5.95%
MSCI ACWI ex-US NR Index	10.89%	3.45%	5.5%	5.23%	5.41%

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 877-807-4122.

*The since inception date is that of the Predecessor Fund, which commenced operations on January 12, 2015.

On 1/12/2022, the Smead International Value Fund (the “Fund”) succeeded to substantially all of the assets of the Smead International Value Fund L.P. (the “Partnership”). The investment objectives, policies and restrictions of the Fund are materially equivalent to those of the Partnership, and the Partnership was managed at all times with full investment authority by the Investment Adviser. The performance information includes performance for the Partnership. The Partnership was not registered under the Investment Company Act of 1940 and, therefore, was not subject to certain investment or other restrictions or requirements imposed by the 1940 Act or the Internal Revenue Code. If the Partnership had been registered under the 1940 Act, the Partnership’s performance might have been adversely affected.

The Smead International Value Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and it may be obtained by calling 877-807-4122, or visiting www.smeadfunds.com. Read it carefully before investing.

Mutual Fund investing involves risk. Principal loss is possible.

Foreign Securities Risk: Investments in securities of foreign companies involve additional risks, including less liquidity, currency-rate fluctuations, political and economic instability, differences in financial reporting standards, settlement delays and securities market regulation, and the imposition of foreign withholding taxes. Geopolitical events may cause market disruptions. For example, the UK withdrew from the EU on January 31, 2020, following a June 2016 referendum referred to as “Brexit.” Although the UK and EU have made a trade agreement that was entered into force on May 1, 2021, certain post-EU arrangements were outside the scope of the negotiating mandate and remain unresolved and subject to further negotiation and agreement. There is significant market uncertainty regarding Brexit’s longer-term ramifications, and the range of possible political, regulatory, economic and market outcomes are difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may continue to be a source of instability and cause considerable disruption in securities markets, including increased volatility and illiquidity, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Currency Risk: The value of the Fund’s foreign holdings as measured in U.S. dollars may be affected unfavorably by changes in foreign currency exchange rates. The Fund may also incur costs in connection with conversions between various currencies.

Foreign Tax Risk: Investing in foreign countries presents risks that the Fund or its investments may be subject to taxes that may adversely affect the Fund’s investment performance. Such taxes may be imposed suddenly or in an unpredictable manner, or pursuant to new interpretations. Dividends payable on the foreign securities contained in the Fund’s portfolio may be subject to foreign withholding taxes, thus reducing the Fund’s income.

The Smead Funds are distributed by Distribution Services, LLC. Distribution Services, and Smead Capital Management are not affiliated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205027764/en/

MEDIA CONTACT

Tucker Slosburg

Lyceus Group

tslosburg@lyceusgroup.com

206.635.4196

Source: Smead Capital Management

FAQ

When did SVXLX convert from a partnership to a mutual fund?

The Smead International Value Fund (SVXLX) converted from a partnership to a mutual fund structure on January 12, 2022.

What is the investment strategy of SVXLX?

SVXLX follows Smead's eight proprietary criteria, focusing on companies with competitive advantages, strong balance sheets, and attractive economic returns on capital, emphasizing long-term wealth creation.

How long has the Smead International Value Fund been operating in total?

The Smead International Value Fund has been operating for ten years, initially as a partnership before converting to a mutual fund structure.

What distinguishes SVXLX from other international value funds?

SVXLX is distinguished by its focus on long-term wealth creation, emphasis on high-quality companies regardless of short-term market movements, and adherence to Smead's disciplined investment criteria.

How has SVXLX performed since becoming a public mutual fund?

While specific performance metrics aren't provided in the press release, the fund has been delivering value to investors through its disciplined approach since converting to a mutual fund in January 2022.