Davis High Income Fund, Inc.
Supplement dated December 1, 1996
to the Prospectus
dated August 1, 1996, as revised September 1, 1996
Effective December 1, 1996, Davis Selected Advisers - NY, Inc.
(DSA-NY) will also be a sub-adviser to the Fund in addition to Stamper
Capital & Investments, Inc. DSA-NY is a wholly-owned subsidiary of Davis
Selected Advisers, L.P., the Fund's Adviser. Under a Sub-Advisory
Agreement with the Adviser, DSA-NY performs research and portfolio
management functions for the Fund as requested by the Adviser. The
Agreement was approved by the Board of Directors of the Fund (including a
majority of the directors who are not parties to the Agreement , have no
financial interest in the Agreement and are not "interested persons" (as
defined in the Investment Company Act of 1940) of any party to the
Agreement) on October 16, 1996. Stamper Capital & Investments, Inc.
continues to be the principal sub-adviser and Clark Stamper continues to
be the portfolio manager for the Fund.
The Agreement will be submitted to the shareholders for
consideration at a Special Meeting to be held before April, 1996. In the
event that the Agreement is not approved by the shareholders, the Board of
Directors will determine what actions should be taken.
In lieu of a sub-advisory fee, the Adviser will pay DSA-NY all
reasonable direct and indirect costs associated with the maintenance of
an office and the performance of the terms of the Agreement. All the fees
paid to DSA-NY will be paid by the Adviser and not the Fund. The fees paid
by the Fund will not be affected by the Agreement.
