Overview
Investment Strategy
The goal of the Portfolio is to offer investors access to some of the most attractive companies in the Financial sector.
The Portfolio applies our signature Davis Investment Discipline to seek financial companies with competitive advantages, strong balance sheets, solid free cash flows, earnings growth potential, and proven outstanding management.
The Portfolio has outperformed the S&P500 Financial Index since its inception in 1991.
We are one of the largest shareholders in the Fund. We experience the same risks and reap the same rewards as our shareholders.
| Selective | Attractive Growth | Undervalued |
|---|---|---|
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Financial Portfolio invests in only a select group of well-researched companies |
Financial 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. |
Financial Portfolio's portfolio companies are 26% 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 Financial is 14.4%. Approximately 9.16% 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 Financial is 16.8x. 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 Financial
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Fund Details as of 9/30/24
| Detail | Value |
|---|---|
| Long-Term Capital Appreciation | |
| Total Net Assets ($M) | 55.8 |
| Benchmark | S&P 500 |
| Category | Financial Services |
| Detail | Value |
|---|---|
| Ticker | QDFPAX |
| Inception Date | 7/1/99 |
| CUSIP | 239124308 |
| Fund Number | 1667 |
| 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. | 0.78% |
| Gross Expense Ratio | 0.78% |
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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Financial Portfolio | 22.36% | 41.54% | 9.89% | 11.63% | 10.35% | 6.96% |
The average annual total returns for Davis Financial Portfolio for periods ending September 30, 2024, are: 1 year, 41.54%; 5 years, 11.63%; and 10 years, 10.35%. 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 0.78%. [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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Financial Portfolio | 25.34% | 48.71% | 8.77% | 11.67% | 10.26% | 7.04% |
The average annual total returns for Davis Financial Portfolio for periods ending September 30, 2024, are: 1 year, 41.54%; 5 years, 11.63%; and 10 years, 10.35%. 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 0.78%. [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 | Financial Portfolio | S&P 500 Financial |
|---|---|---|
| Forecast P/E | 12.4x | 16.8x |
| 5 Year Earnings Growth | 15.2% | 14.4% |
| P/B Ratio | 1.9 | 2.7 |
| Standard Deviation (5 year, A Shares) | 23.6 | 22.5 |
| Number of Holdings | 25 | 72 |
| Weighted Average Market Cap ($bn) | 131.2 | 271.3 |
| Median Market Cap | 53.0 | 46.0 |
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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 | Financial Portfolio | S&P 500 Financial® |
|---|---|---|---|
| Capital One Financial | COF | 10.0% | 0.9% |
| Wells Fargo | WFC | 8.0% | 3.1% |
| JPMorgan Chase | JPM | 7.2% | 9.5% |
| Bank of New York Mellon | BK | 6.8% | 0.8% |
| Fifth Third Bancorp | FITB | 5.9% | 0.5% |
| Chubb | CB | 5.4% | 1.7% |
| Berkshire Hathaway | BRK A | 5.0% | 13.4% |
| U.S. Bancorp | USB | 4.9% | 1.1% |
| PNC Financial Services Group | PNC | 4.9% | 1.2% |
| Markel Group | MKL | 4.8% | — |
| Top 10 Holdings Total % of Portfolio | 62.8% | 32.2% | |
