Davis Variable Account Fund NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANANGEMENT 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)

Thomas D. Tays

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, 2009

Date of reporting period: June 30, 2009

____________________

ITEM 1. REPORT TO STOCKHOLDERS

DAVIS VARIABLE ACCOUNT FUND, INC.

Table of Contents

Management's Discussion and Analysis:
Davis Value Portfolio	2
Davis Financial Portfolio	3
Davis Real Estate Portfolio	4

Fund Overview:
Davis Value Portfolio	7
Davis Financial Portfolio	8
Davis Real Estate Portfolio	9

Expense Example	10

Schedule of Investments:
Davis Value Portfolio	12
Davis Financial Portfolio	17
Davis Real Estate Portfolio	20

Statements of Assets and Liabilities	23

Statements of Operations	24

Statements of Changes in Net Assets	25

Notes to Financial Statements	27

Financial Highlights:
Davis Value Portfolio	33
Davis Financial Portfolio	34
Davis Real Estate Portfolio	35

Fund Information	36

Director Approval of Advisory Agreements	37

Directors and Officers	40

DAVIS VARIABLE ACCOUNT FUND, INC. Management's Discussion and Analysis

Davis Value Portfolio

Davis Value Portfolio delivered a return on net asset value of 5.57% for the six-month period ended June 30, 2009¹. Over the same time period, the Standard & Poor's 500^® Index² ("Index") returned 3.16%. The sectors³ within the Index delivering the strongest performance for the period were information technology, materials, and consumer discretionary. The sectors delivering the weakest performance for the period were industrials, telecommunication services, and financials.

Factors Impacting the Portfolio's Performance

The Portfolio's investment in industrial companies was an important contributor⁴ to performance. While the Index's industrial companies lost 6%, the Portfolio's industrial companies gained 17%. China Merchants Holdings⁵ was among the most important contributors to performance.

Information technology companies were the most important contributor to the absolute performance of both the Portfolio and the Index (up 23% versus up 25% for the Index) over the six-month period. A lower relative average weighting in this strongly performing sector (9% versus 17% for the Index) detracted from performance. Texas Instruments, Microsoft, and Google were among the most important contributors to performance.

The Portfolio had more invested in financial companies than in any other sector (26% versus 12% for the Index). The Portfolio's financial companies out-performed the corresponding sector within the Index (up 2% versus down 3% for the Index). American Express and Julius Baer were among the most important contributors to performance while Wells Fargo, Berkshire Hathaway, and Bank of America were among the most important detractors from performance. The Portfolio no longer owns Bank of America.

Health care companies also made important contributions to performance. The Portfolio's health care companies out-performed the corresponding sector within the Index (up 12% versus roughly flat for the Index). Schering-Plough was among the most important contributors to performance.

Consumer staple companies detracted from performance. The Portfolio's consumer staple companies under-performed the corresponding sector within the Index (down 4% versus down 2% for the Index). Costco Wholesale and Philip Morris were among the most important detractors from performance.

Energy companies included two of the most important contributors to performance, Canadian Natural Resources and Occidental Petroleum, and two of the most important detractors from performance, ConocoPhillips and Devon Energy. The Portfolio had more invested in energy companies than the Index (17% versus 13% for the Index) and the Portfolio's energy companies out-performed the corresponding sector within the Index (up 3% versus down 2% for the Index).

The Portfolio ended the six-month period with approximately 14% of its net assets in foreign companies. As a whole these companies out-performed the domestic companies held by the Portfolio.

DAVIS VARIABLE ACCOUNT FUND, INC. Management's Discussion and Analysis - (Continued)

Davis Financial Portfolio

Davis Financial Portfolio delivered a return on net asset value of 12.78% for the six-month period ended June 30, 2009¹. Over the same time period, the Standard & Poor's 500^® Index² ("Index") returned 3.16%. Financial companies as a whole turned in a negative performance as the sector³ lost value for the Index. The Index's banking and insurance industry groups turned in negative performances, while the diversified financial industry group turned in a positive performance.

Factors Impacting the Portfolio's Performance

The specific financial companies which the Portfolio owned out-performed the majority of financial companies in the Index (up 14% versus down 3% for the Index). The Portfolio's non-financial holdings overall contributed⁴ positively to performance.

The Portfolio's diversified financial companies out-performed the corresponding industry group within the Index (up 20% versus up 11% for the Index) and were the largest contributors to performance. Goldman Sachs⁵, American Express, Moody's, and Julius Baer were among the most important contributors to performance, while JPMorgan Chase and Bank of America were among the most important detractors from performance.

The Portfolio's banking companies out-performed the corresponding industry group within the Index (up 32% versus down 21% for the Index). Wells Fargo and State Bank of India were among the most important contributors to performance.

The Portfolio's insurance companies out-performed the corresponding industry group within the Index (basically flat versus down 11% for the Index). Transatlantic Holdings and China Life Insurance were among the most important contributors to performance. FPIC Insurance Group, American International Group, Markel, Loews, ACE Ltd., and Everest Re Group were among the most important detractors from performance. The Portfolio no longer owns American International Group.

The Portfolio ended the six-month period with approximately 22% of its assets invested in foreign companies. As a whole these companies out-performed the domestic companies held by the Portfolio.

Davis Financial Portfolio received a favorable class action settlement from a company that 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.

DAVIS VARIABLE ACCOUNT FUND, INC. Management's Discussion and Analysis - (Continued)

Davis Real Estate Portfolio

Davis Real Estate Portfolio delivered a negative return on net asset value of 5.92% for the six-month period ended June 30, 2009¹. Over the same time period, the Wilshire U.S. Real Estate Securities Index² ("Index") declined 12.75%. Six of the seven sub-industries³ within the Index delivered negative returns, with industrial REITs, diversified REITs, and residential REITs turning in the weakest performance. Only the real estate operating companies sub-industry delivered positive returns.

Factors Impacting the Portfolio's Performance

Retail REITs were the most important contributors⁴ to performance. The Portfolio's retail REITs out-performed the corresponding sub-industry within the Index (up 4% versus down 13% for the Index). Simon Property Group⁵ and General Growth Properties were among the most important contributors to performance. The Portfolio no longer owns Simon Property Group or General Growth Properties.

Fixed income securities issued by Prologis, SL Green, and Digital Realty made important contributions to performance. While real estate equities struggled and turned in negative performances on average, these three real estate fixed income securities delivered an average return of approximately 66%.

The Portfolio's office REITs out-performed the corresponding sub-industry within the Index (down 10% versus down 12% for the Index), but were still the largest detractors from performance. SL Green and Digital Realty were among the most important contributors to performance. Alexandria Real Estate, Douglas Emmett, Derwent London, and Boston Properties were among the most important detractors from performance. The Portfolio no longer owns Derwent London.

Industrial REITs were important detractors from performance. The Portfolio's industrial REITs under-performed the corresponding sub-industry within the Index (down 32% versus down 23% for the Index). Brixton was among the most important detractors from performance. The Portfolio no longer owns Brixton.

Diversified REITs were also important detractors from performance. The Portfolio's diversified REITs under-performed the corresponding sub-industry within the Index (down 34% versus down 16% for the Index). The Portfolio had a lower relative average weighting (5% versus 9% for the Index) in this weakly performing sub-industry. Cousins Properties was among the most important detractors from performance.

Forest City Enterprises, Host Hotels & Resorts, and St. Joe were among the most important individual companies contributing to performance. Cogdell Spencer and Essex Property Trust were among the most important individual companies detracting from performance.

DAVIS VARIABLE ACCOUNT FUND, INC. Management's Discussion and Analysis - (Continued)

This Semi-Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Davis Variable Account Funds, Inc. prospectus, which contains more information about investment strategies, risks, charges, and expenses. Please read the prospectus carefully before investing or sending money.

Davis Value Portfolio's investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Value Portfolio are: (1) market risk, (2) company risk, (3) financial services risk, (4) foreign country risk, (5) headline risk, and (6) selection risk. See the prospectus for a full description of each risk.

Davis Financial Portfolio's investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Financial Portfolio are: (1) market risk, (2) company risk, (3) concentrated financial services portfolio risk, (4) foreign country risk, (5) headline risk, and (6) selection 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 portfolio that does not concentrate its investments in a particular sector. The Portfolio's investment performance, both good and bad, is expected to reflect the economic performance of the financial sector more than a portfolio that does not concentrate its portfolio.

Davis Real Estate Portfolio's investment objective is total return through a combination of growth and income. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Real Estate Portfolio are: (1) market risk, (2) company risk, (3) concentrated real estate portfolio risk, (4) focused portfolio risk, (5) small- and medium-capitalization risk, (6) foreign country risk, (7) headline risk, and (8) selection 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 portfolio that does not concentrate its investments in a particular sector. The Portfolio's investment performance, both good and bad, is expected to reflect the economic performance of the real estate sector much more than a portfolio that does not concentrate its portfolio.

Davis Real Estate 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 Portfolio's portfolio in a few companies, the Portfolio's investment performance, both good and bad, is expected to reflect the economic performance of its more focused portfolio.

DAVIS VARIABLE ACCOUNT FUND, INC. Management's Discussion and Analysis - (Continued)

¹ Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary, so that when redeemed, an investor's shares may be worth more or less than when purchased. The following tables list the average annual total returns for the periods ended June 30, 2009 and the gross annualized operating expense ratios for the six months ended June 30, 2009:

				GROSS
			INCEPTION	EXPENSE
PORTFOLIO NAME	1-YEAR	5-YEAR	(July 1, 1999)	RATIO
Davis Value Portfolio	(28.95)%	(2.25)%	0.18%	0.85%
Davis Financial Portfolio*	(23.81)%	(4.82)%	(0.36)%	0.91%
Davis Real Estate Portfolio	(45.69)%	(4.29)%	3.70%	1.16%

			SINCE
			PORTFOLIOS'
			INCEPTION
BENCHMARK INDEX	1-YEAR	5-YEAR	(July 1, 1999)
Standard & Poor's 500^® Index	(26.21)%	(2.24)%	(2.28)%
Wilshire U.S. Real Estate Securities Index	(45.65)%	(3.41)%	5.19%

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

Portfolio performance changes over time and current performance may be higher or lower than stated. The operating expense ratios may vary in future years. For more current information please call Davis Funds Investor Services at 1-800-279-0279.

*Davis Financial Portfolio received a favorable class action settlement from a company that 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.

²	The definitions of indices quoted in this report appear below. Investments cannot be made directly in the indices.

I. The Standard & Poor's 500^® 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.

II. 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. The Index was formerly named the "Dow Jones Wilshire Real Estate Securities Index."

³ The companies included in the Standard & Poor's 500^® Index are divided into ten sectors. One or more industry groups make up a sector. The companies included in the Wilshire U.S. Real Estate Securities Index are divided into seven sub-industries.

⁴ A company's or sector's contribution to or detraction from the Portfolio's performance is a product both of its appreciation or depreciation and its weighting within the portfolio. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%.

⁵ This Management Discussion and Analysis 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 or sell any particular security. The Schedule of Investments lists each Portfolio's holdings of each company discussed.

Shares of the Davis Variable Account Funds 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.

DAVIS VARIABLE ACCOUNT FUND, INC. Fund Overview

DAVIS VALUE PORTFOLIO

At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund's Net Assets)		(% of Long Term Portfolio)

			Fund	S&P 500^®
Common Stock (U.S.)	82.69%	Energy	16.57%	12.42%
Common Stock (Foreign)	13.36%	Diversified Financials	12.29%	7.41%
Convertible Bonds (U.S.)	0.53%	Insurance	11.92%	2.35%
Convertible Bonds (Foreign)	0.16%	Information Technology	9.20%	18.40%
Corporate Bonds	0.55%	Health Care	9.15%	13.97%
Stock Rights (Foreign)	0.10%	Food & Staples Retailing	6.62%	3.05%
Short Term Investments	2.39%	Materials	5.82%	3.23%
Other Assets & Liabilities	0.22%	Media	5.01%	2.58%
	100.00%	Banks	4.33%	2.83%
		Food, Beverage & Tobacco	4.04%	6.08%
		Commercial & Professional Services	3.41%	0.71%
		Transportation	2.59%	2.03%
		Other	2.39%	11.32%
		Retailing	2.37%	3.21%
		Household & Personal Products	1.48%	2.84%
		Capital Goods	1.43%	7.09%
		Automobiles & Components	1.38%	0.48%
			100.00%	100.00%

Top 10 Holdings

(% of Fund's Net Assets)


Berkshire Hathaway Inc., Class A	Property & Casualty Insurance	4.83%
Occidental Petroleum Corp.	Energy	4.73%
Wells Fargo & Co.	Commercial Banks	4.22%
Costco Wholesale Corp.	Food & Staples Retailing	4.00%
Devon Energy Corp.	Energy	2.87%
EOG Resources, Inc.	Energy	2.86%
American Express Co.	Consumer Finance	2.68%
JPMorgan Chase & Co.	Diversified Financial Services	2.63%
CVS Caremark Corp.	Food & Staples Retailing	2.45%
Loews Corp.	Multi-line Insurance	2.28%

DAVIS VARIABLE ACCOUNT FUND, INC. Fund Overview

DAVIS FINANCIAL PORTFOLIO

At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund's Net Assets)		(% of Stock Holdings)

			Fund	S&P 500^®
Common Stock (U.S.)	71.24%	Diversified Financials	42.11%	7.41%
Common Stock (Foreign)	22.21%	Insurance	33.83%	2.35%
Short Term Investments	6.80%	Banks	12.24%	2.83%
Other Assets & Liabilities	(0.25)%	Energy	4.69%	12.42%
	100.00%	Commercial & Professional Services	3.47%	0.71%
		Materials	2.45%	3.23%
		Consumer Services	1.21%	1.76%
		Information Technology	-	18.40%
		Health Care	-	13.97%
		Other	-	36.92%
			100.00%	100.00%

Top 10 Holdings

(% of Fund's Net Assets)


Transatlantic Holdings, Inc.	Reinsurance	8.15%
American Express Co.	Consumer Finance	6.11%
Wells Fargo & Co.	Commercial Banks	5.75%
Loews Corp.	Multi-line Insurance	5.44%
Julius Baer Holding AG	Capital Markets	4.87%
Bank of New York Mellon Corp.	Capital Markets	4.86%
State Bank of India Ltd., GDR	Commercial Banks	4.83%
Goldman Sachs Group, Inc.	Capital Markets	4.83%
Canadian Natural Resources Ltd.	Energy	4.38%
Moody's Corp.	Diversified Financial Services	4.29%

DAVIS VARIABLE ACCOUNT FUND, INC. Fund Overview

DAVIS REAL ESTATE PORTFOLIO

At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund's Net Assets)		(% of Long Term Portfolio)

				Wilshire U.S. Real Estate Securities Index
Common Stock (U.S.)	75.10%
Common Stock (Foreign)	1.97%		Fund
Preferred Stock	7.99%	Office REITs	33.71%	16.68%
Convertible Bonds	4.28%	Residential REITs	12.24%	15.13%
Short Term Investments	9.36%	Retail REITs	10.42%	23.63%
Other Assets & Liabilities	1.30%	Industrial REITs	8.87%	6.22%
	100.00%	Specialized REITs	8.02%	26.91%
		Transportation	7.52%	-
		Real Estate Operating Companies	6.73%	2.06%
		Diversified REITs	5.24%	9.37%
		Diversified Real Estate Activities	5.04%	-
		Capital Markets	2.21%	-
			100.00%	100.00%

Top 10 Holdings

(% of Fund's Net Assets)


American Campus Communities, Inc.	Residential REITs	7.19%
Forest City Enterprises, Inc., Class A	Real Estate Operating Companies	6.02%
Corporate Office Properties Trust	Office REITs	5.50%
Ventas, Inc.	Specialized REITs	4.89%
SL Green Realty Corp.	Office REITs	4.56%
St. Joe Co.	Diversified Real Estate Activities	4.50%
Federal Realty Investment Trust	Retail REITs	3.82%
DCT Industrial Trust Inc.	Industrial REITs	3.75%
Burlington Northern Santa Fe Corp.	Transportation	3.74%
Essex Property Trust, Inc.	Residential REITs	3.45%

DAVIS VARIABLE ACCOUNT FUND, INC. Expense Example (Unaudited)

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	(01/01/09)	(06/30/09)	(01/01/09-06/30/09)
Davis Value Portfolio
Actual	$1,000.00	$1,055.69	$4.33
Hypothetical	$1,000.00	$1,020.58	$4.26
Davis Financial Portfolio
Actual	$1,000.00	$1,127.81	$4.80
Hypothetical	$1,000.00	$1,020.28	$4.56
Davis Real Estate Portfolio
Actual	$1,000.00	$940.76	$4.81
Hypothetical	$1,000.00	$1,019.84	$5.01

Hypothetical assumes 5% annual return before expenses.

*Expenses are equal to each Fund's annualized operating expense ratio, multiplied by the average account valueover the period, multiplied by 181/365 (to reflect the one-half year period). See page 11 for a description of the "Expense Example." The annualized operating expense ratios for the six-month period ended June 30, 2009 are as follows:

	Annualized Expense Ratio**

Davis Value Portfolio	0.85%
Davis Financial Portfolio	0.91%
Davis Real Estate Portfolio	1.00%

** The expense ratios reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.

DAVIS VARIABLE ACCOUNT FUND, INC. Expense Example (Unaudited) - (Continued)

The following disclosure provides important information regarding each Fund's Expense Example. Please refer to this information when reviewing the Expense Example for each Fund.

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 each 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 each Fund is for the six-month period ended June 30, 2009. 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 Funds. If these charges or account specific costs were included in the Expense Example, the expenses would have been 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 each 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.

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS VALUE PORTFOLIO

June 30, 2009(Unaudited)

Shares					Security			Value (Note 1)
COMMON STOCK - (96.05%)
	CONSUMER DISCRETIONARY - (8.98%)
		Automobiles & Components - (0.79%)
	187,000		Harley-Davidson, Inc.			$	3,031,270

		Consumer Durables & Apparel - (0.35%)
	24,735		Garmin Ltd.				589,064
	17,799		Hunter Douglas NV (Netherlands)				726,607

							1,315,671

		Consumer Services - (0.65%)
	143,763		H&R Block, Inc.				2,477,037

		Media - (4.88%)
	452,541		Comcast Corp., Special Class A				6,374,040
	192,170		Grupo Televisa S.A., ADR (Mexico)				3,266,890
	75,360		Liberty Media Corp. - Entertainment, Series A *				2,013,242
	461,300		News Corp., Class A				4,204,750
	119,600		Walt Disney Co.				2,790,268

							18,649,190

		Retailing - (2.31%)
	22,800		Amazon.com, Inc. *				1,908,018
	143,015		Bed Bath & Beyond Inc. *				4,392,705
	143,000		CarMax, Inc. *				2,102,100
	84,450		Liberty Media Corp. - Interactive, Series A *				423,517

							8,826,340

				TOTAL CONSUMER DISCRETIONARY			34,299,508

	CONSUMER STAPLES - (11.83%)
		Food & Staples Retailing - (6.45%)
	334,700		Costco Wholesale Corp.				15,295,790
	293,498		CVS Caremark Corp.				9,353,781

							24,649,571

		Food, Beverage & Tobacco - (3.94%)
	26,700		Coca-Cola Co.				1,281,333
	97,833		Diageo PLC, ADR (United Kingdom)				5,600,939
	113,871		Heineken Holding NV (Netherlands)				3,616,601
	28,160		Hershey Co.				1,013,760
	80,790		Philip Morris International Inc.				3,524,060

							15,036,693

		Household & Personal Products - (1.44%)
	108,020		Procter & Gamble Co.				5,519,822

				TOTAL CONSUMER STAPLES			45,206,086

	ENERGY - (16.13%)
	135,600		Canadian Natural Resources Ltd. (Canada)				7,117,644
	2,659,900		China Coal Energy Co. - H (China)				3,171,267
	169,822		ConocoPhillips				7,142,713
	201,330		Devon Energy Corp.				10,972,485
	160,830		EOG Resources, Inc.				10,923,574
	274,560		Occidental Petroleum Corp.				18,068,794
	1,800		OGX Petroleo e Gas Participacoes S.A. (Brazil)				917,848
	44,904		Transocean Ltd. *				3,335,918

				TOTAL ENERGY			61,650,243

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS VALUE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Shares						Security			Value (Note 1)
COMMON STOCK - (CONTINUED)
	FINANCIALS - (28.42%)
		Banks - (4.22%)
			Commercial Banks - (4.22%)
	663,924			Wells Fargo & Co.			$	16,106,796

		Diversified Financials - (11.97%)
			Capital Markets - (5.56%)
	90,370			Ameriprise Financial, Inc.				2,193,280
	264,800			Bank of New York Mellon Corp.				7,761,288
	96,700			Brookfield Asset Management Inc., Class A (Canada)				1,650,669
	15,740			Goldman Sachs Group, Inc.				2,320,705
	188,960			Julius Baer Holding AG (Switzerland)				7,335,450

								21,261,392

			Consumer Finance - (2.68%)
	440,430			American Express Co.				10,235,593

			Diversified Financial Services - (3.73%)
	294,568			JPMorgan Chase & Co.				10,047,714
	122,530			Moody's Corp.				3,228,666
	15,700			Visa Inc., Class A				977,482

								14,253,862

								45,750,847

		Insurance - (11.61%)
			Life & Health Insurance - (0.30%)
	29,980			Principal Financial Group, Inc.				564,823
	21,700			Sun Life Financial Inc. (Canada)				584,164

								1,148,987

			Multi-line Insurance - (2.60%)
	207,611			American International Group, Inc. *				240,829
	83,200			Hartford Financial Services Group, Inc.				987,584
	317,790			Loews Corp.				8,707,446

								9,935,859

			Property & Casualty Insurance - (7.57%)
	205			Berkshire Hathaway Inc., Class A *				18,450,000
	530			Berkshire Hathaway Inc., Class B *				1,534,737
	1,180			Markel Corp. *				332,406
	81,700			NIPPONKOA Insurance Co., Ltd. (Japan)				476,622
	538,360			Progressive Corp. (Ohio) *				8,134,620

								28,928,385

			Reinsurance - (1.14%)
	100,407			Transatlantic Holdings, Inc.				4,350,635

								44,363,866

		Real Estate - (0.62%)
	503,000			Hang Lung Group Ltd. (Hong Kong)				2,381,933

					TOTAL FINANCIALS			108,603,442

	HEALTH CARE - (8.91%)
		Health Care Equipment & Services - (3.69%)
	40,200			Becton, Dickinson and Co.				2,866,662
	87,100			Cardinal Health, Inc.				2,660,905
	66,880			Express Scripts, Inc. *				4,596,997
	15,400			Laboratory Corp. of America Holdings *				1,043,966

DAVIS VARIABLE ACCOUNT FUND, INC.

