<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
Dear Shareholder:
During the past six months, U.S. equity markets continued to rise, but were
periodically jolted by short-term volatility. Ultimately the environment proved
to be very favorable for stocks but below average for bonds.
Much of the volatility resulted from mixed signals about the overall health of
the economy. Some economic indicators pointed to accelerated growth and
increased inflation, while others suggested economic stability and a
continuation of strong corporate profits.
Concerns over potential interest rate hikes worried many investors during this
period, but despite speculation, the Federal Reserve Board kept rates stable.
Speculation about interest rates continues and the Fed recently issued strong
words of caution about unwarranted market highs and "irrational exuberance."
Americans maintained a political "status quo" during this period by re-electing
a Democratic president and a Republican congress. These actions, which had been
accurately predicted far in advance, helped the equity markets maintain their
general upward climb.
The U.S. continues to enjoy a period of low unemployment with low inflation,
steady growth and a shrinking budget deficit. The net result is a so-called
"Goldilocks" economy - growing neither too fast nor too slow. As investors
remain concerned over many of the mixed economic signals, we expect increased
market volatility going forward.
<PAGE>
OUR PERFORMANCE
For the six-months ended January 31, 1997, Class A Shares of the Davis New York
Venture Fund returned 28.07% on net asset value, compared to 24.15% for the S &
P 500 Stock Index. Much of our performance was driven by our investments in the
financial sector, including banks, brokerage firms and insurance companies. We
believe this sector offers significant future growth potential and, in fact,
five of our top ten holdings are in financial services companies.
Among our best performing financial companies were Allstate, American Express,
Citicorp, SunAmerica, and Travelers. We also see value and long-term potential
growth in a few technology companies. Among our largest holdings in this sector
we saw strong performance from Intel, IBM, and Novellus Systems. Contributing
to our performance in the oil service sector were Halliburton and Schlumberger.
Disappointment characterized our view regarding the performance of the
telecommunications sector, particularly 360 Degrees Communications and Airtouch
Communications both of which resulted in losses. In addition, McDonald's is
currently on our "quarantine" list. Although, we believe that their problems
are short-term and that the power of their strong brand-name and other
operational and financial factors make the companies good long-term investments.
LONG-TERM PLAN FOR GROWTH
On February 17, 1997, the Davis New York Venture Fund celebrated its 28th
anniversary. During this 28-year
period an investment of $10,000 would have grown to more than $400,000, and the
fund has outperformed the Standard & Poor's 500 Stock Index in 21 out of 28
years.
During the most recent six month period, Davis Selected Advisers' Chief
Investment Officer, Shelby Davis, was named 1996 Domestic Equity Manager of the
Year by Morningstar, a prestigious mutual fund ranking organization. In making
the announcement, Morningstar noted, "Davis deserves credit for taking steps to
ensure a lasting legacy for his shareholders by working to develop a broader
talent pool for the Davis Selected Advisers group. At a time when many fund
groups fuel their growth through hastily arranged acquisitions, or rush to meet
demand for the latest trend, it's heartening to see a group that consistently
puts shareholders' interest first."
The Davis New York Venture Fund's recent and past success reflect the continuing
success of our team approach. The future will hold challenges of its own, and we
are dedicated to meeting it with the same long-term, research-intensive approach
that has always guided our investments.
With that in mind, we have taken a long-term step toward building the future of
the Davis New York Venture Fund. As of February 19, 1997, Shelby Davis became
Chief Investment Officer, while Christopher Davis took over as Portfolio
Manager. Shelby will play the role of coach, sending in plays and evaluating
results. Chris will be quarterback, shaping and implementing the management
team's decisions. We often say that together we bring
2
<PAGE>
"a 60-year-old brain and 30-year-old legs" to the process of managing the Fund--
and that combination will continue to work toward achieving your goals.
At Davis Selected Advisers, management, directors and employees have over $1
billion invested directly in the funds we manage. This aligns our interests
with those of our shareholders. Following our disciplined investment
philosophy, honed over more than fifty years, we invest in companies with strong
growth potential selling at value prices and hold our positions for the long
term. We will continue to adhere to our unique investment approach.
MANAGING RISK
At the very heart of our approach to money management are our views about risk.
In fact, every investment decision we make is formed by our belief that
continual risk management is a key to delivering superior long-term investment
results.
For us, there are two fundamental investment risks. The first risk is what kind
of business we own. The second risk is that we will pay too much for a
company's stock - that is, we will pay more than it is worth.
OWNING THE RIGHT BUSINESSES
While we develop broad investment themes and strategies for the Davis New York
Venture Fund, we evaluate risk on a company-by-company basis. Experience has
taught us that good companies can prosper in sectors that lag while badly
managed companies often perform poorly even in sectors that are performing well.
Over the years we've developed the following list of ten characteristics that we
look for in businesses before we invest in them. Although we know of virtually
no company that has all ten qualities, nearly every company in the fund has a
majority of them.
FIRST-CLASS MANAGEMENT. When we visit a company, we look for management with a
record of doing what they say they're going to do.
MANAGEMENT OWNERSHIP. Just as we invest heavily in our own funds, we look for
managers who own significant stakes in the companies they run.
STRONG RETURNS ON CAPITAL. We look for companies that wisely invest their
capital and reap returns on that investment.
A LEAN EXPENSE STRUCTURE. Companies that keep their own costs low are in a much
better position to compete, especially in difficult times.
3
<PAGE>
A DOMINANT OR GROWING MARKET SHARE IN A GROWING MARKET. A firm that is
increasing its share of a growing market has the best of both worlds.
A PROVEN RECORD AS AN ACQUIRER. When a specific industry or the entire stock
market goes through a downturn, we want to be invested in companies that can
take advantage of low prices to build their own positions through inexpensive
acquisitions.
A STRONG BALANCE SHEET. Strong finances give a company staying power to weather
difficult economic cycles.
PRODUCTS OR SERVICES THAT DO NOT BECOME OBSOLETE. Many investors are left high
and dry because they have invested in firms with products that eventually are
replaced by competitors' stronger offerings.
SUCCESSFUL INTERNATIONAL OPERATIONS. A proven ability to expand internationally
reduces the risk of being tied too closely to U.S. economic or business cycles.
INNOVATION AND THE SMART APPLICATION OF TECHNOLOGY. The ability to apply
technology in any business can help reduce costs and increase sales.
FINDING THE COMPANIES
Making a list of ideal characteristics is easy. It is considerably harder to
find companies that possess those qualities. We continue to meet that challenge
through the application of traditional research - meeting with company
management, analyzing financial statements, reviewing regulatory documents and
studying changes in the business world. Above all, we sit down with the people
running the companies to discuss the fundamental dynamics of their business.
Essential to our thinking is that the goal of research is to separate the
company managements who are the "bluffers" from those who are "doers".
THE PRICE MUST BE RIGHT
Once we find the businesses that meet our criteria, we focus on avoiding the
second risk - the danger of paying too much for them. In fact, as "VALUE"
investors, we want to buy the stocks of these businesses which are worth more
than their current price.
Many investors in the current market seem to believe that the higher a stock
rises, the more attractive it becomes. At Davis Selected Advisers, we believe
this flies in the face of common sense. Our strategy is to stick with a
discipline that tells us how much we can reasonably pay for a stock.
This conservative approach may prevent us from owning some of the hottest stocks
that do very well in a bull market. So be it. Through our price discipline, we
seek to avoid the biggest losses that can occur in a declining market, and we
never lose sight of the fact that our firm's 28-year record has been built as
much by avoiding the big losers as by picking winners.
4
<PAGE>
INVESTMENT THEMES FOR THIS DECADE AND BEYOND
Financial companies have represented a major investment focus in the fund for
most of this decade. We view financial companies as "growth stocks in disguise"
because of their potential for growth and relatively low price/earnings
multiples.
Financial companies are the beneficiaries of two long-term trends: the aging of
America's baby-boomers and the expansion of financial services around the world.
Among the financial companies which fit our investment philosophy are American
Express, Wells Fargo, and Travelers. American Express is one of the great
brands worldwide. It is led by the dynamic leadership of CEO, Harvey Golub. The
company benefits as credit card usage as a percentage of consumer spending
continues to grow at 15-20% per year. We like that American Express is more
conservatively positioned in an economic downturn than its competitors since it
lacks a substantial loan portfolio. Wells Fargo has one of the strongest
managements in banking. The company is the most effective user of technology in
its industry. It is replacing the out-dated branch distribution system and
becoming the leader in how bank products are delivered. Travelers is among the
best management teams in the financial services business. It is developing a
strong brand and does an effective job at combining its insurance, brokerage,
and consumer finance businesses. It has been an effective strategic acquirer of
businesses at favorable prices.
In the technology industry we see value and long-term growth potential. We
particularly like Intel and IBM. Intel is the dominant maker of micro-
processors with 80% of the world's market share. Its earnings are likely to
continue to be fueled by the dramatic growth in the use of computers by
businesses and individuals. IBM has re-emerged as one of the most recognized
companies worldwide. It is very effective at leveraging its relationships with
large global companies to provide them with complete technology solutions. It
is selling at a strong discount to the market.
The oil service industry appears to be recovering from a 15 year down cycle.
Among our favorites is Halliburton. This oil service company benefits as large
oil companies outsource more functions. It is favorably impacted by the oil
industry's growing investment in infrastructure following 15 years of under-
investment.
Another company we like is Masco Corp. This profitable home improvement company
provides bathroom and kitchen fixtures. The management team has sold its poorly
performing furniture business and is re-focusing on growing its core
competencies.
We remain confident that our "all-weather" investment approach will continue to
serve us well, and we look forward to the future with optimism, albeit tempered
with the realization that the markets will rarely be as generous as they have
been in the last several years.
Sincerely,
Shelby M.C. Davis Christopher C. Davis
Chief Investment Officer Portfolio Manager
5
<PAGE>
March 25, 1997
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS
January 31, 1997 (Unaudited)
VALUE
SHARES SECURITY (NOTE 1)
------ -------- --------
COMMON STOCK - (91.69%)
AEROSPACE - (1.76%)
640,000 Boeing Co.. . . . . . . . . . . . . . . . . . . . $ 68,560,000
-------------
AGRICULTURE - (1.35%)
2,660,000 Archer-Daniels-Midland Co.. . . . . . . . . . . . 52,535,000
-------------
AUTOMOTIVE - (1.67%)
1,000,000 General Motors Corp.. . . . . . . . . . . . . . . 59,000,000
100,600 General Motors Corp. Class H... . . . . . . . . . 6,136,600
-------------
65,136,600
-------------
BANKS AND SAVINGS & LOANS - (12.81%)
800,000 Banc One Corp.. . . . . . . . . . . . . . . . . . 36,300,000
780,000 BankAmerica Corp.. . . . . . . . . . . . . . . . 87,067,500
600,000 Barnett Banks, Inc. . . . . . . . . . . . . . . . 26,400,000
758,136 Citicorp. . . . . . . . . . . . . . . . . . . . . 88,228,077
851,500 First Bank System, Inc. . . . . . . . . . . . . . 64,714,000
15,000 First Union Corp. . . . . . . . . . . . . . . . . 1,254,375
473,000 Golden West Financial Corp. . . . . . . . . . . . 31,750,125
766,300 State Street Boston Corp. . . . . . . . . . . . . 56,035,688
352,000 Wells Fargo & Co. . . . . . . . . . . . . . . . . 107,272,000
-------------
499,021,765
-------------
BUILDING MATERIALS - (2.75%)
1,755,600 Martin Marietta Material. . . . . . . . . . . . . 46,742,850
1,750,000 Masco Corporation . . . . . . . . . . . . . . . . 60,375,000
-------------
107,117,850
-------------
CONSUMER PRODUCTS - (4.70%)
30,000 American Brands, Inc. . . . . . . . . . . . . . . 1,530,000
16,000 American Home Products Corp. .. . . . . . . . . . 1,014,000
710,000 Coca-Cola Company.. . . . . . . . . . . . . . . . 41,091,250
40,000 General Electric Co.. . . . . . . . . . . . . . . 4,120,000
2,105,000 Guinness PLC ORD. . . . . . . . . . . . . . . . . 14,604,470
15,640 Nestle S.A. (Switzerland) ADR (144A). . . . . . . 848,365
391,000 Nestle S.A. (Switzerland)
(Sponsored ADR for Reg. Shrs.) . . . . . . . . . 21,209,130
832,000 Philip Morris Cos., Inc.. . . . . . . . . . . . . 98,904,000
-------------
183,321,215
-------------
DIVERSIFIED FINANCIAL SERVICES - (6.61%)
2,070,000 American Express Co.. . . . . . . . . . . . . . . 129,116,250
1,622,292 Dean Witter, Discover & Co. . . . . . . . . . . . 61,849,884
2,200,000 Federal Home Loan Mortgage Corporation. . . . . . 66,550,000
-------------
257,516,134
-------------
6
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
January 31, 1997 (Unaudited)
VALUE
SHARES SECURITY (NOTE 1)
------ -------- --------
COMMON STOCK - CONTINUED
ENERGY - (9.33%)
13,200 Amerada Hess Corp.. . . . . . . . . . . . . . . . $ 778,800
9,600 Amoco Corp. . . . . . . . . . . . . . . . . . . . 835,200
16,000 Atlantic Richfield Co.. . . . . . . . . . . . . . 2,116,000
300,000 Baker Hughes Inc. . . . . . . . . . . . . . . . . 11,700,000
1,550,900 Burlington Resources, Inc.. . . . . . . . . . . . 77,157,275
52,000 Chevron Corp. . . . . . . . . . . . . . . . . . . 3,451,500
116,900 Cooper Cameron Corp.* . . . . . . . . . . . . . . 8,519,087
515,020 Energy Ventures Inc.* . . . . . . . . . . . . . . 30,901,200
80,000 Exxon Corp. . . . . . . . . . . . . . . . . . . . 8,290,000
131,600 Falcon Drilling*. . . . . . . . . . . . . . . . . 4,951,450
1,168,200 Halliburton Co... . . . . . . . . . . . . . . . . 84,548,475
8,000 Mobil Corp. . . . . . . . . . . . . . . . . . . . 1,050,000
1,008,070 Noble Affiliates, Inc.. . . . . . . . . . . . . 43,977,054
433,000 Schlumberger Ltd. . . . . . . . . . . . . . . . . 48,117,125
483,700 Smith International*. . . . . . . . . . . . . . . 22,008,350
16,000 Sonat, Inc. . . . . . . . . . . . . . . . . . . . 852,000
509,014 Union Pacific Resources Group Inc.. . . . . . . . 14,443,272
-------------
363,696,788
-------------
ENTERTAINMENT - (0.66%)
350,100 The Walt Disney Company . . . . . . . . . . . . . 25,644,825
-------------
FOOD & RESTAURANT - (1.97%)
1,315,000 McDonald's Corp.. . . . . . . . . . . . . . . . . 59,832,500
500,000 Tyson Foods, Inc. . . . . . . . . . . . . . . . . 17,000,000
-------------
76,832,500
-------------
INTERNATIONAL CLOSED-END INVESTMENT COMPANY - (0.65%)
2,634,167 Morgan Stanley Asia Pacific Fund Inc... . . . . . 25,353,857
-------------
INVESTMENT FIRMS - (3.89%)
780,500 Donaldson, Lufkin & Jenrette, Inc.. . . . . . . . 29,561,437
530,000 J.P. Morgan & Co., Inc. . . . . . . . . . . . . . 54,590,000
1,181,200 Morgan Stanley Group Inc. . . . . . . . . . . . . 67,476,050
-------------
151,627,487
-------------
LIFE INSURANCE - (3.11%)
1,968,200 Equitable Companies Inc.. . . . . . . . . . . . . 54,371,525
1,451,250 SunAmerica, Inc.. . . . . . . . . . . . . . . . . 66,938,906
-------------
121,310,431
-------------
MARKETING - (0.00%)
1,666 ACNielsen Corp.*. . . . . . . . . . . . . . . . . 27,281
-------------
7
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
January 31, 1997 (Unaudited)
VALUE
SHARES SECURITY (NOTE 1)
------ -------- --------
COMMON STOCK - CONTINUED
MANUFACTURING - (0.03%)
6,000 Dow Chemical Co.. . . . . . . . . . . . . . . . . $ 462,750
30,000 Maytag Corp.. . . . . . . . . . . . . . . . . . . 615,000
-------------
1,077,750
-------------
PAPER PRODUCTS - (1.35%)
836,100 Fort Howard Corp.*. . . . . . . . . . . . . . . . 26,650,687
12,000 International Paper Co. . . . . . . . . . . . . . 490,500
713,000 Jefferson Smurfit Corp.*. . . . . . . . . . . . . 11,051,500
140,000 Kimberly-Clark Corp.. . . . . . . . . . . . . . . 13,650,000
16,200 Union Camp Corp.. . . . . . . . . . . . . . . . . 767,475
-------------
52,610,162
-------------
PHARMACEUTICAL AND HEALTH CARE - (3.27%)
7,000 Bristol-Myers Squibb Co.. . . . . . . . . . . . . 889,000
5,000 Cognizant Corp. . . . . . . . . . . . . . . . . . 160,625
295,000 Eli Lilly & Co. . . . . . . . . . . . . . . . . . 25,701,875
364,000 Johnson & Johnson . . . . . . . . . . . . . . . . 20,975,500
164,000 Merck & Co., Inc. . . . . . . . . . . . . . . . . 14,883,000
158,000 Novartis AG*. . . . . . . . . . . . . . . . . . . 8,867,750
600,000 Pfizer, Inc.. . . . . . . . . . . . . . . . . . . 55,725,000
-------------
127,202,750
-------------
PHOTOGRAPHIC - (1.56%)
700,000 Eastman Kodak Co... . . . . . . . . . . . . . . . 60,725,000
-------------
PROPERTY/CASUALTY INSURANCE - (12.24%)
1,177,383 The Allstate Corp.. . . . . . . . . . . . . . . . 77,412,932
239,250 American International Group, Inc.. . . . . . . . 28,979,156
770,000 W.R. Berkley Corp.. . . . . . . . . . . . . . . . 37,393,125
1,040,600 Chubb Corp. . . . . . . . . . . . . . . . . . . . 56,712,700
425,000 General Re Corp.. . . . . . . . . . . . . . . . . 68,637,500
205,000 NAC Re Corp.. . . . . . . . . . . . . . . . . . . 7,431,250
446,400 Progressive Corp. (Ohio). . . . . . . . . . . . . 29,629,800
512,700 Transatlantic Holdings Inc. . . . . . . . . . . . 40,375,125
1,860,532 Travelers Group Inc.. . . . . . . . . . . . . . . 97,445,365
844,000 20th Century Industries, Inc. . . . . . . . . . . 14,875,500
236,100 UNUM Corp.. . . . . . . . . . . . . . . . . . . . 17,855,063
-------------
476,747,516
-------------
PUBLISHING - (1.78%)
5,000 Dun & Bradstreet Corp.. . . . . . . . . . . . . . 120,000
610,800 Gannett Co., Inc. . . . . . . . . . . . . . . . . 46,802,550
580,000 Tribune Co. . . . . . . . . . . . . . . . . . . . 22,185,000
8
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
January 31, 1997 (Unaudited)
VALUE
SHARES SECURITY (NOTE 1)
------ -------- --------
COMMON STOCK - CONTINUED
PUBLISHING - CONTINUED
1,000 Washington Post Co., Class B. . . . . . . . . . . $ 334,000
-------------
69,441,550
-------------
REAL ESTATE - (2.24%)
644,050 Crescent Real Estate Equities, Inc. . . . . . . . 34,537,181
308,500 Federal Realty Investment Trust . . . . . . . . . 8,715,125
70,500 Kimco Realty Corp.. . . . . . . . . . . . . . . . 2,308,875
188,740 Mid-Atlantic Realty Trust . . . . . . . . . . . . 2,005,362
200,000 Saul Centers, Inc.. . . . . . . . . . . . . . . . 3,300,000
6,700 Simon Property Group, Inc.. . . . . . . . . . . . 195,975
341,800 United Dominion Realty Trust. . . . . . . . . . . 5,297,900
484,200 Vornado Realty Trust. . . . . . . . . . . . . . . 26,570,475
100,000 Weingarten Realty, Investors. . . . . . . . . . . 4,300,000
-------------
87,230,893
-------------
RETAIL - (1.15%)
650,000 Federated Department Stores, Inc.*. . . . . . . . 21,368,750
515,000 Harcourt General, Inc.. . . . . . . . . . . . . . 23,303,750
-------------
44,672,500
-------------
TECHNOLOGY - (11.34%)
620,000 Applied Materials, Inc.*. . . . . . . . . . . . . 30,651,250
1,890,000 Hewlett-Packard Co. . . . . . . . . . . . . . . . 99,461,250
780,000 Intel Corp. . . . . . . . . . . . . . . . . . . . 126,506,250
695,000 International Business Machines . . . . . . . . . 109,288,750
1,348,000 Komag Inc.* . . . . . . . . . . . . . . . . . . . 39,850,250
31,223 Lucent Technologies Inc.. . . . . . . . . . . . . 1,693,848
6,021 NCR Corp.*. . . . . . . . . . . . . . . . . . . . 228,045
430,000 Novellus Systems, Inc.* . . . . . . . . . . . . . 34,023,750
-------------
441,703,393
-------------
TELECOMMUNICATIONS - (2.15%)
1,970,000 Airtouch Communications*. . . . . . . . . . . . . 50,973,750
96,343 AT & T Corp.. . . . . . . . . . . . . . . . . . . 3,793,506
64,500 Global Star Telecommunications* . . . . . . . . . 4,160,250
10,000 SBC Communications, Inc.. . . . . . . . . . . . . 548,750
1,225,000 360 (Degree) Communication Company* . . . . . . . 24,193,750
-------------
83,670,006
-------------
TRANSPORTATION - (3.25%)
725,900 Burlington Northern Santa Fe Corp.. . . . . . . . 63,516,250
471,650 Illinois Central Corp.. . . . . . . . . . . . . . 15,446,537
791,000 Union Pacific Corp. . . . . . . . . . . . . . . . 47,460,000
-------------
126,422,787
-------------
9
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
January 31, 1997 (Unaudited)
VALUE
SHARES/PRINCIPAL SECURITY (NOTE 1)
- ---------------- -------- --------
COMMON STOCK - CONTINUED
UTILITIES - (0.06%)
10,000 Carolina Power & Light Co.. . . . . . . . . . . . $ 376,250
12,000 Duke Power Co. .. . . . . . . . . . . . . . . . . 562,500
12,000 Edison International .. . . . . . . . . . . . . . 256,500
8,000 Enova Corp. . . . . . . . . . . . . . . . . . . . 179,000
6,000 New England Electric System . . . . . . . . . . . 205,500
16,800 Southern Co.. . . . . . . . . . . . . . . . . . . 367,500
9,000 Wisconsin Energy Corp.. . . . . . . . . . . . . . 232,875
-------------
2,180,125
-------------
WASTE MANAGEMENT - (0.01%)
12,000 WMX Technologies Inc. . . . . . . . . . . . . . . 439,500
-------------
Total Common Stocks - (identified cost
$2,361,036,760) . . . . . . . . . . . . . . . . 3,571,825,665
-------------
PREFERRED STOCK - (1.05%)
133,200 Airtouch Communications Pfd. Class B. . . . . . . 3,696,300
85,544 Airtouch Communications Pfd. Class C. . . . . . . 3,977,796
50,000 Banc One Corp., Conv. Pfd. C $3.50. . . . . . . . 4,409,375
1,755,300 The News Corp. Ltd., Sponsored ADR Pfd. . . . . . 28,962,450
-------------
Total Preferred Stocks -
(identified cost $36,770,653) . . . . . . . . . 41,045,921
-------------
REPURCHASE AGREEMENTS - (0.08%)
$3,140,000 State Street Bank and Trust Company Repurchase
Agreement, 5.30%, 02/03/97, dated 01/31/97,
repurchase value of $3,209,532 (collateralized
by $3,135,000 par value U.S. Treasury Notes,
5.625%, 03/31/97, market value $3,210,919) -
(identified cost $3,140,000). . . . . . . . . . 3,140,000
-------------
OTHER SHORT TERM INVESTMENTS - (6.38%)
17,150,000 Federal Home Loan Bank Discount Note, 5.17%,
02/03/97 . . . . . . . . . . . . . . . . . . . 17,145,074
39,200,000 Federal Home Loan Mortgage Corporation Discount
Note, 5.18%, 02/03/97 . . . . . . . . . . . . . 39,188,719
2,130,000 Federal Home Loan Mortgage Corporation Discount
Note, 5.23%, 02/04/97 . . . . . . . . . . . . . 2,129,072
64,300,000 Federal Home Loan Mortgage Corporation Discount
Note, 5.27%, 02/06/97 . . . . . . . . . . . . . 64,252,936
38,625,000 Federal Home Loan Mortgage Corporation Discount
Note, 5.23%, 02/13/97 . . . . . . . . . . . . . 38,557,664
34,570,000 Federal Home Loan Mortgage Corporation Discount
Note, 5.23%, 02/19/97 . . . . . . . . . . . . . 34,479,599
10
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
January 31, 1997 (Unaudited)
PRINCIPAL VALUE
(NOTE 1) SECURITY (NOTE 1)
- -------- -------- --------
OTHER SHORT TERM INVESTMENTS - CONTINUED
$31,100,000 Federal National Mortgage Association Discount
Note, 5.29%, 02/06/97 . . . . . . . . . . . . $ 31,077,150
6,430,000 Federal National Mortgage Association Discount
Note, 5.20%, 02/10/97 . . . . . . . . . . . . 6,421,641
15,200,000 Federal National Mortgage Association Discount
Note, 5.20%, 02/10/97 . . . . . . . . . . . . 15,171,074
---------------
Total Other Short Term Investments -
(identified cost $248,422,929). . . . . . . . 248,422,929
---------------
Total Investments - (identified cost
$2,649,370,342)(99.20%)(a). . . . . . . . . . 3,864,434,515
Other Assets Less Liabilities- (0.80%). . . . . 31,329,598
Net Assets - (100%). . . . . . . . . . . . $ 3,895,764,113
---------------
---------------
(a) Aggregate cost for Federal Income Tax purposes is $2,647,410,722. At
January 31, 1997 unrealized appreciation (depreciation) of securities for
Federal Income Tax purposes was as follows:
Unrealized appreciation . . . . . . . . . . . . $1,234,862,131
Unrealized depreciation . . . . . . . . . . . . (17,838,338)
Net appreciation. . . . . . . . . . . . . . . . $1,217,023,793
--------------
--------------
* Non-Income Producing Security
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At January 31, 1997 (UNAUDITED)
ASSETS:
Investments in securities, at value (identified cost
$2,649,370,342) (Note 1). . . . . . . . . . . . . . . . . . $3,864,434,515
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306,835
Receivables:
Investments sold. . . . . . . . . . . . . . . . . . . . . 16,369,620
Capital stock sold. . . . . . . . . . . . . . . . . . . . 34,047,238
Dividends and interest. . . . . . . . . . . . . . . . . . 2,843,231
Note receivable (Note 7). . . . . . . . . . . . . . . . . 2,625,000
--------------
Total assets. . . . . . . . . . . . . . . . . . . . . . . 3,920,626,439
--------------
LIABILITIES:
Payables:
Investment securities purchased . . . . . . . . . . . . . 20,050,264
Capital stock reacquired. . . . . . . . . . . . . . . . . 1,397,277
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . 3,408,634
Other Liabilities. . . . . . . . . . . . . . . . . . . . . . 6,151
--------------
Total liabilities. . . . . . . . . . . . . . . . . . . . . . 24,862,326
--------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . $3,895,764,113
--------------
--------------
NET ASSETS CONSIST OF:
Deficit in undistributed net investment income . . . . . . . $ (5,805,598)
Unrealized appreciation on investments . . . . . . . . . . . 1,215,064,173
Accumulated net realized gains . . . . . . . . . . . . . . . 30,901,280
Paid-in capital. . . . . . . . . . . . . . . . . . . . . . . 2,655,604,258
--------------
Net assets. . . . . . . . . . . . . . . . . . . . . . . . $3,895,764,113
--------------
--------------
CLASS A SHARES
Net assets. . . . . . . . . . . . . . . . . . . . . . . . $2,928,386,596
Shares outstanding. . . . . . . . . . . . . . . . . . . . 157,555,751
Net asset value and redemption price per share
(net assets/shares outstanding) . . . . . . . . . . . . $18.59
------
------
Maximum offering price per share (100/95.25 of $18.59). . $19.52
------
------
CLASS B SHARES
Net assets. . . . . . . . . . . . . . . . . . . . . . . . $584,066,941
Shares outstanding. . . . . . . . . . . . . . . . . . . . 31,648,319
Net asset value and redemption price per share
(net assets/shares outstanding) . . . . . . . . . . . . $18.45
------
------
CLASS C SHARES
Net assets. . . . . . . . . . . . . . . . . . . . . . . . $275,822,786
Shares outstanding. . . . . . . . . . . . . . . . . . . . 14,902,270
Net asset value and redemption price per share
(net assets/shares outstanding) . . . . . . . . . . . . $18.51
------
------
CLASS Y SHARES
Net assets. . . . . . . . . . . . . . . . . . . . . . . . $107,487,790
Shares outstanding. . . . . . . . . . . . . . . . . . . . 5,737,506
Net asset value and redemption price per share
(net assets/shares outstanding) . . . . . . . . . . . . $18.73
------
------
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF OPERATIONS
For the six months ended January 31, 1997 (UNAUDITED)
INVESTMENT INCOME:
Income:
Dividends.. . . . . . . . . . . . . . . . . . . . . . . . $ 22,598,231
Interest. . . . . . . . . . . . . . . . . . . . . . . . . 7,194,030
------------
Total income . . . . . . . . . . . . . . . . . . . . 29,792,261
Expenses:
Management fees (Note 3). . . . . . . . . . . . . . . . . $ 9,117,953
Custodian fees. . . . . . . . . . . . . . . . . . . . . . 261,148
Transfer agent fees
Class A . . . . . . . . . . . . . . . . . . . . . . . . . 741,760
Class B . . . . . . . . . . . . . . . . . . . . . . . . . 300,924
Class C . . . . . . . . . . . . . . . . . . . . . . . . . 88,036
Class Y . . . . . . . . . . . . . . . . . . . . . . . . . 132
Audit fees. . . . . . . . . . . . . . . . . . . . . . . . 22,326
Legal fees. . . . . . . . . . . . . . . . . . . . . . . . 31,632
Accounting fees (Note 3). . . . . . . . . . . . . . . . . 32,502
Reports to shareholders . . . . . . . . . . . . . . . . . 183,714
Directors fees and expenses . . . . . . . . . . . . . . . 69,130
Registration and filing fees. . . . . . . . . . . . . . . 421,641
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 139,248
Service fees paid under distribution plan (Note 4)
Class A . . . . . . . . . . . . . . . . . . . . . . . . . 2,340,358
Class B . . . . . . . . . . . . . . . . . . . . . . . . . 2,043,345
Class C . . . . . . . . . . . . . . . . . . . . . . . . . 927,542
------------
Total expenses . . . . . . . . . . . . . . . . . . . 16,721,391
Fee Reduction (Note 6). . . . . . . . . . . . . . . . . . (48,734)
------------
Net expenses. . . . . . . . . . . . . . . . . . . . . . . 16,672,657
------------
Net investment income. . . . . . . . . . . . . . . . 13,119,604
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from investment transactions . . . . . . . 127,845,687
Net increase in unrealized appreciation of
investments during the year. . . . . . . . . . . . . . . 631,676,732
------------
Net realized and unrealized gain on investments. . . 759,522,419
------------
Net increase in net assets resulting from
operations. . . . . . . . . . . . . . . . . . . . . $772,642,023
------------
------------
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX
MONTHS ENDED
JANUARY 31, YEAR ENDED
1997 JULY 31,
(UNAUDITED) 1996
----------- ----
<S> <C> <C>
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,119,604 $ 25,572,187
Net realized gain from investment transactions . . . . . . . . . . . . . . . . . . 127,845,687 138,061,957
Increase in unrealized appreciation of investments . . . . . . . . . . . . . . . . 631,676,732 65,657,908
-------------- --------------
Net increase in net assets resulting from operations. . . . . . . . . . . . . . 772,642,023 229,292,052
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.18 and $0.15 per share, respectively) . . . . . . . . . . . . . . . (26,255,863) (17,109,868)
Class B ($0.04 per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,030,858) --
Class C ($0.04 per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . (466,410) --
Class Y ($0.06 per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . (154,448) --
Realized gains from investment transactions
Class A ($0.70 and $1.01 per share, respectively) . . . . . . . . . . . . . . . (102,106,134) (115,206,444)
Class B ($0.70 and $1.01 per share, respectively) . . . . . . . . . . . . . . . (18,040,009) (6,379,613)
Class C ($0.70 and $1.01 per share, respectively) . . . . . . . . . . . . . . . (8,162,177) (2,015,166)
Class Y ($0.70 per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,801,897) --
CAPITAL SHARE TRANSACTIONS (NOTE 5). . . . . . . . . . . . . . . . . . . . . . . . . 723,605,468 822,481,849
-------------- --------------
Total increase in net assets. . . . . . . . . . . . . . . . . . . . . . . . . . 1,338,229,695 911,062,810
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,557,534,418 1,646,471,608
-------------- --------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,895,764,113 $2,557,534,418
-------------- --------------
-------------- --------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
January 31, 1997 (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, 1997, were $931,977,711 and
$316,112,135, 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 daily net assets on the next $250 million, .55 of 1% of the
average daily net assets on the next $2.5 billion, .54 of 1% of the average
daily net assets on the next $1 billion, .53 of 1% of the average daily net
assets on the next $1 billion, .52 of 1% of the
15
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1997 (UNAUDITED)
NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
average daily net assets on the next $1 billion, .51 of 1% of the average daily
net assets on the next $1 billion and .50 of 1% of the average daily net assets
in excess of $7 billion. Pursuant to applicable state Blue Sky requirements,
the adviser will reimburse 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, 1997 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
$72,727. 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, 1997.
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, 1997, the Fund's Underwriter, Davis
Selected Advisers, L.P., received $5,750,605 from commissions earned on sales of
Class A shares of the Fund of which $917,652 was retained by the Underwriter and
the remaining $4,832,953 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, 1997 was $2,340,358.
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.
16
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1997 (UNAUDITED)
NOTE 4 - DISTRIBUTION AND UNDERWRITING FEES - CONTINUED
CLASS B SHARES - (CONTINUED)
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 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, 1997, Class B shares of the Fund
made distribution plan payments which included commissions of $1,564,438 and
maintenance fees of $478,907.
Commissions earned by the Distributor during the six months ended January
31, 1997 on the sale of Class B shares of the Fund amounted to $8,120,516 of
which $7,235,181 was reallowed to qualified selling dealers.
The Distributor intends to seek payment from Class B shares of the Fund in
the amount of $17,403,490, 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, 1997 the Distributor received $198,704 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, 1997, Class C shares of the Fund
made distribution payments of $927,542.
During the six months ended January 31, 1997, the Distributor received
$35,590 in contingent deferred sales charges from Class C shares of the Fund.
17
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1997 (UNAUDITED)
NOTE 5 - CAPITAL STOCK
At January 31, 1997, there were 1,000,000,000 shares of capital stock
($0.05 par value per share) authorized. Transactions in capital stock were as
follows:
<TABLE>
<CAPTION>
CLASS A SIX MONTHS ENDED
JANUARY 31, 1997 YEAR ENDED
(UNAUDITED) JULY 31 1996
----------- ------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed. . . . . . . . . . . . . . . . . 25,196,400 $436,019,817 38,287,694 $576,914,471
Shares issued in reinvestment of distributions . . 5,801,499 102,338,822 6,967,930 100,617,055
----------- ------------- ----------- -------------
30,997,899 538,358,639 45,255,624 677,531,526
Shares reacquired. . . . . . . . . . . . . . . . . (14,621,333) (250,764,085) (13,593,507) (204,699,701)
----------- ------------- ----------- -------------
Net increase. . . . . . . . . . . . . . . . . 16,376,566 $287,594,554 31,662,117 $472,831,825
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
CLASS B SIX MONTHS ENDED
JANUARY 31, 1997 YEAR ENDED
(UNAUDITED) JULY 31 1996
----------- ------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed. . . . . . . . . . . . . . . . . 12,379,801 $211,525,297 16,973,142 $254,230,001
Shares issued in reinvestment of distributions . . 710,051 12,447,326 311,026 4,472,559
----------- ------------- ----------- -------------
13,089,852 223,972,623 17,284,168 258,702,560
Shares reacquired. . . . . . . . . . . . . . . . . (592,593) (10,064,436) (895,972) (13,453,459)
----------- ------------- ----------- -------------
Net increase. . . . . . . . . . . . . . . . . 12,497,259 $213,908,187 16,388,196 $245,249,101
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
CLASS C SIX MONTHS ENDED
JANUARY 31, 1997 YEAR ENDED
(UNAUDITED) JULY 31 1996
----------- -------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed. . . . . . . . . . . . . . . . . 7,218,739 $123,821,517 7,270,790 $109,392,876
Shares issued in reinvestment of distributions . . 274,789 4,831,184 97,098 1,400,156
----------- ------------- ----------- -------------
7,493,528 128,652,701 7,367,888 110,793,032
Shares reacquired. . . . . . . . . . . . . . . . . (343,732) (5,937,383) (426,267) (6,392,109)
----------- ------------- ----------- -------------
Net increase. . . . . . . . . . . . . . . . . 7,149,796 $122,715,318 6,941,621 $104,400,923
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
18
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
January 31, 1997 (UNAUDITED)
NOTE 5 - CAPITAL STOCK - CONTINUED
<TABLE>
<CAPTION>
CLASS Y SIX MONTHS ENDED
JANUARY 31, 1997
(UNAUDITED)
-----------
SHARES AMOUNT
------ ------
<S> <C> <C>
Shares subscribed. . . . . . . . . . . . . . . . . 5,769,525 $100,001,018
Shares issued in reinvestment of distributions . . 38,351 681,489
----------- -------------
5,807,876 100,682,507
Shares reacquired. . . . . . . . . . . . . . . . . (70,370) (1,295,098)
----------- -------------
Net increase. . . . . . . . . . . . . . . . . 5,737,506 $99,387,409
----------- -------------
----------- -------------
</TABLE>
NOTE 6 - CUSTODY FEES
Under an agreement with the custodian bank, custody fees are reduced by
credits for cash balances. Such reductions amounted to $48,734 during the six
months ended January 31, 1997.
NOTE 7 - NOTE RECEIVABLE
At January 31, 1997, Davis New York Venture Fund owned a note receivable
from the Robert Plan Corporation in the amount of $2,625,000. Principal plus
accrued interest at 5% over the prime rate of The Chase Manhattan Bank is
payable in eight equal installments on April 30, 1997, July 31, 1997, October
31, 1997, January 30, 1998, April 30, 1998, July 31, 1998 and October 30, 1998.
NOTE 8 - MATTERS SUBMITTED TO A VOTE OF SHAREHOLDERS
An annual meeting of shareholders was held on October 16, 1996. Matters
submitted for approval included consideration of a Sub-Advisory Agreement
between Davis Selected Advisers, L.P., the Investment Adviser of the Fund, and
Davis Selected Advisers-NY, Inc., an affiliate of the Adviser; ratification of
the selection of Tait, Weller & Baker as the Fund's auditors for the year ending
July 31, 1997 and election of Wesley E. Bass, Jr. and Edwin R. Werner as
directors of the Fund. With respect to consideration of the Sub-Advisory
Agreement, 1,518,256,777 votes were cast in favor, 16,443,638 votes were cast
against and 52,494,905 votes abstained. With respect to ratification of the
selection of auditors, 1,547,982,292 votes were cast in favor, 3,982,211 votes
were cast against and 35,230,817 votes abstained. With respect to the election
of Mr. Bass, 1,566,884,707 votes were cast in favor and 20,310,613 votes were
withheld. With respect to the election of Mr. Werner, 1,565,891,115 votes were
cast in favor and 21,304,205 votes were withheld. The terms of office of Jeremy
H. Biggs, Marc P. Blum, Shelby M.C. Davis, Eugene M. Feinblatt, Jerry D. Geist,
D. James Guzy, G. Bernard Hamilton, LeRoy E. Hoffberger, Laurence W. Levine and
Christian R. Sonne also continued after the meeting.
19
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS - Class A Shares
Financial Highlights for a share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED JULY 31,
1/31/97 -------------------
(UNAUDITED) 1996 1995 1994 1993 1992
----------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $15.24 $14.56 $12.04 $12.08 $10.70 $9.85
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net Investment Income .09 .20 .14 .16 .10 .14
Net Gains on Securities
(both realized and unrealized) 4.14 1.64 2.95 .54 1.98 1.57
Total From Investment Operations 4.23 1.84 3.09 .70 2.08 1.71
Less Distributions
Dividends (from net investment income) (.18) (.15) (.12) (.16) (.10) (.21)
Distributions From Realized Capital Gains (.70) (1.01) (.45) (.58) (.59) (.55)
Distributions From Paid In Capital - - - - (.01) (.10)
Total Distributions (.88) (1.16) (.57) (.74) (.70) (.86)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $18.59 $15.24 $14.56 $12.04 $12.08 $10.70
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL RETURN (1) 28.07% 13.04% 27.21% 5.99% 20.20% 18.62%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000 omitted) 2,928,387 2,151,444 1,594,885 1,076,779 738,698 494,179
Ratio of Expenses to Average Net Assets .90%* .87% .90% .87% .89% .91%
Ratio of Net Income to Average Net Assets .98%* 1.30% 1.11% 1.19% .85% 1.36%
Portfolio Turnover Rate 11% 19% 15% 13% 24% 26%
Average Commission Rate Per Share $.0600 - - - - -
</TABLE>
(1) Sales charges are not reflected in calculation.
* Annualized.
20
<PAGE>
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.
<TABLE>
<CAPTION>
CLASS B CLASS C
------------------------------------------- --------------------------------------------
DECEMBER 1, 1994 DECEMBER 20, 1994
SIX MONTHS (COMMENCEMENT SIX MONTHS (COMMENCEMENT
ENDED YEAR OF OPERATIONS) ENDED YEAR OF OPERATIONS)
1/31/97 ENDED THROUGH 1/31/97 ENDED THROUGH
(UNAUDITED) 7/31/96 7/31/95 (UNAUDITED) 7/31/96 7/31/95
----------- ------- ------- ----------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period . . $15.08 $14.43 $10.88 $15.12 $14.47 $11.16
------- ------- ------ ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss) . . . . . .01 .04 (.01) .01 .04 (.01)
Net Gains on Securities
(both realized and unrealized). . . . 4.10 1.62 3.56 4.12 1.62 3.32
------- ------- ------ ------- ------- ------
Total From Investment Operations. . 4.11 1.66 3.55 4.13 1.66 3.31
Less Distributions
Dividends (from net investment
income) . . . . . . . . . . . . . . . (.04) - - (.04) - -
Distributions From Realized Capital
Gains . . . . . . . . . . . . . . . . (.70) (1.01) - (.70) (1.01) -
------- ------- ------ ------- ------- ------
Total Distributions. . . . . . . . (.74) (1.01) - (.74) (1.01) -
------- ------- ------ ------- ------- ------
Net Asset Value, End of Period. . . . . $18.45 $15.08 $14.43 $18.51 $15.12 $14.47
------- ------- ------ ------- ------- ------
------- ------- ------ ------- ------- ------
Total Return (1) . . . . . . . . . . . . 27.51% 11.81% 26.07%* 27.57% 11.78% 26.42%*
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period
(000 omitted) . . . . . . . . . . . . 584,067 288,835 39,857 275,823 117,255 11,729
Ratio of Expenses to Average Net
Assets. . . . . . . . . . . . . . . . 1.70%* 1.73% 1.78%* 1.70%* 1.73% 1.78%*
Ratio of Net Income to Average Net
Assets. . . . . . . . . . . . . . . . .17%* .44% .23%* .17%* .44% .23%*
Portfolio Turnover Rate. . . . . . . . 11% 19% 15% 11% 19% 15%
Average Commission Rate Per Share. . . $.0600 - - $.0600 - -
</TABLE>
(1) Contingent deferred sales charges are not reflected in calculation.
* Annualized.
21
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS - Class Y Shares
Financial Highlights for a share of capital stock outstanding throughout each
period.
OCTOBER 2, 1996
(COMMENCEMENT OF OPERATIONS)
THROUGH
1/31/97
(UNAUDITED)
-----------
Net Asset Value, Beginning of Period . . . . . . . $16.66
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income. . . . . . . . . . . . . . .07
Net Gains on Securities
(both realized and unrealized). . . . . . . . . 2.76
Total From Investment Operations. . . . . . . 2.83
LESS DISTRIBUTIONS
Dividends (from net investment income). . . . . (.06)
Distributions From Realized Capital Gains. . . . (.70)
Total Distributions. . . . . . . . . . . . . (.76)
Net Asset Value, End of Period. . . . . . . . . . $18.73
TOTAL RETURN (1) . . . . . . . . . . . . . . . . . 17.23%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (000 omitted). . . . . 107,488
Ratio of Expenses to Average Net Assets . . . . .63%*
Ratio of Net Income to Average Net Assets. . . . 1.16%*
Portfolio Turnover Rate. . . . . . . . . . . . . 11%
Average Commission Rate Per Share. . . . . . . . $.0600
* Annualized.
22
<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
PRESIDENT
Shelby M.C. Davis Eileen R. Street
Eugene M. Feinblatt VICE PRESIDENT, TREASURER
Jerry D. Geist & ASSISTANT SECRETARY
D. James Guzy Samuel P. Yuzunza
G. Bernard Hamilton VICE PRESIDENT
AND SECRETARY
LeRoy E. Hoffberger Carolyn H. Spolidoro
Laurence W. Levine VICE PRESIDENT
Christian R. Sonne Christopher C. Davis
Edwin R. Werner VICE PRESIDENT
Andrew A. Davis
VICE PRESIDENT
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.
9703-40 DNYV70
23
