Davis International Fund

    Overview

    Fund Statistics (Class A)

    Inception Date 12/29/06
    Expense Ratio 1.05%
    Turnover Rate 5%

    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 in funds and other accounts following the same investment strategy, we experience the same risks and reap the same rewards.1

    Lower than Average Expense Ratio3

    Davis International Fund A, 1.05%; Lipper category average, 1.03%

    Lower than Average Turnover Rate3

    Davis International Fund, 5%; Lipper category average, 42%



    Selective Attractive Growth Undervalued

    DIF invests in only a select group of well-researched companies

    DIF portfolio companies have grown faster than the Index

    DIF portfolio companies are 16% less expensive than the index

    Holdings**

    5-Year EPS Growth**

    P/E (Forward)**
    2259
    24
    DIF
    MSCI ACWI
    ex US
    11.5%
    11.1%
    DIF
    MSCI ACWI
    ex US
    10.2x
    12.1x
    DIF
    MSCI ACWI
    ex US

       “The companies of Davis International Fund have grown faster than the companies in the index, yet are 16% less expensive.

    In fact, this gap between price and value is among the widest we have ever seen.

    We believe this sets the stage for attractive returns in the years ahead.”

    - Portfolio Manager Danton Goei

    Performance as of 12/31/22

    Total Returns
    as of December 31, 2022    		 YTD* 1
    Year    		 3
    Years    		 5
    Years    		 10
    Years    		 Since
    12/29/06
    Davis International Fund Class A shares
    without a sales charge     		-11.47% -11.47% -5.37% -3.26% 3.12% 1.51%
    with a maximum 4.75% sales charge -15.67% -15.67% -6.89% -4.20% 2.62% 1.21%
    MSCI ACWI® - ex U.S. -16.00% -16.00% 0.07% 0.88% 3.80% 2.40%

    *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 12/31/22

    Geographical Diversification

    Asia 58.5%
    Europe 26.5%
    North & Central America 10.0%
    Africa 5.0%

    Top 10 Countries

    China
    South Korea
    Denmark
    Singapore
    Hong Kong
    Switzerland
    Netherlands
    South Africa
    Bermuda
    Canada

    Top 10 Holdings

    Danske Bank Denmark Largest bank in Denmark that is well-capitalized yet is trading below book value due to what we believe are temporary headwinds  9.3%
    DBS Group Holdings Singapore Largest bank in Singapore and among the largest in developed Asia 8.2%
    AIA Group Hong Kong 2nd largest life insurer in China with operations throughout Asia-Pacific offering financial services to a large, under-penetrated addressable market  7.5%
    Ping An Insurance China A leader in retail financial services and the largest insurer in Asia 6.6%
    JD.com China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances 6.2%
    Samsung Electronics South Korea Among the world’s largest semiconductor companies - a global market leader in wireless handsets, TVs, flat panel displays and memory components. 6.0%
    Julius Baer Group Switzerland A premier private bank serving ultrahigh net worth clients 5.8%
    Prosus Netherlands A global consumer internet company and spin-off of South African e-commerce group, Naspers 5.1%
    Naspers 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 5.0%
    Meituan China A web-based shopping platform for locally sourced consumer products and retail services in China 4.9%

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


    Top 5 Industries

    Retailing 25.8%
    Banks 23.7%
    Insurance 14.1%
    Information Technology 13.0%
    Diversified Financials 6.5%

    Portfolio Composition

    International
    Fund    		 MSCI ACWI®
    ex USA
    Number of Holdings 24 2,259
    Median Market Cap ($bn) 28.5 7.9
    Weighted Average Market Cap ($bn) 74.4 77.5
    Forecast P/E Ratio 10.2 12.1

    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.
    Insights Into the Fund
    Davis International Fund: Selective. Attractive Growth. Undervalued. Download

    Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination.
    Portfolio Manager Commentaries
    Manager Commentary - Annual Review 2023 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.

    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, 2022. This includes Davis Advisors, the Davis family and Foundation, our employees, and Fund Directors.

    3See Expense ratio/Turnover link below.

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

    ** The Attractive Growth and Undervalued reference relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. Past performance is not a guarantee of future returns. Performance may vary. Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The values for the portfolio and index are the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio or index. Forward Price/Earnings (Forward P/E) Ratio is a stock’s current price divided by the company’s forecasted earnings for the following 12 months. The values for the portfolio and index are the weighted average of the P/E ratios of the stocks in the portfolio or index.

    (10) Read here for objective/risk disclosures

    (11) Read here for Expense ratio/Turnover disclosures

    (13) Read here for index definition

    (9) Read here for additional disclosures

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