META - Davis Global Fund 2025 Annual Review
2025-03-11 07:30:00 ET
Summary
- Davis Global Fund posted a strong return of +22.70% in 2024, substantially outperforming its MSCI ACWI (All Country World Index) benchmark.
- We believe China may be starting to emerge from its long economic slump following the government’s more aggressive stimulus measures in late 2024.
- As we position the portfolio for the emergence of AI, we find opportunity among established market leaders with proven business models that are either using AI to improve a large existing platform or are key semiconductor players helping to build out the AI ecosystem.
- While high market valuations remain a key investment risk, our portfolio has been built to emphasize durability and resilience.
The average annual total returns for Davis Global Fund's Class A shares for periods ending December 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 16.87%; 5 years, 5.96%; and 10 years, 7.71%. 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. For the most recent month-end performance, click here or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. This material includes candid statements and observations regarding investment strategies, individual securities, and economic and market conditions; however, there is no guarantee that these statements, opinions or forecasts will prove to be correct. All fund performance discussed within this material refers to Class A shares without a sales charge and are as of 12/31/24, unless otherwise noted. This is not a recommendation to buy, sell or hold any specific security. Past performance is not a guarantee of future results. The Attractive Growth and Undervalued reference in this material relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. |
Performance
Davis Global Fund (DGF) posted a strong return of +22.70% in the year ended December 31, 2024, substantially outperforming the +17.49% return of the MSCI ACWI (All Country World Index). In this report, we discuss factors that contributed to the fund's good performance, along with any underperformers during the same period.
Contributors to Performance
DGF's holdings in Chinese consumer-facing companies were major contributors to the fund's 2024 outperformance. Meituan ( MPNGF ) was the largest contributor-its shares rose 86% over the year. This leader in food delivery is enjoying strong growth in its core local commerce business while maintaining good cost discipline. In the third quarter of 2024, revenues in this segment were up 22% while operating profits grew 44%. Meituan has competitive advantages in both its food delivery business, where it has taken share from Alibaba's ( BABA ) ele.me, and its in-store business, where it has successfully fended off an incursion from ByteDance ( BDNCE )....
Davis Global Fund 2025 Annual Review