Davis International Fund


    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, 1.00%; Lipper category average, 1.03%

    Lower than Average Turnover Rate3

    Davis International Fund, 16%; Lipper category average, 40%

    Selective, Attractive Growth, Undervalued (as of 9/30/22)**

    Selective Holdings 24
    Attractive Growth EPS Growth (5 Year) 10.8%
    Undervalued P/E (Forward) 8.1x

    Performance as of 9/30/22

    Total Returns
    as of September 30, 2022
    YTD* 1
    Davis International Fund Class A shares
    without a sales charge
    -27.66% -28.77% -8.11% -6.24% 1.82% 0.24%
    with a maximum 4.75% sales charge -31.09% -32.16% -9.60% -7.15% 1.33% -0.06%
    MSCI ACWI® - ex U.S. -26.50% -25.17% -1.52% -0.81% 3.01% 1.58%

    *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 1.00%. 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 9/30/22

    Geographical Diversification

    Asia 60.3%
    Europe 26.6%
    North & Central America 8.7%
    Africa 4.4%

    Top 10 Countries

    South Korea
    Hong Kong
    South Africa

    Top 10 Holdings

    DBS Group Holdings Singapore Largest bank in Singapore and among the largest in developed Asia 9.7%
    JD.com China One of the largest e-commerce businesses in mainland China offering a range of goods such as consumer electronics and appliances 7.6%
    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  6.9%
    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  6.5%
    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. 5.9%
    Ping An Insurance China A leader in retail financial services and the largest insurer in Asia 5.8%
    DNB Norway Largest financial institution and oldest private bank in Norway 5.5%
    Meituan China A web-based shopping platform for locally sourced consumer products and retail services in China 5.3%
    Julius Baer Group Switzerland A premier private bank serving ultrahigh net worth clients 5.0%
    Bank of N.T. Butterfield & Son Bermuda Local leader in Bermuda in community lending as well as trust services for reinsurers globally 5.0%

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

    Top 5 Industries

    Banks 27.4%
    Retailing 26.9%
    Information Technology 13.5%
    Insurance 12.2%
    Diversified Financials 5.7%

    Portfolio Composition

    ex USA
    Number of Holdings 24 2,272
    Median Market Cap ($bn) 25.6 7.0
    Weighted Average Market Cap ($bn) 62.6 68.2
    Forecast P/E Ratio 8.1 11.2


    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 - Semi-Annual Review 2022 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, 2021. 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.

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