SELECTED FUNDS
SELECTED CAPITAL PRESERVATION TRUST –
SELECTED DAILY GOVERNMENT FUND
|
Schedule of Investments
December 31, 2012
|
|
Principal
|
|
Value
(Note 1)
|
|
|
Tennessee Valley Authority, 4.75%, 08/01/13
|
|
|
|
|
|
|
|
|
TOTAL OTHER AGENCIES – (Identified cost $51,224)
|
|
|
|
PRIVATE EXPORT FUNDING
– (3.89%)
|
|
Private Export Funding Corp., 3.55%, 04/15/13
|
|
|
|
|
|
|
|
|
TOTAL PRIVATE EXPORT FUNDING – (Identified cost $1,024,552)
|
|
|
|
REPURCHASE AGREEMENTS
– (43.33%)
|
|
Banc of America Securities LLC Joint Repurchase Agreement, 0.18%, 01/02/13, dated 12/31/12, repurchase value of $4,957,050 (collateralized by: U.S. Government agency mortgages in a pooled cash account, 3.50%-4.50%, 04/01/42-11/01/42, total market value $5,056,140)
|
|
|
|
|
|
|
|
Mizuho Securities USA Inc. Joint Repurchase Agreement, 0.27%, 01/02/13, dated 12/31/12, repurchase value of $6,453,097 (collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.00%, 09/20/40-10/15/40, total market value $6,582,060)
|
|
|
|
|
|
|
|
|
TOTAL REPURCHASE AGREEMENTS – (Identified cost $11,410,000)
|
|
|
|
|
|
|
|
|
|
Total Investments – (98.49%) – (Identified cost $25,934,120) – (b)
|
|
|
25,934,120
|
|
Other Assets Less Liabilities – (1.51%)
|
|
|
397,277
|
|
Net Assets – (100.00%)
|
|
$
|
26,331,397
|
|
(a)
|
|
The interest rates on floating rate securities, shown as of December 31, 2012, may change daily or less frequently and are based on indices of market interest rates. For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities’ variable rates.
|
|
|
|
|
|
(b)
|
|
Aggregate cost for federal income tax purposes is $25,934,120.
|
|
|
|
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Statements of Assets and Liabilities
At December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected American Shares
|
|
|
Selected International Fund
|
|
|
Selected Daily Government Fund
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
Investments in securities at value* (see accompanying Schedules of Investments)
|
|
$
|
5,205,045,909
|
|
$
|
66,261,355
|
|
$
|
25,934,120
|
Cash
|
|
|
1,167
|
|
|
–
|
|
|
1,365
|
Receivables:
|
|
|
|
|
|
|
|
|
|
|
Capital stock sold
|
|
|
8,453,522
|
|
|
13,003
|
|
|
471,795
|
|
Dividends and interest
|
|
|
6,416,396
|
|
|
94,390
|
|
|
45,847
|
|
Investment securities sold
|
|
|
120,045,435
|
|
|
889,278
|
|
|
–
|
Prepaid expenses
|
|
|
178,161
|
|
|
3,040
|
|
|
1,932
|
Due from Adviser
|
|
|
–
|
|
|
–
|
|
|
10,651
|
|
Total assets
|
|
|
5,340,140,590
|
|
|
67,261,066
|
|
|
26,465,710
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Cash overdraft
|
|
|
–
|
|
|
290,604
|
|
|
–
|
Payables:
|
|
|
|
|
|
|
|
|
|
|
Capital stock redeemed
|
|
|
15,678,285
|
|
|
37,976
|
|
|
99,483
|
|
Distributions payable
|
|
|
–
|
|
|
–
|
|
|
4
|
Accrued distribution service fees
|
|
|
436,916
|
|
|
2,590
|
|
|
–
|
Accrued management fees
|
|
|
2,588,099
|
|
|
32,038
|
|
|
6,600
|
Accrued transfer agent fees
|
|
|
653,530
|
|
|
20,019
|
|
|
7,600
|
Other accrued expenses
|
|
|
260,434
|
|
|
36,388
|
|
|
20,626
|
|
Total liabilities
|
|
|
19,617,264
|
|
|
419,615
|
|
|
134,313
|
NET ASSETS
|
|
$
|
5,320,523,326
|
|
$
|
66,841,451
|
|
$
|
26,331,397
|
NET ASSETS CONSIST OF:
|
|
|
|
|
|
|
|
|
|
Par value of shares of capital stock
|
|
$
|
159,519,811
|
|
$
|
1,802,070
|
|
$
|
2,633,140
|
Additional paid-in capital
|
|
|
3,003,960,036
|
|
|
73,932,613
|
|
|
23,698,257
|
Undistributed (overdistributed) net investment income
|
|
|
1,652,954
|
|
|
(741,136)
|
|
|
–
|
Accumulated net realized gains (losses) from investments
|
|
|
100,003,321
|
|
|
(8,460,925)
|
|
|
–
|
Net unrealized appreciation on investments and foreign currency transactions
|
|
|
2,055,387,204
|
|
|
308,829
|
|
|
–
|
|
Net Assets
|
|
$
|
5,320,523,326
|
|
$
|
66,841,451
|
|
$
|
26,331,397
|
|
|
|
|
|
|
|
|
|
|
|
*Including:
|
|
|
|
|
|
|
|
|
|
|
Cost of investments
|
|
$
|
3,149,988,192
|
|
$
|
65,951,956
|
|
$
|
25,934,120
|
|
Cost and market value of repurchase agreements (if greater than 10% of net assets)
|
|
|
–
|
|
|
–
|
|
|
11,410,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FUNDS
|
Statements of Assets and Liabilities – (Continued)
At December 31, 2012
|
|
|
|
Selected American
Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
CLASS S SHARES:
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
$
|
1,949,182,969
|
|
$
|
10,354,149
|
|
$
|
3,552,389
|
Shares outstanding
|
|
|
46,730,981
|
|
|
1,121,010
|
|
|
3,552,389
|
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding)
|
|
$
|
41.71
|
|
$
|
9.24
|
|
$
|
1.00
|
CLASS D SHARES:
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
$
|
3,371,340,357
|
|
$
|
56,487,302
|
|
$
|
22,779,008
|
Shares outstanding
|
|
|
80,884,868
|
|
|
6,087,271
|
|
|
22,779,008
|
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding)
|
|
$
|
41.68
|
|
$
|
9.28
|
|
$
|
1.00
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Statements of Operations
For the year ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected American
Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
|
|
Dividends*
|
|
$
|
129,216,084
|
|
$
|
1,220,983
|
|
$
|
–
|
Interest
|
|
|
641,484
|
|
|
581
|
|
|
51,503
|
Net securities lending fees
|
|
|
448,264
|
|
|
–
|
|
|
–
|
|
Total income
|
|
|
130,305,832
|
|
|
1,221,564
|
|
|
51,503
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Management fees (Note 3)
|
|
|
