Overview
Investment Strategy
The Davis Government Bond Fund seeks current income by investing in debt securities guaranteed or issued by the U.S. government or its agencies.
The Fund invests exclusively in U.S. treasury securities, U.S. government agency securities and U.S. government agency mortgage securities (collectively U.S. government securities) as well as repurchase agreements collateralized by U.S. government securities. Under normal circumstances the Fund’s portfolio maintains a weighted average maturity of three years or less.
The Fund’s strategy is to diversify among different types of government securities, maturity lengths, call provisions, and interest rate coupons. The Fund seeks to smooth out performance and reduce volatility in a variety of market climates.
Fund Details as of 9/30/24
| Detail | Value |
|---|---|
| Income Security of U.S. Government Bonds | |
| Total Net Assets ($M) | 17.6 |
| Benchmark | Bloomberg U.S. Government 1-3 Year Bond Index |
| Lipper Category | Short U.S. Govt |
A Shares
| Detail | Value |
|---|---|
| Ticker (A) | RFBAX |
| Inception Date (A) | 12/1/94 |
| CUSIP (A) | 239103708 |
| Fund Number (A) | 721 |
| 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. | 1.00% |
| Gross Expense Ratio (A) | 1.41% |
C Shares
| Detail | Value |
|---|---|
| Ticker (C) | DGVCX |
| Inception Date (C) | 8/19/97 |
| CUSIP (C) | 239103757 |
| Fund Number (C) | 821 |
| 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. | 1.75% |
| Gross Expense Ratio (C) | 2.81% |
Y Shares
| Detail | Value |
|---|---|
| Ticker (Y) | DGVYX |
| Inception Date (Y) | 9/1/98 |
| CUSIP (Y) | 239103799 |
| Fund Number (Y) | 913 |
| 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. | 0.75% |
| Gross Expense Ratio (Y) | 1.21% |
Performance as of 9/30/24
Total Returns – A Shares
| Type | 1 YR | 5 YR | 10 YR | 15 YR | 20 YR | 25 YR |
|---|---|---|---|---|---|---|
| Avg. Annual - Without a Sales Charge | 6.09% | 0.55% | 0.69% | 0.74% | 1.43% | 2.09% |
| Avg. Annual - With a Maximum 4.75% Sales Charge | 1.05% | -0.42% | 0.21% | 0.41% | 1.19% | 1.89% |
| Cumulative - Without a Sales Charge | 6.09% | 2.80% | 7.17% | 11.69% | 32.95% | 67.73% |
| Cumulative - With a Maximum 4.75% Sales Charge | 1.05% | -2.08% | 2.08% | 6.38% | 26.63% | 59.75% |
The average annual total returns for Davis Government Bond Fund’s Class A shares for periods ending September 30, 2024, including a maximum 4.75% sales charge, are: 1 year, 1.05%; 5 years, -0.42%; and 10 years, 0.21%. 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 1.41%. [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. Periods less than one year are not annualized.
