<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
===============================================================================
Dear Shareholder:
MARKET OVERVIEW
Over the past 12 months, we continued to enjoy a healthy economy, low inflation
and strong returns on equities, despite occasional periods of volatility as the
market experienced in late summer. Looking ahead, we remain optimistic about
the role of U.S.-style capitalism, the ability for companies to grow and
prosper over time and the impact good management can have in creating
shareholder value.
Our approach is strictly long term and we judge every investment in relation to
the risk-free return available from bonds. With U.S. Treasury bonds now
yielding around 7%, investors could buy a zero-coupon Treasury and double their
money in 10 years or quadruple it in 20 years. That's a tough bogey for stocks.
Yet, over 70 years, stocks have compounded at more than 10% as an annual
average.
We think the economy has become less cyclical for several reasons. More than
70% of the jobs today are held in less cyclical service sectors of the economy.
Computers are used increasingly to manage inventories and that helps prevent
big inventory cycles. The Federal Reserve has taken to announcing its
intentions in advance so that interest rate shocks are less likely. And we are
still reaping an enormous peace dividend from the end of the Cold War, as
technology has been applied more and more to the private sector and cutbacks in
defense spending have eased budget deficit pressures.
The longest economic cycle on record lasted 107 months in the 1960s. We are now
in the 77th month of this expansion and see no apparent reason why the cycle
should come to a speedy end. In fact, our hope is that the economy will
fluctuate around a 2% to 3% growth rate, avoiding both boom and recession, with
interest rates ranging from 6% to 8% and inflation contained at 2% to 4%.
Our vision is for the Dow to approach 10,000 around the turn of the century,
punctuated by volatility and corrections of up to 1,000 points along the way.
Even so, the Dow has advanced very rapidly, and the percentage gains will not
be what we are used to.
As long-term investors, we will undoubtedly be investing through market
drops--adding to our core holdings and building new positions at attractive
valuations--so that we can continue to participate in the optimism that has
always followed pessimism. We encourage our shareholders to maintain a similar
long-term perspective as they seek to build wealth over time.
Sincerely,
Shelby M.C. Davis
Chief Investment Officer
August 28, 1997
<PAGE>
August 28, 1997
DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
===============================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS
AN INTERVIEW WITH CHRISTOPHER C. DAVIS, PORTFOLIO MANAGER OF THE DAVIS NEW
YORK VENTURE FUND
For the fiscal year ended July 31, 1997, the Davis New York Venture Fund's
Class A shares returned 57.83% on net asset value (1) compared to a return of
52.11% for the Standard & Poor's 500 Index. (2) As long-term investors, our
objective is to provide the opportunity for multiyear compounding of growth. We
measure the fund's success by the long-term wealth we create and are proud of
the noteworthy performance we have achieved in that regard. The fund's A shares
have outperformed the S&P 500 Index in 21 out of 28 years since its founding on
February 17, 1969, generating an average annual return since inception of
15.21% (1) versus a return of 12.33% for the S&P 500 Index (2) over the same
time period.
The Davis New York Venture Fund's Class A shares rank in the top five of all
growth equity funds tracked by Lipper Analytical Services since 1969. The fund
has also been in the top 10% of all growth funds for the last 5, 10, 15, 20 and
25 years, which we believe is an unsurpassed record of consistency. (3) In
addition, as of July 31, 1997, the fund's Class A shares held Morningstar's
highest overall rating of ***** (five stars) for risk-adjusted performance out
of 2,040 domestic equity funds. (4)
In February 1997, Christopher C. Davis became sole Portfolio Manager of the
Davis New York Venture Fund after serving as Co-Portfolio Manager since 1995.
In recognizing Davis' abilities, a recent Morningstar report noted, "Chris
Davis continues to execute the fund's successful strategy of buying top-flight
companies when they are temporarily out of favor and then holding for a long
time....Thus, this fund's guiding investment philosophy hasn't changed a
bit...it remains in good hands." (5)
Q. What's your primary message for shareholders today?
A. The incredible performance and duration of this bull market has led to
careless thinking on the part of many investors. For example, many index fund
investors would undoubtedly be delighted if they could be guaranteed the market
would rise from a level of around 8,000 today to 10,000 by the end of the year
2000. But they may not be delighted to learn that this performance equates to
an annualized return of only 5.7% (excluding dividends), less than the return
now available on high-quality bonds of comparable duration.
In the midst of this market euphoria, we continue to stick to the basics,
applying an investment approach that has been successfully employed by the
Davis family in bull and bear markets during the past 50 years. Most
importantly, we recognize that stocks are not merely pieces of paper, but
represent ownership interests in businesses. As a result, our entire investment
process boils down to two simple questions: What kind of businesses do we want
to own and how much should we pay for them?
At the annual meeting of Berkshire Hathaway this year, Chairman Warren Buffett
made the same point in a different way. He noted that in investing there are
two kinds of risks--business risk, or the risks inherent in the type of
business you own, and valuation risk. In today's high market, we think it's
more important than ever to focus on managing risk both in the businesses that
we buy and in the prices we pay for them.
2
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
===============================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - Continued
AN INTERVIEW WITH CHRISTOPHER C. DAVIS, PORTFOLIO MANAGER OF THE DAVIS NEW YORK
VENTURE FUND - CONTINUED
Q. How do you control business risk?
A. Another way of asking this question is: "What are the characteristics of a
business that foster long-term sustainable growth?" Obviously some
characteristics are quantifiable, such as businesses that have strong balance
sheets, generate good returns on capital and are low-cost operators. Other
characteristics that help reduce business risk are more subjective, but no less
important. These include businesses that have superior management, superior
culture, a strong international presence and sell goods or services that do not
become easily obsolete.
Looked at this way, financial companies are current standouts. The crisis that
swept through the financial services arena in the last decade has left a
lasting legacy at many financial companies. Capital ratios are strong,
managements are more aware of risk, and discipline is evident in the industry.
These companies also continue to benefit from favorable long-term demographic
and macroeconomic trends, as the baby boomers enter their peak earning and
investing years and as capitalism spreads around the world. Among the companies
we continue to find attractive in the financial sector are Morgan Stanley, Dean
Witter, Discover; Travelers; and Wells Fargo.
Other types of businesses that we believe offer lower risk potential are
high-quality consumer companies, such as McDonald's; pharmaceutical companies
that have a broad product range, such as SmithKline Beecham; and some energy
services companies, such as Halliburton, which continue to be an area of
growing interest for the fund.
Q. How do you control valuation risk?
A. Strong businesses with the characteristics just described become great
investments when they are purchased at opportunistic prices. That is why we
generally buy companies when they are under a cloud, that is, when some
short-term disappointment has created an opportunity to buy growth at a value
price, particularly at a low valuation relative to the market. For example, the
Davis New York Venture Fund has benefited from the recovery of some technology
issues purchased during the "tech wreck" a year ago.
Because of our strong price discipline, our portfolio, by and large, has a
lower price/earnings multiple than the market. We think that buying companies
with modest but sustainable growth prospects, strong dividend yields and solid
balance sheets when expectations and valuations are low is a good formula to
follow in a high market.
Investing in a world-class company when it is out of favor because of
short-term events reduces the risk of incurring the calamitous losses that
occur when glamour stocks with high valuations fail to live up to the market's
great expectations and their prices plunge. We never lose sight of the fact
that our firm's 28-year investment record has been built as much by avoiding
the big losers as by picking winners.
