VRTX - Tweedy Browne Fund Q1 2023 Commentary

2023-05-23 08:30:00 ET

Summary

• Tweedy, Browne Company LLC provides investment advisory services. The Company offers portfolio management, financial planning, and consulting services for individuals, institutions, partnerships, pension and profit-sharing plans, charitable foundations, trusts, and offshore funds. Tweedy, Browne serves investors in the U.S.
• Many, if not most, stocks held in the Funds’ portfolios performed quite well in the first quarter.
• Portfolio activity slowed somewhat during the quarter as equity prices advanced.

The performance data shown above represents past performance and is not a guarantee of future results. 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 may be higher or lower than the performance data quoted. Please visit www.tweedy.com to obtain performance data which is current to the most recent month end.

† Tweedy, Browne has voluntarily agreed, effective May 22, 2020, through at least July 31, 2024, to waive the International Value Fund's fees whenever the Fund's average daily net assets ("ADNA") exceed $6 billion. Under the arrangement, the advisory fee payable by the Fund is as follows: 1.25% on the first $6 billion of the Fund's ADNA; 0.80% on the next $1 billion of the Fund's ADNA (ADNA over $6 billion up to $7 billion); 0.70% on the next $1 billion of the Fund's ADNA (ADNA over $7 billion up to $8 billion); and 0.60% on the remaining amount, if any, of the Fund's ADNA (ADNA over $8 billion). The Fund's performance would have been lower had fees not been waived during certain periods from May 22, 2020 onwards pursuant to this arrangement.

* Tweedy, Browne has voluntarily agreed, effective December 1, 2017, through at least July 31, 2024, to waive a portion of the International Value Fund II's, the Value Fund's, and the Worldwide High Dividend Yield Value Fund's investment advisory fees and/or reimburse a portion of each Fund's expenses to the extent necessary to keep each Fund's expense ratio in line with the expense ratio of the International Value Fund. (For purposes of this calculation, each Fund's acquired fund fees and expenses, brokerage costs, interest, taxes, and extraordinary expenses are disregarded, and each Fund's expense ratio is rounded to two decimal points.) The net expense ratios set forth above reflect this limitation, while the gross expense ratios do not. The International Value Fund II's, Value Fund's and Worldwide High Dividend Yield Value Fund's performance would have been lower had certain fees and expenses not been waived and/or reimbursed during certain periods from December 1, 2017 onwards pursuant to this arrangement.

The Funds do not impose any front-end or deferred sales charges. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Funds' financial statements.

Commentary

After coming out of the starting gates strong at the beginning of the year, global equity markets shrugged off a midMarch banking crisis and were able to finish the quarter solidly in positive territory, led in large part by the performance of large-cap technology stocks. Despite underperforming their benchmarks in this "risk on" environment, the Tweedy, Browne Funds made considerable financial progress during the quarter, producing returns of between 5.09% and 6.64%. While global equity markets clearly demonstrated their resilience after an extremely challenging year in 2022, it remains to be seen whether they have fully adjusted to reflect new economic and business realities.

As you can see from the peer group comparison chart below, the International Value Fund continues to rank near the top of its peer group (Morningstar Foreign Large Value Funds) in virtually every standardized reporting period.

TWEEDY, BROWNE INTERNATIONAL VALUE FUND

MORNINGSTAR PEER GROUP RESULTS

Morningstar has ranked the International Value Fund among its peers in the Foreign Large Value Category. Percentile rank in a category is the Fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. The "out of" number represents the total number of funds in the category for the listed time period. Percentile rank in a category is based on total returns, which include reinvested dividends and capital gains, if any, and exclude sales charges. Rankings may have been lower had fees not been waived from May 22, 2020 onwards. The preceding performance data represents past performance and is not a guarantee of future results.

Performance Attribution

Please note that the individual companies discussed herein were held in one or more of the Funds during the quarter ended March 31, 2023, but were not necessarily held in all four of the Funds. Please refer to each Fund's portfolio page, beginning on page 5, for selected purchase and sale information during the quarter and the footnotes on page 14 for each Fund's respective holdings in each of these companies as of March 31, 2023.

Many, if not most, stocks held in the Funds' portfolios performed quite well in the first quarter. This was particularly true for the Funds' non-US equity holdings, many of which have come into their own over the last two quarters, despite years of underperformance versus their US counterparts - a welcome shift given that our Funds' portfolios have been somewhat non-US-centric in terms of their portfolio allocations for well over a decade.

The Funds received a significant boost from their European holdings during the reporting period, particularly their German, Swedish, and Dutch holdings. For example, a quartet of companies in Sweden, i.e. SKF ( SKFRY ) (ball bearings), Trelleborg ( TBABF ) ( TBABY ) (seals and tires), Husqvarna ( HUSQF ) (outdoor maintenance and recreational products), and Autoliv ( ALV ) (seatbelts and airbags) were significant contributors to the Fund's performance during the quarter. The Funds also received a long overdue boost from their Chinese and Hong Kong-based holdings in the wake of China's reopening and the government's signaling of a relaxation of their interventionist policies. This included strong returns in Baidu ( BIDU ) and Alibaba ( BABA ), among others. A diversified group of small and medium-sized Japanese companies including Sumitomo Heavy Industries ( SOHVF ), Kuraray ( KURRF ), Nifco ( NIFCY ), Fuso Chemical, and Yamabiko also contributed nicely to returns during the quarter. This is not to suggest that the Funds' US-based holdings didn't also contribute to the quarter's returns. Long-term holdings, Alphabet ( GOOG ) ( GOOGL ) and Cisco ( CSCO ), produced strong returns for the quarter as did two more recent additions, FedEx ( FDX ) and Vertex Pharmaceuticals ( VRTX ).

In contrast, the Funds received very little in the way of return contributions from many of their financial, energy, media, and healthcare holdings. The Funds' bank holdings faced headwinds from declining interest rates and a midquarter banking crisis which led to the failure of two US banks (Silicon Valley Bank ( SIVBQ ) and Signature Bank ( SBNY )), and a last-minute bailout acquisition of Credit Suisse ( CS ) by UBS ( UBS ). While it would appear that a crisis was avoided by the quick intervention of bank regulators in the US and Switzerland, some uneasiness still remains in the global banking community. This turmoil couldn't help but have a negative impact on investor sentiment and in turn on Fund bank holdings such as Wells Fargo ( WFC ), Bank of America ( BAC ), US Bancorp ( USB ), and Truist ( TFC ). Other than KBC, the Belgium-based bank, the Funds have little exposure to European banks. Their two Singapore-based bank holdings, United Overseas Bank ( UOVEY ) and DBS finished the quarter marginally in the red in terms of price return.))

On the energy front, the Funds' one significant oil & gas holding, the French oil giant, TotalEnergies ( TTE ), finished the quarter down modestly as oil prices continued to drift lower during the quarter. Megacable ( MHSDF ), which rejected a buyout offer from its Mexican rival, Televisa ( TV ), and Swiss-based TX Group ( TDAAF ), which reported disappointing earnings, also had a difficult quarter. A number of the Funds' healthcare holdings were also negative contributors during the reporting period including, Fresenius, the German-based healthcare conglomerate; Johnson & Johnson ( JNJ ); Roche ( RHHBY ); and biotech holding, Ionis Pharmaceuticals ( IONS ).)

Portfolio Activity

Portfolio activity slowed somewhat during the quarter as equity prices advanced. While there were a few new positions established, and a few sales, portfolio activity overall was quite modest compared to the rather brisk pace of the last two years. Newly established positions in one or more of the Funds included Brenntag SE ( BNTGF ), the German specialty chemical company; Mitsubishi Gas ( MBGCF ), the Japanese chemical producer; Johnson Electric ( JELCF ), the Hong Kong-based manufacturer of micromotors; and Computacenter PLC ( CUUCF ), the British technology product distributor. All four of these companies at purchase, in our view, were trading at significant discounts from our estimates of their intrinsic values, were financially strong, and had attractive runways for potential future growth.

