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 3/31/24

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%

Fund Manager

Creston A. King
38 Years Industry Experience
25 Years at Davis Funds
View Bio

Resources

Document
Factsheet

Performance as of 3/31/24

Total Returns – A Shares

Type 1 YR 5 YR 10 YR 15 YR 20 YR 25 YR
Avg. Annual - Without a Sales Charge 3.41% 0.30% 0.41% 0.64% 1.18% 1.86%
Avg. Annual - With a Maximum 4.75% Sales Charge -1.50% -0.67% -0.08% 0.32% 0.94% 1.66%
Cumulative - Without a Sales Charge 3.41% 1.51% 4.14% 10.08% 26.55% 58.58%
Cumulative - With a Maximum 4.75% Sales Charge -1.50% -3.31% -0.81% 4.84% 20.53% 51.04%

The average annual total returns for Davis Government Bond Fund’s Class A shares for periods ending March 31, 2024, including a maximum 4.75% sales charge, are: 1 year, -1.50%; 5 years, -0.67%; and 10 years, -0.08%. 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.

Portfolio Characteristics as of 3/31/24

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. 4.73%
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. 3.03%
Dividend Paid Monthly
Last Distribution $0.012761
Last 12 Month Distribution $0.138712

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/​Issuer Ticker/​CUSIP Government Bond Fund
GNMA 38380QZG0 10.5%
GNMA 38382YKU6 9.1%
FNMA 3140HRSX2 8.3%
GNMA 38382YMF7 7.6%
GNMA 38376RXN1 6.4%
FNMA 3140NHWD6 5.0%
GNMA 38382TV27 3.9%
GNMA 38375BQS4 3.9%
FNMA 31398F6G1 3.3%
GNMA 3617AQCV9 3.0%
Top 10 Holdings Total % of Portfolio 60.9%

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

Holding/​Issuer Ticker/​CUSIP Government Bond Fund
GNMA 38380QZG0 10.6%
GNMA 38382YKU6 8.5%
FNMA 3140HRSX2 8.4%
GNMA 38382YMF7 7.5%
GNMA 38376RXN1 6.0%
FHLMC 31288Q4V9 5.6%
FNMA 3140NHWD6 4.6%
GNMA 38382TV27 3.8%
GNMA 38375BQS4 3.6%
FNMA 31398F6G1 3.2%
Top 10 Holdings Total % of Portfolio 61.9%

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

Holding/​Issuer Ticker/​CUSIP Government Bond Fund
GNMA 38380QZG0 10.5%
GNMA 38382YKU6 9.1%
FNMA 3140HRSX2 8.3%
GNMA 38382YMF7 7.6%
GNMA 38376RXN1 6.4%
FNMA 3140NHWD6 5.0%
GNMA 38382TV27 3.9%
GNMA 38375BQS4 3.9%
FNMA 31398F6G1 3.3%
GNMA 3617AQCV9 3.0%
GNMA 38375UPC8 2.7%
GNMA 38380JXK9 2.5%
GNMA 3617MVSD8 2.1%
Small Business Administration 83165BDY5 2.0%
FHLMC 3128MMVD2 2.0%
FNMA 3136ANEQ6 1.9%
GNMA 38380LD26 1.7%
GNMA 38376RQX7 1.7%
GNMA 38379U7M2 1.4%
FNMA 31418ADQ8 1.1%
FNMA 3136AABG9 1.1%
FNMA 31398NEX8 1.1%
FHLMC 3137B5UL5 0.8%
FNMA 3138YBYF4 0.8%
Small Business Administration 83164M2X6 0.7%
FNMA 3136AW4X2 0.7%
FNMA 3138EQE81 0.6%
FHLMC 3132G0B82 0.6%
FHLMC 3137B2J68 0.6%
Small Business Administration 83164M2S7 0.6%
FNMA 31397SMT8 0.6%
GNMA 38379KVK1 0.5%
FHLMC 3137B73G2 0.4%
FHLMC 3137A2C74 0.4%
GNMA 38379XH86 0.3%
GNMA 38378GRM2 0.3%
FNMA 31397QNV6 0.1%
GNMA 38376P3M0 0.1%
FNMA 31410GNM1 0.1%
FHLMC 3137ABT84 0.1%
GNMA 38376G5M8 0.1%
FNMA 31396WL20 0.1%
FNMA 31389TQW5 < 0.1%
Cash 9.6%

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

Holding/​Issuer Ticker/​CUSIP Government Bond Fund
GNMA 38380QZG0 10.6%
GNMA 38382YKU6 8.5%
FNMA 3140HRSX2 8.4%
GNMA 38382YMF7 7.5%
GNMA 38376RXN1 6.0%
FHLMC 31288Q4V9 5.6%
FNMA 3140NHWD6 4.6%
GNMA 38382TV27 3.8%
GNMA 38375BQS4 3.6%
FNMA 31398F6G1 3.2%
GNMA 3617AQCV9 2.8%
GNMA 38375UPC8 2.7%
GNMA 38380JXK9 2.5%
FHLMC 3128MMVD2 1.9%
Small Business Administration 83165BDY5 1.9%
GNMA 3617MVSD8 1.8%
FNMA 3136ANEQ6 1.7%
GNMA 38380LD26 1.6%
GNMA 38379U7M2 1.4%
GNMA 38376RQX7 1.4%
FNMA 31418ADQ8 1.1%
FNMA 3136AABG9 1.1%
FNMA 31398NEX8 1.0%
FHLMC 3137B5UL5 0.8%
FNMA 3138YBYF4 0.8%
Small Business Administration 83164M2X6 0.7%
FNMA 3136AW4X2 0.7%
FHLMC 3132G0B82 0.6%
Small Business Administration 83164M2S7 0.6%
FNMA 3138EQE81 0.6%
FHLMC 3137B2J68 0.5%
GNMA 38379KVK1 0.5%
FNMA 31397SMT8 0.5%
FHLMC 3137A2C74 0.4%
FHLMC 3137B73G2 0.4%
GNMA 38379XH86 0.3%
GNMA 38378GRM2 0.2%
GNMA 38376P3M0 0.1%
FNMA 31410GNM1 0.1%
FNMA 31397QNV6 0.1%
GNMA 38376G5M8 0.1%
FHLMC 3137ABT84 0.1%
FNMA 31396WL20 0.1%
FNMA 31389TQW5 < 0.1%
Cash 7.2%

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

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 12/08/23

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 Monthly - - - -
Class C 12/7/23 12/8/23 12/11/23 Monthly - - - -
Class Y 12/7/23 12/8/23 12/11/23 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 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.