Schedule of Investments

DAVIS VALUE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Shares					Security			Value (Note 1)
COMMON STOCK - (CONTINUED)
	HEALTH CARE - (CONTINUED)
		Health Care Equipment & Services - (Continued)
	116,400		UnitedHealth Group Inc.			$	2,907,672

							14,076,202

		Pharmaceuticals, Biotechnology & Life Sciences - (5.22%)
	108,600		Johnson & Johnson				6,168,480
	123,100		Merck & Co., Inc.				3,441,876
	219,200		Pfizer Inc.				3,288,000
	281,000		Schering-Plough Corp.				7,058,720

							19,957,076

				TOTAL HEALTH CARE			34,033,278

	INDUSTRIALS - (7.23%)
		Capital Goods - (1.39%)
	88,080		ABB Ltd., ADR (Switzerland)				1,389,903
	32,330		PACCAR Inc.				1,052,018
	110,034		Tyco International Ltd.				2,858,683

							5,300,604

		Commercial & Professional Services - (3.32%)
	53,500		D&B Corp.				4,344,735
	290,197		Iron Mountain Inc. *				8,343,164

							12,687,899

		Transportation - (2.52%)
	1,258,247		China Merchants Holdings International Co., Ltd. (China)				3,604,245
	882,000		China Shipping Development Co. Ltd. - H (China)				1,135,781
	939,200		Cosco Pacific Ltd. (China)				1,054,321
	23,400		Kuehne & Nagel International AG, Registered (Switzerland)				1,832,718
	40,310		United Parcel Service, Inc., Class B				2,015,097

							9,642,162

				TOTAL INDUSTRIALS			27,630,665

	INFORMATION TECHNOLOGY - (8.96%)
		Semiconductors & Semiconductor Equipment - (1.96%)
	352,200		Texas Instruments Inc.				7,501,860

		Software & Services - (3.94%)
	184,000		Activision Blizzard, Inc. *				2,324,840
	13,190		Google Inc., Class A *				5,563,938
	301,310		Microsoft Corp.				7,168,165

							15,056,943

		Technology Hardware & Equipment - (3.06%)
	188,250		Agilent Technologies, Inc. *				3,823,358
	135,400		Cisco Systems, Inc. *				2,524,533
	137,770		Hewlett-Packard Co.				5,324,810

							11,672,701

				TOTAL INFORMATION TECHNOLOGY			34,231,504

	MATERIALS - (5.41%)
	61,300		BHP Billiton PLC (United Kingdom)				1,375,604
	42,380		Martin Marietta Materials, Inc.				3,342,934
	28,200		Monsanto Co.				2,096,388
	9,954		Potash Corp. of Saskatchewan Inc. (Canada)				926,220
	21,800		Rio Tinto PLC (United Kingdom)				754,966

DAVIS VARIABLE ACCOUNT FUND, INC.

Schedule of Investments

DAVIS VALUE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Shares/Principal

Security

Value
(Note 1)

COMMON STOCK - (CONTINUED)

MATERIALS - (CONTINUED)

426,510

Sealed Air Corp.

7,869,109

199,850

Sino-Forest Corp. (Canada)*

2,130,542

50,290

Vulcan Materials Co.

2,167,499

TOTAL MATERIALS

20,663,262

UTILITIES - (0.18%)

60,800

AES Corp. *

705,888

TOTAL UTILITIES

705,888

TOTAL COMMON STOCK - (Identified Cost $331,043,154)

367,023,876

STOCK RIGHTS - (0.10%)

MATERIALS - (0.10%)

11,445

Rio Tinto PLC - FPR (United Kingdom)

386,001

TOTAL STOCK RIGHTS - (Identified Cost $455,858)

386,001

CONVERTIBLE BONDS - (0.69%)

MATERIALS - (0.16%)

736,000

Sino-Forest Corp., Conv. Sr. Notes, 5.00%, 08/01/13 (Canada) (a)

618,240

TOTAL MATERIALS

618,240

TELECOMMUNICATION SERVICES - (0.53%)

1,600,000

Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11

1,542,000

400,000

Level 3 Communications, Inc., Conv. Sr. Notes, 15.00%, 01/15/13 (a)

476,500

TOTAL TELECOMMUNICATION SERVICES

2,018,500

TOTAL CONVERTIBLE BONDS - (Identified Cost $2,736,000)

2,636,740

CORPORATE BONDS - (0.55%)

CONSUMER DISCRETIONARY - (0.55%)

Automobiles & Components - (0.55%)

2,000,000

Harley-Davidson, Inc., Sr. Notes, 15.00%, 02/01/14 (a)

2,108,522

TOTAL CORPORATE BONDS - (Identified Cost $2,000,000)

2,108,522

SHORT TERM INVESTMENTS - (2.39%)

2,818,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $2,818,005

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $2,874,360)

2,818,000

1,806,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $1,806,002

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $1,842,120)

1,806,000

4,515,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $4,515,014

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $4,605,300)

4,515,000

TOTAL SHORT TERM INVESTMENTS - (Identified Cost $9,139,000)

9,139,000

DAVIS VARIABLE ACCOUNT FUND, INC.

Schedule of Investments

DAVIS VALUE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

			Total Investments - (99.78%) - (Identified cost $345,374,012) - (b)		$	381,294,139
			Other Assets Less Liabilities - (0.22%)			846,685

				Net Assets - (100.00%)	$	382,140,824


	ADR: American Depositary Receipt
	*	Non-Income producing security.
	(a)	Illiquid Security - See Note 7 of the Notes to Financial Statements.
	(b)	Aggregate cost for federal income tax purposes is $345,536,022. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:
			Unrealized appreciation		$	77,113,296
			Unrealized depreciation			(41,355,179)

				Net unrealized appreciation	$	35,758,117


See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS FINANCIAL PORTFOLIO

June 30, 2009(Unaudited)

Shares						Security			Value (Note 1)
COMMON STOCK - (93.45%)
	CONSUMER DISCRETIONARY - (1.13%)
		Consumer Services - (1.13%)
	49,000			H&R Block, Inc.			$	844,270

					TOTAL CONSUMER DISCRETIONARY			844,270

	ENERGY - (4.38%)
	62,500			Canadian Natural Resources Ltd. (Canada)				3,280,625

					TOTAL ENERGY			3,280,625

	FINANCIALS - (82.41%)
		Banks - (11.43%)
			Commercial Banks - (11.43%)
	21,600			ICICI Bank Ltd., ADR (India)				637,200
	50,948			State Bank of India Ltd., GDR (India)				3,617,308
	177,500			Wells Fargo & Co.				4,306,150

								8,560,658

		Diversified Financials - (39.36%)
			Capital Markets - (20.23%)
	60,460			Ameriprise Financial, Inc.				1,467,364
	124,100			Bank of New York Mellon Corp.				3,637,371
	124,300			Brookfield Asset Management Inc., Class A (Canada)				2,121,801
	20,100			Charles Schwab Corp.				352,454
	24,520			Goldman Sachs Group, Inc.				3,615,229
	93,910			Julius Baer Holding AG (Switzerland)				3,645,597
	7,260			T. Rowe Price Group Inc.				302,597

								15,142,413

			Consumer Finance - (6.63%)
	196,700			American Express Co.				4,571,308
	194,994			First Marblehead Corp. *				393,888

								4,965,196

			Diversified Financial Services - (12.50%)
	14,486			Bank of America Corp.				191,215
	25,700			Cia Brasileira de Meios de Pagamento SA (Visanet) (Brazil)*				220,998
	23,748			JPMorgan Chase & Co.				810,044
	122,000			Moody's Corp.				3,214,700
	126,700			Oaktree Capital Group LLC, Class A (a)				2,724,050
	62,000			RHJ International (Belgium)*				395,744
	28,900			Visa Inc., Class A				1,799,314

								9,356,065

								29,463,674

		Insurance - (31.62%)
			Life & Health Insurance - (3.62%)
	48,833			China Life Insurance Co., Ltd., ADR (China)				2,707,301

			Multi-line Insurance - (5.44%)
	148,600			Loews Corp.				4,071,640

			Property & Casualty Insurance - (11.17%)
	31,200			ACE Ltd.				1,379,976
	24,800			FPIC Insurance Group, Inc. *				759,624
	11,200			Markel Corp. *				3,155,040
	203,300			Progressive Corp. (Ohio) *				3,071,863

								8,366,503

DAVIS VARIABLE ACCOUNT FUND, INC.

Schedule of Investments

DAVIS FINANCIAL PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Shares/Principal

Security

Value
(Note 1)

COMMON STOCK - (CONTINUED)

FINANCIALS - (CONTINUED)

Insurance - (Continued)

Reinsurance - (11.39%)

33,900

Everest Re Group, Ltd.

2,426,223

140,737

Transatlantic Holdings, Inc.

6,098,134

8,524,357

23,669,801

TOTAL FINANCIALS

61,694,133

INDUSTRIALS - (3.24%)

Commercial & Professional Services - (3.24%)

29,900

D&B Corp.

2,428,179

TOTAL INDUSTRIALS

2,428,179

MATERIALS - (2.29%)

92,800

Sealed Air Corp.

1,712,160

TOTAL MATERIALS

1,712,160

TOTAL COMMON STOCK - (Identified Cost $72,315,902)

69,959,367

SHORT TERM INVESTMENTS - (6.80%)

1,570,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $1,570,003

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $1,601,400)

1,570,000

1,006,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $1,006,001

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $1,026,120)

1,006,000

2,516,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $2,516,008

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $2,566,320)

2,516,000

TOTAL SHORT TERM INVESTMENTS - (Identified Cost $5,092,000)

5,092,000

Total Investments - (100.25%) - (Identified cost $77,407,902) - (b)

75,051,367

Liabilities Less Other Assets - (0.25%)

(186,203)

Net Assets - (100.00%)

74,865,164

ADR: American Depositary Receipt

GDR: Global Depositary Receipt

Non-Income producing security.

(a)

Illiquid Security - See Note 7 of the Notes to Financial Statements.

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS FINANCIAL PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)


	(b)	Aggregate cost for federal income tax purposes is $77,529,817. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:
			Unrealized appreciation		$	10,419,731
			Unrealized depreciation			(12,898,181)

				Net unrealized depreciation	$	(2,478,450)


See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS REAL ESTATE PORTFOLIO

June 30, 2009(Unaudited)

Shares							Security			Value (Note 1)
COMMON STOCK - (77.07%)
	FINANCIALS - (70.35%)
		Diversified Financials - (1.97%)
			Capital Markets - (1.97%)
	20,240				Brookfield Asset Management Inc., Class A (Canada)			$	345,497

		Real Estate - (68.38%)
			Real Estate Investment Trusts (REITs) - (57.86%)
				Diversified REITs - (4.68%)
	67,175				Cousins Properties, Inc.				570,987
	5,500				Vornado Realty Trust				247,665

									818,652

				Industrial REITs - (4.85%)
	10,200				AMB Property Corp.				191,862
	160,600				DCT Industrial Trust Inc.				655,248

									847,110

				Office REITs - (21.85%)
	16,700				Alexandria Real Estate Equities, Inc.				597,693
	3,700				Boston Properties, Inc.				176,490
	32,790				Corporate Office Properties Trust				961,731
	15,200				Digital Realty Trust, Inc.				544,920
	61,200				Douglas Emmett, Inc.				550,188
	5,670				Highwoods Properties, Inc.				126,838
	3,200				Kilroy Realty Corp.				65,728
	34,760				SL Green Realty Corp.				797,394

									3,820,982

				Residential REITs - (10.64%)
	56,700				American Campus Communities, Inc.				1,257,606
	9,690				Essex Property Trust, Inc.				603,009

									1,860,615

				Retail REITs - (8.68%)
	59,660				CBL & Associates Properties, Inc.				321,567
	12,950				Federal Realty Investment Trust				667,184
	19,660				Taubman Centers, Inc.				528,068

									1,516,819

				Specialized REITs - (7.16%)
	60,583				Cogdell Spencer, Inc.				259,901
	16,400				Host Hotels & Resorts Inc. *				137,596
	28,620				Ventas, Inc.				854,593

									1,252,090

									10,116,268

			Real Estate Management & Development - (10.52%)
				Diversified Real Estate Activities - (4.50%)
	29,720				St. Joe Co. *				787,283

				Real Estate Operating Companies - (6.02%)
	159,380				Forest City Enterprises, Inc., Class A *				1,051,908

									1,839,191

									11,955,459

						TOTAL FINANCIALS			12,300,956

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS REAL ESTATE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Shares/Principal

Security

Value
(Note 1)

COMMON STOCK - (CONTINUED)

INDUSTRIALS - (6.72%)

Transportation - (6.72%)

22,200

Alexander & Baldwin, Inc.

520,368

8,890

Burlington Northern Santa Fe Corp.

653,771

1,174,139

TOTAL INDUSTRIALS

1,174,139

TOTAL COMMON STOCK - (Identified Cost $21,098,731)

13,475,095

PREFERRED STOCK - (7.99%)

Financials - (7.99%)

Real Estate - (7.99%)

Real Estate Investment Trusts (REITs) - (7.99%)

Industrial REITs - (1.24%)

11,900

AMB Property Corp., 6.75%, Series M

215,925

Office REITs - (5.82%)

33,272

Alexandria Real Estate Equities, Inc., 7.00%, Series D, Conv. Pfd.

448,507

5,700

Digital Realty Trust, Inc., 5.50%, Series D, Cum. Conv. Pfd.

126,647

5,014

Digital Realty Trust, Inc., 8.50%, Series A

110,571

19,930

SL Green Realty Corp., 7.625%, Series C

332,084

1,017,809

Residential REITs - (0.30%)

2,000

Equity Residential, 7.00%, Series E, Cum. Conv. Pfd.

52,000

Retail REITs - (0.63%)

8,280

CBL & Associates Properties, Inc., 7.375%, Series D

110,641

TOTAL FINANCIALS

1,396,375

TOTAL PREFERRED STOCK - (Identified Cost $1,072,511)

1,396,375

CONVERTIBLE BONDS - (4.28%)

FINANCIALS - (4.28%)

Real Estate - (4.28%)

Real Estate Investment Trusts (REITs) - (4.28%)

Industrial REITs - (1.84%)

401,000

Prologis, Conv. Sr. Notes, 2.25%, 04/01/37

322,805

Office REITs - (2.44%)

344,000

Digital Realty Trust, Inc., 144A Conv. Sr. Notes, 5.50%, 04/15/29 (a)

340,130

104,000

SL Green Realty Corp., 144A Conv. Sr. Notes, 3.00%, 03/30/27 (a)

86,320

426,450

TOTAL FINANCIALS

749,255

TOTAL CONVERTIBLE BONDS - (Identified Cost $604,617)

749,255

SHORT TERM INVESTMENTS - (9.36%)

505,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $505,001

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $515,100)

505,000

DAVIS VARIABLE ACCOUNT FUND, INC. Schedule of Investments

DAVIS REAL ESTATE PORTFOLIO - (CONTINUED)

June 30, 2009(Unaudited)

Principal

Security

Value
(Note 1)

SHORT TERM INVESTMENTS - (CONTINUED)

323,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $323,000

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $329,460)

323,000

809,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $809,002

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $825,180)

809,000

TOTAL SHORT TERM INVESTMENTS - (Identified Cost $1,637,000)

1,637,000

Total Investments - (98.70%) - (Identified cost $24,412,859) - (b)

17,257,725

Other Assets Less Liabilities - (1.30%)

226,889

Net Assets - (100.00%)

17,484,614

Non-Income producing security.

(a)

These securities are subject to Rule 144A. The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations. These securities amounted to $426,450, or 2.44% of the Fund's net assets, as of June 30, 2009.

