Selected International Fund
Overview
Investment Strategy
The goal of the Selected International Fund is to provide investors access to attractive investment opportunities that exist outside of the United States, in both developed and developing markets. Selected International Fund was previously named Selected Special Shares.
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 Selected 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 Selected International Fund
Experience
Our investment discipline 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 risks and reap the same rewards.1
Lower than Average Expense Ratio2
Selected International Fund, 1.32%; Lipper category average, 1.48%
Performance as of 3/31/12
| Total Returns as of March 31, 2012 |
1 Year |
3 Years |
5 Years |
10 Years |
15 Years |
Since Incep. (5/1/93)* |
|---|---|---|---|---|---|---|
|
Selected International Fund Class S** |
-15.86% | 14.53% | -4.70% | 2.16% | 5.33% | 6.63% |
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 total annual operating expense ratio for Class S shares as of the most recent prospectus was 1.32%. 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 800.243.1575.
* Davis Selected Advisers, LP assumed the portfolio management of Selected Funds in May, 1993.
** From the date that Davis Advisors first began managing the Fund (May 1, 1993) until May 1, 2011, Selected International Fund was named Selected Special Shares and invested primarily in domestic equity securities. In the future the Fund is expected to invest primarily in foreign equity securities and the past performance of the Fund is unlikely to be relevant to future performance.
Portfolio Characteristics as of 3/31/12
Geographical Diversification
| Europe | 48.9% | |
| Asia | 26.8% | |
| North America | 12.4% | |
| South America | 11.9% |
Top 10 Countries
| Switzerland |
| China |
| France |
| Brazil |
| Mexico |
| Netherlands |
| Hong Kong |
| Argentina |
| Canada |
| Belgium |
Top 10 Holdings
| Kuehne & Nagel International AG | Switzerland | A leader in logistics management, including sea freight, air freight, rail, road, etc. | 6.6% |
| Roche Holding AG | Switzerland | World-leading global healthcare/biotech company | 6.2% |
| Hang Lung Group Limited | Hong Kong | A leading commercial/residential property owner and developer in Hong Kong and mainland China | 5.4% |
| Heineken Holding NV | Netherlands | A leading brewer and seller of beer throughout Europe, the Americas, Africa, the Middle East, and Asia Pacific | 5.0% |
| Compagnie Financiere Richemont SA | Switzerland | A luxury goods holding company whose brands include Cartier, Montblanc and Van Cleef & Arpels | 4.8% |
| Schneider Electric SA | France | Global specialist in energy management | 4.8% |
| America Movil S.A.B. de C.V. - ADR | Mexico | A leading provider of wireless communications services in Latin America | 4.2% |
| Schindler Holding AG | Switzerland | A holding company specializing in the manufacture of escalators, elevators and moving walks | 3.8% |
| Tenaris SA-ADR | Argentina | A global manufacturer of seamless and welded steel pipe products | 3.7% |
| Essilor International SA | France | The world's leading provider of prescription coated eyeglass lenses | 3.6% |
Top 5 Industries
| Pharmaceutical & Health Care | 14.7% |
| Capital Goods | 11.5% |
| Transportation | 10.1% |
| Food, Beverage & Tobacco | 9.9% |
| Materials | 8.4% |
Portfolio Composition
| Selected International Fund | MSCI ACWI® - ex USA | |
|---|---|---|
| Number of Holdings | 46 | 1,843 |
| Median Market Cap ($bn) | 8.8 | 5.9 |
| Weighted Average Market Cap ($bn) | 28.8 | 44.7 |
| Forecast P/E Ratio | 14.2 | 11.2 |
Literature
| Fact Sheets | ||
|---|---|---|
| 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 Composition | Download Share |
Quarterly update of portfolio characteristics. |
| Portfolio Manager Commentary | ||
| Manager Commentary - Annual Review 2012 | 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 is authorized for use by existing shareholders. A current Selected International Fund prospectus must accompany or precede this material if it is distributed to prospective shareholders. You should carefully consider the Fund’s investment objective, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.
1As of December 31, 2011.
2See Expense ratio/Turnover link below.
(6) Read here for Index definition
(8) Read here for objective/risk disclosures
(10) Read here for Expense ratio/Turnover disclosures
(11) Read here for additional disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756