In the first half of 2025, the Davis Global Fund showcased exceptional performance, achieving a remarkable return of 14.12%. This significant gain allowed the fund to notably outperform its benchmark, the MSCI ACWI (All Country World Index). The strong results stem from a well-diversified investment strategy, with key contributions from various sectors. Financial services, communication technology, information infrastructure, and health-related industries were particularly instrumental in driving this growth. A core tenet of the fund's approach remains the identification and investment in companies possessing sustainable competitive advantages, strong leadership, and favorable valuations, designed to yield positive outcomes across diverse economic landscapes.
The fund's strategic allocation includes a keen focus on Chinese enterprises, which are increasingly recognized not only for their attractive valuations but also for their pioneering roles in advanced technological sectors. This foresight in identifying and capitalizing on the potential of the Chinese market underscores a significant aspect of the fund's success. While broader market valuations pose a recognized risk, the Davis Global Fund's portfolio has been meticulously constructed to prioritize durability and adaptability. This emphasis ensures that the fund is positioned to navigate and thrive through evolving market conditions, offering stability and growth potential to its investors.
The Davis Global Fund's Class A shares demonstrated compelling annualized total returns as of June 30, 2025: 19.44% over one year, 9.88% over five years, and 8.37% over ten years, after accounting for a maximum 4.75% sales charge. These figures highlight the consistent long-term value creation driven by the fund's disciplined investment philosophy. The fund's managers are committed to a rigorous research process, identifying companies that are not only market leaders but also possess the strategic foresight to adapt and grow. This proactive management, combined with a deep understanding of global market dynamics, has been critical in sustaining the fund's competitive edge and delivering superior risk-adjusted returns to its shareholders.
The investment team's dedication to identifying undervalued assets with significant growth potential has been a cornerstone of the fund's strategy. By thoroughly analyzing company fundamentals, management quality, and industry trends, they aim to uncover opportunities that others might overlook. This selective approach mitigates some of the risks associated with broad market fluctuations and allows the fund to maintain a resilient portfolio. The continued belief in the long-term prospects of global economic integration and technological advancement underpins the fund's allocations, ensuring alignment with emerging market leaders and innovation drivers worldwide.
The impressive performance of the Davis Global Fund during the initial half of 2025 underscores the efficacy of its focused, value-oriented investment strategy. By prioritizing businesses with robust competitive positions and prudent management teams, the fund is well-equipped to generate favorable returns for its investors regardless of prevailing economic currents.