# EDGAR Filing Document

**Accession Number:** 0001084060
**File Stem:** 0001084060-23-000008
**Filing Date:** 2023-2
**Character Count:** 248686
**Document Hash:** bd8e221cdef163eaba24ae3d17c3fbbe
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001084060-23-000008.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001084060-23-000008

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 10

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**EFFECTIVENESS DATE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DAVIS VARIABLE ACCOUNT FUND INC
- **CENTRAL INDEX KEY:** 0001084060
- **IRS NUMBER:** 850460478
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-09293
- **FILM NUMBER:** 23658632

**BUSINESS ADDRESS:**
- **STREET 1:** 2949 E. ELVIRA ROAD
- **STREET 2:** SUITE 101
- **CITY:** TUCSON
- **STATE:** AZ
- **ZIP:** 85756
- **BUSINESS PHONE:** (520)806-7600

**MAIL ADDRESS:**
- **STREET 1:** 2949 E. ELVIRA ROAD
- **STREET 2:** SUITE 101
- **CITY:** TUCSON
- **STATE:** AZ
- **ZIP:** 85756

## Series and Classes Contracts Data

### Davis Value Portfolio (Series ID: S000003451)

| Class ID   | Class Name            | Ticker Symbol   |
|:---|:---|:---|
| C000009557 | Davis Value Portfolio | QDVPAX          |

### Davis Financial Portfolio (Series ID: S000003452)

| Class ID   | Class Name                | Ticker Symbol   |
|:---|:---|:---|
| C000009558 | Davis Financial Portfolio | QDFPAX          |

### Davis Real Estate Portfolio (Series ID: S000003453)

| Class ID   | Class Name                  | Ticker Symbol   |
|:---|:---|:---|
| C000009559 | Davis Real Estate Portfolio | QDRPAX          |

------

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, DC 20549

### FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY

#### Investment Company Act file number 811-09293

### DAVIS VARIABLE ACCOUNT FUND, INC.
(Exact name of registrant as specified in charter)

2949 East Elvira Road, Suite 101

Tucson, AZ 85756

(Address of principal executive offices)

Lisa J. Cohen

Davis Selected Advisers, L.P.

2949 East Elvira Road, Suite 101

Tucson, AZ 85756

(Name and address of agent for service)

Registrant's telephone number, including area code: 520-806-7600

#### Date of fiscal year end: December 31, 2022

#### Date of reporting period: December 31, 2022

____________________

#### ITEM 1. REPORT TO STOCKHOLDERS

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![](cover1.jpg)

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| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Table of Contents** |

---

---

| | |
|:---|:---|
| [Management's Discussion of Fund Performance](#DVPManagementsDiscussionofFu) | 2 |
| [Fund Overview](#DVPFundOverview) | 4 |
| [Expense Example](#DVPExpenseExample) | 6 |
| [Schedule of Investments](#DVPScheduleofInvestments) | 7 |
| [Statement of Assets and Liabilities](#DVPStatementofAssetsandLiabi) | 10 |
| [Statement of Operations](#DVPStatementofOperations) | 11 |
| [Statements of Changes in Net Assets](#DVPStatementsofChangesinNetA) | 12 |
| [Notes to Financial Statements](#DVPNotestoFinancialStatement) | 13 |
| [Federal Income Tax Information](#DVPFEDERALINCOMETAXINFORMATI) | 17 |
| [Financial Highlights](#DVPFinancialHighlights) | 18 |
| [Report of Independent Registered Public Accounting Firm](#DVPReportofIndependentRegist) | 19 |
| [Directors and Officers](#DVPDirectorsandOfficers) | 20 |

---

***This Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Davis Value Portfolio (the "Fund") prospectus, which contains more information about investment strategies, risks, charges, and expenses. Please read the prospectus carefully before investing or sending money.***

*Shares of the Fund are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.*

#### Portfolio Proxy Voting Policies and Procedures
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30<sup>th</sup>, no later than August 31<sup>st</sup> of each year. The Fund's Form N-PX filing is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

#### Quarterly Schedule of Investments
The Fund files its complete schedule of investments with the SEC on Form N-CSR (as of the end of the second and fourth quarters) and on Form N-PORT Part F (as of the end of the first and third quarters). The Fund's Forms N-CSR (Annual and Semi-Annual Reports) and N-PORT Part F are available without charge, upon request, by calling 1-800-279-0279, on the Fund's website at www.davisfunds.com, and on the SEC's website at www.sec.gov.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Management's Discussion of Fund Performance** |

---

#### Performance Overview

Davis Value Portfolio underperformed the Standard & Poor's 500<sup>®</sup> Index ("S&P 500<sup>®</sup>" or the "Index") for the twelve-month period ended December 31, 2022 (the "period"). The Fund delivered a total return of -20.13%, versus a -18.11% return for the S&P 500<sup>®</sup>.

#### Index Overview

<u>S&P 500<sup>®</sup></u>

&nbsp;&nbsp;&nbsp;&nbsp;• Strongest performing sectors<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Energy (+66%), Utilities (+1%), and Consumer Staples (-1%)

&nbsp;&nbsp;&nbsp;&nbsp;• Weakest performing sectors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Communication Services (-40%), Consumer Discretionary (-37%), and Information Technology (-29%)

#### Detractors<sup>2</sup> from Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Communication Services - underperformed the Index sector (-50% vs -40%) and overweight (average weighting 12% vs 9%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Meta Platforms*<sup>3</sup> (-64%) - largest individual detractor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Alphabet* (-39%) and *IAC* (-66%)

&nbsp;&nbsp;&nbsp;&nbsp;• Industrials - underperformed the Index sector (-55% vs -6%) and underweight (average weighting 1% vs 8%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *DiDi Global* (-64%) - no longer a Fund holding

&nbsp;&nbsp;&nbsp;&nbsp;• Information Technology - underperformed the Index sector (-33% vs -29%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Applied Materials* (-38%) and *Intel* (-47%)

&nbsp;&nbsp;&nbsp;&nbsp;• No exposure in Energy or Utilities and underweight in Consumer Staples (average weighting 1% vs 7%), the three highest performing sectors of the S&P 500<sup>®</sup>, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;• Individual holdings from Financials and Consumer Discretionary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Capital One Financial* (-35%), *Bank of New York Mellon* (-19%), and *Wells Fargo* (-12%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Amazon* (-50%)

#### Contributors to Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Financials - outperformed the Index sector (-9% vs -10%) and significantly overweight (average weighting 48% vs 12%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Berkshire Hathaway* (+4%), *Danske Bank* (+16%), *Chubb* (+16%), *AIA Group* (+12%), *DBS Group Holdings* (+9%), *Markel* (+7%), and *Loews* (+1%)

&nbsp;&nbsp;&nbsp;&nbsp;• Health Care - outperformed the Index sector (+14% vs -2%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Cigna* (+47%) - largest individual contributor

&nbsp;&nbsp;&nbsp;&nbsp;• Materials - outperformed the Index sector (+34% vs -12%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Teck Resources* (+34%)

&nbsp;&nbsp;&nbsp;&nbsp;• Underweight in weaker performing Index sectors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* Information Technology (average weighting 15% vs 26%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* Consumer Discretionary (average weighting 9% vs 11%)

------

Davis Value Portfolio's investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Davis Value Portfolio's principal risks are: stock market risk, common stock risk, financial services risk, foreign country risk, headline risk, large-capitalization companies risk, manager risk, depositary receipts risk, emerging market risk, fees and expenses risk, foreign currency risk, and mid- and small-capitalization companies risk. See the prospectus for a full description of each risk.

Past performance does not guarantee future results, Fund prices fluctuate, and the value of an investment may be worth more or less than the purchase price. Data provided in this performance overview is for the twelve-month period ended December 31, 2022, unless otherwise noted. Return figures for underlying Fund positions reflect the return of the security from the beginning of the period or the date of first purchase if subsequent thereto through the end of the period or the date the position is completely liquidated. The actual contribution to the Fund will vary based on a number of factors (e.g., trading activity, weighting). Portfolio holding information is as of the end of the twelve-month period, December 31, 2022, unless otherwise noted.

<sup>1</sup> The companies included in the Standard & Poor's 500® Index are divided into eleven sectors. One or more industry groups make up a sector. For purposes of measuring concentration, the Fund generally classifies companies at the industry group or industry level. See the SAI for additional information regarding the Fund's concentration policy.

<sup>2</sup> A company's or sector's contribution to or detraction from the Fund's performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%.

<sup>3</sup> Management's Discussion of Fund Performance discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase, sell, or hold any particular security. The Schedule of Investments lists the Fund's holdings of each company discussed.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Management's Discussion of Fund Performance - (Continued)** |

---

**Comparison of a $10,000 investment in Davis Value Portfolio versus the Standard & Poor's 500**<sup>®</sup> **Index**

#### over 10 years for an investment made on December 31, 2012

![](graph1.jpg)

#### Average Annual Total Return for periods ended December 31, 2022

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund & Benchmark Index** | **1-Year** | **5-Year** | **10-Year** | **Since Fund's**<br> **Inception**<br> (07/01/99) | **Gross Expense**<br> **Ratio** | **Net Expense**<br> **Ratio** |
| Davis Value Portfolio | (20.13)% | 3.57% | 8.92% | 5.64% | 0.69% | 0.69% |
| Standard & Poor's 500<sup>®</sup> Index | (18.11)% | 9.42% | 12.56% | 6.43% |  |  |

---

The Standard & Poor's 500<sup>®</sup> Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations, and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in the Index.

**The performance data quoted in this report represents past performance, assumes that all distributions were reinvested, and is not a guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance data quoted. The operating expense ratio may vary in future years. For most recent month-end performance information, please call Investor Services at 1-800-279-0279 or visit the Fund's website at www.davisfunds.com.**

Fund performance numbers are net of all Fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance included the effect of these additional charges, the return would be lower.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Fund Overview** |
|  | **December 31, 2022** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Composition** | **Portfolio Composition** | **Industry Weightings** | **Industry Weightings** | **Industry Weightings** |
| **(% of Fund's 12/31/22 Net Assets)** | **(% of Fund's 12/31/22 Net Assets)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** |
|  |  |  | **Fund** | **S&P 500**<sup>®</sup> |
| Common Stock (U.S.) | 79.87% | Banks | 22.92% | 3.83% |
| Common Stock (Foreign) | 18.24% | Diversified Financials | 20.87% | 5.38% |
| Short-Term Investments | 1.64% | Information Technology | 14.16% | 25.74% |
| Other Assets & Liabilities | 0.25% | Media & Entertainment | 11.91% | 6.08% |
|  | 100.00% | Health Care | 9.00% | 15.82% |
|  |  | Retailing | 8.45% | 5.47% |
|  |  | Insurance | 7.50% | 2.45% |
|  |  | Materials | 2.50% | 2.73% |
|  |  | Capital Goods | 1.52% | 6.06% |
|  |  | Food, Beverage & Tobacco | 1.17% | 3.90% |
|  |  | Energy | – | 5.23% |
|  |  | Utilities | – | 3.18% |
|  |  | Real Estate | – | 2.71% |
|  |  | Other | – | 11.42% |
|  |  |  | 100.00% | 100.00% |

---

#### Top 10 Long-Term Holdings

#### (% of Fund's 12/31/22 Net Assets)

---

| | | |
|:---|:---|:---|
| Berkshire Hathaway Inc., Class A | Diversified Financial Services | 9.33% |
| Wells Fargo & Co. | Banks | 8.28% |
| Capital One Financial Corp. | Consumer Finance | 6.15% |
| Applied Materials, Inc. | Semiconductors & Semiconductor Equipment | 5.93% |
| Alphabet Inc.\* | Media & Entertainment | 5.78% |
| Meta Platforms, Inc., Class A | Media & Entertainment | 5.32% |
| Bank of New York Mellon Corp. | Capital Markets | 4.23% |
| JPMorgan Chase & Co. | Banks | 4.18% |
| Amazon.com, Inc. | Retailing | 4.07% |
| Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | 3.95% |
| \*Alphabet Inc. holding includes Class A and Class C. |  |  |

---

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| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Fund Overview - (Continued)** |
|  | **December 31, 2022** |

---

#### New Positions Added (01/01/22-12/31/22)
(Highlighted positions are those greater than 1.20% of the Fund's 12/31/22 net assets)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Industry** | **Date of 1<sup>st</sup>**<br> **Purchase** | **% of Fund's**<br> **12/31/22**<br> **Net Assets** |
| Owens Corning | Capital Goods | 04/05/22 | 1.43% |
| Samsung Electronics Co., Ltd. | Technology Hardware & Equipment | 07/08/22 | 1.02% |

---

#### Positions Closed (01/01/22-12/31/22)
(Losses greater than $2,000,000 are highlighted)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Industry** | **Date of**<br> **Final Sale** | &nbsp;&nbsp; <br> **Realized Loss** |
| Alibaba Group Holding Ltd., ADR | Retailing | 07/08/22 | $(1053253) |
| DiDi Global Inc., Class A, ADS | Transportation | 04/28/22 | (3593697) |
| Liberty Global plc, Series C | Telecommunication Services | 05/17/22 | (191709) |
| Missfresh Ltd., Class B, ADS | Food & Staples Retailing | 05/31/22 | (191246) |
| Vimeo, Inc. | Media & Entertainment | 11/11/22 | (550394) |
| Vroom, Inc. | Retailing | 04/28/22 | (2286978) |

---

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| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Expense Example** |

---

As a shareholder of the Fund, you incur ongoing costs only, including advisory and administrative fees and other Fund expenses. The Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for the Fund is for the six-month period ended December 31, 2022. Please note that the Expense Example is general and does not reflect charges imposed by your insurance company's separate account or account specific costs, which may increase your total costs of investing in the Fund. If these charges or account specific costs were included in the Expense Example, the expenses would be higher.

#### Actual Expenses

The information represented in the row entitled "Actual" provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

#### Hypothetical Example for Comparison Purposes

The information represented in the row entitled "Hypothetical" provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the information in the row entitled "Hypothetical" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

---

| | | | |
|:---|:---|:---|:---|
|  | **Beginning**<br>**Account Value**<br>**(07/01/22)** | **Ending**<br>**Account Value**<br>**(12/31/22)** | **Expenses Paid**<br>**During Period\***<br>**(07/01/22-12/31/22)** |
| &nbsp;&nbsp;&nbsp;&nbsp; <br>Actual | $1000.00 | $1023.15 | $3.77 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hypothetical | $1000.00 | $1021.48 | $3.77 |

---

Hypothetical assumes 5% annual return before expenses.

\* Expenses are equal to the Fund's annualized operating expense ratio (0.74%)\*\*, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

\*\* The expense ratio reflects the impact, if any, of certain reimbursements from the Adviser.

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| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Schedule of Investments** |
|  | **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br> (Note 1)** |
| **COMMON STOCK – (98.11%)** | **COMMON STOCK – (98.11%)** | **COMMON STOCK – (98.11%)** |
| **COMMUNICATION SERVICES – (11.69%)** | **COMMUNICATION SERVICES – (11.69%)** | **COMMUNICATION SERVICES – (11.69%)** |
| &nbsp;&nbsp; **Media & Entertainment – (11.69%)** | &nbsp;&nbsp; **Media & Entertainment – (11.69%)** | &nbsp;&nbsp; **Media & Entertainment – (11.69%)** |
| Alphabet Inc., Class A \* | 33800 | $2982174 |
| Alphabet Inc., Class C \* | 22060 | 1957384 |
| IAC Inc. \* | 11240 | 499056 |
| Liberty TripAdvisor Holdings, Inc., Series A \* | 3168 | 2121 |
| Meta Platforms, Inc., Class A \* | 37760 | 4544038 |
| Total Communication Services | Total Communication Services | 9984773 |
| **CONSUMER DISCRETIONARY – (8.29%)** | **CONSUMER DISCRETIONARY – (8.29%)** | **CONSUMER DISCRETIONARY – (8.29%)** |
| &nbsp;&nbsp; **Retailing – (8.29%)** | &nbsp;&nbsp; **Retailing – (8.29%)** | &nbsp;&nbsp; **Retailing – (8.29%)** |
| Amazon.com, Inc. \* | 41430 | 3480120 |
| Coupang, Inc., Class A (South Korea)\* | 46102 | 678160 |
| JD.com, Inc., Class A, ADR (China) | 22620 | 1269661 |
| Naspers Ltd. - N (South Africa) | 2590 | 430518 |
| Prosus N.V., Class N (Netherlands) | 17694 | 1220717 |
| Total Consumer Discretionary | Total Consumer Discretionary | 7079176 |
| **CONSUMER STAPLES – (1.15%)** | **CONSUMER STAPLES – (1.15%)** | **CONSUMER STAPLES – (1.15%)** |
| &nbsp;&nbsp; **Food, Beverage & Tobacco – (1.15%)** | &nbsp;&nbsp; **Food, Beverage & Tobacco – (1.15%)** | &nbsp;&nbsp; **Food, Beverage & Tobacco – (1.15%)** |
| Darling Ingredients Inc. \* | 15640 | 978908 |
| Total Consumer Staples | Total Consumer Staples | 978908 |
| **FINANCIALS – (50.32%)** | **FINANCIALS – (50.32%)** | **FINANCIALS – (50.32%)** |
| &nbsp;&nbsp; **Banks – (22.49%)** | &nbsp;&nbsp; **Banks – (22.49%)** | &nbsp;&nbsp; **Banks – (22.49%)** |
| Danske Bank A/S (Denmark) | 107320 | 2121125 |
| DBS Group Holdings Ltd. (Singapore) | 123107 | 3117657 |
| JPMorgan Chase & Co. | 26598 | 3566792 |
| U.S. Bancorp | 76490 | 3335729 |
| Wells Fargo & Co. | 171244 | 7070665 |
|  |  | 19211968 |
| &nbsp;&nbsp; **Diversified Financials – (20.47%)** | &nbsp;&nbsp; **Diversified Financials – (20.47%)** | &nbsp;&nbsp; **Diversified Financials – (20.47%)** |
| &nbsp;&nbsp; **Capital Markets – (4.23%)** | &nbsp;&nbsp; **Capital Markets – (4.23%)** | &nbsp;&nbsp; **Capital Markets – (4.23%)** |
| Bank of New York Mellon Corp. | 79420 | 3615198 |
| &nbsp;&nbsp; **Consumer Finance – (6.91%)** | &nbsp;&nbsp; **Consumer Finance – (6.91%)** | &nbsp;&nbsp; **Consumer Finance – (6.91%)** |
| American Express Co. | 4439 | 655863 |
| Capital One Financial Corp. | 56470 | 5249451 |
|  |  | 5905314 |
| &nbsp;&nbsp; **Diversified Financial Services – (9.33%)** | &nbsp;&nbsp; **Diversified Financial Services – (9.33%)** | &nbsp;&nbsp; **Diversified Financial Services – (9.33%)** |
| Berkshire Hathaway Inc., Class A \* | 17 | 7968086 |
|  |  | 17488598 |
| &nbsp;&nbsp; **Insurance – (7.36%)** | &nbsp;&nbsp; **Insurance – (7.36%)** | &nbsp;&nbsp; **Insurance – (7.36%)** |
| &nbsp;&nbsp; **Life & Health Insurance – (4.37%)** | &nbsp;&nbsp; **Life & Health Insurance – (4.37%)** | &nbsp;&nbsp; **Life & Health Insurance – (4.37%)** |
| AIA Group Ltd. (Hong Kong) | 215600 | 2397566 |
| Ping An Insurance (Group) Co. of China, Ltd. - H (China) | 201000 | 1330051 |
|  |  | 3727617 |
| &nbsp;&nbsp; **Property & Casualty Insurance – (2.99%)** | &nbsp;&nbsp; **Property & Casualty Insurance – (2.99%)** | &nbsp;&nbsp; **Property & Casualty Insurance – (2.99%)** |
| Chubb Ltd. | 7980 | 1760388 |
| Loews Corp. | 5290 | 308566 |