31,529,412
|
|
|
351,993
|
|
|
77,181
|
Custodian fees
|
|
|
858,231
|
|
|
74,843
|
|
|
13,704
|
Transfer agent fees:
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
2,747,502
|
|
|
47,302
|
|
|
18,246
|
|
Class D
|
|
|
1,208,203
|
|
|
39,502
|
|
|
13,195
|
Audit fees
|
|
|
57,600
|
|
|
21,000
|
|
|
17,400
|
Legal fees
|
|
|
74,251
|
|
|
4,965
|
|
|
4,272
|
Reports to shareholders
|
|
|
346,879
|
|
|
5,800
|
|
|
1,242
|
Directors’ fees and expenses
|
|
|
597,932
|
|
|
9,166
|
|
|
5,371
|
Registration and filing fees
|
|
|
90,005
|
|
|
38,002
|
|
|
37,772
|
Excise tax expense (Note 1)
|
|
|
–
|
|
|
–
|
|
|
873
|
Miscellaneous
|
|
|
251,533
|
|
|
12,889
|
|
|
7,339
|
Payments under distribution plan (Note 3):
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
5,610,269
|
|
|
25,945
|
|
|
9,065
|
Total expenses
|
|
|
43,371,817
|
|
|
631,407
|
|
|
205,660
|
Expenses paid indirectly (Note 4)
|
|
|
(150)
|
|
|
(1)
|
|
|
(6)
|
Reimbursement/waiver of expenses by Adviser/Distributor (Note 3)
|
|
|
–
|
|
|
–
|
|
|
(173,796)
|
|
Net expenses
|
|
|
43,371,667
|
|
|
631,406
|
|
|
31,858
|
Net investment income
|
|
|
86,934,165
|
|
|
590,158
|
|
|
19,645
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED & UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) from:
|
|
|
|
|
|
|
|
|
|
|
Investment transactions
|
|
|
337,703,404
|
|
|
(7,312,138)
|
|
|
–
|
|
Foreign currency transactions
|
|
|
(154,366)
|
|
|
(5,552)
|
|
|
–
|
Net realized gain (loss)
|
|
|
337,549,038
|
|
|
(7,317,690)
|
|
|
–
|
Net change in unrealized appreciation (depreciation)
|
|
|
299,122,581
|
|
|
17,811,822
|
|
|
–
|
|
Net realized and unrealized gain on investments and foreign currency transactions
|
|
|
636,671,619
|
|
|
10,494,132
|
|
|
–
|
Net increase in net assets resulting from operations
|
|
$
|
723,605,784
|
|
$
|
11,084,290
|
|
$
|
19,645
|
|
|
|
|
|
|
|
|
|
|
|
*Net of foreign taxes withheld as follows
|
|
$
|
1,804,397
|
|
$
|
138,068
|
|
$
|
–
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Statements of Changes in Net Assets
For the year ended December 31, 2012
|
|
|
|
Selected American
Shares
|
|
|
Selected International
Fund
|
|
|
Selected Daily
Government Fund
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
86,934,165
|
|
$
|
590,158
|
|
$
|
19,645
|
Net realized gain (loss) from investments and foreign currency transactions
|
|
|
337,549,038
|
|
|
(7,317,690)
|
|
|
–
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions
|
|
|
299,122,581
|
|
|
17,811,822
|
|
|
–
|
|
Net increase in net assets resulting from operations
|
|
|
723,605,784
|
|
|
11,084,290
|
|
|
19,645
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
|
|
|
|
|
|
|
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
(26,949,997)
|
|
|
(103,455)
|
|
|
(2,848)
|
|
Class D
|
|
|
(58,984,487)
|
|
|
(888,659)
|
|
|
(16,797)
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains from investment transactions:
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
(101,100,614)
|
|
|
–
|
|
|
–
|
|
Class D
|
|
|
(178,270,031)
|
|
|
–
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from capital share transactions (Note 5):
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
(586,531,841)
|
|
|
(1,877,020)
|
|
|
(62,339)
|
|
Class D
|
|
|
(352,847,056)
|
|
|
(2,986,034)
|
|
|
214,768
|
|
Total increase (decrease) in net assets
|
|
|
(581,078,242)
|
|
|
5,229,122
|
|
|
152,429
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
5,901,601,568
|
|
|
61,612,329
|
|
|
26,178,968
|
End of year
*
|
|
$
|
5,320,523,326
|
|
$
|
66,841,451
|
|
$
|
26,331,397
|
|
|
|
|
|
|
|
|
|
|
|
*Including undistributed (overdistributed) net investment income of
|
|
$
|
1,652,954
|
|
$
|
(741,136)
|
|
$
|
–
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Statements of Changes in Net Assets
For the year ended December 31, 2011
|
|
|
|
Selected American
Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
68,211,087
|
|
$
|
587,166
|
|
$
|
22,306
|
Net realized gain from investments and foreign currency transactions
|
|
|
701,646,189
|
|
|
17,467,037
|
|
|
–
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions
|
|
|
(1,049,314,077)
|
|
|
(36,117,556)
|
|
|
–
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
(279,456,801)
|
|
|
(18,063,353)
|
|
|
22,306
|
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
|
|
|
|
|
|
|
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
(10,137,257)
|
|
|
(223,736)
|
|
|
(3,130)
|
|
Class D
|
|
|
(26,949,004)
|
|
|
(1,141,130)
|
|
|
(19,176)
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains from investment transactions:
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
–
|
|
|
(958,263)
|
|
|
–
|
|
Class D
|
|
|
–
|
|
|
(4,281,564)
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL SHARE TRANSACTIONS:
|
|
|
|
|
|
|
|
|
|
Net decrease in net assets resulting from capital share transactions (Note 5):
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
|
(1,029,354,230)
|
|
|
(3,112,113)
|
|
|
(30,568)
|
|
Class D
|
|
|
(235,602,756)
|
|
|
(1,951,802)
|
|
|
(905,433)
|
|
Total decrease in net assets
|
|
|
(1,581,500,048)
|
|
|
(29,731,961)
|
|
|
(936,001)
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
7,483,101,616
|
|
|
91,344,290
|
|
|
27,114,969
|
End of year
*
|
|
$
|
5,901,601,568
|
|
$
|
61,612,329
|
|
$
|
26,178,968
|
|
|
|
|
|
|
|
|
|
|
|
