UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-01533
SELECTED INTERNATIONAL FUND, INC.
(Exact name of registrant as specified in charter)
2949 East Elvira Road, Suite 101
Tucson, AZ 85756
(Address of principal executive offices)
Ryan M. Charles
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, 2019
Date of reporting period: June 30, 2019
____________________
ITEM 1. REPORT TO STOCKHOLDERS
SELECTED FUNDS | Table of Contents |
2 | |
Management’s Discussion of Fund Performance: | |
3 | |
5 | |
Fund Overview: | |
7 | |
8 | |
9 | |
Schedule of Investments: | |
10 | |
13 | |
16 | |
17 | |
18 | |
20 | |
27 | |
29 | |
32 | |
33 |
SELECTED FUNDS |
James J. McMonagle | Christopher C. Davis | Danton G. Goei |
Chairman | President & Portfolio Manager | Portfolio Manager |
August 5, 2019 |
SELECTED FUNDS | |
SELECTED AMERICAN SHARES, INC. |
1 | The companies included in the Standard & Poor’s 500® Index are divided into eleven sectors. One or more industry groups make up a sector. For purposes of measuring concentration, the Fund generally classifies companies at the industry group or industry level. See the SAI for additional information regarding the Fund’s concentration policy. |
2 | A company’s or sector’s contribution to or detraction from the Fund’s performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%. |
3 | This Management Discussion of Fund Performance discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase, sell, or hold any particular security. The Schedule of Investments lists the Fund’s holdings of each company discussed. |
SELECTED FUNDS | Management’s Discussion of Fund Performance |
SELECTED AMERICAN SHARES, INC. – (CONTINUED) |
Fund & Benchmark Index | 1-Year | 5-Year | 10-Year | Since Class D’s Inception (May 3, 2004) | Gross Expense Ratio | Net Expense Ratio |
Class S | (0.89)% | 7.55% | 11.79% | N/A | 0.98% | 0.98% |
Class D | (0.58)% | 7.90% | 12.16% | 7.41% | 0.66% | 0.66% |
Standard & Poor’s 500® Index | 10.42% | 10.71% | 14.69% | 8.82% |
SELECTED FUNDS | |
SELECTED INTERNATIONAL FUND, INC. |
1 | The companies included in the Morgan Stanley Capital International All Country World Index ex USA are divided into eleven sectors. One or more industry groups make up a sector. For purposes of measuring concentration, the Fund generally classifies companies at the industry group or industry level. See the SAI for additional information regarding the Fund’s concentration policy. |
2 | A company’s or sector’s contribution to or detraction from the Fund’s performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%. |
3 | This Management Discussion of Fund Performance discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase, sell, or hold any particular security. The Schedule of Investments lists the Fund’s holdings of each company discussed. |
SELECTED FUNDS | Management’s Discussion of Fund Performance |
SELECTED INTERNATIONAL FUND, INC. – (CONTINUED) |
Fund & Benchmark Index | 1-Year | 5-Year | 10-Year | Since Class D’s Inception (May 3, 2004) | Gross Expense Ratio | Net Expense Ratio |
Class S | (7.47)% | 2.93% | 6.89% | N/A | 1.43% | 1.15% |
Class D | (7.19)% | 3.35% | 7.39% | 4.13% | 0.88% | 0.88% |
MSCI ACWI® ex USA | 1.29% | 2.16% | 6.54% | 5.94% |
SELECTED FUNDS | |
SELECTED AMERICAN SHARES, INC. | June 30, 2019 (Unaudited) |
Portfolio Composition | Industry Weightings | |||||
(% of Fund’s 06/30/19 Net Assets) | (% of 06/30/19 Stock Holdings) | |||||
Fund | S&P 500® | |||||
Common Stock (U.S.) | 79.82% | Diversified Financials | 19.59% | 5.12% | ||
Common Stock (Foreign) | 16.62% | Banks | 14.51% | 5.48% | ||
Preferred Stock (Foreign) | 3.45% | Media & Entertainment | 13.71% | 8.17% | ||
Other Assets & Liabilities | 0.11% | Retailing | 11.28% | 6.64% | ||
100.00% | Information Technology | 11.19% | 21.47% | |||
Capital Goods | 7.55% | 6.63% | ||||
Energy | 5.10% | 5.04% | ||||
Insurance | 4.18% | 2.51% | ||||
Consumer Services | 3.75% | 1.95% | ||||
Transportation | 3.45% | 1.99% | ||||
Health Care | 3.14% | 14.19% | ||||
Automobiles & Components | 1.17% | 0.52% | ||||
Materials | 0.73% | 2.80% | ||||
Consumer Durables & Apparel | 0.45% | 1.08% | ||||
Telecommunication Services | 0.20% | 2.01% | ||||
Food, Beverage & Tobacco | – | 3.88% | ||||
Other | – | 10.52% | ||||
100.00% | 100.00% |
Top 10 Long-Term Holdings | ||
(% of Fund’s 06/30/19 Net Assets) | ||
Alphabet Inc.* | Media & Entertainment | 8.07% |
Berkshire Hathaway Inc., Class A | Diversified Financial Services | 6.32% |
Amazon.com, Inc. | Retailing | 5.83% |
Wells Fargo & Co. | Banks | 5.68% |
Capital One Financial Corp. | Consumer Finance | 5.32% |
United Technologies Corp. | Capital Goods | 4.96% |
Facebook, Inc., Class A | Media & Entertainment | 4.67% |
JPMorgan Chase & Co. | Banks | 4.52% |
Applied Materials, Inc. | Semiconductors & Semiconductor Equipment | 4.42% |
American Express Co. | Consumer Finance | 4.07% |
SELECTED FUNDS | |
SELECTED INTERNATIONAL FUND, INC. | June 30, 2019 (Unaudited) |
Portfolio Composition | Industry Weightings | |||||
(% of Fund’s 06/30/19 Net Assets) | (% of 06/30/19 Stock Holdings) | |||||
Fund | MSCI ACWI® EX USA | |||||
Common Stock (Foreign) | 89.81% | Retailing | 22.40% | 3.37% | ||
Preferred Stock (Foreign) | 9.65% | Transportation | 15.31% | 2.69% | ||
