Overview

Investment Strategy

Davis Real Estate Fund is a portfolio of durable, well-managed real estate companies selected using the time-tested Davis Investment Discipline.

The Fund seeks best-of-breed real estate businesses with first-class management that prioritize producing steadily increasing income and strong returns on capital.

The Fund offers investors the diversification of the real estate asset class

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

Fund Details as of 12/31/23

Detail Value
Long-Term Growth and Income
Total Net Assets ($M) 159.9
Benchmark Wilshire U.S. Real Estate Securities
Lipper Category Real Estate

A Shares

Detail Value
Ticker (A) RPFRX
Inception Date (A) 1/3/94
CUSIP (A) 239103302
Fund Number (A) 429
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, 2024. 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) DRECX
Inception Date (C) 8/13/97
CUSIP (C) 239103724
Fund Number (C) 829
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, 2024. 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) 1.93%

Y Shares

Detail Value
Ticker (Y) DREYX
Inception Date (Y) 11/8/96
CUSIP (Y) 239103823
Fund Number (Y) 917
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, 2024. 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. 0.72%
Gross Expense Ratio (Y) 0.72%

Fund Managers

Andrew A. Davis
38 Years Industry Experience
31 Years at Davis Funds
View Bio
E Chandler Spears
29 Years Industry Experience
23 Years at Davis Funds
View Bio

Resources

Document
PM Commentary
Factsheet

Performance as of 12/31/23

Average Annual Returns

A Shares: Quarterly (as of 12/31/23)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
A Shares
without a sales charge
10.46% 10.46% 5.05% 5.93% 6.98% 8.57%
A Shares
with a maximum 4.75% sales charge
5.21% 5.21% 3.36% 4.91% 6.47% 8.40%

The average annual total returns for Davis Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 1/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
A Shares
without a sales charge
-4.37% -3.94% 3.58% 2.73% 6.16% 8.39%
A Shares
with a maximum 4.75% sales charge
-8.91% -8.50% 1.92% 1.73% 5.65% 8.22%

The average annual total returns for Davis Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 12/31/23)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
C Shares
without CDSC
9.60% 9.60% 4.22% 5.07% 6.26% 6.79%
C Shares
with CDSC
8.60% 8.60% 4.22% 5.07% 6.26% 6.79%

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 Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 1/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
C Shares
without CDSC
-4.42% -4.67% 2.77% 1.91% 5.45% 6.59%
C Shares
with CDSC
-5.37% -5.61% 2.77% 1.91% 5.45% 6.59%

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 Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 12/31/23)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
Y Shares 10.75% 10.75% 5.30% 6.16% 7.22% 8.09%

The average annual total returns for Davis Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 1/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
Y Shares -4.35% -3.70% 3.84% 2.96% 6.40% 7.89%

The average annual total returns for Davis Real Estate Fund’s Class A shares for periods ending December 31, 2023, including a maximum 4.75% sales charge, are: 1 year, 5.21%; 5 years, 4.91%; and 10 years, 6.47%. 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, 2024.] 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 12/31/23

Portfolio Composition

Item Real Estate Fund Wilshire U.S. Real Estate Securities®
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. 38.1x 40.2x
5 Year Earnings Growth 6.6% 7.6%
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. 2.4 2.9
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. 21.3 21.1
Number of Holdings 37 88
Weighted Average Market Cap ($bn) Weighted Average Market Capitalization is the portfolio-weighted mean capitalizations of all equity securities. 31.8 41.3
Median Market Cap ($bn) Median Market Capitalization is the midpoint of market capitalization of the stocks in a portfolio. 12.4 3.7
Real Estate Fund Real Estate 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 44% and 18%, respectively. 22% 55%
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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 12/31/23)

Holding Ticker Real Estate Fund Wilshire U.S. Real Estate Securities®
Prologis PLD 6.8% 13.9%
Alexandria Real Estate Equities ARE 5.0% 2.5%
Cousins Properties CUZ 4.6% 0.4%
Brixmor Property Group BRX 4.6% 0.8%
Simon Property Group SPG 4.5% 5.2%
Public Storage PSA 4.4% 5.5%
Ventas VTR 4.1% 2.3%
Equinix EQIX 4.0% 8.5%
Digital Realty Trust DLR 3.9% 4.6%
Essex Property Trust ESS 3.8% 1.8%
Top 10 Holdings Total % of Portfolio 45.6% 45.5%

Top 10 Holdings: Monthly (as of 1/31/24)

Holding Ticker Real Estate Fund Wilshire U.S. Real Estate Securities®
Prologis PLD 6.8% 13.9%
Alexandria Real Estate Equities ARE 5.0% 2.5%
Brixmor Property Group BRX 4.7% 0.8%
Simon Property Group SPG 4.6% 5.2%
Cousins Properties CUZ 4.6% 0.4%
Public Storage PSA 4.3% 5.5%
Equinix EQIX 4.3% 8.5%
Digital Realty Trust DLR 4.2% 4.6%
Ventas VTR 4.0% 2.3%
Essex Property Trust ESS 3.5% 1.8%
Top 10 Holdings Total % of Portfolio 46.0% 45.5%

All Holdings: Quarterly (as of 12/31/23)