*Including undistributed (overdistributed) net investment income of
|
|
$
|
592,195
|
|
$
|
(337,909)
|
|
$
|
–
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Notes to Financial Statements
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Selected Funds (“Funds”) consist of Selected American Shares, Inc. (a Maryland corporation) (“Selected American Shares”), Selected International Fund, Inc. (a Maryland corporation) (“Selected International Fund”), and Selected Capital Preservation Trust (an Ohio corporation) (“Trust”). The Trust consists of Selected Daily Government Fund. The Funds and Trust are registered under the Investment Company Act of 1940 (“40 Act”), as amended, as diversified, open-end management investment companies.
Selected American Shares’
investment objective is to achieve both capital growth and income. The Fund primarily invests in equity securities issued by large companies with market capitalizations of at least $10 billion. The Fund may hold securities in default, and is not obligated to dispose of securities whose issuers or underlying obligors subsequently default. As of December 31, 2012, the value of defaulted securities amounted to $2,295,147 (cost: $15,365,000) or 0.04% of the Fund’s net assets.
Selected International Fund
was formerly known as Selected Special Shares. Effective May 1, 2011, Selected International Fund modified its investment strategy to invest primarily in equity securities issued by foreign companies, including companies in developed or emerging markets. The Fund will continue to invest in large, medium, and small companies without regard to market capitalization and maintain its investment objective of achieving capital growth.
Selected Daily Government Fund’s
investment objective is to provide as high a level of current income as possible from the type of short-term investments in which it invests, consistent with prudent investment management, stability of principal, and maintenance of liquidity.
Selected Daily Government Fund invests exclusively in U.S. Treasury securities, U.S. Government agency securities, U.S. Government agency mortgage securities (collectively “U.S. Government Securities”), and repurchase agreements collateralized by U.S. Government Securities. The Fund seeks to maintain liquidity and preserve capital by carefully monitoring the maturity of its investments. The Fund’s portfolio maintains a dollar-weighted average maturity of sixty days or less.
An investment in any of the Funds, as with any mutual fund, includes risks that vary depending upon the Funds’ investment objectives and policies. There is no assurance that the investment objective of any fund will be achieved. The Funds’ return and net asset value will fluctuate, although Selected Daily Government Fund seeks to maintain a net asset value of $1.00 per share.
Class S and Class D shares are sold at net asset value. Income, expenses (other than those attributable to a specific class), and gains and losses are allocated daily to each class of shares based on the relative proportion of net assets represented by each class. Operating expenses directly attributable to a specific class are charged against the operations of that class. All classes have identical rights with respect to voting (exclusive of each class’ distribution arrangement), liquidation and distributions. Selected International Fund assesses a 2% fee on the proceeds of Fund shares that are redeemed (either by selling or exchanging to another Selected Fund) within 30 days of their purchase. The fee, which is retained by the Fund, is accounted for as an addition to paid-in capital. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)
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 stated 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 last quoted bid price. Securities traded on foreign exchanges are valued based upon the last sales price on the principal exchange on which the security is traded prior to the time when the Funds’ assets are valued. Fixed income securities with more than 60 days to maturity are generally valued using evaluated prices or matrix pricing methods determined by an independent pricing service which takes into consideration factors such as yield, maturity, liquidity, ratings, and traded prices in identical or similar securities. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what Davis Selected Advisers, L.P. (“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 using a standardized fair valuation methodology applicable to the security type or the significant event as previously approved by the Funds’ Pricing Committee and Board of Directors. The Pricing Committee considers all facts it deems relevant that are reasonably available, through either public information or information available to the Adviser’s portfolio management team, when determining the fair value of a security. To assess the continuing appropriateness of security valuations, the Adviser may compare prior day prices, prices of comparable securities, and sale prices to the prior or current day prices and challenge those prices exceeding certain tolerance levels with the third-party pricing service or broker source. Fair value determinations are subject to review, approval, and ratification by the Funds’ Board of Directors at its next regularly scheduled meeting covering the calendar quarter in which the fair valuation was determined.
Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. For Selected Daily Government Fund, in compliance with Rule 2a-7 of the 40 Act, securities are valued at amortized cost, which approximates market value.
The Funds’ valuation procedures are reviewed and subject to approval by the Board of Directors. There have been no significant changes to the fair valuation procedures during the period.
Value Measurements
- 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 market for the investment. Various inputs are used to determine the fair value of the Funds’ investments. These inputs are 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 the Fund’s own assumptions in determining the fair value of investments)
|
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Funds can obtain the fair value assigned to a security if they were to sell the security. Money market securities are valued using amortized cost, in accordance with rules under the 40 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)
Value Measurements - (Continued)
The following is a summary of the inputs used as of December 31, 2012 in valuing each Fund’s investments carried at value:
|
Investments in Securities at Value
|
|
Selected
|
|
Selected
|
|
Selected Daily
|
|
American
|
|
International
|
|
Government
|
|
Shares
|
|
Fund
|
|
Fund
|
Valuation inputs
|
|
|
|
|
|
|
|
|
Level 1 – Quoted Prices:
|
|
|
|
|
|
|
|
|
Equity securities
:
|
|
|
|
|
|
|
|
|
Consumer discretionary
|
$
|
461,800,834
|
|
$
|
3,845,696
|
|
$
|
–
|
Consumer staples
|
|
714,426,167
|
|
|
2,438,892
|
|
|
–
|
Energy
|
|
499,776,663
|
|
|
2,608,263
|
|
|
–
|
Financials
|
|
1,755,097,766
|
|
|
1,958,851
|
|
|
–
|
Health care
|
|
145,393,498
|
|
|
1,644,387
|
|
|
–
|
Industrials
|
|
128,660,101
|
|
|
3,129,549
|
|
|
–
|
Information technology
|
|
484,617,895
|
|
|
2,214,875
|
|
|
–
|
Materials
|
|
310,512,947
|
|
|
954,181
|
|
|
–
|
Telecommunication services
|
|
10,008,976
|
|
|
2,518,326
|
|
|
–
|
Total Level 1
|
|
4,510,294,847
|
|
|
21,313,020
|
|
|
–
|
|
|
|
|
|
|
|
|
|
Level 2 – Other Significant Observable Inputs:
|
|
|
|
|
|
|
|
|
Equity securities
*:
|
|
|
|
|
|
|
|
|
Consumer discretionary
|
|
23,358,823
|
|
|
4,439,144
|
|
|
–
|
Consumer staples
|
|
166,040,419
|
|
|
7,100,058
|
|
|
–
|
Financials
|
|
189,451,328
|
|
|
8,421,736
|
|
|
–
|
Health care
|
|
–
|
|
|
7,717,123
|
|
|
–
|
Industrials
|
|
155,098,715
|
|
|
12,680,731
|
|
|
–
|
Materials
|
|
80,206,630
|
|
|
4,589,543
|
|
|
–
|
Short-term debt securities issued by U.S. Treasuries
and U.S. Government corporations and agencies
|
|
–
|
|
|
–
|
|
|
14,524,120
|
Convertible debt securities
|
|
2,295,147
|
|
|
–
|
|
|
–
|
Short-term securities
|
|
78,300,000
|
|
|
–
|
|
|
11,410,000
|
Total Level 2
|
|
694,751,062
|
|
|
44,948,335
|
|
|
25,934,120
|
|
|
|
|
|
|
|
|
|
Level 3 – Significant Unobservable Inputs:
|
|
–
|
|
|
–
|
|
|
–
|
Total Investments
|
$
|
5,205,045,909
|
|
$
|
66,261,355
|
|
$
|
25,934,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 to Level 2 Transfers
**
:
|
|
|
|
|
|
|
|
|
Consumer discretionary
|
$
|
23,358,823
|
|
$
|
4,439,144
|
|
$
|
–
|
Consumer staples
|
|
166,040,419
|
|
|
7,100,058
|
|
|
–
|
Financials
|
|
189,451,328
|
|
|
8,421,736
|
|
|
–
|
Health care
|
|
–
|
|
|
7,717,123
|
|
|
–
|
Industrials
|
|
155,098,715
|
|
|
11,977,211
|
|
|
–
|
Materials
|
|
80,206,630
|
|
|
4,589,543
|
|
|
–
|
Total
|
$
|
614,155,915
|
|
$
|
44,244,815
|
|
$
|
–
|
|
|
|
|
|
|
|
|
|
*Includes certain securities trading primarily outside the U.S. whose value the Fund adjusted as a result of significant market movements following the close of local trading.
**Application of fair value procedures for securities traded on foreign exchanges triggered the transfers of investments between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2012.
