Correspondence 0001036325-23-000023 from DAVIS NEW YORK VENTURE FUND INC (CIK 0000071701)
DAVIS NEW YORK VENTURE FUND INC (CIK 0000071701)
Date: Nov. 20, 2023 · CIK: 0000071701 · Accession: 0001036325-23-000023
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File numbers found in text: 811-01701
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CORRESP
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EDGAR CORRESPONDENCE
November 20, 2023
U.S. Securities and Exchange Commission
Division of Investment Management – Disclosure Review and Accounting Office
100 F Street NE
Washington DC 20549
Attention: Ryan Sutcliffe
Re:
Davis New York Venture Fund, Inc. (40 Act File No.: 811-01701)
Dear Mr. Sutcliffe:
This letter is in response to comments you provided on November 9, 2023 and November 16, 2023, with respect to the 485(a) filing of
Davis Research Fund, a series of Davis New York Venture Fund, Inc., as identified above. SEC comments are in bold. Registrant’s responses immediately follow.
1.
We request that you respond to these comments no later than five business days before
the filing is scheduled to become effective automatically. If this is not possible, we request that you file an amendment under Rule 485(b) delaying effectiveness as needed until Staff comments result.
We confirm that we will respond no later than five business days before the filing is scheduled to become effective automatically.
2.
Please fill in all blanks, brackets, and otherwise missing information sufficiently
in advance of effectiveness for review.
We confirm that all blanks, brackets, and otherwise missing information will be filled in in advance of effectiveness for review.
3.
Please bold the fee and expense paragraph, the example paragraph, the portfolio
turnover paragraph, and the financial highlights paragraph under Form N-1A. With regards to expenses, please provide fees and expenses and the example sufficiently in advance of effectiveness for review.
Please find the changes below, as well as the fees and expenses and the example.
Fees and Expenses of the Fund
These tables describe the fees and expenses that you may pay if you buy, hold, and sell shares of
the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts with respect to Class A shares if you
and your family invest, or agree to invest in the future, at least $100,000 in Davis Funds. More information about these and other discounts is available from your financial intermediary and in “How to Choose a Share Class (Class A Shares)” on page 16 of the Fund’s prospectus and “Selecting
the Appropriate Class of Shares” on page 32 of the Fund’s statement of additional information.
Shareholder Fees*
(fees paid directly from your investment)
Class A shares
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
4.75%
Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of the net asset value of the shares redeemed or the total cost of such shares)
None
Redemption Fee
(as a percentage of total redemption proceeds)
None
*
Shareholder fees do not apply to current and former directors, officers and employees of the Fund or its investment adviser and sub-adviser, as such investors are all
eligible for a front-end sales charge waiver.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Class A shares
Management Fees
0.55%
Distribution and/or Service (12b-1) Fees
0.00%
Other Expenses
0.15%
Total Annual Operating Expenses
0.70%
…
Example.
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your
costs would be:
1 Year
3 Years
5 Years
10 Years
Class A shares
$543
$688
$846
$1,304
…
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating
expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 8% of the average value of its portfolio.
…
Financial Highlights
The financial highlights table is intended to help you understand the Fund’s financial performance for the past 5
years ended July 31, 2023. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of
all dividends and distributions).
This information has been audited by KPMG LLP, whose report, along with the Fund’s financial statements, are
included in the annual report, which is available upon request.
4.
Please consider whether increased tax expenses should be included in shareholder
concentration risk.
We have modified “Shareholder Concentration Risk” as follows:
Shareholder
Concentration Risk. From time to time, a relatively large percentage (over 20%) of the Fund’s shares may be held by related
shareholders. A large redemption by one or more of such shareholders may reduce the Fund’s liquidity, may increase the Fund’s transactions and transaction costs, may result in substantial capital gains distributions for shareholders, and may
increase the Fund’s ongoing operating expenses, which could negatively impact the remaining shareholders of the Fund.
5.
Please consider disclosure related to the Israel-Hamas war and the resulting elevated
risk of terrorism in the United States.
We have modified “Stock Market Risk” as follows:
Stock Market
Risk. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices, including the possibility of sharp declines. As an example, U.S. and international markets have experienced volatility in recent
months and years due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic, uncertainties regarding interest rates, rising inflation, trade tensions and the threat of
tariffs imposed by the U.S. and other countries. While COVID-19 is no longer a global pandemic as of 2023, the recovery from COVID-19 may last for a prolonged period of time. In addition, as a result of continuing political tensions and armed
conflicts, including the war between Ukraine and Russia, the U.S. and the European Union imposed sanctions on certain Russian individuals and companies, including certain financial institutions, and have limited certain exports and imports to and
from Russia. The war may continue to contribute market volatility. The Israel-Hamas war may lead to overall economic uncertainty and negative impacts on the global economy and major financial markets. These developments as well as other events
could result in further market volatility and negatively affect financial asset prices, the liquidity of certain securities and the normal operations of securities exchanges and other markets. Continuing market volatility as a result of recent
market conditions or other events may have an adverse effect on the performance of the Fund.
