Davis International's hefty Chinese equity exposure, a longtime favorite of manager Danton Goei, coupled with poor performance in consumer names have resulted in lagging relative performance during the global equity market selloff that began near 2022's start. For the year to date through March 25, the mutual fund's Y share class slid 8.9%, a bottom-quintile result within the foreign large-blend Morningstar Category and 2.7 percentage points worse than the MSCI All-Country World ex USA Index's 6.2% decline. This tough start to the year follows an abysmal 2021 for the aggressive, 30-stock strategy, when its 21.8% loss was the category's worst and trailed the benchmark's 8.2% rise. This performance profile, while disappointing, was mostly in line with what investors should expect from the strategy, given its contrarian nature and willingness to bet big on emerging companies. The strategy's various share classes retain their Morningstar Analyst Ratings of Bronze or Neutral, depending on fees.
Davis International Y DILYX
Adjusted Expense Ratio excludes certain variable investment-related expenses, such as interest from borrowings and dividends on borrowed securities, allowing for more consistent cost comparisons across funds.
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The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
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Davis International's China Exposure Has Hurt in 2022's Year to Date
