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


    Performance as of 6/30/18

    Total Returns
    as of June 30, 2018
    1
    Year
    3
    Years
    5
    Years
    10
    Years
    15
    Years
    20
    Years
    Since Incep.
    (5/1/93)*
    Selected International Fund
    Class S**
    12.82% 7.39% 10.19% 5.07% 5.76% 4.27% 7.23%

    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 1.28%. 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 6/30/18

    Geographical Diversification

    Asia 52.8%
    Europe 27.9%
    North & Central America 8.9%
    Africa 7.8%
    South America 2.6%

    Top 10 Countries

    China
    United Kingdom
    South Africa
    France
    Canada
    Singapore
    Switzerland
    Germany
    India
    Bermuda

    Top 10 Holdings

    Naspers, Class N South Africa A media conglomerate that operates a leading pay television business in South and Sub-Saharan Africa and holds interests in a range of e-commerce businesses around the world 7.6%
    Alibaba Group Holding Ltd., ADR China The world’s largest and most valuable retailer, with operations in over 200 countries and a dominant position in the e-commerce market 6.7%
    Didi Chuxing Joint Co., Series A-17 China The largest mobile platform taxi-calling app in China 6.1%
    Hollysys Automation Technologies Ltd. China Leading industrial automation company in China 5.9%
    Ferguson PLC United Kingdom Largest U.S. wholesale distributor of plumbing, heating, and water products. 5.8%
    New Oriental Education & Technology China Largest provider of private education services in China 5.6%
    JD.com Inc., Class A, ADR China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances 4.7%
    Safran S.A. France Leading manufacturer of jet engines 4.3%
    Encana Corp. Canada Canadian-based energy exploration and production company with properties in Canada and the U.S. 4.3%
    DBS Group Holdings Ltd. Singapore Largest bank in Singapore and among the largest in developed Asia 3.3%

    Click here for month-end holdings.
    Click here for quarter-end holdings.

    Top 5 Industries

    Information Technology 18.5%
    Capital Goods 15.2%
    Retailing 14.8%
    Banks 8.5%
    Media 7.6%

    Portfolio Composition

    International Fund MSCI ACWI®
    - ex USA
    Number of Holdings 35 2,154
    Median Market Cap ($bn) 12.6 7.8
    Weighted Average Market Cap ($bn) 64.2 63.3
    Forecast P/E Ratio 12.0 13.3

    Literature

    Fact Sheets
    Fact Sheet Download Applying the Davis Investment Discipline to companies outside the United States; Portfolio characteristics, top holdings, and performance.
    Selected International Fund Download Best ideas from the U.S. and around the world. Outperformed its benchmark over the past decade.
    Portfolio Composition Download

    Quarterly update of portfolio characteristics.

    Portfolio Manager Commentary
    Manager Commentary - Annual Review 2018 Download View

    Portfolio Manager Danton Goei discusses the Portfolio, performance and how he applies the Davis Investment Discipline to uncover opportunities outside the United States.

    Insights into the Fund
    Global Market Overview and Investment Themes Download

    Our PMs on global markets and themes presenting the strongest investor opportunities

    Opportunities in International Equities Today (Whitepaper) Download

    Why international stocks look attractive, why active management beats passive internationally, long term themes driving international returns.

    Insights About Davis Advisors
    Distinctive Attributes Download How our unique culture of rigorous research and stewardship have produced important shareholder benefits, including attractive long-term results, low expenses, low turnover and high alignment of interests.

    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 June 30, 2018.



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