Disclosure
For Professional Investors Only.
This recording is for institutional investors, and in the UK for professional investors and eligible counterparties only.
These materials are intended solely for informational purposes. The views expressed reflect the current views of Pzena Investment Management (“PIM”) as of the date hereof and are subject to change. PIM is a registered investment adviser registered with the United States Securities and Exchange Commission. Neither the speaker nor PIM undertake to advise you of any changes in the views expressed herein. There is no guarantee that any projection, forecast, or opinion in this material will be realized. Past performance is not indicative of future results.
An investment in the Pzena Focused Credit Opportunities Strategy (“Credit Strategy”) is speculative and involves a high degree of risk. The Credit Strategy is not intended to be a complete investment program. Pzena’s credit investment program involves substantial risk, including the loss of principal, and no assurance can be given that the Credit Strategy’s investment objectives will be achieved. As a result, the Credit Strategy’s performance may be volatile, and an investor could lose all or a substantial amount of his or her investment. The Credit Strategy’s fees and expenses will offset trading profits. There can be no assurances that the Credit Strategy will have a return on invested capital similar to the returns of other funds or accounts managed by the Firm, due to many factors, including differences in investment policies, risk parameters, economic conditions, regulatory climate, portfolio size, leverage, fee structure and expenses. The fact that other funds or accounts managed by the Firm have realized gains in the past is not an indication that the Credit Strategy will realize any gains in the future. Past performance is not a guarantee of, and is not necessarily indicative of, future results.
Debt instruments held in PIM’s credit portfolios are subject to market risk, including the risk of adverse price movements associated with changes in credit ratings, and the risk that the underlying borrower defaults on its debt obligations, possibly resulting in loss of investment capital. Fixed-rate instruments also bear the risk that rising interest rates result in a diminution of their value as other debt instruments are issued in the market at higher prevailing rates. Leveraged loans and high-yield bonds generally have higher default rates and more volatility than investment-grade credit. Certain debt instruments such as loans and private credit have a longer settlement cycle than equities and more settlement issues, increasing both settlement risk and counterparty exposure. An extended settlement cycle along with potential liquidity considerations for certain positions means that it will take significantly more time to convert such investments to cash. Although deployed on a limited basis in the credit portfolios, use of leverage increases counterparty risk and the risk of additional losses in investment capital where an investment thesis is not realized. In addition, valuation of credit investments may involve subjective judgements rendered in accordance with PIM’s applicable policies and procedures. PIM may fair value an asset if it does not believe reliable pricing is available. While PIM seeks to strategically optimize its construction of a credit portfolio to maximize returns while reasonably diversifying exposure across industries, its portfolios are generally concentrated and there are no assurances that PIM will be successful in executing its credit investment strategy.
The development of an investment strategy, philosophy, portfolio construction guidelines and risk management techniques for the Credit Strategy is an ongoing process. The strategies, techniques and methods described herein, and the instruments in which the Credit Strategy may invest, will therefore be modified by Pzena from time to time and over time. Nothing in this document shall in any way be deemed to limit the strategies, techniques, methods or processes which Pzena may adopt for the Credit Strategy, the factors that Pzena may take into account in analyzing investments for the Credit Strategy, or the instruments in which the Credit Strategy may invest. Depending on conditions and trends in instruments, markets, and the economy generally, Pzena may pursue other objectives, or employ other strategies, techniques, methods or processes and/or invest in different types of instruments, in each case, that it considers appropriate and in the best interest of the Credit Strategy without notice to, or the consent of, investors.
This recording does not constitute an offer to sell, or a solicitation of an offer to buy, securities or investment advisory services in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. Prospective investors are encouraged to consult their own professional advisers as to the implications of making an investment in any securities or investment advisory services.
For U.K. Investors Only:
This marketing communication is issued by Pzena Investment Management, Limited (“PIM UK”). PIM UK is a limited company registered in England and Wales with registered number 09380422, and its registered office is at 34-37 Liverpool Street, London EC2M 7PP, United Kingdom. PIM UK is an appointed representative of Vittoria & Partners LLP (FRN 709710), which is authorised and regulated by the Financial Conduct Authority (“FCA”). The Pzena documents have been approved by Vittoria & Partners LLP and, in the UK, are only made available to professional clients and eligible counterparties as defined by the FCA.
For EU Investors Only:
This marketing communication is issued by Pzena Investment Management Europe Limited (“PIM Europe”). PIM Europe (No. C457984) is authorised and regulated by the Central Bank of Ireland as a UCITS management company (pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011, as amended). PIM Europe is registered in Ireland with the Companies Registration Office (No. 699811), with its registered office at Riverside One, Sir John Rogerson’s Quay, Dublin, 2, Ireland. Past performance is not indicative of future results. The value of your investment may go down as well as up, and you may not receive upon redemption the full amount of your original investment. The views and statements contained herein are those of Pzena Investment Management and are based on internal research.
For Australia and New Zealand Investors Only:
This document has been prepared and issued by Pzena Investment Management, LLC (ARBN 108 743 415), a limited liability company (“Pzena”). Pzena is regulated by the Securities and Exchange Commission (SEC) under U.S. laws, which differ from Australian laws. Pzena is exempt from the requirement to hold an Australian financial services license in Australia in accordance with ASIC Corporations (Repeal and Transitional) Instrument 2016/396. Pzena offers financial services in Australia to ‘wholesale clients’ only pursuant to that exemption. This document is not intended to be distributed or passed on, directly or indirectly, to any other class of persons in Australia.
In New Zealand, any offer is limited to ‘wholesale investors’ within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 (‘FMCA’). This document is not to be treated as an offer, and is not capable of acceptance by, any person in New Zealand who is not a Wholesale Investor.
For Jersey Investors Only:
Consent under the Control of Borrowing (Jersey) Order 1958 (the “COBO” Order) has not been obtained for the circulation of this document. Accordingly, the offer that is the subject of this document may only be made in Jersey where the offer is valid in the United Kingdom or Guernsey and is circulated in Jersey only to persons similar to those to whom, and in a manner similar to that in which, it is for the time being circulated in the United Kingdom, or Guernsey, as the case may be. The directors may, but are not obliged to, apply for such consent in the future. The services and/or products discussed herein are only suitable for sophisticated investors who understand the risks involved. Neither Pzena Investment Management, Ltd. nor Pzena Investment Management, LLC nor the activities of any functionary with regard to either Pzena Investment Management, Ltd. or Pzena Investment Management, LLC are subject to the provisions of the Financial Services (Jersey) Law 1998.
For South African Investors Only:
Pzena Investment Management, LLC is an authorised financial services provider licensed by the South African Financial Sector Conduct Authority (licence nr: 49029).
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