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| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Schedule of Investments - (Continued)** |
|  | **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| | **Shares/Principal** | **Value<br> (Note 1)** |
| **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** |
| **FINANCIALS – (CONTINUED)** | **FINANCIALS – (CONTINUED)** | **FINANCIALS – (CONTINUED)** |
| &nbsp;&nbsp; **Insurance – (Continued)** | &nbsp;&nbsp; **Insurance – (Continued)** | &nbsp;&nbsp; **Insurance – (Continued)** |
| &nbsp;&nbsp; **Property & Casualty Insurance – (Continued)** | &nbsp;&nbsp; **Property & Casualty Insurance – (Continued)** | &nbsp;&nbsp; **Property & Casualty Insurance – (Continued)** |
| Markel Corp. \* | 370 | 487471 |
|  |  | 2556425 |
|  |  | 6284042 |
| Total Financials | Total Financials | 42984608 |
| **HEALTH CARE – (8.83%)** | **HEALTH CARE – (8.83%)** | **HEALTH CARE – (8.83%)** |
| &nbsp;&nbsp; **Health Care Equipment & Services – (5.49%)** | &nbsp;&nbsp; **Health Care Equipment & Services – (5.49%)** | &nbsp;&nbsp; **Health Care Equipment & Services – (5.49%)** |
| Cigna Corp. | 9737 | 3226257 |
| Quest Diagnostics Inc. | 9350 | 1462714 |
|  |  | 4688971 |
| &nbsp;&nbsp; **Pharmaceuticals, Biotechnology & Life Sciences – (3.34%)** | &nbsp;&nbsp; **Pharmaceuticals, Biotechnology & Life Sciences – (3.34%)** | &nbsp;&nbsp; **Pharmaceuticals, Biotechnology & Life Sciences – (3.34%)** |
| Viatris Inc. | 256290 | 2852508 |
| Total Health Care | Total Health Care | 7541479 |
| **INDUSTRIALS – (1.49%)** | **INDUSTRIALS – (1.49%)** | **INDUSTRIALS – (1.49%)** |
| &nbsp;&nbsp; **Capital Goods – (1.49%)** | &nbsp;&nbsp; **Capital Goods – (1.49%)** | &nbsp;&nbsp; **Capital Goods – (1.49%)** |
| Orascom Construction PLC (United Arab Emirates) | 13155 | 50989 |
| Owens Corning | 14350 | 1224055 |
| Total Industrials | Total Industrials | 1275044 |
| **INFORMATION TECHNOLOGY – (13.89%)** | **INFORMATION TECHNOLOGY – (13.89%)** | **INFORMATION TECHNOLOGY – (13.89%)** |
| &nbsp;&nbsp; **Semiconductors & Semiconductor Equipment – (11.73%)** | &nbsp;&nbsp; **Semiconductors & Semiconductor Equipment – (11.73%)** | &nbsp;&nbsp; **Semiconductors & Semiconductor Equipment – (11.73%)** |
| Applied Materials, Inc. | 51990 | 5062786 |
| Intel Corp. | 59880 | 1582629 |
| Texas Instruments Inc. | 20410 | 3372140 |
|  |  | 10017555 |
| &nbsp;&nbsp; **Software & Services – (1.14%)** | &nbsp;&nbsp; **Software & Services – (1.14%)** | &nbsp;&nbsp; **Software & Services – (1.14%)** |
| Microsoft Corp. | 4060 | 973669 |
| &nbsp;&nbsp; **Technology Hardware & Equipment – (1.02%)** | &nbsp;&nbsp; **Technology Hardware & Equipment – (1.02%)** | &nbsp;&nbsp; **Technology Hardware & Equipment – (1.02%)** |
| Samsung Electronics Co., Ltd. (South Korea) | 19960 | 872905 |
| Total Information Technology | Total Information Technology | 11864129 |
| **MATERIALS – (2.45%)** | **MATERIALS – (2.45%)** | **MATERIALS – (2.45%)** |
| Teck Resources Ltd., Class B (Canada) | 55380 | 2094472 |
| Total Materials | Total Materials | 2094472 |
| <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $48,405,921)**<br> ****  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $48,405,921)**<br> ****  | **83802589**  |
| **SHORT-TERM INVESTMENTS – (1.64%)** | **SHORT-TERM INVESTMENTS – (1.64%)** | **SHORT-TERM INVESTMENTS – (1.64%)** |
| StoneX Financial Inc. Joint Repurchase Agreement, 4.30%, 01/03/23,<br> dated 12/30/22, repurchase value of $743,355 (collateralized by: U.S.<br> Government agency mortgages and obligations in a pooled cash<br> account, 0.00%-8.50%, 12/31/22-10/20/71, total market value $757,860) | $743000 | 743000 |
| Truist Securities, Inc. Joint Repurchase Agreement, 4.28%, 01/03/23,<br> dated 12/30/22, repurchase value of $656,312 (collateralized by: U.S.<br> Government agency mortgages in a pooled cash account, 2.00%-5.00%,<br> 04/01/27-12/01/52, total market value $669,120) | 656000 | 656000 |
| <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $1,399,000)<br>**  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $1,399,000)<br>**  | **1399000**  |

---

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Schedule of Investments - (Continued)** |
|  | **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
|  | <br> Total Investments – (99.75%) – (Identified cost $49,804,921) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85201589 |
| | Other Assets Less Liabilities – (0.25%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 216751 |
| | Net Assets – (100.00%) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85418340 |
| ADR: American Depositary Receipt | ADR: American Depositary Receipt | ADR: American Depositary Receipt |
| \* | Non-income producing security. | Non-income producing security. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Statement of Assets and Liabilities** |
|  | **At December 31, 2022** |

---

---

| | |
|:---|:---|
| **ASSETS:** |  |
| Investments in securities, at value\* (see accompanying Schedule of Investments) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85201589 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5102 |
| Receivables: |  |
| Capital stock sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 214 |
| Dividends and interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73763 |
| Investment securities sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 312129 |
| Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4617 |
| **Total assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **85597414** |
| **** <br>**LIABILITIES:** |  |
| Payables: |  |
| Capital stock redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72467 |
| Accrued audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22805 |
| Accrued custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23700 |
| Accrued investment advisory fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 43417 |
| Other accrued expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16685 |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **179074** |
| **** <br>**NET ASSETS** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **85418340** |
| **** <br>**SHARES OUTSTANDING** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **16173740** |
| **** <br>**NET ASSET VALUE**, offering, and redemption price per share (Net assets ÷ Shares outstanding) | $5.28 |
| **** <br>**NET ASSETS CONSIST OF:** |  |
| Par value of shares of capital stock | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16174 |
| <br>Additional paid-in capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49983896 |
| <br>Distributable earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35418270 |
| **Net Assets** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **85418340** |
| \*Including: |  |
| Cost of investments | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49804921 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Statement of Operations** |
|  | **For the year ended December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| **INVESTMENT INCOME:** |  |  |
| **Income:** | **Income:** |  |
| Dividends\* | Dividends\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2009533 |
| Interest | Interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36134 |
| **Total income** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **2045667** |
| **** <br>**Expenses:** | **** <br>**Expenses:** |  |
| Investment advisory fees (Note 3) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 699723 |  |
| Custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31084 |  |
| Transfer agent fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13365 |  |
| Audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24205 |  |
| Legal fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6144 |  |
| Accounting fees (Note 3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6998 |  |
| Reports to shareholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6809 |  |
| Directors' fees and expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67181 |  |
| Registration and filing fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53 |  |
| Miscellaneous | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23530 |  |
| **Total expenses** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **879092** |
| **Net investment income** | **Net investment income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1166575** |
| **** <br>**REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS**<br> **AND FOREIGN CURRENCY TRANSACTIONS:** |  |  |
| Net realized gain (loss) from: | Net realized gain (loss) from: |  |
| Investment transactions | Investment transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32032614 |
| Foreign currency transactions | Foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(261) |
| **Net realized gain** | **Net realized gain** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **32032353** |
| Net decrease in unrealized appreciation | Net decrease in unrealized appreciation | &nbsp;&nbsp;&nbsp;&nbsp; (71152891) |
| **Net realized and unrealized loss on investments and**<br> **foreign currency transactions** |  | &nbsp;&nbsp;&nbsp;&nbsp; **(39120538)** |
| **Net decrease in net assets resulting from operations** | **Net decrease in net assets resulting from operations** | $&nbsp;&nbsp;&nbsp;&nbsp; **(37953963)** |
| <br>\*Net of foreign taxes withheld of | <br>\*Net of foreign taxes withheld of | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23345 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** |
| **** <br>**OPERATIONS:** |  |  |
| Net investment income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1166575 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1197048 |
| Net realized gain from investments and foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32032353 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35183006 |
| Net increase (decrease) in unrealized appreciation on investments and foreign<br> currency transactions | &nbsp;&nbsp;&nbsp;&nbsp; (71152891) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1361114 |
| **Net increase (decrease) in net assets resulting from operations** | &nbsp;&nbsp;&nbsp;&nbsp; **(37953963)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **37741168** |
| **** <br>**DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:** | &nbsp;&nbsp;&nbsp;&nbsp; **(22187016)** | &nbsp;&nbsp;&nbsp;&nbsp; **(37073808)** |
| **** <br>**CAPITAL SHARE TRANSACTIONS:** |  |  |
| Net increase (decrease) in net assets resulting from capital share transactions<br> (Note 4) | &nbsp;&nbsp;&nbsp;&nbsp; (72736831) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5262431 |
| **** <br>**Total increase (decrease) in net assets** | &nbsp;&nbsp; **(132877810)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **5929791** |
| **NET ASSETS:** |  |  |
| Beginning of year | &nbsp;&nbsp;&nbsp;&nbsp; 218296150 | &nbsp;&nbsp;&nbsp;&nbsp; 212366359 |
| **End of year** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **85418340** | $&nbsp;&nbsp;&nbsp;&nbsp; **218296150** |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Notes to Financial Statements** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation) and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund follows the reporting guidance of the Financial Accounting Standards Board ("FASB") *Accounting Standards Codification Topic 946, Financial Services – Investment Companies*. Only insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may purchase shares of the Fund. The COVID-19 pandemic has caused market disruptions on a global scale and the long-term impact is uncertain. The aforementioned disruptions may adversely affect the value and liquidity of the Fund's investments and thus Fund performance. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

***Security Valuation*** - The Fund's Board of Directors has designated Davis Selected Advisers, L.P. ("Davis Advisors" or "Adviser"), the Fund's investment adviser, as the valuation designee for the Fund. The Adviser has established a Pricing Committee to carry out the day-to-day valuation activities for the Fund. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange ("Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities listed on the Exchange (and other national exchanges including NASDAQ) are valued at the last reported sales price on the day of valuation. Listed securities for which no sale was reported on that date are valued at the last quoted bid price. Securities traded on foreign exchanges are valued based upon the last sales price on the principal exchange on which the security is traded prior to the time when the Fund's assets are valued. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what the Adviser identifies as a significant event occurring before the Fund's assets are valued, but after the close of their respective exchanges, will be fair valued using a fair valuation methodology applicable to the security type or the significant event as previously approved by the Pricing Committee. The Pricing Committee considers all facts it deems relevant that are reasonably available, through either public information or information available to the Adviser's portfolio management team, when determining the fair value of a security. To assess the appropriateness of security valuations, the Pricing Committee may consider (i) comparing prior day prices and/or prices of comparable securities; (ii) comparing sale prices to the prior or current day prices and challenge those prices exceeding certain tolerance levels with the third-party pricing service or broker source; (iii) new rounds of financing; (iv) the performance of the market or the issuer's industry; (v) the liquidity of the security; (vi) the size of the holding in a fund; and/or (vii) any other appropriate information. The determination of a security's fair value price often involves the consideration of a number of subjective factors and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security's value would be if a reliable market quotation for the security was readily available.

Short-term investments purchased within 60 days to maturity are valued at amortized cost, which approximates market value.

On a quarterly basis, the Board of Directors receives reports of valuation actions taken by the Pricing Committee. On at least an annual basis, the Board of Directors receives an assessment of the adequacy and effectiveness of the Adviser's process for determining the fair value of the Fund's investments.

**Fair Value Measurements** - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market for the investment. Various inputs are used to determine the fair value of the Fund's investments. These inputs are summarized in the three broad levels listed below.

---

| | |
|:---|:---|
| Level 1 – <br>| quoted prices in active markets for identical securities |
| Level 2 – <br>| other significant observable inputs (including quoted prices for similar investments, interest rates,<br> prepayment speeds, credit risk, etc.) |
| Level 3 – <br>| significant unobservable inputs (including the Fund's own assumptions in determining the fair value of<br> investments) |

---

The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

#### Fair Value Measurements - (Continued)

The following is a summary of the inputs used as of December 31, 2022 in valuing the Fund's investments carried at value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** |
|  | Valuation Inputs | Valuation Inputs | Valuation Inputs | Valuation Inputs |
|  |<br>**Level 1:**<br>**Quoted Prices** | **Level 2:**<br>**Other Significant**<br>**Observable**<br>**Inputs** | **Level 3:**<br>**Significant**<br>**Unobservable**<br>**Inputs** |<br><br>**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication Services | $9984773 | $– | $– | $9984773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | 7079176 | – | – | 7079176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Staples | 978908 | – | – | 978908 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financials | 42984608 | – | – | 42984608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health Care | 7541479 | – | – | 7541479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrials | 1275044 | – | – | 1275044 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information Technology | 11864129 | – | – | 11864129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials | 2094472 | – | – | 2094472 |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-Term Investments | – | 1399000 | – | 1399000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Investments** | $**83802589** | $**1399000** | $**–** | $**85201589** |

---

***Repurchase Agreements*** - Repurchase agreements are transactions under which a Fund purchases a security from a dealer counterparty and agrees to resell the security to that counterparty on a specified future date at the same price, plus a specified interest rate. The Fund's repurchase agreements are secured by U.S. government or agency securities. It is the Fund's policy that its regular custodian or third party custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. In the event of default by the counterparty, the Fund has the contractual right to liquidate the collateral securities and to apply the proceeds in satisfaction of the obligation.

***Currency Translation*** - The market values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to United States Dollar ("USD") on the date of valuation using exchange rates determined as of the close of trading on the Exchange. The cost basis of such assets and liabilities is determined based upon historical exchange rates. Income and expenses are translated at average exchange rates in effect as accrued or incurred.

***Foreign Currency*** - The Fund may enter into forward purchases or sales of foreign currencies to hedge certain foreign currency denominated assets and liabilities against declines in market value relative to USD. Forward currency contracts are marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the forward currency contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the forward currency contract at the time it was opened and value at the time it was closed. Investments in forward currency contracts may expose the Fund to risks resulting from unanticipated movements in foreign currency exchange rates or failure of the counter-party to the agreement to perform in accordance with the terms of the contract. There were no forward contracts entered into by the Fund.

Reported net realized foreign exchange gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the USD equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sales of investments together with market gains and losses on such investments in the Statement of Operations.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

***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, including any net realized gains on investments not offset by loss carryovers, to shareholders. Therefore, no provision for federal income or excise tax is required. The Adviser analyzed the Fund's tax positions taken on federal and state income tax returns for all open tax years and concluded that as of December 31, 2022, no provision for income tax is required in the Fund's financial statements related to these tax positions. The Fund's federal and state (Arizona) income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state Department of Revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2019.

At December 31, 2022, the aggregate cost of investments and unrealized appreciation (depreciation) for federal income tax purposes were as follows:

---

| | |
|:---|:---|
| Cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50810586 |
| <br>Unrealized appreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38000316 |
| Unrealized depreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3609313) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34391003 |

---

***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 realized gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.

***Dividends and Distributions to Shareholders*** - Dividends and distributions to shareholders are recorded on the ex-dividend date. Net investment income (loss), net realized gains (losses), and net unrealized appreciation (depreciation) on investments [collectively "Distributable earnings (losses)"] may differ for financial statement and tax purposes primarily due to permanent and temporary differences which may include wash sales, corporate actions, Directors' deferred compensation payments, passive foreign investment company shares, equalization, and foreign currency transactions. The character of dividends and distributions made during the fiscal year from net investment income and net realized securities gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which income or realized gain was recorded by the Fund. The Fund adjusts certain components of capital to reflect permanent differences between financial statement amounts and net income and realized gains/losses determined in accordance with income tax rules. The Fund's net assets have not been affected by this reclassification. During the year ended December 31, 2022, amounts have been reclassified to reflect increases (decreases) as follows:

---

| | |
|:---|:---|
| Additional paid-in capital | $&nbsp;&nbsp;&nbsp;&nbsp; 14459506 |
| Distributable earnings | (14459506) |

---

The tax character of distributions paid during the years ended December 31, 2022 and 2021 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1192850 | $&nbsp;&nbsp;&nbsp;&nbsp; 1515278 |
| Long-term capital gain | &nbsp;&nbsp;&nbsp;&nbsp; 20994166 | 35558530 |
| &nbsp;&nbsp; Total | $&nbsp;&nbsp;&nbsp;&nbsp; 22187016 | $37073808 |

---

As of December 31, 2022, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income | $185930 |
| Undistributed long-term capital gain | 1003470 |
| Net unrealized appreciation on investments and foreign currency<br> transactions | 34388771 |
| Other temporary differences | (159901) |
| &nbsp;&nbsp; Total | $35418270 |

---

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

***Indemnification*** - Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, some of the Fund's contracts with its service providers contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims.

***Use of Estimates in Financial Statements*** - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

***Directors Fees and Expenses*** - The Fund set up a Rabbi Trust to provide for the deferred compensation plan for Independent Directors that enables them to elect to defer receipt of all or a portion of annual fees they are entitled to receive. The value of an eligible Director's account is based upon years of service and fees paid to each Director during the years of service. The amount paid to the Director by the Trust under the plan will be determined based upon the performance of the Davis Funds in which the amounts are invested.

#### NOTE 2 - PURCHASES AND SALES OF SECURITIES

The cost of purchases and proceeds from sales of investment securities (excluding short-term investments) during the year ended December 31, 2022 were $9,423,542 and $100,953,379, respectively.