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)
Value Measurements - (Continued)
The following table reconciles the valuation of assets in which significant unobservable inputs (Level 3) were used in determining fair value during the year ended December 31, 2012:
|
|
Selected
American
Shares
|
|
Selected
International
Fund
|
Investment Securities:
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
3,391,994
|
|
$
|
148,005
|
Net realized loss
|
|
|
(71,416,959)
|
|
|
(4,315,402)
|
Decrease in unrealized depreciation
|
|
|
68,024,965
|
|
|
4,167,397
|
Ending balance
|
|
$
|
–
|
|
$
|
–
|
|
|
|
|
|
|
|
There were no transfers of investments into or out of Level 3 of the fair value hierarchy during the period. Realized and unrealized gains (losses) are included in the related amounts on investments in the Statements of Operations.
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.
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 sales of investments together with market gains and losses on such investments in the Statements of Operations.
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)
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 tax is required. Selected Daily Government Fund incurred a 2011 federal excise tax liability of $873 during the year ended December 31, 2012. The Adviser has analyzed the Funds’ tax positions taken on federal and state income tax returns for all open tax years and has concluded that as of December 31, 2012, no provision for income tax is required in the Funds’ financial statements related to these tax positions. The Funds’ federal and state (Arizona) income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2009.
At December 31, 2012, Selected International Fund had available for federal income tax purposes unused capital loss carryforwards with no expiration as follows:
|
Capital Loss
Carryforwards
|
|
|
|
Short-term
|
$
|
543,000
|
Long-term
|
|
7,659,000
|
Total
|
$
|
8,202,000
|
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. 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 passive foreign investment company shares. 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 certain components of capital to reflect permanent differences between financial statement amounts and net income and realized gains/losses determined in accordance with income tax rules. Accordingly, during the year ended December 31, 2012, for Selected American Shares, amounts have been reclassified to reflect an increase in undistributed net investment income of $61,078, a decrease in accumulated net realized gains from investments and foreign currency transactions of $42,293,368, and an increase in additional paid in capital of $42,232,290; for Selected International Fund, amounts have been reclassified to reflect an increase in overdistributed net investment income of $1,271 and a corresponding decrease to accumulated net realized losses from investments and foreign currency transactions. The Funds’ net assets have not been affected by these reclassifications.
The tax character of distributions paid during the years ended December 31, 2012 and 2011 was as follows:
|
|
Ordinary
Income
|
|
|
Long-Term
Capital Gain
|
|
|
Return of
Capital
|
|
|
Total
|
Selected American Shares
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
$
|
93,691,338
|
|
$
|
271,613,791
|
|
$
|
–
|
|
$
|
365,305,129
|
2011
|
|
37,086,261
|
|
|
–
|
|
|
–
|
|
|
37,086,261
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected International Fund
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
992,114
|
|
|
–
|
|
|
–
|
|
|
992,114
|
2011
|
|
1,384,282
|
|
|
5,220,411
|
|
|
–
|
|
|
6,604,693
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Daily Government Fund
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
19,645
|
|
|
–
|
|
|
–
|
|
|
19,645
|
2011
|
|
22,306
|
|
|
–
|
|
|
–
|
|
|
22,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (CONTINUED)
Dividends and Distributions to Shareholders - (Continued)
As of December 31, 2012, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
|
Selected
American
Shares
|
|
Selected
International
Fund
|
Undistributed net investment income
|
$
|
6,811,494
|
|
$
|
218,217
|
Undistributed long-term capital gain
|
|
97,635,178
|
|
|
–
|
Accumulated net realized losses from investments and foreign currency transactions
|
|
–
|
|
|
(8,201,752)
|
Net unrealized appreciation (depreciation) on investments
|
|
2,055,383,738
|
|
|
(872,062)
|
Total
|
$
|
2,159,830,410
|
|
$
|
(8,855,597)
|
|
|
|
|
|
|
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.
Directors/Trustees Fees and Expenses
- The Funds set up a Rabbi Trust to provide for the deferred compensation plan for Independent Directors/Trustees that enables them to elect to defer receipt of all or a portion of annual fees they are entitled to receive. The value of an eligible Director’s/Trustee’s account is based upon years of service and fees paid to each Director/Trustee during the years of service. The amount paid to the Director/Trustee by the Trust under the plan will be determined based upon the performance of the Selected Funds in which the amounts are invested.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investment securities (excluding short-term securities) during the year ended December 31, 2012 were as follows:
|
Selected
American
Shares
|
|
Selected
International
Fund
|
Cost of purchases
|
$
|
358,353,383
|
|
$
|
3,825,020
|
Proceeds from sales
|
|
1,606,330,149
|
|
|
10,058,084
|
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 3 - FEES AND OTHER TRANSACTIONS WITH AFFILIATES
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.
Certain Directors/Trustees and Officers of the Funds are also Directors/Trustees and Officers of the general partner of the Adviser.
Investment Advisory Fees and Reimbursement of Expenses -
Advisory fees are paid monthly to the Adviser. The annual rate for Selected American Shares is 0.55% of the average net assets for the first $3 billion, 0.54% on the next $1 billion, 0.53% on the next $1 billion, 0.52% on the next $1 billion, 0.51% on the next $1 billion, 0.50% on the next $3 billion, and 0.485% of the average net assets in excess of $10 billion. Advisory fees paid during the year ended December 31, 2012 approximated 0.54% of average net assets for Selected American Shares. The fixed annual rate for Selected International Fund is 0.55% of the average net assets. The fixed annual rate for Selected Daily Government Fund is 0.30% of the average net assets. The Adviser is contractually committed to waive fees and/or reimburse Selected Daily Government Fund’s expenses so that net investment income will not be less than zero until May 1, 2013. During the year ended December 31, 2012, such reimbursements amounted to $37,118 and $127,613 for Class S and Class D shares, respectively. The Adviser may recapture from the assets of Selected Daily Government Fund any of the operating expenses it has reimbursed (but not any of the management fees which it has waived, if any) until the end of the third calendar year after the end of the calendar year in which such reimbursement occurs, subject to certain limitations. This recapture could negatively affect the Fund’s future yield.
