DINT: new Active Int’l Equity ETF launched

Davis Advisors begun trading a new Active Int’l Equity ETF, the Davis Select International ETF (NASDAQ: DINT) on Monday, March 05, 2018. Here is a synopsis of the new ETF:

FUND INFORMATION:

Symbol: DINT Exchange: Nasdaq
Name: Davis Select International ETF       Net Expense Ratio: 0.75%

 

 

FUND OBJECTIVE:
The Davis Select International ETF is an actively managed ETF. Davis Selected Advisers, L.P., the Fund’s investment adviser (Adviser), uses the Davis Investment Discipline to invest the Fund’s portfolio principally in common stocks (including indirect holdings of common stock through depositary receipts) issued by foreign companies, including countries with developed or emerging markets.
The Fund may invest in large, medium or small companies without regard to market capitalization. The Fund will invest significantly (at least 40% of total assets under normal market conditions and at least 30% of total assets if market conditions are not deemed favorable) in issuers:
(i) organized or located outside of the U.S.;
(ii) whose primary trading market is located outside the U.S.; or
(iii) doing a substantial amount of business outside the U.S., which the Fund considers to be a company that derives at least 50% of its revenue from business outside the U.S. or has at least 50% of its assets outside the U.S. Under normal market conditions, the Fund will invest in issuers representing at least three
different countries. These non-U.S. company investments may include American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs).

Davis Investment Discipline:
Each equity fund managed by Davis Advisors utilizes the Davis Investment Discipline. Davis Advisors conducts extensive research to try to identify businesses that possess characteristics that Davis Advisors believes foster the creation of long-term value, such as proven management, a durable franchise and business model, and sustainable competitive advantages. Davis Advisors aims to invest in such businesses when they are trading at discounts to their intrinsic worth. Davis Advisors emphasizes individual stock selection and believes that the ability to evaluate management is critical. Davis Advisors routinely visits managers at their places of business in order to gain insight into the relative value of different businesses. Such research, however rigorous, involves predictions and forecasts that are inherently uncertain.
After determining which companies Davis Advisors believes the Fund should own, Davis Advisors then turns its analysis to determining the intrinsic value of those companies’ equity securities. Davis Advisors seeks companies whose equity securities can be purchased at a discount from Davis Advisors’ estimate of those companies’ intrinsic values, based upon fundamental analysis of cash flows, assets and liabilities, and other criteria that Davis Advisors deems to be material on a company-by-company basis. Davis Advisors’ goal is to invest in companies for the long term (ideally, five years or longer, although this goal may not be met). Davis Advisors considers selling a company’s equity securities if the securities’ market price exceeds Davis Advisors’ estimates of intrinsic value, if the ratio of the risks and rewards of continuing to own the company’s equity securities is no longer attractive, to raise cash to purchase a more attractive investment opportunity, to satisfy net redemptions or for other purposes.

Fund Top Holdings (03/02/18):

Naspers Ltd NPN 6.59%
Alibaba Group Holding Ltd BABA 6.43%
Hollysys Automation Technologies Ltd HOLI 6.03%
Ferguson Plc FERG 4.58%
Safran SA SAF 4.35%
New Oriental Education & Technology Group Inc EDU 4.34%
JD.com Inc JD 4.29%
Tarena International Inc TEDU 4.05%
Schneider Electric SE SU 3.76%
Encana Corp ECA 3.48%

Useful Links:
DINT Home Page

 

 

 

Category: Equities> International Equities> International Strategy

 

 

ETFtrack Comment:
Here is a comment from Chris Davis, Portfolio Manager and Chairman:
“DINT’s fund manager Danton Goei has a proven record as an outstanding international stock picker, managing Davis international and global portfolios for well over a decade. This new ETF applies the time-tested Davis Investment Discipline to international investing, and provides our clients with another option as they look to build wealth over the long term.”
Danton Goei is a veteran portfolio manager who joined Davis Advisors in 1998.

About Davis Advisors
Davis Advisors is an independent, employee-owned investment management firm founded in 1969 with more than $29 billion in assets under management as of December 31 2017. Since our founding more than 45 years ago, our mission has been to serve our shareholders and to do so with high integrity. We have an unrivaled alignment of interests, with over $2 billion invested by Davis Advisors, the Davis family and Foundation, our employees, and Fund directors side-by-side with clients in similarly managed accounts and strategies as of December 31, 2017.

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