(b)

Aggregate cost for federal income tax purposes is $24,427,928. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

Unrealized appreciation

634,290

Unrealized depreciation

(7,804,493)

Net unrealized depreciation

(7,170,203)

See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Statements of Assets and Liabilities

At June 30, 2009 (Unaudited)

				Davis Value Portfolio		Davis Financial Portfolio		Davis Real Estate Portfolio
ASSETS:
Investments in securities at value* (see accompanying Schedules of Investments)			$	381,294,139	$	75,051,367	$	17,257,725
Cash				210,160		170,484		4,335
Cash - foreign currencies**				21,224		-		-
Receivables:
	Capital stock sold			357,245		50		4,880
	Dividends and interest			607,018		147,520		99,449
	Investment securities sold			2,277,359		-		157,703
Prepaid expenses				2,645		3,749		1,611
Due from Adviser				-		-		2,100
		Total assets		384,769,790		75,373,170		17,527,803
LIABILITIES:
Payables:
	Investment securities purchased			1,765,979		198,850		-
	Capital stock redeemed			563,270		239,343		11,494
Accrued audit fees				8,800		7,600		7,600
Accrued custodian fees				14,200		4,038		3,400
Accrued management fees				261,799		51,276		13,950
Other accrued expenses				14,918		6,899		6,745
		Total liabilities		2,628,966		508,006		43,189
NET ASSETS			$	382,140,824	$	74,865,164	$	17,484,614
SHARES OUTSTANDING				43,835,402		9,327,312		3,255,734
NET ASSET VALUE, offering, and redemption price per share (Net assets ÷ Shares outstanding)			$	8.72	$	8.03	$	5.37
NET ASSETS CONSIST OF:
Par value of shares of capital stock			$	43,835	$	9,327	$	3,256
Additional paid-in capital				375,038,647		89,419,167		38,519,960
Undistributed net investment income				2,410,917		932,797		153,918
Accumulated net realized losses from investments and foreign currency transactions				(31,277,096)		(13,141,495)		(14,037,127)
Net unrealized appreciation (depreciation) on investments and foreign currency transactions				35,924,521		(2,354,632)		(7,155,393)
		Net Assets	$	382,140,824	$	74,865,164	$	17,484,614

*Including:
	Cost of investments		$	345,374,012	$	77,407,902	$	24,412,859

**Cost of cash - foreign currencies				21,302		-		-

See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Statements of Operations

For the six months ended June 30, 2009 (Unaudited)

							Davis Value Portfolio		Davis Financial Portfolio		Davis Real Estate Portfolio
INVESTMENT INCOME:
Income:
		Dividends*				$	3,245,631	$	592,742	$	421,886
		Interest					270,241		5,423		13,353
			Total income				3,515,872		598,165		435,239

Expenses:
		Management fees (Note 3)					1,233,340		226,394		59,686
		Custodian fees					38,623		11,164		10,976
		Transfer agent fees					7,961		4,469		3,156
		Audit fees					10,200		9,000		9,000
		Legal fees					7,440		1,378		385
		Accounting fees (Note 3)					3,000		1,002		1,002
		Reports to shareholders					26,225		8,957		2,250
		Directors' fees and expenses					54,430		10,165		2,396
		Registration and filing fees					180		38		12
		Miscellaneous					8,608		3,531		3,109
			Total expenses				1,390,007		276,098		91,972
			Reimbursement of expenses by Adviser (Note 3)				-		-		(12,400)
				Net expenses			1,390,007		276,098		79,572
					Net investment income		2,125,865		322,067		355,667

REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
		Investment transactions					(30,890,014)		(7,872,009)		(11,134,670)
		Foreign currency transactions					2,987		(1,552)		(1,820)
Net change in unrealized appreciation (depreciation)							51,882,262		15,810,525		9,398,545
	Net realized and unrealized gain (loss) on investments and foreign currency transactions						20,995,235		7,936,964		(1,737,945)
		Net increase (decrease) in net assets resulting from operations				$	23,121,100	$	8,259,031	$	(1,382,278)

*Net of foreign taxes withheld as follows						$	56,024	$	13,162	$	1,291

See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Statements of Changes in Net Assets

For the six months ended June 30, 2009 (Unaudited)

			Davis Value Portfolio		Davis Financial Portfolio		Davis Real Estate Portfolio
OPERATIONS:
	Net investment income	$	2,125,865	$	322,067	$	355,667
	Net realized loss from investments and foreign currency transactions		(30,887,027)		(7,873,561)		(11,136,490)
	Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		51,882,262		15,810,525		9,398,545
	Net increase (decrease) in net assets resulting from operations		23,121,100		8,259,031		(1,382,278)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
	Net investment income		-		-		(201,749)

CAPITAL SHARE TRANSACTIONS:
	Net increase (decrease) in net assets resulting from capital share transactions (Note 5)		25,867,917		9,285,380		(262,768)
Total increase (decrease) in net assets			48,989,017		17,544,411		(1,846,795)

NET ASSETS:
	Beginning of period		333,151,807		57,320,753		19,331,409
	End of period*	$	382,140,824	$	74,865,164	$	17,484,614

*Including undistributed net investment income of		$	2,410,917	$	932,797	$	153,918

See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Statements of Changes in Net Assets

For the year ended December 31, 2008

			Davis Value Portfolio		Davis Financial Portfolio		Davis Real Estate Portfolio
OPERATIONS:
	Net investment income	$	4,955,792	$	630,375	$	654,938
	Net realized gain (loss) from investments and foreign currency transactions		605,679		(5,207,088)		(2,901,263)
	Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(246,836,174)		(46,773,677)		(16,471,893)
	Net decrease in net assets resulting from operations		(241,274,703)		(51,350,390)		(18,718,218)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
	Net investment income		(4,909,074)		-		(804,817)
	Realized gains from investment transactions		(8,550,201)		(3,340,762)		(368,670)
	Return of capital		-		-		(28,370)

CAPITAL SHARE TRANSACTIONS:
	Net decrease in net assets resulting from capital share transactions (Note 5)		(70,813,149)		(4,713,395)		(10,296,476)
Total decrease in net assets			(325,547,127)		(59,404,547)		(30,216,551)

NET ASSETS:
	Beginning of year		658,698,934		116,725,300		49,547,960
	End of year*	$	333,151,807	$	57,320,753	$	19,331,409

*Including undistributed net investment income of		$	285,052	$	610,730	$	-

See Notes to Financial Statements

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements

June 30, 2009 (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Davis Variable Account Fund, Inc. (a Maryland corporation), consists of three series of funds, Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio (collectively "Funds"). Davis Value Portfolio and Davis Financial Portfolio are registered under the Investment Company Act of 1940 ("40 Act"), as amended, as diversified, open-end management investment companies. Davis Real Estate Portfolio is registered under the 40 Act, as amended, as a non-diversified, open-end management investment company. Insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may only purchase shares of the Funds. The Funds account separately for the assets, liabilities, and operations of each series. The following is a summary of significant accounting policies followed by the Funds in the preparation of financial statements.

Security Valuation - The Funds calculate the net asset value of their 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) are valued at the last reported sales price on the day of valuation. Securities traded in the over-the-counter market (e.g. NASDAQ) and listed securities for which no sale was reported on that date are stated at the average of closing bid and asked prices. 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 Funds' assets are valued. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value. Securities whose values have been materially affected by what Davis Selected Advisers, L.P. ("Davis Advisors" or "Adviser"), the Funds' investment adviser, identifies as a significant event occurring before the Funds' assets are valued but after the close of their respective exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Directors. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. These valuation procedures are reviewed and subject to approval by the Board of Directors.

Fair Value Measurements - The Funds adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy for measuring fair value of assets and liabilities. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 -

quoted prices in active markets for identical securities

Level 2 -

other significant observable inputs (including quoted prices for similar investments, interest rates,

prepayment speeds, credit risk, etc.)

Level 3 -

significant unobservable inputs (including Fund's own assumptions in determining the fair value of

investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements - (Continued)

June 30, 2009 (Unaudited)

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

Fair Value Measurements - (Continued)

The following is a summary of the inputs used as of June 30, 2009 in valuing each Fund's investments carried at value:

	Investments in Securities at Value

	Davis		Davis		Davis
	Value		Financial		Real Estate
	Portfolio		Portfolio		Portfolio
Valuation inputs
Level 1 - Quoted prices:
Equity securities:
Consumer discretionary	$	34,299,508	$	844,270	$	-
Consumer staples		45,206,086		-		-
Energy		61,650,243		3,280,625		-
Financials		108,603,442		58,970,083		13,122,177
Health care		34,033,278		-		-
Industrials		27,630,665		2,428,179		1,174,139
Information technology		34,231,504		-		-
Materials		21,049,263		1,712,160		-
Utilities		705,888		-		-
Level 2 - Other Significant
Observable Inputs:
Convertible debt securities		2,636,740		-		749,255
Corporate debt securities		2,108,522		-		-
Equity securities:
Financials		-		2,724,050		575,154
Short-term securities		9,139,000		5,092,000		1,637,000
Level 3 - Significant Unobservable Inputs:		-		-		-
Total	$	381,294,139	$	75,051,367	$	17,257,725

Master Repurchase Agreements - The Funds, along with other affiliated funds, may transfer uninvested cash balances into one or more master repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. Government securities. A custodian bank holds securities pledged as collateral for repurchase agreements until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings.

Currency Translation - The market values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to the U.S. Dollar based upon the mean between the bid and offered quotations of the currencies against U.S. Dollars on the date of valuation. 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.

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements - (Continued)

June 30, 2009 (Unaudited)

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

Foreign Currency- The Funds 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 the U.S. Dollar. Forward currency contracts are marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When the forward currency contract is closed, the Funds record 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 Funds 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.

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 securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books, and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. The Funds include foreign currency gains and losses realized on the sale of investments together with market gains and losses on such investments in the Statements of Operations.

Federal Income Taxes- It is each 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 has analyzed the Funds' tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2009, no provision for income tax would be required in the Funds' financial statements. The Funds' federal and state (Arizona and Maryland) 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 departments of revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2005. At June 30, 2009 the Funds had post October 2008 losses available to offset future capital gains, if any, which expire in 2017. Davis Financial Portfolio and Davis Real Estate Portfolio have available for federal income tax purposes unused capital loss carryforwards that expire in 2016. Details of post October 2008 losses and capital loss carryforwards are as follows:

	Post October 2008 Losses (expire December 31, 2017)		Capital Loss Carryforwards (expire December 31, 2016)
Davis Value Portfolio	$	227,000	$	-

Davis Financial Portfolio		407,000		4,739,000

Davis Real Estate Portfolio		290,000		2,585,000

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 may differ for financial statement and tax purposes primarily due to differing treatments of wash sales, foreign currency transactions, and partnership income. 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 Funds. The Funds adjust the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations.

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements - (Continued)

June 30, 2009 (Unaudited)

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

Indemnification - Under the Funds' organizational documents, their officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, some of the Funds' contracts with their service providers contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Funds cannot be determined and the Funds have 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.

NOTE 2 - PURCHASES AND SALES OF SECURITIES

Purchases and sales of investment securities (excluding short-term securities) for the six months ended June 30, 2009 for Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio were as follows:

	Davis		Davis		Davis
	Value		Financial		Real Estate
	Portfolio		Portfolio		Portfolio
Cost of purchases	$	80,250,298	$	12,209,875	$	6,772,560
Proceeds of sales		38,047,907		3,126,997		7,188,809

NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

Advisory fees are paid monthly to the Adviser. The annual rate for each of the Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio was 0.75% of the respective Fund's average net assets. Effective July 1, 2009, the annual rate is 0.55% of the respective Fund's average net assets.

Boston Financial Data Services, Inc. ("BFDS") is the Funds' primary transfer agent. State Street Bank and Trust Company ("State Street Bank") is the Funds' primary accounting provider. Fees for such services are included in the custodian fee as State Street Bank also serves as the Funds' custodian. The Adviser is also paid for certain accounting services. The fee for these services for the six months ended June 30, 2009 for Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio amounted to $3,000, $1,002, and $1,002, respectively. The Adviser is contractually committed to waive fees and/or reimburse each Fund's expenses to the extent necessary to cap total annual operating expenses at 1.00% for each Fund. During the six months ended June 30, 2009, such reimbursements amounted to $12,400 for the Davis Real Estate Portfolio. Certain directors and officers of the Funds are also directors and officers of the general partner of the Adviser.

Davis Selected Advisers-NY, Inc. ("DSA-NY"), a wholly-owned subsidiary of the Adviser, acts as sub-adviser to the Funds. DSA-NY performs research and portfolio management services for the Funds under a Sub-Advisory Agreement with the Adviser. The Funds pay no fees directly to DSA-NY.

NOTE 4 - EXPENSES PAID INDIRECTLY

Under an agreement with State Street Bank, custodian fees are reduced for earnings on cash balances maintained at the custodian by the Funds. There were no reductions made during the six months ended June 30, 2009 for Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio.

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements - (Continued)

June 30, 2009 (Unaudited)

NOTE 5 - CAPITAL STOCK

At June 30, 2009, there were 5 billion shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

	Six months ended June 30, 2009 (Unaudited)
	Davis Value		Davis Financial		Davis Real
	Portfolio		Portfolio		Estate Portfolio
Shares sold		8,455,902		2,028,219		463,305
Shares issued in reinvestment of distributions		-		-		49,938
		8,455,902		2,028,219		513,243
Shares redeemed		(4,936,730)		(748,907)		(589,540)
Net increase (decrease)		3,519,172		1,279,312		(76,297)


Proceeds from shares sold	$	65,276,569	$	14,542,606	$	2,399,043
Proceeds from shares issued in reinvestment of
distributions		-		-		201,749
		65,276,569		14,542,606		2,600,792
Cost of shares redeemed		(39,408,652)		(5,257,226)		(2,863,560)
Net increase (decrease)	$	25,867,917	$	9,285,380	$	(262,768)


	Year ended December 31, 2008
	Davis Value		Davis Financial		Davis Real
	Portfolio		Portfolio		Estate Portfolio
Shares sold		5,699,870		2,481,240		276,678
Shares issued in reinvestment of distributions		1,734,051		531,968		161,544
		7,433,921		3,013,208		438,222
Shares redeemed		(12,622,781)		(3,147,595)		(1,432,521)
Net decrease		(5,188,860)		(134,387)		(994,299)


Proceeds from shares sold	$	61,188,955	$	26,265,738	$	2,700,154
Proceeds from shares issued in reinvestment of
distributions		13,459,275		3,340,762		1,201,857
		74,648,230		29,606,500		3,902,011
Cost of shares redeemed		(145,461,379)		(34,319,895)		(14,198,487)
Net decrease	$	(70,813,149)	$	(4,713,395)	$	(10,296,476)

NOTE 6 - BANK BORROWINGS

Each Fund may borrow up to 5% of its assets from a bank to purchase portfolio securities, or for temporary and emergency purposes. The purchase of securities with borrowed funds creates leverage in the Fund. Each Fund has entered into an agreement, which enables it to participate with certain other funds managed by the Adviser in an unsecured line of credit with a bank, which permits borrowings up to $50 million, collectively. Interest is charged based on its borrowings, at a rate equal to the overnight Federal Funds Rate plus 0.75%. The Funds had no borrowings outstanding for the six months ended June 30, 2009.

DAVIS VARIABLE ACCOUNT FUND, INC. Notes to Financial Statements - (Continued)

June 30, 2009 (Unaudited)

NOTE 7 - ILLIQUID SECURITIES

Securities may be considered illiquid if they lack a readily available market or if valuation has not changed for a certain period of time. The aggregate value of illiquid securities in Davis Value Portfolio amounted to $3,203,262 or 0.84% of the Fund's net assets as of June 30, 2009. The aggregate value of illiquid securities in Davis Financial Portfolio amounted to $2,724,050 or 3.64% of the Fund's net assets as of June 30, 2009. Information regarding illiquid securities is as follows:

Fund	Security	Acquisition Date	Principal	Units/ Shares	Cost per Unit/Share		Valuation per Unit/Share as of June 30, 2009

Davis Value Portfolio	Harley-Davidson, Inc., Sr. Notes, 15.00%, 02/01/14	02/03/09	$ 2,000,000	20,000	$	100.00	$	105.43

Davis Value Portfolio	Level 3 Communications, Inc., Conv. Sr. Notes, 15.00%, 01/15/13	12/23/08	$ 400,000	4,000	$	100.00	$	119.13

Davis Value Portfolio	Sino-Forest Corp., Conv. Sr. Notes, 5.00%, 08/01/13	07/17/08	$ 736,000	7,360	$	100.00	$	84.00

Davis Financial Portfolio	Oaktree Capital Group LLC, Class A	05/21/07	NA	126,700	$	23.84	$	21.50

DAVIS VARIABLE ACCOUNT FUND, INC. Financial Highlights

DAVIS VALUE PORTFOLIO


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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	8.26		$	14.48		$	14.58		$	12.77		$	11.78		$	10.57

Income (Loss) from Investment Operations:
	Net Investment Income				0.05			0.13			0.17			0.11			0.12			0.09
	Net Realized and Unrealized Gains (Losses)				0.41			(6.00)			0.51			1.81			0.99			1.21
		Total from Investment Operations			0.46			(5.87)			0.68			1.92			1.11			1.30

Dividends and Distributions:
	Dividends from Net Investment Income				-			(0.12)			(0.17)			(0.11)			(0.11)			(0.09)
	Distributions from Realized Gains				-			(0.23)			(0.61)			-			-			-
	Distributions in Excess of Net Investment Income				-			-			-			-			(0.01)			-
	Return of Capital				-			-			-			-			-			-^a
		Total Dividends and Distributions			-			(0.35)			(0.78)			(0.11)			(0.12)			(0.09)
Net Asset Value, End of Period					$	8.72		$	8.26		$	14.48		$	14.58		$	12.77		$	11.78

Total Return^b					5.57		%	(40.32)		%	4.64		%	15.00		%	9.44		%	12.33		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	382,141		$	333,152		$	658,699		$	771,828		$	620,369		$	684,723
	Ratio of Expenses to Average Net Assets:
		Gross			0.85		%^c	0.82		%	0.81		%	0.81		%	0.81		%	0.81		%
		Net^d			0.85		%^c	0.82		%	0.81		%	0.81		%	0.81		%	0.81		%
Ratio of Net Investment Income to Average Net Assets					1.29		%^c	0.98		%	1.11		%	0.83		%	0.87		%	0.87		%
Portfolio Turnover Rate^e					12		%	17		%	9		%	19		%	14		%	4		%

a			Less than $0.005 per share.
b			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
c			Annualized.
d			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
e			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

DAVIS VARIABLE ACCOUNT FUND, INC. Financial Highlights

DAVIS FINANCIAL PORTFOLIO


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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	7.12		$	14.27		$	16.29		$	13.83		$	12.82		$	11.66

Income (Loss) from Investment Operations:
	Net Investment Income				0.02			0.08			0.17			0.09			0.07			0.04
	Net Realized and Unrealized Gains (Losses)				0.89			(6.76)			(1.12)			2.47			1.00			1.16
		Total from Investment Operations			0.91			(6.68)			(0.95)			2.56			1.07			1.20

Dividends and Distributions:
	Dividends from Net Investment Income				-			-			(0.17)			(0.09)			(0.06)			(0.04)
	Distributions from Realized Gains				-			(0.47)			(0.90)			(0.01)			-			-
		Total Dividends and Distributions			-			(0.47)			(1.07)			(0.10)			(0.06)			(0.04)
Net Asset Value, End of Period					$	8.03		$	7.12		$	14.27		$	16.29		$	13.83		$	12.82

Total Return^a					12.78		%^b	(46.36)		%	(6.05)		%	18.50		%	8.38		%	10.32		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	74,865		$	57,321		$	116,725		$	155,807		$	124,060		$	109,274
	Ratio of Expenses to Average Net Assets:
		Gross			0.91		%^c	0.88		%	0.85		%	0.84		%	0.85		%	0.85		%
		Net^d			0.91		%^c	0.88		%	0.85		%	0.84		%	0.85		%	0.85		%
Ratio of Net Investment Income to Average Net Assets					1.07		%^c	0.73		%	0.97		%	0.66		%	0.52		%	0.40		%
Portfolio Turnover Rate^e					6		%	16		%	17		%	9		%	21		%	6		%

a			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
b			Davis Financial Portfolio received a favorable class action settlement from a company that 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.
c			Annualized.
d			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
e			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

DAVIS VARIABLE ACCOUNT FUND, INC. Financial Highlights

DAVIS REAL ESTATE PORTFOLIO


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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	5.80		$	11.45		$	20.43		$	17.33		$	16.80		$	13.47

Income (Loss) from Investment Operations:
	Net Investment Income				0.11			0.19			0.42			0.34			0.30			0.34
	Net Realized and Unrealized Gains (Losses)				(0.47)			(5.50)			(3.40)			5.58			1.86			4.07
		Total from Investment Operations			(0.36)			(5.31)			(2.98)			5.92			2.16			4.41

Dividends and Distributions:
	Dividends from Net Investment Income				(0.07)			(0.22)			(0.64)			(0.60)			(0.54)			(0.48)
	Distributions from Realized Gains				-			(0.11)			(5.36)			(2.22)			(1.09)			(0.60)
	Return of Capital				-			(0.01)			-			-			-			-
		Total Dividends and Distributions			(0.07)			(0.34)			(6.00)			(2.82)			(1.63)			(1.08)
Net Asset Value, End of Period					$	5.37		$	5.80		$	11.45		$	20.43		$	17.33		$	16.80

Total Return^a					(5.92)		%	(46.91)		%	(15.48)		%	34.37		%	13.14		%	33.35		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	17,485		$	19,331		$	49,548		$	89,738		$	64,556		$	58,279
	Ratio of Expenses to Average Net Assets:
		Gross			1.16		%^b	0.98		%	0.88		%	0.86		%	0.87		%	0.89		%
		Net^c			1.00		%^b	0.98		%	0.87		%	0.86		%	0.87		%	0.89		%
Ratio of Net Investment Income to Average Net Assets					4.47		%^b	1.84		%	1.92		%	1.63		%	1.71		%	2.30		%
Portfolio Turnover Rate^d					46		%	41		%	49		%	38		%	28		%	32		%

a			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company.s separate account. Inclusion of these charges would reduce the total returns shown.
b			Annualized.
c			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
d			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

DAVIS VARIABLE ACCOUNT FUND, INC. Fund Information

Portfolio Proxy Voting Policies and Procedures

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

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

Form N-Q

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available without charge, upon request, by calling 1-800-279-0279 or on the Funds' website at www.davisfunds.com or on the SEC's website at www.sec.gov. The Funds' Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

DAVIS VARIABLE ACCOUNT FUND, INC. Director Approval of Advisory Agreements

Process of Annual Review

The Board of Directors of the Davis Funds oversees the management of each Davis Fund and, as required by law, determines annually whether to approve the continuance of each Davis Fund's advisory agreement with Davis Selected Advisers, L.P. and sub-advisory agreement with Davis Selected Advisers-NY, Inc. (jointly "Davis Advisors" and "Advisory Agreements").

