Summary

• Pzena Japan Focused Value Composite — Net generated a 0.9% return in the first quarter of 2026, underperforming both the TOPIX and TOPIX Value indices.
• Olympus, a medical equipment manufacturer, was the largest individual detractor after quarterly results came in below expectations, and quality control concerns resurfaced.
• Chemical company Resonac benefitted from strong demand for back-end semiconductor materials while Fukuoka Financial Group contributed following better-than-expected earnings and growing expectations for interest rate hikes.
• Pzena Investment Management initiated positions in Nakanishi and OMRON, citing temporary market pressures and self-help measures as opportunities for recovery in profitability over time.
• Pzena Investment Management exited positions in Resonac, INPEX, and Sumitomo Electric and reduced holdings in NSK and Daihen, all on valuation.

Japanese equities began the year strongly, supported by expectations for solid corporate earnings and foreign investor buying. Sentiment weakened later in the quarter, as the Iran conflict weighed on markets, and Japanese equities finished the period with only a

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