#### NOTE 3 - FEES AND OTHER TRANSACTIONS WITH SERVICE PROVIDERS (INCLUDING AFFILIATES)

Davis Selected Advisers-NY, Inc. ("DSA-NY"), a 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.

All officers of the Fund (including Interested Directors) hold positions as executive officers with the Adviser or its affiliates.

***Investment Advisory Fees and Reimbursement of Expenses*** - Advisory fees are paid monthly to the Adviser at an annual rate of 0.55% of the Fund's average net assets. The Adviser is contractually committed to waive fees and/or reimburse the Fund's expenses to the extent necessary to cap total annual Fund operating expenses at 1.00% until May 1, 2023; after that date, there is no assurance that expenses will be capped. The expense cap cannot be terminated prior to this date without the consent of the Board of Directors. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund.

***Accounting Fees*** - State Street Bank and Trust Company ("State Street Bank") is the Fund's primary accounting provider. Fees for accounting services are included in the custodian fees as State Street Bank also serves as the Fund's custodian. The Adviser is also paid for certain accounting services. The fee paid to the Adviser for these services during the year ended December 31, 2022 amounted to $6,998.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 4 - CAPITAL STOCK

At December 31, 2022, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
|  | **Sold** | **Reinvestment of**<br> **Distributions** | **Redeemed** | **Net Decrease** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 418390 | 4274955 | (12818466) | (8125121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $3207743 | $22187016 | $(98131590) | $(72736831) |
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|  | **Sold** | **Reinvestment of**<br> **Distributions** | **Redeemed** | **Net Increase** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 976627 | 4110178 | (3953486) | 1133319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $10420262 | $37073808 | $(42231639) | $5262431 |

---

#### NOTE 5 - SECURITIES LOANED

The Fund has entered into a securities lending arrangement with State Street Bank. Under the terms of the agreement, the Fund receives fee income from lending transactions; in exchange for such fees, State Street Bank is authorized to loan securities on behalf of the Fund, against receipt of collateral at least equal to the value of the securities loaned. As of December 31, 2022, the Fund did not have any securities on loan. The Fund bears the risk of any deficiency in the amount of the collateral available for return to a borrower due to a loss in an approved investment.

------

#### FEDERAL INCOME TAX INFORMATION (UNAUDITED)

During the calendar year ended December 31, 2022, the Fund declared and paid long-term capital gain distributions in the amount of $20,994,166. The Fund utilized equalization accounting for tax purposes, whereby a portion of redemption payments were treated as distributions of long-term capital gain. As a result, the Fund designated long-term capital gain distributions in the amount of $35,453,672.

During the calendar year ended December 31, 2022, $1,192,850 of dividends paid by the Fund constituted income dividends for federal income tax purposes. The Fund designates $1,192,850 or 100% as income qualifying for the corporate dividends-received deduction.

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Financial Highlights** |

---

The following financial information represents selected data for each share of capital stock outstanding throughout each period:<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| <br> Net Asset Value, Beginning of Period | $&nbsp;&nbsp;&nbsp;&nbsp;8.98 | $&nbsp;&nbsp;&nbsp;&nbsp;9.17 | $&nbsp;&nbsp;&nbsp;&nbsp;8.48 | $&nbsp;&nbsp;&nbsp;&nbsp;6.89 | $10.19 |
| **** <br>**Income (Loss) from Investment Operations:** |  |  |  |  |  |
| Net Investment Income<sup>a</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.07 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.06 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.06 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.07 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.09 |
| Net Realized and Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp; (1.91) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.93 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.09 | &nbsp;&nbsp;&nbsp;&nbsp; (1.49) |
| **Total from Investment Operations** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.84)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.99 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 | &nbsp;&nbsp;&nbsp;&nbsp; **(1.40)** |
| **** <br>**Dividends and Distributions:** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp; (0.10) | &nbsp;&nbsp;&nbsp;&nbsp; (0.07) | &nbsp;&nbsp;&nbsp;&nbsp; (0.06) | &nbsp;&nbsp;&nbsp;&nbsp; (0.14) | &nbsp;&nbsp;&nbsp;&nbsp; (0.09) |
| Distributions from Realized Gains | &nbsp;&nbsp;&nbsp;&nbsp; (1.76) | &nbsp;&nbsp;&nbsp;&nbsp; (1.77) | &nbsp;&nbsp;&nbsp;&nbsp; (0.24) | &nbsp;&nbsp;&nbsp;&nbsp; (0.43) | &nbsp;&nbsp;&nbsp;&nbsp; (1.81) |
| **Total Dividends and Distributions** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.86)** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.84)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.30)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.57)** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.90)** |
| **Net Asset Value, End of Period** | $&nbsp;&nbsp;&nbsp;&nbsp;5.28 | $&nbsp;&nbsp;&nbsp;&nbsp;8.98 | $&nbsp;&nbsp;&nbsp;&nbsp;9.17 | $&nbsp;&nbsp;&nbsp;&nbsp;8.48 | $&nbsp;&nbsp;&nbsp;&nbsp;6.89 |
| <br>Total Return<sup>b</sup> | (20.13)% | 17.85% | 11.72% | 31.17% | (13.60)% |
| **** <br>**Ratios/Supplemental Data:** |  |  |  |  |  |
| Net Assets, End of Period (in thousands) | $85418 | $218296 | $212366 | $217068 | $194007 |
| Ratio of Expenses to Average Net Assets: |  |  |  |  |  |
| Gross | 0.69% | 0.65% | 0.65% | 0.64% | 0.64% |
| Net<sup>c</sup> | 0.69% | 0.65% | 0.65% | 0.64% | 0.64% |
| Ratio of Net Investment Income to Average Net Assets | 0.92% | 0.52% | 0.71% | 0.90% | 0.86% |
| Portfolio Turnover Rate<sup>d</sup> | 8% | 20% | 13% | 8% | 23% |

---

---

| | |
|:---|:---|
| <sup>a</sup> | Per share calculations were based on average shares outstanding for the period. |
| <sup>b</sup> | Assumes hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. |
| <sup>c</sup> | The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of certain reimbursements. |
| <sup>d</sup> | The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

------

---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Report of Independent Registered Public Accounting Firm** |

---

#### The Shareholders and Board of Directors

#### Davis Variable Account Fund, Inc.:

*Opinion on the Financial Statements*

We have audited the accompanying statement of assets and liabilities of Davis Value Portfolio (a separate series of Davis Variable Account Fund, Inc.) (the Fund), including the schedule of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion*

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

#### KPMG LLP

We have served as the auditor of one or more Davis Funds investment companies since 1998.

Minneapolis, Minnesota

February 8, 2023

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---

| | |
|:---|:---|
| **DAVIS VALUE PORTFOLIO** | **Directors and Officers** |

---

For the purpose of their service as Directors to the Davis Funds, the business address for each of the Directors is: 2949 E. Elvira Road, Suite 101, Tucson, AZ 85756. Subject to exceptions and exemptions which may be granted by the Independent Directors, Directors must retire from the Board of Directors and cease being a Director at the close of business on the last day of the calendar year in which the Director attains age seventy-eight (78).

---

| | | | |
|:---|:---|:---|:---|
| **Name, Date of Birth,**<br> **Position(s) Held with**<br> **Fund, Length of Service** | **Principal Occupation(s) During Past Five Years** | **Number of**<br> **Portfolios**<br> **Overseen** | **Other Directorships** |

---

#### Independent Directors

---

| | | | |
|:---|:---|:---|:---|
| **John S. Gates Jr.**<br> (08/02/53)<br> Director since 2007 | Executive Chairman, TradeLane Properties LLC<br> (industrial real estate company). | 13<br>| Chairman and Chief Executive Officer of PortaeCo<br> LLC (private investment company); Director, Miami<br> Corp. (diversified investment company). |
| **Thomas S. Gayner**<br> (12/16/61)<br> Director since 2004<br> Chairman since 2009 | Chief Executive Officer and Director, Markel Corp.<br> (diversified financial holding company). | 13 | Director, Graham Holdings Company (educational and<br> media company); Director, Cable ONE Inc. (cable<br> service provider). |
| **Samuel H. Iapalucci**<br> (07/19/52)<br> Director since 2006 | Retired; Executive Vice President and Chief Financial<br> Officer, CH2M HILL Companies, Ltd. (engineering)<br> until 2008. | 13 |  |
| **Robert P. Morgenthau**<br> (03/22/57)<br> Director since 2002 | Principal, Spears Abacus Advisors, LLC (investment<br> management firm) since 2011; Chairman, NorthRoad<br> Capital Management, LLC (investment management<br> firm) 2002-2011. | 13 |  |
| **Lara N. Vaughan**<br> (04/20/69)<br> Director since 2021 | Chief Executive Officer and Chief Financial Officer of<br> Parchman, Vaughan & Company, L.L.C. (investment<br> bank). | 13 |  |
| **Marsha C. Williams**<br> (03/28/51)<br> Director since 1999<br>| Retired; Senior Vice President and Chief Financial<br> Officer, Orbitz Worldwide, Inc. (travel-service<br> provider) 2007-2010. | 13 | Chairperson, Modine Manufacturing Company (heat<br> transfer technology); Director, Fifth Third Bancorp<br> (diversified financial services); Director, Crown<br> Holdings, Inc. (manufacturing company). |

---

***Interested Directors***\*

---

| | | | |
|:---|:---|:---|:---|
| **Andrew A. Davis**<br> (06/25/63)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, and Clipper Fund; President, Davis Selected<br> Advisers, L.P., and also serves as an executive officer of<br> certain companies affiliated with the Adviser. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014. |
| **Christopher C. Davis**<br> (07/13/65)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, Clipper Fund, and Davis ETF; Chairman, Davis<br> Selected Advisers, L.P., and also serves as an executive<br> officer of certain companies affiliated with the Adviser,<br> including sole member of the Adviser's general partner,<br> Davis Investments, LLC. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014; Lead Independent Director,<br> Graham Holdings Company (educational and media<br> company); Director, The Coca-Cola Company<br> (beverage company); Director, Berkshire Hathaway<br> Inc. (financial services). |

---

\* Andrew A. Davis and Christopher C. Davis own partnership units (directly, indirectly, or both) of the Adviser and are considered to be "interested persons" of the Funds as defined in the Investment Company Act of 1940. Andrew A. Davis and Christopher C. Davis are brothers.

#### Officers

**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, Senior Attorney, and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Andrew A. Davis (born 06/25/63, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Christopher C. Davis (born 07/13/65, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Kenneth C. Eich (born 08/14/53, Davis Funds officer since 1997).** Executive Vice President and Principal Executive Officer of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of two portfolios), and Clipper Funds Trust (consisting of one portfolio); Trustee/Chairman, Executive Vice President, and Principal Executive Officer of Davis Fundamental ETF Trust (consisting of four portfolios); Chief Operating Officer, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Douglas A. Haines (born 03/04/71, Davis Funds officer since 2004).** Vice President, Treasurer, Chief Financial Officer, Principal Financial Officer, and Principal Accounting 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 Director of Fund Accounting, Davis Selected Advisers, L.P.

**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.

------

**DAVIS VALUE PORTFOLIO**<br>

---

| |
|:---|
| **Investment Adviser** |
| Davis Selected Advisers, L.P. (Doing business as "Davis Advisors") |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| (800) 279-0279 |
| **Distributor** |
| Davis Distributors, LLC |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| **Transfer Agent** |
| DST Asset Manager Solutions, Inc. |
| c/o The Davis Funds |
| P.O. Box 219197 |
| Kansas City, Missouri 64121-9197 |
| **Custodian** |
| State Street Bank and Trust Co. |
| One Lincoln Street |
| Boston, Massachusetts 02111 |
| **Legal Counsel** |
| Greenberg Traurig, LLP |
| 1144 15<sup>th</sup> Street, Suite 3300 |
| Denver, Colorado 80202 |
| **Independent Registered Public Accounting Firm** |
| KPMG LLP |
| 4200 Wells Fargo Center |
| 90 South 7<sup>th</sup> Street |
| Minneapolis, MN 55402 |

---

------

***For more information about Davis Value Portfolio, including management fee, charges, and expenses, see the current prospectus, which must precede or accompany this report. The Fund's Statement of Additional Information contains additional information about the Fund's Directors and is available without charge, upon request, by calling 1-800-279-0279 and on the Fund's website at www.davisfunds.com. Quarterly Fact Sheets are available on the Fund's website at www.davisfunds.com.***

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![](cover2.jpg)

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---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Table of Contents** |

---

---

| | |
|:---|:---|
| [Management's Discussion of Fund Performance](#DFPManagementsDiscussionofFu) | 2 |
| [Fund Overview](#DFPFundOverview) | 4 |
| [Expense Example](#DFPExpenseExample) | 5 |
| [Schedule of Investments](#DFPScheduleofInvestments) | 6 |
| [Statement of Assets and Liabilities](#DFPStatementofAssetsandLiabi) | 8 |
| [Statement of Operations](#DFPStatementofOperations) | 9 |
| [Statements of Changes in Net Assets](#DFPStatementsofChangesinNetA) | 10 |
| [Notes to Financial Statements](#DFPNotestoFinancialStatement) | 11 |
| [Federal Income Tax Information](#DFPFEDERALINCOMETAXINFORMATI) | 15 |
| [Financial Highlights](#DFPFinancialHighlights) | 16 |
| [Report of Independent Registered Public Accounting Firm](#DFPReportofIndependentRegist) | 17 |
| [Directors and Officers](#DFPDirectorsandOfficers) | 18 |

---

***This Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Davis Financial Portfolio (the "Fund") prospectus, which contains more information about investment strategies, risks, charges, and expenses. Please read the prospectus carefully before investing or sending money.***

*Shares of the Fund are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.*

#### Portfolio Proxy Voting Policies and Procedures
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30<sup>th</sup>, no later than August 31<sup>st</sup> of each year. The Fund's Form N-PX filing is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

#### Quarterly Schedule of Investments
The Fund files its complete schedule of investments with the SEC on Form N-CSR (as of the end of the second and fourth quarters) and on Form N-PORT Part F (as of the end of the first and third quarters). The Fund's Forms N-CSR (Annual and Semi-Annual Reports) and N-PORT Part F are available without charge, upon request, by calling 1-800-279-0279, on the Fund's website at www.davisfunds.com, and on the SEC's website at www.sec.gov.

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| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Management's Discussion of Fund Performance** |

---

#### Performance Overview
Davis Financial Portfolio outperformed the Standard & Poor's 500<sup>®</sup> Index ("S&P 500<sup>®</sup>" or the "Index") for the twelve-month period ended December 31, 2022 (the "period"). The Fund delivered a total return of -8.53%, versus a -18.11% return for the S&P 500<sup>®</sup>.

<u>S&P 500<sup>®</sup></u>

&nbsp;&nbsp;&nbsp;&nbsp;• Strongest performing sectors<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Energy (+66%), Utilities (+1%), and Consumer Staples (-1%)

&nbsp;&nbsp;&nbsp;&nbsp;• Weakest performing sectors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Communication Services (-40%), Consumer Discretionary (-37%), and Information Technology (-29%)

<u>S&P 500<sup>®</sup> Financials industries</u>

&nbsp;&nbsp;&nbsp;&nbsp;• Strongest performing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **-** Insurance (+10%) and Diversified Financial Services (+1%)

&nbsp;&nbsp;&nbsp;&nbsp;• Weakest performing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Banks (-19%), Consumer Finance (-19%), and Capital Markets (-17%)

#### Contributors<sup>2</sup> to Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Insurance - outperformed the Index industry (+12% vs +10%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Chubb*<sup>3</sup> (+16%) - largest individual contributor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Alleghany* (+25%), *Markel* (+7%), *Everest Re Group* (+24%), *Loews* (+1%), and *Greenlight Capital* (+4%)

*-* *Alleghany -* no longer a Fund holding

&nbsp;&nbsp;&nbsp;&nbsp;• Diversified Financial Services - outperformed the Index industry (+4% vs +1%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Berkshire Hathaway* (+4%)

&nbsp;&nbsp;&nbsp;&nbsp;• Banks - outperformed the Index industry (-12% vs -19%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Danske Bank* (+16%) and *DBS Group Holdings* (+9%)

&nbsp;&nbsp;&nbsp;&nbsp;• Select non-financial company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Prosus* (+22%) - new Fund holding

#### Detractors from Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Consumer Finance - underperformed the Index industry (-27% vs -19%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Capital One Financial* (-35%) - largest individual detractor

&nbsp;&nbsp;&nbsp;&nbsp;• Individual Bank holdings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Bank of America* (-24%), *U.S. Bancorp* (-19%), *PNC Financial* (-19%), *JPMorgan Chase* (-13%), *Wells Fargo* (-12%), *Bank of N.T. Butterfield* (-18%), and *Fifth Third Bancorp* (-10%)

*-* *Fifth Third Bancorp -* new Fund holding

&nbsp;&nbsp;&nbsp;&nbsp;• Other select holdings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Rocket Companies* (-46%) and *Bank of New York Mellon* (-19%)

------

Davis Financial Portfolio's investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. Davis Financial Portfolio's principal risks are: stock market risk, common stock risk, financial services risk, credit risk, interest rate sensitivity risk, focused portfolio risk, headline risk, foreign country risk, large-capitalization companies risk, manager risk, depositary receipts risk, fees and expenses risk, foreign currency risk, emerging market risk, and mid- and small-capitalization companies risk. See the prospectus for a full description of each risk.

Davis Financial Portfolio concentrates its investments in the financial sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The Fund's investment performance, both positive and negative, is expected to reflect the economic performance of the financial sector more than a fund that does not concentrate its portfolio.

Davis Financial Portfolio is allowed to focus its investments in fewer companies, and it may be subject to greater risks than a more diversified portfolio that is not allowed to focus its investments in a few companies. Should the portfolio manager determine that it is prudent to focus the Fund's portfolio in a few companies, the Fund's investment performance, both positive and negative, is expected to reflect the economic performance of its more focused portfolio.

Past performance does not guarantee future results, Fund prices fluctuate, and the value of an investment may be worth more or less than the purchase price. Data provided in this performance overview is for the twelve-month period ended December 31, 2022, unless otherwise noted. Return figures for underlying Fund positions reflect the return of the security from the beginning of the period or the date of first purchase if subsequent thereto through the end of the period or the date the position is completely liquidated. The actual contribution to the Fund will vary based on a number of factors (e.g., trading activity, weighting). Portfolio holding information is as of the end of the twelve-month period, December 31, 2022, unless otherwise noted.

<sup>1</sup> The companies included in the Standard & Poor's 500<sup>®</sup> Index are divided into eleven sectors. One or more industry groups make up a sector. For purposes of measuring concentration, the Fund generally classifies companies at the industry level. See the SAI for additional information regarding the Fund's concentration policy.

<sup>2</sup> A company's or industry's contribution to or detraction from the Fund's performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%.

