0001084060 2012-04-30 2012-04-30 0001084060 dvaf:S000003451Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003451Member dvaf:C000009557Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003451Member dvaf:SnPIndexMember 2012-04-30 2012-04-30 0001084060 dvaf:S000003452Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003452Member dvaf:C000009558Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003452Member dvaf:SnPIndexMember 2012-04-30 2012-04-30 0001084060 dvaf:S000003453Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003453Member dvaf:C000009559Member 2012-04-30 2012-04-30 0001084060 dvaf:S000003453Member dvaf:SnPIndexMember 2012-04-30 2012-04-30 0001084060 dvaf:S000003453Member dvaf:WilsREIndexMember 2012-04-30 2012-04-30 iso4217:USD xbrli:pure 0001084060 DAVIS VARIABLE ACCOUNT FUND INC 485BPOS false 2012-04-30 2012-04-30 2012-04-30 2011-12-31 <b> <big> Fund Summary: Davis Value Portfolio </big> </b> <b> <big> Fund Summary: Davis Financial Portfolio </big> </b> <b> <big> Fund Summary: Davis Real Estate Portfolio </big> </b> <b> <big> Investment Objective </big> </b> Davis Value Portfolio's investment objective is long-term growth of capital. <b> <big> Investment Objective </big> </b> Davis Financial Portfolio's investment objective is long-term growth of capital. <b> <big> Investment Objective </big> </b> Davis Real Estate Portfolio's investment objective is total return through a combination of growth and income. <b> <big> Fees and Expenses of Davis Value Portfolio </big> </b> This table describes the fees and expenses that you may pay if you buy and hold shares of Davis Value Portfolio. OWNERS OF VARIABLE INSURANCE CONTRACTS THAT INVEST IN THE SHARES SHOULD REFER TO THE VARIABLE INSURANCE CONTRACT PROSPECTUS FOR A DESCRIPTION OF FEES AND EXPENSES, AS THE TABLE AND EXAMPLES DO NOT REFLECT DEDUCTIONS AT THE SEPARATE ACCOUNT LEVEL OR CONTRACT LEVEL. INCLUSION OF THESE CHARGES WOULD INCREASE THE FEES AND EXPENSES DESCRIBED BELOW. <b> <big> Fees and Expenses of Davis Financial Portfolio </big> </b> This table describes the fees and expenses that you may pay if you buy and hold shares of Davis Financial Portfolio. OWNERS OF VARIABLE INSURANCE CONTRACTS THAT INVEST IN THE SHARES SHOULD REFER TO THE VARIABLE INSURANCE CONTRACT PROSPECTUS FOR A DESCRIPTION OF FEES AND EXPENSES, AS THE TABLE AND EXAMPLES DO NOT REFLECT DEDUCTIONS AT THE SEPARATE ACCOUNT LEVEL OR CONTRACT LEVEL. INCLUSION OF THESE CHARGES WOULD INCREASE THE FEES AND EXPENSES DESCRIBED BELOW. <b> <big> Fees and Expenses of Davis Real Estate Portfolio </big> </b> This table describes the fees and expenses that you may pay if you buy and hold shares of Davis Real Estate Portfolio. OWNERS OF VARIABLE INSURANCE CONTRACTS THAT INVEST IN THE SHARES SHOULD REFER TO THE VARIABLE INSURANCE CONTRACT PROSPECTUS FOR A DESCRIPTION OF FEES AND EXPENSES, AS THE TABLE AND EXAMPLES DO NOT REFLECT DEDUCTIONS AT THE SEPARATE ACCOUNT LEVEL OR CONTRACT LEVEL. INCLUSION OF THESE CHARGES WOULD INCREASE THE FEES AND EXPENSES DESCRIBED BELOW. <b> <p> <i> Annual Fund Operating Expenses </i> </p> </b> <i> (expenses that you pay each year as a percentage of the value of your investment) </i> ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column dei_LegalEntityAxis compact dvaf_S000003451Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ <b> <p> <i> Annual Fund Operating Expenses </i> </p> </b> <i> (expenses that you pay each year as a percentage of the value of your investment) </i> ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column dei_LegalEntityAxis compact dvaf_S000003452Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ <b> <p> <i> Annual Fund Operating Expenses </i> </p> </b> <i> (expenses that you pay each year as a percentage of the value of your investment) </i> ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column dei_LegalEntityAxis compact dvaf_S000003453Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ 0.0055 0.0055 0.0055 0.0000 0.0000 0.0000 0.0008 0.0014 0.0026 0.0063 0.0069 0.0081 0.0000 0.0000 0.0000 0.0063 0.0069 0.0081 <b> <big> Example </big> </b> <p> This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. </p> <p> This Example assumes that you invest $10,000 in Davis Value Portfolio for the time periods indicated. This Example also assumes that your investment has a 5% return each year and the Fund's operating expenses remain the same. This Example does not reflect fees associated with the ownership of a variable annuity or variable life insurance contract. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </p> ~ http://xbrl.sec.gov/rr/role/ExpenseExample column dei_LegalEntityAxis compact dvaf_S000003451Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ <b> <big> Example </big> </b> <p> This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. </p> <p> This Example assumes that you invest $10,000 in Davis Financial Portfolio for the time periods indicated. This Example also assumes that your investment has a 5% return each year and the Fund's operating expenses remain the same. This Example does not reflect fees associated with the ownership of a variable annuity or variable life insurance contract. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: </p> ~ http://xbrl.sec.gov/rr/role/ExpenseExample column dei_LegalEntityAxis compact dvaf_S000003452Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ <b> <big> Example </big> </b> <p> This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. </p> <p> This Example assumes that you invest $10,000 in Davis Real Estate Portfolio for the time periods indicated. This Example also assumes that your investment has a 5% return each year and the Fund's operating expenses remain the same. This Example does not reflect fees associated with the ownership of a variable annuity or variable life insurance contract. Although your actual costs may be higher or lower, based on these assumptions your costs would be: </p> ~ http://xbrl.sec.gov/rr/role/ExpenseExample column dei_LegalEntityAxis compact dvaf_S000003453Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ 64 202 351 786 70 221 384 859 83 259 450 1002 <b> <big> Portfolio Turnover </big> </b> Davis Value Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 13% of the average value of its portfolio. 0.1300 <b> <big> Portfolio Turnover </big> </b> Davis Financial Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 11% of the average value of its portfolio. 0.1100 <b> <big> Portfolio Turnover </big> </b> Davis Real Estate Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 43% of the average value of its portfolio. 0.4300 <b> <big> Principal Investment Strategies </big> </b> <p> Davis Selected Advisers, L.P., ("Davis Advisors" or the "Adviser") the Fund's investment adviser, uses the Davis Investment Discipline to invest the majority of the Fund's assets in equity securities (typically common stocks, but may also include preferred stocks, American Depository Receipts, Global Depository Receipts, convertible bonds, and other forms of equity securities) issued by large companies with market capitalizations of at least $10 billion. Historically, the Fund has invested a significant portion of its assets in financial services companies. The Fund may also invest in foreign companies. </p> <p> <i> <b> Davis Investment Discipline. </b> </i> Davis Advisors manages equity funds using the Davis Investment Discipline. Davis Advisors conducts extensive research to try to identify businesses that possess characteristics that Davis Advisors believes foster the creation of long-term value, such as proven management, a durable franchise and business model, and sustainable competitive advantages. Davis Advisors aims to invest in such businesses when they are trading at discounts to their intrinsic worth. Davis Advisors emphasizes individual stock selection and believes that the ability to evaluate management is critical. Davis Advisors routinely visits managers at their places of business in order to gain insight into the relative value of different businesses. Such research, however rigorous, involves predictions and forecasts that are inherently uncertain. After determining which companies Davis Advisors believes the Fund should own, Davis Advisors then turns its analysis to determine the intrinsic value of those companies' equity securities. Davis Advisors seeks equity securities which can be purchased at attractive valuations relative to their intrinsic value. Davis Advisors' goal is to invest in companies for the long term. Davis Advisors considers selling a company's equity securities if the securities' market price exceeds Davis Advisors' estimates of intrinsic value, or if the ratio of the risks and rewards of continuing to own the company's equity securities is no longer attractive. </p> <b> <big> Principal Investment Strategies </big> </b> <p> Davis Selected Advisers, L.P., ("Davis Advisors" or the "Adviser") the Fund's investment adviser, uses the Davis Investment Discipline to invest at least 80% of the Fund's net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the financial services sector. The Fund invests primarily in equity securities (typically common stocks, but may also include preferred stocks, American Depository Receipts, Global Depository Receipts, convertible bonds, and other forms of equity securities). Although the Fund invests primarily in U.S. companies, it may also invest in foreign companies. </p> <p> A company is principally engaged in financial services if it owns financial