Overview
Investment Strategy
The goal of the Davis Equity Portfolio is to provide investors access to attractive investment opportunities among large cap, durable, well-managed businesses. We seek to purchase these businesses at value prices and hold them for the long term. This approach makes the Davis Equity Portfolio an ideal foundation for an investor's portfolio.
"By being highly selective and rejecting the vast majority of companies in the index, we’ve uncovered businesses with highly attractive earnings growth, yet selling at some of the lowest valuations we have ever seen. We believe this sets the stage for attractive returns in the years ahead.”
– Portfolio Manager Chris Davis
| Selective | Attractive Growth | Undervalued |
|---|---|---|
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Equity Portfolio invests in only a select group of well-researched companies |
Equity Portfolio's portfolio companies have grown more than the index The Attractive Growth and Undervalued reference in this piece relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund’s performance will be positive as equity markets are volatile and an investor may lose money. |
Equity Portfolio's portfolio companies are 38% less expensive than the index |
| Holdings The number of holdings in the Fund excluding cash positions. | EPS Growth (5 Year) Five-year EPS Growth Rate (5-year EPS) is the average annualized earnings per share growth for a company over the past 5 years. The values shown are the weighted average of the 5-year EPS of the stocks in the Fund or Index. The 5-year EPS of the S&P 500 is 16.9%. Approximately 4.21% of the assets of the Fund are not accounted for in the calculation of 5-year EPS as relevant information on certain companies is not available to the Fund’s data provider. | 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. The Forward P/E of the S&P 500 is 23.7x. These values for both the Fund and the Index are the weighted average of the stocks in the portfolio or index. |
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Portfolio
S&P 500
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Fund Details as of 9/30/24
| Detail | Value |
|---|---|
| Long-Term Capital Appreciation | |
| Total Net Assets ($M) | 105.0 |
| Benchmark | S&P 500 |
| Category | Large Cap Core |
| Detail | Value |
|---|---|
| Ticker | QDVPAX |
| Inception Date | 7/1/99 |
| CUSIP | 239124100 |
| Fund Number | 1665 |
| Net Expense Ratio 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 at 1.00%. 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. | 0.73% |
| Gross Expense Ratio | 0.73% |
Performance
Average Annual Returns
Quarterly (as of 9/30/24)
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|---|---|---|---|---|---|---|---|
| Share Class | YTD* | 1 Yr | 3 Yr | 5 Yr | 10 Yr | Since Incep | |
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Equity Portfolio | 19.23% | 35.76% | 8.78% | 12.70% | 10.45% | 7.16% |
The average annual total returns for Davis Equity Portfolio for periods ending September 30, 2024, are: 1 year, 35.76%; 5 years, 12.70%; and 10 years, 10.45%. 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 as of the most recent prospectus was 0.73%. [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. Periods less than one year are not annualized.
Monthly (as of 10/31/24)
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| Share Class | YTD* | 1 Yr | 3 Yr | 5 Yr | 10 Yr | Since Incep | |
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Equity Portfolio | 17.63% | 37.29% | 6.97% | 11.91% | 10.13% | 7.08% |
The average annual total returns for Davis Equity Portfolio for periods ending September 30, 2024, are: 1 year, 35.76%; 5 years, 12.70%; and 10 years, 10.45%. 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 as of the most recent prospectus was 0.73%. [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. Periods less than one year are not annualized.
Portfolio Characteristics as of 9/30/24
Portfolio Composition
| Item | Equity Portfolio | S&P 500 |
|---|---|---|
| Forecast P/E | 14.7x | 23.7x |
| 5 Year Earnings Growth | 17.8% | 16.9% |
| P/B Ratio | 3.1 | 4.9 |
| Standard Deviation (5 year, A Shares) | 20.4 | 18.0 |
| Number of Holdings | 40 | 503 |
| Weighted Average Market Cap ($bn) | 373.0 | 946.2 |
| Median Market Cap | 50.6 | 38.2 |
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A video series to help you develop the mindset of a successful investor.