Q. What's your long-term outlook?
3
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
P.O. Box 1688, 124 East Marcy Street
Santa Fe, New Mexico 87501
===============================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - Continued
AN INTERVIEW WITH CHRISTOPHER C. DAVIS, PORTFOLIO MANAGER OF THE DAVIS NEW YORK
VENTURE FUND - CONTINUED
A. Our focus on risk should not lead anyone to think that we have changed our
firmly held conviction that equities offer the best way to create long-term
wealth. As my father says, we wake up every morning believing the glass is half
full. Furthermore, because the fund's turnover remains low, changes in the
portfolio tend to be quite gradual and our philosophy is always the same: We
buy value and hold it for the long term.
We remain confident that the fund's proven "all-weather" investment approach
will continue to serve our shareholders well in the future. Nevertheless, the
bullish story on equities is well-known and we must temper our optimism with
the understanding that markets will rarely be as generous as they have been in
the last several years.
- -----------------------
(1) All fund performance figures cited in this letter are calculated without
considering sales commissions. On A shares, the current maximum sales
commission is 4.75%.
(2) The Standard & Poor's 500 Index is an unmanaged index that has no specific
investment objective. Investments cannot be made directly in the index. The
return on the S&P 500 Index includes net dividends and capital gains
reinvested, but does not take into account any sales charge.
(3) Among all growth funds tracked by Lipper, the Davis New York Venture Fund
ranked in the top 7% out of 286 for the last 5 years, the top 3% out of 176
funds for the last 10 years, the top 4% out of 113 funds for the last 15 years,
the top 3% out of 102 funds for the last 20 years, and the top 9% out of 95
funds for the last 25 years.
(4) Morningstar proprietary ratings reflect historical risk-adjusted
performance as of July 31, 1997. Subject to change every month, Morningstar
ratings are calculated from a fund's three-, five- and 10-year average annual
returns in excess of 90-day Treasury bill (T-bill) returns, with appropriate
fee adjustments and a risk factor that reflects fund performance below 90-day
T-bill returns. The Class A shares of the Davis New York Venture Fund received
five stars (among 622 funds) for the 10-year period, five stars (among 1,146
funds) for the 5-year period, and five stars among 2,040 funds for the 3-year
period. Ten percent of the funds in an investment category receive five stars;
22.5%, four stars; 35%, three stars; 22.5%, two stars; and 10%, one star. Star
ratings for the fund's other classes of shares may vary and are available only
for those classes with at least three years of performance history. Past
performance is no guarantee of future results.
(5) Source: Morningstar Mutual Funds, April 11, 1997
4
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
COMPARISON OF DAVIS NEW YORK VENTURE FUND, INC., CLASS A SHARES AND STANDARD
AND POOR'S 500 STOCK INDEX
===============================================================================
Average Annual Total Return For the Periods ended July 31, 1997.
- ------------------------------------------------------------------------------
CLASS A SHARES
(This calculation includes an initial sales charge of 4 3/4%).
One Year ...................................................... 50.33%
Five Years..................................................... 22.46%
Ten Years...................................................... 17.94%
CLASS Y SHARES
(There is no sales charge applicable to this calculation.)
Life of Class (October 2, 1996 through July 31, 1997) ......... 56.31%
- ------------------------------------------------------------------------------
$10,000 INVESTED OVER TEN YEARS. Let's say you invested $10,000 in Davis New
York Venture Fund, Class A Shares on July 31, 1987 and paid a 4 3/4% sales
charge. As the chart shows, by July 31, 1997 the value of your investment would
have grown to $52,136 - a 421.36% increase on your initial investment. For
comparison, look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $40,190 - a 301.89%
increase.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE PURPOSE OF EDGAR
FILING.]
S&P 500 DNYVF-A
Jul-87 10,000.00 9,525.00
Jul-88 8,825.00 9,211.68
Jul-89 11,638.23 12,291.91
Jul-90 12,392.39 13,289.77
Jul-91 13,970.31 15,188.55
Jul-92 15,754.18 18,025.38
Jul-93 17,126.22 21,684.00
Jul-94 18,005.30 22,964.81
Jul-95 22,699.47 29,213.08
Jul-96 26,457.36 33,033.80
Jul-97 40,245.62 52,136.40
Standard & Poor's is an unmanaged index and has no specific investment
objective. The index does not take into account any sales charge and
investments cannot be made directly into an index.
The performance data for Davis New York Venture Fund contained in this report
represents past performance and assumes that all distributions were reinvested,
and should not be considered as an indication of future performance from an
investment in the Fund today. The investment return and principal value will
fluctuate so that shares may be worth more or less than their original cost
when redeemed.
5
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
COMPARISON OF DAVIS NEW YORK VENTURE FUND, INC., CLASS B SHARES AND STANDARD
AND POOR'S 500 STOCK INDEX
==============================================================================
Average Annual Total Return For the Periods ended July 31, 1997.
- ----------------------------------------------------------------
CLASS B SHARES
(This calculation includes a contingent deferred sales charge of 3%.)
One Year................................................... 53.47%
Life of Class (December 1, 1994 through July 31, 1997) .... 36.48%
- -------------------------------------------------------------------
$10,000 INVESTED AT INCEPTION. Let's say you invested $10,000 in Davis New York
Venture Fund, Class B Shares on December 1, 1994 (inception of class). As the
chart shows, by July 31, 1997 the value of your investment (less applicable
contingent deferred sales charges) would have grown to $22,910 - a 129.10%
increase on your initial investment. For comparison, look at how the S&P 500
did over the same period. With dividends reinvested, the same $10,000
investment would have grown to $22,631 - a 126.31% increase.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE PURPOSE OF EDGAR
FILING.]
S&P 500 DNYVF-B
Dec-94 10,000.00 10,000.00
Jul-95 12,774.00 13,262.87
Jul-96 14,877.88 14,833.80
Jul-97 22,630.74 22,910.48
Standard & Poor's is an unmanaged index and has no specific investment
objective. The index does not take into account any sales charge and
investments cannot be made directly into an index.
The performance data for Davis New York Venture Fund contained in this report
represents past performance and assumes that all distributions were reinvested,
and should not be considered as an indication of future performance from an
investment in the Fund today. The investment return and principal value will
fluctuate so that shares may be worth more or less than their original cost
when redeemed.
6
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
COMPARISON OF DAVIS NEW YORK VENTURE FUND, INC., CLASS C SHARES AND STANDARD
AND POOR'S 500 STOCK INDEX
==============================================================================
Average Annual Total Return For the Periods ended July 31, 1997.
- ------------------------------------------------------------------------------
CLASS C SHARES
(There is no contingent deferred sales charge applicable to this calculation.)
One Year....................................................... 56.59%
Life of Class (December 20, 1994 through July 31, 1997)........ 36.84%
- -----------------------------------------------------------------------------
$10,000 INVESTED AT INCEPTION. Let's say you invested $10,000 in Davis New York
Venture Fund, Class C Shares on December 20, 1994 (inception of class). As the
chart shows, by July 31, 1997 the value of your investment would have grown to
$22,701 - a 127.01% increase on your initial investment. For comparison, look
at how the S&P 500 did over the same period. With dividends reinvested, the
same $10,000 investment would have grown to $22,226 - a 122.26% increase.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE PURPOSE OF EDGAR
FILING.]
S&P 500 DNYVF-C
Dec-94 10,000.00 10,000.00
Jul-95 12,546.00 12,965.94
Jul-96 14,612.33 14,497.33
Jul-97 22,226.81 22,701.30
Standard & Poor's is an unmanaged index and has no specific investment
objective. The index does not take into account any sales charge and
investments cannot be made directly into an index.