services-related assets that constitute at least 50% of the value of all of its assets, or if it derives at least 50% of its revenues from providing financial services. Companies in the financial services sector include commercial banks, industrial banks, savings institutions, finance companies, diversified financial services companies, investment banking firms, securities brokerage houses, investment advisory companies, leasing companies, insurance companies and companies providing similar services. </p> <p> <i> <b> Davis Investment Discipline. </b> </i> Davis Advisors manages equity funds using the Davis Investment Discipline. Davis Advisors conducts extensive research to try to identify businesses that possess characteristics that Davis Advisors believes foster the creation of long-term value, such as proven management, a durable franchise and business model, and sustainable competitive advantages. Davis Advisors aims to invest in such businesses when they are trading at discounts to their intrinsic worth. Davis Advisors emphasizes individual stock selection and believes that the ability to evaluate management is critical. Davis Advisors routinely visits managers at their places of business in order to gain insight into the relative value of different businesses. Such research, however rigorous, involves predictions and forecasts that are inherently uncertain. After determining which companies Davis Advisors believes the Fund should own, Davis Advisors then turns its analysis to determine the intrinsic value of those companies' equity securities. Davis Advisors seeks equity securities which can be purchased at attractive valuations relative to their intrinsic value. Davis Advisors' goal is to invest in companies for the long term. Davis Advisors considers selling a company's equity securities if the securities' market price exceeds Davis Advisors' estimates of intrinsic value, or if the ratio of the risks and rewards of continuing to own the company's equity securities is no longer attractive. </p> <b> <big> Principal Investment Strategies </big> </b> <p> Davis Selected Advisers, L.P., ("Davis Advisors" or the "Adviser") the Fund's investment adviser, uses the Davis Investment Discipline to invest at least 80% of the Fund's net assets, plus any borrowing for investment purposes, in securities issued by companies principally engaged in the real estate industry. The Fund invests primarily in equity securities (typically common stocks, but may also include preferred stocks, American Depository Receipts, Global Depository Receipts, convertible bonds, and other forms of equity securities). Although the Fund invests primarily in U.S. companies, it may also invest in foreign companies. </p> <p> A company is principally engaged in the real estate industry if it owns real estate or real estate-related assets that constitute at least 50% of the value of all of its assets or if it derives at least 50% of its revenues or net profits from owning, financing, developing, managing or selling real estate, or from offering products or services that are related to real estate. Issuers of real estate securities include real estate investment trusts (REITs), brokers, developers, lenders, and companies with substantial real estate holdings such as paper, lumber, hotel, and entertainment companies. Most of Davis Real Estate Portfolio's real estate securities are, and will likely continue to be, interests in REITs. REITs pool investors' funds to make real estate-related investments, such as buying interests in income-producing property or making loans to real estate developers. </p> <p> <i> <b> Davis Investment Discipline. </b> </i> Davis Advisors manages equity funds using the Davis Investment Discipline. Davis Advisors conducts extensive research to try to identify businesses that possess characteristics that Davis Advisors believes foster the creation of long-term value, such as proven management, a durable franchise and business model, and sustainable competitive advantages. Davis Advisors aims to invest in such businesses when they are trading at discounts to their intrinsic worth. Davis Advisors emphasizes individual stock selection and believes that the ability to evaluate management is critical. Davis Advisors routinely visits managers at their places of business in order to gain insight into the relative value of different businesses. Such research, however rigorous, involves predictions and forecasts that are inherently uncertain. After determining which companies Davis Advisors believes the Fund should own, Davis Advisors then turns its analysis to determine the intrinsic value of those companies' equity securities. Davis Advisors seeks equity securities which can be purchased at attractive valuations