6.
Please confirm that the fund is a limited derivatives user under 18f-4 and limits
derivative exposure to 10% of assets.
We confirm that the Fund is prohibited from investing in derivatives, excluding certain currency and interest rate hedging
transactions. This restriction is not fundamental and may be changed by the Fund without a shareholder vote. If the Fund does determine to invest in derivatives in the future, it will comply with Rule 18f-4 under the 1940 Act.
7.
Under item 17(a), please make clear the principal occupation for the last five years
for Ms. Cohen and Ms. McLoughry.
We have modified these sections as follows:
Lisa J. Cohen
(born 04/25/89, Davis Funds officer since 2021). Vice President and Secretary of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of two portfolios), Clipper Funds Trust (consisting of one portfolio), and Davis
Fundamental ETF Trust (consisting of four portfolios); Vice President, Chief Legal Officer, and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser. Prior to assuming
these positions, Ms. Cohen worked for Honeywell International, Inc. (01/2020-06/2021) and as an attorney at Davis Selected Advisers, L.P. (12/2015-01/2020).
Michaela
McLoughry (born 03/21/81, Davis Funds officer since 2023). Vice President and Chief Compliance Officer of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of two portfolios), Clipper Funds Trust (consisting of one
portfolio), and Davis Fundamental ETF Trust (consisting of four portfolios); Vice President and Chief Compliance Officer, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser. Prior
to assuming these positions, Ms. McLoughry spent close to 18 years in the Fund Accounting department at Davis Selected Advisers, L.P.
8.
Due to the deferred sales charge, please provide an additional example reflecting
redemptions that would activate such charge.
Because the Fund is only available to current and former directors, officers, and employees of the Fund or its investment adviser and
sub-adviser, and such investors are all eligible for a front-end sales charge waiver, such deferred sales charges would not be assessed. Therefore, as shown in the response to the third comment above, the deferred sales charge has been changed to
“None” and the footnote below the chart has been revised as indicated.
9.
Registrant should consider an explanatory footnote regarding purchases of $1 million
or more and the 0.50% fee.
We have considered such explanatory footnote, and have determined that it is not necessary to add.
Please call the undersigned at (520) 434-3793 with any comments or questions.
Respectfully,
/s/ Lisa Cohen
Lisa Cohen
Vice President and Secretary
DAVIS RESEARCH FUND
PROSPECTUS
A Portfolio of Davis New York Venture Fund, Inc.
November 29, 2023
Class A Shares (DRFAX)
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense.
LOGO
OVER 50 YEARS OF RELIABLE INVESTINGSM
Contents
Davis Research Fund Summary
3
Additional Information About Investment Objectives, Principal Strategies and Principal Risks
6
Additional Information About Expenses, Fees and Performance
8
Non-Principal Investment Strategies and Risks
9
Management and Organization
10
Shareholder Information
11
How Your Shares Are Valued
11
Portfolio Holdings
12
How Davis Funds Pay Earnings
12
Federal Income Taxes
13
Fees and Expenses of the Fund
14
Fees Paid to Dealers and Other Financial Intermediaries
14
How to Choose a Share Class (Class A Shares)
16
How to Open an Account
19
Anti-Money Laundering Compliance
19
Retirement Plan Accounts
20
How to Buy, Sell and Exchange Shares
20
Buying More Shares
21
Selling Shares
22
Exchanging Shares
24
Frequent Purchases and Redemptions of Fund Shares
24
Telephone Transactions
25
Internet Transactions
25
Financial Highlights
26
Obtaining Additional Information
28
Class A shares of Davis Research Fund have been registered with the Securities and Exchange Commission and, as of the date of this prospectus, in selected
states where eligible investors are residents. Shares of Davis Research Fund currently are not available for public sale in any other state or jurisdiction. Currently, only current and former directors, officers and employees of the Fund or its
investment adviser and sub-adviser (and the investment adviser itself and affiliated companies) are eligible to purchase Fund shares. The Adviser reserves the right to reject any offer to purchase shares.
This prospectus contains important information. Please read it carefully before investing and keep it for future reference.
No financial adviser, dealer, salesperson or any other person has been authorized to give any information or to make any representations, other than those
contained in this prospectus, in connection with the offer contained in this prospectus and, if given or made, such other information or representations must not be relied on as having been authorized by the Fund, the Fund’s investment adviser or
the Fund’s distributor.
This prospectus does not constitute an offer by the Fund or by the Fund’s distributor to sell or a solicitation of an offer to buy any of the securities offered
hereby in any jurisdiction to any person to whom it is unlawful for the Fund to make such an offer.
Davis Research Fund Summary
Investment Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the Fund
These tables describe the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts with respect to Class A shares if you and your family invest, or agree to invest
in the future, at least $100,