Davis Financial Fund

    Overview

    Investment Strategy

    The Davis Financial Fund seeks to purchase durable, well-managed financial businesses at value prices and hold them for the long term. It may also invest a small portion of assets in companies outside the financial industry. 

    We use the Davis Investment Discipline to uncover financial companies with competitive advantages, strong balance sheets, solid free cash flows and earnings growth potential, and proven outstanding management. We believe these types of businesses, purchased at attractive prices, should perform well for investors over time.

    Why Invest in the Davis Financial Fund

    According to Morningstar

    “There may be only a handful of financial funds that can answer whether there is still money to be made in this sector, and Davis Financial, a top category performer, is one of them...” – Morningstar Analysis – 11/11

    Sixty Years of Experience

    The Davis family has compounded wealth for investors over six decades and three generations.

    Long-Term Results

    The Fund delivered an average annual return of 12.04% from its inception on May 1, 1991 through June 30, 2014 versus a return of 11.13% for the Lipper category average.1

    Aligned with Shareholders

    With more than $2 billion invested side by side with fellow shareholders, we experience the same risks and reap the same rewards.2

    Lower than Average Expense Ratio4

    Davis Financial Fund A, 0.88%; Lipper category average, 1.45%

    Lower than Average Turnover Rate4

    Davis Financial Fund, 0%; Lipper category average, 105%

    Performance as of 6/30/14

    The chart below illustrates the attractive long-term performance for the Davis Financial Fund.

    Total Returns as of
    June 30, 2014
    YTD* 1
    Year
    3
    Years
    5
    Years
    10
    Years
    15
    Years
    20
    Years
    Since
    5/1/91
    Davis Financial Fund Class A Shares
    without a sales charge
    5.92% 21.14% 13.78% 16.17% 5.64% 5.32% 10.78% 12.04%
    with a maximum 4.75% sales charge 0.89% 15.39% 11.95% 15.04% 5.13% 4.98% 10.51% 11.80%
    S&P 500® Index 7.14% 24.61% 16.58% 18.83% 7.78% 4.35% 9.79% 9.57%

    *YTD is not annualized.

    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 0.88%. 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. The 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.

    Portfolio Characteristics as of 6/30/14

    Portfolio Composition

    Financial Fund S&P 500® Index
    Forecast P/E Ratio 15.2 16.6
    P/B Ratio 2.1 3.4
    Weighted Average Market Cap ($bn) 91.3 125.3
    Beta (3 year) 1.0 1.0
    Standard Deviation (5 year, A Shares) 14.0 13.4
    Number of Holdings 26 501

    Turnover and Expenses

    Financial
    Fund
    Lipper Category Average
    Turnover Rate4 0% 105%
    Expense Ratio4 (A Shares) 0.88% 1.45%

    Top 10 Holdings

    American Express Co. 9.9%
    Wells Fargo & Co. 9.9%
    Bank of New York Mellon Corp. 6.5%
    Markel Corp. 6.4%
    American International Group Inc. 4.7%
    Visa Inc. Class A Shares 4.7%
    Everest Re Group, Ltd. 4.6%
    JPMorgan Chase & Co. 4.4%
    Brookfield Asset Management Inc. 4.4%
    Julius Baer Group Ltd. 4.3%

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

    Top 5 Industries

    Diversified Financials 41.8%
    Insurance 30.6%
    Banks 18.5%
    Energy 4.3%
    Information Technology 2.9%

    Literature

    Fact Sheet
    Fund Fact Sheet Download

    Applying the Davis Investment Discipline to a broad spectrum of financial companies, Portfolio characteristics, top holdings, and performance.

    Portfolio Composition Download

    Quarterly update of portfolio characteristics.

    Portfolio Manager Commentary
    Manager Commentary - Semi-Annual Review 2013 View

    The Portfolio Manager offers his thoughts on the financial sector, individual companies in the Portfolio, and recent performance.

    This material must be accompanied or preceded by a current Davis Financial 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 shares, not including a sales charge. As of June 30, 2014, the Davis Financial Fund had been categorized by Lipper as Financial Services. Past performance is not a guarantee of future results.

    2As of December 31, 2013.

    4See Expense ratio/Turnover link below.


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