On the sell side, a number of holdings were sold or pared back, including Babcock International ( BCKIF ), Jungheinrich ( JGHHY ), Krones ( KRNNF ), Shizuoka Gas, CK Hutchison ( CKHUY ), Alphabet, and Unilever ( UL ), among others. The stock prices of these businesses had either reached our estimates of their underlying intrinsic values or had been compromised in some way by virtue of declines in our estimates of their underlying intrinsic values and future growth prospects. Or, they may have been sold or trimmed to make room for new additions, or to generate losses, which could be used to offset realized gains.)

Portfolio Positioning And Outlook

As we have written in previous commentaries, we believe a reset is likely afoot in our capital markets. With inflation remaining persistent - and interest rates that, in our view, are likely to normalize higher from the zero-bound levels of the last decade - the next ten years could prove to be radically different from the previous ten years. In our humble view, it could very well be an environment that favors active investment strategies over passive strategies, value stocks over their growth counterparts, and non-US-based equities over "big tech" US-based equities. To that end, we believe the Tweedy, Browne Funds remain well positioned to take advantage of this apparent "reset." First and foremost, their portfolios bear little resemblance to large-cap indexes. The multi-cap character of our International Value Fund's portfolio has been enhanced over the last couple of years by the addition of a significant number of smaller and medium capitalization companies. For example, as of March 31, 26% of our flagship Fund's total equity market value was invested in companies whose market capitalizations were equal to or less than $10 billion. This compares to a little over 10% for the same cohort in the MSCI EAFE Index.

The Funds' country weightings, in many instances, are also radically different from those of the MSCI EAFE or World Indices. For example, at quarter end, the Worldwide High Dividend Yield Value Fund had approximately 14% of its equity capital invested in US companies compared to the MSCI World's US weighting of 68%. The unhedged International Value Fund II has roughly 6% of its equity market capitalization invested in Japanese companies compared to the MSCI EAFE Index weighting of 21% in Japan. In addition, according to Bloomberg, as of March 31, all four Funds have "active share" calculations respectively of 89.8% (International Value), 90.0% (International Value II), 94.2% (Value), and 95.5% (Worldwide High Dividend Yield Value). Active share calculates the percentage of stock holdings in a fund portfolio that differs from the fund portfolio's benchmark index. Secondly, all four of our Funds have been non-US-centric in terms of their portfolio allocations for years, and remain so today. As we mentioned earlier, the valuation differential between US and non-US equities has grown quite significantly over the last many years, and in our view, continues to be largely in favor of non-US equities.

And thirdly, the Tweedy, Browne Fund portfolios, in our view, remain attractive, on the whole from a valuation perspective. All four of our Funds' portfolio holdings, when considered in aggregate, generally trade at reasonably attractive weighted average valuation multiples such as price in relation to forward earnings, price in relation to book value, and price in relation to measures of pre-tax operating income. The owner earnings yield, defined as net after-tax profit divided by enterprise value, for many, if not most of the new buys for our Funds over the last couple of years, has typically been right around 7-8% or higher which compares quite favorably to most corporate after-tax earnings yields.

While the near-term investment environment remains fraught with uncertainty as market prices adjust to reflect the new economic realities, we remain optimistic about our future and equity returns moving forward. We intend to take full advantage of the ongoing "sea change" in our capital markets. We would encourage our shareholders to buckle up for what could be a bumpy, but profitable time ahead for our style of investing. It would indeed appear that price matters again.

Thank you for investing with us.

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Roger R. de Bree, Andrew Ewert, Frank H. Hawrylak, Jay Hill, Thomas H. Shrager, John D. Spears, Robert Q. Wyckoff, Jr.

Investment Committee

Tweedy, Browne Company LLC

April 2023

International Value Fund

As Of March 31, 2023

* Includes cash, Treasurys, and money market funds.

P: PURCHASE S: SALE A: ADD T: TRIM TO: TAKEOVER M: MERGER

Other Fund Information

Allocations of investments shown above reflect the Fund's investments on 03/31/23 and may not be representative of the Fund's current or future holdings.

