¹ As of the most recent prospectus, the expense ratios for the Davis New York Venture Fund were as follows:  Class A, 0.90%; Class B, 1.82%; Class C, 1.68%; Class Y, 0.64%; Class R, 1.20%. As of the most recent prospectus, the expense ratios for the Davis International Fund were as follows: Class A, 1.37%; Class B, 4.40%; Class C, 3.88%; Class Y, 0.90%. The Adviser is contractually committed to waive fees and/or reimburse the Fund's expenses to the extent necessary to cap total annual fund operating expenses (Class A shares, 1.30%; Class B shares, 2.30%; Class C shares, 2.30%; Class Y shares, 1.05%) until March 1, 2014; after that date, there is no assurance that expenses will be capped. As of the most recent prospectus, the expense ratios for the Davis Global Fund were as follows: Class A, 1.05%; Class B, 2.41%; Class C, 1.99%; Class Y, 0.75%. The Adviser is contractually committed to waive fees and/or reimburse the Fund's expenses to the extent necessary to cap total annual fund operating expenses (Class A shares, 1.30%; Class B shares, 2.30%; Class C shares, 2.30%; Class Y shares, 1.05%) until March 1, 2014. After that date, there is no assurance that expenses will be capped. As of the most recent prospectus, the expense ratios for the Davis Opportunity Fund were as follows: Class A, 1.02%; Class B, 2.01%; Class C, 1.82%; Class Y, 0.77%. As of the most recent prospectus, the expense ratios for the Davis Financial Fund were as follows: Class A, 0.91%; Class B, 2.09%; Class C, 1.84%; Class Y, 0.72%. As of the most recent prospectus, the expense ratios for the Davis Real Estate Fund were as follows: Class A, 1.01%; Class B, 2.11%; Class C, 1.86%; Class Y, 0.76%. As of the most recent prospectus, the expense ratios for the Davis Appreciation and Income Fund were as follows: Class A, 0.95%; Class B, 1.89%; Class C, 1.75%; Class Y, 0.75%. As of the most recent prospectus, the expense ratios for the Davis Government Bond Fund were as follows: Class A, 0.70%; Class B, 1.63%; Class C, 1.57%; Class Y, 0.44%.  As of the most recent prospectus, the gross expense ratio for the Davis Government Money Market for all share classes (Class A, B, C and Y) was 0.63%. The total annual operating expense ratio may vary in future years. The Adviser is contractually committed to waive fees and/or reimburse the fund’s expenses such that net investment income will not be less than zero until May 1, 2014. After that date, there is no assurance that the Adviser will continue to cap expenses. The expense cap cannot be terminated prior to May 1, 2014, without the consent of the board of directors. In the most recent prospectus, after the waiver, the net expense ratio for all classes was 0.16%. As of the most recent prospectus, the expense ratios for the Davis Value Portfolio, Davis Real Estate Portfolio, and Davis Financial Portfolio were 0.64%, 0.77%, and 0.69%, respectively. The Adviser is contractually committed to waive fees and/or reimburse the Variable Annuities expenses to the extent necessary to cap total annual fund operating expenses at 1.00% until May 1, 2014; after that date, there is no assurance that the Adviser will continue to cap expenses. The total annual operating expense ratio of all Funds and Portfolios may vary in future years.

The maximum sales charge on a Class A share is 4.75%, on a Class B share the maximum contingent deferred sales charge is 4%, and on a Class C share the maximum contingent deferred sales charge is 1%.

All total return figures include reinvestment of dividends and capital gains distributions. Class B shares automatically convert to Class A shares after seven years. Class B shares' performance for the periods exceeding seven years includes the first seven years of Class B share performance and Class A share performance thereafter. Total returns for periods of less than one full year for classes of shares are cumulative total returns, which are not annualized.

