Zenith rating for Fund
The recently launched Pan-Tribal Global Equity Fund received its first rating late last year with the publication of Zenith’s annual International Shares Sector Report.
The Zenith team included the Fund in its annual review, visiting the Fund’s sub-investment manager, Davis Advisors, at their New York-based office. Davis Advisors are equity specialists and manage US$36 billion (at 31 December 2014) across a range of strategies.
The report noted:
“The Fund is constructed in a benchmark unaware manner which may appeal to investors searching for an active international shares manager. 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).”
The Fund is managed using the signature ‘Davis Investment Discipline’, which focuses on investing in durable companies with expanding earnings at value prices, and holding them for the long-term. This, Davis believes, is an effective way to build and preserve capital.
In terms of using this Fund in a portfolio, the Zenith report noted the following:
“Zenith believes that the Fund is best used as part of a blended international equities portfolio and that it would blend well with other style neutral, value and/or growth orientated international equities products.”
The report also commented on the low levels of turnover of the portfolio, as follows:
“Zenith expects the majority of the Fund’s performance to be delivered via capital appreciation in the unit price rather than through the realisation of capital gains distributed as income. Low levels of portfolio turnover will generally contribute to a more tax effective exposure to international equities, an approach which would typically better suit high marginal tax rate payers.”
It takes time to build a track record. Although the Pan-Tribal Global Equity Fund is new, Davis Advisors has been managing domestic (US) equity strategies using the Davis Investment Discipline for more than 40 years, and global equity strategies for 10 years.
Zenith referenced the longer-term record of Davis Advisors in its report:
“Given an inception date of November 2014, the Fund’s track record is currently too short to draw any meaningful long-term conclusions. However, Davis Advisors has a longer-term track record for the strategy which dates back to January 2005. Since the strategy’s inception, it has exceeded its investment objectives.”
For more information about the Pan-Tribal Global Equity Fund, click here.
DISCLAIMER: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned December, 2014) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines