DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
=============================================================================
Dear Shareholder:
We are pleased to report that Davis New York Venture Fund again
outperformed the overall stock market over the past 12 months ended
January 31, 1996, producing a total return on net asset value for Class A
shares of 39.68% versus 38.62% for the S&P 500 Index over the same
period.
Davis New York Venture Fund has outperformed the S&P 500 Index in 20
out of the past 27 calendar years, since its February 1969 inception. This
performance record is the result of our long-term approach to equity
investing which emphasizes buying growth stocks at value prices and
holding them for an average of seven years.
As stewards of your investment, we are as concerned with avoiding "the
big loss" as we are with achieving long-term gains. Over the past twenty
years, Davis New York Venture Fund has experienced just three years of
negative returns. The largest negative annual return during this period
was -2.9%.
Current market conditions place a premium on careful stock-picking. The
Fund is emphasizing financial companies that have growing "brand name"
recognition. We believe that growth in the financial sector is just
beginning. We are also indirectly participating in emerging global markets
through established US companies that derive a growing proportion of
their sales from overseas operations.
We have achieved these results in partnership with our shareholders. The
Davis family, fund directors, and employees have invested more than $600
million across the ten mutual funds in the Davis Funds family, including
the Davis New York Venture Fund.
We believe the best way for shareholders to build wealth over the
long-term is to maintain a long-term approach to equity investing like we
do and not become overly concerned with short-term results, which may
vary.
Sincerely,
Shelby M.C. Davis Christopher C. Davis
President Vice President
March 26, 1996
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS
At January 31, 1996 (Unaudited)
============================================================================================================
<CAPTION>
Value
Shares Security (Note 1)
- ------------------------------------------------------------------------------------------------------------
COMMON STOCK - (87.27%)
AUTOMOTIVE - (2.22%)
<S> <C> <C>
890,000 General Motors Corp........................................................ $ 46,836,250
--------------
BANKS AND SAVINGS & LOANS - (10.75%)
1,000,000 Banc One Corp.............................................................. 37,875,000
300,000 Barnett Banks, Inc......................................................... 17,550,000
120,000 Citicorp................................................................... 8,865,000
851,500 First Bank System, Inc..................................................... 44,703,750
15,000 First Union Corp........................................................... 868,125
473,000 Golden West Financial Corp................................................. 24,477,750
695,000 State Street Boston Corp................................................... 31,535,625
260,000 Wells Fargo & Co........................................................... 61,002,500
--------------
226,877,750
--------------
COMPUTER PRODUCTS AND SERVICES - (4.83%)
400,000 Cirrus Logic, Inc.<F1>..................................................... 8,500,000
550,000 Hewlett-Packard Co......................................................... 46,612,500
850,000 Intel Corp................................................................. 46,909,375
--------------
102,021,875
--------------
CONSUMER PRODUCTS - (5.40%)
30,000 American Brands, Inc....................................................... 1,368,750
8,000 American Home Products Corp................................................ 816,000
655,000 Coca-Cola Company.......................................................... 49,370,625
40,000 General Electric Co........................................................ 3,070,000
344,000 The Gillette Co............................................................ 18,447,000
15,640 Nestle S.A. (Switzerland) ADR (144A)....................................... 823,921
391,000 Nestle S.A. (Switzerland) (Sponsored ADR for Reg. Shrs.)................... 20,598,036
32,000 Philip Morris Cos., Inc.................................................... 2,976,000
453,000 The Seagram Co. Ltd........................................................ 16,477,875
--------------
113,948,207
--------------
DIVERSIFIED FINANCIAL SERVICES - (5.90%)
1,590,000 American Express Co........................................................ 73,140,000
158,546 Dean Witter, Discover & Co................................................. 8,581,302
500,000 Federal Home Loan Mortgage Corporation..................................... 42,812,500
--------------
124,533,802
--------------
ELECTRONICS - (1.73%)
60,000 Applied Materials, Inc.<F1>................................................ 2,223,750
739,400 Texas Instruments, Inc..................................................... 34,382,100
--------------
36,605,850
--------------
ENERGY - (4.32%)
558,200 Amerada Hess Corp.......................................................... 30,770,775
9,600 Amoco Corp................................................................. 675,600
16,000 Atlantic Richfield Co...................................................... 1,818,000
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
At January 31, 1996 (Unaudited)
============================================================================================================
Value
Shares Security (Note 1)
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
ENERGY - Continued
680,900 Burlington Resources, Inc.................................................. $ 25,533,750
52,000 Chevron Corp............................................................... 2,697,500
353,020 Energy Ventures Inc.<F1>................................................... 8,516,608
80,000 Exxon Corp................................................................. 6,420,000
8,000 Mobil Corp................................................................. 886,000
107,800 Noble Affiliates, Inc...................................................... 3,207,050
143,000 Schlumberger Ltd........................................................... 10,027,875
16,000 Sonat, Inc................................................................. 552,000
--------------
91,105,158
--------------
ENTERTAINMENT - (1.07%)
350,100 The Walt Disney Company.................................................... 22,493,925
--------------
FOOD & RESTAURANT - (2.71%)
860,000 McDonald's Corp............................................................ 43,215,000
540,000 Tyson Foods, Inc........................................................... 14,073,750
--------------
57,288,750
--------------
FREIGHT - (0.47%)
261,100 Illinois Central Corp...................................................... 9,856,525
--------------
INTERNATIONAL CLOSED-END INVESTMENT COMPANY - (0.88%)
1,297,000 Morgan Stanley Asia Pacific Fund Inc....................................... 18,482,250
--------------
INVESTMENT FIRMS - (5.38%)
623,000 Donaldson, Lufkin & Jenrette, Inc.......................................... 19,079,375
470,000 J.P. Morgan & Co., Inc..................................................... 38,187,500
1,181,200 Morgan Stanley Group Inc................................................... 56,254,650
--------------
113,521,525
--------------
LIFE INSURANCE - (4.53%)
2,128,600 Equitable Companies Inc.................................................... 52,416,775
875,625 SunAmerica, Inc............................................................ 43,124,531
--------------
95,541,306
--------------
MANUFACTURING - (0.05%)
6,000 Dow Chemical Co............................................................ 447,000
30,000 Maytag Corp................................................................ 588,750
--------------
1,035,750
--------------
METALS AND MINERALS - (0.25%)
50,000 Alumax, Inc.<F1>........................................................... 1,575,000
68,600 Reynolds Metals Co......................................................... 3,670,100
--------------
5,245,100
--------------
PAPER PRODUCTS - (3.61%)
1,065,300 Fort Howard Corp.<F1>...................................................... 23,170,275
12,000 International Paper Co..................................................... 490,500
713,000 Jefferson Smurfit Corp.<F1>................................................ 8,556,000
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
At January 31, 1996 (Unaudited)
============================================================================================================
Value
Shares Security (Note 1)
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
PAPER PRODUCTS - Continued
250,000 The Mead Corp.............................................................. $ 13,812,500
585,500 Union Camp Corp............................................................ 30,153,250
--------------
76,182,525
--------------
PHARMACEUTICAL AND HEALTH CARE - (3.24%)
7,000 Bristol-Myers Squibb Co.................................................... 619,500
182,000 Johnson & Johnson.......................................................... 17,472,000
129,000 Merck & Co., Inc........................................................... 9,062,250
600,000 Pfizer, Inc................................................................ 41,250,000
--------------
68,403,750
--------------
PHOTOGRAPHIC - (1.09%)
314,000 Eastman Kodak Co........................................................... 23,039,750
--------------
PROPERTY/CASUALTY INSURANCE - (17.09%)
1,127,383 The Allstate Corp.......................................................... 49,182,083
239,250 American International Group, Inc.......................................... 23,177,344
495,000 W.R. Berkley Corp.......................................................... 24,750,000
500,300 Chubb Corp................................................................. 51,906,125
315,600 General Re Corp............................................................ 48,286,800
535,000 NAC Re Corp................................................................ 18,190,000
239,000 National Re Corp........................................................... 8,633,875
446,400 Progressive Corp.(Ohio).................................................... 22,599,000
20,000 Robert Plan Corp. Class A<F1><F2>.......................................... 2,700,000
211,800 Transatlantic Holdings Inc................................................. 15,143,700
4,651 Transport Holdings Inc., Class A<F1>....................................... 191,272
930,266 Travelers Group Inc........................................................ 61,164,990
844,000 20th Century Industries, Inc.<F1>.......................................... 15,403,000
316,100 UNUM Corp.................................................................. 19,440,150
--------------
360,768,339
--------------
PUBLISHING - (2.73%)
5,000 Dun & Bradstreet Corp...................................................... 325,000
610,800 Gannet Co., Inc............................................................ 38,785,800
290,000 Tribune Co................................................................. 18,161,250
1,000 Washington Post Co., Class B............................................... 289,500
--------------
57,561,550
--------------
REAL ESTATE - (3.18%)
308,500 Federal Realty Investment Trust<F1>........................................ 6,594,188
2,116,400 Host Marriott Corp.<F1>.................................................... 24,338,600
423,280 Host Marriott Services Corp.<F1>........................................... 2,698,410
70,500 Kimco Realty Corp.......................................................... 1,833,000
188,740 Mid-Atlantic Realty Trust.................................................. 1,840,215
200,000 Saul Centers, Inc.......................................................... 2,925,000
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
At January 31, 1996 (Unaudited)
============================================================================================================
Value
Shares Security (Note 1)
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK - Continued
REAL ESTATE - Continued
6,700 Simon Property Group, Inc.................................................. $ 149,913
341,800 United Dominion Realty Trust............................................... 5,127,000
484,200 Vornado Realty Trust....................................................... 17,854,875
100,000 Weingarten Realty Investors................................................ 3,850,000
--------------
67,211,201
--------------
RETAIL - (2.12%)
850,000 Federated Department Stores, Inc.<F1>...................................... 22,950,000
415,000 Harcourt General, Inc...................................................... 16,185,000
120,000 Home Depot, Inc............................................................ 5,520,000
1,500 Officemax, Inc............................................................. 34,500
--------------
44,689,500
--------------
TELECOMMUNICATIONS - (2.34%)
715,000 Airtouch Communications<F1>................................................ 20,198,750
96,343 AT & T Corp................................................................ 6,442,938
148,000 Cellular Communications, Inc.<F1>.......................................... 7,353,750
494,000 MCI Communications Corp.................................................... 14,109,875
16,600 Royal PTT Netherlands NV (Sponsored ADR)<F1>............................... 637,025
10,000 SBC Communications, Inc.................................................... 566,250
--------------
49,308,588
--------------
TIMBER PRODUCTS - (0.65%)
299,000 Weyerhaeuser Co............................................................ 13,791,375
--------------
TRANSPORTATION - (0.60%)
191,000 Union Pacific Corp......................................................... 12,725,375
--------------
UTILITIES - (0.11%)
10,000 Carolina Power & Light Co.................................................. 370,000
12,000 Duke Power Co.............................................................. 597,000
8,000 Enova Corp.<F1>............................................................ 192,000
6,000 New England Electric System................................................ 238,500
12,000 SCEcorp.................................................................... 222,000
16,800 Southern Co................................................................ 426,300
9,000 Wisconsin Energy Corp...................................................... 283,500
--------------
2,329,300
--------------
OTHER - (0.02%)
12,000 WMX Technologies Inc....................................................... 358,500
--------------
Total Common Stocks - (identified cost $1,293,046,469).................. 1,841,763,776
--------------
PREFERRED STOCK - (3.97%)
50,000 Banc One Corp., Conv. Pfd. C $3.50......................................... 3,315,625
232,920 Citicorp, $5.375, Ser. 13 Conv. Pfd........................................ 47,108,070
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
At January 31, 1996 (Unaudited)
============================================================================================================
Value
Shares/Principal Security (Note 1)
- ---------------------------------------------------------------------------------------------------------
PREFERRED STOCK - Continued
1,755,300 The News Corp. Ltd., Sponsored ADR Pfd..................................... $ 33,350,700
--------------
Total Preferred Stocks - (identified cost $60,704,812).................. 83,774,395
--------------
REPURCHASE AGREEMENTS - (0.48%)
$ 10,070,000 State Street Bank and Trust Company Repurchase Agreement, 5.50%
02/01/96 dated 01/31/96, repurchase value of $10,071,538
(collateralized by $9,365,000 par value U.S. Treasury Notes,
7.125%, 02/29/00, market value $10,276,144) - (identified
cost $10,070,000)....................................................... 10,070,000
OTHER SHORT TERM INVESTMENTS - (9.10%)
10,030,000 Federal National Mortgage Association Discount Note, 5.37%,
02/01/96................................................................. 10,030,000
12,045,000 Federal Farm Credit Bank Discount Note, 5.38%,
02/01/96................................................................. 12,043,200
18,935,000 Federal Home Loan Bank Discount Note, 5.38%,
02/05/96................................................................. 18,923,681
20,000,000 Federal Home Loan Bank Discount Note, 5.41%,
02/06/96................................................................. 19,984,972
10,430,000 Federal Home Loan Mortgage Corporation Discount Note, 5.38%,
02/07/96................................................................. 10,420,648
20,450,000 Federal National Mortgage Association Discount Note, 5.38%,
02/09/96................................................................. 20,425,551
19,230,000 Federal Home Loan Bank Discount Note, 5.36%, 02/12/96...................... 19,198,506
26,075,000 Federal Home Loan Mortgage Corporation Discount Note, 5.39%,
02/13/96................................................................. 26,028,152
14,845,000 Federal Farm Credit Bank Discount Note, 5.30%, 02/14/96.................... 14,816,588
16,370,000 Federal Home Loan Mortgage Corporation Discount Note, 5.38%,
02/15/96................................................................. 16,335,750
23,960,000 Federal Home Loan Mortgage Corporation Discount Note, 5.38%,
02/16/96................................................................. 23,906,290
--------------
Total Other Short Term Investments - (identified cost
$192,113,338)....................................................... 192,113,338
--------------
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
At January 31, 1996 (Unaudited)
============================================================================================================
Value
(Note 1)
- ---------------------------------------------------------------------------------------------------------
Total Investments - (identified cost $1,555,934,619)
(100.82%)<F3>............................................................ 2,127,721,509
Liabilities Less Other Assets - (0.82%).................................... (17,349,738)
--------------
Net Assets - (100%)........................................................ $2,110,371,771
==============
<FN>
<F1> Non-Income Producing Security
<F2> This security is considered illiquid.
<F3> Aggregate cost for Federal Income Tax purposes is $1,554,162,191.
At January 31, 1996 unrealized appreciation (depreciation) of securities
for Federal Income Tax purposes was as follows:
Unrealized appreciation.................................................... $ 583,445,653
Unrealized depreciation.................................................... (9,886,335)
--------------
Net appreciation........................................................... $ 573,559,318
==============
</FN>
</TABLE>
See Notes to Financial Statements
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At January 31, 1996 (Unaudited)
============================================================================================================
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $1,555,934,619)(Note 1).............. $2,127,721,509
Cash...................................................................................... 133,592
Receivables:
Capital stock sold...................................................................... 14,343,374
Dividends and interest.................................................................. 1,636,763
Other assets.............................................................................. 30,891
--------------
Total assets...................................................................... 2,143,866,129
--------------
LIABILITIES:
Payables:
Investment securities purchased......................................................... 29,836,908
Capital stock reacquired................................................................ 1,619,814
Accrued expenses.......................................................................... 2,037,636
--------------
Total liabilities................................................................. 33,494,358
--------------
NET ASSETS.................................................................................. $2,110,371,771
==============
Net assets consist of:
Deficit in undistributed net investment income............................................ $ (3,178,722)
Unrealized appreciation on investments.................................................... 571,786,890
Accumulated net realized gains............................................................ 23,521,819
Paid-in capital........................................................................... 1,518,241,784
--------------
Net assets........................................................................ $2,110,371,771
==============
CLASS A SHARES
Net assets................................................................................ $1,906,770,099
Shares outstanding........................................................................ 127,757,461
Net asset value and redemption price per share (net assets/shares outstanding)............ $ 14.92
=======
Maximum offering price per share (100/95.25 of 14.92)..................................... $ 15.66
=======
CLASS B SHARES
Net assets................................................................................ $ 151,346,065
Shares outstanding........................................................................ 10,198,807
Net asset value and redemption price per share (net assets/shares outstanding)............ $ 14.84
=======
CLASS C SHARES
Net assets................................................................................ $ 52,255,607
Shares outstanding........................................................................ 3,511,527
Net asset value and redemption price per share (net assets/shares outstanding)............ $ 14.88
=======
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended January 31, 1996 (Unaudited)
============================================================================================================
<S> <C>
Investment Income:
Income:
Dividends............................................................................... $ 14,870,895
Interest................................................................................ 5,092,509
--------------
Total income...................................................................... 19,963,404
Expenses:
Management fees (Note 3)................................................ $ 5,458,727
Custodian fees.......................................................... 166,632
Transfer agent fees..................................................... 682,462
Audit fees.............................................................. 20,212
Legal fees.............................................................. 97,269
Accounting fees (Note 3)................................................ 32,502
Reports to shareholders................................................. 77,151
Directors fees and expenses............................................. 71,521
Registration and filing fees............................................ 173,805
Miscellaneous........................................................... 78,790
Service fees paid under distribution plan (Note 4)
Class A............................................................... 1,107,933
Class B............................................................... 419,680
Class C............................................................... 134,119
--------------
Total expenses.................................................................... 8,520,803
--------------
Net investment income........................................................... 11,442,601
--------------
Realized and Unrealized Gain on Investments:
Net realized gain from investment transactions........................................... 123,591,084
Net increase in unrealized appreciation of
investments during the year............................................................. 54,057,357
--------------
Net realized and unrealized gain on investments.......................................... 177,648,441
--------------
Net increase in net assets resulting from operations..................................... $ 189,091,042
==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
====================================================================================================================
<CAPTION>
Six
Months ended
January 31, Year ended
1996 July 31,
(Unaudited) 1995
--------- ---------
<S> <C> <C>
OPERATIONS:
Net investment income.................................. $ 11,442,601 $ 13,632,172
Net realized gain from investment transactions......... 123,591,084 41,388,723
Increase in unrealized appreciation of investments..... 54,057,357 277,238,879
--------------- ---------------
Net increase in net assets resulting................
from operations................................... 189,091,042 332,259,774
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.15 and $0.12 per share, respectively).... (17,109,868) (11,143,629)
Realized gains from investment transactions
Class A ($1.01 and $0.45 per share, respectively).... (115,206,444) (41,788,608)
Class B ($1.01 per share)............................ (6,379,613) _
Class C ($1.01 per share)............................ (2,015,166) _
CAPITAL SHARE TRANSACTIONS (NOTE 5) 415,520,212 290,365,315
--------------- ---------------
Total increase in net assets......................... 463,900,1635 69,692,852
NET ASSETS:
Beginning of year.................................... 1,646,471,608 1,076,778,756
--------------- ---------------
End of year.......................................... $ 2,110,371,771 $ 1,646,471,608
=============== ===============
</TABLE>
See Notes to Financial Statements.
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
January 31, 1996 (Unaudited)
===============================================================================
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is registered under the Investment Company Act of 1940,
as amended, as a diversified, open-end management investment company.
The Fund's investment objective is growth of capital. The Fund invests
primarily in common stocks. There is no assurance that the investment
objective of the Fund will be achieved. The Fund invests in securities
subject to the risk of price fluctuations reflecting both market
evaluations of the businesses involved and general changes in the equity
markets. The Fund may invest in securities of foreign issuers and hedge
currency fluctuation risks related thereto. On December 1, 1994 the Fund
commenced the offering of shares in three classes, Class A, Class B and
Class C. The Class A shares are sold with a front-end sales charge and the
Class B and Class C shares are sold at net asset value and may be subject
to a contingent deferred sales charge upon redemption. All classes have
identical rights with respect to voting (exclusive of each Class's
distribution arrangement), liquidation and distributions. The following is
a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements.
Security Valuation - Securities traded on national securities exchanges
are valued at the published last sales prices on the exchange, or, in the
absence of recorded sales, at the average of closing bid and asked prices
on such exchange. Over-the-counter securities are valued at the average of
closing bid and asked prices. If no quotations are available, the fair value
of the investment is determined by or at the direction of the Board of
Directors. Investments in short-term securities (maturing in sixty days or
less) are valued at amortized cost unless the Board of Directors
determines that such cost is not a fair value.
Federal Income Taxes - It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its taxable
income to shareholders. Therefore, no provision for federal income tax is
required.
Securities Transactions and Related Investment Income - Securities
transactions are accounted for on the trade date (date the order to buy or
sell is executed) with gain or loss on the sale of securities being
determined based upon identified cost. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis.
Dividends and Distributions to Shareholders - Dividends and distributions
to shareholders are recorded on the ex-dividend date.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities (excluding short-term
securities) for the six months ended January 31, 1996, were
$397,354,745 and $225,493,170, respectively.
NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH
AFFILIATES
Advisory fees are paid monthly to the investment adviser at the
annual rate of .75 of 1% of the average daily net assets for the first $250
million, .65 of 1% of the average net assets on the next $250 million, and
.55 of 1% of the average daily net assets in excess of $500 million.
Pursuant to applicable state Blue Sky
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1996 (Unaudited)
===============================================================================
NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH
AFFILIATES - Continued
requirements, the adviser will re-imburse expenses (including the
advisory fee but excluding interest, taxes, brokerage fees and maintenance
fees paid under any Rule 12b-1 Distribution Plan) in excess of the most
restrictive applicable expense limitation prescribed by any statute or
regulatory authority of any jurisdiction in which the Fund's shares are
qualified for offer and sale. The Adviser believes that the most
restrictive expense limitations presently applicable are 2 1/2% for the
first $30 million of average net assets, 2% for the next $70 million of
average net assets and 1 1/2% for any additional average net assets.
Davis Selected Advisers, L.P. is paid for registering Fund shares for sale
in various states. The fee for the six months ended January 31, 1996
amounted to $6,000. Davis Selected Advisers, L.P. is paid for certain
transfer agent services. The fee for the six months ended January 31,
1996 amounted to $71,291. Davis Selected Advisers, L.P. is also paid for
certain accounting services. The fee amounted to $32,502 for the six
months ended January 31, 1996. Certain directors and the officers of the
Fund are also directors and officers of the general partner of the Adviser.
NOTE 4 - DISTRIBUTION AND UNDERWRITING FEES
CLASS A SHARES
Class A shares of the Fund are sold at net asset value plus a sales
charge and are redeemed at net asset value (without a contingent deferred
sales charge).
During the six months ended January 31, 1996, the Fund's
Underwriter, Davis Selected Advisers, L.P., received $5,329,906 from
commissions earned on sales of Class A shares of the Fund of which
$841,596 was retained by the Underwriter and the remaining $4,488,310
was reallowed to investment dealers. Davis Selected Advisers, L.P. paid
the costs of prospectuses in excess of those required to be filed as part of
the Fund's registration statement, sales literature and other expenses
assumed or incurred by it in connection with such sales.
The Underwriter is reimbursed for amounts paid to dealers as a
maintenance fee with respect to Class A shares sold by dealers and
remaining outstanding during the period. The maintenance fee is paid at
the annual rate of 1/4 of 1% of the average net assets maintained by the
responsible dealers. The Underwriter is not reimbursed for accounts in
which the Underwriter pays no service fees to other firms. The
maintenance fee for Class A shares of the Fund for the six months ended
January 31, 1996 was $1,107,933.
CLASS B SHARES
Class B shares of the Fund are sold at net asset value and are
redeemed at net asset value less a contingent deferred sales charge if
redeemed within six years of purchase.
The Fund pays the Distributor a 4% commission on the proceeds from
the sale of the Fund's Class B shares and the Distributor reallows 4% to
the qualified dealer responsible for the sale of the shares. A rule
implemented by the National Association of Securities Dealers, Inc.,
("NASD") limits the percentage of the Fund's annual average net assets
attributable to Class B shares which may be used to reimburse the Distributor.
The limit is 1%, of which 0.75% may be used to pay distribution expenses and
0.25% may be used to pay shareholder service fees. The NASD rule also limits
the aggregate amount the Fund may pay for distribution to
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1996 (Unaudited)
===============================================================================
CLASS B SHARES - (Continued)
6.25% of gross Fund sales since inception of the Rule 12b-1 plan plus
interest at 1% over the prime rate on unpaid amounts. The Distributor
intends to seek full payment (plus interest at prime plus 1%) of
distribution charges that exceed the 1% annual limit in some future period
or periods when the plan limits have not been reached.
During the six months ended January 31, 1996, Class B shares of the
Fund made distribution plan payments which included commissions of
$314,540 and maintenance fees of $105,140.
Commissions earned by the Distributor during the six months ended
January 31, 1996 on the sale of Class B shares of the Fund amounted to
$4,203,334 of which $3,920,735 was reallowed to qualified selling
dealers.
The Distributor intends to seek payment from Class B shares of the
Fund in the amount of $5,307,514, representing the cumulative
commissions earned by the Distributor on the sale of the Fund's Class B
shares reduced by cumulative commissions paid by the Fund and
cumulative contingent deferred sales charge paid by redeeming
shareholders. The Fund has no contractual obligation to pay any such
distribution charges and the amount, if any, timing and condition of such
payment are solely within the discretion of the Directors who are not
interested persons of the Fund or the Distributor.
A contingent deferred sales charge is imposed upon redemption of
certain Class B shares of the Fund within six years of the original
purchase. The charge is a declining percentage starting at 4% of the
lesser of net asset value of the shares redeemed or the total cost of such
shares. During the six months ended January 31, 1996 the Distributor
received $27,241 in contingent deferred sales charges from Class B
shares of the Fund.
CLASS C SHARES
Class C shares of the Fund are sold at net asset value and are
redeemed at net asset value less a contingent deferred sales charge of 1%
if redeemed within one year of purchase.
The Fund pays the Distributor 1% of the Fund's annual average net
assets attributable to Class C shares, of which 0.75% may be used to pay
distribution expenses and 0.25% may be used to pay shareholder service
fees.
During the six months ended January 31, 1996, Class C shares of the
Fund made distribution payments of $134,119.
During the six months ended January 31, 1996, the Distributor
received $9,807 in contingent deferred sales charges from Class C shares
of the Fund.
NOTE 5 - CAPITAL STOCK
At January 31, 1996, there were 200,000,000 shares of capital
stock ($0.05 par value per share) authorized.
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1996 (Unaudited)
==========================================================================================================================
NOTE 5 - CAPITAL STOCK - Continued
Transactions in capital stock were as follows:
Class A
- -------
<CAPTION>
Six Months ended
January 31, 1996 Year Ended
(Unaudited) July 31, 1995
-------------------- --------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed..................................... 17,403,517 $ 256,994,378 30,818,877 $ 383,332,884
Shares issued in reinvestment of distributions........ 6,970,788 100,661,321 3,473,189 38,136,033
---------- ------------- ---------- -------------
24,374,305 357,655,699 34,292,066 421,468,917
Shares reacquired..................................... (6,133,912) (90,914,583) (14,245,169) (177,467,140)
---------- ------------- ---------- -------------
Net increase..................................... 18,240,393 $ 266,741,116 20,046,897 $ 244,001,777
========== ============= ========== =============
</TABLE>
<TABLE>
Class B
- -------
December 1, 1994
Six Months ended (Commencement of
January 31, 1996 operations) through
(Unaudited) July 31, 1995
-------------------- --------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed................................... 7,341,181 $ 107,822,591 2,906,812 $ 37,543,414
Shares issued in reinvestment of distributions...... 310,800 4,469,308 _ _
--------- ------------- --------- ------------
7,651,981 112,291,899 2,906,812 37,543,414
Shares reacquired................................... (216,038) (3,185,643) (143,948) (1,996,206)
--------- ------------- ---------- ------------
Net increase................................... 7,435,943 $ 109,106,256 2,762,864 $ 35,547,208
========= ============= ========== ============
</TABLE>
<TABLE>
Class C
- --------
<CAPTION>
December 1, 1994
Six Months ended (Commencement of
January 31, 1996 operations) through
(Unaudited) July 31, 1995
-------------------- --------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed..................................... 2,725,298 $ 40,046,993 813,212 $ 10,849,274
Shares issued in reinvestment of distributions........ 97,238 1,402,174 _ _
--------- ------------- ------- ------------
2,822,536 41,449,167 813,212 10,849,274
Shares reacquired..................................... (121,862) (1,776,327) (2,359) (32,944)
--------- ------------- ------- ------------
Net increase..................................... 2,700,674 $ 39,672,840 810,853 $ 10,816,330
========= ============ ======= ============
</TABLE>
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS - Class A shares
==========================================================================================================================
Financial Highlights for a share of capital stock outstanding throughout each period.
<CAPTION>
Six Months
ended
1/31/96 Year ended July 31,
---------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
--------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $ 14.56 $ 12.04 $ 12.08 $ 10.70 $ 9.85 $ 9.39
------- ------- ------- ------- ------- ------
Income From Investment Operations
- ---------------------------------
Net Investment Income.............................. .10 .14 .16 .10 .14 .16
Net Gains on Securities
(both realized and unrealized)................... 1.42 2.95 .54 1.98 1.57 1.02
------- ------- ------- ------- ------- ------
Total From Investment Operations................. 1.52 3.09 .70 2.08 1.71 1.18
Less Distributions
- ------------------
Dividends (from net investment income)............. (.15) (.12) (.16) (.10) (.21) (.18)
Distributions From Realized Capital Gains.......... (1.01) (.45) (.58) (.59) (.55) (.50)
Distributions From Paid In Capital................. _ _ _ (.01) (.10) (.04)
------- ------- ------- ------- ------- ------
Total Distributions.............................. (1.16) (.57) (.74) (.70) (.86) (.72)
------- ------- ------- ------- ------- ------
Net Asset Value, End of Period...................... $ 14.92 $ 14.56 $ 12.04 $ 12.08 $ 10.70 $ 9.85
======= ======= ======= ======= ======= ======
Total Return <F1>.................................... 39.68% 27.21% 5.99% 20.20% 18.62% 14.29%
- ------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000 omitted)............ 1,906,770 1,594,885 1,076,779 738,698 494,179 421,214
Ratio of Expenses to Average Net Assets........... .87%<F2> .90% .87% .89% .91% .97%
Ratio of Net Income to Average Net Assets.......... 1.30%<F2> 1.11% 1.19% .85% 1.36% 1.84%
Portfolio Turnover Rate............................ 13% 15% 13% 24% 26% 52%
<FN>
<F1> Sales charges are not reflected in calculation.
