Overview

Investment Strategy

The goal of the Fund is to offer investors access to some of the most attractive companies in the Financial sector.

The Fund applies our signature Davis Investment Discipline to seek financial companies with competitive advantages, strong balance sheets, solid free cash flows, earnings growth potential, and proven outstanding management.

The Fund has outperformed the S&P 500 and S&P 500 Financial Index since its inception in 1991.

We are one of the largest shareholders in the Fund. We experience the same risks and reap the same rewards as our shareholders.

Selective Attractive Growth Undervalued

Financial Fund invests in only a select group of well-researched companies

Financial Fund's portfolio companies have offered attractive growth The Attractive Growth and Undervalued reference in this piece relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund’s performance will be positive as equity markets are volatile and an investor may lose money.

Financial Fund's portfolio companies are 26% less expensive than the index

Holdings The number of holdings in the Fund excluding cash positions. EPS Growth (5 Year) Five-year EPS Growth Rate (5-year EPS) is the average annualized earnings per share growth for a company over the past 5 years. The values shown are the weighted average of the 5-year EPS of the stocks in the Fund or Index. Approximately 8.27% of the assets of the Fund are not accounted for in the calculation of 5-year EPS as relevant information on certain companies is not available to the Fund’s data provider. P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Fund’s data provider. These values for both the Fund and the Index are the weighted average of the stocks in the portfolio or index.
71
24
12.4%
10.3%
12.0x
16.2x
Fund
S&P 500 Financials
The companies of Davis Financial Fund have grown more than the companies in the index, yet are 26% less expensive.

Fund Details as of 3/31/24

Detail Value
Long-Term Capital Appreciation
Total Net Assets ($M) 880.8
Benchmark S&P 500
Lipper Category Financial Services

A Shares

Detail Value
Ticker (A) RPFGX
Inception Date (A) 5/1/91
CUSIP (A) 239103500
Fund Number (A) 438
Net Expense Ratio (A) Davis Selected Advisers, L.P. 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, 1.00%; Class C Shares, 1.75%; and Class Y Shares, 0.75%). The Adviser is obligated to continue the expense cap through May 1, 2025. The expense cap cannot be modified prior to this date without the consent of the Board of Directors. After that date, there is no assurance that the Adviser will continue to cap expenses. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund. As of the most recent prospectus. 0.95%
Gross Expense Ratio (A) 0.95%

C Shares

Detail Value
Ticker (C) DFFCX
Inception Date (C) 8/12/97
CUSIP (C) 239103740
Fund Number (C) 838
Net Expense Ratio (C) Davis Selected Advisers, L.P. 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, 1.00%; Class C Shares, 1.75%; and Class Y Shares, 0.75%). The Adviser is obligated to continue the expense cap through May 1, 2025. The expense cap cannot be modified prior to this date without the consent of the Board of Directors. After that date, there is no assurance that the Adviser will continue to cap expenses. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund. As of the most recent prospectus. 1.74%
Gross Expense Ratio (C) 1.74%

Y Shares

Detail Value
Ticker (Y) DVFYX
Inception Date (Y) 3/10/97
CUSIP (Y) 239103815
Fund Number (Y) 915
Net Expense Ratio (Y) Davis Selected Advisers, L.P. 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, 1.00%; Class C Shares, 1.75%; and Class Y Shares, 0.75%). The Adviser is obligated to continue the expense cap through May 1, 2025. The expense cap cannot be modified prior to this date without the consent of the Board of Directors. After that date, there is no assurance that the Adviser will continue to cap expenses. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund. As of the most recent prospectus. 0.73%
Gross Expense Ratio (Y) 0.73%

Returns from Inception as of 3/31/24

Item Value
A Shares (Average Annual Return, without a sales charge) 11.23%
S&P 500 Financials 9.50%

Fund Managers

Chris C. Davis
36 Years Industry Experience
35 Years at Davis Funds
View Bio
Pierce B.T. Crosbie
23 Years Industry Experience
15 Years at Davis Funds
View Bio

Resources

Document
PM Commentary
Factsheet

Featured PM Videos

Performance as of 3/31/24

Growth of $10,000 (Class A Shares since Inception, without a sales charge)

Using our signature Davis Investment Discipline, the Davis Financial Fund has outperformed the S&P 500® Financial Index since its inception in 1991: A hypothetical $10,000 investment has compounded to $332,895 vs. only $198,589 for the Index.

