Davis Real Estate Fund


    Investment Strategy

    The goal of the Davis Real Estate Fund is to provide investors access to attractive investment opportunities in companies related to the real estate industry.

    The Fund applies our signature Davis Investment Discipline to real estate, seeking companies with first-class management teams who view real estate as a means of producing steadily increasing income and strong returns on capital.

    Why Invest in the Davis Real Estate Fund

    Increased Portfolio Diversification

    The Fund offers investors a good way to increase the diversification of their portfolios. Real estate securities have historically shown a lower sensitivity to price movements (beta) than broad stock market averages. At the same time, real estate returns over the long term have been comparable to those of equities, but not correlated with them (R-squared).1

    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.2

    Lower than Average Expense Ratio4

    Davis Real Estate Fund A, 0.98%; Lipper category average, 1.13%

    Performance as of 9/30/20

    The charts below illustrate the long-term performance and diversification attributes of the Davis Real Estate Fund.

    Attractive Total Return Potential
    January 3, 1994 - September 30, 2020

    10 year US Treasury is represented by the Citi 10 Year U.S. Treasury index. Inflation is represented by the Consumer Price Index.

    Low Correlation to Common Stocks
    Period Ending September 30, 2020/R-Squared

    Source: Wilshire Atlas Monitor Report (9/15 - 9/20)

    Annualized Total Returns

    Total Returns
    as of September 30, 2020
    YTD* 1
    Davis Real Estate Fund Class A Shares
    without a sales charge
    -18.04% -18.72% 0.32% 4.64% 7.00% 4.32% 7.74% 8.60%
    with a maximum 4.75% sales charge -21.93% -22.58% -1.29% 3.64% 6.49% 3.99% 7.48% 8.40%
    S&P 500® Index 5.57% 15.15% 12.27% 14.13% 13.73% 9.19% 6.42% 9.80%

    *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 total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.98%. 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 9/30/20

    Portfolio Composition

    Real Estate Fund
    Forecast P/E Ratio 41.7
    P/B Ratio 3.0
    Weighted Average Market Cap ($bn) 22.9
    Beta (3 year) 1.0
    Standard Deviation (5 year, A shares) 16.0
    Number of Holdings 37

    Turnover and Expenses

    Real Estate Fund Lipper Category Average
    Turnover Rate4 18% 67%
    Expense Ratio4 0.98% 1.13%

    Top 10 Holdings

    Prologis 7.7%
    Equinix 5.8%
    Public Storage 5.2%
    Rexford Industrial Realty 4.6%
    Welltower 4.6%
    Terreno Realty 4.2%
    Alexandria Real Estate Equities 3.9%
    Essex Property Trust 3.5%
    Crown Castle International 3.4%
    CyrusOne 3.1%

    Click here for month-end holdings.
    Click here for quarter-end holdings.
    Click here for N-PORT Schedule of Portfolio Holdings.

    Sector Diversification

    Specialized 27%
    Industrial 18%
    Residential 16%
    Office 16%
    Health Care 10%
    Retail 9%
    Hotel & Resort 4%


    Fact Sheet
    Fund Fact Sheet Download

    Applying the Davis Investment Discipline to real estate-related businesses, potential asset allocation benefits for investors, Portfolio characteristics, holdings, performance, and more.

    Portfolio Composition Download

    Quarterly update of portfolio characteristics.

    Portfolio Manager Commentary
    Manager Commentary - Semi-Annual Review 2020 Download View

    Portfolio Managers Andrew Davis and Chandler Spears discuss the real estate market, Portfolio companies, and recent performance.

    Portfolio Manager Special Update - March 2020 Download View

    How the strong balance sheets and durable competitive advantages of the companies of Davis Real Estate Fund are helping them navigate these challenging times, and why we believe well-capitalized financials are significantly mispriced currently.

    This material must be accompanied or preceded by a current Davis Real Estate 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.

    1Diversification does not insure against loss.

    2As of June 30, 2020. This includes Davis Advisors, the Davis family and Foundation, our employees, and Fund Directors.

    4See Expense ratio/Turnover link below.

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