Three years running…PAN-Tribal Global Equity Fund maintains highest Zenith rating

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.

 

Important information
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned November 2020) 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/Regulatory Guidelines.


 

The following information has been prepared by PAN-Tribal Asset Management for use by Sophisticated Investors / Wholesale Clients and Investment Professionals only. No account has been taken of the investment objectives, financial situation or particular needs of any particular person. Information is provided for general information purposes only and does not contain investment recommendations nor provide investment advice, nor is it intended to take the place of professional advice. Investors should not take action in reliance on information contained on this website.

 

Past performance information provided on this website is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. None of PAN-Tribal, its related bodies or associates, nor any other person, guarantees the repayment of capital or the performance of the Fund(s) or any particular returns from the Fund(s). No representation or warranty is made concerning the accuracy of any data contained on this website.

 

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