Fund Evaluator:
Davis Government Bond A (RFBAX)
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Best Performing in Government Mortgage-Backed Bond Over the Last Year
| 4.4% | Fidelity Mortgage Securities (FMSFX) |
| 4.4% | Fidelity Advisor Mortgage Securities Z (FIKUX) |
| 4.3% | Fidelity GNMA (FGMNX) |
| 4.3% | Vanguard Mortgage-Backed Secs Idx Adm (VMBSX) |
| 4.2% | Vanguard GNMA Adm (VFIJX) |
Fund Details
Davis Government Bond A Overview
Davis Government Bond A (RFBAX) is an actively managed Taxable Bond Government Mortgage-Backed Bond fund. Davis Funds launched the fund in 1994.
The investment seeks current income. The fund invests exclusively in U.S. Treasury securities, U.S. government agency securities, U.S. government agency mortgage securities (collectively "U.S. government securities"), and repurchase agreements collateralized by U.S. government securities. Under normal circumstances, the fund's portfolio will maintain a weighted average maturity of three years or less.
About Davis Government Bond A (RFBAX)
There are 1 members of the management team with an average tenure of 0.33 years: Erik Jones (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Govt 1-3 Yr TR USD index with a weighting of 100%. Davis Government Bond A has 53 securities in its portfolio. The top 10 holdings constitute 58.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Davis Government Bond A is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Davis Government Bond A has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.7% (92.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Davis Government Bond A has 7.3% of the portfolio in cash.
Assets Under Management
The fund has $15 million in total assets, which is below the $337 million average for the Government Mortgage-Backed Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
RFBAX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Davis Government Bond A expense ratio is high compared to funds in the Government Mortgage-Backed Bond category. Davis Government Bond A has an expense ratio of 1.00%, which is 12% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Davis Government Bond A has a portfolio turnover rate of 10%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 367% for the Government Mortgage-Backed Bond category.
Recently, in the month of July 2026, Davis Government Bond A returned -0.1%, which earned it a grade of A, as the Government Mortgage-Backed Bond category had an average return of -1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Davis Government Bond A has a trailing yield of 3.03%, which is below the 3.87% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Davis Government Bond A Grades
Year to date, the fund has returned 1.2%, 1.6 percentage points better than the category, which translates into a grade of A. The fund has returned 3.1% over the past year (grade of D), 4.0% over the past three years (grade of B) and 1.4% per year over the past five years (grade of A) and 1.1% per year over the past 10 years (grade of C).
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RFBAX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| RFBAX Return (NAV) | -0.1% | 0.4% | 3.1% | 4.0% | 1.4% | 1.1% |
| RFBAX Grade | A | A | D | B | A | C |
| +/- Category | 1.1% | 1.2% | -0.3% | 0.2% | 1.3% | 0.1% |
| Government Mortgage-Backed Bond Avg | -1.2% | -0.9% | 3.4% | 3.8% | 0.1% | 1.0% |
| RFBAX Tax Cost Ratio | na | na | 1.2% | 1.2% | 0.9% | 0.7% |
RFBAX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| RFBAX Return (NAV) | 1.2% | 4.5% | 4.3% | 3.9% | -5.3% | -1.5% | 1.7% | 3.2% | 0.4% | 0.2% | -0.3% |
| RFBAX Grade | A | F | A | D | A | C | F | F | D | F | F |
| +/- Category | 1.6% | -3.2% | 3.1% | -0.6% | 5.2% | -0.1% | -2.7% | -2.0% | -0.0% | -1.1% | -1.6% |
| Government Mortgage-Backed Bond Avg | -0.4% | 7.6% | 1.2% | 4.4% | -10.5% | -1.4% | 4.4% | 5.2% | 0.5% | 1.3% | 1.3% |
| Risk Measures | |
| Standard Deviation: | 1.3% |
| Total Risk Index: | 0.11 - Low |
| Category Risk Index: | 0.23 - Low |
| Category Risk Grade: | A (2% Rank) |
| Beta: | 0.20 |
| R-Squared: | 76% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.0% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $16 Mil |
| Fund Total Assets: | $ 15 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 10% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 0.3 years | |||
| Average Tenure: 0.3 years | |||
| Managers (Year): Jones Erik (2026) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 53 |
| % in Top 10 Holdings: | 58.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 92.7% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 7.3% |
Purchase Information
| Fund Family: | Davis Funds |
| Phone Number: | 800-279-0279 |
| Website: | www.davisfunds.com |
| Status: | Open |
| Inception Date: | December 1, 1994 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 4.75% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.21% |
Expenses and Fees | |
| Expense Ratio (%): | 1.00% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.89% |
| Share Class: | Davis Government Bond A |
| Min. Subsequent Purchase: | $ 25 |
| Min. Subsequent IRA Purchase: | $ 0 |