Transfer Agent and Accounting Fees -
Boston Financial Data Services, Inc. (“BFDS”) is the Funds’ primary transfer agent. The Adviser is also paid for certain transfer agent services. The fee paid to the Adviser during the year ended December 31, 2012 was $192,914, $13,426, and $4,313 for Selected American Shares, Selected International Fund, and Selected Daily Government Fund, respectively. State Street Bank and Trust Company (“State Street Bank”) is the Funds’ primary accounting provider. Fees for such services are included in the custodian fees as State Street Bank also serves as the Funds’ custodian.
Distribution Service Fees and Waivers of Expenses -
For services under the distribution agreement, the Funds’ Class S shares pay an annual fee of 0.25% of average daily net assets. During the year ended December 31, 2012, Selected American Shares, Selected International Fund, and Selected Daily Government Fund incurred distribution services fees totaling $5,610,269, $25,945, and $9,065, respectively.
Davis Distributors, LLC, the Funds’ Distributor, entered into an agreement with Selected Daily Government Fund to temporarily eliminate the 0.25% distribution fee on Class S shares until December 31, 2013. During the year ended December 31, 2012, such fee elimination amounted to $9,065.
There are no distribution service fees for the Funds’ Class D shares.
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. Such reductions amounted to $150, $1, and $6 for Selected American Shares, Selected International Fund, and Selected Daily Government Fund, respectively, during the year ended December 31, 2012.
NOTE 5 - CAPITAL STOCK
At December 31, 2012, there were 600 million shares of capital stock of Selected American Shares ($1.25 par value per share) authorized. At December 31, 2012, there were 50 million shares of capital stock of Selected International Fund ($0.25 par value per share) authorized. At December 31, 2012, there were unlimited shares of capital stock of Selected Capital Preservation Trust ($0.10 par value per share) authorized.
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 5 - CAPITAL STOCK – (CONTINUED)
Transactions in capital stock were as follows:
Class S
|
|
Year ended December 31, 2012
|
|
|
|
Selected
American Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
Shares sold
|
|
|
3,666,000
|
|
|
22,816
|
|
|
1,894,756
|
Shares issued in reinvestment of distributions
|
|
|
2,928,292
|
|
|
11,007
|
|
|
2,585
|
|
|
|
6,594,292
|
|
|
33,823
|
|
|
1,897,341
|
Shares redeemed
|
|
|
(20,276,718)
|
|
|
(253,777)
|
|
|
(1,959,680)
|
|
Net decrease
|
|
|
(13,682,426)
|
|
|
(219,954)
|
|
|
(62,339)
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
$
|
156,515,581
|
|
$
|
196,905
|
|
$
|
1,894,756
|
Proceeds from shares issued in reinvestment of distributions
|
|
|
123,691,051
|
|
|
100,486
|
|
|
2,585
|
|
|
|
280,206,632
|
|
|
297,391
|
|
|
1,897,341
|
Cost of shares redeemed*
|
|
|
(866,738,473)
|
|
|
(2,174,411)
|
|
|
(1,959,680)
|
|
Net decrease
|
|
$
|
(586,531,841)
|
|
$
|
(1,877,020)
|
|
$
|
(62,339)
|
|
|
|
|
|
|
|
|
|
|
|
* Net of redemption fees as follows
|
|
|
NA
|
|
$
|
32
|
|
|
NA
|
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
Year ended December 31, 2011
|
|
|
|
Selected
American Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
Shares sold
|
|
|
6,302,959
|
|
|
44,151
|
|
|
2,197,445
|
Shares issued in reinvestment of distributions
|
|
|
252,362
|
|
|
109,974
|
|
|
3,077
|
|
|
|
6,555,321
|
|
|
154,125
|
|
|
2,200,522
|
Shares redeemed
|
|
|
(31,775,222)
|
|
|
(468,391)
|
|
|
(2,231,090)
|
|
Net decrease
|
|
|
(25,219,901)
|
|
|
(314,266)
|
|
|
(30,568)
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
$
|
259,996,166
|
|
$
|
432,260
|
|
$
|
2,197,445
|
Proceeds from shares issued in reinvestment of distributions
|
|
|
9,874,907
|
|
|
1,132,727
|
|
|
3,077
|
|
|
|
269,871,073
|
|
|
1,564,987
|
|
|
2,200,522
|
Cost of shares redeemed*
|
|
|
(1,299,225,303)
|
|
|
(4,677,100)
|
|
|
(2,231,090)
|
|
Net decrease
|
|
$
|
(1,029,354,230)
|
|
$
|
(3,112,113)
|
|
$
|
(30,568)
|
|
|
|
|
|
|
|
|
|
|
|
* Net of redemption fees as follows
|
|
|
NA
|
|
$
|
84
