The Davis Funds

Fund Overview

Davis New York Venture Fund

Overview
Investment Strategy
Investment Results
Compounded Performance
Fund Attributes
Fund Factsheet (pdf)
Prospectus (pdf)

Overview

The Davis New York Venture Fund is one of the nation's premier equity funds. Established in 1969, the Fund seeks companies that may offer opportunities for long-term capital appreciation.¹ The Davis New York Venture Fund's goal is to create wealth for shareholders over time.²

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Investment Strategy

For 60 years and three generations of portfolio managers, Davis has utilized a consistent approach of seeking durable, well-managed businesses that can be purchased at value prices and held for the long term.

Rigorous first-hand research sets us apart and has allowed us to develop an independent perspective on companies where others have not seen opportunity. As we like to say, "You can't do the same thing as everyone else and expect better results."

The basic tenet of our discipline is that stocks represent ownership interests in real businesses.

Our investment process is founded on two essential questions: "What kind of businesses do we want to own?" and "How much should we pay for them?"

To answer the first question—"What kind of businesses do we want to own"—we have developed a list of characteristics that we believe foster the long-term creation of value in businesses. Our proprietary research focuses on identifying financial strengths, competitive advantages and superior company management.

Once we have uncovered exceptional businesses, we wait patiently to purchase them at value prices.

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Investment Results

By steadfastly adhering to our investment discipline through ever-changing market and economic environments, the Davis New York Venture Fund has outperformed the S&P 500® Index over every rolling 10 year period since 1969. It is the only fund with this track record of consistency.†

These results were generated through decades that contained economic recessions, economic expansions, major military conflicts, bull markets, bear markets and periods of rising and falling interest rates and energy prices. The most recent decade contained such events as the 2008 financial crisis, the NASDAQ collapse, the 2001-2002 bear market and 9/11.

Because investing during uncertain times is the rule, not the exception, and predicting what the next decade will bring for investors is impossible, it is crucial to invest with a manager who has experienced and successfully navigated a wide variety of investment environments.

Ten Year Rolling Performance from February 17, 1969 - December 31, 2009

Davis New York Venture Fund Class A, Total Returns as of March 31, 2010	1 Year	5 Years	7 Years	10 Years	15 Years	20 Years	25 Years	30 Years	40 Years	Inception (2/17/69)
with a maximum 4.75% sales charge	48.68%	0.94%	7.43%	1.36%	9.01%	10.38%	12.11%	13.70%	11.79%	11.78%

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 0.92%. 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. Rolling 10 year returns would be lower in some periods if a sales charge were included. See the endnotes for a description of this chart and a definition of the S&P 500® Index. *Returns calculated from 2/17/69 through 12/31/78.

† Davis New York Venture Fund is the only Fund to have outperformed the S&P 500 Index over every rolling 10 calendar year time period from 2/17/1969-12/31/2009. Past performance is not a guarantee of future results.
* Returns for periods less than one year are not annualized.

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How a Hypothetical $10,000 Investment Has Compounded

Performance consistency can amplify the wealth creation potential of the power of compounding. By consistently outperforming the S&P 500® over the long term, a hypothetical $10,000 invested in the Davis New York Venture Fund Class A in 1969 compounded to over $1,022,947 by March 31, 2010 vs. only $421,876 for the S&P 500® and $428,402 for the Average Large Cap Fund.

Davis New York Venture Fund Class A Shares without sales charge
2/17/69 - 3/31/10

The performance presented represents past performance and is not a guarantee of future results. Returns for other classes of shares will vary. 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 Average Large Cap Fund is represented by the equities in the Lipper Average Large Cap peer group. Lipper will not calculate returns with inceptions in the middle of the month. Inception date used is 2/28/69. Past performance is not a guarantee of future results.

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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 New York Venture Fund is the only Fund to have outperformed the S&P500^® over every rolling 10 year period since its inception in 1969.3

Substantial Co-investment
The Davis family, Davis Advisors, employees and directors have more than $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.4

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. 4

Lower Than Average Expense Ratio5:
Davis New York Venture Fund A, 0.92%; Lipper Category Average, 1.28%

Lower Than Average Turnover Rate6:
Davis New York Venture Fund A, 15%; Lipper Category Average, 87%.

Over the past five years, Davis New York Venture Fund turnover has ranged from 3% to 16%.

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1 Davis New York Venture Fund searches for companies that have achieved a dominant or growing market share and are led by first class management. There is no guarantee that the Fund's investments in these companies will be profitable.
2 Davis New York Venture Fund's investment objective is long-term capital growth. There can be no assurance that the Fund will achieve its objective.
3 Past performance is not a guarantee of future results. Class A shares, not including a sales charge. Returns would be lower in some periods if a sales charge were included. See endnotes for a description of our rolling 10 year performance and a definition of the S&P 500® Index.
4 As of December 31, 2009.
5 Fund expense ratio is as of most recent prospectus. Lipper Category Average is as of most recent quarter end.
6 Fund turnover is as of most recent audited financial statement. Lipper Category Average is as of most recent quarter end. Figures reported are net of reimbursements and may vary in future periods. Peer/category data is compiled using Lipper. As of March 31, 2010, the Davis New York Venture Fund had been categorized by Lipper as Large Cap Core.

This material must be accompanied or preceded by a current Davis New York Venture Fund Prospectus. Carefully consider the fund's investment strategies, 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 New York Venture Fund's investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Davis New York Venture Fund invests primarily in equity securities issued by large companies with market capitalizations of at least $10 billion. 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; financial services 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 New York Venture Fund had approximately 15.6% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

Rolling 10 Year Performance Chart. Davis New York Venture Fund's average annual total returns for Class A shares were compared against the returns earned by the S&P 500® Index as of December 31 of each year for all 10 year time periods from 1969 through 2009. The Fund's returns assume an investment in Class A shares on January 1 of each year with all dividends and capital gain distributions reinvested for a 10 year period. The figures are not adjusted for any sales charge that may be imposed. If a sales charge were imposed, the reported figures would be lower. The figures shown reflect past results; past performance is not a guarantee of future results. There can be no guarantee that the Fund will continue to deliver consistent investment performance. The performance presented includes periods of bear markets when performance was negative. Equity markets are volatile. An investor may experience a loss. Returns for other share classes will vary.

The Lipper Average Large Cap peer group is a combined category including the Lipper Large Cap Growth, Core, and Value peer groups. Lipper Large Cap peer groups are funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper's USDE large-cap floor. Funds are categorized as Growth, Core, or Value based on their portfolio characteristics; price to earnings ratio; price to book ratio; and three year sales per share growth value. Growth funds typically have above-average characteristics, Core funds typically have average characteristics, and Value funds typically have below-average characteristics, compared to the S&P 500® Index.

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.

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. The grades are subject to change.

The S&P 500® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in an index.

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, AZ 85756, 800-279-0279.