²Risk Disclosures. Some important risks of an investment in the Funds/Portfolios are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; financial services risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile; foreign country risk: companies operating, incorporated or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable and foreign financial reporting standards may not be as rigorous as they are in the United States; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; foreign currency risk: the change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. The Fund may, but generally does not hedge its currency risk; concentrated portfolio risk: the Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector; emerging market risk: the Fund invests in emerging or developing markets whose securities may be more difficult to sell at an acceptable price and their prices may be more volatile than securities of issuers in more developed markets. In unusual situations it may not be possible to repatriate sales proceeds in a timely fashion. These investments may be very speculative; concentrated real estate portfolio risk and focused portfolio risk: Davis Real Estate Fund primarily invests in real estate securities, and it may be subject to greater risks than a fund that does not concentrate it investments in a particular sector. Please see the prospectus for a complete listing and a description of the principal risks.

Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

³Davis Financial Fund

The Davis Financial Fund received a favorable class action settlement from a company that it no longer owns. This settlement had a material impact on the investment performance of the Fund in 2009.

Davis Opportunity Fund

All total return figures include reinvestment of dividends and capital gains distributions. Class B shares automatically convert to Class A shares after seven years. However, since the inception date for Class A shares is 12/1/94, Class B shares could not be converted prior to that date. Therefore, the performance for the life period includes Class B share performance until 12/1/94, and Class A share performance thereafter. Class B shares' performance for the periods exceeding seven years includes the first seven years of Class B share performance and Class A share performance thereafter. Total returns for periods of less than one full year for classes of shares are cumulative total returns, which are not annualized. 

The Fund’s performance benefited from an IPO purchase in 2010.  After purchase, the IPO rapidly increased in value. Davis Advisors purchases shares intending to benefit from long-term growth of the underlying company; the rapid appreciation of the IPO was an unusual occurrence.

Davis Global Fund

During the period from inception (December 22, 2004) through December 29, 2006 only the directors, officers and employees of the Fund or its investment adviser and sub-adviser (and the investment adviser itself and affiliated companies) were eligible to purchase Fund shares. During this time period the Fund's investment strategies and operations were substantially the same as they are expected to be in the future.

The Fund’s performance benefited from an IPO purchase in 2010.  After purchase, the IPO rapidly increased in value. Davis Advisors purchases shares intending to benefit from long-term growth of the underlying company; the rapid appreciation of the IPO was an unusual occurrence.

Davis International Fund

During the period from inception (December 29, 2006) through December 30, 2009, only the directors, officers and employees of the Fund or its investment adviser and sub-adviser (and the investment adviser itself and affiliated companies) were eligible to purchase Fund shares. During this time period the Fund's investment strategies and operations were substantially the same as they are expected to be in the future.

The Fund’s performance benefited from an IPO purchase in 2010.  After purchase, the IPO rapidly increased in value. Davis Advisors purchases shares intending to benefit from long-term growth of the underlying company; the rapid appreciation of the IPO was an unusual occurrence. 

Davis Government Bond Fund

All total return figures include reinvestment of dividends and capital gains distributions. Class B shares automatically convert to Class A shares after seven years. However, since the inception date for Class A shares is 12/1/94, Class B shares could not be converted prior to that date. Therefore, the performance for the life period includes Class B share performance until 12/1/94, and Class A share performance thereafter. Class B shares' performance for the periods exceeding seven years includes the first seven years of Class B share performance and Class A share performance thereafter. Total returns for periods of less than one full year for classes of shares are cumulative total returns, which are not annualized.

