Davis Appreciation and Income Fund

    Overview

    Investment Strategy

    The Fund is a portfolio of equities and bonds which seeks to provide total return through capital appreciation and income. The goal is to do so over long-term market cycles. The Fund has lower than average expenses. As the largest shareholder, we have a unique commitment to client stewardship.

    Why Invest in Davis Appreciation and Income Fund

    Stocks and Bonds in a Single Fund

    Combination of durable, well-managed stocks (about two-thirds of the portfolio) and high quality bonds (about one-third).

    Rigorous Research

    Utilizing in-depth, independent research, we evaluate the quality and valuation of equities and fixed income securities to achieve the Fund’s goals.

    Attractive Results

    Through up-market years since 1992, the Fund has delivered an average annual return of 13.62% vs. 16.55% for the S&P 500® Index. Through down market years since 1992, the Fund has delivered an average annual return of −12.79% vs.−20.02% for the S&P 500® Index.1

    We are the Largest Shareholder

    The Davis family, Davis Advisors, employees and directors have more than $2 billion of their own money invested side-by-side with clients.2  We have a unique commitment to stewardship, generating attractive long-term results, managing risks, and minimizing fees.

    Experienced Management

    Chris Davis, 28 years with Davis Advisors
    Peter J. Sackmann, CFA, 19 years with Davis Advisors
    Creston A. King III, CFA, 18 years with Davis Advisors

    Lower Expenses3

    Expense Ratio (Cl–A) 0.91%; Lipper Category Average 1.98%
    Expense Ratio (Cl–Y) 0.70%; Lipper Category Average 1.98%

    Performance as of 3/31/17

    1) Returns through up and down years:

    Through up-market years since 1992, the Fund has delivered an average annual return of 13.62% vs. 16.55% for the S&P 500® Index.

    Through down-market years since 1992, the Fund has delivered an average annual return of -12.79% vs. -20.02% for the S&P 500® Index.

    2) Returns since inception

    By avoiding much of the downside risk during the market’s most difficult years, the Fund has delivered attractive long-term results for investors (Returns through 3/31/17).

    The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s shares may be worth more or less than their original cost. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.91%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.279.0279.

    Portfolio Characteristics as of 3/31/17

    Portfolio Allocation

    Common Stock 56%
    Bonds 27%
    Foreign Stocks 14%
    Preferred Stock 2%
    Cash & Equivalents 1%

    Top 10 Holdings

    Berkshire Hathaway Inc., Class B 4.4%
    LafargeHolcim Ltd. 3.8%
    Roche Holding AG - Genusschein 3.8%
    EQT Midstream Partners LP 3.7%
    Occidental Petroleum Corp. 3.6%
    Wells Fargo & Co. 3.3%
    Amazon.com, Inc. 3.1%
    Safran S.A. 3.1%
    American Express Co. 3.0%
    U.S. Bancorp 3.0%

    Click here for month-end holdings.
    Click here for quarter-end holdings.

    Top 5 Industries

    Diversified Financials 18.7%
    Energy 12.8%
    Information Technology 12.6%
    Mortgage Backed 9.5%
    Health Care 9.3%

    Literature

    Fact Sheets
    Fund Fact Sheet Download

    Goals of the Fund, types of companies commonly in the Portfolio, top holdings, Portfolio characteristics and historical performance. 

    Portfolio Manager Commentary
    Manager Commentary - Annual Review 2017 Download View

    Portfolio Managers Christopher Davis, Peter J. Sackmann, CFA and Creston A. King III, CFA discuss the Fund’s investment strategy, the market environment, Portfolio companies, and recent performance.

    This material must be accompanied or preceded by a current Davis Appreciation and Income Fund Prospectus. You should carefully consider the Fund’s investment objective, risks, charges, and expenses before investing. The prospectus contains this and other information and can be obtained by clicking here or calling 800.279.0279. Read the prospectus carefully before you invest or send money.


    1Class A, not including a sales charge. Returns are from inception (5/1/92) through 3/31/17. Past performance is not a guarantee of future results.

    2As of December 31, 2016.

    3See Expense ratio/Turnover link below.


    Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756