|
|
|
NA
|
|
|
|
|
|
|
|
|
|
|
|
Class D
|
|
Year ended December 31, 2012
|
|
|
|
Selected
American Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
Shares sold
|
|
|
4,033,182
|
|
|
52,742
|
|
|
6,238,089
|
Shares issued in reinvestment of distributions
|
|
|
4,143,093
|
|
|
60,795
|
|
|
16,596
|
|
|
|
8,176,275
|
|
|
113,537
|
|
|
6,254,685
|
Shares redeemed
|
|
|
(16,458,149)
|
|
|
(464,549)
|
|
|
(6,039,917)
|
|
Net increase (decrease)
|
|
|
(8,281,874)
|
|
|
(351,012)
|
|
|
214,768
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
$
|
173,137,874
|
|
$
|
459,981
|
|
$
|
6,238,089
|
Proceeds from shares issued in reinvestment of distributions
|
|
|
174,879,975
|
|
|
557,532
|
|
|
16,596
|
|
|
|
348,017,849
|
|
|
1,017,513
|
|
|
6,254,685
|
Cost of shares redeemed*
|
|
|
(700,864,905)
|
|
|
(4,003,547)
|
|
|
(6,039,917)
|
|
Net increase (decrease)
|
|
$
|
(352,847,056)
|
|
$
|
(2,986,034)
|
|
$
|
214,768
|
|
|
|
|
|
|
|
|
|
|
|
* Net of redemption fees as follows
|
|
|
NA
|
|
$
|
20
|
|
|
NA
|
SELECTED FUNDS
|
Notes to Financial Statements – (Continued)
December 31, 2012
|
NOTE 5 - CAPITAL STOCK – (CONTINUED)
Class D
|
|
Year ended December 31, 2011
|
|
|
|
Selected
American Shares
|
|
|
Selected
International Fund
|
|
|
Selected Daily
Government Fund
|
Shares sold
|
|
|
8,826,521
|
|
|
126,216
|
|
|
5,875,603
|
Shares issued in reinvestment of distributions
|
|
|
508,911
|
|
|
338,390
|
|
|
18,944
|
|
|
|
9,335,432
|
|
|
464,606
|
|
|
5,894,547
|
Shares redeemed
|
|
|
(15,178,697)
|
|
|
(666,106)
|
|
|
(6,799,980)
|
|
Net decrease
|
|
|
(5,843,265)
|
|
|
(201,500)
|
|
|
(905,433)
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold
|
|
$
|
359,256,199
|
|
$
|
1,214,758
|
|
$
|
5,875,603
|
Proceeds from shares issued in reinvestment of distributions
|
|
|
19,898,430
|
|
|
3,469,456
|
|
|
18,944
|
|
|
|
379,154,629
|
|
|
4,684,214
|
|
|
5,894,547
|
Cost of shares redeemed*
|
|
|
(614,757,385)
|
|
|
(6,636,016)
|
|
|
(6,799,980)
|
|
Net decrease
|
|
$
|
(235,602,756)
|
|
$
|
(1,951,802)
|
|
$
|
(905,433)
|
|
|
|
|
|
|
|
|
|
|
|
* Net of redemption fees as follows
|
|
|
NA
|
|
$
|
548
|
|
|
NA
|
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 higher of the Federal Funds Rate or the Overnight Libor Rate, plus 1.25%. The Funds had no borrowings during the year ended December 31, 2012.
NOTE 7 - SECURITIES LOANED
Selected American Shares (“Fund”) has entered into a securities lending arrangement with State Street Bank. Under the terms of the agreement, the Fund receives fee income from lending transactions; in exchange for such fees, State Street Bank is authorized to loan securities on behalf of the Fund, against receipt of collateral at least equal to the value of the securities loaned. As of December 31, 2012, the Fund did not have any securities on loan. The Fund bears the risk of any deficiency in the amount of the collateral available for return to a borrower due to a loss in an approved investment.
NOTE 8 - RESTRICTED SECURITIES
Restricted securities are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. They are valued under methods approved by the Board of Directors as reflecting fair value.
The aggregate value of restricted securities in Selected American Shares amounted to $2,295,147 or 0.04% of the Fund’s net assets as of December 31, 2012.
Information regarding restricted securities is as follows:
Fund
|
|
Security
|
|
Acquisition
Date
|
|
|
Principal
|
|
Units
|
|
|
Cost per Unit
|
|
|
Valuation per
Unit as of
December 31,
2012
|
Selected
American
Shares
|
|
Sino-Forest Corp., Conv. Sr.
Notes, 5.00%, 08/01/13
|
|
07/17/08
|
|
$
|
15,365,000
|
|
153,650
|
|
$
|
100.00
|
|
$
|
14.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Income (Loss)
|
Net Realized and Unrealized Gains (Losses)
|
Total from
Investment Operations
|
Selected American Shares Class S:
|
|
|
|
|
Year ended December 31, 2012
|
$39.47
|
$0.54
d
|
$4.55
|
$5.09
|
Year ended December 31, 2011
|
$41.44
|
$0.34
d
|
$(2.14)
|
$(1.80)
|
Year ended December 31, 2010
|
$37.28
|
$0.30
d
|
$4.35
|
$4.65
|
Year ended December 31, 2009
|
$28.54
|
$0.27
d
|
$8.76
|
$9.03
|
Year ended December 31, 2008