As a part of this process the Independent Directors, with the assistance of counsel for the Independent Directors, prepared questions submitted to Davis Advisors in anticipation of the annual contract review. The Independent Directors were provided with responsive background material (including recent investment performance data), and their counsel provided guidance, prior to a separate contract review meeting held in March 2009 where the Independent Directors reviewed and evaluated all information which they deemed reasonably necessary in the circumstances. Upon completion of this review, the Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements was in the best interest of Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio and their shareholders.

Reasons the Independent Directors Approved Continuation of the Advisory Agreements

The Independent Directors' determinations were based upon a comprehensive consideration of all information provided to the Independent Directors and were not the result of any single factor. The following facts and conclusions were important, but not exclusive, in the Independent Directors' recommendation to renew the Advisory Agreements.

The Independent Directors considered not only the investment performance of each Fund, but also the full range and quality of services provided by Davis Advisors to each Fund and their shareholders, including whether it:

Achieves satisfactory investment results over the long-term after all costs;

Handles shareholder transactions, inquiries, requests, and records efficiently and effectively, and provides

quality accounting, legal, and compliance services, and oversight of third party service providers; and

Fosters healthy investor behavior.

Davis Advisors is reimbursed a portion of its costs in providing some, but not all, of these services.

A shareholder's ultimate return is the product of a fund's results, as well as the shareholder's behavior, specifically in selecting when to invest or redeem. The Independent Directors concluded that through its actions and communications, Davis Advisors has attempted to have a meaningful, positive impact on investor behavior.

The Independent Directors noted the importance of reviewing quantitative measures, but also recognized that qualitative factors are also important in assessing whether Davis Fund shareholders are likely to be well served by the renewal of the Advisory Agreements. They noted both the value and shortcomings of purely quantitative measures, including the data provided by independent service providers, and concluded that while such measures and data may be informative, the judgment of the Independent Directors must take many factors, including those listed below, into consideration in representing the shareholders of the Davis Funds. In connection with reviewing comparative performance information, the Independent Directors generally give weight to longer-term measurements.

The Independent Directors expect Davis Advisors to employ a disciplined, company-specific, research-driven, businesslike, long-term investment philosophy.

The Independent Directors recognized Davis Advisors' (a) efforts to minimize transaction costs by generally having a long-term time horizon and low portfolio turnover; (b) record of generally producing satisfactory results over longer-term periods; (c) efforts towards fostering healthy investor behavior by, among other things, providing informative and substantial educational material; and (d) efforts to promote shareholder interests by actively speaking out on corporate governance issues.

The Independent Directors reviewed (a) comparative fee and expense information for other funds, as selected and analyzed by a nationally recognized independent service provider; (b) information regarding fees charged by Davis Advisors to other advisory clients, including funds which it sub-advises and private accounts, as well as the differences in the services provided to such other clients; and (c) the fee schedules of each of the Funds, including an assessment of competitive fee schedules.

DAVIS VARIABLE ACCOUNT FUND, INC. Director Approval of Advisory Agreements - (Continued)

Reasons the Independent Directors Approved Continuation of the Advisory Agreements - (Continued)

The Independent Directors reviewed the management fee schedule for each Fund and the profitability of each Fund to Davis Advisors, the extent to which economies of scale might be realized if any of the Funds' net assets increased, and whether the fixed fee schedule reflected those potential economies of scale. The Independent Directors considered the nature, quality and extent of the services being provided to each Fund and the costs incurred by Davis Advisors in providing such services. The Independent Directors considered various potential benefits that Davis Advisors may receive in connection with the services it provides under the Advisory Agreements with the Funds, including a review of portfolio brokerage practices. The Independent Directors noted that Davis Advisors does not use client commissions to pay for publications that are available to the general public or for third-party research services.

Davis Value Portfolio

The Independent Directors noted that Davis Value Portfolio had under-performed its benchmark, the Standard & Poor's 500^® Index, over the one-, three-, and five-year time periods ended February 28, 2009. A report produced by an independent service provider indicated that the Fund under-performed its peer group over the one- and three-year time periods and out-performed over the five-year time period, all ended December 31, 2008. The Independent Directors noted the Fund's strong performance versus both the S&P 500^® Index and its peer group for 4 of the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

The Independent Directors considered the management fee and total expense ratio for Davis Value Portfolio. The management fee and total expense ratio were both above the average but within the range of its peer group.

Davis Financial Portfolio

The Independent Directors noted that Davis Financial Portfolio had under-performed its benchmark, the Standard & Poor's 500^® Index, over the one-, three-, and five-year time periods ended February 28, 2009. A report produced by an independent service provider indicated that the Fund out-performed its peer group over the one-, three-, and five-year time periods ended December 31, 2008. The Independent Directors noted the Fund's strong performance versus its peer group for the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

The Independent Directors considered the management fee and total expense ratio for Davis Financial Portfolio. The management fee and total expense ratio were reasonable and below the average of its peer group.

Davis Real Estate Portfolio

The Independent Directors noted that Davis Real Estate Portfolio had under-performed its benchmark, the Wilshire U.S. Real Estate Securities Index (formerly Dow Jones Wilshire Real Estate Securities Index), over the five-year time period, matched the three-year time period, and out-performed in the one-year time period, all ended February 28, 2009. A report produced by an independent service provider indicated that the Fund had under-performed its peer group over the one-, three-, and five-year time periods ended December 31, 2008. The Independent Directors noted the Fund's strong performance versus its peer group for 4 of the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

The Independent Directors considered the management fee and total expense ratio for Davis Real Estate Portfolio. The management fee and total expense ratio were reasonable and below the average expense ratios of its peer group.

DAVIS VARIABLE ACCOUNT FUND, INC.Director Approval of Advisory Agreements - (Continued)

Approval of Advisory Agreements

The Independent Directors concluded that Davis Advisors had provided Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio and their shareholders a reasonable level of both investment and non-investment services. The Independent Directors further concluded that shareholders have received a significant benefit from Davis Advisors' shareholder-oriented approach, as well as the execution of its investment discipline.

The Independent Directors determined that the advisory fees for Davis Value Portfolio, Davis Financial Portfolio, and Davis Real Estate Portfolio were reasonable in light of the nature, quality and extent of the services being provided to the Funds, the costs incurred by Davis Advisors in providing such service, and in comparison to the range of the average advisory fees of its peer group as determined by an independent service provider. The Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements is in the best interest of each Fund and its shareholders. The Independent Directors and the full Board of Directors therefore voted to continue the Advisory Agreements.

Important Developments Following Approval of the Advisory Agreement

In the June 2009 Board of Directors' meeting Davis Advisors notified the Directors that it was voluntarily reducing each of the Funds' management fees by reducing the fixed fee of 75 basis points to a fixed fee of 55 basis points effective July 1, 2009.

DAVIS VARIABLE ACCOUNT FUND, INC. Directors and Officers

For the purposes 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. Each Director serves until their retirement, resignation, death or removal. Subject to exceptions and exemptions, which may be granted by the Independent Directors, Directors must retire at the close of business on the last day of the calendar year in which the Director attains age seventy-four (74).

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Independent Directors


Marc P. Blum (09/09/42)	Director	Director since 1986	Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).	13	Director, Legg Mason Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).

John S. Gates, Jr. (08/02/53)	Director	Director since 2007	Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of Centerpoint Properties Trust (a REIT); former Co-chairman and Chief Executive Officer for 22 years (until 2006).	13	Director, DCT Industrial Trust (a REIT).

Thomas S. Gayner (12/16/61)	Director	Director since 2004	Executive Vice President and Chief Investment Officer, Markel Corporation (insurance company).	13	Director, First Market Bank; Director, Washington Post Co. (newspaper publisher); Director, Colfax Corp. (engineering and manufacturer of pumps and fluid handling equipment).

G. Bernard Hamilton (03/18/37)	Director	Director since 1978	Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.	13	none

Samuel H. Iapalucci (07/19/52)	Director	Director since 2006	Former Executive Vice President and Chief Financial Officer, CH2M-Hill, Inc. (engineering).	13	none

Robert P. Morgenthau (03/22/57)	Director	Director since 2002	Chairman, NorthRoad Capital Management, LLC (an investment management firm) since June 2002.	13	none

Christian R. Sonne (05/06/36)	Director	Director since 1990	General Partner, Tuxedo Park Associates (land holding and development firm).	13	none

Marsha Williams (03/28/51)	Director	Director since 1999	Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider) since 2007; former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (a REIT).	13	Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering); Director, Fifth Third Bancorp (diversified financial services).

DAVIS VARIABLE ACCOUNT FUND, INC. Directors and Officers - (Continued)

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Inside Directors*


Jeremy H. Biggs (08/16/35)	Director/ Chairman	Director since 1994	Vice Chairman, Member of the Audit Committee and Member of the International Investment Committee, former Chief Investment Officer (1980 through 2005), all for Fiduciary Trust Company International (money management firm); Consultant to Davis Selected Advisers, L.P.	13	none

Christopher C. Davis (07/13/65)	Director	Director since 1997	President or Vice President of each Davis Fund, Selected Fund, and Clipper Fund; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser, including sole member of the Adviser's general partner, Davis Investments, LLC; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).	10	Director, Davis New York Venture Fund, Inc. (consisting of four portfolios); Director, the Selected Funds (consisting of three portfolios) since 1998; Director, Washington Post Co. (newspaper publisher).

* Jeremy H. Biggs 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.

DAVIS VARIABLE ACCOUNT FUND, INC. Directors and Officers - (Continued)

Officers

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

Andrew A. Davis (born 06/25/63, Davis Funds officer since 1997). President or Vice President of each of the Davis Funds (consisting of 13 portfolios) and Selected Funds (consisting of three portfolios); President, Davis Selected Advisers, L.P., serves as an executive officer in certain companies affiliated with the Adviser; Director of Davis Series, Inc. (consisting of six portfolios) and the Selected Funds (consisting of three portfolios).

Kenneth C. Eich (born 08/14/53, Davis Funds officer since 1997). Executive Vice President and Principal Executive Officer of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Chief Operating Officer, Davis Selected Advisers, L.P., and also serves as an executive officer in 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 each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President and Director of Fund Accounting, Davis Selected Advisers, L.P.

Sharra L. Haynes (born 09/25/66, Davis Funds officer since 1997). Vice President, Chief Compliance Officer of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President and Chief Compliance Officer, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.

Thomas D. Tays (born 03/07/57, Davis Funds officer since 1997). Vice President and Secretary of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President, Chief Legal Officer and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.

Arthur Don (born 09/24/53, Davis Funds officer since 1991). Assistant Secretary (for clerical purposes only) of each of the Davis Funds and Selected Funds; Partner, Seyfarth Shaw LLP (a law firm); counsel to the Independent Directors and the Davis Funds.

DAVIS VARIABLE ACCOUNT FUND, INC.

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
Boston Financial Data Services, Inc.
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406

Custodian
State Street Bank and Trust Co.
One Lincoln Street
Boston, Massachusetts 02111

Counsel
Seyfarth Shaw LLP
131 South Dearborn Street, Suite 2400
Chicago, Illinois 60603-5577

Independent Registered Public Accounting Firm
KPMG LLP
707 Seventeenth Street, Suite 2700
Denver, Colorado 80202

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

DAVIS VALUE PORTFOLIO	Table of Contents

Management’s Discussion and Analysis	2

Fund Overview	4

Expense Example	5

Schedule of Investments	6

Statement of Assets and Liabilities	11

Statement of Operations	12

Statements of Changes in Net Assets	13

Notes to Financial Statements	14

Financial Highlights	19

Fund Information	20

Director Approval of Advisory Agreements	21

Directors and Officers	23

DAVIS VALUE PORTFOLIO	Management’s Discussion and Analysis

Performance Overview

Davis Value Portfolio delivered a return on net asset value of 5.57% for the six-month period ended June 30, 2009¹. Over the same time period, the Standard & Poor’s 500^® Index² (“Index”) returned 3.16%. The sectors³ within the Index delivering the strongest performance for the period were information technology, materials, and consumer discretionary. The sectors delivering the weakest performance for the period were industrials, telecommunication services, and financials.

Factors Impacting the Portfolio’s Performance

The Portfolio’s investment in industrial companies was an important contributor⁴ to performance. While the Index’s industrial companies lost 6%, the Portfolio’s industrial companies gained 17%. China Merchants Holdings⁵ was among the most important contributors to performance.

The Portfolio had more invested in financial companies than in any other sector (26% versus 12% for the Index). The Portfolio’s financial companies out-performed the corresponding sector within the Index (up 2% versus down 3% for the Index). American Express and Julius Baer were among the most important contributors to performance while Wells Fargo, Berkshire Hathaway, and Bank of America were among the most important detractors from performance. The Portfolio no longer owns Bank of America.

Health care companies also made important contributions to performance. The Portfolio’s health care companies out-performed the corresponding sector within the Index (up 12% versus roughly flat for the Index). Schering-Plough was among the most important contributors to performance.

Consumer staple companies detracted from performance. The Portfolio’s consumer staple companies under-performed the corresponding sector within the Index (down 4% versus down 2% for the Index). Costco Wholesale and Philip Morris were among the most important detractors from performance.

Energy companies included two of the most important contributors to performance, Canadian Natural Resources and Occidental Petroleum, and two of the most important detractors from performance, ConocoPhillips and Devon Energy. The Portfolio had more invested in energy companies than the Index (17% versus 13% for the Index) and the Portfolio’s energy companies out-performed the corresponding sector within the Index (up 3% versus down 2% for the Index).

The Portfolio ended the six-month period with approximately 14% of its net assets in foreign companies. As a whole these companies out-performed the domestic companies held by the Portfolio.

DAVIS VALUE PORTFOLIO	Management’s Discussion and Analysis (Continued)

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

Davis Value Portfolio’s investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Value Portfolio are: (1) market risk, (2) company risk, (3) financial services risk, (4) foreign country risk, (5) headline risk, and (6) selection risk. See the prospectus for a full description of each risk.

¹ Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary, so that when redeemed, an investor’s shares may be worth more or less than when purchased. The total annualized operating expense ratio for the six months ended June 30, 2009 was 0.85%. Below are the average annual total returns for the periods ended June 30, 2009:

			SINCE
			PORTFOLIO’S
			INCEPTION
	1-YEAR	5-YEAR	(July 1, 1999)
Davis Value Portfolio	(28.95)%	(2.25)%	0.18%
Standard & Poor’s 500^® Index	(26.21)%	(2.24)%	(2.28)%

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

Portfolio performance changes over time and current performance may be higher or lower than stated. The operating expense ratio may vary in future years. For more current information please call Davis Funds Investor Services at 1-800-279-0279.

² The Standard & Poor’s 500^® 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.

³ The companies included in the Standard & Poor’s 500^® Index are divided into ten sectors. One or more industry groups make up a sector.

⁴ A company’s or sector’s contribution to or detraction from the Portfolio’s performance is a product both of its appreciation or depreciation and its weighting within the portfolio. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%.

⁵ This Management Discussion and Analysis 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 or sell any particular security. The Schedule of Investments lists the Portfolio’s holdings of each company discussed.

Shares of the Davis Value Portfolio 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.

DAVIS VALUE PORTFOLIO	Fund Overview
	At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund’s Net Assets)		(% of Long Term Portfolio)

			Fund	S&P 500^®
Common Stock (U.S.)	82.69%	Energy	16.57%	12.42%
Common Stock (Foreign)	13.36%	Diversified Financials	12.29%	7.41%
Convertible Bonds (U.S.)	0.53%	Insurance	11.92%	2.35%
Convertible Bonds (Foreign)	0.16%	Information Technology	9.20%	18.40%
Corporate Bonds	0.55%	Health Care	9.15%	13.97%
Stock Rights (Foreign)	0.10%	Food & Staples Retailing	6.62%	3.05%
Short Term Investments	2.39%	Materials	5.82%	3.23%
Other Assets & Liabilities	0.22%	Media	5.01%	2.58%
	100.00%	Banks	4.33%	2.83%
		Food, Beverage & Tobacco	4.04%	6.08%
		Commercial & Professional Services	3.41%	0.71%
		Transportation	2.59%	2.03%
		Other	2.39%	11.32%
		Retailing	2.37%	3.21%
		Household & Personal Products	1.48%	2.84%
		Capital Goods	1.43%	7.09%
		Automobiles & Components	1.38%	0.48%
			100.00%	100.00%

Top 10 Holdings

(% of Fund’s Net Assets)


Berkshire Hathaway Inc., Class A	Property & Casualty Insurance	4.83%
Occidental Petroleum Corp.	Energy	4.73%
Wells Fargo & Co.	Commercial Banks	4.22%
Costco Wholesale Corp.	Food & Staples Retailing	4.00%
Devon Energy Corp.	Energy	2.87%
EOG Resources, Inc.	Energy	2.86%
American Express Co.	Consumer Finance	2.68%
JPMorgan Chase & Co.	Diversified Financial Services	2.63%
CVS Caremark Corp.	Food & Staples Retailing	2.45%
Loews Corp.	Multi-line Insurance	2.28%

DAVIS VALUE PORTFOLIO	Expense Example (Unaudited)

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 June 30, 2009. 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 have been 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	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	(01/01/09)	(06/30/09)	(01/01/09-06/30/09)
Actual	$1,000.00	$1,055.69	$4.33
Hypothetical	$1,000.00	$1,020.58	$4.26

Hypothetical assumes 5% annual return before expenses.