Short-Term Investments | 0.23% | Capital Goods | 13.05% | 7.78% | ||
Other Assets & Liabilities | 0.31% | Banks | 12.45% | 13.46% | ||
100.00% | Consumer Services | 8.56% | 1.42% | |||
Insurance | 7.34% | 5.43% | ||||
Information Technology | 6.02% | 8.53% | ||||
Diversified Financials | 4.79% | 2.99% | ||||
Energy | 3.50% | 7.06% | ||||
Media & Entertainment | 2.93% | 2.92% | ||||
Consumer Durables & Apparel | 1.44% | 3.02% | ||||
Materials | 1.36% | 7.64% | ||||
Commercial & Professional Services | 0.85% | 1.49% | ||||
Health Care | – | 8.27% | ||||
Food, Beverage & Tobacco | – | 5.80% | ||||
Telecommunication Services | – | 3.99% | ||||
Automobiles & Components | – | 3.46% | ||||
Other | – | 10.68% | ||||
100.00% | 100.00% |
Country Diversification | Top 10 Long-Term Holdings | |||
(% of 06/30/19 Stock Holdings) | (% of Fund’s 06/30/19 Net Assets) | |||
China | 43.82% | New Oriental Education & Technology Group, Inc., ADR | 8.00% | |
South Africa | 7.87% | Naspers Ltd. - N | 7.83% | |
Brazil | 6.71% | Didi Chuxing Joint Co., Series A, Pfd. | 7.62% | |
France | 6.53% | Alibaba Group Holding Ltd., ADR | 6.97% | |
United Kingdom | 6.53% | Hollysys Automation Technologies Ltd. | 5.99% | |
Singapore | 6.21% | Sul America S.A. | 5.90% | |
India | 4.84% | Ferguson PLC | 5.56% | |
Canada | 3.50% | JD.com, Inc., Class A, ADR | 5.22% | |
Bermuda | 3.17% | InterGlobe Aviation Ltd. | 4.81% | |
Switzerland | 2.87% | DBS Group Holdings Ltd. | 4.15% | |
Norway | 2.75% | |||
Netherlands | 1.44% | |||
Denmark | 1.42% | |||
Hong Kong | 1.41% | |||
Germany | 0.93% | |||
100.00% |
Beginning | Ending | Expenses Paid | |
Account Value | Account Value | During Period* | |
(01/01/19) | (06/30/19) | (01/01/19-06/30/19) | |
Selected American Shares | |||
Class S (annualized expense ratio 0.98%**) | |||
Actual | $1,000.00 | $1,174.37 | $5.28 |
Hypothetical | $1,000.00 | $1,019.93 | $4.91 |
Class D (annualized expense ratio 0.66%**) | |||
Actual | $1,000.00 | $1,175.93 | $3.56 |
Hypothetical | $1,000.00 | $1,021.52 | $3.31 |
Selected International Fund | |||
Class S (annualized expense ratio 1.15%**) | |||
Actual | $1,000.00 | $1,177.99 | $6.21 |
Hypothetical | $1,000.00 | $1,019.09 | $5.76 |
Class D (annualized expense ratio 0.88%**) | |||
Actual | $1,000.00 | $1,180.00 | $4.76 |
Hypothetical | $1,000.00 | $1,020.43 | $4.41 |
Hypothetical assumes 5% annual return before expenses. | |||
*Expenses are equal to each Class’s annualized operating expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). | |||
**The expense ratios reflect the impact, if any, of certain reimbursements from the Adviser. |
Shares/Units | Value (Note 1) | |||||||||||
COMMON STOCK – (96.44%) | ||||||||||||
COMMUNICATION SERVICES – (13.90%) | ||||||||||||
Media & Entertainment – (13.70%) | ||||||||||||
Alphabet Inc., Class A * | 50,044 | $ | 54,187,643 | |||||||||
Alphabet Inc., Class C * | 86,700 | 93,714,897 | ||||||||||
ASAC II L.P. *(a)(b) | 1,174,606 | 1,207,965 | ||||||||||
Facebook, Inc., Class A * | 443,248 | 85,546,864 | ||||||||||
Liberty Global plc, Series C * | 513,080 | 13,612,012 | ||||||||||
Liberty Latin America Ltd., Class C * | 128,489 | 2,208,726 | ||||||||||
Liberty TripAdvisor Holdings, Inc., Series A * | 56,003 | 694,437 | ||||||||||
251,172,544 | ||||||||||||
Telecommunication Services – (0.20%) | ||||||||||||
GCI Liberty, Inc., Class A * | 60,536 | 3,720,543 | ||||||||||
Total Communication Services | 254,893,087 | |||||||||||
CONSUMER DISCRETIONARY – (16.62%) | ||||||||||||
Automobiles & Components – (1.17%) | ||||||||||||
Adient plc * | 882,475 | 21,417,668 | ||||||||||
Consumer Durables & Apparel – (0.45%) | ||||||||||||
Hunter Douglas N.V. (Netherlands) | 117,332 | 8,191,880 | ||||||||||
Consumer Services – (3.74%) | ||||||||||||
New Oriental Education & Technology Group, Inc., ADR (China)* | 710,270 | 68,597,877 | ||||||||||
Retailing – (11.26%) | ||||||||||||
Alibaba Group Holding Ltd., ADR (China)* | 275,197 | 46,632,132 | ||||||||||
Amazon.com, Inc. * | 56,466 | 106,925,712 | ||||||||||
Booking Holdings Inc. * | 8,167 | 15,310,756 | ||||||||||
Liberty Expedia Holdings, Inc., Series A * | 41,160 | 1,967,036 | ||||||||||
Naspers Ltd. - N (South Africa) | 137,000 | 33,260,507 | ||||||||||
Qurate Retail, Inc., Series A * | 197,705 | 2,449,565 | ||||||||||
206,545,708 | ||||||||||||
Total Consumer Discretionary | 304,753,133 | |||||||||||
ENERGY – (5.10%) | ||||||||||||
Apache Corp. | 2,044,537 | 59,230,237 | ||||||||||
Encana Corp. (Canada) | 3,028,673 | 15,537,092 | ||||||||||
Magnolia Oil & Gas Corp., Class A * | 1,617,443 | 18,729,990 | ||||||||||
Total Energy | 93,497,319 | |||||||||||
FINANCIALS – (38.23%) | ||||||||||||
Banks – (14.49%) | ||||||||||||
Danske Bank A/S (Denmark) | 1,054,000 | 16,659,050 | ||||||||||
DBS Group Holdings Ltd. (Singapore) | 1,604,200 | 30,779,772 | ||||||||||
JPMorgan Chase & Co. | 741,436 | 82,892,545 | ||||||||||
U.S. Bancorp | 596,850 | 31,274,940 | ||||||||||
Wells Fargo & Co. | 2,199,620 | 104,086,018 | ||||||||||
265,692,325 | ||||||||||||
Diversified Financials – (19.57%) | ||||||||||||
Capital Markets – (3.86%) | ||||||||||||
Bank of New York Mellon Corp. | 1,603,325 | 70,786,799 | ||||||||||
Consumer Finance – (9.39%) | ||||||||||||
American Express Co. | 604,758 | 74,651,328 | ||||||||||
