Three years running…PAN-Tribal Global Equity Fund maintains highest Zenith rating
We’re delighted to announce that the PAN-Tribal Global Equity Fund has maintained its Highly Recommended rating from Zenith.
Zenith describes the International Shares – Global (unhedged) sector as one of the most competitive fields in the investment landscape, based on the number of managers and strategies available to investors. Despite this, the PAN-Tribal Global Equity Fund – which provides a style-neutral, currency unhedged and benchmark unaware exposure to international equities – has been awarded Zenith’s highest rating for the third year running.
Commenting on this achievement, PAN-Tribal CEO Colin Woods said: “Despite the challenges of a global pandemic, the Fund has performed well in 2020, delivering 7.45% and 9.85% above its benchmark over the calendar year and one year time periods respectively*.”
“With $350 million in funds under management, the Fund has a long runway for future growth compared to the more capacity constrained incumbents in the sector.”
“That the Fund has retained its Highly Recommended rating for a third year is a great result for the advisers and investors who have supported the PAN-Tribal Global Equity Fund over the past six years.”
“The retention of this rating highlights the quality of Davis Advisors’ investment process and team, both of which were highlighted by Zenith as strengths of the Fund.”
Some key highlights from the report include:
On the Fund overall
“Zenith holds a positive view on Davis Advisors’ overall investment process which has been successfully implemented since 1969. Our conviction in the Fund is underpinned by the high regard we hold for the depth and quality of the investment team.”
Due to its low turnover, “the Fund may be more appealing to investors who pay a high marginal tax rate as it will result in superior after-tax return outcomes.”
On the investment process
“Zenith believes Davis Advisors’ style neutral investment process results in the Fund being well suited to delivering outperformance throughout the market cycle (i.e. in both rising and falling market environments).”
“Zenith believes the security selection process adopted by Davis is robust and detailed” and “is comfortable with the portfolio construction approach, which ensures a strong connection between the output of its security selection process and the resultant weight of the stock in the portfolio”.
Zenith also commented on the main valuation metric used by the investment team, an enterprise value to normalised cash earnings approach. The report comments: “Zenith believes that the focus on normalised cash earnings, as opposed to the traditional use of projected earnings for valuation purposes, strengthens the defensive qualities of the Fund.”
On the investment team
Zenith singled out portfolio manager Danton Goei, who has been involved with the Fund since its inception. The report stated, “Zenith rates Goei as a strong investor, highlighted by his impressive long-term track record.”
“Zenith has met with several members of the investment team and considers them to be collectively highly qualified and impressive, providing the Fund with a key competitive advantage.”
“Overall, Zenith believes the investment team is of a high calibre, providing a key competitive advantage for the Fund.”
Zenith also commented positively on the investment team’s remuneration structure, which it believes is “relatively unique in that it is a longer-term hurdle and promotes investment discipline.”
*at 31 October 2020, net of fees. Past performance is not an indication of future performance.