Brandes

Brandes Investment Partners is a stable firm with an unwavering commitment to value investing. The firm earns an Above Average Parent rating.

Brandes is a small independent asset manager based in San Diego and founded by Charles Brandes in 1974. He retired in 2018 and no longer has any role at the firm. He also exited the partnership, but he is still due payments for his interests in the firm until 2029. The ownership transfer is self-funded by the firm and its existing partners, preserving the firm's independence and its sound investment culture. The firm has a new CEO since May 2024, the fourth in its long existence. Firm veteran Oliver Murray, who was previously global head of client services, replaced Brent Woods, who had led the firm since 2014. Woods became president of the firm's general partner, with Murray reporting to him, and has kept his fund manager role at the firm. The firm introduced a newly created role of director of research and added three limited partners in 2024. Among the 31 partners of the firm, 25 belong to the investment and research team. Succession planning is on the firm's agenda, but more needs to be done in the coming years as several fund managers are getting closer to retirement age.

The firm's ownership structure contributes to staff stability. Brandes benefits from a pool of seasoned fund managers and analysts with very long tenures. It’s not rare that investment personnel spend the bulk of their careers at the firm. Teamwork is clearly emphasized with several investment committees running the strategies, which reduces key-person risk and helps to handle succession planning. Steadiness is also seen in the firm's commitment to its hallmark style. Brandes has stuck to value investing through thick and thin, even as assets under management declined sharply after the global financial crisis in 2008. According to senior management, the firm has remained profitable. We note that its investment capabilities have been safeguarded in tough times. The resurgence of the value style and inflows have put the firm in safer waters since 2022. But the firm's fund range has also performed well in the longer run when compared with appropriate value indexes, except for the emerging-markets equity strategy.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Brandes (Branding Name ID: BN00000899), is covered by Morningstar Manager Research.