⁴Davis New York Venture Fund’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. The Fund invests primarily in equity securities issued by large companies with market capitalizations of at least $10 billion. Some important risks of an investment in the Fund are: stock market risk: stock markets tend to move in cycles, with periods of rising prices and periods of falling prices, including the possibility of sharp declines; manager risk: poor security selection or focus on securities in a particular sector, category, or group of companies may cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective; common stock risk: common stock represents an ownership position in a company. Events that have a negative impact on a business probably will be reflected in a decline in the price of its common stock. Common shareholders have a subordinate claim on a companies assets to more senior securities, including owners of preferred stock and debt securities; financial services risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile as securities within the financial services sector are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations, and are the target of increased competition; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of March 31, 2013, the Fund had approximately 14.6% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

⁶Outperforming the Market. New York Venture Fund average annual total returns for Class A shares were compared against the returns earned by the S&P 500^® Index as of the end of each quarter for all time periods shown from February 17, 1969 through December 31, 2012. The Fund’s returns assume an investment in Class A shares on the first day of each quarter with all dividends and capital gain distributions reinvested for the period. The returns are not adjusted for any sales charge that may be imposed. If a sales charge was imposed, the reported figures would be lower. The figures shown reflect past results; past performance is not a guarantee of future results. There can be no guarantee that the Fund will continue to deliver consistent investment performance. The performance presented includes periods of bear markets when performance was negative. Equity markets are volatile and an investor may lose money. Returns for other share classes will vary.

⁷Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund's public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The grades are subject to change and are as of December 31, 2012. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating. The grades are subject to change.

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. A fund with a 'Silver' rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a 'Neutral' rating isn't seriously flawed across the five pillars, nor does it distinguish itself very positively. A "Negative" rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers.

For more detailed information about Morningstar's Analyst Rating, including its methodology, please click here.

The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar's current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.

⁸Fund expense ratio is as of most recent prospectus. Lipper Category Average expense ratio is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average turnover is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis New York Venture Fund had been categorized by Lipper as Large Cap Core. The Lipper Average Large Cap peer group is a combined category including the Lipper Large Cap Growth, Core, and Value peer groups.

Lipper Large Cap peer groups are funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper's USDE large-cap floor. Funds are categorized as Growth, Core, or Value based on their portfolio characteristics; price to earnings ratio; price to book ratio; and three year sales per share growth value. Growth funds typically have above-average characteristics, Core funds typically have average characteristics, and Value funds typically have below-average characteristics, compared to the S&P 500^® Index.

⁹Portfolio characteristics are subject to change. The holdings presented may not represent the entire portfolio. For a complete listing of portfolio holdings review the most recent Annual Report, Semi-Annual Report, or Form N-Q.

The Fund generally uses Global Industry Classification Standard (“GICS”) as developed by Morgan Stanley Capital International and Standard & Poor’s Corporation to determine industry classification. GICS presents industry classification as a series of levels (i.e. sector, industry group, industry, and sub-industry). Allocations shown are at the Industry Group level except for the following industry groups which have been combined as indicated: Technology: Software & Services, Technology Hardware & Equipment, Semiconductors & Semiconductor Equipment; Pharmaceutical & Health Care: Pharmaceuticals, Biotechnology & Life Sciences, Health Care Equipment & Services. Allocations shown are at the sub-industry level for Real Estate securities. Non-Real Estate securities are shown at the industry group level. The Advisor may reclassify a company into an entirely different industry if it believes that the GICS classification for a specific company does not accurately describe the company. Industry Group weightings are subject to change.

Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees; and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing support concerning Davis Advisors' products; placement on a list of offered products; access to sales meetings, sales representatives and management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events and other dealer-sponsored events. Financial advisors should not consider Davis Advisors' payment(s) to a financial intermediary as a basis for recommending Davis Advisors.

Davis Funds has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holding information. This policy is described in the prospectus. Visit davisfunds.com or call 800-279-0279 for the most current public portfolio holdings information.

Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

¹⁰Davis International Fund’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States; foreign currency risk: the change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. The Fund may, but generally does not hedge its currency risk; small- and medium-capitalization risk: small and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and emerging market risk: the Fund invests in emerging or developing markets. Securities of issuers in emerging and developing markets may offer special investment opportunities, but present risks not found in more mature markets. These securities may be more difficult to sell at an acceptable price and their prices may be more volatile than securities of issuers in more developed markets. Settlements of trades may be subject to greater delays so that the Fund might not receive the proceeds of a sale of a security on a timely basis. In unusual situations it may not be possible to repatriate sales proceeds in a timely fashion. These investments may be very speculative. As of March 31, 2013, the Fund had approximately 33.3% of assets invested in securities from emerging markets. See the prospectus for a complete listing of the principal risks.