Financial Fund
S&P 500 Financials

Average Annual Returns

A Shares: Quarterly (as of 3/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
A Shares
without a sales charge
10.72% 32.55% 9.15% 11.16% 9.68% 11.23%
A Shares
with a maximum 4.75% sales charge
5.46% 26.25% 7.40% 10.10% 9.16% 11.07%

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

A Shares: Monthly (as of 5/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
A Shares
without a sales charge
12.65% 38.56% 6.05% 11.56% 9.62% 11.23%
A Shares
with a maximum 4.75% sales charge
7.30% 31.98% 4.35% 10.50% 9.10% 11.07%

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

C Shares: Quarterly (as of 3/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
C Shares
without CDSC
10.49% 31.51% 8.29% 10.29% 8.98% 7.37%
C Shares
with CDSC
9.49% 30.51% 8.29% 10.29% 8.98% 7.37%

Class C shares automatically convert to Class A shares after eight years. Class C shares’ performance for the periods exceeding eight years include the first eight years of Class C share performance and Class A share performance thereafter.

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

C Shares: Monthly (as of 5/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
C Shares
without CDSC
12.28% 37.46% 5.22% 10.69% 8.92% 7.39%
C Shares
with CDSC
11.28% 36.46% 5.22% 10.69% 8.92% 7.39%

Class C shares automatically convert to Class A shares after eight years. Class C shares’ performance for the periods exceeding eight years include the first eight years of Class C share performance and Class A share performance thereafter.

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

Y Shares: Quarterly (as of 3/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
Y Shares 10.78% 32.86% 9.39% 11.41% 9.92% 8.35%

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

Y Shares: Monthly (as of 5/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
Y Shares 12.75% 38.85% 6.29% 11.81% 9.86% 8.37%

The average annual total returns for Davis Financial Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, 26.25%; 5 years, 10.10%; and 10 years, 9.16%. 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. For most recent month-end performance, visit davisfunds.com or call 800-279-0279. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.95%. [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 of Class A shares at 1.00%. The expense cap expires May 1, 2025.] The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

Portfolio Characteristics as of 3/31/24

Portfolio Composition

Item Financial Fund S&P 500 Financials®
P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Fund’s data provider. These values for both the Fund and the Index are the weighted average of the stocks in the portfolio or index. 12.0x 16.2x
5 Year Earnings Growth 12.4% 10.3%
P/B Ratio Price/Book (P/B) Ratio is the weighted average of the P/B ratios of the stocks in a portfolio. The P/B ratio of a stock is calculated by dividing the current price of the stock by the company’s per share book value. Stocks with negative book values are excluded for this calculation. 1.7 2.4
Standard Deviation (5 year, A Shares) Standard Deviation is a measure of the average deviations of a return series from its mean; often used as a risk measure. A large standard deviation implies that there have been large swings or volatility in the manager’s return series. 24.3 23.1
Number of Holdings 24 71
Weighted Average Market Cap ($bn) Weighted Average Market Capitalization is the portfolio-weighted mean capitalizations of all equity securities. 132.8 259.1
Median Market Cap ($bn) Median Market Capitalization is the midpoint of market capitalization of the stocks in a portfolio. 50.0 43.5
Financial Fund Financial Services Category Average
Turnover Rate Turnover Rate is a measure of the trading activity in a mutual fund’s investment portfolio that reflects how often securities are bought and sold. These amounts are as of the most recent prospectus. Over the last five years, the high and low turnover rate was 10% and 2%, respectively. 2% 62%
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Portfolio Holdings The information provided should not be considered a recommendation to buy, sell or hold any particular security. 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. Holding percentages are subject to change.