* Expenses are equal to the Fund’s annualized operating expense ratio (0.85%*), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

** The expense ratio reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.

DAVIS VALUE PORTFOLIO	Schedule of Investments
	June 30, 2009 (Unaudited)

Shares					Security			Value (Note 1)
COMMON STOCK - (96.05%)
	Consumer Discretionary - (8.98%)
		Automobiles & Components – (0.79%)
	187,000		Harley-Davidson, Inc.			$	3,031,270

		Consumer Durables & Apparel – (0.35%)
	24,735		Garmin Ltd.				589,064
	17,799		Hunter Douglas NV (Netherlands)				726,607

							1,315,671

		Consumer Services – (0.65%)
	143,763		H&R Block, Inc.				2,477,037

		Media – (4.88%)
	452,541		Comcast Corp., Special Class A				6,374,040
	192,170		Grupo Televisa S.A., ADR (Mexico)				3,266,890
	75,360		Liberty Media Corp. - Entertainment, Series A *				2,013,242
	461,300		News Corp., Class A				4,204,750
	119,600		Walt Disney Co.				2,790,268

							18,649,190

		Retailing – (2.31%)
	22,800		Amazon.com, Inc. *				1,908,018
	143,015		Bed Bath & Beyond Inc. *				4,392,705
	143,000		CarMax, Inc. *				2,102,100
	84,450		Liberty Media Corp. - Interactive, Series A *				423,517

							8,826,340

				TOTAL CONSUMER DISCRETIONARY			34,299,508

	Consumer Staples - (11.83%)
		Food & Staples Retailing – (6.45%)
	334,700		Costco Wholesale Corp.				15,295,790
	293,498		CVS Caremark Corp.				9,353,781

							24,649,571

		Food, Beverage & Tobacco – (3.94%)
	26,700		Coca-Cola Co.				1,281,333
	97,833		Diageo PLC, ADR (United Kingdom)				5,600,939
	113,871		Heineken Holding NV (Netherlands)				3,616,601
	28,160		Hershey Co.				1,013,760
	80,790		Philip Morris International Inc.				3,524,060

							15,036,693

		Household & Personal Products – (1.44%)
	108,020		Procter & Gamble Co.				5,519,822

				TOTAL CONSUMER STAPLES			45,206,086

	Energy - (16.13%)
	135,600		Canadian Natural Resources Ltd. (Canada)				7,117,644
	2,659,900		China Coal Energy Co. - H (China)				3,171,267
	169,822		ConocoPhillips				7,142,713
	201,330		Devon Energy Corp.				10,972,485
	160,830		EOG Resources, Inc.				10,923,574
	274,560		Occidental Petroleum Corp.				18,068,794
	1,800		OGX Petroleo e Gas Participacoes S.A. (Brazil)				917,848
	44,904		Transocean Ltd. *				3,335,918

				TOTAL ENERGY			61,650,243

DAVIS VALUE PORTFOLIO	Schedule of Investments
	June 30, 2009 (Unaudited)

Shares						Security			Value (Note 1)
Common Stock - (Continued)
	Financials - (28.42%)
		Banks – (4.22%)
			Commercial Banks – (4.22%)
	663,924			Wells Fargo & Co.			$	16,106,796

		Diversified Financials – (11.97%)
			Capital Markets – (5.56%)
	90,370			Ameriprise Financial, Inc.				2,193,280
	264,800			Bank of New York Mellon Corp.				7,761,288
	96,700			Brookfield Asset Management Inc., Class A (Canada)				1,650,669
	15,740			Goldman Sachs Group, Inc.				2,320,705
	188,960			Julius Baer Holding AG (Switzerland)				7,335,450

								21,261,392

			Consumer Finance – (2.68%)
	440,430			American Express Co.				10,235,593

			Diversified Financial Services – (3.73%)
	294,568			JPMorgan Chase & Co.				10,047,714
	122,530			Moody's Corp.				3,228,666
	15,700			Visa Inc., Class A				977,482

								14,253,862

								45,750,847

		Insurance – (11.61%)
			Life & Health Insurance – (0.30%)
	29,980			Principal Financial Group, Inc.				564,823
	21,700			Sun Life Financial Inc. (Canada)				584,164

								1,148,987

			Multi-line Insurance – (2.60%)
	207,611			American International Group, Inc. *				240,829
	83,200			Hartford Financial Services Group, Inc.				987,584
	317,790			Loews Corp.				8,707,446

								9,935,859

			Property & Casualty Insurance – (7.57%)
	205			Berkshire Hathaway Inc., Class A *				18,450,000
	530			Berkshire Hathaway Inc., Class B *				1,534,737
	1,180			Markel Corp. *				332,406
	81,700			NIPPONKOA Insurance Co., Ltd. (Japan)				476,622
	538,360			Progressive Corp. (Ohio) *				8,134,620

								28,928,385

			Reinsurance – (1.14%)
	100,407			Transatlantic Holdings, Inc.				4,350,635

								44,363,866

		Real Estate – (0.62%)
	503,000			Hang Lung Group Ltd. (Hong Kong)				2,381,933

					TOTAL FINANCIALS			108,603,442

	Health Care - (8.91%)
		Health Care Equipment & Services – (3.69%)
	40,200			Becton, Dickinson and Co.				2,866,662
	87,100			Cardinal Health, Inc.				2,660,905
	66,880			Express Scripts, Inc. *				4,596,997
	15,400			Laboratory Corp. of America Holdings *				1,043,966

DAVIS VALUE PORTFOLIO	Schedule of Investments
	June 30, 2009 (Unaudited)

Shares					Security			Value (Note 1)
Common Stock - (Continued)
	Health Care - (Continued)
		Health Care Equipment & Services – (Continued)
	116,400		UnitedHealth Group Inc.			$	2,907,672

							14,076,202

		Pharmaceuticals, Biotechnology & Life Sciences – (5.22%)
	108,600		Johnson & Johnson				6,168,480
	123,100		Merck & Co., Inc.				3,441,876
	219,200		Pfizer Inc.				3,288,000
	281,000		Schering-Plough Corp.				7,058,720

							19,957,076

				TOTAL HEALTH CARE			34,033,278

	Industrials - (7.23%)
		Capital Goods – (1.39%)
	88,080		ABB Ltd., ADR (Switzerland)				1,389,903
	32,330		PACCAR Inc.				1,052,018
	110,034		Tyco International Ltd.				2,858,683

							5,300,604

		Commercial & Professional Services – (3.32%)
	53,500		D&B Corp.				4,344,735
	290,197		Iron Mountain Inc. *				8,343,164

							12,687,899

		Transportation – (2.52%)
	1,258,247		China Merchants Holdings International Co., Ltd. (China)				3,604,245
	882,000		China Shipping Development Co. Ltd. - H (China)				1,135,781
	939,200		Cosco Pacific Ltd. (China)				1,054,321
	23,400		Kuehne & Nagel International AG, Registered (Switzerland)				1,832,718
	40,310		United Parcel Service, Inc., Class B				2,015,097

							9,642,162

				TOTAL INDUSTRIALS			27,630,665

	Information Technology - (8.96%)
		Semiconductors & Semiconductor Equipment – (1.96%)
	352,200		Texas Instruments Inc.				7,501,860

		Software & Services – (3.94%)
	184,000		Activision Blizzard, Inc. *				2,324,840
	13,190		Google Inc., Class A *				5,563,938
	301,310		Microsoft Corp.				7,168,165

							15,056,943

		Technology Hardware & Equipment – (3.06%)
	188,250		Agilent Technologies, Inc. *				3,823,358
	135,400		Cisco Systems, Inc. *				2,524,533
	137,770		Hewlett-Packard Co.				5,324,810

							11,672,701

				TOTAL INFORMATION TECHNOLOGY			34,231,504

	Materials - (5.41%)
	61,300		BHP Billiton PLC (United Kingdom)				1,375,604
	42,380		Martin Marietta Materials, Inc.				3,342,934
	28,200		Monsanto Co.				2,096,388
	9,954		Potash Corp. of Saskatchewan Inc. (Canada)				926,220
	21,800		Rio Tinto PLC (United Kingdom)				754,966

DAVIS VALUE PORTFOLIO	Schedule of Investments
	June 30, 2009 (Unaudited)

Shares/Principal

Security

Value
(Note 1)

Common Stock - (Continued)

Materials - (Continued)

426,510

Sealed Air Corp.

7,869,109

199,850

Sino-Forest Corp. (Canada)*

2,130,542

50,290

Vulcan Materials Co.

2,167,499

TOTAL MATERIALS

20,663,262

Utilities - (0.18%)

60,800

AES Corp. *

705,888

TOTAL UTILITIES

705,888

TOTAL COMMON STOCK – (Identified cost $331,043,154)

367,023,876

STOCK RIGHTS - (0.10%)

Materials - (0.10%)

11,445

Rio Tinto PLC - FPR (United Kingdom)

386,001

TOTAL STOCK RIGHTS – (Identified cost $455,858)

386,001

CONVERTIBLE BONDS - (0.69%)

Materials - (0.16%)

736,000

Sino-Forest Corp., Conv. Sr. Notes, 5.00%, 08/01/13 (Canada) (a)

618,240

TOTAL MATERIALS

618,240

Telecommunication Services - (0.53%)

1,600,000

Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11

1,542,000

400,000

Level 3 Communications, Inc., Conv. Sr. Notes, 15.00%, 01/15/13 (a)

476,500

TOTAL TELECOMMUNICATION SERVICES

2,018,500

TOTAL CONVERTIBLE BONDS – (Identified cost $2,736,000)

2,636,740

CORPORATE BONDS - (0.55%)

Consumer Discretionary - (0.55%)

Automobiles & Components – (0.55%)

2,000,000

Harley-Davidson, Inc., Sr. Notes, 15.00%, 02/01/14 (a)

2,108,522

TOTAL CORPORATE BONDS – (Identified cost $2,000,000)

2,108,522

SHORT TERM INVESTMENTS - (2.39%)

2,818,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $2,818,005

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $2,874,360)

2,818,000

1,806,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $1,806,002

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $1,842,120)

1,806,000

4,515,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $4,515,014

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $4,605,300)

4,515,000

TOTAL SHORT TERM INVESTMENTS – (Identified cost $9,139,000)

9,139,000

DAVIS VALUE PORTFOLIO	Schedule of Investments
	June 30, 2009 (Unaudited)

			Total Investments – (99.78%) – (Identified cost $345,374,012) – (b)		$	381,294,139
			Other Assets Less Liabilities – (0.22%)			846,685

				Net Assets – (100.00%)	$	382,140,824


	ADR: American Depositary Receipt
	*	Non-Income producing security.
	(a)	Illiquid Security – See Note 7 of the Notes to Financial Statements.
	(b)	Aggregate cost for federal income tax purposes is $345,536,022. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:
			Unrealized appreciation		$	77,113,296
			Unrealized depreciation			(41,355,179)

				Net unrealized appreciation	$	35,758,117


See Notes to Financial Statements

DAVIS VALUE PORTFOLIO	Statements of Assets and Liabilities
	At June 30, 2009 (Unaudited)


ASSETS:
Investments in securities at value* (see accompanying Schedule of Investments)			$	381,294,139
Cash				210,160
Cash - foreign currencies**				21,224
Receivables:
	Capital stock sold			357,245
	Dividends and interest			607,018
	Investment securities sold			2,277,359
Prepaid expenses				2,645
		Total assets		384,769,790
LIABILITIES:
Payables:
	Investment securities purchased			1,765,979
	Capital stock redeemed			563,270
Accrued management fees				261,799
Other accrued expenses				37,918
		Total liabilities		2,628,966
NET ASSETS			$	382,140,824
SHARES OUTSTANDING				43,835,402
NET ASSET VALUE, offering, and redemption price per share (Net assets ÷ Shares outstanding)			$	8.72
NET ASSETS CONSIST OF:
Par value of shares of capital stock			$	43,835
Additional paid-in capital				375,038,647
Undistributed net investment income				2,410,917
Accumulated net realized losses from investments and foreign currency transactions				(31,277,096)
Net unrealized appreciation on investments and foreign currency transactions				35,924,521
		Net Assets	$	382,140,824

*Including:
	Cost of investments		$	345,374,012

**Cost of cash - foreign currencies				21,302

See Notes to Financial Statements

DAVIS VALUE PORTFOLIO	Statements of Operations
	For the six months ended June 30, 2009 (Unaudited)



INVESTMENT INCOME:
Income:
		Dividends*					$	3,245,631
		Interest						270,241
			Total income					3,515,872

Expenses:
		Management fees (Note 3)			$	1,233,340
		Custodian fees				38,623
		Transfer agent fees				7,961
		Audit fees				10,200
		Legal fees				7,440
		Accounting fees (Note 3)				3,000
		Reports to shareholders				26,225
		Directors’ fees and expenses				54,430
		Registration and filing fees				180
		Miscellaneous				8,608
			Total expenses					1,390,007
				Net investment income				2,125,865

REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
		Investment transactions						(30,890,014)
		Foreign currency transactions						2,987
Net change in unrealized appreciation (depreciation)								51,882,262
	Net realized and unrealized gain on investments and foreign currency transactions							20,995,235
		Net increase in net assets resulting from operations					$	23,121,100

*Net of foreign taxes withheld as follows							$	56,024

See Notes to Financial Statements

DAVIS VALUE PORTFOLIO	Statements of Changes in Net Assets

			Six months ended		Year ended
			June 30, 2009 (Unaudited)		December 31, 2008
OPERATIONS:
	Net investment income	$	2,125,865	$	4,955,792
	Net realized gain (loss) from investments and foreign currency transactions		(30,887,027)		605,679
	Net change in appreciation (depreciation) on investments and foreign currency transactions		51,882,262		(246,836,174)
	Net increase (decrease) in net assets resulting from operations		23,121,100		(241,274,703)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
	Net investment income		–		(4,909,074)
	Realized gains from investment transactions		–		(8,550,201)

CAPITAL SHARE TRANSACTIONS:
	Net increase (decrease) in net assets resulting from capital share transactions (Note 5)		25,867,917		(70,813,149)
Total increase (decrease) in net assets			48,989,017		(325,547,127)

NET ASSETS:
	Beginning of period		333,151,807		658,698,934
	End of period*	$	382,140,824	$	333,151,807

*Including undistributed net investment income of		$	2,410,917	$	285,052

See Notes to Financial Statements

DAVIS VALUE PORTFOLIO	Notes to Financial Statements
	June 30, 2009 (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation), which is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. Insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may only purchase shares of the Fund. The following is a summary of significant accounting policies followed by the Fund in the preparation of financial statements.

Security Valuation - The Fund calculates the net asset value of their 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) are valued at the last reported sales price on the day of valuation. Securities traded in the over-the-counter market (e.g. NASDAQ) and listed securities for which no sale was reported on that date are stated at the average of closing bid and asked prices. 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 are valued at their fair value. Securities whose values have been materially affected by what Davis Selected Advisers, L.P. (“Davis Advisors” or “Adviser”), the Fund’s investment 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. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Directors. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. These valuation procedures are reviewed and subject to approval by the Board of Directors.

Fair Value Measurements - The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective January 1, 2008. In accordance with FAS 157, 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 or most advantageous market of the investment. FAS 157 established a three-tier hierarchy for measuring fair value of assets and liabilities. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 –

quoted prices in active markets for identical securities

Level 2 –

other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 –

significant unobservable inputs (including Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

DAVIS VALUE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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

Fair Value Measurements – (Continued)

The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund’s investments carried at value:

	Investments in Securities at Value
	Valuation Inputs
			Level 2		Level 3
			Other Significant		Significant
	Level 1		Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
Equity securities:
Consumer discretionary	$	34,299,508	$	–	$	–	$	34,299,508
Consumer staples		45,206,086		–		–		45,206,086
Energy		61,650,243		–		–		61,650,243
Financials		108,603,442		–		–		108,603,442
Health care		34,033,278		–		–		34,033,278
Industrials		27,630,665		–		–		27,630,665
Information technology		34,231,504		–		–		34,231,504
Materials		21,049,263		–		–		21,049,263
Utilities		705,888		–		–		705,888
Convertible debt securities		–		2,636,740		–		2,636,740
Corporate debt securities		–		2,108,522		–		2,108,522
Short-term securities		–		9,139,000		–		9,139,000
Total	$	367,409,877	$	13,884,262	$	–	$	381,294,139

Master Repurchase Agreements - The Fund, along with other affiliated funds, may transfer uninvested cash balances into one or more master repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. Government securities. A custodian bank holds securities pledged as collateral for repurchase agreements until the agreements mature. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings.

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 the U.S. Dollar. 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.

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 securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books, and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sale of investments together with market gains and losses on such investments in the Statement of Operations.

DAVIS VALUE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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 has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2009, no provision for income tax would be required in the Fund’s financial statements. The Fund’s federal and state (Arizona and Maryland) 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 departments of revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2005. At June 30, 2009 the Fund had post October 2008 losses of $227,000 available to offset future capital gains, if any, which expire in 2017.

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 may differ for financial statement and tax purposes primarily due to differing treatments of wash sales 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 the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations.

Indemnification - Under the Fund’s organizational documents, 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.

NOTE 2 - PURCHASES AND SALES OF SECURITIES

Purchases and sales of investment securities (excluding short-term securities) for the six months ended June 30, 2009 were $80,250,298 and $38,047,907, respectively.

DAVIS VALUE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

Advisory fees were paid monthly to the Adviser at an annual rate of 0.75% of the Fund’s average net assets. Effective July 1, 2009, the annual rate is 0.55% of the Fund’s average net assets.

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.

NOTE 4 - EXPENSES PAID INDIRECTLY

Under an agreement with State Street Bank, custodian fees are reduced for earnings on cash balances maintained at the custodian by the Fund. There were no reductions made during the six months ended June 30, 2009.

NOTE 5 - CAPITAL STOCK

At June 30, 2009, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

	Six months ended			Year ended
	June 30, 2009 (Unaudited)			December 31, 2008
	Shares		Amount	Shares		Amount
Shares sold	8,455,902	$	65,276,569	5,699,870	$	61,188,955
Shares issued in reinvestment
of distributions	–		–	1,734,051		13,459,275
	8,455,902		65,276,569	7,433,921		74,648,230
Shares redeemed	(4,936,730)		(39,408,652)	(12,622,781)		(145,461,379)
Net increase (decrease)	3,519,172	$	25,867,917	(5,188,860)	$	(70,813,149)

NOTE 6 - BANK BORROWINGS

The Fund may borrow up to 5% of its assets from a bank to purchase portfolio securities, or for temporary and emergency purposes. The purchase of securities with borrowed funds creates leverage in the Fund. The Fund has entered into an agreement, which enables it to participate with certain other funds managed by the Adviser in an unsecured line of credit with a bank, which permits borrowings up to $50 million, collectively. Interest is charged based on its borrowings, at a rate equal to the overnight Federal Funds Rate plus 0.75%. The Fund had no borrowings outstanding for the six months ended June 30, 2009.

DAVIS VALUE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

NOTE 7 - ILLIQUID SECURITIES

Security	Acquisition Date	Principal	Units	Cost per Unit		Valuation per Unit as of June 30, 2009

Harley-Davidson, Inc., Sr. Notes, 15.00%, 02/01/14	02/03/09	$ 2,000,000	20,000	$	100.00	$	105.43

Level 3 Communications, Inc., Conv. Sr. Notes, 15.00%, 01/15/13	12/23/08	$ 400,000	4,000	$	100.00	$	119.13

Sino-Forest Corp., Conv. Sr. Notes, 5.00%, 08/01/13	07/17/08	$ 736,000	7,360	$	100.00	$	84.00

DAVIS VALUE PORTFOLIO	Financial Highlights

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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	8.26		$	14.48		$	14.58		$	12.77		$	11.78		$	10.57

Income (Loss) from Investment Operations:
	Net Investment Income				0.05			0.13			0.17			0.11			0.12			0.09
	Net Realized and Unrealized Gains (Losses)				0.41			(6.00)			0.51			1.81			0.99			1.21
		Total from Investment Operations			0.46			(5.87)			0.68			1.92			1.11			1.30

Dividends and Distributions:
	Dividends from Net Investment Income				–			(0.12)			(0.17)			(0.11)			(0.11)			(0.09)
	Distributions from Realized Gains				–			(0.23)			(0.61)			–			–			–
	Distributions in Excess of Net Investment Income				–			–			–			–			(0.01)			–
	Return of Capital				–			–			–			–			–			–^a
		Total Dividends and Distributions			–			(0.35)			(0.78)			(0.11)			(0.12)			(0.09)
Net Asset Value, End of Period					$	8.72		$	8.26		$	14.48		$	14.58		$	12.77		$	11.78

Total Return^b					5.57		%	(40.32)		%	4.64		%	15.00		%	9.44		%	12.33		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	382,141		$	333,152		$	658,699		$	771,828		$	620,369		$	684,723
	Ratio of Expenses to Average Net Assets:
		Gross			0.85		%^c	0.82		%	0.81		%	0.81		%	0.81		%	0.81		%
		Net^d			0.85		%^c	0.82		%	0.81		%	0.81		%	0.81		%	0.81		%
Ratio of Net Investment Income to Average Net Assets					1.29		%^c	0.98		%	1.11		%	0.83		%	0.87		%	0.87		%
Portfolio Turnover Rate^e					12		%	17		%	9		%	19		%	14		%	4		%

a			Less than $0.005 per share.
b			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company’s separate account. Inclusion of these charges would reduce the total returns shown.
c			Annualized.
d			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
e			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

DAVIS VALUE PORTFOLIO	Fund Information

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^th, no later than August 31^st 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.

Form N-Q

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available without charge, upon request, by calling 1-800-279-0279 or on the Fund’s website at www.davisfunds.com or on the SEC’s website at www.sec.gov. The Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

DAVIS VALUE PORTFOLIO	Director Approval of Advisory Agreements

Process of Annual Review

The Board of Directors of the Davis Funds oversees the management of each Davis Fund and, as required by law, determines annually whether to approve the continuance of each Davis Fund’s advisory agreement with Davis Selected Advisers, L.P. and sub-advisory agreement with Davis Selected Advisers-NY, Inc. (jointly “Davis Advisors” and “Advisory Agreements”).

Reasons the Independent Directors Approved Continuation of the Advisory Agreements

The Independent Directors’ determinations were based upon a comprehensive consideration of all information provided to the Independent Directors and were not the result of any single factor. The following facts and conclusions were important, but not exclusive, in the Independent Directors’ recommendation to renew the Advisory Agreements.

