International Fund
Litman Gregory Masters International Fund MSILX
Overview
Litman Gregory Masters International Fund invests in foreign stocks and seeks superior long-term performance relative to its peer group of international stock funds. Each of the five managers separately runs a portion of the portfolio composed of his highest conviction stocks. The fund may invest in emerging markets, although it is expected that exposure to developed markets will be significantly greater. Although each manager runs a concentrated portfolio of no fewer than 8 or more than 15 of his favorite ideas, the fund as a whole is diversified by industry, country and stocks.
Typically the fund holds between 48 and 90 securities. The fund seeks to maintain risk in line with its peer group of international stock funds.
This fund is appropriate for investors who:
- Want a core international equity investment with some exposure to emerging markets and small companies
- Seek strong market-cycle performance but are less concerned about short-term returns
- Understand the risks associated with international investing
Evermore Global Advisors
David
Marcus
Target Manager Allocation: 20%
Size of Company: All sizes
Stock-Picking Style: Value
David Marcus and his team employ a deep-value, opportunistic investment approach. They look for special situations around the globe and will opportunistically invest in companies that trade at steep discounts to their intrinsic values and where catalysts (e.g., management changes, asset sales, spin-offs, mergers, acquisitions, liquidations, shareholder activism, etc.) exist to unlock value for shareholders. This special-situations approach often leads Marcus to complex, under-researched and misunderstood areas of the market. On an exceptional basis, Marcus will also invest in post-distressed situations and merger arbitrage.
Ideas are generated through a number of different avenues. Over the years Marcus has built a strong network of relationships with families and individuals that control business, management teams, regional bankers and brokers, and other institutional investors. He leverages this network for new ideas and to cross-check data points. Marcus also screens for companies that may be undergoing strategic change by performing key word searches for phrases like “spin-offs,” “restructurings,” “management changes,” “mergers and acquisitions,” etc.
Harris Associates
David
Herro
Target Manager Allocation: 20%
Size of Company: All sizes, but mostly large and mid-sized companies
Stock-Picking Style: Value
Herro employs Harris' value investment philosophy and process to manage his portion of the fund's assets. This investment philosophy is based upon the belief that, over time, a company's stock price converges with the company's intrinsic or true business value. By "true business value," Harris means an estimate of the price a knowledgeable buyer would pay to acquire the entire business. In making its investment decisions, Harris uses a "bottom-up" approach focused on individual companies, rather than focusing on specific economic factors or specific industries.
The chief consideration in the selection of stocks is the size of the discount of a company's stock price compared to the company's perceived true business value.
Lazard Asset Management
Mark
Little
Target Manager Allocation: 20%
Size of Company: All sizes
Stock-Picking Style: Blend/Relative Value
Little and the portfolio management team believe a company that can improve and/or sustain its profitability at a relatively high level can compound returns at an attractive rate. At the same time, they believe in buying such companies trading at discounts relative to their profitability prospects.
Generally, Lazard categorizes any stock that is bought into one or more of the following three categories:
- Compounders: These are companies that the team think can sustain relatively high levels of profitability and that company management may enhance shareholder returns through share buybacks and dividend payments. Lazard will purchase these companies if they believe they can compound total return, i.e., earnings growth, dividends, and share buy backs, at a relatively high rate over the long term and if they are reasonably priced in relation to their profitability prospects.
Pictet
Fabio
Paolini
Benjamin
Beneche
Target Manager Allocation: 20%
Size of Company: All sizes
Stock-Picking Style: Blend
The investment team approaches equity investment from the perspective of a fractional owner of an underlying business. Consequently, the focus is on the long‐term growth prospects for the business. They believe that each business has an intrinsic value based on its future ability to generate positive cash returns. They therefore structure the research to identify enduring business models that have the capacity to generate sustainable cash returns above their cost of capital.
They believe that the value of compounding high returns on capital over long time periods is often underestimated by the market. Also they believe that a portfolio of growing companies with the potential to create value, and which trade at a discount to their intrinsic value, will outperform across market cycles. They seek to identify and hold stocks with these characteristics regardless of their sector or region. This approach confers on the portfolio a style that is neither wholly “growth” nor wholly “value,” but “growth at a reasonable price.”
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Read about our due diligence on Paolini and Beneche
Thornburg Investment Management
Vinson
Walden
Target Manager Allocation: 20%
Size of Company: All sizes
Stock-Picking Style: Eclectic - may invest in traditional value stocks or growth stocks
Walden believes that a bottom-up approach to investing in undervalued securities will generate above-average returns with below-market risk. Thornburg's idea of value centers on their assessment of the intrinsic worth of an investment. The goal is to uncover promising companies with sound business fundamentals at a time when their intrinsic value is not fully recognized by the marketplace.
The Thornburg team's initial search for investment ideas involves the use of quantitative screens as well as other sources. Starting with the international equity universe, the team screens Thornburg's databases for companies that appear attractive across a number of value parameters. The team looks for securities that have low price-to-earnings, low price-to-cash flow, and low price-to-book ratios. Companies ranging from small-cap to large-cap are considered. Additionally, screens are employed in order to identify stocks where business prospects may be improving. The typical screen generates a list exceeding 50 stocks from which only a few may be selected for further research.
