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, 1.14%; Lipper category average, 2.13%

    Lower than Average Turnover Rate3

    Davis International Fund, 47%; Lipper category average, 64%


    Performance as of 12/31/16

    Total Returns
    as of December 31, 2016
    YTD* 1
    Year
    3
    Years
    5
    Years
    10
    Years
    Since
    12/29/06
    Davis International Fund Class A shares
    without a sales charge
    0.79% 0.79% -1.29% 6.40% 0.84% 0.84%
    with a maximum 4.75% sales charge -4.00% -4.00% -2.88% 5.37% 0.35% 0.35%
    MSCI ACWI® - ex U.S. 4.50% 4.50% -1.78% 5.00% 0.96% 0.96%

    *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 1.14%. 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 12/31/16

    Geographical Diversification

    Asia 40.5%
    Europe 33.9%
    North America 12.5%
    South America 7.3%
    Africa 5.8%

    Top 10 Countries

    China
    Switzerland
    Canada
    France
    Brazil
    South Africa
    Germany
    United Kingdom
    Singapore
    India

    Top 10 Holdings

    Encana Corp. Canada Canadian-based energy exploration and production company with properties in Canada and the U.S. 7.4%
    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 5.3%
    Didi Chuxing Joint Co., Series A-17 China The largest mobile platform taxi-calling app in China 5.0%
    Safran S.A. France Leading manufacturer of jet engines 4.8%
    LafargeHolcim Ltd. Switzerland The world’s largest cement company with operations spanning the developed and developing worlds 4.0%
    Sul America S.A. Brazil A leading multi-line insurer in Brazil 3.9%
    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 3.8%
    Novartis AG - ADR Switzerland A diversified health care company that manufacturers pharmaceuticals and eye care products 3.7%
    Schneider Electric SE France A global specialist in energy management 3.7%
    Roche Holding AG - Genusschein Switzerland A global leader in pharmaceuticals and biotech 3.6%

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

    Top 5 Industries

    Retailing 16.9%
    Capital Goods 11.3%
    Health Care 8.4%
    Energy 8.2%
    Materials 7.7%

    Portfolio Composition

    International
    Fund
    MSCI ACWI®
    ex USA
    Number of Holdings 39 1,855
    Median Market Cap ($bn) 6.3 6.7
    Weighted Average Market Cap ($bn) 37.4 49.3
    Forecast P/E Ratio 11.6 15.3

    Literature

    Fact Sheets
    Fund Fact Sheet Download

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

    Portfolio Composition Download

    Quarterly update of portfolio characteristics.

    Portfolio Commentary
    Manager Commentary - Semi-Annual Review 2015 Download View

    The Fund research team discusses the Portfolio, performance and how they apply the Davis Investment Discipline to uncover opportunities outside the United States.

    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, 2016.

    3See Expense ratio/Turnover link below.


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