Top 10 Holdings: Quarterly (as of 3/31/24)

Holding Ticker Financial Fund S&P 500 Financials®
Capital One Financial COF 11.2% 1.0%
Wells Fargo WFC 9.0% 3.6%
JPMorgan Chase JPM 7.7% 10.0%
Bank of New York Mellon BK 6.1% 0.8%
Fifth Third Bancorp FITB 5.8% 0.4%
Berkshire Hathaway BRK A 5.8% 13.2%
Chubb CB 5.3% 1.8%
U.S. Bancorp USB 5.2% 1.2%
Markel Group MKL 5.1%
PNC Financial Services Group PNC 4.8% 1.1%
Top 10 Holdings Total % of Portfolio 65.9% 33.1%

Top 10 Holdings: Monthly (as of 5/31/24)

Holding Ticker Financial Fund S&P 500 Financials®
Capital One Financial COF 9.9% 0.9%
Wells Fargo WFC 8.9% 3.8%
JPMorgan Chase JPM 7.5% 10.3%
Bank of New York Mellon BK 6.1% 0.8%
Fifth Third Bancorp FITB 5.6% 0.5%
Berkshire Hathaway BRK A 5.5% 13.2%
Chubb CB 5.3% 1.9%
Markel Group MKL 5.2%
U.S. Bancorp USB 4.5% 1.1%
PNC Financial Services Group PNC 4.5% 1.1%
Top 10 Holdings Total % of Portfolio 62.8% 33.5%

All Holdings: Quarterly (as of 3/31/24)

Holding Ticker Financial Fund S&P 500 Financials®
Capital One Financial COF 11.2% 1.0%
Wells Fargo WFC 9.0% 3.6%
JPMorgan Chase JPM 7.7% 10.0%
Bank of New York Mellon BK 6.1% 0.8%
Fifth Third Bancorp FITB 5.8% 0.4%
Berkshire Hathaway BRK A 5.8%
Chubb CB 5.3% 1.8%
U.S. Bancorp USB 5.2% 1.2%
Markel Group MKL 5.1%
PNC Financial Services Group PNC 4.8% 1.1%
Julius Baer Group BAER SE 4.5%
American Express AXP 4.3% 2.3%
Danske Bank DANSKE DC 4.1%
DBS Group Holdings DBS SP 3.9%
Loews L 3.2% 0.3%
Bank of America BAC 2.7% 4.5%
Rocket Companies RKT 2.6%
Prosus PRX NA 2.2%
DNB Bank DNB NO 1.7%
Charles Schwab SCHW 1.2% 1.9%
Bank of N.T. Butterfield & Son NTB 1.2%
Everest Group EG 1.0% 0.3%
Ping An Insurance Group 2318 HK 0.6%
Metro Bank Holdings MTRO LN 0.3%
Cash 0.7%

All Holdings: Monthly (as of 5/31/24)

Holding Ticker Financial Fund S&P 500 Financials®
Capital One Financial COF 9.9% 0.9%
Wells Fargo WFC 8.9% 3.8%
JPMorgan Chase JPM 7.5% 10.3%
Bank of New York Mellon BK 6.1% 0.8%
Fifth Third Bancorp FITB 5.6% 0.5%
Berkshire Hathaway BRK A 5.5%
Chubb CB 5.3% 1.9%
Markel Group MKL 5.2%
U.S. Bancorp USB 4.5% 1.1%
PNC Financial Services Group PNC 4.5% 1.1%
Julius Baer Group BAER SE 4.4%
American Express AXP 4.4% 2.4%
DBS Group Holdings DBS SP 4.1%
Danske Bank DANSKE DC 4.0%
Loews L 3.0% 0.2%
Bank of America BAC 2.7% 4.8%
Prosus PRX NA 2.4%
Rocket Companies RKT 2.4%
DNB Bank DNB NO 1.6%
Bank of N.T. Butterfield & Son NTB 1.2%
Charles Schwab SCHW 1.2% 1.9%
Everest Group EG 1.0% 0.3%
Ping An Insurance Group 2318 HK 0.7%
Metro Bank Holdings MTRO LN 0.3%
Cash 3.7%

Industry Allocation

Sector Financial Fund S&P 500 Financials®
Banks 46.7% 25.6%
Financial Services 35.9% 57.9%
Insurance 15.2% 16.5%
Consumer Discretionary Distrb & Retail 2.2%

PM Commentary

Portfolio Manager Commentaries

Document Description
Manager Commentary - Annual Review 2024 An interview with the Fund Managers.

