Fund Evaluator:

PACE Small/Medium Co Value Equity A Overview

PACE Small/Medium Co Value Equity A (PEVAX) is an actively managed U.S. Equity Small Value fund. UBS Asset Management launched the fund in 2000.

The investment seeks capital appreciation. The fund invests primarily in stocks of companies that are believed to be undervalued or overlooked in the marketplace. Under normal circumstances, it invests at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in equity securities issued by small/medium capitalization companies. The fund may invest up to 10% of its total assets in non-U.S. securities, which may trade either within or outside the U.S.

About PACE Small/Medium Co Value Equity A (PEVAX)

There are 15 members of the management team with an average tenure of 5.34 years: Joe Gilbert (2023), Julie Kutasov (2012), Craig Stone (2012), J. Bryan Tinsley (2023), Robert Mitchell (2023), Fred Lee (2009), Mayoor Joshi (2019), A. Rama Krishna (2023), Sujith Kumar (2023), Daniel DeMonica (2023), Shu-Han Hsu (2022), Shreya Rajbhandary (2026), Adam Friedman (2023), Daniel Bandi (2023), Michael Wayton (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 2500 Value TR USD index with a weighting of 100%. PACE Small/Medium Co Value Equity A has 155 securities in its portfolio. The top 10 holdings constitute 16.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

PACE Small/Medium Co Value Equity A is part of the Equity global asset class and is within the U.S. Equity fund group. PACE Small/Medium Co Value Equity A has 2.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.9%. There is 2.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). PACE Small/Medium Co Value Equity A has 0.5% of the portfolio in cash.

Assets Under Management

The fund has $11 million in total assets, which is below the $417 million average for the Small Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PEVAX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PACE Small/Medium Co Value Equity A expense ratio is high compared to funds in the Small Value category. PACE Small/Medium Co Value Equity A has an expense ratio of 1.28%, which is 10% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PACE Small/Medium Co Value Equity A has a portfolio turnover rate of 42%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 128% for the Small Value category.

Recently, in the month of July 2026, PACE Small/Medium Co Value Equity A returned 0.8%, which earned it a grade of B, as the Small Value category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

PACE Small/Medium Co Value Equity A has a trailing yield of 0.22%, which is below the 0.77% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PACE Small/Medium Co Value Equity A Grades

Year to date, the fund has returned 19.0%, 1.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 26.7% over the past year (grade of D), 10.9% over the past three years (grade of D) and 5.7% per year over the past five years (grade of F) and 8.8% per year over the past 10 years (grade of D).

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