Capital One Financial Corp. | 1,073,525 | 97,411,658 | ||||||||||
172,062,986 |
SELECTED FUNDS | Schedule of Investments |
SELECTED AMERICAN SHARES, INC. - (CONTINUED) | June 30, 2019 (Unaudited) |
Shares | Value (Note 1) | ||||||||||||
COMMON STOCK – (CONTINUED) | |||||||||||||
FINANCIALS – (CONTINUED) | |||||||||||||
Diversified Financials – (Continued) | |||||||||||||
Diversified Financial Services – (6.32%) | |||||||||||||
Berkshire Hathaway Inc., Class A * | 364 | $ | 115,879,400 | ||||||||||
358,729,185 | |||||||||||||
Insurance – (4.17%) | |||||||||||||
Life & Health Insurance – (1.32%) | |||||||||||||
AIA Group Ltd. (Hong Kong) | 2,249,450 | 24,260,553 | |||||||||||
Property & Casualty Insurance – (2.85%) | |||||||||||||
Chubb Ltd. | 170,801 | 25,157,279 | |||||||||||
Loews Corp. | 345,774 | 18,903,465 | |||||||||||
Markel Corp. * | 7,488 | 8,158,925 | |||||||||||
52,219,669 | |||||||||||||
76,480,222 | |||||||||||||
Total Financials | 700,901,732 | ||||||||||||
HEALTH CARE – (3.14%) | |||||||||||||
Health Care Equipment & Services – (3.14%) | |||||||||||||
CVS Health Corp. | 343,043 | 18,692,413 | |||||||||||
Quest Diagnostics Inc. | 381,110 | 38,800,809 | |||||||||||
Total Health Care | 57,493,222 | ||||||||||||
INDUSTRIALS – (7.54%) | |||||||||||||
Capital Goods – (7.54%) | |||||||||||||
Ferguson PLC (United Kingdom) | 623,526 | 44,343,399 | |||||||||||
Orascom Construction PLC (United Arab Emirates) | 531,167 | 2,974,535 | |||||||||||
United Technologies Corp. | 699,170 | 91,031,934 | |||||||||||
Total Industrials | 138,349,868 | ||||||||||||
INFORMATION TECHNOLOGY – (11.18%) | |||||||||||||
Semiconductors & Semiconductor Equipment – (8.88%) | |||||||||||||
Applied Materials, Inc. | 1,805,770 | 81,097,131 | |||||||||||
Intel Corp. | 638,000 | 30,541,060 | |||||||||||
Texas Instruments Inc. | 445,343 | 51,107,562 | |||||||||||
162,745,753 | |||||||||||||
Software & Services – (2.30%) | |||||||||||||
Microsoft Corp. | 212,510 | 28,467,840 | |||||||||||
Oracle Corp. | 241,625 | 13,765,376 | |||||||||||
42,233,216 | |||||||||||||
Total Information Technology | 204,978,969 | ||||||||||||
MATERIALS – (0.73%) | |||||||||||||
LafargeHolcim Ltd. (Switzerland) | 274,678 | 13,411,725 | |||||||||||
Total Materials | 13,411,725 | ||||||||||||
TOTAL COMMON STOCK – (Identified cost $1,156,219,857) | 1,768,279,055 |
SELECTED FUNDS | Schedule of Investments |
SELECTED AMERICAN SHARES, INC. - (CONTINUED) | June 30, 2019 (Unaudited) |
Shares | Value (Note 1) | ||||||||||||
PREFERRED STOCK – (3.45%) | |||||||||||||
INDUSTRIALS – (3.45%) | |||||||||||||
Transportation – (3.45%) | |||||||||||||
Didi Chuxing Joint Co., Series A (China)*(a)(b) | 1,161,716 | $ | 54,149,209 | ||||||||||
Didi Chuxing Joint Co., Series B (China)*(a)(b) | 195,204 | 9,098,732 | |||||||||||
Total Industrials | 63,247,941 | ||||||||||||
TOTAL PREFERRED STOCK – (Identified cost $42,180,623) | 63,247,941 | ||||||||||||
Total Investments – (99.89%) – (Identified cost $1,198,400,480) | 1,831,526,996 | ||||||||||||
Other Assets Less Liabilities – (0.11%) | 2,041,629 | ||||||||||||
Net Assets – (100.00%) | $ | 1,833,568,625 | |||||||||||
ADR: American Depositary Receipt | |||||||||||||
* | Non-income producing security. | ||||||||||||
(a) | Restricted Security – See Note 7 of the Notes to Financial Statements. | ||||||||||||
(b) | The value of this security was determined using significant unobservable inputs. See Note 1 of the Notes to Financial Statements. | ||||||||||||
See Notes to Financial Statements |
SELECTED FUNDS | |
SELECTED INTERNATIONAL FUND, INC. | June 30, 2019 (Unaudited) |
Shares/Units | Value (Note 1) | |||||||||||
COMMON STOCK – (89.81%) | ||||||||||||
COMMUNICATION SERVICES – (2.91%) | ||||||||||||
Media & Entertainment – (2.91%) | ||||||||||||
58.com Inc., Class A, ADR (China)* | 1,566 | $ | 97,358 | |||||||||
Baidu, Inc., Class A, ADR (China)* | 2,627 | 308,305 | ||||||||||
Fang Holdings Ltd., Class A, ADR (China)* | 203,511 | 126,462 | ||||||||||
iQIYI, Inc., Class A, ADR (China)* | 66,140 | 1,365,791 | ||||||||||
Total Communication Services | 1,897,916 | |||||||||||
CONSUMER DISCRETIONARY – (32.23%) | ||||||||||||
Consumer Durables & Apparel – (1.44%) | ||||||||||||
Hunter Douglas N.V. (Netherlands) | 13,383 | 934,374 | ||||||||||
Consumer Services – (8.51%) | ||||||||||||
New Oriental Education & Technology Group, Inc., ADR (China)* | 53,966 | 5,212,036 | ||||||||||
Tarena International, Inc., Class A, ADR (China)* | 133,470 | 333,675 | ||||||||||
5,545,711 | ||||||||||||
Retailing – (22.28%) | ||||||||||||
Alibaba Group Holding Ltd., ADR (China)* | 26,810 | 4,542,954 | ||||||||||
JD.com, Inc., Class A, ADR (China)* | 112,355 | 3,403,233 | ||||||||||
Meituan Dianping, Class B (China)* | 167,387 | 1,467,800 | ||||||||||
Naspers Ltd. - N (South Africa) | 21,014 | 5,101,725 | ||||||||||
14,515,712 | ||||||||||||
Total Consumer Discretionary | 20,995,797 | |||||||||||
ENERGY – (3.48%) | ||||||||||||
Encana Corp. (Canada) | 281,785 | 1,445,557 | ||||||||||
Seven Generations Energy Ltd., Class A (Canada)* | 167,560 | 821,454 | ||||||||||
Total Energy | 2,267,011 | |||||||||||
FINANCIALS – (24.44%) | ||||||||||||
Banks – (12.38%) | ||||||||||||
Bank of N.T. Butterfield & Son Ltd. (Bermuda) | 60,570 | 2,056,957 | ||||||||||