Achieves satisfactory investment results over the long-term after all costs;

Handles shareholder transactions, inquiries, requests, and records efficiently and effectively, and provides quality accounting, legal, and compliance services, and oversight of third party service providers; and

Fosters healthy investor behavior.

Davis Advisors is reimbursed a portion of its costs in providing some, but not all, of these services.

A shareholder’s ultimate return is the product of a fund’s results, as well as the shareholder’s behavior, specifically in selecting when to invest or redeem. The Independent Directors concluded that through its actions and communications, Davis Advisors has attempted to have a meaningful, positive impact on investor behavior.

The Independent Directors expect Davis Advisors to employ a disciplined, company-specific, research-driven, businesslike, long-term investment philosophy.

The Independent Directors recognized Davis Advisors’ (a) efforts to minimize transaction costs by generally having a long-term time horizon and low portfolio turnover; (b) record of generally producing satisfactory results over longer-term periods; (c) efforts towards fostering healthy investor behavior by, among other things, providing informative and substantial educational material; and (d) efforts to promote shareholder interests by actively speaking out on corporate governance issues.

The Independent Directors reviewed (a) comparative fee and expense information for other funds, as selected and analyzed by a nationally recognized independent service provider; (b) information regarding fees charged by Davis Advisors to other advisory clients, including funds which it sub-advises and private accounts, as well as the differences in the services provided to such other clients; and (c) the fee schedule of Davis Value Portfolio, including an assessment of competitive fee schedules.

DAVIS VALUE PORTFOLIO	Director Approval of Advisory Agreements – (Continued)

Reasons the Independent Directors Approved Continuation of the Advisory Agreements – (Continued)

The Independent Directors reviewed the management fee schedule for Davis Value Portfolio and the profitability of the Fund to Davis Advisors, the extent to which economies of scale might be realized if the Fund’s net assets increased, and whether the fixed fee schedule reflected those potential economies of scale. The Independent Directors considered the nature, quality and extent of the services being provided to the Fund and the costs incurred by Davis Advisors in providing such services. The Independent Directors considered various potential benefits that Davis Advisors may receive in connection with the services it provides under the Advisory Agreements with the Fund, including a review of portfolio brokerage practices. The Independent Directors noted that Davis Advisors does not use client commissions to pay for publications that are available to the general public or for third-party research services.

The Independent Directors noted that Davis Value Portfolio had under-performed its benchmark, the Standard & Poor’s 500^® Index, over the one-, three-, and five-year time periods ended February 28, 2009. A report produced by an independent service provider indicated that the Fund under-performed its peer group over the one- and three-year time periods and out-performed over the five-year time period, all ended December 31, 2008. The Independent Directors noted the Fund’s strong performance versus both the S&P 500^® Index and its peer group for 4 of the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

Approval of Advisory Arrangements

The Independent Directors concluded that Davis Advisors had provided Davis Value Portfolio and their shareholders a reasonable level of both investment and non-investment services. The Independent Directors further concluded that shareholders have received a significant benefit from Davis Advisors’ shareholder-oriented approach, as well as the execution of its investment discipline.

The Independent Directors determined that the advisory fee for Davis Value Portfolio was reasonable in light of the nature, quality and extent of the services being provided to the Fund, the costs incurred by Davis Advisors in providing such service, and in comparison to the range of the average advisory fees of its peer group as determined by an independent service provider. The Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements is in the best interest of the Fund and its shareholders. The Independent Directors and the full Board of Directors therefore voted to continue the Advisory Agreements.

Important Developments Following Approval of the Advisory Agreement

In the June 2009 Board of Directors’ meeting Davis Advisors notified the Directors that it was voluntarily reducing the Fund’s management fee by reducing the fixed fee of 75 basis points to a fixed fee of 55 basis points effective July 1, 2009.

DAVIS VALUE PORTFOLIO	Directors and Officers

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Independent Directors


Marc P. Blum (09/09/42)	Director	Director since 1986	Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).	13	Director, Legg Mason Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).

John S. Gates, Jr. (08/02/53)	Director	Director since 2007	Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of Centerpoint Properties Trust (a REIT); former Co-chairman and Chief Executive Officer for 22 years (until 2006).	13	Director, DCT Industrial Trust (a REIT).

Thomas S. Gayner (12/16/61)	Director	Director since 2004	Executive Vice President and Chief Investment Officer, Markel Corporation (insurance company).	13	Director, First Market Bank; Director, Washington Post Co. (newspaper publisher); Director, Colfax Corp. (engineering and manufacturer of pumps and fluid handling equipment).

G. Bernard Hamilton (03/18/37)	Director	Director since 1978	Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.	13	none

Samuel H. Iapalucci (07/19/52)	Director	Director since 2006	Former Executive Vice President and Chief Financial Officer, CH2M-Hill, Inc. (engineering).	13	none

Robert P. Morgenthau (03/22/57)	Director	Director since 2002	Chairman, NorthRoad Capital Management, LLC (an investment management firm) since June 2002.	13	none

Christian R. Sonne (05/06/36)	Director	Director since 1990	General Partner, Tuxedo Park Associates (land holding and development firm).	13	none

Marsha Williams (03/28/51)	Director	Director since 1999	Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider) since 2007; former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (a REIT).	13	Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering); Director, Fifth Third Bancorp (diversified financial services).

DAVIS VALUE PORTFOLIO	Directors and Officers – (Continued)

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Inside Directors*


Jeremy H. Biggs (08/16/35)	Director/ Chairman	Director since 1994	Vice Chairman, Member of the Audit Committee and Member of the International Investment Committee, former Chief Investment Officer (1980 through 2005), all for Fiduciary Trust Company International (money management firm); Consultant to Davis Selected Advisers, L.P.	13	none

Christopher C. Davis (07/13/65)	Director	Director since 1997	President or Vice President of each Davis Fund, Selected Fund, and Clipper Fund; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser, including sole member of the Adviser’s general partner, Davis Investments, LLC; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).	10	Director, Davis New York Venture Fund, Inc. (consisting of four portfolios); Director, the Selected Funds (consisting of three portfolios) since 1998; Director, Washington Post Co. (newspaper publisher).

* Jeremy H. Biggs 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.

DAVIS VALUE PORTFOLIO	Directors and Officers – (Continued)

Officers

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

DAVIS VALUE PORTFOLIO

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
Boston Financial Data Services, Inc.
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406

Custodian
State Street Bank and Trust Co.
One Lincoln Street
Boston, Massachusetts 02111

Counsel
Seyfarth Shaw LLP
131 South Dearborn Street, Suite 2400
Chicago, Illinois 60603-5577

Independent Registered Public Accounting Firm
KPMG LLP
707 Seventeenth Street, Suite 2700
Denver, Colorado 80202

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.

DAVIS FINANCIAL PORTFOLIO

Table of Contents

Management’s Discussion and Analysis	2

Fund Overview	4

Expense Example	5

Schedule of Investments	6

Statement of Assets and Liabilities	9

Statement of Operations	10

Statements of Changes in Net Assets	11

Notes to Financial Statements	12

Financial Highlights	17

Fund Information	18

Director Approval of Advisory Agreements	19

Directors and Officers	21

DAVIS FINANCIAL PORTFOLIO

Management’s Discussion and Analysis

Performance Overview

Davis Financial Portfolio delivered a return on net asset value of 12.78% for the six-month period ended June 30, 2009¹. Over the same time period, the Standard & Poor’s 500^® Index² (“Index”) returned 3.16%. Financial companies as a whole turned in a negative performance as the sector³ lost value for the Index. The Index’s banking and insurance industry groups turned in negative performances, while the diversified financial industry group turned in a positive performance.

Factors Impacting the Portfolio’s Performance

The specific financial companies which the Portfolio owned out-performed the majority of financial companies in the Index (up 14% versus down 3% for the Index). The Portfolio’s non-financial holdings overall contributed⁴ positively to performance.

The Portfolio’s diversified financial companies out-performed the corresponding industry group within the Index (up 20% versus up 11% for the Index) and were the largest contributors to performance. Goldman Sachs⁵, American Express, Moody’s, and Julius Baer were among the most important contributors to performance, while JPMorgan Chase and Bank of America were among the most important detractors from performance.

The Portfolio’s banking companies out-performed the corresponding industry group within the Index (up 32% versus down 21% for the Index). Wells Fargo and State Bank of India were among the most important contributors to performance.

The Portfolio’s insurance companies out-performed the corresponding industry group within the Index (basically flat versus down 11% for the Index). Transatlantic Holdings and China Life Insurance were among the most important contributors to performance. FPIC Insurance Group, American International Group, Markel, Loews, ACE Ltd., and Everest Re Group were among the most important detractors from performance. The Portfolio no longer owns American International Group.

The Portfolio ended the six-month period with approximately 22% of its net assets invested in foreign companies. As a whole these companies out-performed the domestic companies held by the Portfolio.

DAVIS FINANCIAL PORTFOLIO

Management’s Discussion and Analysis – (Continued)

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

Davis Financial Portfolio’s investment objective is long-term growth of capital. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Financial Portfolio are: (1) market risk, (2) company risk, (3) concentrated financial services portfolio risk, (4) foreign country risk, (5) headline risk, and (6) selection 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 portfolio that does not concentrate its investments in a particular sector. The Portfolio’s investment performance, both good and bad, is expected to reflect the economic performance of the financial sector more than a portfolio that does not concentrate its portfolio.

¹ Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary, so that when redeemed, an investor’s shares may be worth more or less than when purchased. The total annualized operating expense ratio for the six months ended June 30, 2009 was 0.91%. Below are the average annual total returns for the periods ended June 30, 2009:

			PORTFOLIO'S
			INCEPTION
	1-YEAR	5-YEAR	(July 1, 1999)
Davis Financial Portfolio*	(23.81)%	(4.82)%	(0.36)%
Standard & Poor’s 500^® Index	(26.21)%	(2.24)%	(2.28)%

³ The companies included in the Standard & Poor’s 500^® Index are divided into ten sectors. One or more industry groups make up a sector.

⁵This Management Discussion and Analysis 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 or sell any particular security. The Schedule of Investments lists the Portfolio’s holdings of each company discussed.

Shares of the Davis Financial Portfolio 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.

DAVIS FINANCIAL PORTFOLIO	Fund Overview
	At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund’s Net Assets)		(% of Stock Holdings)

			Fund	S&P 500^®
Common Stock (U.S.)	71.24%	Diversified Financials	42.11%	7.41%
Common Stock (Foreign)	22.21%	Insurance	33.83%	2.35%
Short Term Investments	6.80%	Banks	12.24%	2.83%
Other Assets & Liabilities	(0.25)%	Energy	4.69%	12.42%
	100.00%	Commercial & Professional Services	3.47%	0.71%
		Materials	2.45%	3.23%
		Consumer Services	1.21%	1.76%
		Information Technology	–	18.40%
		Health Care	–	13.97%
		Other	–	36.92%
			100.00%	100.00%

Top 10 Holdings

(% of Fund’s Net Assets)


Transatlantic Holdings, Inc.	Reinsurance	8.15%
American Express Co.	Consumer Finance	6.11%
Wells Fargo & Co.	Commercial Banks	5.75%
Loews Corp.	Multi-line Insurance	5.44%
Julius Baer Holding AG	Capital Markets	4.87%
Bank of New York Mellon Corp.	Capital Markets	4.86%
State Bank of India Ltd., GDR	Commercial Banks	4.83%
Goldman Sachs Group, Inc.	Capital Markets	4.83%
Canadian Natural Resources Ltd.	Energy	4.38%
Moody’s Corp.	Diversified Financial Services	4.29%

DAVIS FINANCIAL PORTFOLIO	Expense Example (Unaudited)

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 June 30, 2009. 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 have been higher.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	(01/01/09)	(06/30/09)	(01/01/09-06/30/09)

Actual	$1,000.00	$1,127.81	$4.80
Hypothetical	$1,000.00	$1,020.28	$4.56

Hypothetical assumes 5% annual return before expenses.

*Expenses are equal to the Fund’s annualized operating expense ratio (0.91%**), multiplied by the average account valueover the period, multiplied by 181/365 (to reflect the one-half year period).

** The expense ratio reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.

DAVIS FINANCIAL PORTFOLIO	Schedule of Investments
	June 30, 2009(Unaudited)

Shares						Security			Value (Note 1)
COMMON STOCK - (93.45%)
	Consumer Discretionary - (1.13%)
		Consumer Services – (1.13%)
	49,000			H&R Block, Inc.			$	844,270

					TOTAL CONSUMER DISCRETIONARY			844,270

	Energy - (4.38%)
	62,500			Canadian Natural Resources Ltd. (Canada)				3,280,625

					TOTAL ENERGY			3,280,625

	Financials - (82.41%)
		Banks – (11.43%)
			Commercial Banks – (11.43%)
	21,600			ICICI Bank Ltd., ADR (India)				637,200
	50,948			State Bank of India Ltd., GDR (India)				3,617,308
	177,500			Wells Fargo & Co.				4,306,150

								8,560,658

		Diversified Financials – (39.36%)
			Capital Markets – (20.23%)
	60,460			Ameriprise Financial, Inc.				1,467,364
	124,100			Bank of New York Mellon Corp.				3,637,371
	124,300			Brookfield Asset Management Inc., Class A (Canada)				2,121,801
	20,100			Charles Schwab Corp.				352,454
	24,520			Goldman Sachs Group, Inc.				3,615,229
	93,910			Julius Baer Holding AG (Switzerland)				3,645,597
	7,260			T. Rowe Price Group Inc.				302,597

								15,142,413

			Consumer Finance – (6.63%)
	196,700			American Express Co.				4,571,308
	194,994			First Marblehead Corp. *				393,888

								4,965,196

			Diversified Financial Services – (12.50%)
	14,486			Bank of America Corp.				191,215
	25,700			Cia Brasileira de Meios de Pagamento SA (Visanet) (Brazil)*				220,998
	23,748			JPMorgan Chase & Co.				810,044
	122,000			Moody's Corp.				3,214,700
	126,700			Oaktree Capital Group LLC, Class A (a)				2,724,050
	62,000			RHJ International (Belgium)*				395,744
	28,900			Visa Inc., Class A				1,799,314

								9,356,065

								29,463,674

		Insurance – (31.62%)
			Life & Health Insurance – (3.62%)
	48,833			China Life Insurance Co., Ltd., ADR (China)				2,707,301

			Multi-line Insurance – (5.44%)
	148,600			Loews Corp.				4,071,640

			Property & Casualty Insurance – (11.17%)
	31,200			ACE Ltd.				1,379,976
	24,800			FPIC Insurance Group, Inc. *				759,624
	11,200			Markel Corp. *				3,155,040
	203,300			Progressive Corp. (Ohio) *				3,071,863

								8,366,503

DAVIS FINANCIAL PORTFOLIO	Schedule of Investments - (Continued)
	June 30, 2009(Unaudited)

Shares/Principal

Security

Value
(Note 1)

Common Stock - (Continued)

Financials - (Continued)

Insurance – (Continued)

Reinsurance – (11.39%)

33,900

Everest Re Group, Ltd.

2,426,223

140,737

Transatlantic Holdings, Inc.

6,098,134

8,524,357

23,669,801

TOTAL FINANCIALS

61,694,133

Industrials - (3.24%)

Commercial & Professional Services – (3.24%)

29,900

D&B Corp.

2,428,179

TOTAL INDUSTRIALS

2,428,179

Materials - (2.29%)

92,800

Sealed Air Corp.

1,712,160

TOTAL MATERIALS

1,712,160

TOTAL COMMON STOCK – (Identified cost $72,315,902)

69,959,367

SHORT TERM INVESTMENTS - (6.80%)

1,570,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $1,570,003

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $1,601,400)

1,570,000

1,006,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $1,006,001

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $1,026,120)

1,006,000

2,516,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $2,516,008

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $2,566,320)

2,516,000

TOTAL SHORT TERM INVESTMENTS – (Identified cost $5,092,000)

5,092,000

Total Investments – (100.25%) – (Identified cost $77,407,902) – (b)

75,051,367

Liabilities Less Other Assets – (0.25%)

(186,203)

Net Assets – (100.00%)

74,865,164

ADR: American Depositary Receipt

GDR: Global Depositary Receipt

Non-Income producing security.

(a)

Illiquid Security – See Note 7 of the Notes to Financial Statements.

DAVIS FINANCIAL PORTFOLIO	Schedule of Investments - (Continued)
	June 30, 2009(Unaudited)

	(b)	Aggregate cost for federal income tax purposes is $77,529,817. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:
			Unrealized appreciation		$	10,419,731
			Unrealized depreciation			(12,898,181)

				Net unrealized depreciation	$	(2,478,450)


See Notes to Financial Statements

DAVIS FINANCIAL PORTFOLIO	Statement of Assets and Liabilities
	At June 30, 2009 (Unaudited)

ASSETS:
Investments in securities at value* (see accompanying Schedule of Investments)			$	75,051,367
Cash				170,484
Receivables:
	Capital stock sold			50
	Dividends and interest			147,520
Prepaid expenses				3,749
		Total assets		75,373,170
LIABILITIES:
Payables:
	Investment securities purchased			198,850
	Capital stock redeemed			239,343
Accrued management fee				51,276
Other accrued expenses				18,537
		Total liabilities		508,006
NET ASSETS			$	74,865,164
SHARES OUTSTANDING				9,327,312
NET ASSET VALUE, offering, and redemption price per share (Net assets ÷ Shares outstanding)			$	8.03
NET ASSETS CONSIST OF:
Par value of shares of capital stock			$	9,327
Additional paid-in capital				89,419,167
Undistributed net investment income				932,797
Accumulated net realized losses from investments and foreign currency transactions				(13,141,495)
Net unrealized depreciation on investments and foreign currency transactions				(2,354,632)
		Net Assets	$	74,865,164

*Including:
	Cost of investments		$	77,407,902


See Notes to Financial Statements

DAVIS FINANCIAL PORTFOLIO	Statement of Operations
	For the six months ended June 30, 2009 (Unaudited)

INVESTMENT INCOME:
Income:
		Dividends*					$	592,742
		Interest						5,423
			Total income					598,165

Expenses:
		Management fees (Note 3)			$	226,394
		Custodian fees				11,164
		Transfer agent fees				4,469
		Audit fees				9,000
		Legal fees				1,378
		Accounting fees (Note 3)				1,002
		Reports to shareholders				8,957
		Directors’ fees and expenses				10,165
		Registration and filing fees				38
		Miscellaneous				3,531
			Total expenses					276,098
				Net investment income				322,067

REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
		Investment transactions						(7,872,009)
		Foreign currency transactions						(1,552)
Net decrease in unrealized depreciation								15,810,525
	Net realized and unrealized gain on investments and foreign currency transactions							7,936,964
		Net increase in net assets resulting from operations					$	8,259,031

*Net of foreign taxes withheld as follows							$	13,162

See Notes to Financial Statements

DAVIS FINANCIAL PORTFOLIO

Statements of Changes in Net Assets

			Six months ended		Year ended
			June 30, 2009 (Unaudited)		December 31, 2008
OPERATIONS:
	Net investment income	$	322,067	$	630,375
	Net realized loss from investments and foreign currency transactions		(7,873,561)		(5,207,088)
	Net change in appreciation (depreciation) on investments and foreign currency transactions		15,810,525		(46,773,677)
	Net increase (decrease) in net assets resulting from operations		8,259,031		(51,350,390)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
	Realized gains from investment transactions		–		(3,340,762)

CAPITAL SHARE TRANSACTIONS:
	Net increase (decrease) in net assets resulting from capital share transactions (Note 5)		9,285,380		(4,713,395)
Total increase (decrease) in net assets			17,544,411		(59,404,547)

NET ASSETS:
	Beginning of period		57,320,753		116,725,300
	End of period*	$	74,865,164	$	57,320,753

*Including undistributed net investment income of		$	932,797	$	610,730

See Notes to Financial Statements

DAVIS FINANCIAL PORTFOLIO	Notes to Financial Statements
	June 30, 2009 (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation), which is registered under the Investment Company Act of 1940 as amended, as diversified, open-end management investment companies. Insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may only purchase shares of the Fund. The following is a summary of significant accounting policies followed by the Fund in the preparation of financial statements.