During the period from inception (December 29, 2006) through December 30, 2009, only the directors, officers and employees of the Fund or its investment adviser and sub-adviser (and the investment adviser itself and affiliated companies) were eligible to purchase Fund shares. Since inception, the Fund’s investment strategies and operations have remained substantially the same.

¹¹Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis International Fund had been categorized by Lipper as International Multi-Cap Growth.

Lipper International Multi-Cap Growth funds invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. International multi-cap growth funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup World ex-U.S BMI.

¹²The S&P 500^® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in an index.

¹³The MSCI ACWI (All Country World Index) ex USA 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 United States. The index includes reinvestment of dividends, net of foreign withholding taxes. Investments cannot be made directly in an index.

¹⁴Davis Global Fund’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States; foreign currency risk: the change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. The Fund may, but generally does not hedge its currency risk; small- and medium-capitalization risk: small and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and emerging market risk: the Fund invests in emerging or developing markets. Securities of issuers in emerging and developing markets may offer special investment opportunities, but present risks not found in more mature markets. These securities may be more difficult to sell at an acceptable price and their prices may be more volatile than securities of issuers in more developed markets. Settlements of trades may be subject to greater delays so that the Fund might not receive the proceeds of a sale of a security on a timely basis. In unusual situations it may not be possible to repatriate sales proceeds in a timely fashion. These investments may be very speculative. As of March 31, 2013, the Fund had approximately 21.9% of assets invested in securities from emerging markets. See the prospectus for a complete listing of the principal risks.

During the period from inception (December 22, 2004) through December 29, 2006, only the directors, officers and employees of the Fund or its investment adviser and sub-adviser (and the investment adviser itself and affiliated companies) were eligible to purchase Fund shares. Since inception, the Fund’s investment strategies and operations have remained substantially the same.

¹⁵Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis Global Fund had been categorized by Lipper as Global Multi-Cap Growth.

Global Multi-Cap Growth funds invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. These funds typically have an above-average price-to-cash flow ratio, price-to-book ratio and three year sales-per-share growth value compared to the S&P/Citigroup BMI.

¹⁶The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets throughout the world. The index includes reinvestment of dividends, net foreign withholding taxes. Investments cannot be made directly in an index.

¹⁷Davis Opportunity Fund’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of March 31, 2013, the Fund had approximately 10.5% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

Davis Advisors began active daily management of the Fund on January 1, 1999. From May 1, 1984, until December 31, 1998, Davis Advisors had a subadvisor that handled the active daily management of the fund.

Small-cap companies have market capitalizations less than $3 billion. Mid-cap companies have market capitalizations from $3 billion to $10 billion. Large-cap companies have market capitalizations more than $10 billion. Under normal circumstances, Davis Opportunity Fund invests the majority of its assets in equity securities issued by companies with market capitalizations of less than $20 billion.

¹⁸©2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on Morningstar’s risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in a category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its 3, 5, and 10 year Morningstar Rating™ metrics. The Morningstar Ratings™ are for the specified share class; other classes may have different performance characteristics. Unlike Morningstar Ratings™, Total Return Rankings do not take into account a sales charge. Ratings are based on past performance and are not a guarantee of future results. Class A shares maximum sales charge is 4.75%. The rating is subject to change and is as of December 31, 2012.

¹⁹Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis Opportunity Fund had been categorized by Lipper as Multi-Cap Core.

The Fund is categorized by Lipper as Multi-Cap Core. Large Cap-Core Funds are funds invest invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap core funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index.