The performance data for Davis New York Venture Fund contained in this report
represents past performance and assumes that all distributions were reinvested,
and should not be considered as an indication of future performance from an
investment in the Fund today. The investment return and principal value will
fluctuate so that shares may be worth more or less than their original cost
when redeemed.
7
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
PORTFOLIO HOLDINGS AS OF JULY 31, 1997
=============================================================================
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE PURPOSE OF EDGAR
FILING.]
PORTFOLIO MAKEUP (% OF FUND ASSETS) SECTOR WEIGHTINGS (% OF PORTFOLIO)
- ----------------------------------- ----------------------------------
Preferred Stocks Energy
0.5% 11.6%
Cash & Cash Consumer
Equlvalents Products
7.9% 5.2%
Common Stocks Building
91.6% Materials
3.5%
Insurance
14.5%
Transportation
4.9%
Real Estate
2.9%
Diversifled
Financial
Services
10.4%
Other
5.6%
Banking
14.5%
Pharmaceuticals
5.7%
Technology
17.4%
Food &
Restaurants
3.8%
<TABLE>
<CAPTION>
TOP 10 HOLDINGS
STOCK SECTOR % OF FUND ASSETS
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
International Business Machines Corp. Technology 4.17%
Hewlett Packard Technology 3.73
Wells Fargo & Co. Banks and Saving & Loans 3.53
American Express Co. Diversified Financial Services 3.34
General Re Corp. Property/Casualty Insurance 3.19
McDonald's Corp. Food & Restaurant 3.06
Morgan Stanley, Dean Witter & Discover Co. Investment Firms 2.70
Burlington Northern Santa Fe Corp. Transportation 2.63
Philip Morris Cos., Inc. Consumer Products 2.41
Halliburton Co. Energy 2.36
</TABLE>
8
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
PORTFOLIO ACTIVITY - AUGUST 1, 1996 THROUGH JULY 31, 1997
===============================================================================
NEW POSITIONS ADDED (8/1/96-7/31/97)
(Highlighted positions are those greater than 0.99% of 7/31/97 total net
assets.)
<TABLE>
<CAPTION>
DATE OF 1ST % OF 7/31/97
SECURITY SECTOR PURCHASE FUND ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
360 (Degree) Communication Company Telecommunications 12/19/96 0.56%
ACNielsen Corp. Marketing 11/1/96 0.00%
AirTouch Communications, Inc., Telecommunications 8/19/96 -
6%, Ser. B Conv. Pfd.
AirTouch Communications, Inc., Telecommunications 8/19/96 0.14%
4.25%, Ser. C Conv. Pfd.
Baker Hughes Inc. Energy 1/8/97 -
BankAmerica Corp. Banks and Savings & Loans 9/11/96 2.36%
British Petroleum Company PLC-ADR Energy 6/5/97 0.68%
Burlington Northern Santa Fe Corp. Transportation 8/6/96 2.63%
Ciba Specialty Chemicals ADR Chemicals 2/26/97 -
Cognizant Corp. Pharmaceutical and Health Care 11/1/96 0.00%
Cooper Cameron Corp. Energy 10/17/96 1.10%
Crescent Operating, Inc. Real Estate 6/27/97 0.07%
Crescent Real Estate Equities, Inc. Real Estate 9/26/96 1.35%
Devon Financing Trust, $3.25, Conv. Pfd. Financial Services 5/20/97 0.23%
Eli Lilly & Co. Pharmaceutical and Health Care 9/6/96 0.52%
EVI, Inc. Energy 5/6/97 0.79%
Falcon Drilling Energy 12/10/96 -
Fluor Corp. Energy 3/7/97 -
Fortune Brands, Inc. Consumer Products 6/2/97 0.02%
Gallaher Group PLC-ADR Consumer Products 6/2/97 0.01%
Global Star Telecommunications Telecommunications 8/19/96 0.07%
International Business Machines Corp. Technology 9/24/96 4.17%
Komag Inc. Technology 8/6/96 0.49%
Loral Space & Communications Satellite Telecommunications 5/12/97 0.13%
Lucent Technologies Inc. Technology 10/1/96 -
Martin Marietta Material, Inc. Building Materials 10/4/96 1.10%
Masco Corporation Building Materials 11/20/96 2.14%
Molex Incorporated Electronics 4/1/97 0.26%
Morgan Stanley, Dean Witter & Investment Firms 6/2/97 2.70%
Discover Co.
Motorola, Inc. Telecommunications 3/18/97 1.23%
Nabors Industries, Inc. Energy 6/24/97 0.14%
NCR Corp. Technology 12/13/96 -
News Corp. Publishing 6/5/97 -
Nike, Inc. Consumer Products 7/16/97 1.06%
Novartis AG Pharmaceutical and Health Care 1/29/97 0.62%
Roche Holding LTD Pharmaceutical and Health Care 2/13/97 -
Rouse Company Real Estate 7/3/97 0.33%
Seagate Technology Technology 6/18/97 -
Smith International Inc. Energy 9/5/96 1.42%
</TABLE>
9
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
PORTFOLIO ACTIVITY - AUGUST 1, 1996 THROUGH JULY 31, 1997 - CONTINUED
================================================================================
NEW POSITIONS ADDED (8/1/96-7/31/97) - CONTINUED
(Highlighted positions are those greater than 0.99% of 7/31/97 total net
assets.)
<TABLE>
<CAPTION>
DATE OF 1ST % OF 7/31/97
SECURITY SECTOR PURCHASE FUND ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SmithKline Beecham PLC-ADR Pharmaceutical and Health Care 6/6/97 1.84%
State Street Corp. Banks and Savings & Loans 4/17/97 1.35%
Sun Microsystems, Inc. Technology 5/14/97 0.72%
TCF Financial Corporation Banks and Savings & Loans 3/17/97 0.24%
Tosco Corporation Energy 4/29/97 0.39%
Union Pacific Resources Group Inc. Energy 10/16/96 -
Vornado Realty Trust, 6.50%, Ser. A Real Estate 4/3/97 0.05%
Conv. Pfd
Waste Management Inc. Waste Management 5/13/97 0.01%
</TABLE>
POSITIONS CLOSED (8/1/96-7/31/97) (Gains and losses greater than $3 million are
highlighted.)
<TABLE>
<CAPTION>
STOCK SECTOR DATE OF FINAL SALE GAIN/(LOSS)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AirTouch Communications, Inc., 6%, Ser. B Telecommunications 7/29/97 $1,730,294
Conv. Pfd.
Applied Materials, Inc. Technology 5/2/97 11,390,758
AT & T Corp. Telecommunications 6/10/97 2,934,456
Baker Hughes Inc. Energy 3/18/97 303,042
Ciba Specialty Chemicals ADR Chemicals 6/10/97 2,085,051
Dean Witter, Discover & Co. Investment Firms 6/2/97 3,233,719
Eastman Kodak Co. Photographic 3/21/97 4,961,843
Equitable Companies Inc. Life Insurance 4/8/97 15,170,147
Falcon Drilling Energy 6/3/97 1,612,508
Federated Department Stores, Inc. Retail 3/18/97 13,003,470
Fluor Corp. Energy 6/6/97 (5,144,366)
General Motors Corp. Automotive 6/5/971 11,693,012
General Motors Corp. Class H Automotive 2/11/97 2,122,145
The Gillette Co. Consumer Products 9/18/96 19,208,569
Guiness PLC ORD Consumer Products 4/15/97 1,769,201
Home Depot, Inc. Retail 10/3/96 1,728,919
Host Marriott Corp. Real Estate 11/20/96 15,981,898
Jefferson Smurfit Corp. Paper Products 5/8/97 (284,650)
Lucent Technologies Inc. Technology 6/10/97 1,812,961
MCI Communications Corp. Telecommunications 11/15/96 8,319,679
The Mead Corp. Paper Products 10/3/96 3,534,574
Mid-Atlantic Realty Trust Real Estate 7/7/97 (1,556,039)
Morgan Stanley Group Inc. Investment Firms 6/2/97 3,839,262
NAC Re Corp. Property/Casualty Insurance 6/2/97 4,373,797
National Re Corp. Property/Casualty Insurance 10/4/96 6,643,513
NCR Corp. Technology 6/10/97 155,919
News Corp. Publishing 6/5/97 (12,058)
The News Corp. Ltd. Sponsored ADR Pfd. Publishing 6/12/97 (3,293,269)
</TABLE>
10
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
PORTFOLIO ACTIVITY - AUGUST 1, 1996 THROUGH JULY 31, 1997 - CONTINUED
===============================================================================
POSITIONS CLOSED (8/1/96-7/31/97) - CONTINUED
(Gains and losses greater than $3 million are highlighted.)