Danske Bank A/S (Denmark) | 58,340 | 922,096 | ||||||||||
DBS Group Holdings Ltd. (Singapore) | 140,770 | 2,700,953 | ||||||||||
DNB ASA (Norway) | 95,600 | 1,778,537 | ||||||||||
Metro Bank PLC (United Kingdom)* | 90,830 | 606,161 | ||||||||||
8,064,704 | ||||||||||||
Diversified Financials – (4.76%) | ||||||||||||
Capital Markets – (3.48%) | ||||||||||||
Futu Holdings Ltd., Class A, ADR (China)* | 3,490 | 36,890 | ||||||||||
Julius Baer Group Ltd. (Switzerland) | 21,980 | 978,540 | ||||||||||
Noah Holdings Ltd., ADS (China)* | 29,384 | 1,250,289 | ||||||||||
2,265,719 | ||||||||||||
Consumer Finance – (1.28%) | ||||||||||||
Yirendai Ltd., ADR (China)* | 60,690 | 835,094 | ||||||||||
3,100,813 | ||||||||||||
Insurance – (7.30%) | ||||||||||||
Life & Health Insurance – (1.40%) | ||||||||||||
AIA Group Ltd. (Hong Kong) | 84,480 | 911,126 | ||||||||||
Multi-line Insurance – (5.90%) | ||||||||||||
Sul America S.A. (Brazil) | 393,337 | 3,843,280 | ||||||||||
4,754,406 | ||||||||||||
Total Financials | 15,919,923 |
SELECTED FUNDS | Schedule of Investments |
SELECTED INTERNATIONAL FUND, INC. - (CONTINUED) | June 30, 2019 (Unaudited) |
Shares | Value (Note 1) | |||||||||||
COMMON STOCK – (CONTINUED) | ||||||||||||
INDUSTRIALS – (19.41%) | ||||||||||||
Capital Goods – (12.98%) | ||||||||||||
Brenntag AG (Germany) | 12,244 | $ | 602,990 | |||||||||
Ferguson PLC (United Kingdom) | 50,942 | 3,622,851 | ||||||||||
Safran S.A. (France) | 11,581 | 1,696,794 | ||||||||||
Schneider Electric SE (France) | 27,974 | 2,537,105 | ||||||||||
8,459,740 | ||||||||||||
Commercial & Professional Services – (0.85%) | ||||||||||||
China Index Holdings Ltd., ADR (China)* | 155,222 | 551,038 | ||||||||||
Transportation – (5.58%) | ||||||||||||
Azul S.A., ADR (Brazil)* | 15,000 | 501,600 | ||||||||||
InterGlobe Aviation Ltd. (India) | 138,967 | 3,134,672 | ||||||||||
3,636,272 | ||||||||||||
Total Industrials | 12,647,050 | |||||||||||
INFORMATION TECHNOLOGY – (5.99%) | ||||||||||||
Technology Hardware & Equipment – (5.99%) | ||||||||||||
Hollysys Automation Technologies Ltd. (China) | 205,510 | 3,904,690 | ||||||||||
Total Information Technology | 3,904,690 | |||||||||||
MATERIALS – (1.35%) | ||||||||||||
LafargeHolcim Ltd. (Switzerland) | 18,017 | 879,717 | ||||||||||
Total Materials | 879,717 | |||||||||||
TOTAL COMMON STOCK – (Identified cost $51,326,364) | 58,512,104 | |||||||||||
PREFERRED STOCK – (9.65%) | ||||||||||||
INDUSTRIALS – (9.65%) | ||||||||||||
Transportation – (9.65%) | ||||||||||||
Didi Chuxing Joint Co., Series A (China)*(a)(b) | 106,435 | 4,961,084 | ||||||||||
Grab Holdings Inc., Series G (Singapore)*(a)(b) | 214,779 | 1,323,662 | ||||||||||
Total Industrials | 6,284,746 | |||||||||||
TOTAL PREFERRED STOCK – (Identified cost $4,143,934) | 6,284,746 |
SELECTED FUNDS | Schedule of Investments |
SELECTED INTERNATIONAL FUND, INC. - (CONTINUED) | June 30, 2019 (Unaudited) |
Principal | Value (Note 1) | ||||||||||
SHORT-TERM INVESTMENTS – (0.23%) | |||||||||||
INTL FCStone Financial Inc. Joint Repurchase Agreement, 2.57%, 07/01/19, dated 06/28/19, repurchase value of $49,010 (collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 0.00%-10.00%, 07/09/19-03/20/69, total market value $49,980) | $ | 49,000 | $ | 49,000 | |||||||
Nomura Securities International, Inc. Joint Repurchase Agreement, 2.50%, 07/01/19, dated 06/28/19, repurchase value of $35,007 (collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%-7.50%, 12/01/30-02/01/37, total market value $35,700) | 35,000 | 35,000 | |||||||||
SunTrust Robinson Humphrey, Inc. Joint Repurchase Agreement, 2.56%, 07/01/19, dated 06/28/19, repurchase value of $66,014 (collateralized by: U.S. Government agency mortgage in a pooled cash account, 3.50%, 06/01/49, total market value $67,320) | 66,000 | 66,000 | |||||||||
TOTAL SHORT-TERM INVESTMENTS – (Identified cost $150,000) | 150,000 | ||||||||||
Total Investments – (99.69%) – (Identified cost $55,620,298) | 64,946,850 | ||||||||||
Other Assets Less Liabilities – (0.31%) | 199,216 | ||||||||||
Net Assets – (100.00%) | $ | 65,146,066 | |||||||||
ADR: American Depositary Receipt | |||||||||||
ADS: American Depositary Share | |||||||||||
* | Non-income producing security. | ||||||||||
(a) | Restricted Security – See Note 7 of the Notes to Financial Statements. | ||||||||||
(b) | The value of this security was determined using significant unobservable inputs. See Note 1 of the Notes to Financial Statements. | ||||||||||
See Notes to Financial Statements |
SELECTED FUNDS | |
At June 30, 2019 (Unaudited) |
Selected American Shares | Selected International Fund | ||||||||
ASSETS: | |||||||||
Investments in securities at value* (see accompanying Schedules of Investments) | $ | 1,831,526,996 | $ | 64,946,850 | |||||
Cash | – | 5,345 | |||||||
Receivables: | |||||||||
Capital stock sold | 352,835 | 28,188 | |||||||
Dividends and interest | 512,756 | 46,601 | |||||||
Investment securities sold | 6,065,398 | 397,850 | |||||||
Prepaid expenses | 32,262 | 1,257 | |||||||
Due from Adviser | – | 2,000 | |||||||
Total assets | 1,838,490,247 | 65,428,091 | |||||||
LIABILITIES: | |||||||||
Cash overdraft | 939,916 | – | |||||||
Payables: | |||||||||
Capital stock redeemed | 1,004,161 | 13,953 | |||||||
Deferred foreign taxes | – | 75,953 | |||||||
Investment securities purchased | 1,718,161 | 127,756 | |||||||
Accrued custodian fees | 70,004 | 16,008 | |||||||
Accrued distribution service fees | 146,561 | 2,187 | |||||||
Accrued investment advisory fees | 855,493 | 29,905 | |||||||
Other accrued expenses | 187,326 | 16,263 | |||||||
Total liabilities | 4,921,622 | 282,025 | |||||||
NET ASSETS | $ | 1,833,568,625 | $ | 65,146,066 | |||||
NET ASSETS CONSIST OF: | |||||||||
Par value of shares of capital stock | $ | 67,369,160 | $ | 1,315,828 | |||||
Additional paid-in capital | 1,113,317,398 | 53,598,824 | |||||||
Distributable earnings** | 652,882,067 | 10,231,414 | |||||||
Net Assets | $ | 1,833,568,625 | $ | 65,146,066 | |||||
CLASS S SHARES: | |||||||||
Net assets | $ | 687,060,020 | $ | 8,882,640 | |||||
Shares outstanding | 20,215,236 | 721,539 | |||||||
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding) | $ | 33.99 | $ | 12.31 | |||||
CLASS D SHARES: | |||||||||
Net assets | $ | 1,146,508,605 | $ | 56,263,426 | |||||
Shares outstanding | 33,680,092 | 4,541,773 | |||||||
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding) | $ | 34.04 | $ | 12.39 |
*Including: | |||||||
Cost of investments | $ | 1,198,400,480 | $ | 55,620,298 | |||
**Net of deferred foreign taxes of | – | 75,953 |
See Notes to Financial Statements |
SELECTED FUNDS | |
For the six months ended June 30, 2019 (Unaudited) |
Selected American Shares | Selected International Fund | ||||||||
INVESTMENT INCOME: | |||||||||
Income: | |||||||||
Dividends* | $ | 16,573,634 | $ | 609,928 | |||||
Interest | 138,545 | 9,712 | |||||||
Total income | 16,712,179 | 619,640 | |||||||
Expenses: | |||||||||
Investment advisory fees (Note 3) | 5,043,068 | 174,075 | |||||||
Custodian fees | 123,792 | 16,776 | |||||||
Transfer agent fees: | |||||||||
Class S | 423,606 | 17,852 | |||||||
Class D | 281,502 | 22,351 | |||||||
Audit fees | 32,430 | 11,750 | |||||||
Legal fees | 18,910 | 4,055 | |||||||
Reports to shareholders | 41,000 | 2,001 | |||||||
Directors’ fees and expenses | 215,647 | 9,726 | |||||||
Registration and filing fees | 27,000 | 21,248 | |||||||
Miscellaneous | 53,853 | 11,609 | |||||||
Distribution service fees (Note 3): | |||||||||
Class S | 875,531 | 11,442 | |||||||
Total expenses | 7,136,339 | 302,885 | |||||||
Reimbursement of expenses by Adviser (Note 3) | – | (13,179) | |||||||
Net expenses | 7,136,339 | 289,706 | |||||||
Net investment income | 9,575,840 | 329,934 | |||||||
REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 32,826,504 | 192,543 | |||||||
Foreign currency transactions | (67,002) | (4,505) | |||||||
Net realized gain | 32,759,502 | 188,038 | |||||||
Net change in unrealized appreciation (depreciation)** | 248,923,135 | 9,565,726 | |||||||
Net realized and unrealized gain on investments and foreign currency transactions | 281,682,637 | 9,753,764 | |||||||
Net increase in net assets resulting from operations | $ | 291,258,477 | $ | 10,083,698 | |||||
*Net of foreign taxes withheld of | $ | 262,321 | $ | 63,250 | |||||
**Net of deferred foreign taxes of | – | 75,953 |
See Notes to Financial Statements |
SELECTED FUNDS | |
For the six months ended June 30, 2019 (Unaudited) |
Selected American Shares | Selected International Fund | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 9,575,840 | $ | 329,934 | ||||
Net realized gain from investments and foreign currency transactions | 32,759,502 | 188,038 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | 248,923,135 | 9,565,726 | ||||||
Net increase in net assets resulting from operations | 291,258,477 | 10,083,698 | ||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Class S | (22,688,922) | – | ||||||
Class D | (39,619,267) | – | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Net decrease in net assets resulting from capital share transactions (Note 4): | ||||||||
Class S | (57,658,424) | (1,128,531) | ||||||
Class D | (18,632,998) | (121,550) | ||||||
Total increase in net assets | 152,658,866 | 8,833,617 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 1,680,909,759 | 56,312,449 | ||||||
End of period | $ | 1,833,568,625 | $ | 65,146,066 |
See Notes to Financial Statements |
SELECTED FUNDS | Statements of Changes in Net Assets |
For the year ended December 31, 2018 |
Selected American Shares | Selected International Fund | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 15,216,403 | $ | 491,420 | ||||
Net realized gain from investments and foreign currency transactions | 233,310,202 | 8,167,665 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (520,631,883) | (25,282,535) | ||||||
Net decrease in net assets resulting from operations | (272,105,278) | (16,623,450) | ||||||
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Class S | (112,615,545) | (633,351) | ||||||
Class D | (177,899,601) | (3,670,557) | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions (Note 4): | ||||||||
Class S | (36,288,708) | (21,869,578) | ||||||
Class D | 23,991,402 | (3,713,913) | ||||||
Total decrease in net assets | (574,917,730) | (46,510,849) | ||||||
NET ASSETS: | ||||||||
Beginning of year | 2,255,827,489 | 102,823,298 | ||||||
End of year | $ | 1,680,909,759 | $ | 56,312,449 |
See Notes to Financial Statements |
SELECTED FUNDS | |
June 30, 2019 (Unaudited) |
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Investments in Securities at Value | |||||
Selected | Selected | ||||
American Shares | International Fund | ||||
Valuation Inputs | |||||
Level 1 – Quoted Prices: | |||||
Common Stock: | |||||
Communication Services | $ | 253,685,122 | $ | 1,897,916 | |
Consumer Discretionary | 304,753,133 | 20,995,797 | |||
Energy | 93,497,319 | 2,267,011 | |||
Financials | 700,901,732 | 15,919,923 | |||
Health Care | 57,493,222 | – | |||
Industrials | 138,349,868 | 12,647,050 | |||
Information Technology | 204,978,969 | 3,904,690 | |||
Materials | 13,411,725 | 879,717 | |||
Total Level 1 | 1,767,071,090 | 58,512,104 | |||
Level 2 – Other Significant Observable Inputs: | |||||
Short-term securities | – | 150,000 | |||
Total Level 2 | – | 150,000 | |||
Level 3 – Significant Unobservable Inputs: | |||||
Common Stock: | |||||
Communication Services | 1,207,965 | – | |||
Preferred Stock: | |||||
Industrials | 63,247,941 | 6,284,746 | |||
Total Level 3 | 64,455,906 | 6,284,746 | |||
Total Investments | $ | 1,831,526,996 | $ | 64,946,850 |
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Beginning Balance January 1, 2019 | Cost of Purchases | Net Change in Unrealized Appreciation (Depreciation) | Net Realized Gain (Loss) | Proceeds from Sales | Ending Balance June 30, 2019 | |||||||||||||
Selected American Shares | ||||||||||||||||||
Investments in Securities: | ||||||||||||||||||
Common Stock | $ | 1,147,942 | $ | – | $ | 60,023 | $ | – | $ | – | $ | 1,207,965 | ||||||
Preferred Stock | 63,096,780 | – | 151,161 | – | – | 63,247,941 | ||||||||||||
Total Level 3 | $ | 64,244,722 | $ | – | $ | 211,184 | $ | – | $ | – | $ | 64,455,906 | ||||||
Selected International Fund | ||||||||||||||||||
Investments in Securities: | ||||||||||||||||||
Preferred Stock | $ | 6,272,889 | $ | – | $ | 11,857 | $ | – | $ | – | $ | 6,284,746 | ||||||
Total Level 3 | $ | 6,272,889 | $ | – | $ | 11,857 | $ | – | $ | – | $ | 6,284,746 |
Fair Value at June 30, 2019 | Valuation Technique | Unobservable Input(s) | Amount(s) or Range | Impact to Valuation from an Increase in Input | |||||||
Selected American Shares | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | $ | 1,207,965 | Discounted Cash Flow | Annualized Yield | 3.139% | Decrease | |||||
Preferred Stock | 63,247,941 | Market Approach | Volume-Weighted Transaction Price | $46.00-$48.39 | Increase | ||||||
Total Level 3 | $ | 64,455,906 | |||||||||
Selected International Fund | |||||||||||
Investments in Securities: | |||||||||||
Preferred Stock | $ | 4,961,084 | Market Approach | Volume-Weighted Transaction Price | $46.00-$48.39 | Increase | |||||
Preferred Stock | 1,323,662 | Market Approach | Transaction Price | $6.1629 | Increase | ||||||
Total Level 3 | $ | 6,284,746 |
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Selected | Selected | |||||
American Shares | International Fund | |||||
Cost | $ | 1,202,547,918 | $ | 55,702,737 | ||
Unrealized appreciation | 744,216,776 | 15,976,711 | ||||
Unrealized depreciation | (115,237,698) | (6,732,598) | ||||
Net unrealized appreciation | $ | 628,979,078 | $ | 9,244,113 |
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Selected American Shares | Selected International Fund | ||||
Cost of purchases | $ | 136,711,167 | $ | 3,223,715 | |
Proceeds from sales | 258,984,637 | 3,605,603 |
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Selected American Shares | Selected International Fund | |
n/a | 22% |
Six months ended June 30, 2019 (Unaudited) | |||||||||||
Sold | Reinvestment of Distributions | Redeemed | Net Decrease | ||||||||
Selected American Shares | |||||||||||
Shares: Class S | 180,084 | 667,117 | (2,529,772) | ^ | (1,682,571) | ||||||
Class D | 942,602 | ^ | 1,080,168 | (2,534,181) | (511,411) | ||||||
Value: Class S | $ | 6,045,276 | $ | 22,375,102 | $ | (86,078,802) | ^ | $ | (57,658,424) | ||
Class D | 31,512,284 | ^ | 36,283,735 | (86,429,017) | (18,632,998) | ||||||
Selected International Fund | |||||||||||
Shares: Class S | 5,613 | – | (100,017) | ^ | (94,404) | ||||||
Class D | 96,591 | ^ | – | (106,291) | (9,700) | ||||||
Value: Class S | $ | 67,639 | $ | – | $ | (1,196,170) | ^ | $ | (1,128,531) | ||
Class D | 1,141,013 | ^ | – | (1,262,563) | (121,550) | ||||||
SELECTED FUNDS | Notes to Financial Statements – (Continued) |
June 30, 2019 (Unaudited) |
Year ended December 31, 2018 | |||||||||||
Sold | Reinvestment of Distributions | Redeemed* | Net Increase (Decrease) | ||||||||
Selected American Shares | |||||||||||
Shares: Class S | 913,656 | 3,226,647 | (4,731,458) | (591,155) | |||||||
Class D | 1,794,593 | 4,721,813 | (5,445,330) | 1,071,076 | |||||||
Value: Class S | $ | 31,483,870 | $ | 111,137,308 | $ | (178,909,886) | $ | (36,288,708) | |||
Class D | 67,240,804 | 162,583,791 | (205,833,193) | 23,991,402 | |||||||
Selected International Fund | |||||||||||
Shares: Class S | 299,531 | 57,201 | (1,875,392) | (1,518,660) | |||||||
Class D | 94,874 | 328,521 | (628,733) | (205,338) | |||||||
Value: Class S | $ | 4,402,472 | $ | 620,627 | $ | (26,892,677) | $ | (21,869,578) | |||
Class D | 1,317,984 | 3,580,876 | (8,612,773) | (3,713,913) | |||||||
Fund | Security | Initial Acquisition Date | Units/Shares | Cost per Unit/ Share | Valuation per Unit/Share as of June 30, 2019 | |||||||