<sup>3</sup> Management's Discussion of Fund Performance discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase, sell, or hold any particular security. The Schedule of Investments lists the Fund's holdings of each company discussed.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Management's Discussion of Fund Performance - (Continued)** |

---

**Comparison of a $10,000 investment in Davis Financial Portfolio versus the Standard & Poor's 500**<sup>®</sup> **Index**

#### over 10 years for an investment made on December 31, 2012

![](graph2.jpg)

#### Average Annual Total Return for periods ended December 31, 2022

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund & Benchmark Index** | **1-Year** | **5-Year** | **10-Year** | **Since Fund's**<br> **Inception**<br> (07/01/99) | **Gross Expense**<br> **Ratio** | **Net Expense**<br> **Ratio** |
| Davis Financial Portfolio | (8.53)% | 4.76% | 10.21% | 5.93% | 0.75% | 0.75% |
| Standard & Poor's 500<sup>®</sup> Index | (18.11)% | 9.42% | 12.56% | 6.43% |  |  |

---

The Standard & Poor's 500<sup>®</sup> Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations, and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in the Index.

**The performance data quoted in this report represents past performance, assumes that all distributions were reinvested, and is not a guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance data quoted. The operating expense ratio may vary in future years. For most recent month-end performance information, please call Investor Services at 1-800-279-0279 or visit the Fund's website at www.davisfunds.com.**

Fund performance numbers are net of all Fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance included the effect of these additional charges, the return would be lower.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Fund Overview** |
|  | **December 31, 2022** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Composition** | **Portfolio Composition** | **Industry Weightings** | **Industry Weightings** | **Industry Weightings** |
| **(% of Fund's 12/31/22 Net Assets)** | **(% of Fund's 12/31/22 Net Assets)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** |
|  |  |  | **Fund** | **S&P 500**<sup>®</sup> |
| Common Stock (U.S.) | 75.21% | Banks | 46.40% | 3.83% |
| Common Stock (Foreign) | 23.36% | Insurance | 18.57% | 2.45% |
| Short-Term Investments | 1.88% | Capital Markets | 12.77% | 3.13% |
| Other Assets & Liabilities | (0.45)% | Consumer Finance | 10.76% | 0.51% |
|  | 100.00% | Diversified Financial Services | 7.16% | 1.73% |
|  |  | Retailing | 2.62% | 5.47% |
|  |  | Thrifts & Mortgage Finance | 1.72% | – |
|  |  | Information Technology | – | 25.74% |
|  |  | Health Care | – | 15.82% |
|  |  | Media & Entertainment | – | 6.08% |
|  |  | Capital Goods | – | 6.06% |
|  |  | Energy | – | 5.23% |
|  |  | Food, Beverage & Tobacco | – | 3.90% |
|  |  | Other | – | 20.05% |
|  |  |  | 100.00% | 100.00% |

---

#### Top 10 Long-Term Holdings
**(% of Fund's 12/31/22 Net Assets)**

---

| | | |
|:---|:---|:---|
| Berkshire Hathaway Inc., Class A | Diversified Financial Services | 7.06% |
| Capital One Financial Corp. | Consumer Finance | 6.80% |
| JPMorgan Chase & Co. | Banks | 6.56% |
| Wells Fargo & Co. | Banks | 6.27% |
| Chubb Ltd. | Property & Casualty Insurance | 6.10% |
| Markel Corp. | Property & Casualty Insurance | 5.97% |
| Julius Baer Group Ltd. | Capital Markets | 5.59% |
| U.S. Bancorp | Banks | 5.17% |
| Bank of New York Mellon Corp. | Capital Markets | 5.06% |
| DBS Group Holdings Ltd. | Banks | 5.03% |

---

#### New Positions Added (01/01/22-12/31/22)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Industry** | **Date of 1<sup>st</sup>**<br> **Purchase** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **% of Fund's**<br> **12/31/22**<br> **Net Assets** |
| Fifth Third Bancorp | Banks | 05/06/22 | 4.22% |
| Prosus N.V., Class N | Retailing | 03/10/22 | 2.59% |

---

#### Positions Closed (01/01/22-12/31/22)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Industry** | **Date of**<br> **Final Sale** | **Realized**<br> **Gain** |
| Alleghany Corp. | Reinsurance | 06/14/22 | $820234 |

---

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Expense Example** |

---

As a shareholder of the Fund, you incur ongoing costs only, including advisory and administrative fees and other Fund expenses. The Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for the Fund is for the six-month period ended December 31, 2022. Please note that the Expense Example is general and does not reflect charges imposed by your insurance company's separate account or account specific costs, which may increase your total costs of investing in the Fund. If these charges or account specific costs were included in the Expense Example, the expenses would be higher.

#### Actual Expenses

The information represented in the row entitled "Actual" provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

#### Hypothetical Example for Comparison Purposes

The information represented in the row entitled "Hypothetical" provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the information in the row entitled "Hypothetical" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

---

| | | | |
|:---|:---|:---|:---|
|  | **Beginning**<br>**Account Value**<br>**(07/01/22)** | **Ending**<br>**Account Value**<br>**(12/31/22)** | **Expenses Paid**<br>**During Period\***<br>**(07/01/22-12/31/22)** |
| &nbsp;&nbsp;&nbsp;&nbsp; <br>Actual | $1000.00 | $1079.27 | $4.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hypothetical | $1000.00 | $1021.32 | $3.92 |

---

Hypothetical assumes 5% annual return before expenses.

\* Expenses are equal to the Fund's annualized operating expense ratio (0.77%)\*\*, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

\*\* The expense ratio reflects the impact, if any, of certain reimbursements from the Adviser.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Schedule of Investments** |
|  | **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br> (Note 1)** |
| **COMMON STOCK – (98.57%)** | **COMMON STOCK – (98.57%)** | **COMMON STOCK – (98.57%)** |
| **CONSUMER DISCRETIONARY – (2.59%)** | **CONSUMER DISCRETIONARY – (2.59%)** | **CONSUMER DISCRETIONARY – (2.59%)** |
| &nbsp;&nbsp; **Retailing – (2.59%)** | &nbsp;&nbsp; **Retailing – (2.59%)** | &nbsp;&nbsp; **Retailing – (2.59%)** |
| Prosus N.V., Class N (Netherlands) | 19930 | $1374980 |
| Total Consumer Discretionary | Total Consumer Discretionary | 1374980 |
| **FINANCIALS – (95.98%)** | **FINANCIALS – (95.98%)** | **FINANCIALS – (95.98%)** |
| &nbsp;&nbsp; **Banks – (47.43%)** | &nbsp;&nbsp; **Banks – (47.43%)** | &nbsp;&nbsp; **Banks – (47.43%)** |
| &nbsp;&nbsp; **Banks – (45.73%)** | &nbsp;&nbsp; **Banks – (45.73%)** | &nbsp;&nbsp; **Banks – (45.73%)** |
| Bank of America Corp. | 78690 | 2606213 |
| Bank of N.T. Butterfield & Son Ltd. (Bermuda) | 45990 | 1370962 |
| Danske Bank A/S (Denmark) | 99410 | 1964789 |
| DBS Group Holdings Ltd. (Singapore) | 105437 | 2670168 |
| DNB Bank ASA (Norway) | 62990 | 1250246 |
| Fifth Third Bancorp | 68240 | 2238954 |
| JPMorgan Chase & Co. | 26000 | 3486600 |
| Metro Bank PLC (United Kingdom)\* | 97530 | 142670 |
| PNC Financial Services Group, Inc. | 15730 | 2484396 |
| U.S. Bancorp | 63010 | 2747866 |
| Wells Fargo & Co. | 80670 | 3330864 |
|  |  | 24293728 |
| &nbsp;&nbsp; **Thrifts & Mortgage Finance – (1.70%)** | &nbsp;&nbsp; **Thrifts & Mortgage Finance – (1.70%)** | &nbsp;&nbsp; **Thrifts & Mortgage Finance – (1.70%)** |
| Rocket Companies, Inc., Class A | 128770 | 901390 |
|  |  | 25195118 |
| &nbsp;&nbsp; **Diversified Financials – (30.25%)** | &nbsp;&nbsp; **Diversified Financials – (30.25%)** | &nbsp;&nbsp; **Diversified Financials – (30.25%)** |
| &nbsp;&nbsp; **Capital Markets – (12.59%)** | &nbsp;&nbsp; **Capital Markets – (12.59%)** | &nbsp;&nbsp; **Capital Markets – (12.59%)** |
| Bank of New York Mellon Corp. | 59000 | 2685680 |
| Charles Schwab Corp. | 12390 | 1031591 |
| Julius Baer Group Ltd. (Switzerland) | 50949 | 2967732 |
|  |  | 6685003 |
| &nbsp;&nbsp; **Consumer Finance – (10.60%)** | &nbsp;&nbsp; **Consumer Finance – (10.60%)** | &nbsp;&nbsp; **Consumer Finance – (10.60%)** |
| American Express Co. | 13690 | 2022697 |
| Capital One Financial Corp. | 38830 | 3609637 |
|  |  | 5632334 |
| &nbsp;&nbsp; **Diversified Financial Services – (7.06%)** | &nbsp;&nbsp; **Diversified Financial Services – (7.06%)** | &nbsp;&nbsp; **Diversified Financial Services – (7.06%)** |
| Berkshire Hathaway Inc., Class A \* | 8 | 3749688 |
|  |  | 16067025 |
| &nbsp;&nbsp; **Insurance – (18.30%)** | &nbsp;&nbsp; **Insurance – (18.30%)** | &nbsp;&nbsp; **Insurance – (18.30%)** |
| &nbsp;&nbsp; **Life & Health Insurance – (1.25%)** | &nbsp;&nbsp; **Life & Health Insurance – (1.25%)** | &nbsp;&nbsp; **Life & Health Insurance – (1.25%)** |
| Ping An Insurance (Group) Co. of China, Ltd. - H (China) | 100500 | 665026 |
| &nbsp;&nbsp; **Property & Casualty Insurance – (15.30%)** | &nbsp;&nbsp; **Property & Casualty Insurance – (15.30%)** | &nbsp;&nbsp; **Property & Casualty Insurance – (15.30%)** |
| Chubb Ltd. | 14696 | 3241938 |
| Loews Corp. | 29440 | 1717235 |
| Markel Corp. \* | 2405 | 3168563 |
|  |  | 8127736 |
| &nbsp;&nbsp; **Reinsurance – (1.75%)** | &nbsp;&nbsp; **Reinsurance – (1.75%)** | &nbsp;&nbsp; **Reinsurance – (1.75%)** |
| Everest Re Group, Ltd. | 1890 | 626100 |

---

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Schedule of Investments - (Continued)** |
|  | **December 31, 2022** |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **Shares/Principal** | **Value<br> (Note 1)** |
| **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** |
| **FINANCIALS – (CONTINUED)** | **FINANCIALS – (CONTINUED)** | **FINANCIALS – (CONTINUED)** | **FINANCIALS – (CONTINUED)** |
| &nbsp;&nbsp; **Insurance – (Continued)** | &nbsp;&nbsp; **Insurance – (Continued)** | &nbsp;&nbsp; **Insurance – (Continued)** | &nbsp;&nbsp; **Insurance – (Continued)** |
|  | &nbsp;&nbsp; **Reinsurance – (Continued)** | &nbsp;&nbsp; **Reinsurance – (Continued)** | &nbsp;&nbsp; **Reinsurance – (Continued)** |
|  | Greenlight Capital Re, Ltd., Class A \* | 37300 | $303995 |
|  |  |  | 930095 |
|  |  |  | 9722857 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Financials | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Financials | 50985000 |
|  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $32,780,339)**<br> ****  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $32,780,339)**<br> ****  | 52359980 |
| **SHORT-TERM INVESTMENTS – (1.88%)** | **SHORT-TERM INVESTMENTS – (1.88%)** | **SHORT-TERM INVESTMENTS – (1.88%)** | **SHORT-TERM INVESTMENTS – (1.88%)** |
|  | StoneX Financial Inc. Joint Repurchase Agreement, 4.30%, 01/03/23,<br> dated 12/30/22, repurchase value of $529,253 (collateralized by: U.S.<br> Government agency mortgages and obligations in a pooled cash<br> account, 0.00%-8.50%, 12/31/22-10/20/71, total market value $539,580) | $529000 | 529000 |
|  | Truist Securities, Inc. Joint Repurchase Agreement, 4.28%, 01/03/23,<br> dated 12/30/22, repurchase value of $466,222 (collateralized by: U.S.<br> Government agency mortgages and obligation in a pooled cash account,<br> 1.00%-6.00%, 05/26/28-12/01/52, total market value $475,320) | 466000 | 466000 |
|  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $995,000)**<br> ****  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $995,000)**<br> ****  | 995000 |
|  | <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments – (100.45%) – (Identified cost $33,775,339) | <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments – (100.45%) – (Identified cost $33,775,339) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53354980 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities Less Other Assets – (0.45%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities Less Other Assets – (0.45%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (236631) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets – (100.00%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets – (100.00%) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53118349 |
| \* | Non-income producing security. | Non-income producing security. | Non-income producing security. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Statement of Assets and Liabilities** |
|  | **At December 31, 2022** |

---

---

| | |
|:---|:---|
| **ASSETS:** |  |
| Investments in securities, at value\* (see accompanying Schedule of Investments) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 53354980 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 654 |
| Receivables: |  |
| Capital stock sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31824 |
| Dividends and interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 98638 |
| Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2626 |
| **Total assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **53488722** |
| **** <br>**LIABILITIES:** |  |
| Payables: |  |
| Capital stock redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 295536 |
| Accrued audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20104 |
| Accrued investment advisory fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25911 |
| Other accrued expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28822 |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **370373** |
| **** <br>**NET ASSETS** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **53118349** |
| **** <br>**SHARES OUTSTANDING** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4402988** |
| **** <br>**NET ASSET VALUE**, offering, and redemption price per share (Net assets ÷ Shares outstanding) | $12.06 |
| **** <br>**NET ASSETS CONSIST OF:** |  |
| Par value of shares of capital stock | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4403 |
| <br>Additional paid-in capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32806537 |
| <br>Distributable earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20307409 |
| **Net Assets** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **53118349** |
| <br>\*Including: |  |
| Cost of investments | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33775339 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Statement of Operations** |
|  | **For the year ended December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| **INVESTMENT INCOME:** |  |  |
| **Income:** | **Income:** |  |
| Dividends\* | Dividends\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1471026 |
| Interest | Interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15991 |
| **Total income** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1487017** |
| **** <br>**Expenses:** | **** <br>**Expenses:** |  |
| Investment advisory fees (Note 3) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 324121 |  |
| Custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22399 |  |
| Transfer agent fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12396 |  |
| Audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21503 |  |
| Legal fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2829 |  |
| Accounting fees (Note 3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2502 |  |
| Reports to shareholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2902 |  |
| Directors' fees and expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37650 |  |
| Registration and filing fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17 |  |
| Miscellaneous | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16735 |  |
| **Total expenses** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **443054** |
| **Net investment income** | **Net investment income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1043963** |
| **** <br>**REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS**<br> **AND FOREIGN CURRENCY TRANSACTIONS:** |  |  |
| Net realized gain (loss) from: | Net realized gain (loss) from: |  |
| Investment transactions | Investment transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2648326 |
| Foreign currency transactions | Foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (14066) |
| **Net realized gain** | **Net realized gain** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **2634260** |
| Net decrease in unrealized appreciation | Net decrease in unrealized appreciation | &nbsp;&nbsp;&nbsp;&nbsp; (10132114) |
| **Net realized and unrealized loss on investments and**<br> **foreign currency transactions** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(7497854)** |
| **Net decrease in net assets resulting from operations** | **Net decrease in net assets resulting from operations** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(6453891)** |
| \*Net of foreign taxes withheld of | \*Net of foreign taxes withheld of | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40575 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** |
| **** <br>**OPERATIONS:** |  |  |
| Net investment income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1043963 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 876395 |
| Net realized gain from investments and foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2634260 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4904469 |
| Net increase (decrease) in unrealized appreciation on investments and foreign<br> currency transactions | &nbsp;&nbsp;&nbsp;&nbsp; (10132114) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11309017 |
| **Net increase (decrease) in net assets resulting from operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(6453891)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **17089881** |
| **** <br>**DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(2964777)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(6021876)** |
| **** <br>**CAPITAL SHARE TRANSACTIONS:** |  |  |
| Net increase (decrease) in net assets resulting from capital share transactions<br> (Note 4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5298517) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 892019 |
| **** <br>**Total increase (decrease) in net assets** | &nbsp;&nbsp;&nbsp;&nbsp; **(14717185)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **11960024** |
| **NET ASSETS:** |  |  |
| Beginning of year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67835534 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55875510 |
| **End of year** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **53118349** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **67835534** |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Notes to Financial Statements** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation) and is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Fund follows the reporting guidance of the Financial Accounting Standards Board ("FASB") *Accounting Standards Codification Topic 946, Financial Services – Investment Companies*. Only insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may purchase shares of the Fund. The Fund concentrates its investments in the financial sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The COVID-19 pandemic has caused market disruptions on a global scale and the long-term impact is uncertain. The aforementioned disruptions may adversely affect the value and liquidity of the Fund's investments and thus Fund performance. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

***Security Valuation*** - The Fund's Board of Directors has designated Davis Selected Advisers, L.P. ("Davis Advisors" or "Adviser"), the Fund's investment adviser, as the valuation designee for the Fund. The Adviser has established a Pricing Committee to carry out the day-to-day valuation activities for the Fund. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange ("Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities listed on the Exchange (and other national exchanges including NASDAQ) are valued at the last reported sales price on the day of valuation. Listed securities for which no sale was reported on that date are valued at the last quoted bid price. Securities traded on foreign exchanges are valued based upon the last sales price on the principal exchange on which the security is traded prior to the time when the Fund's assets are valued. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what the Adviser identifies as a significant event occurring before the Fund's assets are valued, but after the close of their respective exchanges, will be fair valued using a fair valuation methodology applicable to the security type or the significant event as previously approved by the Pricing Committee. The Pricing Committee considers all facts it deems relevant that are reasonably available, through either public information or information available to the Adviser's portfolio management team, when determining the fair value of a security. To assess the appropriateness of security valuations, the Pricing Committee may consider (i) comparing prior day prices and/or prices of comparable securities; (ii) comparing sale prices to the prior or current day prices and challenge those prices exceeding certain tolerance levels with the third-party pricing service or broker source; (iii) new rounds of financing; (iv) the performance of the market or the issuer's industry; (v) the liquidity of the security; (vi) the size of the holding in a fund; and/or (vii) any other appropriate information. The determination of a security's fair value price often involves the consideration of a number of subjective factors and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security's value would be if a reliable market quotation for the security was readily available.

Short-term investments purchased within 60 days to maturity are valued at amortized cost, which approximates market value.

On a quarterly basis, the Board of Directors receives reports of valuation actions taken by the Pricing Committee. On at least an annual basis, the Board of Directors receives an assessment of the adequacy and effectiveness of the Adviser's process for determining the fair value of the Fund's investments.