International Value Fund

As Of March 31, 2023

Total Annual Fund Operating Expense Ratios†*

As of 03/31/2022: 1.38% (gross), 1.34% (Net) // As of 03/31/2023: 1.40% (gross), 1.40% (Net)

The performance shown above represents past performance and is not a guarantee of future results. 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 may be lower or higher than the performance data quoted. Please visit www.tweedy.com to obtain performance data, which is current to the most recent month end.

† Tweedy, Browne has voluntarily agreed, effective May 22, 2020, through at least July 31, 2024, to waive the Fund's fees whenever the Fund's average daily net assets ("ADNA") exceed $6 billion. Under the arrangement, the advisory fee payable by the Fund is as follows: 1.25% on the first $6 billion of the Fund's ADNA; 0.80% on the next $1 billion of the Fund's ADNA (ADNA over $6 billion up to $7 billion); 0.70% on the next $1 billion of the Fund's ADNA (ADNA over $7 billion up to $8 billion); and 0.60% on the remaining amount, if any, of the Fund's ADNA (ADNA over $8 billion). The Fund's performance would have been lower had fees not been waived during certain periods from May 22, 2020 onwards pursuant to this arrangement. * The Fund does not impose any front-end or deferred sales charges. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Fund's financial statements.

Please refer to footnotes (1) through (7) at the end of this commentary for descriptions of the Fund's indexes.

International Value Fund II - Currency Unhedged

As Of March 31, 2023

* Includes cash and money market funds.

P: PURCHASE S: SALE A: ADD T: TRIM TO: TAKEOVER M: MERGER

Allocations of investments shown above reflect the Fund's investments on 03/31/23 and may not be representative of the Fund's current or future holdings.

International Value Fund II - Currency Unhedged

As Of March 31, 2023

Total Annual Fund Operating Expense Ratios†*

As of 03/31/2022: 1.37% (gross), 1.34% (Net) // As of 03/31/2023: 1.40% (gross), 1.40% ((Net)

The performance shown above represents past performance and is not a guarantee of future results. 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 may be lower or higher than the performance data quoted. Please visit www.tweedy.com to obtain performance data which is current to the most recent month end.

† Tweedy, Browne has voluntarily agreed, through at least July 31, 2024, to waive a portion of the Fund's investment advisory fees and/or reimburse a portion of the Fund's expenses to the extent necessary to keep the Fund's expense ratio in line with the expense ratio of the International Value Fund. (For purposes of this calculation, each Fund's acquired fund fees and expenses, brokerage costs, interest, taxes and extraordinary expenses are disregarded, and each Fund's expense ratio is rounded to two decimal points.) Please refer to the Fund's prospectus for additional information on the Fund's expenses. The Fund's performance would have been lower had certain fees and expenses not been waived and/or reimbursed during certain periods from December 1, 2017 onwards pursuant to this arrangement.

* The Fund does not impose any front-end or deferred sales charges. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Fund's financial statements.

Please refer to footnotes (1) through (7) at the end of this commentary for descriptions of the Fund's indexes.

Value Fund

As Of March 31, 2023

* Includes cash, Treasurys, and money market funds.

P: PURCHASE S: SALE A: ADD T: TRIM TO: TAKEOVER M: MERGER

Allocations of investments shown above reflect the Fund's investments on 03/31/23 and may not be representative of the Fund's current or future holdings.

Value Fund

As Of March 31, 2023

Total Annual Fund Operating Expense Ratios †*

As of 03/31/2022: 1.39% (gross), 1.34% (Net) // As of 03/31/2023: 1.40% (gross), 1.40% (Net)

The performance shown above represents past performance and is not a guarantee of future results. 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 may be lower or higher than the performance data quoted. Please visit www.tweedy.com to obtain performance data which is current to the most recent month end.

† Tweedy, Browne has voluntarily agreed, through at least July 31, 2024, to waive a portion of the Fund's investment advisory fees and/or reimburse a portion of the Fund's expenses to the extent necessary to keep the Fund's expense ratio in line with the expense ratio of the International Value Fund. (For purposes of this calculation, each Fund's acquired fund fees and expenses, brokerage costs, interest, taxes and extraordinary expenses are disregarded, and each Fund's expense ratio is rounded to two decimal points.) Please refer to the Fund's prospectus for additional information on the Fund's expenses. The Fund's performance would have been lower had certain fees and expenses not been waived and/or reimbursed during certain periods from December 1, 2017 onwards pursuant to this arrangement.

