Davis International Fund

    Overview

    Investment Strategy

    The goal of the Davis International Fund is to provide investors access to attractive investment opportunities that exist outside of the United States, in both developed and developing markets.

    The Fund applies our signature Davis Investment Discipline – seeking durable, well-managed businesses at value prices and holding them for the long term – to create a Portfolio of companies based primarily outside the United States.

    Investors who recognize that some of the most compelling investment opportunities can be found beyond U.S. borders may want to consider the Davis International Fund.

    Why Invest in Companies Outside the U.S.

    Globalization of the world’s economy continues at a rapid pace:

    • Many successful companies are located outside the United States. (More than 37,000 companies are listed on exchanges outside the United States, compared with only 5,000 within the United States.)
    • About half of the world’s market capitalization is outside the United States.
    • Approximately 95% of the world’s population lives beyond U.S. borders and 74% of global GDP is generated outside the United States.
    • Investing solely in domestic stock funds may mean missing the tremendous growth opportunities and diversification potential that international companies provide.

    Why Invest in the Davis International Fund

    Sixty Years of Experience

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

    Aligned with Shareholders

    With more than $2 billion invested side by side with fellow shareholders, we experience the same risk and reap the same rewards.1

    Lower than Average Expense Ratio3

    Davis International Fund A, 1.05%; Lipper category average, 1.75%

    Lower than Average Turnover Rate3

    Davis International Fund, 21%; Lipper category average, 61%


    Performance as of 3/31/18

    Total Returns
    as of March 31, 2018
    YTD* 1
    Year
    3
    Years
    5
    Years
    10
    Years
    Since
    12/29/06
    Davis International Fund Class A shares
    without a sales charge
    0.83% 25.57% 10.64% 9.41% 3.47% 3.75%
    with a maximum 4.75% sales charge -3.96% 19.60% 8.86% 8.35% 2.97% 3.31%
    MSCI ACWI® - ex U.S. -1.18% 16.53% 6.18% 5.89% 2.70% 2.91%

    *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 Fund is subject to a 2% short-term redemption fee for shares held for fewer than 30 days. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 1.05%. 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 3/31/18

    Geographical Diversification

    Asia 51.4%
    Europe 28.9%
    North & Central America 7.7%
    Africa 7.0%
    South America 5.0%

    Top 10 Countries

    China
    United Kingdom
    France
    South Africa
    Switzerland
    Brazil
    Canada
    India
    Netherlands
    Bermuda

    Top 10 Holdings

    Alibaba Group Holding Ltd., ADR China The world’s largest and most valuable retailer, with operations in over 200 countries and a dominant position in the e-commerce market 6.4%
    Naspers, Class N South Africa A media conglomerate that operates a leading pay television business in South and Sub-Saharan Africa and holds interests in a range of e-commerce businesses around the world 6.0%
    Hollysys Automation Technologies Ltd. China Leading industrial automation company in China 4.7%
    New Oriental Education & Technology China Largest provider of private education services in China 4.3%
    Ferguson PLC United Kingdom Largest U.S. wholesale distributor of plumbing, heating, and water products. 4.0%
    InterGlobe Aviation Ltd. India Owner of India's largest domestic low-cost airline. 3.9%
    Safran S.A. France Leading manufacturer of jet engines 3.7%
    JD.com Inc., Class A, ADR China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances 3.4%
    Tarena International, Inc.,Class A, AD China A leading provider of professional education services in China, providing classroom-based and online tutoring for IT and programming.   2.9%
    Sul America S.A. Brazil Leading multi-line insurer in Brazil 2.7%

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

    Top 5 Industries

    Information Technology 14.3%
    Capital Goods 11.9%
    Retailing 11.5%
    Consumer Services 8.8%
    Media 6.0%

    Portfolio Composition

    International
    Fund
    MSCI ACWI®
    ex USA
    Number of Holdings 41 1,863
    Median Market Cap ($bn) 7.6 8.5
    Weighted Average Market Cap ($bn) 65.4 64.8
    Forecast P/E Ratio 11.2 13.8

    Literature

    Fact Sheets
    Fund Fact Sheet Download

    Applying the Davis Investment Discipline to companies outside the United States; Portfolio characteristics, top holdings, and performance.

    A History of Long Term Outperformance Download

    Our best ideas outside of the U.S.  Outperformed its benchmark over the past decade.^^

    Portfolio Composition Download

    Quarterly update of portfolio characteristics.

    Portfolio Manager Commentary
    Manager Commentary - Annual Review 2018 Download View

    Portfolio Manager Danton Goei discusses the Portfolio, performance and how he applies the Davis Investment Discipline to uncover opportunities outside the United States.

    Insights into the Fund
    Compelling Ideas for the International Investor View

    Three underappreciated themes driving our stock selection, and two ways to put these ideas to work today.

    Global Market Overview and Investment Themes Download

    Our PMs on global markets and themes presenting the strongest investor opportunities

    Barron’s reprint: 4 Underpriced Overseas ‘Compounding Machines’ View

    PM Danton Goei on the types of international companies that have driven the Davis International Fund’s performance record

    This material must be accompanied or preceded by a current Davis International 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.


    1As of December 31, 2017.

    3See Expense ratio/Turnover link below.

    ^^ Class A shares without a sales charge. Past performance is not a guarantee of future results.


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