**Fair Value Measurements** - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market for the investment. Various inputs are used to determine the fair value of the Fund's investments. These inputs are summarized in the three broad levels listed below.

---

| | |
|:---|:---|
| Level 1 – <br>| quoted prices in active markets for identical securities |
| Level 2 – <br>| other significant observable inputs (including quoted prices for similar investments, interest rates,<br> prepayment speeds, credit risk, etc.) |
| Level 3 – <br>| significant unobservable inputs (including the Fund's own assumptions in determining the fair value of<br> investments) |

---

The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

#### Fair Value Measurements - (Continued)

The following is a summary of the inputs used as of December 31, 2022 in valuing the Fund's investments carried at value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** |
|  | Valuation Inputs | Valuation Inputs | Valuation Inputs | Valuation Inputs |
|  |<br>**Level 1:**<br>**Quoted Prices** | **Level 2:**<br>**Other Significant**<br>**Observable**<br>**Inputs** | **Level 3:**<br>**Significant**<br>**Unobservable**<br>**Inputs** |<br><br>**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | $1374980 | $– | $– | $1374980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financials | 50985000 | – | – | 50985000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-Term Investments | – | 995000 | – | 995000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Investments** | $**52359980** | $**995000** | $**–** | $**53354980** |

---

***Repurchase Agreements*** - Repurchase agreements are transactions under which a Fund purchases a security from a dealer counterparty and agrees to resell the security to that counterparty on a specified future date at the same price, plus a specified interest rate. The Fund's repurchase agreements are secured by U.S. government or agency securities. It is the Fund's policy that its regular custodian or third party custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. In the event of default by the counterparty, the Fund has the contractual right to liquidate the collateral securities and to apply the proceeds in satisfaction of the obligation.

***Currency Translation*** - The market values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to United States Dollar ("USD") on the date of valuation using exchange rates determined as of the close of trading on the Exchange. The cost basis of such assets and liabilities is determined based upon historical exchange rates. Income and expenses are translated at average exchange rates in effect as accrued or incurred.

***Foreign Currency*** - The Fund may enter into forward purchases or sales of foreign currencies to hedge certain foreign currency denominated assets and liabilities against declines in market value relative to USD. Forward currency contracts are marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the forward currency contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the forward currency contract at the time it was opened and value at the time it was closed. Investments in forward currency contracts may expose the Fund to risks resulting from unanticipated movements in foreign currency exchange rates or failure of the counter-party to the agreement to perform in accordance with the terms of the contract. There were no forward contracts entered into by the Fund.

Reported net realized foreign exchange gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the USD equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sales of investments together with market gains and losses on such investments in the Statement of Operations.

***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, including any net realized gains on investments not offset by loss carryovers, to shareholders. Therefore, no provision for federal income or excise tax is required. The Adviser analyzed the Fund's tax positions taken on federal and state income tax returns for all open tax years and concluded that as of December 31, 2022, no provision for income tax is required in the Fund's financial statements related to these tax positions. The Fund's federal and state (Arizona) income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state Department of Revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2019.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

#### Federal Income Taxes - (Continued)

At December 31, 2022, the aggregate cost of investments and unrealized appreciation (depreciation) for federal income tax purposes were as follows:

---

| | |
|:---|:---|
| Cost | $33886232 |
| <br> Unrealized appreciation | 21939976 |
| Unrealized depreciation | (2471228) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation | $19468748 |

---

***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 realized gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.

***Dividends and Distributions to Shareholders*** - Dividends and distributions to shareholders are recorded on the ex-dividend date. Net investment income (loss), net realized gains (losses), and net unrealized appreciation (depreciation) on investments [collectively "Distributable earnings (losses)"] may differ for financial statement and tax purposes primarily due to permanent and temporary differences which may include wash sales, foreign currency transactions, and Directors' deferred compensation payments. The character of dividends and distributions made during the fiscal year from net investment income and net realized securities gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which income or realized gain was recorded by the Fund. The Fund adjusts certain components of capital to reflect permanent differences between financial statement amounts and net income and realized gains/losses determined in accordance with income tax rules. The Fund's net assets have not been affected by this reclassification.

The tax character of distributions paid during the years ended December 31, 2022 and 2021 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1074679 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1549748 |
| Long-term capital gain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1890098 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4472128 |
| &nbsp;&nbsp; Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2964777 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6021876 |

---

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

***Dividends and Distributions to Shareholders*** - ***(Continued)***

As of December 31, 2022, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income | $29613 |
| Undistributed long-term capital gain | 850985 |
| Net unrealized appreciation on investments and foreign currency transactions | 19468360 |
| Other temporary differences | (41549) |
| &nbsp;&nbsp; Total | $20307409 |

---

***Indemnification*** - Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, some of the Fund's contracts with its service providers contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims.

***Use of Estimates in Financial Statements*** - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

***Directors Fees and Expenses*** - The Fund set up a Rabbi Trust to provide for the deferred compensation plan for Independent Directors that enables them to elect to defer receipt of all or a portion of annual fees they are entitled to receive. The value of an eligible Director's account is based upon years of service and fees paid to each Director during the years of service. The amount paid to the Director by the Trust under the plan will be determined based upon the performance of the Davis Funds in which the amounts are invested.

#### NOTE 2 - PURCHASES AND SALES OF SECURITIES

The cost of purchases and proceeds from sales of investment securities (excluding short-term investments) during the year ended December 31, 2022 were $6,720,827 and $13,310,114, respectively.

#### NOTE 3 - FEES AND OTHER TRANSACTIONS WITH SERVICE PROVIDERS (INCLUDING AFFILIATES)

Davis Selected Advisers-NY, Inc. ("DSA-NY"), a 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.

All officers of the Fund (including Interested Directors) hold positions as executive officers with the Adviser or its affiliates.

***Investment Advisory Fees and Reimbursement of Expenses*** - Advisory fees are paid monthly to the Adviser at an annual rate of 0.55% of the Fund's average net assets. The Adviser is contractually committed to waive fees and/or reimburse the Fund's expenses to the extent necessary to cap total annual Fund operating expenses at 1.00% until May 1, 2023; after that date, there is no assurance that expenses will be capped. The expense cap cannot be terminated prior to this date without the consent of the Board of Directors. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund.

***Accounting Fees*** - State Street Bank and Trust Company ("State Street Bank") is the Fund's primary accounting provider. Fees for accounting services are included in the custodian fees as State Street Bank also serves as the Fund's custodian. The Adviser is also paid for certain accounting services. The fee paid to the Adviser for these services during the year ended December 31, 2022 amounted to $2,502.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 4 - CAPITAL STOCK

At December 31, 2022, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
|  | **Sold** | **Reinvestment of** <br> **Distributions** | **Redeemed** | **Net Decrease** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 825855 | 249141 | (1528029) | (453033) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $11409386 | $2964777 | $(19672680) | $(5298517) |
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|  | **Sold** | **Reinvestment of** <br> **Distributions** | **Redeemed** | **Net Increase** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 1290688 | 429520 | (1621580) | 98628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $18293169 | $6021876 | $(23423026) | $892019 |

---

------

#### FEDERAL INCOME TAX INFORMATION (UNAUDITED)

During the calendar year ended December 31, 2022, the Fund declared and paid long-term capital gain distributions in the amount of $1,890,098.

During the calendar year ended December 31, 2022, $1,074,679 of dividends paid by the Fund constituted income dividends for federal income tax purposes. The Fund designates $939,048 or 87% as income qualifying for the corporate dividends-received deduction.

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Financial Highlights** |

---

The following financial information represents selected data for each share of capital stock outstanding throughout each period:<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| Net Asset Value, Beginning of Period | $13.97 | $11.74 | $13.47 | $11.55 | $15.50 |
| **** <br>**Income (Loss) from Investment Operations:** |  |  |  |  |  |
| Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.23<sup>a</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.22 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.21 |
| Net Realized and Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp; (1.43) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.39 | &nbsp;&nbsp;&nbsp;&nbsp; (0.99) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.77 | &nbsp;&nbsp;&nbsp;&nbsp; (1.89) |
| **Total from Investment Operations** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.20)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.59 | &nbsp;&nbsp;&nbsp;&nbsp; **(0.82)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.99 | &nbsp;&nbsp;&nbsp;&nbsp; **(1.68)** |
| **** <br>**Dividends and Distributions:** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp; (0.25) | &nbsp;&nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp; (0.17) | &nbsp;&nbsp;&nbsp;&nbsp; (0.21) | &nbsp;&nbsp;&nbsp;&nbsp; (0.20) |
| Distributions from Realized Gains | &nbsp;&nbsp;&nbsp;&nbsp; (0.46) | &nbsp;&nbsp;&nbsp;&nbsp; (1.15) | &nbsp;&nbsp;&nbsp;&nbsp; (0.74) | &nbsp;&nbsp;&nbsp;&nbsp; (0.86) | &nbsp;&nbsp;&nbsp;&nbsp; (2.07) |
| **Total Dividends and Distributions** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.71)** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.36)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.91)** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.07)** | &nbsp;&nbsp;&nbsp;&nbsp; **(2.27)** |
| **Net Asset Value, End of Period** | $12.06 | $13.97 | $11.74 | $13.47 | $11.55 |
| <br>Total Return<sup>b</sup> | (8.53)% | 30.54% | (5.99)% | 25.86% | (10.67)% |
| **** <br>**Ratios/Supplemental Data:** |  |  |  |  |  |
| Net Assets, End of Period (in thousands) | $53118 | $67836 | $55876 | $67991 | $61692 |
| Ratio of Expenses to Average Net Assets: |  |  |  |  |  |
| Gross | 0.75% | 0.70% | 0.73% | 0.70% | 0.69% |
| Net<sup>c</sup> | 0.75% | 0.70% | 0.73% | 0.70% | 0.69% |
| Ratio of Net Investment Income to Average <br> &nbsp;&nbsp;&nbsp;&nbsp; Net Assets | 1.77% | 1.28% | 1.49% | 1.58% | 1.31% |
| Portfolio Turnover Rate<sup>d</sup> | 12% | 13% | 12% | 6% | 23% |

---

---

| | |
|:---|:---|
| <sup>a</sup> | Per share calculations were based on average shares outstanding for the period. |
| <sup>b</sup> | Assumes hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. |
| <sup>c</sup> | The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of certain reimbursements. |
| <sup>d</sup> | The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

------

---

| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Report of Independent Registered Public Accounting Firm** |

---

#### The Shareholders and Board of Directors

#### Davis Variable Account Fund, Inc.:

*Opinion on the Financial Statements*

We have audited the accompanying statement of assets and liabilities of Davis Financial Portfolio (a separate series of Davis Variable Account Fund, Inc.) (the Fund), including the schedule of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion*

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

#### KPMG LLP

We have served as the auditor of one or more Davis Funds investment companies since 1998.

Minneapolis, Minnesota

February 8, 2023

------

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| | |
|:---|:---|
| **DAVIS FINANCIAL PORTFOLIO** | **Directors and Officers** |

---

For the purpose of their service as Directors to the Davis Funds, the business address for each of the Directors is: 2949 E. Elvira Road, Suite 101, Tucson, AZ 85756. Subject to exceptions and exemptions which may be granted by the Independent Directors, Directors must retire from the Board of Directors and cease being a Director at the close of business on the last day of the calendar year in which the Director attains age seventy-eight (78).

---

| | | | |
|:---|:---|:---|:---|
| **Name, Date of Birth,**<br> **Position(s) Held with**<br> **Fund, Length of Service** | **Principal Occupation(s) During Past Five Years** | **Number of**<br> **Portfolios**<br> **Overseen** | **Other Directorships** |

---

#### Independent Directors

---

| | | | |
|:---|:---|:---|:---|
| **John S. Gates Jr.**<br> (08/02/53)<br> Director since 2007 | Executive Chairman, TradeLane Properties LLC<br> (industrial real estate company). | 13<br>| Chairman and Chief Executive Officer of PortaeCo<br> LLC (private investment company); Director, Miami<br> Corp. (diversified investment company). |
| **Thomas S. Gayner**<br> (12/16/61)<br> Director since 2004<br> Chairman since 2009 | Chief Executive Officer and Director, Markel Corp.<br> (diversified financial holding company). | 13 | Director, Graham Holdings Company (educational and<br> media company); Director, Cable ONE Inc. (cable<br> service provider). |
| **Samuel H. Iapalucci**<br> (07/19/52)<br> Director since 2006 | Retired; Executive Vice President and Chief Financial<br> Officer, CH2M HILL Companies, Ltd. (engineering)<br> until 2008. | 13 |  |
| **Robert P. Morgenthau**<br> (03/22/57)<br> Director since 2002 | Principal, Spears Abacus Advisors, LLC (investment<br> management firm) since 2011; Chairman, NorthRoad<br> Capital Management, LLC (investment management<br> firm) 2002-2011. | 13 |  |
| **Lara N. Vaughan**<br> (04/20/69)<br> Director since 2021 | Chief Executive Officer and Chief Financial Officer of<br> Parchman, Vaughan & Company, L.L.C. (investment<br> bank). | 13 |  |
| **Marsha C. Williams**<br> (03/28/51)<br> Director since 1999<br>| Retired; Senior Vice President and Chief Financial<br> Officer, Orbitz Worldwide, Inc. (travel-service<br> provider) 2007-2010. | 13 | Chairperson, Modine Manufacturing Company (heat<br> transfer technology); Director, Fifth Third Bancorp<br> (diversified financial services); Director, Crown<br> Holdings, Inc. (manufacturing company). |

---

***Interested Directors***\*

---

| | | | |
|:---|:---|:---|:---|
| **Andrew A. Davis**<br> (06/25/63)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, and Clipper Fund; President, Davis Selected<br> Advisers, L.P., and also serves as an executive officer of<br> certain companies affiliated with the Adviser. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014. |
| **Christopher C. Davis**<br> (07/13/65)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, Clipper Fund, and Davis ETF; Chairman, Davis<br> Selected Advisers, L.P., and also serves as an executive<br> officer of certain companies affiliated with the Adviser,<br> including sole member of the Adviser's general partner,<br> Davis Investments, LLC. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014; Lead Independent Director,<br> Graham Holdings Company (educational and media<br> company); Director, The Coca-Cola Company<br> (beverage company); Director, Berkshire Hathaway<br> Inc. (financial services). |

---

\* Andrew A. Davis and Christopher C. Davis own partnership units (directly, indirectly, or both) of the Adviser and are considered to be "interested persons" of the Funds as defined in the Investment Company Act of 1940. Andrew A. Davis and Christopher C. Davis are brothers.

#### Officers

**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, Senior Attorney, and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Andrew A. Davis (born 06/25/63, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Christopher C. Davis (born 07/13/65, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Kenneth C. Eich (born 08/14/53, Davis Funds officer since 1997).** Executive Vice President and Principal Executive Officer of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of two portfolios), and Clipper Funds Trust (consisting of one portfolio); Trustee/Chairman, Executive Vice President, and Principal Executive Officer of Davis Fundamental ETF Trust (consisting of four portfolios); Chief Operating Officer, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Douglas A. Haines (born 03/04/71, Davis Funds officer since 2004).** Vice President, Treasurer, Chief Financial Officer, Principal Financial Officer, and Principal Accounting 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 Director of Fund Accounting, Davis Selected Advisers, L.P.

**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.

------

**DAVIS FINANCIAL PORTFOLIO**<br>

---

| |
|:---|
| **Investment Adviser** |
| Davis Selected Advisers, L.P. (Doing business as "Davis Advisors") |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| (800) 279-0279 |
| **Distributor** |
| Davis Distributors, LLC |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| **Transfer Agent** |
| DST Asset Manager Solutions, Inc. |
| c/o The Davis Funds |
| P.O. Box 219197 |
| Kansas City, Missouri 64121-9197 |
| **Custodian** |
| State Street Bank and Trust Co. |
| One Lincoln Street |
| Boston, Massachusetts 02111 |
| **Legal Counsel** |
| Greenberg Traurig, LLP |
| 1144 15<sup>th</sup> Street, Suite 3300 |
| Denver, Colorado 80202 |
| **Independent Registered Public Accounting Firm** |
| KPMG LLP |
| 4200 Wells Fargo Center |
| 90 South 7<sup>th</sup> Street |
| Minneapolis, MN 55402 |

---

------

***For more information about Davis Financial Portfolio, including management fee, charges, and expenses, see the current prospectus, which must precede or accompany this report. The Fund's Statement of Additional Information contains additional information about the Fund's Directors and is available without charge, upon request, by calling 1-800-279-0279 and on the Fund's website at www.davisfunds.com. Quarterly Fact Sheets are available on the Fund's website at www.davisfunds.com.***

------

------

![](cover3.jpg)

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Table of Contents** |

---

---

| | |
|:---|:---|
| [Management's Discussion of Fund Performance](#DREPManagementsDiscussionofFu) | 2 |
| [Fund Overview](#DREPFundOverview) | 4 |
| [Expense Example](#DREPExpenseExample) | 6 |
| [Schedule of Investments](#DREPScheduleofInvestments) | 7 |
| [Statement of Assets and Liabilities](#DREPStatementofAssetsandLiabi) | 9 |
| [Statement of Operations](#DREPStatementofOperations) | 10 |
| [Statements of Changes in Net Assets](#DREPStatementsofChangesinNetA) | 11 |
| [Notes to Financial Statements](#DREPNotestoFinancialStatement) | 12 |
| [Federal Income Tax Information](#DREPFEDERALINCOMETAXINFORMATI) | 16 |
| [Financial Highlights](#DREPFinancialHighlights) | 17 |
| [Report of Independent Registered Public Accounting Firm](#DREPReportofIndependentRegist) | 18 |
| [Directors and Officers](#DREPDirectorsandOfficers) | 19 |

---

***This Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Davis Real Estate Portfolio (the "Fund") prospectus, which contains more information about investment strategies, risks, charges, and expenses. Please read the prospectus carefully before investing or sending money.***

*Shares of the Fund are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.*

#### Portfolio Proxy Voting Policies and Procedures
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which the Fund votes proxies relating to securities held by the Fund. A description of the Fund's Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

In addition, the Fund is required to file Form N-PX, with its complete proxy voting record for the 12 months ended June 30<sup>th</sup>, no later than August 31<sup>st</sup> of each year. The Fund's Form N-PX filing is available (i) without charge, upon request, by calling the Fund toll-free at 1-800-279-0279, (ii) on the Fund's website at www.davisfunds.com, and (iii) on the SEC's website at www.sec.gov.

#### Quarterly Schedule of Investments
The Fund files its complete schedule of investments with the SEC on Form N-CSR (as of the end of the second and fourth quarters) and on Form N-PORT Part F (as of the end of the first and third quarters). The Fund's Forms N-CSR (Annual and Semi-Annual Reports) and N-PORT Part F are available without charge, upon request, by calling 1-800-279-0279, on the Fund's website at www.davisfunds.com, and on the SEC's website at www.sec.gov.

