Davis International ADR SMA Portfolio


    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: 21 years with Davis Advisors

    Performance as of 6/30/19

    Average Annual Total Returns
    as of June 30, 2019
    International Equity SMA Composite
    1Q19* YTD* 1
    gross -1.91% 16.80% -12.11% 11.51% 5.45%
    net -2.65% 15.09% -14.74% 8.24% 2.34%
    MSCI ACWI ex US Index 2.98% 13.60% 1.29% 9.39% 3.45%

    * 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 6/30/19

    Geographically Diverse Portfolio

    Asia 48.1%
    Europe 33.3%
    North & Central America 10.8%
    Africa 7.8%

    Top Countries

    South Africa
    United Kingdom

    Sector Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Consumer Discretionary 31.7% 11.3%
    Financials 30.6% 21.8%
    Industrials 21.3% 12.0%
    Energy 6.7% 7.1%
    Information Technology 5.9% 8.5%
    Communication Services 3.8% 6.9%
    Consumer Staples 0.0% 9.8%
    Health Care 0.0% 8.3%
    Materials 0.0% 7.6%
    Real Estate 0.0% 3.3%
    Utilities 0.0% 3.4%

    Market Cap Breakdown

    Portfolio MSCI ACWI®
    (ex US)
    Less than $3 Billion 19.0% 1.7%
    $3–10 Billion 19.5% 17.3%
    Greater than $10 Billion 61.5% 81.0%

    Portfolio Characteristics

    Portfolio MSCI ACWI®
    (ex US)
    Number of Holdings 24 2,205
    Median Market Cap ($bn) 11.8 7.6
    Weighted Average Market Cap ($bn) 64.3 65.6

    Top 10 Holdings

    Alibaba Group Holding Ltd., ADR China The world’s largest and most valuable retailer, with operations in over 200 countries and a dominant position in the e-commerce market
    JD.com - ADR China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances
    Naspers, ADR 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
    New Oriental Education & Technology China Largest provider of private education services in China
    Schneider Electric SE France A global specialist in energy management
    Ferguson PLC United Kingdom Largest U.S. wholesale distributor of plumbing, heating, and water products.
    DBS Group Holdings Ltd. Singapore Largest bank in Singapore and among the largest in developed Asia
    Hollysys Automation Technologies Ltd. China Leading industrial automation company in China
    DNB ASA Norway Largest financial institution and oldest private bank in Norway
    Julius Baer Group Ltd. Switzerland A premier private bank serving ultrahigh net worth clients

    Click here for quarter-end holdings  


    Insights into the Portfolio
    Fact Sheet Download

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

    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.

    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.

    Portfolio Commentaries
    Portfolio Commentary -
    Summer Update 2019
    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 June 30, 2019.

    2Gross of fees. Past performance is not a guarantee of future results.

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