<TABLE>
<CAPTION>
STOCK SECTOR DATE OF FINAL SALE GAIN/(LOSS)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Roche Holding LTD Pharmaceutical and Health Care 4/3/97 (629,704)
Seagate Technology Technology 7/9/97 644,358
The Seagram Co. Ltd Consumer Products 10/2/96 1,227,761
Union Pacific Resources Group Inc. Energy 3/19/97 2,098,319
Unocal Corp. Energy 10/25/96 327,975
</TABLE>
11
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC. - CLASS A SHARES
ILLUSTRATION OF THE GROWTH OF AN ASSUMED INVESTMENT OF $10,000
==============================================================================
ILLUSTRATION OF THE GROWTH OF AN ASSUMED INVESTMENT
WITH DIVIDENDS REINVESTED AND CAPITAL GAIN DISTRIBUTIONS ACCEPTED IN ADDITIONAL
SHARES
The chart below reflects an assumed investment of $10,000 covering the period
from February 17, 1969 to July 31, 1997, the life of the Company. The period
was one in which common stock prices fluctuated and was characterized by
periods of substantial market advances as well as periods of substantial market
declines. The results should not be considered as a representation of the
dividend income or capital gain or loss which may be realized from an
investment made in the Company today.
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE PURPOSE OF EDGAR
FILING.]
<TABLE>
<CAPTION>
Value of Shares Value of Shares Cost of Shares Cost of Shares
Value of Initial Purchased Through Purchased Through Purchased Through Purchased Through
Investment - $43,064 Dividends - $105,132 Distributions - $413,416 Dividends - $42,835 Distributions - $172,883
-------------------- -------------------- ------------------------ ------------------- ------------------------
<S> <C> <C> <C> <C> <C>
1969 $9,574.11 $0.00 $0.00 $0.00 $0.00
1970 $7,560.98 $0.00 $96.99 $0.00 $131.33
1971 $10,206.38 $113.29 $130.93 $76.01 $131.33
1972 $12,110.70 $187.61 $155.36 $121.16 $131.33
1973 $10,525.33 $192.52 $364.22 $154.92 $401.43
1974 $7,945.59 $247.26 $274.95 $283.32 $401.43
1975 $8,371.48 $572.10 $324.30 $513.26 $401.43
1976 $10,225.14 $1,007.97 $353.84 $831.88 $401.43
1977 $11,106.94 $1,331.25 $384.35 $1,044.48 $401.43
1978 $13,742.97 $1,985.37 $771.47 $1,304.40 $628.86
1979 $14,549.72 $2,544.00 $1,390.28 $1,721.12 $1,169.47
1980 $17,484.06 $3,674.55 $4,504.18 $2,189.48 $3,322.96
1981 $17,767.36 $4,759.89 $9,242.87 $3,136.91 $7.633.23
1982 $11,069.42 $4,060.53 $12,287.68 $4,342.50 $15,080.32
1983 $17,861.17 $7,918.92 $22,564.15 $5,299.11 $16,800.33
1984 $13,320.83 $6,870.98 $24,507.57 $6,315.87 $25,128.54
1985 $16,341.47 $9,740.36 $35,525.07 $7,455.10 $29,535.52
1986 $20,168.86 $13,630.10 $50,784.18 $8,799.98 $34,628.17
1987 $20,412.76 $14,756.17 $67,395.88 $9,733.84 $47,846.74
1988 $15,140.72 $13,720.06 $70,307.97 $12,205.38 $69,072.85
1989 $18,236.40 $20,147.70 $93,944.91 $15,024.63 $75,987.05
1990 $17,617.26 $24,832.66 $100,621.51 $20,166.92 $85,516.92
1991 $18,480.30 $29,338.64 $115,693.88 $23,007.14 $93,744.67
1992 $20,075.05 $35,872.34 $138,105.50 $26,629.00 $104,534.86
1993 $22,682.93 $43,950.45 $166,806.37 $29,812.83 $114,146.83
1994 $22,589.12 $46,958.73 $177,680.42 $32,902.19 $125,345.76
1995 $27,317.08 $60,054.77 $227,122.37 $35,366.26 $134,586.02
1996 $28,592.88 $66,292.19 $260,842.92 $38,618.72 $156,485.91
1997 $43,063.90 $105,131.93 $413,416.38 $42,835.20 $172,883.35
</TABLE>
No adjustment has been made for any income taxes payable by shareholders on
capital gain distributions and dividends invested in shares. This illustration
reflects no sales charge.