²⁰The Russell 3000^® Index measures the performance of the 3,000 largest companies incorporated in the United States and its territories and listed on the NYSE, AMEX, or NASDAQ. The companies are ranked by decreased total market capitalizations. Investments cannot be made directly in an index.

²¹Davis Financial Fund’s investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Under normal circumstances the Fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; concentrated portfolio risk: the fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector; financial services risk: investing in the financial services sector may cause the fund to be more sensitive to problems affecting financial companies; focused portfolio risk: funds that invest in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the value of a funds total portfolio; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; interest rate sensitivity: interest rates may have a powerful influence on the earnings of financial institutions; credit risk: financial institutions are often highly leveraged and may not be unable to make timely payments of interest and principal; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of March 31, 2013 the Fund had approximately 19.1% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

²²Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund’s public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating. The grades are subject to change and are as of December 31, 2012.

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. A fund with a 'Silver' rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a 'Neutral' rating isn't seriously flawed across the five pillars, nor does it distinguish itself very positively. A "Negative" rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers.

For more detailed information about Morningstar's Analyst Rating, including its methodology, please click here.

The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar's current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.

²³Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis Financial Fund had been categorized by Lipper as Financial Services.

Lipper Financial Services Funds are funds that invest primarily in equity securities of domestic companies engaged in providing financial services, including but not limited to banks, inance companies, insurance companies, and securities/brokerage firms.

²⁴Davis Real Estate Fund’s investment objective is total return through a combination of growth and income. There can be no assurance that the Fund will achieve its objective. Under normal circumstances the Fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in equity, convertible, and debt securities issued by companies principally engaged in the real estate industry. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; concentrated portfolio risk: the fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector; real estate portfolio risk: real estate securities are susceptible to the many risks associated with the direct ownership of real estate, including declines in property values, increases in property taxes, operating expenses, interest rates or competition, overbuilding, changes in zoning laws, or losses from casualty or condemnation; focused portfolio risk: funds that invest in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the value of a funds total portfolio; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; variable current income: the income which the fund pays to investors is not stable; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. See the prospectus for a complete listing of the principal risks.

²⁵Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund’s public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating. The grades are subject to change and are as of December 31, 2012.

²⁶Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of December 31, 2012. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis Real Estate Fund had been categorized by Lipper as Real Estate.

Lipper Real Estate funds invest primarily in equity securities of domestic and foreign companies engaged in the real estate industry.

²⁷The S&P 500^® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in an index. 

²⁸Davis Appreciation and Income Fund’s investment objective is total return through a combination of growth and income. There can be no assurance that the Fund will achieve its objective. The Fund is subject to both equity and debt risk. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect the success or failure of the company issuing the stock; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; interest rate sensitivity: if a security pays a fixed interest rate, and market rates increase, the value of the fixed-rate security generally declines; extension and prepayment risk: extension risk occurs when borrowers maintain their existing mortgages until they come due instead of choosing to prepay them. Prepayment risk occurs when borrowers prepay their mortgages more quickly than usual so that they can refinance at a lower rate. The pace at which borrowers prepay affects the yield and the cash flow to holders of securities and the market value of those securities; credit risk: the issuer of a fixed income security may be unable to make timely payments of interest and principal; changes in debt rating: if a rating agency gives a fixed income security a low rating, the value of the security will decline because investors will demand a higher rate of return; variable current income: the income which the fund pays to investors is not stable; overburdened issuers: issuers of high-yield, high-risk debt securities are unlikely to have a cushion from which to make their payments when their earnings are poor or when the economy in general is in decline; priority: issuers of high-yield, high-risk debt securities are likely to have a substantial amount of other debt which will be senior to the high-yield, high-risk debt securities. An issuer must be current on its senior obligations before it can pay bondholders; difficult to resell: many investors simply do not want high-yield, high-risk debt securities, and others are prohibited from buying them; and fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund. See the prospectus for a complete listing of the principal risks.