relative to their intrinsic value. Davis Advisors' goal is to invest in companies for the long term. Davis Advisors considers selling a company's equity securities if the securities' market price exceeds Davis Advisors' estimates of intrinsic value, or if the ratio of the risks and rewards of continuing to own the company's equity securities is no longer attractive. </p> <b> <big> Principal Risks of Investing in Davis Value Portfolio </big> </b> <p> <i> You may lose money by investing in Davis Value Portfolio. Investors in the Fund should have a long-term perspective and be able to tolerate potentially sharp declines in value. The principal risks of investing in the Fund are: </i> </p> <ul> <li> <b> Stock Market risk. </b> Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices, including the possibility of sharp declines. </li> <li> <b> Manager risk. </b> Poor security selection or focus on securities in a particular sector, category, or group of companies may cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective. </li> <li> <b> Common Stock risk. </b> Common stock represents an ownership position in a company. An adverse event may have a negative impact on a company and could result in a decline in the price of its common stock. Common stock is generally subordinate to an issuer's other securities, including preferred, convertible, and debt securities. </li> <li> <b> Financial Services risk. </b> Investing a significant portion of assets in the financial services sector may cause the Fund to be more sensitive to problems affecting financial companies. </li> <li> <b> Foreign Country risk. </b> Foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. </li> <li> <b> Emerging Market risk. </b> The Fund invests in emerging or developing markets. Securities of issuers in emerging and developing markets may offer special investment opportunities, but present risks not found in more mature markets. </li> <li> <b> Foreign Currency risk. </b> Securities issued by foreign companies are frequently denominated in foreign currencies. The change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. </li> <li> <b> Trading Markets and Depositary Receipts risk. </b> Foreign securities may trade in the form of depositary receipts, including American, European and Global Depositary Receipts. Although depositary receipts have risks similar to the securities that they represent, they may also involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying securities listed on an exchange. </li> <li> <b> Headline risk. </b> The Fund may invest in a company when the company becomes the center of controversy after receiving adverse media attention concerning its operations, long-term prospects, or management or for other reasons. While Davis Advisors researches companies subject to such contingencies, it cannot be correct every time, and the company's stock may never recover or may become worthless. </li> <li> <b> Fees and Expenses risk. </b> The Fund may not earn enough through income and capital appreciation to offset the operating expenses of the Fund. All mutual funds incur operating fees and expenses. Fees and expenses reduce the return which a shareholder may earn by investing in a fund, even when a fund has favorable performance. A low return environment, or a bear market, increases the risk that a shareholder may lose money. </li> </ul> Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. <b> <big> Principal Risks of Investing in Davis Financial Portfolio </big> </b> <p> <i> You may lose money by investing in Davis Financial Portfolio. Investors in the Fund should have a long-term perspective and be able to tolerate potentially sharp declines in value. The principal risks of investing in the Fund are: </i> </p> <ul> <li> <b> Stock Market risk. </b> Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices, including the possibility of sharp declines. </li> <li> <b> Manager risk. </b> Poor security selection or focus on securities in a particular sector, category, or group of companies may cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective. </li> <li> <b> Common Stock risk. </b> Common stock represents an ownership position in a company. An adverse event may have a negative impact on a company and could result in a decline in the price of its common stock. Common stock is generally subordinate to an issuer's other securities, including preferred, convertible, and debt securities. </li> <li> <b> Concentrated Portfolio risk. </b> The Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector. </li> <li> <b> Financial Services risk. </b> Investing in the financial services sector may cause the Fund to be more sensitive to problems affecting financial companies. </li> <li> <b> Focused Portfolio