Fund Overview
Davis Financial Fund
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Overview
Investment Strategy
Fund Attributes
Fund Factsheet (PDF)
Prospectus (PDF)


Overview

The Fund's overriding theme is looking for durable financial companies that are conservatively valued. It also may invest a portion of assets in companies outside the financial arena.

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Investment Strategy

The Fund seeks to purchase durable, well-managed businesses at value prices and hold them for the long term. Portfolio Managers Kenneth Feinberg and Charles Cavanaugh focus on managing risk.

We believe financial stocks offer attractive investment opportunities over the long term for four compelling reasons:

  • Powerful demographic trends—not only in America where 76 million baby boomers are entering their peak earning and investing years, but also in Europe and Asia—should lead to greater demand for financial products worldwide.
  • Companies with strong brand names are emerging in financial services that should increasingly gain market share from weaker competitors.
  • Consolidation within financial services industries is a continuing trend that should result in improving profit margins for surviving companies.
  • Many financial companies generate strong free cash flow that can be used to increase value for shareholders through share repurchases, acquisitions and higher dividends.

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Fund Attributes

Our firm's consistent application of the patient, rigorous, research-intensive Davis investment discipline, combined with our strong belief in the principles of shareholder stewardship, has resulted in a number of unique attributes:

  • Investment Results
    Davis Financial Fund:12.12%1; Lipper Category Average2: 9.83% (5/1/91—3/31/10)
  • Substantial Co-investment
    The Davis family, Davis Advisors, employees and directors have over $2 billion of their own money invested side by side with fellow shareholders in the various mutual funds our firm manages. This creates one of the greatest degrees of shareholder alignment in the industry. 3
  • A Culture of Shareholder Stewardship
    At Davis, we put our clients' goals first. Morningstar has recognized this commitment by awarding the Fund its highest overall Stewardship Grade of "A", a level achieved by less than 10% of the funds Morningstar grades. 3
  • Lower Than Average Expense Ratio 4
    Davis Financial Fund A: 1.06%, Lipper Category Average: 1.45%
  • Lower Than Average Turnover Rate 5
    Davis Financial Fund A: 9%, Lipper Category Average: 205%

    The highly-patient nature of the Davis investment discipline is reflected in our uncommonly low turnover ratio.



Davis Financial Fund
Class A, Annualized Total Returns
as of March 31, 2010 		1
Year 		5
Years 		10
Years 		Since Inception
(5/1/91)
with a maximum 4.75% sales charge  62.35% -0.43% 3.19% 11.83%

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 1.06%. 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 data quoted. For most recent month-end performance, click here or call 800-279-0279.


The Fund received a favorable class action settlement from a company that it no longer owns. This settlement had a material impact on the investment performance of the Fund in 2009. This was a one time event that is unlikely to be repeated.

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1 Class A shares, not including a sales charge. Past performance is not a guarantee of future results.
2 Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of December 31, 2009, the Davis Financial Fund had been categorized by Lipper as Financial Services.
3 As of December 31, 2009.
4 Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end.
5 Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end.


This material must be accompanied or preceded by a current Davis Series, Inc., Prospectus. Carefully consider the fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information and can be obtained by clicking here or calling 1 (800) 279-0279. Read the prospectus carefully before you invest or send money.

Davis Financial Fund's investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Under normal circumstances the Fund invests at least 80% of its net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; concentrated financial services portfolio risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile as securities within the financial services sector are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations, and are the target of increased competition; foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. As of March 31, 2010, Davis Financial Fund had approximately 25.3% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

Morningstar assigns a stewardship grade to funds it covers. The overall stewardship grade is the sum of the following five components that are graded on a scale of A through F: Regulatory Issues, Board Quality, Manager Incentives, Fees, and Corporate Culture. The overall grade will range from an A to an F. Morningstar utilizes a fund's public filings, responses to a survey sent out by Morningstar to the fund company and the expertise of the Morningstar analysts to determine a fund grade. The grades are subject to change and are as of December 31, 2009. The methodology for the Morningstar Stewardship grade is completely different from the performance-based Morningstar star rating and has no impact on the star rating.

Morningstar Analyst Picks are the favorite funds of the Morningstar analysts who specialize in each category. Analysts make their selections based on a fund's historical risk and return, costs and knowledge of the managers and their strategies.

Over the last five years, the high and low turnover ratio for Davis Financial Fund was 15% and 4%, respectively.

Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees; and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing support concerning Davis Advisors’ products; placement on a list of offered products; access to sales meetings, sales representatives and management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events and other dealer-sponsored events. Financial advisors should not consider Davis Advisors’ payment(s) to a financial intermediary as a basis for recommending Davis Advisors.  

Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.


Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ85756, 800-279-0279.

 






























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