Top 10 Holdings: Monthly (as of 10/31/24)
| Holding | Ticker | Financial Portfolio | S&P 500 Financial® |
|---|---|---|---|
| Capital One Financial | COF | 10.8% | 1.0% |
| Wells Fargo | WFC | 8.9% | 3.4% |
| JPMorgan Chase | JPM | 7.3% | 9.8% |
| Bank of New York Mellon | BK | 6.8% | 0.9% |
| Fifth Third Bancorp | FITB | 5.9% | 0.5% |
| U.S. Bancorp | USB | 5.2% | 1.2% |
| PNC Financial Services Group | PNC | 5.0% | 1.2% |
| Chubb | CB | 4.9% | 1.6% |
| Berkshire Hathaway | BRK A | 4.8% | 12.8% |
| Markel Group | MKL | 4.6% | — |
| Top 10 Holdings Total % of Portfolio | 64.2% | 32.3% | |
All Holdings: Quarterly (as of 9/30/24)
| Holding | Ticker | Financial Portfolio | S&P 500 Financial® |
|---|---|---|---|
| Capital One Financial | COF | 10.0% | 0.9% |
| Wells Fargo | WFC | 8.0% | 3.1% |
| JPMorgan Chase | JPM | 7.2% | 9.5% |
| Bank of New York Mellon | BK | 6.8% | 0.8% |
| Fifth Third Bancorp | FITB | 5.9% | 0.5% |
| Chubb | CB | 5.4% | 1.7% |
| Berkshire Hathaway | BRK A | 5.0% | — |
| U.S. Bancorp | USB | 4.9% | 1.1% |
| PNC Financial Services Group | PNC | 4.9% | 1.2% |
| Markel Group | MKL | 4.8% | — |
| DBS Group Holdings | DBS SP | 4.4% | — |
| Julius Baer Group | BAER SE | 4.3% | — |
| American Express | AXP | 3.8% | 2.4% |
| Danske Bank | DANSKE DC | 3.8% | — |
| Rocket Companies | RKT | 3.0% | — |
| Loews | L | 2.8% | 0.2% |
| Prosus | PRX NA | 2.8% | — |
| Bank of America | BAC | 2.5% | 4.3% |
| RenaissanceRe Holdings | RNR | 2.4% | — |
| DNB Bank | DNB NO | 1.6% | — |
| Bank of N.T. Butterfield & Son | NTB | 1.3% | — |
| Charles Schwab | SCHW | 1.0% | 1.5% |
| Everest Group | EG | 0.9% | 0.3% |
| Ping An Insurance Group | 2318 HK | 0.9% | — |
| Metro Bank Holdings | MTRO LN | 0.5% | — |
| Cash | 1.2% | — |
All Holdings: Monthly (as of 10/31/24)
| Holding | Ticker | Financial Portfolio | S&P 500 Financial® |
|---|---|---|---|
| Capital One Financial | COF | 10.8% | 1.0% |
| Wells Fargo | WFC | 8.9% | 3.4% |
| JPMorgan Chase | JPM | 7.3% | 9.8% |
| Bank of New York Mellon | BK | 6.8% | 0.9% |
| Fifth Third Bancorp | FITB | 5.9% | 0.5% |
| U.S. Bancorp | USB | 5.2% | 1.2% |
| PNC Financial Services Group | PNC | 5.0% | 1.2% |
| Chubb | CB | 4.9% | 1.6% |
| Berkshire Hathaway | BRK A | 4.8% | — |
| Markel Group | MKL | 4.6% | — |
| Julius Baer Group | BAER SE | 4.0% | — |
| DBS Group Holdings | DBS SP | 4.0% | — |
| American Express | AXP | 3.8% | 2.4% |
| Danske Bank | DANSKE DC | 3.5% | — |
| Loews | L | 2.8% | 0.2% |
| Prosus | PRX NA | 2.7% | — |
| Bank of America | BAC | 2.6% | 4.4% |
| Rocket Companies | RKT | 2.5% | — |
| RenaissanceRe Holdings | RNR | 2.3% | — |
| DNB Bank | DNB NO | 1.6% | — |
| Bank of N.T. Butterfield & Son | NTB | 1.3% | — |
| Charles Schwab | SCHW | 1.1% | 1.6% |
| Everest Group | EG | 0.8% | 0.2% |
| Ping An Insurance Group | 2318 HK | 0.8% | — |
| Metro Bank Holdings | MTRO LN | 0.6% | — |
| Cash | 1.5% | — |
Industry Allocation
| Sector | Financial Portfolio | S&P 500 Financial® |
|---|---|---|
| Banks | 45.6% | 24.1% |
| Financial Services | 34.2% | 59.1% |
| Insurance | 17.4% | 16.8% |
| Consumer Discretionary Distrb & Retail | 2.8% | — |
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 |
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| 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 | 77.91% | 0.28 | - | 13.04 | - | 0.563 |
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 | <1% | 7% - 8% |
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.