Security Valuation - 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) are valued at the last reported sales price on the day of valuation. Securities traded in the over-the-counter market (e.g. NASDAQ) and listed securities for which no sale was reported on that date are stated at the average of closing bid and asked prices. 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 are valued at their fair value. Securities whose values have been materially affected by what Davis Selected Advisers, L.P. (“Davis Advisors” or “Adviser”), the Fund’s investment 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. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Directors. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. These valuation procedures are reviewed and subject to approval by the Board of Directors.

Level 1 –

quoted prices in active markets for identical securities

Level 2 –

other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 –

significant unobservable inputs (including Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

DAVIS FINANCIAL PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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

Fair Value Measurements – (Continued)

The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund’s investments carried at value:

	Investments in Securities at Value
	Valuation Inputs
			Level 2		Level 3
			Other Significant		Significant
	Level 1		Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
Equity securities:
Consumer discretionary	$	844,270	$	–	$	–	$	844,270
Energy		3,280,625		–		–		3,280,625
Financials		58,970,083		2,724,050		–		61,694,133
Industrials		2,428,179		–		–		2,428,179
Materials		1,712,160		–		–		1,712,160
Short-term securities		–		5,092,000		–		5,092,000
Total	$	67,235,317	$	7,816,050	$	–	$	75,051,367

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 securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books, and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sale of investments together with market gains and losses on such investments in the Statement of Operations.

DAVIS FINANCIAL PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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 has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2009, no provision for income tax would be required in the Fund’s financial statements. The Fund’s federal and state (Arizona and Maryland) 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 departments of revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2005. At June 30, 2009 the Fund had approximately $407,000 of post October 2008 losses available to offset future capital gains, if any, which expire in 2017. At June 30, 2009 the Fund had available for federal income tax purposes unused capital loss carryforward of $4,739,000 that expire in 2016.

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 may differ for financial statement and tax purposes primarily due to differing treatments of wash sales, foreign currency transactions, and partnership income. 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 the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations.

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.

NOTE 2 - PURCHASES AND SALES OF SECURITIES

Purchases and sales of investment securities (excluding short-term securities) for the six months ended June 30, 2009 were $12,209,875 and $3,126,997, respectively.

DAVIS FINANCIAL PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

Advisory fees were paid monthly to the Adviser at an annual rate of 0.75% of the Fund’s average net assets. Effective July 1, 2009, the annual rate is 0.55% of the Fund’s average net assets.

NOTE 4 - EXPENSES PAID INDIRECTLY

NOTE 5 - CAPITAL STOCK

At June 30, 2009, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

	Six months ended			Year ended
	June 30, 2009 (Unaudited)			December 31, 2008
	Shares		Amount	Shares		Amount
Shares sold	2,028,219	$	14,542,606	2,481,240	$	26,265,738
Shares issued in reinvestment
of distributions	–		–	531,968		3,340,762
	2,028,219		14,542,606	3,013,208		29,606,500
Shares redeemed	(748,907)		(5,257,226)	(3,147,595)		(34,319,895)
Net increase (decrease)	1,279,312	$	9,285,380	(134,387)	$	(4,713,395)

NOTE 6 - BANK BORROWINGS

DAVIS FINANCIAL PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

NOTE 7 - ILLIQUID SECURITIES

Security

Acquisition

Date

Principal

Cost per

Valuation per Share as of

June 30, 2009

Oaktree Capital Group LLC,

Class A

05/21/07

126,700

23.84

21.50

DAVIS FINANCIAL PORTFOLIO

Financial Highlights

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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	7.12		$	14.27		$	16.29		$	13.83		$	12.82		$	11.66

Income (Loss) from Investment Operations:
	Net Investment Income				0.02			0.08			0.17			0.09			0.07			0.04
	Net Realized and Unrealized Gains (Losses)				0.89			(6.76)			(1.12)			2.47			1.00			1.16
		Total from Investment Operations			0.91			(6.68)			(0.95)			2.56			1.07			1.20

Dividends and Distributions:
	Dividends from Net Investment Income				–			–			(0.17)			(0.09)			(0.06)			(0.04)
	Distributions from Realized Gains				–			(0.47)			(0.90)			(0.01)			–			–
		Total Dividends and Distributions			–			(0.47)			(1.07)			(0.10)			(0.06)			(0.04)
Net Asset Value, End of Period					$	8.03		$	7.12		$	14.27		$	16.29		$	13.83		$	12.82

Total Return^a					12.78		%^b	(46.36)		%	(6.05)		%	18.50		%	8.38		%	10.32		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	74,865		$	57,321		$	116,725		$	155,807		$	124,060		$	109,274
	Ratio of Expenses to Average Net Assets:
		Gross			0.91		%^c	0.88		%	0.85		%	0.84		%	0.85		%	0.85		%
		Net^d			0.91		%^c	0.88		%	0.85		%	0.84		%	0.85		%	0.85		%
Ratio of Net Investment Income to Average Net Assets					1.07		%^c	0.73		%	0.97		%	0.66		%	0.52		%	0.40		%
Portfolio Turnover Rate^e					6		%	16		%	17		%	9		%	21		%	6		%

a			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company’s separate account. Inclusion of these charges would reduce the total returns shown.
b			Davis Financial Portfolio received a favorable class action settlement from a company that 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.
c			Annualized.
d			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
e			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

DAVIS FINANCIAL PORTFOLIO

Fund Information

Portfolio Proxy Voting Policies and Procedures

Form N-Q

DAVIS FINANCIAL PORTFOLIO

Director Approval of Advisory Agreements

Process of Annual Review

The Board of Directors of the Davis Funds oversees the management of each Davis Fund and, as required by law, determines annually whether to approve the continuance of each Davis Fund’s advisory agreement with Davis Selected Advisers, L.P. and sub-advisory agreement with Davis Selected Advisers-NY, Inc. (jointly “Davis Advisors” and “Advisory Agreements”).

Reasons the Independent Directors Approved Continuation of the Advisory Agreements

The Independent Directors considered not only the investment performance of the Fund, but also the full range and quality of services provided by Davis Advisors to the Fund and its shareholders, including whether it:

Achieves satisfactory investment results over the long-term after all costs;

Fosters healthy investor behavior.

Davis Advisors is reimbursed a portion of its costs in providing some, but not all, of these services.

The Independent Directors expect Davis Advisors to employ a disciplined, company-specific, research-driven, businesslike, long-term investment philosophy.

The Independent Directors reviewed (a) comparative fee and expense information for other funds, as selected and analyzed by a nationally recognized independent service provider; (b) information regarding fees charged by Davis Advisors to other advisory clients, including funds which it sub-advises and private accounts, as well as the differences in the services provided to such other clients; and (c) the fee schedule of Davis Financial Portfolio, including an assessment of competitive fee schedules.

DAVIS FINANCIAL PORTFOLIO

Director Approval of Advisory Agreements – (Continued)

Reasons the Independent Directors Approved Continuation of the Advisory Agreements – (Continued)

The Independent Directors reviewed the management fee schedule for the Fund and the profitability of the Fund to Davis Advisors, the extent to which economies of scale might be realized if the Fund’s net assets increased, and whether the fixed fee schedule reflected those potential economies of scale. The Independent Directors considered the nature, quality and extent of the services being provided to the Fund and the costs incurred by Davis Advisors in providing such services. The Independent Directors considered various potential benefits that Davis Advisors may receive in connection with the services it provides under the Advisory Agreements with the Fund, including a review of portfolio brokerage practices. The Independent Directors noted that Davis Advisors does not use client commissions to pay for publications that are available to the general public or for third-party research services.

The Independent Directors noted that Davis Financial Portfolio had under-performed its benchmark, the Standard & Poor’s 500^® Index, over the one-, three-, and five-year time periods ended February 28, 2009. A report produced by an independent service provider indicated that the Fund out-performed its peer group over the one-, three-, and five-year time periods ended December 31, 2008. The Independent Directors noted the Fund’s strong performance versus its peer group for the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

Approval of Advisory Agreements

The Independent Directors concluded that Davis Advisors had provided Davis Financial Portfolio and its shareholders a reasonable level of both investment and non-investment services. The Independent Directors further concluded that shareholders have received a significant benefit from Davis Advisors’ shareholder-oriented approach, as well as the execution of its investment discipline.

The Independent Directors determined that the advisory fee for Davis Financial Portfolio was reasonable in light of the nature, quality and extent of the services being provided to the Fund, the costs incurred by Davis Advisors in providing such service, and in comparison to the range of the average advisory fees of its peer group as determined by an independent service provider. The Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements is in the best interest of the Fund and its shareholders. The Independent Directors and the full Board of Directors therefore voted to continue the Advisory Agreements.

Important Developments Following Approval of the Advisory Agreement

DAVIS FINANCIAL PORTFOLIO

Directors and Officers

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Independent Directors


Marc P. Blum (09/09/42)	Director	Director since 1986	Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).	13	Director, Legg Mason Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).

John S. Gates, Jr. (08/02/53)	Director	Director since 2007	Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of Centerpoint Properties Trust (a REIT); former Co-chairman and Chief Executive Officer for 22 years (until 2006).	13	Director, DCT Industrial Trust (a REIT).

Thomas S. Gayner (12/16/61)	Director	Director since 2004	Executive Vice President and Chief Investment Officer, Markel Corporation (insurance company).	13	Director, First Market Bank; Director, Washington Post Co. (newspaper publisher); Director, Colfax Corp. (engineering and manufacturer of pumps and fluid handling equipment).

G. Bernard Hamilton (03/18/37)	Director	Director since 1978	Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.	13	none

Samuel H. Iapalucci (07/19/52)	Director	Director since 2006	Former Executive Vice President and Chief Financial Officer, CH2M-Hill, Inc. (engineering).	13	none

Robert P. Morgenthau (03/22/57)	Director	Director since 2002	Chairman, NorthRoad Capital Management, LLC (an investment management firm) since June 2002.	13	none

Christian R. Sonne (05/06/36)	Director	Director since 1990	General Partner, Tuxedo Park Associates (land holding and development firm).	13	none

Marsha Williams (03/28/51)	Director	Director since 1999	Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider) since 2007, former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (a REIT).	13	Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering); Director, Fifth Third Bancorp (diversified financial services).

DAVIS FINANCIAL PORTFOLIO

Directors and Officers – (Continued)

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Inside Directors*


Jeremy H. Biggs (08/16/35)	Director/ Chairman	Director since 1994	Vice Chairman, Member of the Audit Committee and Member of the International Investment Committee, former Chief Investment Officer (1980 through 2005), all for Fiduciary Trust Company International (money management firm); Consultant to Davis Selected Advisers, L.P.	13	none

Christopher C. Davis (07/13/65)	Director	Director since 1997	President or Vice President of each Davis Fund, Selected Fund, and Clipper Fund; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser, including sole member of the Adviser’s general partner, Davis Investments, LLC; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).	10	Director, Davis New York Venture Fund, Inc. (consisting of four portfolios); Director, the Selected Funds (consisting of three portfolios) since 1998; Director, Washington Post Co. (newspaper publisher).

DAVIS FINANCIAL PORTFOLIO

Directors and Officers – (Continued)

Officers

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

DAVIS FINANCIAL PORTFOLIO

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
Boston Financial Data Services, Inc.
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406

Custodian
State Street Bank and Trust Co.
One Lincoln Street
Boston, Massachusetts 02111

Counsel
Seyfarth Shaw LLP
131 South Dearborn Street, Suite 2400
Chicago, Illinois 60603-5577

Independent Registered Public Accounting Firm
KPMG LLP
707 Seventeenth Street, Suite 2700
Denver, Colorado 80202

For more information about Davis Financial Portfolio, including management fee, charges, and expenses, see the current Davis Variable Account Fund, Inc. (including Davis Financial Portfolio) 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.

Davis Real Estate Portfolio

Table of Contents

Management’s Discussion and Analysis	2

Fund Overview	4

Expense Example	5

Schedule of Investments	6

Statement of Assets and Liabilities	9

Statement of Operations	10

Statements of Changes in Net Assets	11

Notes to Financial Statements	12

Financial Highlights	16

Fund Information	17

Director Approval of Advisory Agreements	18

Directors and Officers	20

DAVIS REAL ESTATE PORTFOLIO

Management’s Discussion and Analysis

Performance Overview

Davis Real Estate Portfolio delivered a negative return on net asset value of 5.92% for the six-month period ended June 30, 2009¹. Over the same time period, the Wilshire U.S. Real Estate Securities Index² (“Index”) declined 12.75%. Six of the seven sub-industries³ within the Index delivered negative returns, with industrial REITs, diversified REITs, and residential REITs turning in the weakest performance. Only the real estate operating companies sub-industry delivered positive returns.

Factors Impacting the Portfolio’s Performance

Retail REITs were the most important contributors⁴ to performance. The Portfolio’s retail REITs out-performed the corresponding sub-industry within the Index (up 4% versus down 13% for the Index). Simon Property Group⁵ and General Growth Properties were among the most important contributors to performance. The Portfolio no longer owns Simon Property Group or General Growth Properties.

The Portfolio’s office REITs out-performed the corresponding sub-industry within the Index (down 10% versus down 12% for the Index), but were still the largest detractors from performance. SL Green and Digital Realty were among the most important contributors to performance. Alexandria Real Estate, Douglas Emmett, Derwent London, and Boston Properties were among the most important detractors from performance. The Portfolio no longer owns Derwent London.

Industrial REITs were important detractors from performance. The Portfolio’s industrial REITs under-performed the corresponding sub-industry within the Index (down 32% versus down 23% for the Index). Brixton was among the most important detractors from performance. The Portfolio no longer owns Brixton.

Diversified REITs were also important detractors from performance. The Portfolio’s diversified REITs under-performed the corresponding sub-industry within the Index (down 34% versus down 16% for the Index). The Portfolio had a lower relative average weighting (5% versus 9% for the Index) in this weakly performing sub-industry. Cousins Properties was among the most important detractors from performance.

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

Davis Real Estate Portfolio’s investment objective is total return through a combination of growth and income. There can be no assurance that the Portfolio will achieve its objective. The primary risks of an investment in Davis Real Estate Portfolio are: (1) market risk, (2) company risk, (3) concentrated real estate portfolio risk, (4) focused portfolio risk, (5) small- and medium-capitalization risk, (6) foreign country risk, (7) headline risk, and (8) selection 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 portfolio that does not concentrate its investments in a particular sector. The Portfolio’s investment performance, both good and bad, is expected to reflect the economic performance of the real estate sector much more than a portfolio that does not concentrate its portfolio.

DAVIS REAL ESTATE PORTFOLIO

Management’s Discussion and Analysis – (Continued)

Davis Real Estate 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 Portfolio’s portfolio in a few companies, the Portfolio’s investment performance, both good and bad, is expected to reflect the economic performance of its more focused portfolio.

¹ Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary, so that when redeemed, an investor’s shares may be worth more or less than when purchased. The total gross annualized operating expense ratio as of June 30, 2009 is 1.16% (net: 1.00%). Below are the average annual total returns for the periods ended June 30, 2009:

			SINCE PORTFOLIO'S INCEPTION
	1-YEAR	5-YEAR	(July 1, 1999)
Davis Real Estate Portfolio	(45.69)%	(4.29)%	3.70%
Wilshire U.S. Real Estate Securities Index	(45.65)%	(3.41)%	5.19%
Standard & Poor’s 500^® Index	(26.21)%	(2.24)%	(2.28)%

²	The definitions of indices quoted in this report appear below. Investments cannot be made directly in the indices.

I. 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. The Index was formerly named the “Dow Jones Wilshire Real Estate Securities Index.”

II. The Standard & Poor’s 500^® 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.

³	The companies included in the Wilshire U.S. Real Estate Securities Index are divided into seven sub-industries.

⁵ This Management Discussion and Analysis 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 or sell any particular security. The Schedule of Investments lists the Portfolio’s holdings of each company discussed.

Shares of the Davis Real Estate Portfolio 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.

DAVIS REAL ESTATE PORTFOLIO	Fund Overview
	At June 30, 2009 (Unaudited)

Portfolio Composition		Industry Weightings
(% of Fund’s Net Assets)		(% of Long Term Portfolio)

				Wilshire U.S. Real Estate Securities Index
Common Stock (U.S.)	75.10%
Common Stock (Foreign)	1.97%		Fund
Preferred Stock	7.99%	Office REITs	33.71%	16.68%
Convertible Bonds	4.28%	Residential REITs	12.24%	15.13%
Short Term Investments	9.36%	Retail REITs	10.42%	23.63%
Other Assets & Liabilities	1.30%	Industrial REITs	8.87%	6.22%
	100.00%	Specialized REITs	8.02%	26.91%
		Transportation	7.52%	–
		Real Estate Operating Companies	6.73%	2.06%
		Diversified REITs	5.24%	9.37%
		Diversified Real Estate Activities	5.04%	–
		Capital Markets	2.21%	–
			100.00%	100.00%

Top 10 Holdings

(% of Fund’s Net Assets)


American Campus Communities, Inc.	Residential REITs	7.19%
Forest City Enterprises, Inc., Class A	Real Estate Operating Companies	6.02%
Corporate Office Properties Trust	Office REITs	5.50%
Ventas, Inc.	Specialized REITs	4.89%
SL Green Realty Corp.	Office REITs	4.56%
St. Joe Co.	Diversified Real Estate Activities	4.50%
Federal Realty Investment Trust	Retail REITs	3.82%
DCT Industrial Trust Inc.	Industrial REITs	3.75%
Burlington Northern Santa Fe Corp.	Transportation	3.74%
Essex Property Trust, Inc.	Residential REITs	3.45%

DAVIS REAL ESTATE PORTFOLIO

Expense Example (Unaudited)

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 June 30, 2009. 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 have been higher.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning	Ending	Expenses Paid
	Account Value	Account Value	During Period*
	(01/01/09)	(06/30/09)	(01/01/09-06/30/09)
Actual	$1,000.00	$940.76	$4.81
Hypothetical	$1,000.00	$1,019.84	$5.01

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 valueover the period, multiplied by 181/365 (to reflect the one-half year period).

** The expense ratio reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.

DAVIS REAL ESTATE PORTFOLIO	Schedule of Investments
	June 30, 2009(Unaudited)

Shares							Security			Value (Note 1)
COMMON STOCK - (77.07%)
	Financials - (70.35%)
		Diversified Financials – (1.97%)
			Capital Markets – (1.97%)
	20,240				Brookfield Asset Management Inc., Class A (Canada)			$	345,497

		Real Estate – (68.38%)
			Real Estate Investment Trusts (REITs) – (57.86%)
				Diversified REITs – (4.68%)
	67,175				Cousins Properties, Inc.				570,987
	5,500				Vornado Realty Trust				247,665

									818,652

				Industrial REITs – (4.85%)
	10,200				AMB Property Corp.				191,862
	160,600				DCT Industrial Trust Inc.				655,248

									847,110

				Office REITs – (21.85%)
	16,700				Alexandria Real Estate Equities, Inc.				597,693
	3,700				Boston Properties, Inc.				176,490
	32,790				Corporate Office Properties Trust				961,731
	15,200				Digital Realty Trust, Inc.				544,920
	61,200				Douglas Emmett, Inc.				550,188
	5,670				Highwoods Properties, Inc.				126,838
	3,200				Kilroy Realty Corp.				65,728
	34,760				SL Green Realty Corp.				797,394

									3,820,982

				Residential REITs – (10.64%)
	56,700				American Campus Communities, Inc.				1,257,606
	9,690				Essex Property Trust, Inc.				603,009

									1,860,615

				Retail REITs – (8.68%)
	59,660				CBL & Associates Properties, Inc.				321,567
	12,950				Federal Realty Investment Trust				667,184
	19,660				Taubman Centers, Inc.				528,068

									1,516,819

				Specialized REITs – (7.16%)
	60,583				Cogdell Spencer, Inc.				259,901
	16,400				Host Hotels & Resorts Inc. *				137,596
	28,620				Ventas, Inc.				854,593

									1,252,090

									10,116,268

			Real Estate Management & Development – (10.52%)
				Diversified Real Estate Activities – (4.50%)
	29,720				St. Joe Co. *				787,283

				Real Estate Operating Companies – (6.02%)
	159,380				Forest City Enterprises, Inc., Class A *				1,051,908

									1,839,191

									11,955,459

						TOTAL FINANCIALS			12,300,956

DAVIS REAL ESTATE PORTFOLIO	Schedule of Investments - (Continued)
	June 30, 2009(Unaudited)

Shares/Principal

Security

Value
(Note 1)

Common Stock - (Continued)

Industrials - (6.72%)

Transportation – (6.72%)

22,200

Alexander & Baldwin, Inc.

