Pzena Investment Management Inc's Business Segments

Pzena Investment Management, Inc. was formed in 2007 and is the sole managing member of Pzena Investment Management, LLC, which is our operating company. Founded in 1995, Pzena Investment Management, LLC is a value-oriented investment management company. We believe that we have established a positive, team-oriented culture that enables us to attract and retain highly qualified people. Over the past twenty years, we have built a diverse, global client base of respected and sophisticated institutional investors, select third-party distributed mutual funds for which we act as sub-investment adviser, and funds for which we act as investment adviser.

Pzena Investment Management Inc. specializes in value-oriented investment strategies, primarily catering to institutional clients, including pension funds, endowments, foundations, and family offices. Additionally, the firm provides investment solutions for retail investors through mutual funds and other vehicles. Here’s a comprehensive overview of the segments, products, and services offered by Pzena Investment Management:

1. Investment Management for Institutional Clients
Pzena Investment Management provides tailored investment strategies for a variety of institutional clients. This segment includes:

- Separate Accounts: Customized investment accounts for institutional clients, often designed to meet specific investment goals and risk tolerance. These accounts allow for significant customization based on the clients needs.

- Institutional Investment Strategies: Pzena employs multiple value-oriented strategies, which include:
- Global Focused Value: Invests in undervalued global companies, focusing on long-term appreciation.
- Large Cap Expanded Value: Targets larger companies exhibiting significant value characteristics.
- Emerging Markets Focused Value: Concentrates on value investments in emerging market economies.
- Global Expanded Value: Combines strategies across regional boundaries to capture value in a broader context.

Mutual Funds
For U.S. investors who may not meet the minimum investment size for separate accounts, Pzena offers mutual funds:

- Pzena Mutual Funds: Launched in 2014, these funds provide no-load, open-end share classes which appeal to various investor profiles. They are designed to reflect the same investment strategies offered in separate accounts but in a format that is more accessible to individuals and smaller institutions. The mutual funds may include:
- Large Cap Value Fund
- International Value Fund
- Emerging Markets Value Fund

Pzena Value Funds plc
This segment targets non-U.S. institutional investors through a family of funds based in Ireland:

- UCITS-compliant Sub-funds: Pzena Value Funds plc includes sub-funds that adhere to the stringent regulations required for UCITS (Undertakings for Collective Investment in Transferable Securities) investments, which allow them to be marketed across Europe and beyond. Key offerings include:
- Emerging Markets Focused Value Sub-fund
- Global Expanded Value Sub-fund
- Global Focused Value Sub-fund
- Large Cap Expanded Value Sub-fund

Private Placement Vehicles
Pzena also provides investment access through various private structures, which include:

- Collective Investment Trusts (CITs): These are pooled investment vehicles that allow collective investment from retirement plans and institutional investors, often with lower fees compared to mutual funds.

- Private Funds: Limited partnerships or limited liability companies that offer sophisticated investors the chance to participate in specific strategies, predominantly focusing on value investing globally.

Advisory Services
Pzena earns revenue primarily through advisory fees based on assets under management (AUM):

- Fee Structure: Advisory fees vary based on investment strategy and generally follow a tiered structure, which incentivizes higher AUM by reducing management fees as the total amount under management increases.

Investment Philosophy
Central to Pzenas offering is its value-oriented investment philosophy. The firm leverages:

- Deep Fundamental Research: A rigorous analysis process to identify undervalued companies with strong potential for price appreciation over time.

- Long-term Investment Horizon: Emphasizing patience and discipline in capturing value, often holding positions for extended periods to realize their full potential.

In summary, Pzena Investment Management Inc. provides a comprehensive suite of investment management services, targeting both institutional and retail investors through separate accounts, mutual funds, UCITS, and private placement vehicles, all while adhering to a disciplined value investing philosophy.