Factsheet

Fact Sheets

Document Description Date
Fund Fact Sheet Goals of the Fund, types of companies in the Portfolio, top holdings, Portfolio characteristics, and historical performance. March 2024

Video

Video Insights

Video

Market Distortions Caused by Historically Low Rates

We believe that select Banks may be among the best opportunities in the market today, as investors significantly overestimate the risks and underestimate the upside potential of these durable businesses

Video

Why We Believe Select Banks are Undervalued Today

Why we believe select banks are attractive, given their durability, long-term growth, competitive advantages, growing market share and attractive valuations.

Video

“Fragile Value” & “Speculative Growth” Areas to Avoid

Identifying vulnerable companies in both the Value and Growth camps – each dangerous in their own ways

Insights

Fund Insights

Document Description
Davis Financial Fund: Selective. Attractive Growth. Undervalued. Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark - A powerful combination.
Value Investor Insight: PM Chris Davis on Financials The unrecognized opportunity in the Financial sector; thoughts on JP Morgan, Capital One and Bank of NY
Davis Financial Fund Brochure Fund’s disciplined approach to an unloved sector, and its success in compounding shareholder wealth since 1991*.

Purchase Details

Account Minimums

Investment Class A Class C Class Y
Minimum Initial Investment $1,000 $1,000 $5,000,000
Minimum Additional Investment $25 $25 $25

Distributions

2023 Distributions as of 01/08/24

This information on 2023 distributions is intended for existing shareholders

As large shareholders ourselves, we are conscious of tax costs and make every effort to be tax efficient.

Capital gains result from appreciation in the portfolio. The funds' long-term investment approach means that this appreciation may have occurred over an extended period of time. The majority of the gains are long-term and generally subject to lower tax rates than short-term gains or dividend income.

Share Class Record Date Ex-Date Payable Date Qualified Dividend Percentage Ordinary Income Return of Capital Short-term Capital Gain Long-term Capital Gain Reinvestment Price
Class A 12/7/23 12/8/23 12/11/23 100% 1.01 - - 2.56 47.99
Class C 12/7/23 12/8/23 12/11/23 100% 0.49 - - 2.56 37.11
Class Y 12/7/23 12/8/23 12/11/23 100% 1.159 - - 2.56 49.95

Shareholders should not use this information for tax reporting purposes. Form 1099 will be sent at a later date for all tax reporting.

The table above includes the percentage of 2023 dividend and net short-term capital gain distributions, by fund, that are eligible for reduced tax rates as "qualified dividend income" (QDI). QDI-eligible amounts, including any net short-term capital gains, are reported to shareholders in Box 1b of Form 1099-DIV. For those shareholders who do not receive a Form 1099-DIV, QDI-eligible amounts can be determined by applying the relevant percentages from the table to the dividend and net short-term capital gain distributions shown on the shareholder's 2023 year-end account statement. Individual questions should be referred to your tax advisor.

Carefully consider the fund's investment objectives, strategies, risks, charges and expenses before investing or sending money. The prospectus contains this and other information and can be obtained by clicking here.


Before investing in the Davis Funds, you should carefully consider the investment objectives, risks, charges, and expenses of the Funds. The prospectus and summary prospectus contains this and other information about the Funds. You can obtain performance information and a current prospectus and summary prospectus by visiting davisfunds.com or calling 800.279.0279. Please read the prospectus or summary prospectus carefully before investing or sending money. Investing involves risks including possible loss of principal.