Advisory Research International Small Cap Value Fund Receives Four-Star Morningstar Rating

Mutual Fund Relies on Qualitative Analysis to Identify Healthy Foreign Companies with Significant Upside Potential

Apr 17, 2013, 08:30 ET from Advisory Research Inc.

CHICAGO, April 17, 2013 /PRNewswire/ -- Advisory Research Inc., a leading investment firm with $10 billion in assets under management, announced today that its Advisory Research International Small Cap Value Fund (ADVIX) received a 4-Star Overall Morningstar Rating™.  The Fund was rated against the 36 Foreign Small/Mid Value funds for its overall risk-adjusted performance over the 3-year period ending March 31, 2013.

The Fund seeks to achieve long-term capital appreciation by investing primarily in the equity securities of small-capitalization companies located outside of the U.S. which trade at attractive valuations and possess balance sheets with minimal leverage. Using Advisory Research's due diligence process, the Fund's Portfolio Managers determine a company's upside potential and downside risk via a qualitative research process that includes interviews with senior management, company visits and analysis of competitors.  

Advisory Research Managing Directors Jonathan P. Brodsky, Drew Edwards, and Marco P. Priani act as Portfolio Managers of the Fund.

"The 4-Star Morningstar Rating™ is a testament to our Fund's proven investment style, which seeks to provide downside protection and upside market participation," said Mr. Brodsky. "Going forward, we will continue to utilize our team's global expertise and fundamental research capabilities to provide investors with access to, what we believe, is one of the most exciting and inefficient asset classes."

"Academic research and our own experience indicate that small-cap and value-oriented companies tend to outperform the broader market over time and market cycles, and we do not anticipate a change in that paradigm," said Mr. Edwards. "While investors frequently look to U.S. small-cap equities to diversify their portfolios, international small-cap equities remain a largely untapped resource."

The Fund was launched on March 31, 2010 as part of the International Small Cap Value strategy that Advisory Research began managing in 2006. Advisory Research now manages more than $300 million in this strategy via the Fund, another commingled vehicle and separate accounts.

For more information about Advisory Research, or to speak with someone about the Fund, please contact Tony Kono at 973-850-7323 or

About Advisory Research
Advisory Research Inc. is a leading investment firm with over $10 billion in assets under management as of March 31, 2013.  Advisory Research is a wholly-owned subsidiary of Piper Jaffray Companies, an international middle market investment bank.  Founded in 1974, Advisory Research is a value-oriented firm, providing U.S. and non-U.S. equity strategies through mutual funds and separately managed accounts.  The firm's core investment strategies include Small Cap Value, Small/Mid Cap Value, International Small Cap Value, Global Value, Japan Value, and Master Limited Partnerships.

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© 2013 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.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. The Advisory Research International Small Cap Value Fund was rated against the 36 U.S.-domiciled Foreign Small/Mid Value funds over the 3-year period ending March 31, 2013.  With respect to these Foreign Small/Mid Value funds, the Advisory Research International Small Cap Value Fund received a Morningstar Rating of 4-stars for the three-year period.  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.

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.

Ratings and rankings reflect past performance, which is no guarantee of future results. Share price and investment return fluctuate and an investor's shares may be worth more or less than original cost upon redemption. Go to for each fund's most recent month-end returns.

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


Tony Kono



SOURCE Advisory Research Inc.