Holding Ticker Real Estate Fund Wilshire U.S. Real Estate Securities®
Prologis PLD 6.8% 13.9%
Alexandria Real Estate Equities ARE 5.0% 2.5%
Cousins Properties CUZ 4.6% 0.4%
Brixmor Property Group BRX 4.6% 0.8%
Simon Property Group SPG 4.5% 5.2%
Public Storage PSA 4.4% 5.5%
Ventas VTR 4.1% 2.3%
Equinix EQIX 4.0% 8.5%
Digital Realty Trust DLR 3.9% 4.6%
Essex Property Trust ESS 3.8% 1.8%
AvalonBay Communities AVB 3.7% 3.0%
Welltower WELL 3.5% 5.3%
American Tower AMT 3.4%
Terreno Realty TRNO 3.3% 0.6%
Boston Properties BXP 3.0% 1.3%
Sunstone Hotel Investors SHO 2.5% 0.3%
American Homes 4 Rent AMH 2.5% 1.4%
Equity Residential EQR 2.5% 2.6%
Rexford Industrial Realty REXR 2.5% 1.3%
Regency Centers REG 2.2% 1.4%
Retail Opportunity Investments ROIC 2.1% 0.2%
UDR UDR 2.1% 1.4%
Extra Space Storage EXR 1.9% 3.8%
Hudson Pacific Properties HPP 1.8% 0.1%
Sun Communities SUI 1.8% 1.8%
Federal Realty Investment Trust FRT 1.7% 0.9%
Community Healthcare Trust CHCT 1.6%
VICI Properties VICI 1.4%
Camden Property Trust CPT 1.4% 1.2%
Healthpeak Properties PEAK 1.4% 1.2%
Crown Castle CCI 1.3%
SL Green Realty SLG 1.1% 0.3%
Douglas Emmett DEI 1.0% 0.3%
Derwent London DLN LN 1.0%
Highwoods Properties HIW 1.0% 0.3%
CubeSmart CUBE 1.0% 1.2%
Great Portland Estates GPE LN 0.8%
Cash 0.9%

All Holdings: Monthly (as of 1/31/24)

Holding Ticker Real Estate Fund Wilshire U.S. Real Estate Securities®
Prologis PLD 6.8% 13.9%
Alexandria Real Estate Equities ARE 5.0% 2.5%
Brixmor Property Group BRX 4.7% 0.8%
Simon Property Group SPG 4.6% 5.2%
Cousins Properties CUZ 4.6% 0.4%
Public Storage PSA 4.3% 5.5%
Equinix EQIX 4.3% 8.5%
Digital Realty Trust DLR 4.2% 4.6%
Ventas VTR 4.0% 2.3%
Essex Property Trust ESS 3.5% 1.8%
Welltower WELL 3.5% 5.3%
AvalonBay Communities AVB 3.4% 3.0%
Terreno Realty TRNO 3.3% 0.6%
American Tower AMT 3.2%
Boston Properties BXP 3.0% 1.3%
Sunstone Hotel Investors SHO 2.7% 0.3%
American Homes 4 Rent AMH 2.6% 1.4%
Equity Residential EQR 2.6% 2.6%
Rexford Industrial Realty REXR 2.5% 1.3%
Regency Centers REG 2.2% 1.4%
Retail Opportunity Investments ROIC 2.2% 0.2%
UDR UDR 2.1% 1.4%
Camden Property Trust CPT 1.9% 1.2%
Extra Space Storage EXR 1.8% 3.8%
Sun Communities SUI 1.7% 1.8%
Federal Realty Investment Trust FRT 1.7% 0.9%
Hudson Pacific Properties HPP 1.7% 0.1%
Community Healthcare Trust CHCT 1.7%
VICI Properties VICI 1.4%
Crown Castle CCI 1.3%
Healthpeak Properties PEAK 1.3% 1.2%
SL Green Realty SLG 1.1% 0.3%
Douglas Emmett DEI 1.0% 0.3%
Highwoods Properties HIW 1.0% 0.3%
Derwent London DLN LN 1.0%
CubeSmart CUBE 0.9% 1.2%
Great Portland Estates GPE LN 0.8%
Cash 0.4%

Industry Diversification

Industry Percentage
Specialized REITs 21.4%
Office REITs 19.5%
Residential REITs 17.9%
Retail REITs 15.2%
Industrial REITs 12.8%
Health Care REITs 10.6%
Hotel & Resort REITs 2.6%

Geographic Diversification

Region Percentage
Pacific 38%
Northeast Central 16%
South Atlantic 13%
Mid Atlantic 8%
Mountain 8%
Southeast Central 7%
New England 6%
Non-U.S. 2%
Southwest Central 2%
Northwest Central

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. December 2023
Portfolio Composition Quarterly update of portfolio characteristics. December 31, 2023

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 3/28/23 3/29/23 3/30/23 1.09% 0.18 - - - 37.45
6/26/23 6/27/23 6/28/23 1.09% 0.18 - - - 38.59
9/26/23 9/27/23 9/28/23 1.09% 0.18 - - - 35.80
12/26/23 12/27/23 12/28/23 1.09% 0.40 - - - 41.92
Class C 3/28/23 3/29/23 3/30/23 1.09% 0.1045 - - - 37.46
6/26/23 6/27/23 6/28/23 1.09% 0.1079 - - - 38.60
9/26/23 9/27/23 9/28/23 1.09% 0.1065 - - - 35.81
12/26/23 12/27/23 12/28/23 1.09% 0.33 - - - 41.92
Class Y 3/28/23 3/29/23 3/30/23 1.09% 0.208 - - - 38.00
6/26/23 6/27/23 6/28/23 1.09% 0.207 - - - 39.16
9/26/23 9/27/23 9/28/23 1.09% 0.2075 - - - 36.32
12/26/23 12/27/23 12/28/23 1.09% 0.429 - - - 42.53

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.