Davis International ADR SMA Portfolio

    Overview

    The Davis International ADR SMA Portfolio

    Davis International ADR SMA Portfolio is a portfolio of attractive businesses from outside of the U.S. 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 International 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 outside of the U.S. 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

    Intl ADR SMA invests in only a select group of well-researched companies

    Intl ADR SMA portfolio companies have grown more than the index

    Intl ADR SMA portfolio companies are 45% less expensive than the index

    Holdings**

    5-Year EPS Growth**

    P/E (Forward)**

    2231
    21
    INTL
    SMA
    MSCI ACWI
    ex US
    16.5%
    INTL
    SMA
    7.6x
    INTL
    SMA

       “The companies of Davis International ADR SMA Portfolio have grown more than the companies in the index, yet are 45% less expensive.”

    - Portfolio Manager Danton Goei

    Performance as of 3/31/24

    Average Annual Total Returns
    as of March 31, 2024
    International Equity SMA Composite
    1Q24* YTD* 1
    Year
    3
    Years
    5
    Years
    Since
    Inception
    (10/1/14)
    gross 4.23% 4.23% -1.71% -8.25% 0.54% 3.14%
    net 3.46% 3.46% -4.63% -11.25% -2.44% 0.09%
    MSCI ACWI ex US Index 4.69% 4.69% 13.26% 1.93% 5.96% 4.53%

    * 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 3/31/24

    Geographically Diverse Portfolio

    Asia 50.3%
    Europe 31.7%
    North & Central America 11.2%
    Africa 6.8%

    Top Countries

    China
    Japan
    Denmark
    Singapore
    Switzerland
    Hong Kong
    Netherlands
    South Africa
    Canada
    France

    Sector Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Financials 40.9% 21.4%
    Consumer Discretionary 31.2% 11.8%
    Industrials 11.6% 13.8%
    Information Technology 6.4% 13.4%
    Materials 6.0% 7.4%
    Real Estate 3.9% 2.0%
    Health Care 0.0% 9.2%
    Consumer Staples 0.0% 7.4%
    Energy 0.0% 5.5%
    Communication Services 0.0% 5.1%
    Utilities 0.0% 3.0%

    Market Cap Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Less than $3 Billion 2.2% 0.6%
    $3–10 Billion 2.8% 12.8%
    Greater than $10 Billion 95.0% 86.6%

    Portfolio Characteristics

    Portfolio MSCI ACWI®
    (ex US)
    Number of Holdings 21 2,231
    Median Market Cap ($bn) 32.0 8.7
    Weighted Average Market Cap ($bn) 56.2 100.9

    Top 10 Holdings

    Danske Bank Denmark Largest bank in Denmark serving more than 5 million retail customers
    DBS Group Holdings Singapore Largest bank in Singapore and among the largest in developed Asia
    Julius Baer Group Switzerland A premier private bank serving ultrahigh net worth clients
    Meituan Platforms China A web-based shopping platform for locally sourced consumer products and retail services
    AIA Group Hong Kong 2nd largest life insurer in China with operations throughout Asia-Pacific offering financial services to a large, under-penetrated addressable market 
    Prosus Netherlands A global consumer internet company and spin-off of South African e-commerce group, Naspers
    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
    Tokyo Electron Japan One of the world\'s largest manufacturers of semiconductor production equipment
    Teck Resources Canada A 100-year-old diversified Canadian mining company with a focus on materials used in decarbonization

    Click here for quarter-end holdings  

    Literature

    Insights into the Portfolio
    Fact Sheet Download

    Goals of the Portfolio, top holdings, characteristics and Portfolio attributes.

    Quarterly Review Book: Davis International ADR SMA Download

    A comprehensive quarterly update on the Portfolio, including commentary on investment strategy, performance and Portfolio statistics, and holdings.

    Davis International ADR SMA: Selective. Attractive Growth. Undervalued. Download

    Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination.

    Portfolio Commentaries
    Davis International ADR Portfolio Commentary - Winter Update 2024 Download View

    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.

    The Davis International Portfolio is represented by Davis Advisors’ International SMA Composite. See Performance disclosure for a description of the Composite.


    1As of December 31, 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.


    Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756