Davis Global ADR SMA Portfolio
Overview
The Davis Global ADR SMA Portfolio
Davis Global ADR SMA Portfolio is a portfolio of attractive businesses from around the world selected using the time-tested Davis Investment Discipline. As the largest investor in the strategy, we have a unique commitment to client stewardship.1
Why Invest in the Davis Global ADR SMA Portfolio
Equity-Focused Research Firm:
Established in 1969, Davis is a leading specialist in equity investing. Our primary focus on equity research and unique investment discipline has built wealth for our clients over the long term.
Portfolio of Best of Breed Businesses:
The Portfolio invests in businesses in the U.S. and abroad, from both developed and developing markets. Utilizing rigorous independent research, we invest in durable, well-managed businesses with sustainable competitive advantages and attractive long-term growth prospects, selling at a discount to their true value.
Flexible, Opportunistic Approach:
We believe a bottom-up stock selection process and not mirroring the benchmark index are keys to long-term outperformance.
We Are Among the Largest Investors:1
We have a unique commitment to stewardship, generating attractive long-term results, managing risks and minimizing fees.
Experienced Management:
Danton Goei: 25 years with Davis Advisors
| Selective | Attractive Growth | Undervalued |
|---|---|---|
|
Global ADR SMA portfolio invests in only a select group of well-researched companies |
Global ADR SMA portfolio companies have grown at a similar rate to the index |
Global ADR SMA portfolio companies are 47% less expensive than the index |
Holdings** |
5-Year EPS Growth** |
P/E (Forward)** |
|
2947
31
GBL
SMA MSCI
ACWI |
Performance as of 9/30/23
| Average Annual Total Returns as of September 30, 2023 Global Equity SMA Composite |
2Q23* | YTD* | 1 Year |
3 Years |
5 Years |
Since Inception (10/1/14) |
|---|---|---|---|---|---|---|
| gross | -4.04% | 9.85% | 24.34% | 3.45% | 3.30% | 6.58% |
| net | -4.77% | 7.42% | 20.72% | 0.39% | 0.24% | 3.44% |
| MSCI ACWI Index | -3.40% | 10.06% | 20.80% | 6.89% | 6.46% | 7.14% |
* YTD is not annualized.
The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s account may be worth more or less than their original cost. Current performance may be higher or lower. Total return updates are available quarterly. Please ask your financial advisor to contact Davis Advisors.
Portfolio Characteristics as of 9/30/23
Geographically Diverse Portfolio
| United States | 45.4% | |
| Asia | 26.0% | |
| Europe | 17.8% | |
| Africa | 5.6% | |
| North & Central America Ex U.S. | 5.2% |
Top Countries
| United States |
| China |
| Denmark |
| South Africa |
| Switzerland |
| Singapore |
| Canada |
| Netherlands |
| Hong Kong |
| Germany |
Sector Breakdown
| Portfolio | MSCI ACWI® | |
|---|---|---|
| Financials | 41.0% | 15.8% |
| Consumer Discretionary | 25.2% | 11.2% |
| Communication Services | 13.2% | 7.6% |
| Information Technology | 5.6% | 21.4% |
| Health Care | 4.9% | 11.9% |
| Materials | 4.0% | 4.5% |
| Industrials | 2.6% | 10.4% |
| Real Estate | 2.2% | 2.3% |
| Consumer Staples | 1.3% | 7.1% |
| Energy | 0.0% | 5.2% |
| Utilities | 0.0% | 2.6% |
Market Cap Breakdown
| Portfolio | MSCI ACWI® | |
|---|---|---|
| Less than $3 Billion | 6.9% | 0.4% |
| $3–10 Billion | 4.2% | 6.7% |
| Greater than $10 Billion | 88.9% | 92.9% |
Portfolio Characteristics
| Portfolio | MSCI ACWI® | |
|---|---|---|
| Number of Holdings | 31 | 2,947 |
| Median Market Cap ($bn) | 27.4 | 9.9 |
| Weighted Average Market Cap ($bn) | 175.0 | 380.3 |
Top 10 Holdings
| Danske Bank | Denmark | Largest bank in Denmark serving more than 5 million retail customers |
| Meta Platforms | United States | The largest social media company in the world with more than 2 billion daily users. |
| Ping An Insurance | China | A leader in retail financial services and the largest insurer in Asia |
| Naspers | South Africa | A media conglomerate that operates a leading pay television business in South and Sub-Saharan Africa and holds interests in a range of e-commerce businesses around the world |
| Wells Fargo | United States | One of the largest banks in the U.S. |
| Julius Baer Group | Switzerland | A premier private bank serving ultrahigh net worth clients |
| Capital One Financial | United States | Top 10 U.S. bank with $240+ bn of deposits |
| DBS Group Holdings | Singapore | Largest bank in Singapore and among the largest in developed Asia |
| Amazon.com | United States | An e-commerce giant within the retail industry |
| Teck Resources | Canada | A 100-year-old diversified mining company with a focus on materials used in de-carbonization |
Click here for quarter-end holdings
Literature
| Insights into the Portfolio | ||
|---|---|---|
| Fact Sheet | Download Share | Goals of the Portfolio, top holdings, characteristics and Portfolio attributes. |
| Quarterly Review Book: Davis Global ADR SMA | Download Share | A comprehensive quarterly update on the Portfolio, including commentary on investment strategy, performance and Portfolio statistics, and holdings. |
| Davis Global ADR SMA: Selective. Attractive Growth. Undervalued. | Download Share | Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination. |
| Portfolio Commentaries | ||
| Davis Global ADR Portfolio Commentary - Fall Update 2023 | Download View Share | A quarterly discussion of the market environment, Portfolio performance, major positions, and investment opportunities. |
This material may be shared with existing and potential clients to provide information concerning market conditions and the investment strategies and techniques used by Davis Advisors to manage its client accounts. Please refer to Davis Advisors Form ADV Part 2 for more information regarding investment strategies, risks, fees, and expenses. Clients should also review other relevant material, including a schedule of investments listing securities held in their account.
1As of June 30, 2023.
2Gross of fees. Past performance is not a guarantee of future results.
** The Attractive Growth and Undervalued reference relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. Past performance is not a guarantee of future returns. Performance may vary. Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The values for the portfolio and index are the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio or index. Forward Price/Earnings (Forward P/E) Ratio is a stock’s current price divided by the company’s forecasted earnings for the following 12 months. The values for the portfolio and index are the weighted average of the P/E ratios of the stocks in the portfolio or index.
(8) Read here for objective/risk disclosures
(9) Read here for performance/rolling return disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756