Overview
Investment Strategy
The goal of the Portfolio is to provide investors access to attractive investment opportunities that exist outside of the United States, in both developed and developing markets. This approach can make the Davis International ADR SMA a potential foundation for an investor's diversified equity portfolio.
The Portfolio applies our signature Davis Investment Discipline to seek durable, well-managed businesses at value prices and holding them for the long term.
Investing solely in U.S. stock funds may mean missing the tremendous growth opportunities and diversification potential that international companies provide.
"By being highly selective and rejecting the vast majority of companies in the index, we’ve uncovered businesses with highly attractive earnings growth, yet selling at some of the lowest valuations we have ever seen. We believe this sets the stage for attractive returns in the years ahead."
– Portfolio Manager Chris Davis
| Selective | Attractive Growth | Undervalued |
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International ADR SMA Portfolio invests in only a select group of well-researched companies |
International ADR SMA Portfolio's portfolio companies have grown more than the index The Attractive Growth and Undervalued reference in this piece relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund’s performance will be positive as equity markets are volatile and an investor may lose money. |
International ADR SMA Portfolio's portfolio companies are 52% less expensive than the index |
| Holdings The number of holdings in the Portfolio excluding cash positions. | EPS Growth (5 Year) Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The value for the portfolio is the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio. Approximately 14.40% of the assets of the Portfolio are not accounted for in the calculation of 5-year EPS as relevant information on certain companies is not available to the Portfolio’s data provider. The 5-year EPS of the MSCI ACWI ex US is 12.4%. | P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Advisor’s data provider. These values for both the Portfolio and the Index are the weighted average of the stocks in the Portfolio or Index. The Forward P/E of the MSCI ACWI ex US is 14.3x. |
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2094
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Portfolio
MSCI ACWI ex US
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Portfolio Details as of 9/30/24
| Detail | Value |
|---|---|
| Objective | Long-Term Capital Appreciation |
| Category | International |
A Shares
| Detail | Value |
|---|---|
| Inception Date | 10/1/14 |
| Benchmark | MSCI ACWI ex US |
Performance as of 9/30/24
Average Annual Returns
A Shares: Quarterly (as of 9/30/24)
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| Share Class | YTD* | 1 Yr | 3 Yr | 5 Yr | Since Incep | |
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Gross | 37.20% | 36.06% | 7.62% | 7.49% | 5.85% |
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With a 3% maximum wrap fee | 34.25% | 32.12% | 4.44% | 4.33% | 2.73% |
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MSCI ACWI ex US | 14.21% | 25.35% | 4.13% | 7.58% | 5.21% |
The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends. Investment return and principal value will vary so that an investor may lose money. Current performance may be higher or lower. The investment strategies described herein are those of Davis Advisors. These materials are being provided for illustrative and informational purposes only. The information contained herein is obtained from multiple sources that are believed to be reliable. However, such information has not been verified, and may be different from the information included in documents and materials created by the sponsor firm in whose investment program a client participates. Some sponsor firms may require that these materials are preceded or accompanied by investment profiles or other documents or materials prepared by such sponsor firms, which will be provided upon a client’s request. For additional information, documents and/or materials, please speak to your Financial Advisor. For additional information, documents and/or materials, please speak to your Financial Advisor. Davis Advisors fee schedules are described in Part 2 of its Form ADV.
Portfolio Characteristics as of 9/30/24
Portfolio Composition
| Item | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|
| P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Advisor’s data provider. These values for both the Portfolio and the Index are the weighted average of the stocks in the Portfolio or Index. The Forward P/E of the MSCI ACWI ex US is 14.3x. | 6.9x | 14.3x |
| P/B Ratio Price/Book (P/B) Ratio is the weighted average of the P/B ratios of the stocks in a portfolio. The P/B ratio of a stock is calculated by dividing the current price of the stock by the company’s per share book value. Stocks with negative book values are excluded for this calculation. | 3.0 | 3.2 |
| Beta (3 Year) | 1.2% | 1.0% |
| 5 Year Earnings Growth | 16.4% | 12.4% |
| Number of Holdings | 22 | 2094 |
| Weighted Average Market Cap ($bn) Weighted Average Market Capitalization is the portfolio-weighted mean capitalizations of all equity securities. | 59.4 | 107.7 |
| Median Market Cap ($bn) Median Market Capitalization is the midpoint of market capitalization of the stocks in a portfolio. | 44.7 | 10.2 |
| Active Share Active Share is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index. | 96% | N/A |
| Turnover Rate Turnover Rate is a measure of the trading activity in a portfolio that reflects how often securities are bought and sold. These amounts are as of 09/30/24. | 27% | N/A |
Mastering the Mental Game of Investing
A video series to help you develop the mindset of a successful investor.
