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: 24 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 faster than the index

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

    Holdings**

    5-Year EPS Growth**

    P/E (Forward)**

    2268
    20
    INTL
    SMA
    MSCI ACWI
    ex US
    25.6%
    11.8%
    INTL
    SMA
    MSCI ACWI
    ex US
    6.6x
    12.0x
    INTL
    SMA
    MSCI ACWI
    ex US

       "The companies of Davis International ADR SMA Portfolio have grown more than twice as fast than the companies in the index, yet are 45% less expensive.

    In fact, this gap between price and value is among the widest we have ever seen.

    We believe this sets the stage for attractive returns in the years ahead.”

    - Portfolio Manager Danton Goei

    Performance as of 6/30/22

    Average Annual Total Returns
    as of June 30, 2022
    International Equity SMA Composite
    2Q22* YTD* 1
    Year
    3
    Years
    5
    Years
    Since
    Inception
    (10/1/14)
    gross -7.90% -13.90% -27.58% -2.02% 0.74% 2.43%
    net -8.61% -15.22% -29.78% -4.93% -2.24% -0.60%
    MSCI ACWI ex US Index -13.73% -18.42% -19.42% 1.35% 2.50% 2.63%

    * 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 6/30/22

    Geographically Diverse Portfolio

    Asia 55.9%
    Europe 29.9%
    North & Central America 9.2%
    Africa 5.0%

    Top Countries

    China
    Denmark
    Singapore
    Hong Kong
    Norway
    Switzerland
    Netherlands
    Bermuda
    South Africa
    France

    Sector Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Financials 47.7% 20.4%
    Consumer Discretionary 31.9% 11.7%
    Information Technology 9.5% 11.0%
    Industrials 5.3% 11.8%
    Materials 3.8% 8.0%
    Communication Services 1.8% 6.5%
    Health Care 0.0% 9.8%
    Consumer Staples 0.0% 8.9%
    Energy 0.0% 6.0%
    Utilities 0.0% 3.4%
    Real Estate 0.0% 2.5%

    Market Cap Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Less than $3 Billion 12.1% 1.2%
    $3–10 Billion 5.7% 15.7%
    Greater than $10 Billion 82.2% 83.1%

    Portfolio Characteristics

    Portfolio MSCI ACWI®
    (ex US)
    Number of Holdings 20 2,268
    Median Market Cap ($bn) 39.6 8.0
    Weighted Average Market Cap ($bn) 73.0 78.7

    Top 10 Holdings

    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 
    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
    JD.com China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances
    Ping An Insurance China A leader in retail financial services and the largest insurer in Asia
    Meituan China A web-based shopping platform for locally sourced consumer products and retail services in China
    DNB Norway Largest financial institution and oldest private bank in Norway
    Alibaba Group Holding China The world’s largest and most valuable retailer, with operations in over 200 countries and a dominant position in the e-commerce market
    Julius Baer Group Switzerland A premier private bank serving ultrahigh net worth clients
    Prosus Netherlands A global consumer internet company and spin-off of South African e-commerce group, Naspers

    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 - Spring Update 2022 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, 2021.

    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.


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