* The Fund does not impose any front-end or deferred sales charges. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Fund's financial statements.

Please refer to footnotes (1) through (7) at the end of this commentary for descriptions of the Fund's indexes.

Worldwide High Dividend Yield Value Fund

As Of March 31, 2023

* Includes cash and money market funds.

Allocations of investments shown above reflect the Fund's investments on 03/31/23 and may not be representative of the Fund's current or future holdings.

P: PURCHASE S: SALE A: ADD T: TRIM TO: TAKEOVER M: MERGER

† Please note that the Average-Weighted Divided Yield on Fund Stocks Alone shown below and the dividend yield of each of the top 20 equity holdings in the Fund's portfolio shown above are not representative of the Fund's yield, nor do they represent performance of the Fund. These figures solely represent the dividend yield of the individual stocks shown. Please refer to the standardized yield in the performance table on the following page for the Fund's yield.

Worldwide High Dividend Yield Value Fund

As Of March 31, 2023

T otal Annual Fund Operating Expense Ratios †*: As of 03/31/2022: 1.48% (gross); 1.34% (Net) // As of 03/31/2023: 1.49% (gross), 1.39% (Net) 30-Day Standardized Yield as of 03/31/2023: 2.13% (Subsidized); 1.99% (Unsubsidized)

The performance shown above represents past performance and is not a guarantee of future results. 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 may be lower or higher than the performance data quoted. Please visit www.tweedy.com to obtain performance data which is current to the most recent month end.

† Tweedy, Browne has voluntarily agreed, through at least July 31, 2024, to waive a portion of the Fund's investment advisory fees and/or reimburse a portion of the Fund's expenses to the extent necessary to keep the Fund's expense ratio in line with the expense ratio of the International Value Fund. (For purposes of this calculation, each Fund's acquired fund fees and expenses, brokerage costs, interest, taxes and extraordinary expenses are disregarded, and each Fund's expense ratio is rounded to two decimal points.) Please refer to the Fund's prospectus for additional information on the Fund's expenses. The Fund's performance would have been lower had certain fees and expenses not been waived and/or reimbursed during certain periods from December 1, 2017 onwards pursuant to this arrangement.

* The Fund does not impose any front-end or deferred sales charges. The expense ratios shown above reflect the inclusion of acquired fund fees and expenses (i.e., the fees and expenses attributable to investing cash balances in money market funds) and may differ from those shown in the Fund's financial statements.

Please refer to footnotes (1) through (7) at the end of this commentary for descriptions of the Fund's indexes.