Watch the SeriesPortfolio 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 9/30/24)
| Holding | Ticker | Equity Portfolio | S&P 500® |
|---|---|---|---|
| Meta Platforms | META | 9.4% | 2.6% |
| Berkshire Hathaway | BRK A | 7.9% | 1.7% |
| Capital One Financial | COF | 6.8% | 0.1% |
| Applied Materials | AMAT | 5.3% | 0.3% |
| Viatris | VTRS | 4.1% | < 0.1% |
| Wells Fargo | WFC | 4.1% | 0.4% |
| MGM Resorts | MGM | 4.1% | < 0.1% |
| Amazon.com | AMZN | 3.9% | 3.6% |
| Humana | HUM | 3.8% | 0.1% |
| Alphabet | GOOGL | 3.6% | 3.7% |
| Top 10 Holdings Total % of Portfolio | 52.8% | 12.5% | |
Top 10 Holdings: Monthly (as of 10/31/24)
| Holding | Ticker | Equity Portfolio | S&P 500® |
|---|---|---|---|
| Meta Platforms | META | 9.6% | 2.6% |
| Berkshire Hathaway | BRK A | 8.0% | 1.7% |
| Capital One Financial | COF | 7.6% | 0.1% |
| Applied Materials | AMAT | 4.9% | 0.3% |
| Wells Fargo | WFC | 4.9% | 0.5% |
| Viatris | VTRS | 4.2% | < 0.1% |
| Amazon.com | AMZN | 4.0% | 3.6% |
| MGM Resorts | MGM | 4.0% | < 0.1% |
| Alphabet | GOOGL | 3.8% | 3.8% |
| Texas Instruments | TXN | 3.5% | 0.4% |
| Top 10 Holdings Total % of Portfolio | 54.5% | 13.0% | |
All Holdings: Quarterly (as of 9/30/24)
| Holding | Ticker | Equity Portfolio | S&P 500® |
|---|---|---|---|
| Meta Platforms | META | 9.4% | 2.6% |
| Berkshire Hathaway | BRK A | 7.9% | — |
| Capital One Financial | COF | 6.8% | 0.1% |
| Applied Materials | AMAT | 5.3% | 0.3% |
| Viatris | VTRS | 4.1% | < 0.1% |
| Wells Fargo | WFC | 4.1% | 0.4% |
| MGM Resorts | MGM | 4.1% | < 0.1% |
| Amazon.com | AMZN | 3.9% | 3.6% |
| Humana | HUM | 3.8% | 0.1% |
| Alphabet | GOOGL | 3.6% | 2.0% |
| Texas Instruments | TXN | 3.5% | 0.4% |
| U.S. Bancorp | USB | 2.9% | 0.2% |
| Cigna Group | CI | 2.8% | 0.2% |
| Teck Resources | TECK | 2.8% | — |
| Danske Bank | DANSKE DC | 2.7% | — |
| Owens Corning | OC | 2.2% | — |
| Tourmaline Oil | TOU CN | 2.2% | — |
| Chubb | CB | 1.7% | 0.2% |
| Markel Group | MKL | 1.7% | — |
| Solventum | SOLV | 1.7% | < 0.1% |
| Prosus | PRX NA | 1.6% | — |
| Intel | INTC | 1.6% | 0.2% |
| Bank of New York Mellon | BK | 1.6% | 0.1% |
| Samsung Electronics | 005930 KS | 1.6% | — |
| Quest Diagnostics | DGX | 1.6% | < 0.1% |
| DBS Group Holdings | DBS SP | 1.4% | — |
| Microsoft | MSFT | 1.4% | 6.6% |
| Ping An Insurance Group | 2318 HK | 1.2% | — |
| AIA Group | 1299 HK | 1.2% | — |
| JPMorgan Chase | JPM | 1.1% | 1.2% |
| Tyson Foods | TSN | 1.0% | < 0.1% |
| AGCO | AGCO | 1.0% | — |
| Coupang | CPNG | 1.0% | — |
| ConocoPhillips | COP | 0.9% | 0.3% |
| IAC | IAC | 0.9% | — |
| Trip.com Group | TCOM | 0.7% | — |
| Darling Ingredients | DAR | 0.6% | — |
| Naspers | NPN SJ | 0.3% | — |
| Orascom Construction | OC DU | 0.1% | — |
| Cash | 2.6% | — |
All Holdings: Monthly (as of 10/31/24)
| Holding | Ticker | Equity Portfolio | S&P 500® |
|---|---|---|---|
| Meta Platforms | META | 9.6% | 2.6% |
| Berkshire Hathaway | BRK A | 8.0% | — |
| Capital One Financial | COF | 7.6% | 0.1% |
| Applied Materials | AMAT | 4.9% | 0.3% |
| Wells Fargo | WFC | 4.9% | 0.5% |
| Viatris | VTRS | 4.2% | < 0.1% |
| Amazon.com | AMZN | 4.0% | 3.6% |
| MGM Resorts | MGM | 4.0% | < 0.1% |
| Alphabet | GOOGL | 3.8% | 2.1% |
| Texas Instruments | TXN | 3.5% | 0.4% |
| Humana | HUM | 3.2% | 0.1% |
| U.S. Bancorp | USB | 3.1% | 0.2% |
| Danske Bank | DANSKE DC | 2.8% | — |
| Cigna Group | CI | 2.6% | 0.2% |
| Teck Resources | TECK | 2.5% | — |
| Tourmaline Oil | TOU CN | 2.2% | — |
| Owens Corning | OC | 2.0% | — |
| Markel Group | MKL | 2.0% | — |
| Solventum | SOLV | 1.8% | < 0.1% |
| Prosus | PRX NA | 1.6% | — |
| Quest Diagnostics | DGX | 1.6% | < 0.1% |
| Chubb | CB | 1.5% | 0.2% |