<F2> Annualized.
</FN>
</TABLE>
<PAGE>
<TABLE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS - Class B and C Shares
=============================================================================================================================
Financial Highlights for a share of capital stock outstanding throughout each period.
<CAPTION>
_____________CLASS B____________ ____________CLASS C_____________
December 1, 1994 December 20, 1994
Six Months (Commencement Six Months (Commencement
ended of operations) ended of operations)
1/31/96 through 7/31/96 through
(Unaudited) 7/31/95 (Unaudited) 7/31/95
--------- ------- --------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.............. $ 14.43 $ 10.88 $ 14.47 $ 11.16
------- ------- ------- -------
Income From Investment Operations
- ---------------------------------
Net Investment Income........................... _ (.01) _ (.01)
Net Gains on Securities
(both realized and unrealized)................ 1.42 3.56 1.42 3.32
------- ------- ------- -------
Total From Investment Operations............. 1.42 3.55 1.42 3.31
Less Distributions
- ------------------
Dividends (from net investment income).......... _ _ _ _
Distributions From Realized Capital Gains....... (1.01) _ (1.01) _
------- ------- ------- -------
Total Distributions.......................... (1.01) _ (1.01) _
------- ------- ------- -------
Net Asset Value, End of Period................... $ 14.84 $ 14.43 $ 14.88 $ 14.47
======= ======= ======= =======
Total Return <F1>................................. 37.99% 26.07%<F2> 38.09% 26.42%<F2>
- -------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000 omitted)......... 151,346 39,857 52,256 11,729
Ratio of Expenses to Average Net Assets........ 1.74%<F2> 1.78%<F2> 1.74%<F2> 1.78%<F2>
Ratio of Net Income to Average Net Assets....... .43%<F2> .23%<F2> .43%<F2> .23%<F2>
Portfolio Turnover Rate......................... 13% 15% 13% 15%
<FN>
<F1> Contingent deferred sales charges are not reflected in calculation.
<F2> Annualized.
</FN>
</TABLE>
<PAGE>
DAVIS NEW YORK
VENTURE FUND, INC.
124 East Marcy Street Santa Fe, New Mexico 87501
==============================================================================
Directors Officers
Jeremy H. Biggs Jeremy H. Biggs
Wesley E. Bass, Jr. Chairman
Marc P. Blum Shelby M. C. Davis
Shelby M.C. Davis President
Eugene M. Feinblatt Carl R. Luff
Jerry D. Geist Vice President, Treasurer
D. James Guzy & Assistant Secretary
G. Bernard Hamilton Raymond O. Padilla
LeRoy E. Hoffberger Vice President, Secretary
Laurence W. Levine & Assistant Treasurer
Martin H. Proyect Carolyn H. Spolidoro
Christian R. Sonne Vice President
Edwin R. Werner Christopher C. Davis
Vice President
Andrew A. Davis
Vice President
Eileen R. Street
Assistant Treasurer
& Assistant Secretary
Investment Adviser & Distributor
Davis Selected Advisers, L.P.
124 East Marcy Street
Santa Fe, New Mexico 87501
Transfer Agent & Custodian
State Street Bank and Trust Company
c/o The Venture Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406
Counsel
D'Ancona & Pflaum
30 North LaSalle Street
Chicago, Illinois 60602
================================================================================
For more information about Davis New York Venture Fund, Inc. including
management fee, charges and expenses, see the current prospectus which
must precede or accompany this report.
================================================================================
9603-40 DNYV70