Portfolio Characteristics as of 9/30/24
Portfolio Statistics
| Item | Government Bond Fund |
|---|---|
| 30 Day SEC Yield SEC Yield is a standardized yield figure that the Securities and Exchange Commission requires funds to use in order to calculate rates of income return on a fund’s capital investment. SEC yield is an annualized calculation that is based on a trailing 30 day period. | 4.63% |
| Weighted Average Duration Duration can measure how long it takes, in years, for an investor to be repaid a bond’s price by the bond’s total cash flows. Duration can also measure the sensitivity of a bond’s or fixed income portfolio’s price to changes in interest rates. | 2.3 Years |
| Weighted Average Life The weighted average life is the average length of time that each dollar of unpaid principal on an amortizing bond remains outstanding. | 2.8 Years |
| Current Dividend Yield The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price. | 3.49% |
| Dividend Paid | Monthly |
| Last Distribution | $0.014919 |
| Last 12 Month Distribution | $0.159311 |
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 9/30/24)
| Holding/Issuer | Ticker/CUSIP | Government Bond Fund |
|---|---|---|
| GNMA | 38380QZG0 | 10.2% |
| FNMA | 3140HRSX2 | 8.5% |
| GNMA | 38382YKU6 | 7.0% |
| GNMA | 38382YMF7 | 6.7% |
| GNMA | 38382Y5V1 | 6.6% |
| FHLMC | 31288Q4V9 | 5.3% |
| GNMA | 38376RXN1 | 4.9% |
| FNMA | 3140NHWD6 | 4.5% |
| GNMA | 38382TV27 | 3.9% |
| Small Business Administration | 8316A0FW5 | 3.8% |
| Total | 61.5% | |
Top 10 Holdings: Monthly (as of 11/30/24)
| Holding/Issuer | Ticker/CUSIP | Government Bond Fund |
|---|---|---|
| GNMA | 38380QZG0 | 10.4% |
| FNMA | 3140HRSX2 | 8.6% |
| GNMA | 38382YKU6 | 6.8% |
| GNMA | 38382YMF7 | 6.5% |
| GNMA | 38382Y5V1 | 6.3% |
| FHLMC | 31288Q4V9 | 5.0% |
| FNMA | 3140NHWD6 | 4.5% |
| GNMA | 38376RXN1 | 4.1% |
| Small Business Administration | 8316A0FW5 | 3.9% |
| GNMA | 38382TV27 | 3.8% |
| Total | 59.9% | |
All Holdings: Quarterly (as of 9/30/24)
| Holding/Issuer | Ticker/CUSIP | Government Bond Fund |
|---|---|---|
| GNMA | 38380QZG0 | 10.2% |
| FNMA | 3140HRSX2 | 8.5% |
| GNMA | 38382YKU6 | 7.0% |
| GNMA | 38382YMF7 | 6.7% |
| GNMA | 38382Y5V1 | 6.6% |
| FHLMC | 31288Q4V9 | 5.3% |
| GNMA | 38376RXN1 | 4.9% |
| FNMA | 3140NHWD6 | 4.5% |
| GNMA | 38382TV27 | 3.9% |
| Small Business Administration | 8316A0FW5 | 3.8% |
| FNMA | 31398F6G1 | 3.0% |
| GNMA | 38375BQS4 | 2.9% |
| GNMA | 38380JXK9 | 2.5% |
| GNMA | 38375UPC8 | 2.4% |
| GNMA | 3617AQCV9 | 2.3% |
| FHLMC | 3128MMVD2 | 1.8% |
| FNMA | 3136ANEQ6 | 1.6% |
| Small Business Administration | 83165BDY5 | 1.6% |
| GNMA | 38379U7M2 | 1.4% |
| GNMA | 38380LD26 | 1.4% |
| GNMA | 3617MVSD8 | 1.3% |
| FNMA | 3136AABG9 | 1.0% |
| FNMA | 31418ADQ8 | 1.0% |
| Small Business Administration | 83164MKF5 | 0.9% |
| FNMA | 31398NEX8 | 0.9% |
| GNMA | 38376RQX7 | 0.9% |
| FHLMC | 3137B5UL5 | 0.7% |
| FNMA | 3138YBYF4 | 0.7% |
| Small Business Administration | 83164M2X6 | 0.7% |
| FNMA | 3136AW4X2 | 0.7% |
| Small Business Administration | 83164M2S7 | 0.6% |
| GNMA | 38379KVK1 | 0.5% |
| FHLMC | 3132G0B82 | 0.5% |
| FNMA | 31397SMT8 | 0.4% |
| FNMA | 3138EQE81 | 0.4% |
| FHLMC | 3137B2J68 | 0.4% |
