Zenith upgrades Pan-Tribal Global Equity Fund to ‘Recommended’
After reaching the recent milestone of its first birthday, the Pan-Tribal Global Equity Fund has been upgraded to ‘Recommended’ by Zenith Investment Partners (Zenith).
The research house has followed the Fund’s progress during its first year and as part of its global equity funds review, visited the sub-investment manager, Davis Advisors, in New York.
After its extensive review of the Global Equity Funds sector, Zenith upgraded the fund from Approved to Recommended. According to Zenith’s rating definitions, Recommended products are deemed strong investments within their respective asset class, typically rating first quartile on most criteria. The rating also indicates that the analysts have high confidence that the Fund will meet its investment objectives.
The Pan-Tribal Global Equity Fund provides a style neutral, currency unhedged and benchmark unaware exposure to the international equities market. Some key takeouts from Zenith’s report include:
“Zenith holds a positive view on Davis Advisors’ overall investment process, and that the Fund is managed by experienced co-portfolio managers who have each been with Davis Advisors for more than 10 years.”
“The Fund is constructed in a benchmark unaware manner which may appeal to investors searching for an active international shares manager. Davis Advisors’ style neutral investment process results in the Fund being well suited to delivering outperformance throughout the market cycle (i.e. in both rising and falling market environments).”
“The Fund has historically experienced a low to moderate level of portfolio turnover, between 20% p.a. to 45% p.a. Low levels of portfolio turnover will generally contribute to a more tax effective exposure to international equities, an approach which would typically better suit high marginal tax rate payers.”
“Remuneration for the investment team includes a base salary and a bonus. The bonus determination is predominantly based on whether the firm’s strategies have outperformed their respective benchmarks by at least 1% p.a. over rolling five year periods. Zenith believes this incentive structure is relatively unique in that it is a longer-term hurdle and promotes investment discipline.”
“Risk management is embedded into the research process at both the security selection and portfolio construction processes. Davis Advisors’ main risk management control is the depth of research conducted on each stock prior to and following its inclusion in the Fund. That is, the purpose of the research process is to understand all aspects of the company, including any potential risks to earnings, management and overall operations of the company.”
In its first year, the Pan-Tribal Global Equity Fund has amassed over $8million in funds under management and has been added to the menus of a number of key platforms, including AMP North, Asgard, BT Wrap, FirstChoice, Macquarie Wrap, Hub24 and netwealth.
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