The DSM International Growth strategy seeks long-term capital appreciation through investments in the stocks of quality international companies exhibiting strong growth characteristics and share prices that represent attractive returns.
The strategy generally invests in 25 to 50 companies operating in Europe and other developed and emerging markets. Portfolio holdings typically have market capitalizations in excess of $10 billion. Generally, up to 20% of the portfolio may be invested in US companies. The strategy uses no leverage, futures, options or derivatives. Currency exposure is unhedged.
The International Growth strategy is available in:
- Managed Accounts
- CIF (can be made available)
- US Mutual Funds
Periods ending April 30, 2020
|April*||QTD*||Trail 12M*||3 Years*||5 Years*||Cumulative*^||Annualized*^|
|MSCI ACWI Ex-USA Net||7.58%||7.58%||-11.51%||-0.25%||-0.17%||8.54%||1.25%|
Periods ending April 30, 2020
|DSM Pre-Fee||DSM Post-Fee||MSCI ACWI Ex-USA Net Return|
DSM International Growth
GENERAL PERFORMANCE COMPOSITE FOOTNOTES
1. Past performance is no guarantee of future results and individual accounts and results will vary. Materially different market or economic conditions could result in markedly different performance, including the possibility of loss. The content presented is for informational purposes only. It is not intended to reflect a current or past recommendation, investment, legal, tax or accounting advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. Except as otherwise specified, any companies, sectors, securities and/or markets discussed are solely for illustrative purposes regarding economic trends and conditions or investment process and may or may not be held by DSM Capital Partners LLC (“DSM”) or other investment vehicles or accounts managed by DSM. Investing entails risks, including possible loss of principal. There are also special risk considerations associated with international and global investing (especially emerging markets), small and mid-capitalization companies, or other growth and/or concentrated investment strategies.
2. DSM, located in Palm Beach Gardens, Florida, is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended, managing separate accounts, pooled investment vehicles and wrap accounts for both institutional and high net worth investors.
3. DSM primarily manages equities in a model portfolio method and therefore presents a single composite return for managed accounts of each strategy offered. In general, the International Growth strategy will invest in equity securities issued by large capitalization companies domiciled outside the U.S. Equity securities, as determined by DSM in its discretion include, but are not limited to, common stocks, preferred stocks, securities convertible into common stocks, rights and warrants. The International Growth strategy may invest up to 20% of its net assets in equity securities of U.S. issuers. A large capitalization company is one that has a market capitalization of more than U.S. $10 billion at the time of purchase. The International Growth strategy may also invest in equity securities of issuers that have a market capitalization below U.S. $10 billion at the time of purchase. The International Growth strategy will generally contain 25 to 50 equity securities.
4. DSM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. DSM has been independently verified for the periods January 2002 to December 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The International Growth composite has been examined for the periods October 2013 to December 2018. The verification and performance examination reports are available upon request. Benchmark returns are not covered by the report of independent verifiers.
5. DSM’s performance composite includes all discretionary International Growth strategy managed accounts. The composite was created October 1, 2014. A complete list and description of composites, as well as policies for valuing portfolios, calculating performance, and preparing compliant presentations, may be requested from Russell Katz, DSM Capital Partners LLC, 7111 Fairway Drive, Suite 350, Palm Beach Gardens, Florida 33418. Phone: 561-618-4000; email: email@example.com.
6. DSM first offered the International Growth strategy to clients during October of 2013. There was one account in the composite for the period from October 2013 to July 1, 2017. That account was a non-fee-paying employee account. As of July 1, 2017, a number of non-fee-paying employee accounts are invested in the International Growth strategy via a collective trust. The collective trust is comprised of fee-paying clients and non-fee-paying employee accounts.
7. Performance is presented in US Dollars. Results are time-weighted and asset-weighted based on beginning-of-period asset values. Valuation is on a trade-date basis. Results include the reinvestment of dividends and other earnings. Dividends are realized on an accrual basis; cash equivalent dividends are realized on a cash basis. Composite returns are net of withholding taxes on foreign dividends. As of March 2017, reclaimed withholding taxes are recognized as income when received. Pre-fee results include the effect of commissions; post-fee results include the effect of commissions and management fees. Custody charges, where applicable, are not deducted from gross and net-of-fee performance. The 36-month annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The 36-month standard deviation is not shown for periods comprising fewer than 36 monthly returns. Dispersion between accounts is the asset-weighted standard deviation of gross returns for active accounts with DSM for the entirety of a given year. Dispersion is only reported for years having five or more such accounts. Additional information regarding policies for calculating and reporting returns is available upon request.
8. DSM’s management fee for managed accounts for the International Growth strategy is generally 0.70% per annum on the first $50 million of assets, 0.65% on the next $50 million, 0.60% on the next $100 million, and 0.55% on amounts thereafter. DSM’s advisory fees are fully detailed in Part 2A of its Form ADV. This fee is charged quarterly in arrears. Certain accounts in the composite may have different fee structures and certain accounts may involve non-fee expenses not included above. The performance figures presented do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite. Rather, the performance results presented reflect the deduction of a model advisory fee. From inception of the composite on October 1, 2013 through May 31,2019, a model advisory fee of 1.0% per annum for International Growth had been used. From June 1, 2019, the model advisory fee used is 0.85%. From inception through December 31, 2016, DSM calculated monthly post-fee performance by applying one-third of the quarterly model fee to each month of a quarter. As of January 1, 2017, DSM calculates post-fee returns by deducting the entire quarterly model fee in the first month of the quarter, with no fee deduction in the second and third month of the quarter. Quarterly post-fee returns based on beginning-of-quarter market values may compound to more or less than monthly post-fee returns based on beginning-of-month market values.
9. The MSCI ACWI ex-USA Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the US. The MSCI ACWI ex-USA consists of 48 country indices comprising 22 developed and 26 emerging market country indices, excluding the US. This index includes dividends reinvested net of withholding taxes. MSCI uses the withholding tax rate applicable to non-resident institutional investors that do not benefit from double taxation treaties. DSM uses the MSCI ACWI Index ex-USA as a benchmark because it is a global industry standard. Characteristics of any benchmark may differ materially from accounts managed by DSM. The volatility of a benchmark may be materially different from the individual performance attained by a specific client investing within this strategy, and the holdings of the accounts contained within the composite may differ significantly from the securities that comprise the benchmark. Indices are not assessed a management fee and investors cannot directly invest in an index.
10. Leveraged accounts, if any, in the composite involve non-discretionary leverage only. In such cases, per GIPS recommendations, the effect of leverage is removed by treating borrowing as a cash flow and adding back margin interest.
11. There have been no material changes in the persons responsible for the investment management of the International Growth strategy since its inception.
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the contained herein.