Benefits of investing in the Pan-Tribal Global Equities Fund

In addition to the benefit of the Davis Investment Discipline, other key benefits of investing in the PAN-Tribal Global Equity Fund include:

• Exposure to a portfolio of well researched, durable businesses from around the globe, offering attractive capital growth potential
  
• Flexible, opportunistic approach - Davis believes a bottom up approach that does not mirror the benchmark index is the key to long-term outperformance
  
• Access to global investment opportunities that individual investors often cannot achieve
  
• Low average stock turnover makes the fund more tax effective than high turnover portfolios
  
• Strong focus on risk management at both the security and portfolio level
  
• Investing side-by-side - employees of both Davis and PAN-Tribal invest in the Fund (or an equivalent fund managed to the same underlying global equity strategy). Portfolio managers are compensated primarily with shares of the equivalent fund, based on long-term performance versus benchmark; they have a vested interest in the underlying strategy performing well.
  
• A robust governance and compliance structure with a trusted Responsible Entity and Custodian, and legal rights under the constitution of the Fund.
  

Risk level

High

There is a risk investors may lose some or all of their initial investment. Higher risk investments tend to fluctuate in the short term but can produce higher returns than lower risk investments over the long term. This grading is not intended to be a guarantee of any actual level of risk or an indication of likely returns.

Investor suitability

The Fund may be suitable for investors seeking long term capital growth with an investment horizon of 5-7 years.    

Fund overview 

The PAN-Tribal Global Equity Fund aims to deliver long-term capital growth. It seeks to outperform the MSCI ACWI (in AUD) over the medium to long-term by investing in companies with attractive long-term growth potential in both developed and developing markets. 

The investment tenet underpinning the PAN-Tribal Global Equity Fund is the belief that investing in durable companies with expanding earnings at value prices and holding them for the long-term is an effective way to build and preserve capital.

One of the Fund's key features is PAN-Tribal's appointment of Davis to manage the PAN-Tribal Global Equity Fund, which gives Australian investors access to the signature Davis Investment Discipline; a time-tested strategy focused on identifying attractive businesses with sustainable competitive advantage and experienced management, selling at a discount to their true value.

Investment style and approach

PAN-Tribal has appointed Davis to act as the underlying sub-investment manager of the Fund's portfolio. Davis is an active, benchmark agnostic manager. The PAN-Tribal Global Equity Fund will be managed using the Davis Investment Discipline'.

The Davis Investment Discipline involves: (a) undertaking extensive research to identify businesses that possess characteristics that Davis believes foster the creation of long-term value. Such characteristics include proven management, a durable franchise and business model, sustainable competitive advantages, balance sheet strength and the diversity and sustainability of earnings power; (b) regular company visits are made to gain insights into the relative value of each business. Such research, however rigorous, involves predictions and forecasts that are inherently uncertain; (c) fundamental bottom-up stock selection as Davis believes that the ability to evaluate management is critical; and (d) after determining which companies they believe the Fund should own, determining the intrinsic value of those companies' equity securities. The intrinsic valuation of the company is based upon the fundamental analysis of cash flow, assets and liabilities, and other criteria that Davis deems to be material on a company by company basis.

The aim of the Davis Investment Discipline is to: (a) invest in such businesses when they are trading at a discount to their intrinsic worth; (b) invest in such companies for the long term (ideally five years or longer, although this goal may not be met); and (c) selling a company's equity securities if the securities' market price exceeds their 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, or to raise cash to purchase a more attractive investment opportunity, to satisfy net redemptions, or other purposes.

How we invest your money

Asset allocation

The assets of the Fund will generally be invested in accordance with the following guidelines:

• The Fund will principally invest in common stocks (including indirect holdings of common stock through depositary receipts) issued by foreign companies (90-100% of the Fund), including countries with developed or emerging markets, and the remainder of the Fund in cash (0% -10% of the Fund).

• The Fund may invest in large, medium, or small companies without regard to market capitalisation.

• 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 favourable) 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.

The Fund will not use derivatives (with the exception of currency forward contracts for trade settlement purposes only).