520,368

8,890

Burlington Northern Santa Fe Corp.

653,771

1,174,139

TOTAL INDUSTRIALS

1,174,139

TOTAL COMMON STOCK – (Identified cost $21,098,731)

13,475,095

PREFERRED STOCK - (7.99%)

Financials - (7.99%)

Real Estate – (7.99%)

Real Estate Investment Trusts (REITs) – (7.99%)

Industrial REITs – (1.24%)

11,900

AMB Property Corp., 6.75%, Series M

215,925

Office REITs – (5.82%)

33,272

Alexandria Real Estate Equities, Inc., 7.00%, Series D, Conv. Pfd.

448,507

5,700

Digital Realty Trust, Inc., 5.50%, Series D, Cum. Conv. Pfd.

126,647

5,014

Digital Realty Trust, Inc., 8.50%, Series A

110,571

19,930

SL Green Realty Corp., 7.625%, Series C

332,084

1,017,809

Residential REITs – (0.30%)

2,000

Equity Residential, 7.00%, Series E, Cum. Conv. Pfd.

52,000

Retail REITs – (0.63%)

8,280

CBL & Associates Properties, Inc., 7.375%, Series D

110,641

TOTAL FINANCIALS

1,396,375

TOTAL PREFERRED STOCK – (Identified cost $1,072,511)

1,396,375

CONVERTIBLE BONDS - (4.28%)

Financials - (4.28%)

Real Estate – (4.28%)

Real Estate Investment Trusts (REITs) – (4.28%)

Industrial REITs – (1.84%)

401,000

Prologis, Conv. Sr. Notes, 2.25%, 04/01/37

322,805

Office REITs – (2.44%)

344,000

Digital Realty Trust, Inc., 144A Conv. Sr. Notes, 5.50%, 04/15/29 (a)

340,130

104,000

SL Green Realty Corp., 144A Conv. Sr. Notes, 3.00%, 03/30/27 (a)

86,320

426,450

TOTAL FINANCIALS

749,255

TOTAL CONVERTIBLE BONDS – (Identified cost $604,617)

749,255

SHORT TERM INVESTMENTS - (9.36%)

505,000

Banc of America Securities LLC Joint Repurchase Agreement,

0.07%, 07/01/09, dated 06/30/09, repurchase value of $505,001

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.309%-6.462%, 03/01/29-01/01/39, total market value $515,100)

505,000

DAVIS REAL ESTATE PORTFOLIO	Schedule of Investments - (Continued)
	June 30, 2009(Unaudited)

Principal

Security

Value
(Note 1)

Short Term Investments - (Continued)

323,000

Goldman, Sachs & Co. Joint Repurchase Agreement,

0.03%, 07/01/09, dated 06/30/09, repurchase value of $323,000

(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%-6.153%, 06/01/36-09/01/38, total market value $329,460)

323,000

809,000

Mizuho Securities USA Inc. Joint Repurchase Agreement,

0.11%, 07/01/09, dated 06/30/09, repurchase value of $809,002

(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-6.50%, 07/17/09-11/01/47, total market value $825,180)

809,000

TOTAL SHORT TERM INVESTMENTS – (Identified cost $1,637,000)

1,637,000

Total Investments – (98.70%) – (Identified cost $24,412,859) – (b)

17,257,725

Other Assets Less Liabilities – (1.30%)

226,889

Net Assets – (100.00%)

17,484,614

Non-Income producing security.

(a)

(b)

Aggregate cost for federal income tax purposes is $24,427,928. At June 30, 2009 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:

Unrealized appreciation

634,290

Unrealized depreciation

(7,804,493)

Net unrealized depreciation

(7,170,203)

See Notes to Financial Statements

DAVIS REAL ESTATE PORTFOLIO	Statement of Assets and Liabilities
	At June 30, 2009 (Unaudited)

ASSETS:
Investments in securities at value* (see accompanying Schedule of Investments)			$	17,257,725
Cash				4,335
Receivables:
	Capital stock sold			4,880
	Dividends and interest			99,449
	Investment securities sold			157,703
Prepaid expenses				1,611
Due from Adviser				2,100
		Total assets		17,527,803
LIABILITIES:
Payables:
	Capital stock redeemed			11,494
Accrued audit fees				7,600
Accrued custodian fees				3,400
Accrued management fee				13,950
Other accrued expenses				6,745
		Total liabilities		43,189
NET ASSETS			$	17,484,614
SHARES OUTSTANDING				3,255,734
NET ASSET VALUE, offering, and redemption price per share (Net assets ÷ Shares outstanding)			$	5.37
NET ASSETS CONSIST OF:
Par value of shares of capital stock			$	3,256
Additional paid-in capital				38,519,960
Undistributed net investment income				153,918
Accumulated net realized losses from investments and foreign currency transactions				(14,037,127)
Net unrealized depreciation on investments and foreign currency transactions				(7,155,393)
		Net Assets	$	17,484,614

*Including:
	Cost of investments		$	24,412,859


See Notes to Financial Statements

DAVIS REAL ESTATE PORTFOLIO	Statement of Operations
	For the six months ended June 30, 2009 (Unaudited)

INVESTMENT INCOME:
Income:
		Dividends*						$		421,886
		Interest								13,353
			Total income							435,239

Expenses:
		Management fees (Note 3)				$	59,686
		Custodian fees					10,976
		Transfer agent fees					3,156
		Audit fees					9,000
		Legal fees					385
		Accounting fees (Note 3)					1,002
		Reports to shareholders					2,250
		Directors’ fees and expenses					2,396
		Registration and filing fees					12
		Miscellaneous					3,109
			Total expenses						91,972
			Reimbursement of expenses by Adviser (Note 3)						(12,400)
				Net expenses					79,572
					Net investment income				355,667

REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
		Investment transactions								(11,134,670)
		Foreign currency transactions								(1,820)
Net decrease in unrealized depreciation										9,398,545
	Net realized and unrealized loss on investments and foreign currency transactions									(1,737,945)
		Net decrease in net assets resulting from operations						$		(1,382,278)

*Net of foreign taxes withheld as follows								$		1,291

See Notes to Financial Statements

DAVIS REAL ESTATE PORTFOLIO

Statements of Changes in Net Assets

			Six months ended		Year ended
			June 30, 2009 (Unaudited)		December 31, 2008
OPERATIONS:
	Net investment income	$	355,667	$	654,938
	Net realized loss from investments and foreign currency transactions		(11,136,490)		(2,901,263)
	Net increase (decrease) in unrealized depreciation on investments and foreign currency transactions		9,398,545		(16,471,893)
	Net decrease in net assets resulting from operations		(1,382,278)		(18,718,218)

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
	Net investment income		(201,749)		(804,817)
	Realized gains from investment transactions		–		(368,670)
	Return of capital		–		(28,370)

CAPITAL SHARE TRANSACTIONS:
	Net decrease in net assets resulting from capital share transactions (Note 5)		(262,768)		(10,296,476)
Total decrease in net assets			(1,846,795)		(30,216,551)

NET ASSETS:
	Beginning of period		19,331,409		49,547,960
	End of period*	$	17,484,614	$	19,331,409

*Including undistributed net investment income of		$	153,918	$	–

See Notes to Financial Statements

DAVIS REAL ESTATE PORTFOLIO	Notes to Financial Statements
	June 30, 2009 (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Fund is a separate series of Davis Variable Account Fund, Inc. (a Maryland corporation), which is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. Insurance companies, for the purpose of funding variable annuity or variable life insurance contracts, may only purchase shares of the Fund. The following is a summary of significant accounting policies followed by the Fund in the preparation of financial statements.

Level 1 –

quoted prices in active markets for identical securities

Level 2 –

other significant observable inputs (including quoted prices for similar investments, interest rates,

prepayment speeds, credit risk, etc.)

Level 3 –

significant unobservable inputs (including Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2009 in valuing the Fund’s investments carried at value:

	Investments in Securities at Value
	Valuation Inputs
			Level 2		Level 3
			Other Significant		Significant
	Level 1		Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
Equity securities:
Financials	$	13,122,177	$	575,154	$	–	$	13,697,331
Industrials		1,174,139		–		–		1,174,139
Convertible debt securities		–		749,255		–		749,255
Short-term securities		–		1,637,000		–		1,637,000
Total	$	14,296,316	$	2,961,409	$	–	$	17,257,725

DAVIS REAL ESTATE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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

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 securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books, and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. The Fund includes foreign currency gains and losses realized on the sale 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 has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2009, no provision for income tax would be required in the Fund’s financial statements. The Fund’s federal and state (Arizona and Maryland) 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 departments of revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2005. At June 30, 2009 the Fund had post October 2008 losses of $290,000 available to offset future capital gains, if any, which expire in 2017. The Fund also has available for federal income tax purposes unused capital loss carryfoward of $2,585,000 that expire in 2016.

DAVIS REAL ESTATE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

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

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 may differ for financial statement and tax purposes primarily due to differing treatments of wash sales 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 the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations.

NOTE 2 - PURCHASES AND SALES OF SECURITIES

Purchases and sales of investment securities (excluding short-term securities) for the six months ended June 30, 2009 were $6,772,560 and $7,188,809, respectively.

NOTE 3 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES

Advisory fees were paid monthly to the Adviser at an annual rate of 0.75% of the Fund’s average net assets. Effective July 1, 2009, the annual rate is 0.55% of the Fund’s average net assets.

Boston Financial Data Services, Inc. (“BFDS”) is the Fund’s primary transfer agent. State Street Bank and Trust Company (“State Street Bank”) is the Fund’s primary accounting provider. Fees for such services are included in the custodian fee as State Street Bank also serves as the Fund’s custodian. The Adviser is also paid for certain accounting services. The fee for the six months ended June 30, 2009 amounted to $1,002. The Adviser is contractually committed to waive fees and/or reimburse the Fund’s expenses to the extent necessary to cap total annual operating expenses at 1.00% for the Fund. During the six months ended June 30, 2009, such reimbursements amounted to $12,400. Certain directors and officers of the Fund are also directors and officers of the general partner of the Adviser.

NOTE 4 - EXPENSES PAID INDIRECTLY

DAVIS REAL ESTATE PORTFOLIO	Notes to Financial Statements – (Continued)
	June 30, 2009 (Unaudited)

NOTE 5 - CAPITAL STOCK

At June 30, 2009, there were 500 million shares of capital stock ($0.001 par value per share) authorized. Transactions in capital stock were as follows:

	Six months ended			Year ended
	June 30, 2009 (Unaudited)			December 31, 2008
	Shares		Amount	Shares		Amount
Shares sold	463,305	$	2,399,043	276,678	$	2,700,154
Shares issued in reinvestment
of distributions	49,938		201,749	161,544		1,201,857
	513,243		2,600,792	438,222		3,902,011
Shares redeemed	(589,540)		(2,863,560)	(1,432,521)		(14,198,487)
Net decrease	(76,297)	$	(262,768)	(994,299)	$	(10,296,476)

NOTE 6 - BANK BORROWINGS

DAVIS REAL ESTATE PORTFOLIO

Financial Highlights

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

				Six months ended June 30, 2009				Year ended December 31,
					(Unaudited)			2008			2007			2006			2005			2004
Net Asset Value, Beginning of Period					$	5.80		$	11.45		$	20.43		$	17.33		$	16.80		$	13.47

Income (Loss) from Investment Operations:
	Net Investment Income				0.11			0.19			0.42			0.34			0.30			0.34
	Net Realized and Unrealized Gains (Losses)				(0.47)			(5.50)			(3.40)			5.58			1.86			4.07
		Total from Investment Operations			(0.36)			(5.31)			(2.98)			5.92			2.16			4.41

Dividends and Distributions:
	Dividends from Net Investment Income				(0.07)			(0.22)			(0.64)			(0.60)			(0.54)			(0.48)
	Distributions from Realized Gains				–			(0.11)			(5.36)			(2.22)			(1.09)			(0.60)
	Return of Capital				–			(0.01)			–			–			–			–
		Total Dividends and Distributions			(0.07)			(0.34)			(6.00)			(2.82)			(1.63)			(1.08)
Net Asset Value, End of Period					$	5.37		$	5.80		$	11.45		$	20.43		$	17.33		$	16.80

Total Return^a					(5.92)		%	(46.91)		%	(15.48)		%	34.37		%	13.14		%	33.35		%

Ratios/Supplemental Data:
	Net Assets, End of Period (in thousands)				$	17,485		$	19,331		$	49,548		$	89,738		$	64,556		$	58,279
	Ratio of Expenses to Average Net Assets:
		Gross			1.16		%^b	0.98		%	0.88		%	0.86		%	0.87		%	0.89		%
		Net^c			1.00		%^b	0.98		%	0.87		%	0.86		%	0.87		%	0.89		%
Ratio of Net Investment Income to Average Net Assets					4.47		%^b	1.84		%	1.92		%	1.63		%	1.71		%	2.30		%
Portfolio Turnover Rate^d					46		%	41		%	49		%	38		%	28		%	32		%

a			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 are not annualized for periods of less than one year and do not reflect charges attributable to your insurance company’s separate account. Inclusion of these charges would reduce the total returns shown.
b			Annualized.
c			The Net Ratio of Expenses to Average Net Assets reflects the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.
d			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

DAVIS REAL ESTATE PORTFOLIO

Fund Information

Portfolio Proxy Voting Policies and Procedures

Form N-Q

DAVIS REAL ESTATE PORTFOLIO

Director Approval of Advisory Agreements

Process of Annual Review

The Board of Directors of the Davis Funds oversees the management of each Davis Fund and, as required by law, determines annually whether to approve the continuance of each Davis Fund’s advisory agreement with Davis Selected Advisers, L.P. and sub-advisory agreement with Davis Selected Advisers-NY, Inc. (jointly “Davis Advisors” and “Advisory Agreements”).

Reasons the Independent Directors Approved Continuation of the Advisory Agreements

Achieves satisfactory investment results over the long-term after all costs;

Fosters healthy investor behavior.

Davis Advisors is reimbursed a portion of its costs in providing some, but not all, of these services.

The Independent Directors expect Davis Advisors to employ a disciplined, company-specific, research-driven, businesslike, long-term investment philosophy.

The Independent Directors reviewed (a) comparative fee and expense information for other funds, as selected and analyzed by a nationally recognized independent service provider; (b) information regarding fees charged by Davis Advisors to other advisory clients, including funds which it sub-advises and private accounts, as well as the differences in the services provided to such other clients; and (c) the fee schedule of Davis Real Estate Portfolio, including an assessment of competitive fee schedules.

DAVIS REAL ESTATE PORTFOLIO

Director Approval of Advisory Agreements – (Continued)

Reasons the Independent Directors Approved Continuation of the Advisory Agreements – (Continued)

The Independent Directors noted that Davis Real Estate Portfolio had under-performed its benchmark, the Wilshire U.S. Real Estate Securities Index (formerly Dow Jones Wilshire Real Estate Securities Index), over the five-year time period, matched the three-year time period, and out-performed in the one-year time period, all ended February 28, 2009. A report produced by an independent service provider indicated that the Fund had under-performed its peer group over the one-, three-, and five-year time periods ended December 31, 2008. The Independent Directors noted the Fund’s strong performance versus its peer group for 4 of the 5 rolling five calendar year time frames ended December 31, 2004 through December 31, 2008.

Approval of Advisory Agreements

The Independent Directors concluded that Davis Advisors had provided Davis Real Estate Portfolio and its shareholders a reasonable level of both investment and non-investment services. The Independent Directors further concluded that shareholders have received a significant benefit from Davis Advisors’ shareholder-oriented approach, as well as the execution of its investment discipline.

The Independent Directors determined that the advisory fee for Davis Real Estate Portfolio was reasonable in light of the nature, quality and extent of the services being provided to the Fund, the costs incurred by Davis Advisors in providing such service, and in comparison to the range of the average advisory fees of its peer group as determined by an independent service provider. The Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements is in the best interest of the Fund and its shareholders. The Independent Directors and the full Board of Directors therefore voted to continue the Advisory Agreements.

Important Developments Following Approval of the Advisory Agreement

DAVIS REAL ESTATE PORTFOLIO

Directors and Officers

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Independent Directors


Marc P. Blum (09/09/42)	Director	Director since 1986	Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).	13	Director, Legg Mason Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).

John S. Gates, Jr. (08/02/53)	Director	Director since 2007	Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of Centerpoint Properties Trust (a REIT); former Co-chairman and Chief Executive Officer for 22 years (until 2006).	13	Director, DCT Industrial Trust (a REIT).

Thomas S. Gayner (12/16/61)	Director	Director since 2004	Executive Vice President and Chief Investment Officer, Markel Corporation (insurance company).	13	Director, First Market Bank; Director, Washington Post Co. (newspaper publisher); Director, Colfax Corp. (engineering and manufacturer of pumps and fluid handling equipment).

G. Bernard Hamilton (03/18/37)	Director	Director since 1978	Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.	13	none

Samuel H. Iapalucci (07/19/52)	Director	Director since 2006	Former Executive Vice President and Chief Financial Officer, CH2M-Hill, Inc. (engineering).	13	none

Robert P. Morgenthau (03/22/57)	Director	Director since 2002	Chairman, NorthRoad Capital Management, LLC (an investment management firm) since June 2002.	13	none

Christian R. Sonne (05/06/36)	Director	Director since 1990	General Partner, Tuxedo Park Associates (land holding and development firm).	13	none

Marsha Williams (03/28/51)	Director	Director since 1999	Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider) since 2007; former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (a REIT).	13	Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering); Director, Fifth Third Bancorp (diversified financial services).

DAVIS REAL ESTATE PORTFOLIO

Directors and Officers – (Continued)

Name

(birthdate)

Position(s) Held With Fund

Term of Office and Length of Time Served

Principal Occupation(s) During Past Five Years

Number of Portfolios in Fund Complex Overseen by Director

Other Directorships Held by Director

Inside Directors*


Jeremy H. Biggs (08/16/35)	Director/ Chairman	Director since 1994	Vice Chairman, Member of the Audit Committee and Member of the International Investment Committee, former Chief Investment Officer (1980 through 2005), all for Fiduciary Trust Company International (money management firm); Consultant to Davis Selected Advisers, L.P.	13	none

Christopher C. Davis (07/13/65)	Director	Director since 1997	President or Vice President of each Davis Fund, Selected Fund, and Clipper Fund; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser, including sole member of the Adviser’s general partner, Davis Investments, LLC; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).	10	Director, Davis New York Venture Fund, Inc. (consisting of four portfolios); Director, the Selected Funds (consisting of three portfolios) since 1998; Director, Washington Post Co. (newspaper publisher).

DAVIS REAL ESTATE PORTFOLIO

Directors and Officers – (Continued)

Officers

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

DAVIS REAL ESTATE PORTFOLIO

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
Boston Financial Data Services, Inc.
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406

Custodian
State Street Bank and Trust Co.
One Lincoln Street
Boston, Massachusetts 02111

Counsel
Seyfarth Shaw LLP
131 South Dearborn Street, Suite 2400
Chicago, Illinois 60603-5577

Independent Registered Public Accounting Firm
KPMG LLP
707 Seventeenth Street, Suite 2700
Denver, Colorado 80202

For more information about Davis Real Estate Portfolio, including management fee, charges, and expenses, see the current Davis Variable Account Fund, Inc. (including Davis Real Estate Portfolio) 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.

ITEM 2. CODE OF ETHICS

Not Applicable

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The registrant's board of directors has determined that independent trustee 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

Not Applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not Applicable

ITEM 6. SCHEDULE OF INVESTMENTS

Not Applicable. The complete Schedule of Investments is included in Item 1 of this for N-CSR

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 Trustees.

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. EXHIBITS

(a)(1) Not Applicable

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached.

(a)(3) Not Applicable

(b) Certifications pursuant to Section 906 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: August 21, 2009

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: August 21, 2009

By	/s/ Douglas A. Haines
	Douglas A. Haines
	Principal Financial Officer

Date: August 21, 2009

Davis Variable Account Fund N-CSRSCertified semi-annual shareholder report (management investment company)