risk. </b> Funds that invest in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the value of the Fund's total portfolio. </li> <li> <b> Foreign Country risk. </b> Foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. </li> <li> <b> Emerging Market risk. </b> The Fund invests in emerging or developing markets. Securities of issuers in emerging and developing markets may offer special investment opportunities, but present risks not found in more mature markets. </li> <li> <b> Foreign Currency risk. </b> Securities issued by foreign companies are frequently denominated in foreign currencies. The change in value of a foreign currency against the U.S. dollar will result in a change in the U.S. dollar value of securities denominated in that foreign currency. </li> <li> <b> Trading Markets and Depositary Receipts risk. </b> Foreign securities may trade in the form of depositary receipts, including American, European and Global Depositary Receipts. Although depositary receipts have risks similar to the securities that they represent, they may also involve higher expenses and may trade at a discount (or premium) to the underlying security. In addition, depositary receipts may not pass through voting and other shareholder rights, and may be less liquid than the underlying securities listed on an exchange. </li> <li> <b> Under $10 Billion Market Capitalization risk. </b> Small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies. </li> <li> <b> Interest Rate Sensitivity risk. </b> Interest rates may have a powerful influence on the earnings of financial institutions. </li> <li> <b> Credit risk. </b> Financial institutions are often highly leveraged and may not be able to make timely payments of interest and principal. </li> <li> <b> Headline risk. </b> The Fund may invest in a company when the company becomes the center of controversy after receiving adverse media attention concerning its operations, long-term prospects, or management or for other reasons. While Davis Advisors researches companies subject to such contingencies, it cannot be correct every time, and the company's stock may never recover or may become worthless. </li> <li> <b> Fees and Expenses risk. </b> The Fund may not earn enough through income and capital appreciation to offset the operating expenses of the Fund. All mutual funds incur operating fees and expenses. Fees and expenses reduce the return which a shareholder may earn by investing in a fund, even when a fund has favorable performance. A low return environment, or a bear market, increases the risk that a shareholder may lose money. </li> </ul> Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. <b> <big> Principal Risks of Investing in Davis Real Estate Portfolio </big> </b> <p> <i> You may lose money by investing in Davis Real Estate Portfolio. Investors in the Fund should have a long-term perspective and be able to tolerate potentially sharp declines in value. The principal risks of investing in the Fund are: </i> </p> <ul> <li> <b> Stock Market risk. </b> Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices, including the possibility of sharp declines. </li> <li> <b> Manager risk. </b> Poor security selection or focus on securities in a particular sector, category, or group of companies may cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective. </li> <li> <b> Common Stock risk. </b> Common stock represents an ownership position in a company. An adverse event may have a negative impact on a company and could result in a decline in the price of its common stock. Common stock is generally subordinate to an issuer's other securities, including preferred, convertible, and debt securities. </li> <li> <b> Concentrated Portfolio risk. </b> The Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector. </li> <li> <b> Real Estate risk. </b> Real estate securities are susceptible to the many risks associated with the direct ownership of real estate, including declines in property values, increases in property taxes, operating expenses, interest rates or competition, overbuilding, changes in zoning laws, or losses from casualty or condemnation. </li> <li> <b> Focused Portfolio risk. </b> Funds that invest in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the value of the Fund's total portfolio. </li> <li> <b> Foreign Country risk. </b> Foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. </li> <li> <b> Under $10 Billion Market Capitalization risk. </b> Small- and mid-size companies typically have more limited product lines, markets and financial resources than larger companies, and their securities may trade less frequently and in more limited volume than those of larger, more mature companies. </li> <li> <b> Variable Current Income risk. </b> The income which the