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Monthly Performance as of 8/31/2019
| Average Annual Total Return | |||||||
|---|---|---|---|---|---|---|---|
| Monthly Performance as of 8/31/2019 | One Month | Year to Date | 12 Month Total Return | 3 Year Average | 5 Year Average | 10 Year Average | Since Inception |
Litman Gregory Masters International Fund
|
-2.38% | 14.63% | -5.70% | 4.23% | -0.65% | 4.03% | 6.55% |
|
MSCI ACWI ex U.S. Index†
|
-3.09% | 8.76% | -3.27% | 5.87% | 1.37% | 4.71% | 4.93% |
|
MSCI EAFE Index
|
-2.59% | 9.66% | -3.26% | 5.91% | 1.89% | 5.00% | 4.59% |
|
Morningstar Foreign Large Blend Category Average
|
-2.10% | 9.18% | -4.19% | 5.01% | 1.50% | 4.73% | 3.77% |
Quarterly Performance as of 6/30/2019
| Average Annual Total Return | |||||||
|---|---|---|---|---|---|---|---|
|
Quarterly Performance as of 6/30/2019 |
One Month | Year to Date | 12 Month Total Return | 3 Year Average | 5 Year Average | 10 Year Average | Since Inception |
Litman Gregory Masters International Fund
|
6.40% | 18.08% | -5.04% | 7.09% | -0.58% | 5.55% | 6.75% |
|
MSCI ACWI ex U.S. Index†
|
6.02% | 13.60% | 1.29% | 9.39% | 2.16% | 6.54% | 5.18 |
|
MSCI EAFE Index
|
5.93% | 14.03% | 1.08% | 9.11% | 2.25% | 6.90% | 4.81% |
|
Morningstar Foreign Large Blend Category Average
|
5.70% | 13.48% | -0.08% | 8.05% | 1.93% | 6.45% | 4.01% |
Expense Ratios*
| Gross Expense Ratio | Net Expense Ratio | |
|---|---|---|
| Litman Gregory Masters International Fund (Institutional Class) | 1.33% | 1.09% |
* Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. The gross and net expense ratios can be found in the most recent Summary Prospectus (4/30/2019). There are contractual fee waivers in effect through 4/30/2020.
† Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing, or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability, or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates, or any third party involved in or related to compiling, computing, or creating the data have any liability for any direct, indirect, special, punitive, consequential, or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent. Source note: Returns prior to 1999 are the MSCI ACWI ex-US GR index. Returns from 1999 onwards are MSCI ACWI ex-US NR index.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced.
Prior to April 30, 2009, the Fund's Institutional Class was an unnamed share class. Because the fees and expenses vary between classes, performance will vary with respect to each class.
Indexes are unmanaged, do not incur fees and cannot be invested in directly. Click here for index definitions.
Calendar Year Performance
| 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Litman Gregory Masters International (Institutional Class) |
-1.20%a
|
11.74%
|
75.01%
|
-5.01%
|
-17.94%
|
-14.34%
|
38.86%
|
14.37%
|
23.72%
|
23.61%
|
| MSCI ACWI ex U.S. Index |
n/a
|
14.46%
|
30.91%
|
-15.09%
|
-19.50%
|
-14.67%
|
41.41%
|
21.36%
|
17.11%
|
27.16%
|
| MSCI EAFE Index |
0.90%a
|
20.33%
|
27.30%
|
-13.96%
|
-21.21%
|
-15.66%
|
39.17%
|
20.70%
|
14.01%
|
26.86%
|
| Morningstar Foreign Large Blend Category Average | 0.68%a | 12.57% | 39.00% | -16.58% | -21.42% | -16.55% | 33.38% | 17.43% | 14.82% | 24.75% |
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Litman Gregory Masters International (Institutional Class) |
20.75%
|
-45.47%
|
38.54%
|
15.86%
|
-16.24%
|
19.96%
|
21.47%
|
-2.72% |
-5.52% |
-4.61% |
23.61% |
-20.24%
|
| MSCI ACWI ex U.S. Index |
17.12%
|
-45.24%
|
42.14%
|
11.60%
|
-13.32%
|
17.40%
|
15.80%
|
-3.43% |
-5.24% |
4.49% |
27.19% |
-14.20%
|
| MSCI EAFE Index |
11.63%
|
-43.06%
|
32.45%
|
8.21%
|
-11.75%
|
17.92%
|
23.29%
|
-4.50% |
-0.40% |
1.00% |
25.03% |
-13.79%
|
| Morningstar Foreign Large Blend Category Average | 12.80% | -44.07% | 30.92% | 10.26% | -13.91% | 18.30% | 19.32% | 5.15% | -1.61% | 0.66% | 25.42% | -14.59% |
a Performance from 12/1/97-12/31/97
Best/Worst Rolling Return Periods as of 6/30/2019
| Performance Period | MSILX | MSCI ACWI Ex USA | Number of Periods |
|---|---|---|---|
| Best Rolling 12-Mo. Period | 88.3% | 62.8% | 247 |
| Worst Rolling 12-Mo. Period | -49.7% | -51.5% | 247 |
| Best Rolling 36-Mo. Period | 136.9% | 135.2% | 223 |
| Worst Rolling 36-Mo. Period | -47.4% | -46.8% | 223 |
| Best Rolling 60-Mo. Period | 222.0% | 216.2% | 199 |
| Worst Rolling 60-Mo. Period | -25.2% | -24.9% | 199 |