| Samsung Electronics | 005930 KS | 1.5% | — |
| DBS Group Holdings | DBS SP | 1.4% | — |
| Bank of New York Mellon | BK | 1.4% | 0.1% |
| Microsoft | MSFT | 1.4% | 6.3% |
| Intel | INTC | 1.3% | 0.2% |
| Ping An Insurance Group | 2318 HK | 1.2% | — |
| JPMorgan Chase | JPM | 1.1% | 1.3% |
| AIA Group | 1299 HK | 1.1% | — |
| Coupang | CPNG | 1.0% | — |
| AGCO | AGCO | 1.0% | — |
| ConocoPhillips | COP | 1.0% | 0.3% |
| Tyson Foods | TSN | 1.0% | < 0.1% |
| CVS Health | CVS | 1.0% | 0.2% |
| Trip.com Group | TCOM | 0.8% | — |
| IAC | IAC | 0.8% | — |
| Darling Ingredients | DAR | 0.6% | — |
| Naspers | NPN SJ | 0.3% | — |
| Orascom Construction | OC DU | 0.1% | — |
| Cash | 0.6% | — |
Sector Allocation The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and S&P Global (“S&P”). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.
| Sector | Equity Portfolio | S&P 500® |
|---|---|---|
| Financials | 35.1% | 12.9% |
| Health Care | 14.3% | 11.6% |
| Communication Services | 14.2% | 8.9% |
| Information Technology | 13.7% | 31.7% |
| Consumer Discretionary | 11.8% | 10.1% |
| Industrials | 3.3% | 8.5% |
| Energy | 3.2% | 3.3% |
| Materials | 2.8% | 2.2% |
| Consumer Staples | 1.6% | 5.9% |
| Utilities | — | 2.5% |
| Real Estate | — | 2.3% |
Factsheet
Fact Sheets
| Document | Description |
|---|---|
| Portfolio Fact Sheet | Goals of the Portfolio, types of companies in the Portfolio, top holdings, Portfolio characteristics, and historical performance. |
Literature
Regulatory Reports
| Document |
|---|
| Summary Prospectus |
| Prospectus |
| Financial Statements & Other Info Items 7-11 of Form N-CSR |
| Statement of Additional Information |
| Holdings Q1 |
| Holdings Q3 |
| Proxy |
| Document |
|---|
| Annual Report |
| Document |
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| Semi-Annual Report |
Purchase Details
Open an Account
Applications
Distributions
2023 Distributions as of 02/07/24
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.
| Record Date | Ex-Date | Payable Date | Dividends Received Deduction | Ordinary Income | Return of Capital | Reinvestment Price | Short-term Capital Gain | Long-term Capital Gain |
|---|---|---|---|---|---|---|---|---|
| 12/26/23 | 12/27/23 | 12/28/23 | 53.50% | 0.085 | - | 6.25 | 0.091 | 0.588 |
This information on 2023 distributions is intended for existing shareholders.
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.
2024 Estimated Year-End Distributions Percentage of 10/31/24 NAV Price
This information on 2024 estimated year-end distributions is intended for existing shareholders. Davis New York Venture Fund also paid a semiannual capital gains distribution. No other Davis Fund paid a semiannual capital gains distribution.
As large shareholders ourselves, we are conscious of tax costs and make every effort to be tax efficient.
Capital gains result from the appreciation of companies in the portfolio. The funds’ long-term investment approach means that this appreciation may have occurred over an extended period of time. Most or all of the gains are long term and generally subject to lower tax rates than short-term gains or dividend income.
- Shareholders should not use this information for tax reporting purposes. Form 1099 will be sent at a later date for all tax reporting.
- Estimated distributions can change prior to the record date depending on current market conditions. The estimates below do not include ordinary income distributions the fund may be making.
| Record Date | Ex-Date | Payable Date | Short-term Capital Gain | Long-term Capital Gain |
|---|---|---|---|---|
| 12/26/24 | 12/27/24 | 12/30/24 | None Expected | 19% - 21% |
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.