²⁹Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund’s public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating. The grades are subject to change and are as of December 31, 2012.

³⁰Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end. Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2013, the Davis Appreciation & Income Fund had been categorized under Mixed-Asset Target Allocation Growth.

Mixed-Asset Target Allocation Growth funds invest 60%–80% in equity securities with the remainder invested in bonds, cash and cash equivalents.

³¹Davis Government Bond Fund’s investment objective is current income. In order to achieve this objective while minimizing volatility and preserving capital, the Fund invests exclusively, under normal circumstances, in U.S. Government Securities and repurchase agreements collateralized by U.S. Government Securities with a weighted average maturity of three years or less. Some important risks of an investment in the Fund are: variable current income: the income which the fund pays to investors is not stable; interest rate sensitivity: if a security pays a fixed interest rate, and market rates increase, the value of the fixed-rate security generally declines; extension and prepayment risk: extension risk occurs when borrowers maintain their existing mortgages until they come due instead of choosing to prepay them. Prepayment risk occurs when borrowers prepay their mortgages more quickly than usual so that they can refinance at a lower rate. The pace at which borrowers prepay affects the yield and the cash flow to holders of securities and the market value of those securities; and fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund. Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. See the prospectus for a complete listing of the principal risks.

³²Davis Value Portfolio’s investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. Davis Value Portfolio invests primarily in equity securities issued by large companies with market capitalizations of at least $10 billion. Some important risks of an investment in the Portfolio are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; financial services risk: investing a significant portion of assets in the financial services sector may cause a portfolio to be more volatile as securities within the financial services sector are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations, and are the target of increased competition; and foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. See the prospectus for a complete listing of the principal risks.

³³An investment in the Portfolio is not a deposit of any bank and is not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation or any other government agency.

³⁴Davis Financial Portfolio’s investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. Under normal circumstances the Portfolio invests at least 80% of its net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. Some important risks of an investment in the Portfolio are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; concentrated financial services portfolio risk: investing a significant portion of assets in the financial services sector may cause a portfolio to be more volatile as securities within the financial services sector are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations, and are the target of increased competition; and foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. See the prospectus for a complete listing of the principal risks.

³⁵An investment in the Portfolio is not a deposit of any bank and is not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation or any other government agency.

³⁶Davis Real Estate Portfolio’s investment objective is total return through a combination of growth and income. There can be no assurance that the Portfolio will achieve its objective. Under normal circumstances the Portfolio invests at least 80% of its net assets, plus any borrowing for investment purposes, in equity, convertible, and debt securities issued by companies principally engaged in the real estate industry. Some important risks of an investment in the Portfolio are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; concentrated real estate services portfolio risk: any portfolio that has a concentrated portfolio is particularly vulnerable to the risks of its selected industry; focused portfolio risk: the Portfolio is classified as a non-diversified portfolio and is allowed to focus its investments in fewer companies than a diversified portfolio; small and medium-capitalization risk: small and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; and foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. See the prospectus for a complete listing of the principal risks.

³⁷An investment in the Portfolio is not a deposit of any bank and is not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation or any other government agency.

³⁸Davis New York Venture Fund’s, Davis Opportunity Fund’s, Davis Global Fund’s, and Davis Financial Fund’s investment objective is long-term growth of capital. Davis Appreciation and Income Fund’s and Davis Real Estate Fund’s investment objective is total return through a combination of growth and income. There can be no assurance that a Fund will achieve its objective. Some important risks of an investment in Davis New York Venture Fund are market risk, company risk, financial services risk, and foreign country risk. As of March 31, 2013, Davis New York Venture Fund had approximately 14.6% of assets invested in foreign securities. Some important risks of an investment in Davis Opportunity Fund are market risk, company risk, under $10 billion market capitalization risk, and foreign country risk. As of March 31, 2013, Davis Opportunity Fund had approximately 10.5% of assets invested in foreign securities. Davis Appreciation and Income Fund is subject to both equity and debt risk. Some important risks of an investment in Davis Appreciation and Income Fund are market risk, company risk, under $10 billion market capitalization risk, and foreign country risk. Some important risks of an investment in Davis Global Fund are market risk, company risk, foreign country risk, foreign currency risk, and emerging market risk. As of March 31, 2013, Davis Global Fund had approximately 21.9% of assets invested in emerging markets. Davis Real Estate Fund is subject to both concentrated real estate portfolio risk and focused portfolio risk. Some important risks of an investment in Davis Financial Fund are market risk, company risk, concentrated portfolio risk, under $10 billion market capitalization risk, and financial services risk. As of March 31, 2013, Davis Financial Fund had approximately 19.1% of assets invested in foreign securities.