12
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS
July 31, 1997
================================================================================
<TABLE>
<CAPTION>
VALUE
SHARES SECURITY (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK - (91.60%)
AEROSPACE - (1.00%)
1,080,000 Boeing Co........................................................... $ 63,517,500
-----------------
AGRICULTURE - (1.31%)
3,695,000 Archer-Daniels-Midland Co........................................... 83,137,500
-----------------
BANKS AND SAVINGS & LOANS - (13.32%)
1,775,000 Banc One Corp....................................................... 99,621,875
1,990,000 BankAmerica Corp.................................................... 150,245,000
300,000 Barnett Banks, Inc.................................................. 17,081,250
1,008,136 Citicorp............................................................ 136,854,462
851,500 First Bank System, Inc.............................................. 75,783,500
15,000 First Union Corp.................................................... 1,521,562
473,000 Golden West Financial Corp. ........................................ 39,791,125
1,532,600 State Street Corp................................................... 85,921,388
290,000 TCF Financial Corporation........................................... 15,533,125
816,000 Wells Fargo & Co.................................................... 224,349,000
-----------------
846,702,287
-----------------
BUILDING MATERIALS - (3.24%)
2,023,600 Martin Marietta Material, Inc....................................... 69,940,675
2,906,200 Masco Corporation................................................... 136,228,125
-----------------
206,168,800
-----------------
CHEMICALS - (0.01%)
6,000 Dow Chemical Co..................................................... 570,000
-----------------
CONSUMER PRODUCTS - (4.84%)
16,000 American Home Products Corp. ....................................... 1,319,000
80,000 Coca-Cola Company................................................... 5,540,000
30,000 Fortune Brands, Inc................................................. 1,063,125
30,000 Gallaher Group PLC - ADR*........................................... 538,125
80,000 General Electric Co................................................. 5,615,000
15,640 Nestle S.A. (Switzerland) ADR (144A)................................ 992,419
1,131,000 Nestle S.A. (Switzerland) (Sponsored ADR for Reg. Shrs.)............ 71,766,361
1,078,000 Nike, Inc........................................................... 67,172,875
3,400,000 Philip Morris Cos., Inc............................................. 153,425,000
-----------------
307,431,905
-----------------
DIVERSIFIED FINANCIAL SERVICES - (4.59%)
2,535,000 American Express Co................................................. 212,306,250
2,200,000 Freddie Mac......................................................... 79,337,500
-----------------
291,643,750
-----------------
ELECTRONICS - (0.26%)
427,875 Molex Incorporated.................................................. 16,673,754
-----------------
ENERGY - (10.65%)
13,200 Amerada Hess Corp. ................................................. 776,325
</TABLE>
13
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1997
===============================================================================
<TABLE>
<CAPTION>
VALUE
SHARES SECURITY (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK - CONTINUED
ENERGY - CONTINUED
9,600 Amoco Corp. ........................................................ $ 902,400
32,000 Atlantic Richfield Co. ............................................. 2,394,000
527,600 British Petroleum Company PLC - ADR................................. 43,494,025
1,850,900 Burlington Resources, Inc........................................... 87,455,025
52,000 Chevron Corp........................................................ 4,114,500
1,193,800 Cooper Cameron Corp.*............................................... 69,986,525
1,030,040 EVI, Inc.*.......................................................... 50,343,205
160,000 Exxon Corp.......................................................... 10,280,000
3,268,400 Halliburton Co...................................................... 150,346,400
16,000 Mobil Corp.......................................................... 1,224,000
290,000 Nabors Industries, Inc.*............................................ 9,062,500
1,378,070 Noble Affiliates, Inc......................................... 57,189,905
966,000 Schlumberger Ltd.................................................... 73,778,250
1,258,100 Smith International Inc.*........................................... 90,190,044
16,000 Sonat, Inc.......................................................... 798,000
800,000 Tosco Corporation................................................... 25,050,000
-----------------
677,385,104
-----------------
ENTERTAINMENT - (0.44%)
350,100 The Walt Disney Company............................................. 28,292,456
-----------------
FOOD & RESTAURANT - (3.47%)
3,625,000 McDonald's Corp..................................................... 194,843,750
1,237,000 Tyson Foods, Inc.................................................... 25,938,344
-----------------
220,782,094
-----------------
INTERNATIONAL CLOSED-END INVESTMENT COMPANY - (0.51%)
3,025,167 Morgan Stanley Asia Pacific Fund Inc................................ 32,331,472
-----------------
INVESTMENT FIRMS - (4.52%)
834,400 Donaldson, Lufkin & Jenrette, Inc................................... 54,027,400
530,000 J.P. Morgan & Co., Inc.............................................. 61,413,750
3,286,072 Morgan Stanley, Dean Witter & Discover Co........................... 171,902,642
-----------------
287,343,792
-----------------
LIFE INSURANCE - (1.52%)
1,601,250 SunAmerica, Inc..................................................... 96,875,625
-----------------
MANUFACTURING - (0.00%)
30,000 Maytag Corp......................................................... 875,625
-----------------
MARKETING - (0.01%)
1,666 ACNielsen Corp.*.................................................... 35,819
-----------------
PAPER PRODUCTS - (0.63%)
436,100 Fort Howard Corp.*.................................................. 24,367,087
12,000 International Paper Co.............................................. 672,000
280,000 Kimberly-Clark Corp................................................. 14,192,500
</TABLE>
14
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1997
================================================================================
<TABLE>
<CAPTION>
VALUE
SHARES SECURITY (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK - CONTINUED
PAPER PRODUCTS - CONTINUED
16,200 Union Camp Corp..................................................... $ 948,713
-----------------
40,180,300
PHARMACEUTICAL AND HEALTH CARE - (5.27%) -----------------
434,000 Bristol-Myers Squibb Co............................................. 34,041,875
5,000 Cognizant Corp..................................................... 213,125
295,000 Eli Lilly & Co...................................................... 33,335,000
364,000 Johnson & Johnson................................................... 22,681,750
164,000 Merck & Co., Inc.................................................... 17,045,750
488,000 Novartis AG - ADR................................................... 39,131,500
1,200,000 Pfizer, Inc......................................................... 71,550,000
1,205,100 SmithKline Beecham PLC - ADR........................................ 117,195,975
-----------------
335,194,975
-----------------
PROPERTY/CASUALTY INSURANCE - (11.80%)
1,177,383 The Allstate Corp................................................... 93,013,257
358,875 American International Group, Inc................................... 38,220,187
770,000 W.R. Berkley Corp................................................... 44,323,125
1,040,600 Chubb Corp.......................................................... 73,362,300
970,700 General Re Corp..................................................... 202,754,962
580,000 Progressive Corp. (Ohio)............................................ 62,205,000
824,550 Transatlantic Holdings Inc.......................................... 61,016,700
1,860,532 Travelers Group Inc................................................. 133,842,021
844,000 20th Century Industries, Inc........................................ 20,414,250
472,200 UNUM Corp........................................................... 21,012,900
-----------------
750,164,702
-----------------
PUBLISHING - (1.93%)
5,000 Dun & Bradstreet Corp.............................................. 135,000
610,800 Gannett Co., Inc.................................................... 60,660,075
655,000 Harcourt General, Inc............................................... 30,948,750
580,000 Tribune Co.......................................................... 30,703,750
1,000 Washington Post Co., Class B........................................ 413,750
-----------------
122,861,325
-----------------
REAL ESTATE - (2.63%)
275,310 Crescent Operating, Inc.*........................................... 4,404,960
2,753,100 Crescent Real Estate Equities, Inc.................................. 86,034,375
308,500 Federal Realty Investment Trust..................................... 8,175,250
70,500 Kimco Realty Corp................................................... 2,397,000
700,000 Rouse Company....................................................... 20,781,250
200,000 Saul Centers, Inc................................................... 3,500,000
6,700 Simon DeBartolo Group, Inc.......................................... 214,400
341,800 United Dominion Realty Trust, Inc................................... 4,870,650
</TABLE>
15
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1997
================================================================================
<TABLE>
<CAPTION>
VALUE
SHARES SECURITY (NOTE 1)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK - CONTINUED
REAL ESTATE - CONTINUED
484,200 Vornado Realty Trust................................................ $ 32,471,663
100,000 Weingarten Realty, Investors........................................ 4,362,500
-----------------
167,212,048
-----------------
SATELLITE TELECOMMUNICATIONS - (0.13%)
545,000 Loral Space & Communications*....................................... 8,515,625
-----------------
TECHNOLOGY - (11.66%)
3,385,000 Hewlett-Packard Co.................................................. 237,160,905
1,270,000 Intel Corp.......................................................... 116,562,187
2,508,000 International Business Machines Corp................................ 265,221,000
1,498,000 Komag Inc.*......................................................... 31,317,563
430,000 Novellus Systems, Inc.*............................................. 45,123,125
1,000,000 Sun Microsystems, Inc.*............................................. 45,718,750
-----------------
741,103,530
-----------------
TELECOMMUNICATIONS - (3.26%)
2,680,000 AirTouch Communications, Inc.*...................................... 88,272,500
143,590 Global Star Telecommunications*..................................... 4,576,931
970,000 Motorola, Inc....................................................... 77,903,125
10,000 SBC Communications, Inc............................................. 591,875
1,935,000 360 (Degree) Communication Company*................................. 35,676,563
-----------------
207,020,994
-----------------
TRANSPORTATION - (4.55%)
1,734,900 Burlington Northern Santa Fe Corp................................... 167,526,281
1,371,150 Illinois Central Corp............................................... 50,561,156
991,000 Union Pacific Corp.................................................. 71,042,313
-----------------
289,129,750
-----------------
UTILITIES - (0.04%)
10,000 Carolina Power & Light Co. ......................................... 356,250
12,000 Duke Power Corp..................................................... 608,250
12,000 Edison International ............................................... 303,000
8,000 Enova Corp. ........................................................ 194,000
6,000 New England Electric System......................................... 223,875
16,800 Southern Co. ....................................................... 368,550
9,000 Wisconsin Energy Corp. ............................................. 230,063
-----------------
2,283,988
-----------------
WASTE MANAGEMENT - (0.01%)
