Davis International Fund
Overview
Investment Strategy
The goal of the Davis International Fund is to provide investors access to attractive investment opportunities that exist outside of the United States, in both developed and developing markets.
The Fund applies our signature Davis Investment Discipline – seeking durable, well-managed businesses at value prices and holding them for the long term – to create a Portfolio of companies based primarily outside the United States.
Investors who recognize that some of the most compelling investment opportunities can be found beyond U.S. borders may want to consider the Davis International Fund.
Why Invest in Companies Outside the U.S.
Globalization of the world’s economy continues at a rapid pace:
- Many successful companies are located outside the United States. (More than 37,000 companies are listed on exchanges outside the United States, compared with only 5,000 within the United States.)
- About half of the world’s market capitalization is outside the United States.
- Approximately 95% of the world’s population lives beyond U.S. borders and 74% of global GDP is generated outside the United States.
- Investing solely in domestic stock funds may mean missing the tremendous growth opportunities and diversification potential that international companies provide.
Why Invest in the Davis International Fund
Sixty Years of Experience
The Davis family has compounded wealth for investors over six decades and three generations.
Aligned with Shareholders
With more than $2 billion invested side by side with fellow shareholders, we experience the same risk and reap the same rewards.1
Lower than Average Expense Ratio3
Davis International Fund A, 1.37% (After Waiver, 1.30%); Lipper category average, 1.45%
Lower than Average Turnover Rate3
Davis International Fund, 8%; Lipper category average, 68%
Performance as of 3/31/13
| Total Returns as of March 31, 2013 |
YTD* | 1 Year |
3 Years |
5 Years |
Since 12/29/06 |
|---|---|---|---|---|---|
|
Davis International Fund Class A shares without a sales charge |
3.22% | 7.38% | 1.66% | -2.15% | -0.56% |
| with a maximum 4.75% sales charge | -1.68% | 2.28% | 0.03% | -3.10% | -1.33% |
| MSCI ACWI® - ex U.S. | 3.13% | 8.32% | 4.39% | -0.40% | 0.61% |
*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 shares may be worth more or less than their original cost. The Fund is subject to a 2% short-term redemption fee for shares held for fewer than 30 days. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 1.37%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.279.0279. The Advisor is contractually committed to waive fees and/or reimburse the Fund’s expenses to the extent necessary to cap total annual fund operating expenses for Class A shares at 1.30% until March 1, 2014. After that date there is no assurance that expenses will be capped.
Portfolio Characteristics as of 3/31/13
Geographical Diversification
| Europe | 54.4% | |
| Asia | 28.7% | |
| North America | 11.7% | |
| South America | 5.2% |
Top 10 Countries
| Switzerland |
| China |
| France |
| Netherlands |
| Mexico |
| Brazil |
| Hong Kong |
| Italy |
| United Kingdom |
| USA |
Top 10 Holdings
| Schneider Electric SA | France | Global specialist in energy management | 6.1% |
| Heineken Holding NV | Netherlands | A leading brewer and seller of beer throughout Europe, the Americas, Africa, the Middle East, and Asia Pacific | 6.0% |
| Compagnie Financiere Richemont SA | Switzerland | A luxury goods holding company whose brands include Cartier, Montblanc and Van Cleef & Arpels | 5.3% |
| Roche Holding AG | Switzerland | World-leading global healthcare/biotech company | 4.8% |
| Kuehne & Nagel International AG | Switzerland | A leader in logistics management, including sea freight, air freight, rail, road, etc. | 4.7% |
| Hang Lung Group Limited | Hong Kong | A leading commercial/residential property owner and developer in Hong Kong and mainland China | 4.1% |
| Schindler Holding AG | Switzerland | A holding company specializing in the manufacture of escalators, elevators and moving walks | 4.0% |
| Brasil Pharma SA | Brazil | Operator of a network of retail pharmacies with both proprietary stores and franchises | 4.0% |
| Tenaris SA - ADR | Italy | A leading manufacturer of specialized steel tubing used for oil and gas exploration, production and transport | 3.4% |
| Essilor International SA | France | The world's leading provider of prescription coated eyeglass lenses | 3.1% |
Top 5 Industries
| Pharmaceutical & Health Care | 13.6% |
| Capital Goods | 12.3% |
| Food, Beverage & Tobacco | 11.3% |
| Materials | 7.3% |
| Transportation | 7.0% |
Portfolio Composition
| International Fund |
MSCI ACWI® ex USA |
|
|---|---|---|
| Number of Holdings | 39 | 1,827 |
| Median Market Cap ($bn) | 8.3 | 6.4 |
| Weighted Average Market Cap ($bn) | 30.5 | 49.3 |
| Forecast P/E Ratio | 15.5 | 12.7 |
Literature
| Fact Sheets | ||
|---|---|---|
| Fund Fact Sheet | Download Share | Applying the Davis Investment Discipline to companies outside the United States; Portfolio characteristics, top holdings, and performance. |
| Important Facts | Download Share | Goals of the Fund, what we look for in a business, our alignment with shareholder interests, Portfolio characteristics, and other topics. |
| Portfolio Commentary | ||
| First Quarter 2013 Update | Download View Share | The Fund research team discusses the Portfolio, performance and how they apply the Davis Investment Discipline to uncover opportunities outside the United States. |
This material must be accompanied or preceded by a current Davis International Fund Prospectus. You should carefully consider the Fund’s investment objective, risks, charges, and expenses before investing. The prospectus contains this and other information and can be obtained by clicking here or calling 800.279.0279. Read the prospectus carefully before you invest or send money.
1As of December 31, 2012.
2The Advisor is contractually committed to waive fees and/or reimburse the Fund’s expenses to the extent necessary to cap total annual fund operating expenses for Class A shares at 1.30% until March 1, 2014. After that date there is no assurance that expenses will be capped.
3See Expense ratio/Turnover link below.
(10) Read here for objective/risk disclosures
(11) Read here for Expense ratio/Turnover disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756