| Percent Negative 12-Mo. Rolling | 35.2% | 36.6% | 247 |
| Percent Negative 36-Mo. Rolling | 30.5% | 31.8% | 223 |
| Percent Negative 60-Mo. Rolling | 16.1% | 16.6% | 199 |
| Percent Beat Benchmark 12-Mo. | 50.6% | N/A | 247 |
| Percent Beat Benchmark 36-Mo. | 56.4% | N/A | 223 |
| Percent Beat Benchmark 60-Mo. | 66.8% | N/A | 199 |
The first rolling 12 month-period is reached 12 months after each fund's inception (based on month-end dates). The starting and ending periods then "roll" forward one month at a time to comprise a new 12-month period. The first rolling three-year period is reached 36 months after each fund's inception (based on month-end dates). The starting and ending periods then "roll" forward one month at a time to comprise a new 36-month period. The first rolling five-year period is reached 60 months after each fund's inception (based on month-end dates). The starting and ending periods then "roll" forward one month at a time to comprise a new 60-month period.
Fund Facts
| Inception Date: | 12/1/1997 |
| Cusip Number: | 53700T 207 |
| Ticker Symbol: | MSILX |
| MSTRSELTINT | |
| Minimum Investment: | $100,000 ($5,000 retirement accounts) |
| Annual Expenses: | 1.33% gross; 1.09% net (as of 4/30/2019)* |
| Sales Loads: | None |
| 12B-1 Fees: | None |
| (800) 960-0188 | |
|
While the fund is no-load, management and other expenses still apply. |
|
* Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. The gross and net expense ratios can be found in the most recent Summary Prospectus (4/30/2019). There are contractual fee waivers in effect through 4/30/2020.
Portfolio Holdings
- To view our most recent portfolio holdings, please click here.
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
Portfolio Composition (as of 6.30.19) |
||
|
Developed vs. Emerging Markets (as of 6.30.19) |
 |
Market Capitalization |
Regional Allocation vs. MSCI ACWI ex-U.S. Index (as of 6.30.19) |
 |
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
Please click here for index definitions.
Sector Allocation vs. MSCI ACWI ex-U.S. Index (as of 6.30.19) |
 |
Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security.
*Sectors reflect 12/31/04 change to Thomson One GICS - Telecom & Utilities separated; Industrials & Materials separated.
Geographic Distribution (as of 6.30.19)
| Country | % Net Assets |
|---|---|
| Australia | 1.15% |
| Austria | 1.10% |
| Belgium | 1.69% |
| Bermuda | 5.82% |
| Canada | 3.18% |
| China* | 2.14% |
| Denmark | 2.36% |
| Finland | 2.21% |
| France | 11.99% |
| Germany | 5.03% |
| Hong Kong | 6.83% |
| Ireland | 0.86% |
| Israel | 2.63% |
| Japan | 12.18% |
| Korea, Republic of* | 2.47% |
| Mexico* | 0.59% |
| Monaco | 0.85% |
| Netherlands | 16.25% |
| Norway | 0.54% |
| Russia* | 1.37% |
| South Africa* | 1.11% |
| Spain | 0.97% |
| Sweden | 0.86% |
| Switzerland | 5.23% |
| United Kingdom | 8.67% |
| United States | 1.93% |
| 100% |
* Emerging markets consist of Arab Emirates, Argentina, Brazil, China, Greece, India, Korea, Malaysia, Mexico, Panama, Philippines, Poland, Russia, South Africa,Taiwan, and Turkey and total 4.27% of the portfolio. Due to rounding totals may not always equal 100%.
Litman Gregory International Fund Commentary, 1st Quarter 2019
During the quarter, the fund outperformed its benchmark. Stock selection drove the outperformance in the first three months of 2019, particularly in communication services. Individual positions within the energy, financial, and materials sectors also contributed positively. ›› Read More
Sub-Advisor Q&A
We talk with International Fund sub-advisor David Herro about his firm’s value investing process, their continued conviction in the attractiveness of European financials, and the hurdles they set when considering emerging-markets stocks. ›› Read More
We talk with International Fund sub-advisor Mark Little about how he accesses new ideas, the three types of stocks he looks for, and what, if any, impact he's seeing from shorter-term events such as the strong dollar and oil price decline. ›› Read More
Performance quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the funds may be lower or higher than the performance quoted. To obtain the performance of the funds as of the most recently completed calendar month, please click www.mastersfunds.com. Indexes are unmanaged, do not incur fees, and cannot be invested in directly.