Selected American Shares | ASAC II L.P. | 10/10/13 | 1,174,606 | $ | 1.00 | $ | 1.0284 | |||||
Didi Chuxing Joint Co., Series A, Pfd. | 07/27/15 | 1,161,716 | $ | 27.7507 | $ | 46.6114 | ||||||
Didi Chuxing Joint Co., Series B, Pfd. | 05/16/17 | 195,204 | $ | 50.9321 | $ | 46.6114 | ||||||
Selected International Fund | Didi Chuxing Joint Co., Series A, Pfd. | 07/27/15 | 106,435 | $ | 27.7507 | $ | 46.6114 | |||||
Grab Holdings Inc., Series G, Pfd. | 08/02/17 | 214,779 | $ | 5.5419 | $ | 6.1629 |
The following financial information represents selected data for each share of capital stock outstanding throughout each period: |
Income (Loss) from Investment Operations | ||||
Net Asset Value, Beginning of Period | Net Investment Incomea | Net Realized and Unrealized Gains (Losses) | Total from Investment Operations | |
Selected American Shares Class S: | ||||
Six months ended June 30, 2019e | $29.94 | $0.14 | $5.07 | $5.21 |
Year ended December 31, 2018 | $40.53 | $0.20 | $(5.35) | $(5.15) |
Year ended December 31, 2017 | $35.76 | $0.15 | $7.46 | $7.61 |
Year ended December 31, 2016 | $36.93 | $0.13 | $4.06 | $4.19 |
Year ended December 31, 2015 | $43.16 | $0.20 | $1.37 | $1.57 |
Year ended December 31, 2014 | $50.29 | $0.24 | $2.54 | $2.78 |
Selected American Shares Class D: | ||||
Six months ended June 30, 2019e | $29.99 | $0.20 | $5.06 | $5.26 |
Year ended December 31, 2018 | $40.59 | $0.33 | $(5.36) | $(5.03) |
Year ended December 31, 2017 | $35.80 | $0.28 | $7.47 | $7.75 |
Year ended December 31, 2016 | $36.97 | $0.25 | $4.06 | $4.31 |
Year ended December 31, 2015 | $43.13 | $0.36 | $1.36 | $1.72 |
Year ended December 31, 2014 | $50.26 | $0.39 | $2.56 | $2.95 |
Selected International Fund Class S: | ||||
Six months ended June 30, 2019e | $10.45 | $0.05 | $1.81 | $1.86 |
Year ended December 31, 2018 | $14.44 | $0.04 | $(3.23) | $(3.19) |
Year ended December 31, 2017 | $10.45 | $(0.03) | $4.02 | $3.99 |
Year ended December 31, 2016 | $10.48 | $(0.01) | $(0.02) | $(0.03) |
Year ended December 31, 2015 | $11.12 | $0.04 | $(0.11) | $(0.07) |
Year ended December 31, 2014 | $11.21 | $0.03 | $(0.10) | $(0.07) |
Selected International Fund Class D: | ||||
Six months ended June 30, 2019e | $10.50 | $0.06 | $1.83 | $1.89 |
Year ended December 31, 2018 | $14.53 | $0.09 | $(3.26) | $(3.17) |
Year ended December 31, 2017 | $10.50 | $0.05 | $4.03 | $4.08 |
Year ended December 31, 2016 | $10.53 | $0.04 | $(0.03) | $0.01 |
Year ended December 31, 2015 | $11.17 | $0.09 | $(0.10) | $(0.01) |
Year ended December 31, 2014 | $11.27 | $0.08 | $(0.11) | $(0.03) |
a | Per share calculations were based on average shares outstanding for the period. |
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. |
c | The ratios in this column reflect the impact, if any, of certain reimbursements. |
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. |
Financial Highlights |
Dividends and Distributions | Ratios to Average Net Assets | |||||||||
Dividends from Net Investment Income | Distributions from Realized Gains | Return of Capital | Total Distributions | Net Asset Value, End of Period | Total Returnb | Net Assets, End of Period (in millions) | Gross Expense Ratio | Net Expense Ratioc | Net Investment Income (Loss) Ratio | Portfolio Turnoverd |
$(0.16) | $(1.00) | $– | $(1.16) | $33.99 | 17.44% | $687 | 0.98%f | 0.98%f | 0.84%f | 8% |
$(0.19) | $(5.25) | $– | $(5.44) | $29.94 | (14.00)% | $656 | 0.97% | 0.97% | 0.52% | 24% |
$(0.15) | $(2.69) | $– | $(2.84) | $40.53 | 21.77% | $911 | 0.97% | 0.97% | 0.39% | 13% |
$(0.27) | $(5.09) | $– | $(5.36) | $35.76 | 12.50% | $993 | 0.97% | 0.97% | 0.39% | 19% |
$(0.28) | $(7.52) | $– | $(7.80) | $36.93 | 3.59% | $1,181 | 0.95% | 0.95% | 0.50% | 27% |
$(0.23) | $(9.68) | $– | $(9.91) | $43.16 | 5.60% | $1,571 | 0.94% | 0.94% | 0.47% | 26% |
$(0.21) | $(1.00) | $– | $(1.21) | $34.04 | 17.59% | $1,147 | 0.66%f | 0.66%f | 1.16%f | 8% |
$(0.32) | $(5.25) | $– | $(5.57) | $29.99 | (13.71)% | $1,025 | 0.65% | 0.65% | 0.84% | 24% |
$(0.27) | $(2.69) | $– | $(2.96) | $40.59 | 22.18% | $1,344 | 0.65% | 0.65% | 0.71% | 13% |
$(0.39) | $(5.09) | $– | $(5.48) | $35.80 | 12.83% | $1,391 | 0.65% | 0.64% | 0.72% | 19% |
$(0.36) | $(7.52) | $– | $(7.88) | $36.97 | 3.96% | $2,131 | 0.61% | 0.61% | 0.84% | 27% |
$(0.40) | $(9.68) | $– | $(10.08) | $43.13 | 5.96% | $3,674 | 0.60% | 0.60% | 0.81% | 26% |
$– | $– | $– | $– | $12.31 | 17.80% | $9 | 1.43%f | 1.15%f | 0.81%f | 5% |
$(0.01) | $(0.79) | $– | $(0.80) | $10.45 | (22.27)% | $9 | 1.31% | 1.26% | 0.30% | 31% |
$–g | $– | $– | $–g | $14.44 | 38.22% | $34 | 1.28% | 1.25% | (0.07)% | 12% |
$– | $– | $– | $– | $10.45 | (0.29)% | $8 | 1.51% | 1.30% | (0.09)% | 49% |
$(0.04) | $(0.53) | $– | $(0.57) | $10.48 | (0.70)% | $9 | 1.41% | 1.30% | 0.28% | 43% |
$(0.02) | $– | $– | $(0.02) | $11.12 | (0.66)%h | $11 | 1.38% | 1.30% | 0.23% | 49% |
$– | $– | $– | $– | $12.39 | 18.00% | $56 | 0.88%f | 0.88%f | 1.08%f | 5% |
$(0.07) | $(0.79) | $– | $(0.86) | $10.50 | (22.05)% | $48 | 0.89% | 0.89% | 0.67% | 31% |
$(0.05) | $– | $– | $(0.05) | $14.53 | 38.90% | $69 | 0.87% | 0.87% | 0.31% | 12% |
$(0.04) | $– | $– | $(0.04) | $10.50 | 0.10% | $52 | 0.87% | 0.83% | 0.38% | 49% |