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Management's Discussion of Fund Performance** |

---

#### Performance Overview

Davis Real Estate Portfolio performed in line with the Wilshire U.S. Real Estate Securities Index ("Wilshire Index" or the "Index") for the twelve-month period ended December 31, 2022 (the "period"). The Fund delivered a total return of -26.80%, versus a -26.75% return for the Wilshire Index.

#### Index Overview

<u>Wilshire Index</u>

&nbsp;&nbsp;&nbsp;&nbsp;• Strongest performing sub-industries<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Diversified REITs (-5%), Hotels, Resorts and Cruise Lines (-6%), and Hotel & Resort REITs (-12%)

&nbsp;&nbsp;&nbsp;&nbsp;• Weakest performing sub-industries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Office REITs (-36%), Residential REITs (-32%), and Real Estate Operating Companies (-31%)

#### Detractors<sup>2</sup> from Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Office REITs - underperformed the Index sub-industry (-39% vs -36%) and overweight (average weighting 12% vs 10%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Alexandria Real Estate Equities*<sup>3</sup> (-33%) and *Douglas Emmett* (-51%)

&nbsp;&nbsp;&nbsp;&nbsp;• Industrial REITs - underperformed the Index sub-industry (-32% vs -30%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Prologis* (-31%) *-* largest individual detractor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Rexford Industrial Realty* (-31%) and *Terreno Realty* (-32%)

&nbsp;&nbsp;&nbsp;&nbsp;• Underweight in Diversified REITs (average weighting 1% vs 2%)

&nbsp;&nbsp;&nbsp;&nbsp;• Individual holdings from Specialized REITs and Residential REITs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Digital Realty Trust* (-41%) and *American Tower* (-26%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Essex Property Trust* (-38%), *AvalonBay Communities* (-34%), and *Equity Residential* (-32%)

#### Contributors to Performance

&nbsp;&nbsp;&nbsp;&nbsp;• Specialized REITs - outperformed the Index sub-industry (-25% vs -27%) and overweight (average weighting 24% vs 22%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *CatchMark Timber Trust* (+27%) and *VICI Properties* (+13%)

*-* *CatchMark Timber Trust -* no longer a Fund holding

&nbsp;&nbsp;&nbsp;&nbsp;• Residential REITs - performed in line with the Index sub-industry (both -32%) and underweight (average weighting 18% vs 23%)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *American Campus Communities* (+14%) - largest individual contributor but no longer a Fund holding after announced it was being taken private

&nbsp;&nbsp;&nbsp;&nbsp;• Repurchase agreement position (cash) in a down market (3% average position)

&nbsp;&nbsp;&nbsp;&nbsp;• Recently added UK Office REIT investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *-* *Derwent London* (+31%) and *Great Portland Estates* (+19%)

------

Davis Real Estate Portfolio's investment objective is total return through a combination of growth and income. There can be no assurance that the Fund will achieve its objective. Davis Real Estate Portfolio's principal risks are: stock market risk, common stock risk, real estate risk, headline risk, large-capitalization companies risk, manager risk, fees and expenses risk, mid- and small-capitalization companies risk, and variable current income risk. See the prospectus for a full description of each risk.

Davis Real Estate Portfolio concentrates its investments in the real estate sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The Fund's investment performance, both positive and negative, is expected to reflect the economic performance of the real estate sector more than a fund that does not concentrate its portfolio.

Past performance does not guarantee future results, Fund prices fluctuate, and the value of an investment may be worth more or less than the purchase price. Data provided in this performance overview is for the twelve-month period ended December 31, 2022, unless otherwise noted. Return figures for underlying Fund positions reflect the return of the security from the beginning of the period or the date of first purchase if subsequent thereto through the end of the period or the date the position is completely liquidated. The actual contribution to the Fund will vary based on a number of factors (e.g., trading activity, weighting). Portfolio holding information is as of the end of the twelve-month period, December 31, 2022, unless otherwise noted.

<sup>1</sup> The companies included in the Wilshire U.S. Real Estate Securities Index are divided into ten sub-industries.

<sup>2</sup> A company's or sub-industry's contribution to or detraction from the Fund's performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%.

<sup>3</sup> Management's Discussion of Fund Performance discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase, sell, or hold any particular security. The Schedule of Investments lists the Fund's holdings of each company discussed.

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Management's Discussion of Fund Performance - (Continued)** |

---

#### Comparison of a $10,000 investment in Davis Real Estate Portfolio versus the
**Standard & Poor's 500**<sup>®</sup> **Index and the Wilshire U.S. Real Estate Securities Index**

#### over 10 years for an investment made on December 31, 2012

![](graph3.jpg)

#### Average Annual Total Return for periods ended December 31, 2022

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund & Benchmark Indices** | **1-Year** | **5-Year** | **10-Year** | **Since Fund's**<br> **Inception**<br> (07/01/99) | **Gross Expense**<br> **Ratio** | **Net Expense**<br> **Ratio** |
| Davis Real Estate Portfolio | (26.80)% | 2.71% | 5.67% | 7.39% | 1.07% | 1.00% |
| Standard & Poor's 500<sup>®</sup> Index | (18.11)% | 9.42% | 12.56% | 6.43% |  |  |
| Wilshire U.S. Real Estate Securities<br> Index | <br> (26.75)% | <br> 3.36% | <br> 6.48% | <br> 9.00% |  |  |

---

The Standard & Poor's 500<sup>®</sup> Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations, and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in the Index.

The Wilshire U.S. Real Estate Securities Index is a broad measure of the performance of publicly traded real estate securities. It reflects no deduction for fees or expenses. Investments cannot be made directly in the Index.

**The performance data quoted in this report represents past performance, assumes that all distributions were reinvested, and is not a guarantee of future results. The investment return and principal value will fluctuate so that shares may be worth more or less than their original cost when redeemed. Current performance may be higher or lower than performance data quoted. The operating expense ratio may vary in future years. For most recent month-end performance information, please call Investor Services at 1-800-279-0279 or visit the Fund's website at www.davisfunds.com.**

Fund performance numbers are net of all Fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance included the effect of these additional charges, the return would be lower.

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---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Fund Overview** |
|  | **December 31, 2022** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Composition** | **Portfolio Composition** | **Sub-Industry Weightings** | **Sub-Industry Weightings** | **Sub-Industry Weightings** |
| **(% of Fund's 12/31/22 Net Assets)** | **(% of Fund's 12/31/22 Net Assets)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** | **(% of 12/31/22 Stock Holdings)** |
|  |  |  |<br>**Fund** | **Wilshire U.S.**<br>**Real Estate**<br>**Securities Index** |
| Common Stock (U.S.) | 97.00% | Specialized REITs | 25.97% | 22.13% |
| Common Stock (Foreign) | 1.26% | Residential REITs | 17.57% | 21.27% |
| Short-Term Investments | 1.67% | Industrial REITs | 16.23% | 17.47% |
| Other Assets & Liabilities | 0.07% | Office REITs | 13.67% | 8.97% |
|  | 100.00% | Retail REITs | 13.20% | 12.81% |
|  |  | Health Care REITs | 6.63% | 10.50% |
|  |  | Hotel & Resort REITs | 3.86% | 3.78% |
|  |  | Diversified REITs | 1.47% | 2.26% |
|  |  | Integrated Telecommunication<br> &nbsp;&nbsp;&nbsp;&nbsp;Services | 1.40% | – |
|  |  | Hotels, Resorts & Cruise Lines | – | 0.57% |
|  |  | Real Estate Operating Companies | – | 0.24% |
|  |  |  | 100.00% | 100.00% |

---

#### Top 10 Long-Term Holdings

#### (% of Fund's 12/31/22 Net Assets)

---

| | | |
|:---|:---|:---|
| Prologis, Inc. | Industrial REITs | 7.24% |
| Public Storage | Specialized REITs | 4.76% |
| Equinix, Inc. | Specialized REITs | 4.63% |
| Simon Property Group, Inc. | Retail REITs | 4.21% |
| Alexandria Real Estate Equities, Inc. | Office REITs | 4.16% |
| Brixmor Property Group, Inc. | Retail REITs | 3.94% |
| American Tower Corp. | Specialized REITs | 3.83% |
| AvalonBay Communities, Inc. | Residential REITs | 3.76% |
| Rexford Industrial Realty, Inc. | Industrial REITs | 3.65% |
| Essex Property Trust, Inc. | Residential REITs | 3.49% |

---

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---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Fund Overview - (Continued)** |
|  | **December 31, 2022** |

---

#### New Positions Added (01/01/22-12/31/22)
(Highlighted positions are those greater than 1.30% of the Fund's 12/31/22 net assets)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Sub-Industry** | **Date of 1<sup>st</sup>**<br> **Purchase** | **% of Fund's** <br> **12/31/22** <br> **Net Assets** |
| CubeSmart | Specialized REITs | 01/24/22 | 1.41% |
| Derwent London plc | Office REITs | 10/07/22 | 0.66% |
| Great Portland Estates plc | Office REITs | 10/07/22 | 0.60% |
| Innovative Industrial Properties, Inc. | Industrial REITs | 01/14/22 | 1.21% |
| NetSTREIT Corp. | Retail REITs | 01/05/22 | 1.29% |
| Radius Global Infrastructure, Inc., Class A | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Integrated Telecommunication<br> Services | 01/20/22 | 1.37% |

---

#### Positions Closed (01/01/22-12/31/22)
(Gains and losses greater than $70,000 are highlighted)

---

| | | | |
|:---|:---|:---|:---|
| **Security** | **Sub-Industry** | **Date of**<br> **Final Sale** | &nbsp;&nbsp;&nbsp; **Realized**<br> **Gain (Loss)** |
| Acadia Realty Trust | Retail REITs | 11/22/22 | $(34164) |
| American Campus Communities, Inc. | Residential REITs | 04/25/22 | 258016 |
| CatchMark Timber Trust Inc., Class A | Specialized REITs | 08/24/22 | 35201 |
| CyrusOne Inc. | Specialized REITs | 01/24/22 | 51703 |
| Healthcare Realty Trust Inc. | Health Care REITs | 10/11/22 | (32900) |
| SL Green Realty Corp. | Office REITs | 07/18/22 | (51462) |
| Vornado Realty Trust | Office REITs | 05/12/22 | (74876) |

---

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| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Expense Example** |

---

As a shareholder of the Fund, you incur ongoing costs only, including advisory and administrative fees and other Fund expenses. The Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for the Fund is for the six-month period ended December 31, 2022. Please note that the Expense Example is general and does not reflect charges imposed by your insurance company's separate account or account specific costs, which may increase your total costs of investing in the Fund. If these charges or account specific costs were included in the Expense Example, the expenses would be higher.

#### Actual Expenses

The information represented in the row entitled "Actual" provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

#### Hypothetical Example for Comparison Purposes

The information represented in the row entitled "Hypothetical" provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the information in the row entitled "Hypothetical" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Beginning**<br>&nbsp;&nbsp;&nbsp;&nbsp; **Account Value**<br>&nbsp;&nbsp;&nbsp;&nbsp; **(07/01/22)** | &nbsp;&nbsp;&nbsp;&nbsp; **Ending**<br>&nbsp;&nbsp;&nbsp;&nbsp; **Account Value**<br>&nbsp;&nbsp;&nbsp;&nbsp; **(12/31/22)** | &nbsp;&nbsp;&nbsp;&nbsp; **Expenses Paid**<br>&nbsp;&nbsp;&nbsp;&nbsp; **During Period\***<br>**(07/01/22-12/31/22)** |
| &nbsp;&nbsp;&nbsp;&nbsp; <br>Actual | $1000.00 | $927.57 | $4.86 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hypothetical | $1000.00 | $1020.16 | $5.09 |

---

Hypothetical assumes 5% annual return before expenses.

\* Expenses are equal to the Fund's annualized operating expense ratio (1.00%)\*\*, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

\*\* The expense ratio reflects the impact, if any, of certain reimbursements from the Adviser.

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| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Schedule of Investments** |
|  | **December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| | **Shares** | **Value<br> (Note 1)** |
| **COMMON STOCK – (98.26%)** | **COMMON STOCK – (98.26%)** | **COMMON STOCK – (98.26%)** |
| **COMMUNICATION SERVICES – (1.37%)** | **COMMUNICATION SERVICES – (1.37%)** | **COMMUNICATION SERVICES – (1.37%)** |
| &nbsp;&nbsp; **Telecommunication Services – (1.37%)** | &nbsp;&nbsp; **Telecommunication Services – (1.37%)** | &nbsp;&nbsp; **Telecommunication Services – (1.37%)** |
| &nbsp;&nbsp; **Integrated Telecommunication Services – (1.37%)** | &nbsp;&nbsp; **Integrated Telecommunication Services – (1.37%)** | &nbsp;&nbsp; **Integrated Telecommunication Services – (1.37%)** |
| Radius Global Infrastructure, Inc., Class A \* | 11630 | $137467 |
| Total Communication Services | Total Communication Services | 137467 |
| **REAL ESTATE – (96.89%)** | **REAL ESTATE – (96.89%)** | **REAL ESTATE – (96.89%)** |
| &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (96.89%)** | &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (96.89%)** | &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (96.89%)** |
| &nbsp;&nbsp; **Diversified REITs – (1.45%)** | &nbsp;&nbsp; **Diversified REITs – (1.45%)** | &nbsp;&nbsp; **Diversified REITs – (1.45%)** |
| STORE Capital Corp. | 4520 | 144911 |
| &nbsp;&nbsp; **Health Care REITs – (6.51%)** | &nbsp;&nbsp; **Health Care REITs – (6.51%)** | &nbsp;&nbsp; **Health Care REITs – (6.51%)** |
| Healthpeak Properties, Inc. | 4490 | 112564 |
| Ventas, Inc. | 6420 | 289221 |
| Welltower Inc. | 3820 | 250401 |
|  |  | 652186 |
| &nbsp;&nbsp; **Hotel & Resort REITs – (3.79%)** | &nbsp;&nbsp; **Hotel & Resort REITs – (3.79%)** | &nbsp;&nbsp; **Hotel & Resort REITs – (3.79%)** |
| Host Hotels & Resorts Inc. | 10460 | 167883 |
| Sunstone Hotel Investors, Inc. | 21930 | 211844 |
|  |  | 379727 |
| &nbsp;&nbsp; **Industrial REITs – (15.95%)** | &nbsp;&nbsp; **Industrial REITs – (15.95%)** | &nbsp;&nbsp; **Industrial REITs – (15.95%)** |
| Americold Realty Trust, Inc. | 2330 | 65962 |
| Innovative Industrial Properties, Inc. | 1200 | 121620 |
| Prologis, Inc. | 6427 | 724516 |
| Rexford Industrial Realty, Inc. | 6690 | 365541 |
| Terreno Realty Corp. | 5610 | 319041 |
|  |  | 1596680 |
| &nbsp;&nbsp; **Office REITs – (13.44%)** | &nbsp;&nbsp; **Office REITs – (13.44%)** | &nbsp;&nbsp; **Office REITs – (13.44%)** |
| Alexandria Real Estate Equities, Inc. | 2860 | 416616 |
| Boston Properties, Inc. | 1450 | 97991 |
| Cousins Properties, Inc. | 11375 | 287674 |
| Derwent London plc (United Kingdom) | 2310 | 66131 |
| Douglas Emmett, Inc. | 12230 | 191766 |
| Great Portland Estates plc (United Kingdom) | 9980 | 59723 |
| Highwoods Properties, Inc. | 3750 | 104925 |
| Hudson Pacific Properties, Inc. | 12350 | 120166 |
|  |  | 1344992 |
| &nbsp;&nbsp; **Residential REITs – (17.26%)** | &nbsp;&nbsp; **Residential REITs – (17.26%)** | &nbsp;&nbsp; **Residential REITs – (17.26%)** |
| American Homes 4 Rent, Class A | 7140 | 215200 |
| AvalonBay Communities, Inc. | 2330 | 376341 |
| Camden Property Trust | 1970 | 220404 |
| Equity Residential | 3630 | 214170 |
| Essex Property Trust, Inc. | 1650 | 349668 |
| Sun Communities, Inc. | 850 | 121550 |
| UDR, Inc. | 5950 | 230443 |
|  |  | 1727776 |
| &nbsp;&nbsp; **Retail REITs – (12.97%)** | &nbsp;&nbsp; **Retail REITs – (12.97%)** | &nbsp;&nbsp; **Retail REITs – (12.97%)** |
| Brixmor Property Group, Inc. | 17400 | 394458 |
| Federal Realty Investment Trust | 1410 | 142467 |
| NetSTREIT Corp. | 7040 | 129043 |

---

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Schedule of Investments - (Continued)** |
|  | **December 31, 2022** |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **Shares/Principal** | **Value<br> (Note 1)** |
| **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** | **COMMON STOCK – (CONTINUED)** |
|  | **REAL ESTATE – (CONTINUED)** | **REAL ESTATE – (CONTINUED)** | **REAL ESTATE – (CONTINUED)** |
|  | &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (Continued)** | &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (Continued)** | &nbsp;&nbsp; **Equity Real Estate Investment Trusts (REITs) – (Continued)** |
| | &nbsp;&nbsp; **Retail REITs – (Continued)** | &nbsp;&nbsp; **Retail REITs – (Continued)** | &nbsp;&nbsp; **Retail REITs – (Continued)** |
|  | Retail Opportunity Investments Corp. | 14005 | $210495 |
|  | Simon Property Group, Inc. | 3590 | 421753 |
|  |  |  | 1298216 |
|  | &nbsp;&nbsp; **Specialized REITs – (25.52%)** | &nbsp;&nbsp; **Specialized REITs – (25.52%)** | &nbsp;&nbsp; **Specialized REITs – (25.52%)** |
|  | American Tower Corp. | 1810 | 383467 |
|  | Crown Castle Inc. | 2270 | 307903 |
|  | CubeSmart | 3510 | 141278 |
|  | Digital Realty Trust, Inc. | 2860 | 286772 |
|  | Equinix, Inc. | 708 | 463761 |
|  | Extra Space Storage Inc. | 1390 | 204580 |
|  | Life Storage, Inc. | 1590 | 156615 |
|  | Public Storage | 1700 | 476323 |
|  | VICI Properties Inc. | 4120 | 133488 |
|  |  |  | 2554187 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Real Estate | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Real Estate | 9698675 |
|  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $8,581,127)**<br> ****  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL COMMON STOCK – (Identified cost $8,581,127)**<br> ****  | 9836142 |
| **SHORT-TERM INVESTMENTS – (1.67%)** | **SHORT-TERM INVESTMENTS – (1.67%)** | **SHORT-TERM INVESTMENTS – (1.67%)** | **SHORT-TERM INVESTMENTS – (1.67%)** |
|  | StoneX Financial Inc. Joint Repurchase Agreement, 4.30%, 01/03/23,<br> dated 12/30/22, repurchase value of $89,043 (collateralized by: U.S.<br> Government agency mortgages and obligations in a pooled cash<br> account, 0.00%-8.50%, 12/31/22-10/20/71, total market value $90,780) | $89000 | 89000 |
|  | Truist Securities, Inc. Joint Repurchase Agreement, 4.28%, 01/03/23,<br> dated 12/30/22, repurchase value of $78,037 (collateralized by: U.S.<br> Government agency mortgages and obligation in a pooled cash account,<br> 0.00%-6.50%, 01/15/26-12/01/52, total market value $79,560) | 78000 | 78000 |
|  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $167,000)**<br> ****  | <br> **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL SHORT-TERM INVESTMENTS – (Identified cost $167,000)**<br> ****  | 167000 |
|  | <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments – (99.93%) – (Identified cost $8,748,127) | <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments – (99.93%) – (Identified cost $8,748,127) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10003142 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets Less Liabilities – (0.07%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets Less Liabilities – (0.07%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7376 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets – (100.00%) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets – (100.00%) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10010518 |
| \* | Non-income producing security. | Non-income producing security. | Non-income producing security. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