Fund pays to investors is not stable. </li> <li> <b> Headline risk. </b> The Fund may invest in a company when the company becomes the center of controversy after receiving adverse media attention concerning its operations, long-term prospects, or management or for other reasons. While Davis Advisors researches companies subject to such contingencies, it cannot be correct every time, and the company's stock may never recover or may become worthless. </li> <li> <b> Fees and Expenses risk. </b> The Fund may not earn enough through income and capital appreciation to offset the operating expenses of the Fund. All mutual funds incur operating fees and expenses. Fees and expenses reduce the return which a shareholder may earn by investing in a fund, even when a fund has favorable performance. A low return environment, or a bear market, increases the risk that a shareholder may lose money. </li> </ul> Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. The Fund may not concentrate its investments in the securities of issuers primarily engaged in any particular industry. Your investment is not guaranteed and you may lose money. Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. The Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector. Your investment is not guaranteed and you may lose money. Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. The Fund invests principally in a single market sector, and any fund that has a concentrated portfolio is particularly vulnerable to the risks of its target sector. Your investment is not guaranteed and you may lose money. Your investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, entity or person. The Fund is non-diversified and, therefore, is allowed to focus its investments in fewer companies than a fund that is required to diversify its portfolio. <b> <big> Performance Results </big> </b> The bar chart below provides some indication of the risks of investing in Davis Value Portfolio by showing how the Fund's investment results have varied from year to year. The bar chart depicts the change in performance from year to year during the periods indicated, but does not include charges or expenses attributable to any insurance product, which would lower the performance illustrated. The following table shows how the Fund's average annual total returns for the periods indicated compare with those of the S&amp;P 500(R) Index, a broad-based securities market index. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. Updated information on the Fund's results can be obtained by visiting <u>www.davisfunds.com</u> or by calling 1-800-279-0279. <b>Annual Total Returns for the years ended December 31</b> ~ http://xbrl.sec.gov/rr/role/BarChartData column dei_LegalEntityAxis compact dvaf_S000003451Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ The bar chart below provides some indication of the risks of investing in Davis Value Portfolio by showing how the Fund's investment results have varied from year to year. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. <b> <big> Performance Results </big> </b> The bar chart below provides some indication of the risks of investing in Davis Financial Portfolio by showing how the Fund's investment results have varied from year to year. The bar chart depicts the change in performance from year to year during the periods indicated, but does not include charges or expenses attributable to any insurance product, which would lower the performance illustrated. The following table shows how the Fund's average annual total returns for the periods indicated compare with those of the S&amp;P 500(R) Index, a broad-based securities market index. In 2009, the Fund received a favorable class action settlement from a company which it no longer owns. This settlement had a material impact on the investment performance of the Fund in 2009. This was a one-time event that is unlikely to be repeated. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. Updated information on the Fund's results can be obtained by visiting <u>www.davisfunds.com</u> or by calling 1-800-279-0279. <b>Annual Total Returns for the years ended December 31</b> ~ http://xbrl.sec.gov/rr/role/BarChartData column dei_LegalEntityAxis compact dvaf_S000003452Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ The bar chart below provides some indication of the risks of investing in Davis Financial Portfolio by showing how the Fund's investment results have varied from year to year. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. <b> <big> Performance Results </big> </b> The bar chart below provides some indication of the risks of investing in Davis Real Estate Portfolio by showing how the Fund's investment results have varied from year to year. The bar chart depicts the change in performance from year to year during the periods indicated, but does not include charges or expenses attributable to any insurance product, which would lower the performance illustrated. The following table shows how the Fund's average annual total returns for the periods indicated compare with those of the S&amp;P 500(R) Index, a broad based securities market index, and of the Wilshire U.S. Real Estate Securities Index. The Wilshire U.S. Real Estate Securities Index is a measure of the performance of publicly traded real estate securities. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. Updated information on the Fund's results can be obtained by visiting <u>www.davisfunds.com</u> or by calling 1-800-279-0279. <b>Annual Total Returns for the years ended December 31</b> ~ http://xbrl.sec.gov/rr/role/BarChartData column dei_LegalEntityAxis compact dvaf_S000003453Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ The bar chart below provides some indication of the risks of investing in Davis Financial Portfolio by showing how the Fund's investment results have varied from year to year. The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. Highest quarter 2009-06-30 0.1994 Lowest quarter 2008-12-31 -0.2525 The fund's total return for the three months ended March 31, 2012: 2012-03-31 0.1117 <p> Highest/Lowest quarterly results during this time period were: </p> <p> <b> Highest </b> 19.94% for the quarter ended June 30, 2009 </p> <p> <b> Lowest </b> (25.25)% for the quarter ended December 31, 2008 </p> <p> Total return for the three months ended March 31, 2012 (not annualized) was 11.17%. </p> Highest quarter 2009-06-30 0.2567 Lowest quarter 2008-12-31 -0.2813 The fund's total return for the three months ended March 31, 2012: 2012-03-31 0.1433 <p> Highest/Lowest quarterly results during this time period were: </p> <p> <b> Highest </b> 25.67% for the quarter ended June 30, 2009 </p> <p> <b> Lowest </b> (28.13)% for the quarter ended December 31, 2008 </p> <p> Total return for the three months ended March 31, 2012 (not annualized) was 14.33%. </p> Highest quarter 2009-06-30 0.3244 Lowest quarter 2008-12-31 -0.4239 0.0185 The fund's total return for the three months ended March 31, 2012: 2012-03-31 0.1092 <p> Highest/Lowest quarterly results during this time period were: </p> <p> <b> Highest </b> 32.44% for the quarter ended June 30, 2009 </p> <p> <b> Lowest </b> (42.39)% for the quarter ended December 31, 2008 </p> <p> Total return for the three months ended March 31, 2012 (not annualized) was 10.92%. </p> <p> <b> <i> Davis Real Estate Portfolio Yield </i> </b> </p> <p> <i> for the period ended December 31, 2011 </i> </p> <p> 30-Day SEC Yield 1.85% </p> <p> You can obtain Davis Real Estate Portfolio's most recent 30-day SEC Yield by calling Investor Services toll-free at 1-800-279-0279, Monday through Friday, from 9 a.m. to 6 p.m. Eastern time. </p> <b> <i> Davis Value Portfolio Average Annual Total Returns </i> </b> <i> for the periods ended December 31, 2011 </i> ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column dei_LegalEntityAxis compact dvaf_S000003451Member column rr_ProspectusShareClassAxis compact * column rr_PerformanceMeasureAxis compact * row primary compact * ~ 1-800-279-0279 www.davisfunds.com <b> <i> Davis Financial Portfolio Average Annual Total Returns </i> </b> <i> for the periods ended December 31, 2011 </i> ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column dei_LegalEntityAxis compact dvaf_S000003452Member column rr_ProspectusShareClassAxis compact * column rr_PerformanceMeasureAxis compact * row primary compact * ~ 1-800-279-0279 www.davisfunds.com <b> <i> Davis Real Estate Portfolio Average Annual Total Returns </i> </b> <i> for the periods ended December 31, 2011 </i> ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column dei_LegalEntityAxis compact dvaf_S000003453Member column rr_ProspectusShareClassAxis compact * column rr_PerformanceMeasureAxis compact * row primary compact * ~ 1-800-279-0279 www.davisfunds.com -0.1626 0.2976 0.1233 0.0944 0.1500 0.0464 -0.4032 0.3116 0.1276 -0.0418 -0.1684 0.3215 0.1032 0.0838 0.1850 -0.0605 -0.4636 0.4118 0.1110 -0.0796 0.0589 0.3679 0.3335 0.1314 0.3437 -0.1548 -0.4691 0.3173 0.1970 0.0889 -0.0418 -0.0241 0.0312 -0.0796 -0.0616 0.0126 0.0889 -0.0508 0.0851 0.0211 -0.0025 0.0292 0.0211 -0.0025 0.0292 0.0211 -0.0025 0.0292 0.0856 -0.0215 0.1015 ~ http://xbrl.sec.gov/rr/role/RiskReturnDetail column period compact * row primary compact * ~ 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, 2013; after that date, there is no assurance that the Adviser will continue to cap expenses. The expense cap cannot be terminated prior to May 1, 2013, without the consent of the board of directors.