Risk Disclosures. Following is a brief description of these risks. Please see the prospectus for a complete listing and a description of the principal risks. Market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; financial services risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile; foreign country risk: companies operating, incorporated or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable and foreign financial reporting standards may not be as rigorous as they are in the United States; under $10 billion market capitalization risk: small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies; foreign currency risk: the change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. The Fund may, but generally does not hedge its currency risk; concentrated portfolio risk: the Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector; emerging market risk: the Fund invests in emerging or developing markets whose securities may be more difficult to sell at an acceptable price and their prices may be more volatile than securities of issuers in more developed markets. In unusual situations it may not be possible to repatriate sales proceeds in a timely fashion. These investments may be very speculative; concentrated real estate portfolio risk and focused portfolio risk: Davis Real Estate Fund primarily invests in real estate securities, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector.

³⁹Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund’s public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The grades are subject to change and are as of December 31, 2012.

⁴⁰Lipper: Large-Cap Core funds invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s USDE large-cap floor. These funds typically have an average price-to-earnings ratio, price-to-book ratio and three year sales-per-share growth value, compared to the S&P 500^® Index. Multi-Cap Core funds invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time. Multi-Cap Core funds typically have an average price-to-earnings ratio, price-to-book ratio and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500^® Index. Mixed-Asset Target Allocation Growth funds invest 60%–80% in equity securities with the remainder invested in bonds, cash and cash equivalents. Real Estate funds invest primarily in equity securities of domestic and foreign companies engaged in the real estate industry. Financial Services funds invest primarily in equity securities of domestic companies engaged in providing financial services, including, but not limited to: banks, finance companies, insurance companies, and securities/brokerage firms. Global Multi-Cap Growth funds invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. These funds typically have an above-average price-to-cash flow ratio, price-to-book ratio and three year sales-per-share growth value compared to the S&P/Citigroup BMI.

⁴¹Davis Opportunity Fund and Davis Global Fund performance benefited from an IPO purchase in 2010.  After purchase, the IPO rapidly increased in value. Davis Advisors purchases shares intending to benefit from long-term growth of the underlying company; the rapid appreciation of the IPO was an unusual occurrence.

During the period from inception of the Davis Global Fund through December 29, 2006, only the directors, officers and employees of the Funds or their investment advisers and sub-advisers (and the investment adviser itself and affiliated companies) were eligible to purchase Fund shares. During this time period, the Fund’s investment strategies and operations were substantially the same as they are expected to be in the future.

Davis Financial Fund received a favorable class action settlement from a company that it no longer owns. This settlement had a material impact on the investment performance of the Fund in 2009. This was a one-time event that is unlikely to be repeated.

Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees; and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing support concerning Davis Advisors’ products; placement on a list of offered products; access to sales meetings, sales representatives and management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events, and other dealer-sponsored events. Financial advisors should not consider Davis Advisors’ payment(s) to a financial intermediary as a basis for recommending Davis Advisors.

The Davis family, Davis Advisors, employees, and directors have more than $2 billion of their own money invested side by side with fellow shareholders in the various mutual funds our firm manages (as of December 31, 2012).

Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.