Notes

1. Indexes are unmanaged, and the figures for the indexes shown include reinvestment of dividends and capital gains distributions and do not reflect any fees or expenses. Investors cannot invest directly in an index.
2. The MSCI EAFE Index is a free float-adjusted, market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the US and Canada. The MSCI EAFE Index (in USD) reflects the return of the MSCI EAFE Index for a US dollar investor. The MSCI EAFE Index (Hedged to USD) consists of the results of the MSCI EAFE Index hedged 100% back into US dollars and accounts for interest rate differentials in forward currency exchange rates. Results for each index are inclusive of dividends and net of foreign withholding taxes.
3. Inception dates for the International Value Fund, International Value Fund II, Value Fund, and Worldwide High Dividend Yield Value Fund are June 15, 1993, October 26, 2009, December 8, 1993, and September 5, 2007, respectively. Prior to 2004, information with respect to the MSCI EAFE and MSCI World Indexes used was available at month end only; therefore, the since-inception performance of the MSCI EAFE Indexes quoted for the International Value Fund reflects performance from May 31, 1993, the closest month end to the International Value Fund's inception date, and the since inception performance of the MSCI World Index quoted for the Value Fund reflects performance from November 30, 1993, the closest month end to the Value Fund's inception date. Information with respect to the Morningstar Foreign Stock Fund Average is available at month end only; therefore the closest month end to the inception date of the International Value Fund, May 31, 1993, was used; and closest month end to the inception date of International Value Fund II, October 31, 2009, was used.
4. The S&P 500/MSCI World Index (Hedged to USD) is a combination of the S&P 500 Index and the MSCI World Index (Hedged to USD), linked together by Tweedy, Browne, and represents the performance of the S&P 500 Index for the periods 12/08/93 - 12/31/06 and the performance of the MSCI World Index (Hedged to USD) beginning 01/01/07 and thereafter (beginning December 2006, the Fund was permitted to invest more significantly in non-US securities). The S&P 500 Index is a market capitalization-weighted index composed of 500 widely held common stocks that assumes the reinvestment of dividends. The index is generally considered representative of US large capitalization stocks.
5. The MSCI World Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index (in USD) reflects the return of this index for a US dollar investor. The MSCI World Index (Hedged to USD) consists of the results of the MSCI World Index with its foreign currency exposure hedged 100% back into US dollars. The index accounts for interest rate differentials in forward currency exchange rates. The MSCI World High Dividend Yield Index reflects the performance of equities in the MSCI World Index (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The MSCI World High Dividend Yield Index (in USD) reflects the return of the MSCI World High Dividend Yield Index for a US dollar investor. Results for each index are inclusive of dividends and net of foreign withholding taxes.
6. Since September 30, 2003, the Foreign Stock Fund Average is calculated by Tweedy, Browne based on data provided by Morningstar and reflects average returns or portfolio turnover rates of all mutual funds in the Morningstar Foreign Large-Value, Foreign Large-Blend, Foreign Large-Growth, Foreign Small/Mid-Value, Foreign Small/Mid-Blend, and Foreign Small/Mid-Growth categories. Funds in these categories typically invest in international stocks and have less than 20% of their assets invested in US stocks. These funds may or may not be hedged to the US dollar, which will affect reported returns. References to "Foreign Stock Funds" or the "Foreign Stock Fund Average" that predate September 30, 2003, are references to Morningstar's Foreign Stock Funds and Foreign Stock Fund Average, respectively, while references to Foreign Stock Funds and the Foreign Stock Fund Average for the period beginning September 30, 2003, refer to Foreign Stock Funds and the Foreign Stock Fund Average as calculated by Tweedy, Browne.
7. Since April 28, 2017, the Global Stock Fund Average is calculated by Tweedy, Browne based on data provided by Morningstar, and reflects average returns or portfolio turnover rates of all mutual funds in the Morningstar Global Large Stock (including Global Large Value, Global Large Growth, and Global Large Blend categories) and Global Small/Mid Stock categories. Prior to April 28, 2017, the Global Stock Fund Average was calculated by Morningstar. Funds in these categories typically invest in stocks throughout the world while maintaining a percentage of their assets (normally 20% - 60%) invested in US stocks. These funds may or may not be hedged to the US dollar, which will affect reported returns. References to "Global Stock Funds" or the "Global Stock Fund Average" that predate April 28, 2017, are references to Morningstar's Global Stock Funds and Global Stock Fund Average, respectively, while references to Global Stock Funds and the Global Stock Fund Average for the period beginning April 28, 2018, refer to the Global Stock Funds and Global Stock Fund Average as calculated by Tweedy, Browne.

The Funds are actively managed, unlike the indexes, and consist of securities that vary widely from those included in the indexes in terms of portfolio composition, country and sector allocations, and other metrics. Hedged indexes are included to illustrate how the stocks that are components of the hedged indexes would have performed in their local currencies for a US dollar investor. The hedged indexes are fully nominally hedged on a monthly basis, whereas the International Value Fund and the Value Fund only hedge their perceived currency exposure where practicable. Tweedy, Browne applies a different hedging methodology than the hedged indexes. Index results are shown for illustrative purposes only.

The performance results reflected above are over the course of many years and reflect multiple market cylces and varying geopolitical, market and economic conditions. Past performance is no guarantee of future results.

For further details see:

Tweedy, Browne Fund Q1 2023 Commentary