$(0.10) | $(0.53) | $– | $(0.63) | $10.53 | (0.20)% | $74 | 0.83% | 0.83% | 0.75% | 43% |
$(0.07) | $– | $– | $(0.07) | $11.17 | (0.26)%h | $89 | 0.83% | 0.83% | 0.70% | 49% |
e | Unaudited. |
f | Annualized. |
g | Less than $0.005 per share. |
h | Selected International Fund’s performance benefited from IPO purchases in 2014, adding approximately 2% to the Fund’s total return. After purchase, the IPOs rapidly increased in value. The Adviser purchases shares intending to benefit from long-term growth of the underlying company; the rapid appreciation of the IPOs were unusual occurrences. Such performance may not continue in the future. |
See Notes to Financial Statements |
SELECTED FUNDS |
1. | Achieves satisfactory investment results over the long-term, after all costs; |
2. | Efficiently and effectively handles shareholder transactions, inquiries, requests and records, provides quality accounting, legal and compliance services, and oversees third-party service providers; and |
3. | Fosters healthy investor behavior. |
SELECTED FUNDS | Director Approval of Advisory Agreements (Unaudited) – (Continued) |
SELECTED FUNDS | Director Approval of Advisory Agreements (Unaudited) – (Continued) |
SELECTED FUNDS |
SELECTED FUNDS |
Name, Date of Birth, Position(s) Held with Funds, Length of Service | Principal Occupation(s) During Past Five Years | Number of Portfolios Overseen | Other Directorships |
Francisco L. Borges (11/17/51) Director since 2006 | Chairman and Managing Partner, Landmark Partners, LLC (private equity firm) since March 1999. | 3 | Trustee, John S. and James L. Knight Foundation; Trustee, Connecticut Public Broadcasting Network; Chairman/Director, Assured Guaranty Ltd. (financial guaranty insurance business); Director, Jefferies Financial Group (holding company); Trustee, Millbrook School; Trustee, Clipper Funds Trust (consisting of one portfolio). |
Lawrence E. Harris (09/16/56) Director since 2015 | Fred V. Keenan Chair in Finance of the Marshall School of Business, University of Southern California, Los Angeles, CA. | 3 | Director, Interactive Brokers Group, Inc.; Trustee, Clipper Funds Trust (consisting of one portfolio). |
Steven N. Kearsley (09/29/41) Director since 2015 | Private Investor, Real Estate Development; Owner, Old Peak Tree Farm. | 3 | Trustee, Clipper Funds Trust (consisting of one portfolio). |
Katherine L. MacWilliams (01/19/56) Director since 1997 | Retired; Chief Financial Officer, Caridian BCT, Inc. (medical device company) 2008-2012. | 3 | Trustee, Clipper Funds Trust (consisting of one portfolio). |
James J. McMonagle (10/01/44) Director since 1990 Chairman since 1997 | Of Counsel to Vorys, Sater, Seymour and Pease LLP (law firm) since 2002. | 3 | Chairman/Trustee, Clipper Funds Trust (consisting of one portfolio). |
Richard O’Brien (09/12/45) Director since 1996 | Retired; Corporate Economist, HP Inc. | 3 | Trustee, Clipper Funds Trust (consisting of one portfolio). |
Andrew A. Davis (06/25/63) Director since 1998 | President or Vice President of each Selected Fund, \ Clipper Fund, and Davis Fund; President, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser. | 16 | Director, Davis Funds (consisting of 13 portfolios); Trustee, Clipper Funds Trust (consisting of one portfolio). |
Christopher C. Davis (07/13/65) Director since 1998 | President or Vice President of each Selected Fund, Davis Fund, Clipper Fund, and Davis Fundamental ETF; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer of certain companies affiliated with the Adviser, including sole member of the Adviser’s general partner, Davis Investments, LLC. | 16 | Director, Davis Funds (consisting of 13 portfolios); Trustee, Clipper Funds Trust (consisting of one portfolio); Lead Independent Director, Graham Holdings Company (educational and media company); Director, The Coca Cola Company (beverage company). |
SELECTED FUNDS |
Investment Adviser |
Davis Selected Advisers, L.P. |
2949 East Elvira Road, Suite 101 |
Tucson, Arizona 85756 |
Distributor |
Davis Distributors, LLC |
2949 East Elvira Road, Suite 101 |
Tucson, Arizona 85756 |
Custodian |
State Street Bank and Trust Co. |
c/o The Selected Funds |
One Lincoln Street |
Boston, Massachusetts 02111 |
Transfer Agent |
DST Asset Manager Solutions, Inc. |
c/o The Selected Funds |
P.O. Box 219662 |
Kansas City, Missouri 64121-9662 |
Overnight Address: |
430 West 7th Street, Suite 219662 |
Kansas City, Missouri 64105-1407 |
Legal Counsel |
Greenberg Traurig, LLP |
77 West Wacker Drive, Suite 3100 |
Chicago, Illinois 60601 |
Independent Registered Public Accounting Firm |
KPMG LLP |
1225 Seventeenth Street, Suite 800 |
Denver, Colorado 80202 |
(a) | Not Applicable. The complete Schedule of Investments is included in Item 1 of this Form N-CSR |
(b) | Not Applicable. |
(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-2 (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. |
(a)(1) | Not Applicable |
(a)(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached. |
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached. |
By | /s/ Kenneth C. Eich |
Kenneth C. Eich | |
Principal Executive Officer |
By | /s/ Kenneth C. Eich |
Kenneth C. Eich | |
Principal Executive Officer |
By | /s/ Douglas A. Haines |
Douglas A. Haines | |
Principal Financial Officer and Principal Accounting Officer |