12,000 Waste Management Inc................................................ 384,000
-----------------
Total Common Stocks - (identified cost $3,671,680,307)......... 5,823,818,720
-----------------
</TABLE>
16
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
SCHEDULE OF INVESTMENTS - Continued
July 31, 1997
<TABLE>
==============================================================================================================
<CAPTION>
VALUE
SHARES/PRINCIPAL SECURITY (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCK - (0.50%)
162,394 AirTouch Communications, Inc., 4.25%, Ser. C Conv. Pfd.............. $ 8,809,874
50,000 Banc One Corp., $3.50, Ser. C Conv. Pfd............................. 5,406,250
200,000 Devon Financing Trust, $3.25, Conv. Pfd............................. 14,700,000
60,000 Vornado Realty Trust, 6.50%, Ser. A Conv. Pfd....................... 3,180,000
-----------------
Total Preferred Stocks - (identified cost $26,788,132)......... 32,096,124
-----------------
SHORT TERM INVESTMENTS - (7.84%)
$ 40,000,000 Federal Home Loan Bank Discount Note, 5.35%, 08/07/97............... 39,964,333
16,630,000 Federal Home Loan Bank Discount Note, 5.35%, 08/08/97............... 16,612,700
22,285,000 Federal Home Loan Bank Discount Note, 5.36%, 08/15/97............... 22,238,548
21,150,000 Federal Home Loan Mortgage Corporation Discount Note,
5.37%, 08/04/97................................................ 21,140,536
21,150,000 Federal Home Loan Mortgage Corporation Discount Note,
5.38%, 08/05/97................................................ 21,137,357
35,000,000 Federal Home Loan Mortgage Corporation Discount Note,
5.36%, 08/06/97................................................ 34,973,944
22,565,000 Federal Home Loan Mortgage Corporation Discount Note,
5.36%, 08/12/97................................................ 22,528,044
34,225,000 Federal Home Loan Mortgage Corporation Discount Note,
5.38%, 08/13/97................................................ 34,163,623
47,800,000 Federal Home Loan Mortgage Corporation Discount Note,
5.42%, 08/28/97................................................ 47,605,693
38,240,000 Federal Home Loan Mortgage Corporation Discount Note,
5.41%, 08/29/97................................................ 38,079,095
43,375,000 Federal National Mortgage Association Discount Note,
5.40%, 08/01/97................................................ 43,375,000
33,560,000 Federal National Mortgage Association Discount Note,
5.39%, 08/04/97................................................ 33,544,926
34,545,000 Federal National Mortgage Association Discount Note,
5.39%, 08/19/97................................................ 34,451,901
35,000,000 Federal National Mortgage Association Discount Note,
5.42%, 08/20/97................................................ 34,899,881
21,635,000 Federal National Mortgage Association Discount Note,
5.39%, 08/21/97................................................ 21,570,215
32,000,000 Federal National Mortgage Association Discount Note,
5.43%, 08/26/97................................................ 31,879,333
-----------------
Total Short Term Investments - (identified cost $498,165,129).. 498,165,129
<PAGE>
VALUE
SHARES/PRINCIPAL SECURITY (NOTE 1)
- --------------------------------------------------------------------------------------------------------------
Total Investments - (identified cost $4,196,633,568)(99.94%)(a) $ 6,354,079,973
Other Assets Less Liabilities- (0.06%)......................... 3,832,419
-----------------
Net Assets - (100%)................................... $ 6,357,912,392
=================
(a) Aggregate cost for Federal Income Tax purposes is $4,196,606,276. At July
31, 1997 unrealized appreciation (depreciation) of securities for Federal
Income Tax purposes was as follows:
Unrealized appreciation............................................. $ 2,172,018,832
Unrealized depreciation............................................. (14,545,135)
------------------
Net appreciation............................................... $ 2,157,473,697
=================
* Non-Income Producing Security
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
At July 31, 1997
<TABLE>
====================================================================================
<S> <C>
ASSETS:
Investments in securities, at value (identified cost $4,196,633,568) (Note 1)........ $ 6,354,079,973
Cash................................................................................. 492,117
Receivables:
Investments sold................................................................. 7,285,709
Capital stock sold............................................................... 53,300,482
Dividends and interest........................................................... 6,013,606
Note receivable (Note 7)............................................................. 1,875,000
Other Assets......................................................................... 86,864
-----------------
Total assets................................................................ 6,423,133,751
-----------------
LIABILITIES:
Payables:
Investment securities purchased.................................................. 55,265,046
Capital stock reacquired......................................................... 3,736,274
Accrued expenses..................................................................... 6,010,045
Other liabilities.................................................................... 209,994
-----------------
Total liabilities........................................................... 65,221,359
-----------------
NET ASSETS ............................................................................... $ 6,357,912,392
=================
NET ASSETS CONSIST OF:
Undistributed net investment income.................................................. $ 12,302,594
Unrealized appreciation on investments............................................... 2,157,446,406
Accumulated net realized gains from investments and foreign currency transactions. 187,632,195
Paid-in capital...................................................................... 4,000,531,197
-----------------
Net assets.................................................................. $ 6,357,912,392
=================
CLASS A SHARES
Net assets....................................................................... $ 4,054,767,250
Shares outstanding............................................................... 177,020,829
Net asset value and redemption price per share (net assets/shares outstanding)... $ 22.91
=========
Maximum offering price per share (100/95.25 of $22.91)........................... $ 24.05
=========
CLASS B SHARES
Net assets....................................................................... $ 1,196,250,397
Shares outstanding............................................................... 52,832,927
Net asset value and redemption price per share (net assets/shares outstanding)... $ 22.64
=========
CLASS C SHARES
Net assets....................................................................... $ 573,309,405
Shares outstanding............................................................... 25,232,556
Net asset value and redemption price per share (net assets/shares outstanding)... $ 22.72
=========
CLASS Y SHARES
Net assets....................................................................... $ 533,585,340
Shares outstanding............................................................... 23,081,832
Net asset value and redemption price per share (net assets/shares outstanding)... $ 23.12
=========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF OPERATIONS
For the year ended July 31, 1997
<TABLE>
========================================================================================
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends........................................................................ $ 56,380,629
Interest ........................................................................ 17,469,906
-----------------
Total income............................................................. 73,850,535
Expenses:
Management fees (Note 3)........................................ $ 22,385,196
Custodian fees.................................................. 574,525
Transfer agent fees
Class A.................................................... 2,127,337
Class B.................................................... 1,079,025
Class C.................................................... 309,445
Class Y.................................................... 782
Audit fees...................................................... 45,326
Legal fees...................................................... 180,056
Accounting fees (Note 3)........................................ 127,087
Reports to shareholders......................................... 240,394
Directors fees and expenses..................................... 153,972
Registration and filing fees.................................... 531,626
Miscellaneous................................................... 241,204
Service fees paid under distribution plan (Note 4)
Class A.................................................... 5,705,119
Class B.................................................... 6,131,202
Class C.................................................... 2,868,760
---------------
Total expenses.......................................................... 42,701,056
Fee Reduction (Note 6)........................................................... (78,317)
-----------------
Net expenses................................................................ 42,622,739
-----------------
Net investment income................................................... 31,227,796
-----------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain from:
Investment transactions.......................................................... 283,675,049
Foreign currency transactions................................................... 901,551
Net increase in unrealized appreciation of
investments during the year..................................................... 1,574,058,965
-----------------
Net realized and unrealized gain on investments......................... 1,858,635,565
-----------------
Net increase in net assets resulting from operations.................... $ 1,889,863,361
=================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
==============================================================================================================
<CAPTION>
FOR THE YEARS ENDED
JULY 31,
------------------------------------
1997 1996
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income............................................. $ 31,227,796 $ 25,572,187
Net realized gain from investments and
foreign currency transactions............................ 284,576,600 138,061,957
Increase in unrealized appreciation of investments................ 1,574,058,965 65,657,908
---------------- -----------------
Net increase in net assets resulting
from operations.......................................... 1,889,863,361 229,292,052
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)..................................... (1,030,857) --
Class C ($0.04 per share)..................................... (466,410) --
Class Y ($0.06 per share)..................................... (154,449) --
Realized gains from investment transactions
Class A ($0.70 and $1.01 per share, respectively)............. (102,106,133) (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).................................... 2,068,532,408 822,481,849
---------------- -----------------
Total increase in net assets.................................. 3,800,377,974 911,062,810
NET ASSETS:
Beginning of year................................................. 2,557,534,418 1,646,471,608
---------------- -----------------
End of year (including undistributed net income of $12,302,594
and $8,982,377, respectively)................................. $ 6,357,912,392 $ 2,557,534,418
================ =================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 1997
================================================================================
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. On
September 1, 1996 the Fund commenced the offering of Class Y Shares. Class Y
shares are sold at net asset value and are not subject to any contingent
deferred sales charge. Class Y shares are only available to certain qualified
investors. 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 year ended July 31, 1997, were $2,618,806,412 and
$858,815,041, respectively.