------

#### <br>

**DAVIS REAL ESTATE PORTFOLIO Statement of Assets and Liabilities <br> At December 31, 2022**

---

| | |
|:---|:---|
| **ASSETS:** |  |
| Investments in securities, at value\* (see accompanying Schedule of Investments) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10003142 |
| Cash | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 584 |
| Receivables: |  |
| Capital stock sold | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2377 |
| Dividends and interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45493 |
| Prepaid expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 606 |
| Due from Adviser | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1370 |
| **Total assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **10053572** |
| **** <br>**LIABILITIES:** |  |
| Payables: |  |
| Capital stock redeemed | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 90 |
| Accrued audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18929 |
| Accrued custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8180 |
| Accrued investment advisory fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6871 |
| Other accrued expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8984 |
| **Total liabilities** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **43054** |
| **** <br>**NET ASSETS** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **10010518** |
| **** <br>**SHARES OUTSTANDING** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **755151** |
| **** <br>**NET ASSET VALUE**, offering, and redemption price per share (Net assets ÷ Shares outstanding) | $13.26 |
| **** <br>**NET ASSETS CONSIST OF:** |  |
| Par value of shares of capital stock | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 755 |
| <br>Additional paid-in capital | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8860108 |
| <br>Distributable earnings | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1149655 |
| **Net Assets** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **10010518** |
| <br>\*Including: |  |
| Cost of investments | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8748127 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Statement of Operations** |
|  | **For the year ended December 31, 2022** |

---

---

| | | |
|:---|:---|:---|
| **INVESTMENT INCOME:** |  |  |
| **Income:** | **Income:** |  |
| Dividends\* | Dividends\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 322669 |
| Interest | Interest | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6542 |
| **Total income** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **329211** |
| **** <br>**Expenses:** | **** <br>**Expenses:** |  |
| Investment advisory fees (Note 3) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70299 |  |
| Custodian fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10175 |  |
| Transfer agent fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7267 |  |
| Audit fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20328 |  |
| Legal fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 620 |  |
| Accounting fees (Note 3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2000 |  |
| Reports to shareholders | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 829 |  |
| Directors' fees and expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10865 |  |
| Registration and filing fees | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 |  |
| Miscellaneous | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14157 |  |
| **Total expenses** | **Total expenses** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **136544** |
| Reimbursement of expenses by Adviser (Note 3) | Reimbursement of expenses by Adviser (Note 3) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (8750) |
| **Net expenses** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **127794** |
| **Net investment income** | **Net investment income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **201417** |
| **** <br>**REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS**<br> **AND FOREIGN CURRENCY TRANSACTIONS:** |  |  |
| Net realized gain (loss) from: | Net realized gain (loss) from: |  |
| Investment transactions | Investment transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 317831 |
| Foreign currency transactions | Foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(213) |
| **Net realized gain** | **Net realized gain** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **317618** |
| Net decrease in unrealized appreciation | Net decrease in unrealized appreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4594323) |
| **Net realized and unrealized loss on investments and**<br> **foreign currency transactions** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(4276705)** |
| **Net decrease in net assets resulting from operations** | **Net decrease in net assets resulting from operations** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(4075288)** |
| <br>\*Net of foreign taxes withheld of | <br>\*Net of foreign taxes withheld of | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42 |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Statements of Changes in Net Assets** |

---

---

| | | |
|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** |
| **** <br>**OPERATIONS:** |  |  |
| Net investment income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 201417 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 116880 |
| Net realized gain from investments and foreign currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 317618 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 841005 |
| Net increase (decrease) in unrealized appreciation on investments and foreign<br> currency transactions | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4594323) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3916022 |
| **Net increase (decrease) in net assets resulting from operations** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(4075288)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **4873907** |
| **** <br>**DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(831969)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(167554)** |
| **** <br>**CAPITAL SHARE TRANSACTIONS:** |  |  |
| Net increase (decrease) in net assets resulting from capital share transactions<br> (Note 4) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1738208) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 323329 |
| **** <br>**Total increase (decrease) in net assets** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(6645465)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **5029682** |
| **** <br>**NET ASSETS:** |  |  |
| Beginning of year | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16655983 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11626301 |
| **End of year** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **10010518** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **16655983** |

---

***See Notes to Financial Statements***<br>

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Notes to Financial Statements** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation) and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund follows the reporting guidance of the Financial Accounting Standards Board ("FASB") *Accounting Standards Codification Topic 946, Financial Services – Investment Companies*. Only insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may purchase shares of the Fund. The Fund concentrates its investments in the real estate sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The COVID-19 pandemic has caused market disruptions on a global scale and the long-term impact is uncertain. The aforementioned disruptions may adversely affect the value and liquidity of the Fund's investments and thus Fund performance. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

***Security Valuation*** - The Fund's Board of Directors has designated Davis Selected Advisers, L.P. ("Davis Advisors" or "Adviser"), the Fund's investment adviser, as the valuation designee for the Fund. The Adviser has established a Pricing Committee to carry out the day-to-day valuation activities for the Fund. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange ("Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities listed on the Exchange (and other national exchanges including NASDAQ) are valued at the last reported sales price on the day of valuation. Listed securities for which no sale was reported on that date are valued at the last quoted bid price. Securities traded on foreign exchanges are valued based upon the last sales price on the principal exchange on which the security is traded prior to the time when the Fund's assets are valued. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what the Adviser identifies as a significant event occurring before the Fund's assets are valued, but after the close of their respective exchanges, will be fair valued using a fair valuation methodology applicable to the security type or the significant event as previously approved by the Pricing Committee. The Pricing Committee considers all facts it deems relevant that are reasonably available, through either public information or information available to the Adviser's portfolio management team, when determining the fair value of a security. To assess the appropriateness of security valuations, the Pricing Committee may consider (i) comparing prior day prices and/or prices of comparable securities; (ii) comparing sale prices to the prior or current day prices and challenge those prices exceeding certain tolerance levels with the third-party pricing service or broker source; (iii) new rounds of financing; (iv) the performance of the market or the issuer's industry; (v) the liquidity of the security; (vi) the size of the holding in a fund; and/or (vii) any other appropriate information. The determination of a security's fair value price often involves the consideration of a number of subjective factors and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security's value would be if a reliable market quotation for the security was readily available.

Short-term investments purchased within 60 days to maturity are valued at amortized cost, which approximates market value.

On a quarterly basis, the Board of Directors receives reports of valuation actions taken by the Pricing Committee. On at least an annual basis, the Board of Directors receives an assessment of the adequacy and effectiveness of the Adviser's process for determining the fair value of the Fund's investments.

**Fair Value Measurements** - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market for the investment. Various inputs are used to determine the fair value of the Fund's investments. These inputs are summarized in the three broad levels listed below.

---

| | |
|:---|:---|
| Level 1 – <br>| quoted prices in active markets for identical securities |
| Level 2 – <br>| other significant observable inputs (including quoted prices for similar investments, interest rates,<br> prepayment speeds, credit risk, etc.) |
| Level 3 – <br>| significant unobservable inputs (including the Fund's own assumptions in determining the fair value of<br> investments) |

---

The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

#### Fair Value Measurements - (Continued)

The following is a summary of the inputs used as of December 31, 2022 in valuing the Fund's investments carried at value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** | **Investments in Securities at Value** |
|  | Valuation Inputs | Valuation Inputs | Valuation Inputs | Valuation Inputs |
|  |<br>**Level 1:**<br>**Quoted Prices** | **Level 2:**<br>**Other Significant**<br>**Observable**<br>**Inputs** | **Level 3:**<br>**Significant**<br>**Unobservable**<br>**Inputs** |<br><br>**Total** |
| &nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication Services | $137467 | $– | $– | $137467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real Estate | 9698675 | – | – | 9698675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-Term Investments | – | 167000 | – | 167000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Investments** | $**9836142** | $**167000** | $**–** | $**10003142** |

---

***Repurchase Agreements*** - Repurchase agreements are transactions under which a Fund purchases a security from a dealer counterparty and agrees to resell the security to that counterparty on a specified future date at the same price, plus a specified interest rate. The Fund's repurchase agreements are secured by U.S. government or agency securities. It is the Fund's policy that its regular custodian or third party custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. In the event of default by the counterparty, the Fund has the contractual right to liquidate the collateral securities and to apply the proceeds in satisfaction of the obligation.

***Currency Translation*** - The market values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to United States Dollar ("USD") on the date of valuation using exchange rates determined as of the close of trading on the Exchange. The cost basis of such assets and liabilities is determined based upon historical exchange rates. Income and expenses are translated at average exchange rates in effect as accrued or incurred.

***Foreign Currency*** - The Fund may enter into forward purchases or sales of foreign currencies to hedge certain foreign currency denominated assets and liabilities against declines in market value relative to USD. Forward currency contracts are marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the forward currency contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the forward currency contract at the time it was opened and value at the time it was closed. Investments in forward currency contracts may expose the Fund to risks resulting from unanticipated movements in foreign currency exchange rates or failure of the counter-party to the agreement to perform in accordance with the terms of the contract. There were no forward contracts entered into by the Fund.

Reported net realized foreign exchange gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the USD equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sales of investments together with market gains and losses on such investments in the Statement of Operations.

***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, including any net realized gains on investments not offset by loss carryovers, to shareholders. Therefore, no provision for federal income or excise tax is required. The Adviser analyzed the Fund's tax positions taken on federal and state income tax returns for all open tax years and concluded that as of December 31, 2022, no provision for income tax is required in the Fund's financial statements related to these tax positions. The Fund's federal and state (Arizona) income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state Department of Revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2019.

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

#### Federal Income Taxes - (Continued)

Under current tax regulations, losses realized after October 31 ("post-October" losses; for the period from November 1, 2022 through December 31, 2022) may be deferred and treated as occurring on the first business day of the following fiscal year. At December 31, 2022, the Fund had long-term post-October losses in the amount of $53,848.

At December 31, 2022, the aggregate cost of investments and unrealized appreciation (depreciation) for federal income tax purposes were as follows:

---

| | |
|:---|:---|
| Cost | $8887797 |
| <br> Unrealized appreciation | 2071553 |
| Unrealized depreciation | (956208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized appreciation | $1115345 |

---

***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 realized gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date. Dividend income from REIT securities may include return of capital. Upon notification from the issuer, the amount of the return of capital is reclassified to adjust dividend income, reduce the cost basis, and/or adjust realized gain/loss. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.

***Dividends and Distributions to Shareholders*** - Dividends and distributions to shareholders are recorded on the ex-dividend date. Net investment income (loss), net realized gains (losses), and net unrealized appreciation (depreciation) on investments [collectively "Distributable earnings (losses)"] may differ for financial statement and tax purposes primarily due to permanent and temporary differences which may include wash sales, deferred post-October losses, Directors' deferred compensation payments, and foreign currency transactions. The character of dividends and distributions made during the fiscal year from net investment income and net realized securities gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which income or realized gain was recorded by the Fund. The Fund adjusts certain components of capital to reflect permanent differences between financial statement amounts and net income and realized gains/losses determined in accordance with income tax rules. The Fund's net assets have not been affected by this reclassification.

The tax character of distributions paid during the years ended December 31, 2022 and 2021 was as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 207248 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 167554 |
| Long-term capital gain | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 624721 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – |
| &nbsp;&nbsp; Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 831969 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 167554 |

---

As of December 31, 2022, the components of distributable earnings on a tax basis were as follows:

---

| | |
|:---|:---|
| Undistributed ordinary income | $99130 |
| Net unrealized appreciation on investments and foreign currency<br> transactions | 1115343 |
| Deferred long-term post-October losses | (53848) |
| Other temporary differences | (10970) |
| &nbsp;&nbsp; Total | $1149655 |

---

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)

***Indemnification*** - Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, some of the Fund's contracts with its service providers contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims.

***Use of Estimates in Financial Statements*** - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

***Directors Fees and Expenses*** - The Fund set up a Rabbi Trust to provide for the deferred compensation plan for Independent Directors that enables them to elect to defer receipt of all or a portion of annual fees they are entitled to receive. The value of an eligible Director's account is based upon years of service and fees paid to each Director during the years of service. The amount paid to the Director by the Trust under the plan will be determined based upon the performance of the Davis Funds in which the amounts are invested.

#### NOTE 2 - PURCHASES AND SALES OF SECURITIES

The cost of purchases and proceeds from sales of investment securities (excluding short-term investments) during the year ended December 31, 2022 were $2,720,851 and $4,136,799, respectively.

#### NOTE 3 - FEES AND OTHER TRANSACTIONS WITH SERVICE PROVIDERS (INCLUDING AFFILIATES)

Davis Selected Advisers-NY, Inc. ("DSA-NY"), a 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.

All officers of the Fund (including Interested Directors) hold positions as executive officers with the Adviser or its affiliates.

***Investment Advisory Fees and Reimbursement of Expenses*** - Advisory fees are paid monthly to the Adviser at an annual rate of 0.55% of the Fund's average net assets. The Adviser is contractually committed to waive fees and/or reimburse the Fund's expenses to the extent necessary to cap total annual Fund operating expenses at 1.00% until May 1, 2023; after that date, there is no assurance that expenses will be capped. The expense cap cannot be terminated prior to this date without the consent of the Board of Directors. The Adviser may not recoup any of the operating expenses it has reimbursed to the Fund. During the year ended December 31, 2022, such reimbursements amounted to $8,750.

***Accounting Fees*** - State Street Bank and Trust Company ("State Street Bank") is the Fund's primary accounting provider. Fees for accounting services are included in the custodian fees as State Street Bank also serves as the Fund's custodian. The Adviser is also paid for certain accounting services. The fee paid to the Adviser for these services during the year ended December 31, 2022 amounted to $2,000.

------

---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Notes to Financial Statements - (Continued)** |
|  | **December 31, 2022** |

---

#### NOTE 4 - CAPITAL STOCK

At December 31, 2022, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
|  | **Sold** | **Reinvestment of**<br> **Distributions** | **Redeemed** | **Net Decrease** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 59555 | 62238 | (211411) | (89618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $1017777 | $831969 | $(3587954) | $(1738208) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|  | **Sold** | **Reinvestment of**<br> **Distributions** | **Redeemed** | **Net Increase** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares: | 155394 | 9658 | (147690) | 17362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Value: | $2619644 | $167554 | $(2463869) | $323329 |

---

------

#### FEDERAL INCOME TAX INFORMATION (UNAUDITED)

During the calendar year ended December 31, 2022, the Fund declared and paid long-term capital gain distributions in the amount of $624,721.

During the calendar year ended December 31, 2022, $207,248 of dividends paid by the Fund constituted income dividends for federal income tax purposes. The Fund designates $0 or 0% as income qualifying for the corporate dividends-received deduction.

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---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Financial Highlights** |

---

The following financial information represents selected data for each share of capital stock outstanding throughout each period:<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| Net Asset Value, Beginning of Period | $19.72 | $14.05 | $15.69 | $13.02 | $14.85 |
| **** <br>**Income (Loss) from Investment Operations:** |  |  |  |  |  |
| Net Investment Income<sup>a</sup> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.28 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.30 |
| Net Realized and Unrealized Gains (Losses) | &nbsp;&nbsp;&nbsp;&nbsp; (5.55) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.73 | &nbsp;&nbsp;&nbsp;&nbsp; (1.48) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06 | &nbsp;&nbsp;&nbsp;&nbsp; (1.01) |
| **Total from Investment Operations** | &nbsp;&nbsp;&nbsp;&nbsp; **(5.29)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.87 | &nbsp;&nbsp;&nbsp;&nbsp; **(1.31)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.34 | &nbsp;&nbsp;&nbsp;&nbsp; **(0.71)** |
| **** <br>**Dividends and Distributions:** |  |  |  |  |  |
| Dividends from Net Investment Income | &nbsp;&nbsp;&nbsp;&nbsp; (0.28) | &nbsp;&nbsp;&nbsp;&nbsp; (0.20) | &nbsp;&nbsp;&nbsp;&nbsp; (0.27) | &nbsp;&nbsp;&nbsp;&nbsp; (0.15) | &nbsp;&nbsp;&nbsp;&nbsp; (0.41) |
| Distributions from Realized Gains | &nbsp;&nbsp;&nbsp;&nbsp; (0.89) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; – | &nbsp;&nbsp;&nbsp;&nbsp; (0.06) | &nbsp;&nbsp;&nbsp;&nbsp; (0.52) | &nbsp;&nbsp;&nbsp;&nbsp; (0.71) |
| **Total Dividends and Distributions** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.17)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.20)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.33)** | &nbsp;&nbsp;&nbsp;&nbsp; **(0.67)** | &nbsp;&nbsp;&nbsp;&nbsp; **(1.12)** |
| **Net Asset Value, End of Period** | $13.26 | $19.72 | $14.05 | $15.69 | $13.02 |
| <br>Total Return<sup>b</sup> | (26.80)% | 41.98% | (8.08)% | 25.74% | (4.82)% |
| **** <br>**Ratios/Supplemental Data:** |  |  |  |  |  |
| Net Assets, End of Period (in thousands) | $10011 | $16656 | $11626 | $14414 | $12564 |
| Ratio of Expenses to Average Net Assets: |  |  |  |  |  |
| Gross | 1.07% | 0.97% | 1.04% | 0.97% | 1.00% |
| Net<sup>c</sup> | 1.00% | 0.97% | 1.00% | 0.97% | 1.00% |
| Ratio of Net Investment Income to Average Net Assets | 1.58% | 0.83% | 1.28% | 1.83% | 2.07% |
| Portfolio Turnover Rate<sup>d</sup> | 22% | 28% | 24% | 15% | 40% |

---

---

| | |
|:---|:---|
| <sup>a</sup> | Per share calculations were based on average shares outstanding for the period. |
| <sup>b</sup> | Assumes hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. |
| <sup>c</sup> | The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of certain reimbursements. |
| <sup>d</sup> | The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one year or less are excluded from the calculation. |
| ***See Notes to Financial Statements*** | ***See Notes to Financial Statements*** |

---

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---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Report of Independent Registered Public Accounting Firm** |

---

#### The Shareholders and Board of Directors

#### Davis Variable Account Fund, Inc.:

*Opinion on the Financial Statements*

We have audited the accompanying statement of assets and liabilities of Davis Real Estate Portfolio (a separate series of Davis Variable Account Fund, Inc.) (the Fund), including the schedule of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion*

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

#### KPMG LLP

We have served as the auditor of one or more Davis Funds investment companies since 1998.