Watch the SeriesPortfolio Holdings The information provided in this material should not be considered a recommendation to buy or sell any particular security. There is no assurance that any of the securities will remain in an account at the time this material is received or that securities sold have not been repurchased. It should not be assumed that any of the securities were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
Top 10 Holdings: Quarterly (as of 9/30/24)
| Holding | Ticker | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|---|
| Meituan | MPNGY | 7.0% | 0.4% |
| Ping An Insurance Group | PNGAY | 7.0% | 0.2% |
| Danske Bank | DNKEY | 7.0% | 0.1% |
| Prosus | PROSY | 6.8% | 0.2% |
| AIA Group | AAGIY | 6.5% | 0.4% |
| Naspers | NPSNY | 6.5% | 0.2% |
| Julius Baer Group | JBAXY | 6.3% | < 0.1% |
| Teck Resources | TECK | 6.0% | 0.1% |
| Trip.com Group | TCOM | 5.7% | 0.1% |
| Entain | GMVHY | 5.0% | < 0.1% |
| Total | 63.8% | 1.6% | |
All Holdings: Quarterly (as of 9/30/24)
| Holding | Ticker | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|---|
| Meituan | MPNGY | 7.0% | 0.4% |
| Ping An Insurance Group | PNGAY | 7.0% | 0.2% |
| Danske Bank | DNKEY | 7.0% | 0.1% |
| Prosus | PROSY | 6.8% | 0.2% |
| AIA Group | AAGIY | 6.5% | 0.4% |
| Naspers | NPSNY | 6.5% | 0.2% |
| Julius Baer Group | JBAXY | 6.3% | < 0.1% |
| Teck Resources | TECK | 6.0% | 0.1% |
| Trip.com Group | TCOM | 5.7% | 0.1% |
| Entain | GMVHY | 5.0% | < 0.1% |
| KE Holdings | BEKE | 4.5% | 0.1% |
| ITOCHU | ITOCY | 3.9% | 0.2% |
| DBS Group Holdings | DBSDY | 3.7% | 0.2% |
| JD.com | JD | 3.7% | 0.2% |
| Sea | SE | 3.2% | 0.1% |
| Schneider Electric | SBGSY | 2.8% | 0.5% |
| Delivery Hero | DELHY | 2.6% | < 0.1% |
| Alibaba Group Holding | BABA | 2.2% | 0.8% |
| Bank of N.T. Butterfield & Son | NTB | 2.0% | — |
| Coupang | CPNG | 1.8% | — |
| Noah Holdings | NOAH | 1.8% | — |
| Tokyo Electron | TOELY | 1.0% | 0.3% |
| Cash | N/A | 3.0% | — |
Sector Allocation The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and S&P Global (“S&P”). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.
| Sector | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|
| Consumer Discretionary | 42.6% | 11.3% |
| Financials | 35.4% | 22.5% |
| Industrials | 6.9% | 13.8% |
| Materials | 6.2% | 7.1% |
| Real Estate | 4.6% | 1.9% |
| Communication Services | 3.3% | 5.6% |
| Information Technology | 1.0% | 12.8% |
| Health Care | — | 9.4% |
| Consumer Staples | — | 7.4% |
| Energy | — | 5.0% |
| Utilities | — | 3.2% |
Regional Allocation
| Region | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|
| Asia | 53.6% | 42.4% |
| Europe | 31.4% | 41.8% |
| North & Central America Ex US | 8.2% | 8.2% |
| Africa | 6.7% | 0.9% |
Country Allocation - Top 10
| Country | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|
| China | 32.9% | 8.2% |
| Denmark | 7.2% | 2.1% |
| Singapore | 7.1% | 0.9% |
| Netherlands | 7.0% | 3.0% |
| Hong Kong | 6.7% | 1.3% |
| South Africa | 6.7% | 0.9% |
| Switzerland | 6.5% | 6.2% |
| Canada | 6.2% | 7.7% |
| United Kingdom | 5.2% | 9.3% |
| Japan | 5.1% | 14.0% |
| Top 10 Countries Total % of Portfolio | 90.6% | 53.6% |
Developed vs Emerging Markets
| Market | International ADR SMA Portfolio | MSCI ACWI ex US® |
|---|---|---|
| Developed Ex US | 56.5% | 71.5% |
| Emerging Markets | 43.5% | 28.5% |
Market Cap Breakout The Adviser considers companies with market capitalizations over $10 billion to be large-capitalization companies, between $3 billion and $10 billion to be mid-capitalization companies, and under $3 billion to be small-capitalization companies.
| International ADR SMA Portfolio | ||
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| Market | Percentage | |
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Large | 90.9% |
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Mid | 5.2% |
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Small | 3.9% |
| MSCI ACWI ex US® Index | ||
|---|---|---|
| Market | Percentage | |
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Large | 88.3% |
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Mid | 11.3% |
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Small | 0.4% |
Commentary
Portfolio Commentary
| Document | Description | Date |
|---|---|---|
| Portfolio Commentary - Fall Update 2024 | A quarterly discussion of the market environment, Portfolio performance, major positions and investment opportunities. | September 2024 |
Factsheet
Fact Sheets
| Document | Description | Date |
|---|---|---|
| Fact Sheet | Goals of the Portfolio, top holdings, characteristics and Portfolio attributes. | September 2024 |
Literature
| Document | Description | Date |
|---|---|---|
| Quarterly Review Book | A comprehensive quarterly update on the Portfolio, including commentary on investment strategy, performance, Portfolio statistics and holdings. | September 2024 |
| Davis International ADR SMA: Selective. Attractive Growth. Undervalued. | Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the Index – A powerful combination. | September 2024 |
| Portfolio Holdings | Quarterly report listing company positions, weightings in the Portfolio versus the Index | September 2024 |