The Davis Government Bond Fund is designed to provide current income while preserving your capital investment. The Fund invests primarily in obligations guaranteed by the U.S. government, its agencies, or instrumentalities. The relative stability, safety and income provided by these securities can provide an excellent alternative for balancing a portfolio with significant equity holdings.
What The Fund Can Contribute to Your Portfolio Fund Investment Strategy Fund Factsheet Prospectus
WHAT THE DAVIS GOVERNMENT BOND FUND CAN CONTRIBUTE TO YOUR PORTFOLIO
Monthly Dividends The Fund can be a dependable source of income, which can be used for current expenses or compounded for future needs. The Fund's monthly dividends may be taken in cash or reinvested, without charge, in additional shares.
Safety Among the safest investments in the world in terms of credit quality, many issues held in the Davis Government Bond Fund have interest payments and principal which are guaranteed by the U.S. government, its agencies or instrumentalities.*
Good Balance The Fund can help create a strong foundation for any long-term financial portfolio - offering an excellent means of balancing equity holdings.
Opportunity for Capital Appreciation Unlike many other income-oriented investments such as CDs and money market funds, when interest rates decline, bond prices move higher providing the potential for capital appreciation. Conversely, when interest rates rise, bond prices decline.
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FUND INVESTMENT STRATEGY: A RESEARCH-DRIVEN APPROACH
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Our policy is to invest exclusively in U.S. government securities and government agencies to avoid the greater risk associated with owning corporate bonds. We also emphasize short-term securities in an effort to provide stability in a variety of market climates.
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The Fund combines fundamental research with a disciplined program of risk control and duration management to seek above-market returns. We buy securities based on their price, coupon and yield spreads relative to other securities.
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We include Treasuries for their impeccable credit quality and buy government mortgage-backed and agency-backed securities when they offer adequate premiums to compensate for their additional risk.
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We also assess the short- and long-term interest rate environment to properly position the portfolio along the yield curve.
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