Minneapolis, Minnesota

February 8, 2023

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---

| | |
|:---|:---|
| **DAVIS REAL ESTATE PORTFOLIO** | **Directors and Officers** |

---

For the purpose of their service as Directors to the Davis Funds, the business address for each of the Directors is: 2949 E. Elvira Road, Suite 101, Tucson, AZ 85756. Subject to exceptions and exemptions which may be granted by the Independent Directors, Directors must retire from the Board of Directors and cease being a Director at the close of business on the last day of the calendar year in which the Director attains age seventy-eight (78).

---

| | | | |
|:---|:---|:---|:---|
| **Name, Date of Birth,**<br> **Position(s) Held with**<br> **Fund, Length of Service** | **Principal Occupation(s) During Past Five Years** | **Number of**<br> **Portfolios**<br> **Overseen** | **Other Directorships** |

---

#### Independent Directors

---

| | | | |
|:---|:---|:---|:---|
| **John S. Gates Jr.**<br> (08/02/53)<br> Director since 2007 | Executive Chairman, TradeLane Properties LLC<br> (industrial real estate company). | 13<br>| Chairman and Chief Executive Officer of PortaeCo<br> LLC (private investment company); Director, Miami<br> Corp. (diversified investment company). |
| **Thomas S. Gayner**<br> (12/16/61)<br> Director since 2004<br> Chairman since 2009 | Chief Executive Officer and Director, Markel Corp.<br> (diversified financial holding company). | 13 | Director, Graham Holdings Company (educational and<br> media company); Director, Cable ONE Inc. (cable<br> service provider). |
| **Samuel H. Iapalucci**<br> (07/19/52)<br> Director since 2006 | Retired; Executive Vice President and Chief Financial<br> Officer, CH2M HILL Companies, Ltd. (engineering)<br> until 2008. | 13 |  |
| **Robert P. Morgenthau**<br> (03/22/57)<br> Director since 2002 | Principal, Spears Abacus Advisors, LLC (investment<br> management firm) since 2011; Chairman, NorthRoad<br> Capital Management, LLC (investment management<br> firm) 2002-2011. | 13 |  |
| **Lara N. Vaughan**<br> (04/20/69)<br> Director since 2021 | Chief Executive Officer and Chief Financial Officer of<br> Parchman, Vaughan & Company, L.L.C. (investment<br> bank). | 13 |  |
| **Marsha C. Williams**<br> (03/28/51)<br> Director since 1999<br>| Retired; Senior Vice President and Chief Financial<br> Officer, Orbitz Worldwide, Inc. (travel-service<br> provider) 2007-2010. | 13 | Chairperson, Modine Manufacturing Company (heat<br> transfer technology); Director, Fifth Third Bancorp<br> (diversified financial services); Director, Crown<br> Holdings, Inc. (manufacturing company). |

---

***Interested Directors***\*

---

| | | | |
|:---|:---|:---|:---|
| **Andrew A. Davis**<br> (06/25/63)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, and Clipper Fund; President, Davis Selected<br> Advisers, L.P., and also serves as an executive officer of<br> certain companies affiliated with the Adviser. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014. |
| **Christopher C. Davis**<br> (07/13/65)<br> Director since 1997<br>| President or Vice President of each Davis Fund, Selected<br> Fund, Clipper Fund, and Davis ETF; Chairman, Davis<br> Selected Advisers, L.P., and also serves as an executive<br> officer of certain companies affiliated with the Adviser,<br> including sole member of the Adviser's general partner,<br> Davis Investments, LLC. | 16 | Director, Selected Funds (consisting of two portfolios)<br> since 1998; Trustee, Clipper Funds Trust (consisting of<br> one portfolio) since 2014; Lead Independent Director,<br> Graham Holdings Company (educational and media<br> company); Director, The Coca-Cola Company<br> (beverage company); Director, Berkshire Hathaway<br> Inc. (financial services). |

---

\* Andrew A. Davis and Christopher C. Davis own partnership units (directly, indirectly, or both) of the Adviser and are considered to be "interested persons" of the Funds as defined in the Investment Company Act of 1940. Andrew A. Davis and Christopher C. Davis are brothers.

#### Officers

**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, Senior Attorney, and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Andrew A. Davis (born 06/25/63, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Christopher C. Davis (born 07/13/65, Davis Funds officer since 1997).** See description in the section on Interested Directors.

**Kenneth C. Eich (born 08/14/53, Davis Funds officer since 1997).** Executive Vice President and Principal Executive Officer of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of two portfolios), and Clipper Funds Trust (consisting of one portfolio); Trustee/Chairman, Executive Vice President, and Principal Executive Officer of Davis Fundamental ETF Trust (consisting of four portfolios); Chief Operating Officer, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser.

**Douglas A. Haines (born 03/04/71, Davis Funds officer since 2004).** Vice President, Treasurer, Chief Financial Officer, Principal Financial Officer, and Principal Accounting 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 Director of Fund Accounting, Davis Selected Advisers, L.P.

**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.

------

**DAVIS REAL ESTATE PORTFOLIO**<br>

---

| |
|:---|
| **Investment Adviser** |
| Davis Selected Advisers, L.P. (Doing business as "Davis Advisors") |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| (800) 279-0279 |
| **Distributor** |
| Davis Distributors, LLC |
| 2949 East Elvira Road, Suite 101 |
| Tucson, Arizona 85756 |
| **Transfer Agent** |
| DST Asset Manager Solutions, Inc. |
| c/o The Davis Funds |
| P.O. Box 219197 |
| Kansas City, Missouri 64121-9197 |
| **Custodian** |
| State Street Bank and Trust Co. |
| One Lincoln Street |
| Boston, Massachusetts 02111 |
| **Legal Counsel** |
| Greenberg Traurig, LLP |
| 1144 15<sup>th</sup> Street, Suite 3300 |
| Denver, Colorado 80202 |
| **Independent Registered Public Accounting Firm** |
| KPMG LLP |
| 4200 Wells Fargo Center |
| 90 South 7<sup>th</sup> Street |
| Minneapolis, MN 55402 |

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***For more information about Davis Real Estate Portfolio, including management fee, charges, and expenses, see the current prospectus, which must precede or accompany this report. The Fund's Statement of Additional Information contains additional information about the Fund's Directors and is available without charge, upon request, by calling 1-800-279-0279 and on the Fund's website at www.davisfunds.com. Quarterly Fact Sheets are available on the Fund's website at www.davisfunds.com.***

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#### ITEM 2. CODE OF ETHICS

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

A copy of the code of ethics is filed as an exhibit to this form N-CSR.

No substantive amendments were approved or waivers granted to this code of ethics during the period covered by this report.

#### ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The registrant's Board of Directors has determined that independent director Marsha Williams qualifies as the "audit committee financial expert", as defined in Item 3 of form N-CSR.

#### ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

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| | |
|:---|:---|
| (a) <br>| Audit Fees. The aggregate Audit Fees billed by KPMP LLP ("KPMG") for professional services rendered for the audits of the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal year ends December 31, 2022 and December 31, 2021 were $63,788 and $59,360, respectively. |
| (b) <br>| Audit-Related Fees. The aggregate Audit-Related Fees billed by KPMG for services rendered for assurance and related services that are not reasonably related to the performance of the audit or review of the fund financial statements, but not reported as Audit Fees for fiscal year ends December 31, 2022 and December 31, 2021 were $0 and $0, respectively. |
| (c) <br>| Tax Fees. The aggregate Tax Fees billed by KPMG for professional services rendered for tax compliance, tax advice and tax planning for the fiscal year ends December 31, 2022 and December 31, 2021 were $29,161 and $25,775, respectively.<br>Fees included in the Tax Fee category comprise all services performed by professional staff in the independent accountant's tax division except those services related to the audit. These services include preparation of tax returns, tax advice related to mergers and a review of the fund income and capital gain distributions. |
| (d) <br>| All Other Fees. The aggregate Other Fees billed by KPMG for all other non-audit services rendered to the fund for the fiscal year ends December 31, 2022 and December 31, 2021 were $0 and $0, respectively. |
| (e)(1) <br>| Audit Committee Pre-Approval Policies and Procedures.<br>The fund Audit Committee must pre-approve all audit and non-audit services provided by the independent accountant relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.<br>The fund Audit Committee has adopted a policy whereby audit and non-audit services performed by the fund independent accountant require pre-approval in advance at regularly scheduled Audit Committee meetings. If such a service is required between regularly scheduled Audit Committee meetings, pre-approval may be authorized by the Audit Committee Chairperson with ratification at the next scheduled audit committee meeting. |
| (e)(2) <br>| No services included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of<br> Rule 2-01 of Regulation S-X.<br>|
| (f) <br>| Not applicable |
| (g) <br>| The Funds' independent accountant did not provide any services to the investment advisor or any affiliate for the fiscal years ended December 31, 2022 and December 31, 2021. The fund has not paid any fees for non-audit not previously disclosed in items 4 (b) – (d). |
| (h) <br>| The registrant's audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. No such services were rendered. |

---

#### ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not Applicable

#### ITEM 6. SCHEDULE OF INVESTMENTS

(a) <br> Not Applicable. The complete Schedule of Investments is included in Item 1 of this Form N-CSR <br>(b) <br> Not Applicable.

#### ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not Applicable

#### ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not Applicable

#### ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES AND AFFILIATED PURCHASERS

Not Applicable

#### ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no changes to the procedure by which shareholders may recommend nominees to the registrant's Board of Directors.

------

#### ITEM 11. CONTROLS AND PROCUDURES

(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended) are effective as of a date within 90 days of the filing date of this report.

(b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls.

#### ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not Applicable.

#### ITEM 13. EXHIBITS

---

| | |
|:---|:---|
| (a)(1) <br>| The registrant's [code of ethics](code_ethics.htm) pursuant to Item 2 of Form N-CSR is filed as an exhibit to this form N-CSR. |
| (a)(2) <br>| Certifications pursuant to [Section 302](cert302.htm) of the Sarbanes-Oxley Act of 2002 are attached. |
| (b) <br>| Certifications pursuant to [Section 906](cert906.htm) of the Sarbanes-Oxley Act of 2002 are attached. |

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DAVIS VARIABLE ACCOUNT FUND, INC.

---

| | |
|:---|:---|
| By | /s/ Kenneth C. Eich |
|  | Kenneth C. Eich |
|  | Principal Executive Officer |
| Date: February 8, 2023 | Date: February 8, 2023 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By | /s/ Kenneth C. Eich |
|  | Kenneth C. Eich |
|  | Principal Executive Officer |
| Date: February 8, 2023 | Date: February 8, 2023 |

---

---

| | |
|:---|:---|
| By | /s/ Douglas A. Haines |
|  | Douglas A. Haines |
|  | Principal Financial Officer and Principal Accounting Officer |
| Date: February 8, 2023 | Date: February 8, 2023 |

---

------

## Ex-99.Cert

------

DAVIS VARIABLE ACCOUNT FUND, INC.

2949 East Elvira Road, Suite 101

Tucson, Arizona 85756

(520) 434-3778

RULE 30A-2(A) CERTIFICATION

I, Kenneth C. Eich, certify that:

1. I have reviewed this report on Form N-CSR of Davis Variable Account Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| /s/ Kenneth C. Eich |
| Kenneth C. Eich |
| Principal Executive Officer |
| Date: February 8, 2023 |

---

------

DAVIS VARIABLE ACCOUNT FUND, INC.

2949 East Elvira Road, Suite 101

Tucson, Arizona 85756

(520) 434-3778

RULE 30A-2(A) CERTIFICATION

I, Douglas A. Haines, certify that:

1. I have reviewed this report on Form N-CSR of Davis Variable Account Fund, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| /s/ Douglas A. Haines |
| Douglas A. Haines |
| Principal Financial Officer and Principal Accounting Officer |
| Date: February 8, 2023 |

---

------

## Exhibit 99.906

------

DAVIS VARIABLE ACCOUNT FUND, INC.

2949 East Elvira Road, Suite 101

Tucson, Arizona 85756

(520) 434-3778

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

---

| | |
|:---|:---|
| KENNETH C. EICH, Principal Executive Officer, and DOUGLAS A. HAINES, Principal Financial Officer and Principal Accounting Officer of Davis Variable Account Fund, Inc. (the "Registrant"), each certify to the best of his or her knowledge that: | KENNETH C. EICH, Principal Executive Officer, and DOUGLAS A. HAINES, Principal Financial Officer and Principal Accounting Officer of Davis Variable Account Fund, Inc. (the "Registrant"), each certify to the best of his or her knowledge that: |
| (1) The Registrant's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | (1) The Registrant's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
| (2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. | (2) The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
| Principal Executive Officer | Principal Financial Officer |
| DAVIS VARIABLE ACCOUNT FUND, INC. | DAVIS VARIABLE ACCOUNT FUND, INC. |
| /s/ Kenneth C. Eich | /s/ Douglas A. Haines |
| Kenneth C. Eich | Douglas A. Haines |
| Principal Executive Officer | Principal Financial Officer and Principal Accounting Officer |
| Date: February 8, 2023 | Date: February 8, 2023 |
| A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to DAVIS VARIABLE ACCOUNT FUND, INC. and will be retained by DAVIS VARIABLE ACCOUNT FUND, INC. and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. | A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to DAVIS VARIABLE ACCOUNT FUND, INC. and will be retained by DAVIS VARIABLE ACCOUNT FUND, INC. and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. |
| This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. | This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission. |

---

------

## Ex-99.Code

------

### Code of Ethics:

### Sarbanes-Oxley

### (Section 406)
Davis Funds

Selected Funds

Clipper Funds Trust

Davis Fundamental ETF Trust

("Funds")

### October 2016

### <br>

------

**I. Covered Officers/Purpose of the Code**

This Sarbanes-Oxley Code of Ethics ("Code") applies to each Fund's Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and Controller, or persons performing similar functions elected by the Funds (the "Covered Officers") for the purposes of promoting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compliance with applicable laws and governmental rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Overview</u>

A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of the officer's family, receives improper personal benefits as a result of a position with the Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Funds because of their status as "affiliated persons" of the Funds. The Funds' and the investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, replace these programs and procedures, and such conflicts fall outside of the parameters of this Code (see Section VI below).

Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from the contractual relationships between the Funds and the investment adviser (or advisory affiliates) of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties, be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Funds and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by each Fund's Board of Directors/Trustees (each a "Board" and collectively the "Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Funds.

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Funds whereby the Covered Officer would benefit personally to the detriment of the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. not cause the Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. not use material non-public knowledge of portfolio transactions made or contemplated for the Funds to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

There are some conflict of interest situations that should always be discussed by Covered Officers with the Funds' Chief Legal Officer, if material. Examples of these conflict of interest situations include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. service as a director/trustee on the board of any public or private company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the receipt of any gift, gratuity, favor award or other item or benefit having a market value in excess of $100 per person, per year, from or on behalf of any person or entity that does, or seeks to do, business with or on behalf of the Funds. Business-related entertainment such as meals, tickets to the theater or a sporting event which are infrequent and of a non-lavish nature are excepted from this prohibition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any ownership interest in, or any consulting or employment relationship with, any of the Funds' service providers, other than its investment adviser, principal underwriter or any of their affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

**III. Disclosure and Compliance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Each Covered Officer should become familiar with the disclosure requirements generally applicable to the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Funds to others, whether within or outside the Funds, including to the Funds' directors/trustees and auditors, and to governmental regulators and self-regulatory organizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

Notwithstanding (1) through (4) above, (a) each Covered Officer is entitled to rely upon procedures adopted by the Funds and their affiliates (including their investment adviser, sub-advisers, principal underwriter, transfer agent and custodian) that are intended to ensure accurate and timely filing of documents with the SEC or communications with the public, and (b) Covered Officers do not have a duty to ensure the Funds' compliance in areas outside of their span of control (for example, the Principal Financial Officer shall not have any duties with respect to compliance issues delegated to the adviser's Legal Department, Compliance Department, Marketing Department, etc.).

**IV. Reporting and Accountability**

Each Covered Officer must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Boards that he or she has received, read, and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. annually thereafter affirm to the Boards that he or she has complied with the requirements of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. report at least annually all affiliations or other relationships related to conflicts of interest that are included and described in the Funds' Directors/Trustees and Officers Questionnaires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. notify the Funds' Chief Legal Officer promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of the Code.

**V. Enforcement of Code**

The Funds' Chief Legal Officer is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. The Chief Legal Officer is authorized to consult, as appropriate, with the Chairperson of the Audit Committee, counsel to the Funds and independent legal counsel to the independent directors/trustees (as defined in Rule 0-1(a)(6) of the Investment Company Act). However, any approvals or waivers sought by any Covered Officer will be considered by the Audit Committee of the affected Fund (the "Committee").

The Funds will follow these procedures in investigating and enforcing this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Chief Legal Officer will take all appropriate action to investigate any reported potential violations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. if, after such investigation, the Chief Legal Officer believes that no material violation has occurred, the Chief Legal Officer is not required to take any further action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. any matter that the Chief Legal Officer believes is a material violation will be reported to the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. if the Committee concurs that a material violation has occurred, it will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; monetary sanctions based on making a Fund whole for damage suffered or to deter further actions; or a recommendation to suspend or dismiss the Covered Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the Committee will be responsible for granting waivers, as appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. all waivers shall be accompanied by a written memorandum, including to whom the waiver was granted, the details of the waiver, the nature and scope of the waiver, reasoning for the waiver and the date of the waiver; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

**VI. Other Policies and Procedures**

This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their investment adviser's and principal underwriter's Code of Ethics under Rule 17j-1 under the Investment Company Act and the adviser's more detailed policies and procedures are separate requirements applying to the Covered Officers and others, and are not part of this Code.

**VII. Amendments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Code was initially adopted by a majority of both Boards (including a majority of the Independent Directors/Trustees voting separately).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any material amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of both Boards, including a majority of Independent Directors/Trustees voting separately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. A copy of each version of the Code and all waivers under the Code shall be maintained for at least six (6) years following the end of the fiscal year in which the amendment or waiver occurred.

**VIII. Confidentiality**

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the appropriate Board and its independent counsel.

**IX. Filing**

Each Fund shall file a copy of this Code as an exhibit to its annual report on Form N-CSR, and shall similarly file and report all material, substantive amendments to this Code.

------

### Exhibit A

#### Persons Covered by this Code of Ethics as of October 4, 2016:

---

| | |
|:---|:---|
| Principal Executive Officer: <br>| Kenneth Eich |
| Principal Financial Officer: <br>| Douglas Haines |
| Principal Accounting Officer: <br>| Douglas Haines |

---

------

<br>