21
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1997
================================================================================
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 the average daily net assets for the first $250 million, .65%
of the average daily net assets on the next $250 million, .55% of average daily
net assets on the next $2.5 billion, .54% of the average daily net assets on
the next $1 billion, .53% of the average daily net assets on the next $1
billion, .52% of the average daily net assets on the next $1 billion, .51% of
the average daily net assets on the next $1 billion and .50% of the average
daily net assets in excess of $7 billion.
Effective June 1, 1997, Davis Distributors, LLC (the "Distributor"), and
subsidiary of the Adviser, became the Underwriter and Distributor of the Fund.
Until June 1, 1997, the Adviser also acted as Underwriter and Distributor. The
Distributor is paid for registering Fund shares for sale in various states. The
fee for the year ended July 31, 1997 amounted to $13,169. The Distributor is
also paid for certain transfer agent services. The fee for the year ended July
31, 1997 amounted to $151,226.
The Adviser is paid for certain accounting services. The fee amounted to
$127,087 for the year ended July 31, 1997. Certain directors and the officers
of the Fund are also directors and officers of the general partner of the
Adviser.
Davis Selected Advisers-NY, Inc. ("DSA-NY"), wholly-owned subsidiary of
the Adviser, acts as sub-adviser to the Fund. DSA-NY performs research and
portfolio management services for the Fund under a Sub-Advisory Agreement with
the Adviser. The Fund pays no fees directly to DSA-NY.
The Fund has adopted procedures to treat Shelby Cullom Davis & Co.
("SCD") as an affiliate of the Adviser. During the year ended July 31, 1997,
SCD received $219,720 in commission on the purchases and sales of portfolio
securities in the Fund.
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 year ended July 31, 1997, Davis Distributors, LLC (or its
predecessor, Davis Selected Advisrs, L.P.), the Fund's Underwriter (the
"Underwriter") received $16,907,761 from commissions earned on sales of Class A
shares of the Fund of which $2,658,036 was retained by the Underwriter and the
remaining $14,249,725 was reallowed to investment dealers. The Underwriter 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 year ended July 31, 1997 was $5,705,119.
22
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1997
================================================================================
NOTE 4 - DISTRIBUTION AND UNDERWRITING FEES - CONTINUED
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 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 year ended July 31, 1997, Class B shares of the Fund made
distribution plan payments which included commissions of $4,580,590 and
maintenance fees of $1,550,612.
Commissions earned by the Distributor during the year ended July 31,
1997 on the sale of Class B shares of the Fund amounted to $25,460,443 of which
$24,164,532 was reallowed to qualified selling dealers.
The Distributor intends to seek payment from Class B shares of the Fund
in the amount of $32,530,736, 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 year
ended July 31, 1997 the Distributor received $541,288 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 year ended July 31, 1997, Class C shares of the Fund made
distribution payments of $2,868,760. During the year ended July 31, 1997, the
Distributor received $83,704 in contingent deferred sales charges from Class C
shares of the Fund.
23
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued July 31, 1997
================================================================================
NOTE 5 - CAPITAL STOCK
At July 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
- -------
YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996
------------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed.............................. 62,568,994 $ 1,170,853,844 38,287,694 $ 576,914,471
Shares issued in reinvestment of distributions. 5,802,406 102,355,058 6,967,930 100,617,055
------------- ---------------- ------------ --------------
68,371,400 1,273,208,902 45,255,624 677,531,526
Shares reacquired.............................. (32,529,756) (595,232,360) (13,593,507) (204,699,701)
------------- ---------------- ------------ -------------
Net increase.............................. 35,841,644 $ 677,976,542 31,662,117 $ 472,831,825
============= ================ ============ ==============
</TABLE>
CLASS B
- -------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996
------------------------------ -------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares subscribed.............................. 35,141,408 $ 659,411,142 16,973,142 $ 254,230,001
Shares issued in reinvestment of distributions. 710,105 12,448,299 311,026 4,472,559
------------ ---------------- ------------ --------------
35,851,513 671,859,441 17,284,168 258,702,560
Shares reacquired.......................... (2,169,646) (39,943,226) (895,972) (13,453,459)
------------ ---------------- ------------ --------------
Net increase.............................. 33,681,867 $ 631,916,215 16,388,196 $ 245,249,101
============ ================ ============ ==============
</TABLE>
CLASS C
- -------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JULY 31, 1997 JULY 31, 1996
----------------------------- ---------------------------
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
Shares subscribed.............................. 18,485,151 $ 345,126,337 7,270,790 $ 109,392,876
Shares issued in reinvestment of distributions. 275,156 4,837,597 97,098 1,400,156
------------ ---------------- ----------- --------------
18,760,307 349,963,934 7,367,888 110,793,032
Shares reacquired.......................... (1,280,225) (23,652,939) (426,267) (6,392,109)
------------ ---------------- ------------ --------------
Net increase.............................. 17,480,082 $ 326,310,995 6,941,621 $ 104,400,923
============ ================ ============ ==============
</TABLE>
24
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
NOTES TO FINANCIAL STATEMENTS - Continued
July 31, 1997
================================================================================
NOTE 5 - CAPITAL STOCK - CONTINUED
CLASS Y
- -------
YEAR ENDED
JULY 31, 1997
------------------------------
SHARES AMOUNT
------ ------
Shares subscribed.............................. 25,413,416 $ 480,571,559
Shares issued in reinvestment of distributions 38,351 681,489
----------- ---------------
25,451,767 481,253,048
Shares reacquired.......................... (2,369,935) (48,924,392)
----------- ---------------
Net increase ........................ 23,081,832 $ 432,328,656
=========== ===============
NOTE 6 - CUSTODY FEES
Under an agreement with the custodian bank, custody fees are reduced
by credits for cash balances. Such reductions amounted to $78,317 during the
year ended July 31, 1997.