| FHLMC | 3137A2C74 | 0.3% |
| FHLMC | 3137B73G2 | 0.3% |
| GNMA | 38378GRM2 | 0.2% |
| GNMA | 38379XH86 | 0.2% |
| FNMA | 31410GNM1 | 0.1% |
| GNMA | 38376P3M0 | 0.1% |
| FNMA | 31396WL20 | 0.1% |
| FHLMC | 3137ABT84 | < 0.1% |
| FNMA | 31389TQW5 | < 0.1% |
| Cash | — | 4.4% |
All Holdings: Monthly (as of 11/30/24)
| Holding/Issuer | Ticker/CUSIP | Government Bond Fund |
|---|---|---|
| GNMA | 38380QZG0 | 10.4% |
| FNMA | 3140HRSX2 | 8.6% |
| GNMA | 38382YKU6 | 6.8% |
| GNMA | 38382YMF7 | 6.5% |
| GNMA | 38382Y5V1 | 6.3% |
| FHLMC | 31288Q4V9 | 5.0% |
| FNMA | 3140NHWD6 | 4.5% |
| GNMA | 38376RXN1 | 4.1% |
| Small Business Administration | 8316A0FW5 | 3.9% |
| GNMA | 38382TV27 | 3.8% |
| FNMA | 31398F6G1 | 3.0% |
| GNMA | 38375BQS4 | 2.7% |
| GNMA | 38380JXK9 | 2.5% |
| GNMA | 38375UPC8 | 2.3% |
| GNMA | 3617AQCV9 | 2.1% |
| FHLMC | 3128MMVD2 | 1.8% |
| FNMA | 3136ANEQ6 | 1.6% |
| Small Business Administration | 83165BDY5 | 1.6% |
| GNMA | 38379U7M2 | 1.4% |
| GNMA | 38380LD26 | 1.3% |
| GNMA | 3617MVSD8 | 1.1% |
| FNMA | 3136AABG9 | 1.0% |
| FNMA | 31418ADQ8 | 1.0% |
| Small Business Administration | 83164MKF5 | 0.9% |
| FNMA | 31398NEX8 | 0.9% |
| FHLMC | 3137B5UL5 | 0.7% |
| Small Business Administration | 83164M2X6 | 0.7% |
| FNMA | 3138YBYF4 | 0.7% |
| FNMA | 3136AW4X2 | 0.7% |
| GNMA | 38376RQX7 | 0.7% |
| Small Business Administration | 83164M2S7 | 0.5% |
| GNMA | 38379KVK1 | 0.5% |
| FHLMC | 3132G0B82 | 0.5% |
| FNMA | 31397SMT8 | 0.4% |
| FNMA | 3138EQE81 | 0.4% |
| FHLMC | 3137B2J68 | 0.4% |
| FHLMC | 3137A2C74 | 0.3% |
| FHLMC | 3137B73G2 | 0.3% |
| GNMA | 38378GRM2 | 0.2% |
| GNMA | 38379XH86 | 0.2% |
| FNMA | 31410GNM1 | 0.1% |
| GNMA | 38376P3M0 | 0.1% |
| FNMA | 31396WL20 | 0.1% |
| Cash | — | 7.4% |
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. | September 2024 |
Literature
Regulatory Reports
| Document |
|---|
| Summary Prospectus |
| Prospectus |
| Financial Statements and Other Information Items 7-11 of Form N-CSR |
| Statement of Additional Information |
| Holdings Q1 |
| Holdings Q3 |
| Proxy |
| Document |
|---|
| Annual Report |
Purchase Details
Open an Account
You can invest with Davis Funds in a number of ways:
- Speak with your Financial Advisor
- Open an account by mail by downloading the applications below
| Document |
|---|
| Application for Individuals (Joint, Trust, Custodial) |
| Application for Businesses |
|
Application for Individual Retirement Account (IRA)
Please download one of the following disclosure and custodial agreements: |
|
Application for Coverdell Education Savings Account
Please download the Coverdell Education Savings Account Disclosure and Custodial Agreement |
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
2024 Distributions as of 12/13/24
This information on 2024 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 | 12/12/24 | 12/13/24 | 12/16/24 | Monthly | - | - | - | - | |
| Class C | 12/12/24 | 12/13/24 | 12/16/24 | Monthly | - | - | - | - | |
| Class Y | 12/12/24 | 12/13/24 | 12/16/24 | Monthly | - | - | - | - |
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 2024 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 2024 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.