Davis Government Bond Fund Class C (DGVCX)

Overview

The fund focuses on a conservative investment philosophy by allocating assets exclusively within a spectrum of U.S. government securities. These include U.S. Treasury securities, U.S. government agency securities, and U.S. government agency mortgage securities. The strategic direction of the fund aims to cater to investors seeking stability and security, underscored by the fund's commitment to invest in high-credit-quality instruments backed by the U.S. government. Additionally, the fund engages in repurchase agreements that are fully collateralized by U.S. government securities, further emphasizing the fund's conservative risk posture. The fund's investment strategy is designed to maintain a portfolio with a weighted average maturity of three years or less under normal circumstances, aligning with its objective to manage interest rate risk and provide liquidity to its investors.

Products and Services

• U.S. Treasury Securities

  These are debt securities issued by the U.S. Department of the Treasury and backed by the full faith and credit of the U.S. government. The fund invests in these securities to provide investors with a secure and stable return, leveraging their virtually risk-free status as a cornerstone of its investment portfolio.

• U.S. Government Agency Securities

  These securities are issued by various entities of the U.S. government and its agencies. The fund invests in these instruments for their high credit quality and to achieve a diversified government-backed portfolio, offering slightly higher yields compared to U.S. Treasury securities without significantly increasing risk.

• U.S. Government Agency Mortgage Securities

  These are securities backed by mortgages and guaranteed by U.S. government agencies. The fund includes these in its investment mix to tap into the relative safety and moderate yield offered by these mortgage-backed securities, while also enhancing the liquidity profile of its overall portfolio.

• Repurchase Agreements

  Repurchase agreements collateralized by U.S. government securities are used by the fund to secure short-term investments, offering an additional layer of investment safety and income. These agreements involve the selling of securities with the agreement to repurchase them at a later date, usually at a higher price. The collateral backing these agreements further aligns with the fund's investment philosophy of maintaining security and liquidity.