NOTE 7 - NOTE RECEIVABLE
At July 31, 1997, Davis New York Venture Fund owned a note receivable
from the Robert Plan Corporation in the amount of $1,875,000. Principal plus
accrued interest at 5% over the prime rate of The Chase Manhattan Bank is
payable in eight equal installments on January 31, 1997, 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.
25
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS
CLASS A
================================================================================
Financial Highlights for a share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
----------------------------------------------
1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period....... $ 15.24 $ 14.56 $ 12.04 $ 12.08 $ 10.70
-------- -------- -------- -------- --------
Income From Investment Operations
- ---------------------------------
Net Investment Income................. .18 .20 .14 .16 .10
Net Gains on Securities
(both realized and unrealized).... 8.37 1.64 2.95 .54 1.98
-------- -------- -------- -------- --------
Total From Investment Operations.... 8.55 1.84 3.09 .70 2.08
Less Distributions
- ------------------
Dividends (from net investment (.18) (.15) (.12) (.16) (.10)
income)..............................
Distributions From Realized Capital
Gains................................ (.70) (1.01) (.45) (.58) (.59)
Distributions From Paid In Capital.... - - - - (.01)
------- ------- ------- ------- --------
Total Distributions................ (.88) (1.16) (.57) (.74) (.70)
-------- -------- ------- -------- --------
Net Asset Value, End of Period............ $ 22.91 $ 15.24 $ 14.56 $ 12.04 $ 12.08
======== ======== ======== ======== ========
Total Return (1)........................... 57.83% 13.04% 27.21% 5.99% 20.20%
- -------------
Ratios/Supplemental Data
Net Assets, End of Period (000
omitted)............................. 4,054,767 2,151,444 1,594,885 1,076,779 738,698
Ratio of Expenses to Average Net
Assets............................... .89% .87% .90% .87% .89%
Ratio of Net Income to Average Net
Assets............................... .98% 1.30% 1.11% 1.19% .85%
Portfolio Turnover Rate............... 23.54% 19% 15% 13% 24%
Average Commisison Rate per share..... $.0600 - - - -
</TABLE>
(1) Sales charges are not reflected in calculation.
26
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS
================================================================================
Financial Highlights for a share of capital stock outstanding throughout each
period.
<TABLE>
<CAPTION>
CLASS B CLASS C
----------------------------------- -------------------------------------
DECEMBER 1, 1994 DECEMBER 20, 1994
(COMMENCEMENT (COMMENCEMENT
YEAR YEAR OF OPERATIONS) YEAR YEAR OF OPERATIONS)
ENDED ENDED THROUGH ENDED ENDED THROUGH
7/31/97 7/31/96 7/31/95 7/31/97 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) .02 .04 (.01)
Net Gains on Securities
(both realized and
unrealized)................... 8.29 1.62 3.56 8.32 1.62 3.32
-------- -------- ---------- -------- -------- ------------
Total From Investment
Operations............. 8.30 1.66 3.55 8.34 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.... $ 22.64 $ 15.08 $ 14.43 $ 22.72 $ 15.12 $ 14.47
======== ======== ======== ======== ======== =========
Total Return (1) ................... 56.47% 11.81% 26.07%* 56.59% 11.78% 26.42%*
- -------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period
(000 omitted)........ 1,196,250 288,835 39,857 573,309 117,255 11,729
Ratio of Expenses to Average
Net Assets........... 1.79%(2) 1.73% 1.78%* 1.73% 1.73% 1.78%*
Ratio of Net Income to Average .07% .44% .23%* .13%* .44% .23%*
Net Assets...........
Portfolio Turnover Rate....... 23.54% 19% 15% 23.54% 19% 15%
Average Commisssion Rate
par share ................ $.0600 - - $.0600 - -
</TABLE>
(1) Contingent deferred sales charges are not reflected in calculation.
(2) Ratio of expenses to average net assets after the reduction of custodian
fees under a custodian agreement was 1.78%. Prior to 1996, such reductions
were reflected in the expense ratios.
* Annualized.
27
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
FINANCIAL HIGHLIGHTS
================================================================================
Financial Highlights for a share of capital stock outstanding throughout each
period.
CLASS Y
OCTOBER 2, 1996
(COMMENCEMENT
OF OPERATIONS)
THROUGH
7/31/97
-------
Net Asset Value, Beginning of Period........................... $ 16.66
--------
Income From Investment Operations
- ---------------------------------
Net Investment Income (Loss).............................. .15
Net Gains on Securities (both realized and unrealized).... 7.07
--------
Total From Investment Operations........................ 7.22
Less Distributions
- ------------------
Dividends (from net investment income).................... (.06)
Distributions From Realized Capital Gains................. (.70)
--------
Total Distributions.................................... (.76)
--------
Net Asset Value, End of Period................................ $ 23.12
========
Total Return .................................................. 44.71%
- -------------
Ratios/Supplemental Data
- ------------------------
Net Assets, End of Period (000 omitted)................... 533,585
Ratio of Expenses to Average Net Assets.................. .62%*
Ratio of Net Income to Average Net Assets................. 1.19%*
Portfolio Turnover Rate................................... 23.54%
Average Commission Rate par share......................... $.0600
* Annualized.
28
<PAGE>
DAVIS NEW YORK VENTURE FUND, INC.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
================================================================================
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
OF DAVIS NEW YORK VENTURE FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Davis New York Venture Fund, Inc., including the schedule of portfolio
investments, as of July 31, 1997, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Davis New York Venture Fund, Inc. as of July 31, 1997, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
August 21, 1997
29
<PAGE>
DAVIS NEW YORK
VENTURE FUND, INC.
124 East Marcy Street, Santa Fe, New Mexico 87501
================================================================================
DIRECTORS OFFICERS
Wesley E. Bass, Jr. Jeremy H. Biggs
Jeremy H. Biggs Chairman
Marc P. Blum Shelby M. C. Davis
Shelby M.C. Davis President
Eugene M. Feinblatt Kenneth C. Eich
Jerry D. Geist Vice President
D. James Guzy Eileen R. Street
G. Bernard Hamilton Vice President,
LeRoy E. Hoffberger Treasurer & Assistant Secretary
Laurence W. Levine Sam P. Ynzunza
Christian R. Sonne Vice President& Secretary
Edwin R. Werner Christopher C. Davis
Vice President
Andrew A. Davis
Vice President
Carolyn H. Spolidoro
Vice President
Sharra L. Reed
Assistant Treasurer
& Assistant Secretary
INVESTMENT ADVISER
Davis Selected Advisers, L.P.
124 East Marcy Street
Santa Fe, New Mexico 87501
DISTRIBUTOR
Davis Distributors, LLC
124 East Marcy Street
Santa Fe, New Mexico 87501
TRANSFER AGENT & CUSTODIAN
State Street Bank and Trust Company
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406
COUNSEL
D'Ancona & Pflaum
30 North LaSalle Street
Chicago, Illinois 60602
AUDITORS
Tait, Weller & Baker
Two Penn Center Plaza, Suite 700
Philadelphia, Pennsylvania 19102-1707
================================================================================
FOR MORE INFORMATION ABOUT DAVIS NEW YORK VENTURE FUND, INC. INCLUDING
MANAGEMENT FEES, CHARGES AND EXPENSES, SEE THE CURRENT PROSPECTUS WHICH MUST
PRECEDE OR ACCOMPANY THIS REPORT.
================================================================================