|
$47.78
|
$0.34
d
|
$(19.23)
|
$(18.89)
|
Selected American Shares Class D:
|
|
|
|
|
Year ended December 31, 2012
|
$39.44
|
$0.70
d
|
$4.54
|
$5.24
|
Year ended December 31, 2011
|
$41.41
|
$0.47
d
|
$(2.14)
|
$(1.67)
|
Year ended December 31, 2010
|
$37.25
|
$0.43
d
|
$4.35
|
$4.78
|
Year ended December 31, 2009
|
$28.50
|
$0.36
d
|
$8.77
|
$9.13
|
Year ended December 31, 2008
|
$47.79
|
$0.48
d
|
$(19.28)
|
$(18.80)
|
Selected International Fund Class S:
|
|
|
|
|
Year ended December 31, 2012
|
$7.89
|
$0.03
d
|
$1.41
|
$1.44
|
Year ended December 31, 2011
|
$11.00
|
$0.03
d
|
$(2.31)
|
$(2.28)
|
Year ended December 31, 2010
|
$9.78
|
$0.09
d
|
$1.25
|
$1.34
|
Year ended December 31, 2009
|
$6.80
|
$0.03
d
|
$2.98
|
$3.01
|
Year ended December 31, 2008
|
$12.30
|
$0.04
d
|
$(5.54)
|
$(5.50)
|
Selected International Fund Class D:
|
|
|
|
|
Year ended December 31, 2012
|
$7.93
|
$0.09
d
|
$1.41
|
$1.50
|
Year ended December 31, 2011
|
$11.02
|
$0.08
d
|
$(2.32)
|
$(2.24)
|
Year ended December 31, 2010
|
$9.79
|
$0.14
d
|
$1.25
|
$1.39
|
Year ended December 31, 2009
|
$6.81
|
$0.07
d
|
$2.98
|
$3.05
|
Year ended December 31, 2008
|
$12.30
|
$0.08
d
|
$(5.54)
|
$(5.46)
|
Selected Daily Government Fund Class S:
|
|
|
|
|
Year ended December 31, 2012
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2011
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2010
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2009
|
$1.000
|
$0.002
|
$–
|
$0.002
|
Year ended December 31, 2008
|
$1.000
|
$0.020
|
$–
|
$0.020
|
Selected Daily Government Fund Class D:
|
|
|
|
|
Year ended December 31, 2012
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2011
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2010
|
$1.000
|
$0.001
|
$–
|
$0.001
|
Year ended December 31, 2009
|
$1.000
|
$0.003
|
$–
|
$0.003
|
Year ended December 31, 2008
|
$1.000
|
$0.024
|
$–
|
$0.024
|
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.
|
|
|
b
|
The ratios in this column reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements and/or waivers from the Adviser/Distributor.
|
|
|
c
|
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.
|
|
|
d
|
Per share calculations were based on average shares outstanding for the period.
|
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 Return
a
|
Net Assets,
End of Period
(in millions)
|
Gross
Expense
Ratio
|
Net Expense Ratio
b
|
Net
Investment Income
(Loss) Ratio
|
Portfolio Turnover
c
|
|
|
|
|
|
|
|
|
|
|
|
$(0.60)
|
$(2.25)
|
$–
|
$(2.85)
|
$41.71
|
12.82%
|
$1,949
|
0.95%
|
0.95%
|
1.28%
|
7%
|
$(0.17)
|
$–
|
$–
|
$(0.17)
|
$39.47
|
(4.35)%
|
$2,385
|
0.94%
|
0.94%
|
0.81%
|
11%
|
$(0.49)
|
$–
|
$–
|
$(0.49)
|
$41.44
|
12.53%
|
$3,549
|
0.93%
|
0.93%
|
0.80%
|
9%
|
$(0.29)
|
$–
|
$–
|
$(0.29)
|
$37.28
|
31.64%
|
$4,742
|
0.94%
|
0.94%
|
0.86%
|
11%
|
$(0.34)
|
$–
|
$(0.01)
|
$(0.35)
|
$28.54
|
(39.44)%
|
$4,481
|
0.92%
|
0.92%
|
0.86%
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
$(0.75)
|
$(2.25)
|
$–
|
$(3.00)
|
$41.68
|
13.19%
|
$3,371
|
0.61%
|
0.61%
|
1.62%
|
7%
|
$(0.30)
|
$–
|
$–
|
$(0.30)
|
$39.44
|
(4.02)%
|
$3,517
|
0.61%
|
0.61%
|
1.14%
|
11%
|
$(0.62)
|
$–
|
$–
|
$(0.62)
|
$41.41
|
12.90%
|
$3,934
|
0.60%
|
0.60%
|
1.13%
|
9%
|
$(0.38)
|
$–
|
$–
|
$(0.38)
|
$37.25
|
32.06%
|
$3,654
|
0.61%
|
0.61%
|
1.19%
|
11%
|
$(0.48)
|
$–
|
$(0.01)
|
$(0.49)
|
$28.50
|
(39.24)%
|
$2,881
|
0.59%
|
0.59%
|
1.19%
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
$(0.09)
|
$–
|
$–
|
$(0.09)
|
$9.24
|
18.29%
|
$10
|
1.52%
|
1.52%
|
0.39%
|
6%
|
$(0.16)
|
$(0.67)
|
$–
|
$(0.83)
|
$7.89
|
(22.49)%
|
$11
|
1.32%
|
1.32%
|
0.34%
|
110%
e
|
$(0.12)
|
$–
|
$–
|
$(0.12)
|
$11.00
|
13.73%
f
|
$18
|
1.23%
|
1.23%
|
0.92%
|
28%
|
$(0.03)
|
$–
|
$–
|
$(0.03)
|
$9.78
|
44.21%
|
$19
|
1.32%
|
1.32%
|
0.38%
|
24%
|
$–
|
$–
|
$–
|
$–
|
$6.80
|
(44.72)%
|
$16
|
1.26%
|
1.26%
|
0.43%
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
$(0.15)
|
$–
|
$–
|
$(0.15)
|
$9.28
|
18.90%
|
$56
|
0.88%
|
0.88%
|
1.03%
|
6%
|
$(0.18)
|
$(0.67)
|
$–
|
$(0.85)
|
$7.93
|
(22.05)%
|
$51
|
0.81%
|
0.81%
|
0.85%
|
110%
e
|
$(0.16)
|
$–
|
$–
|
$(0.16)
|
$11.02
|
14.30%
f
|
$73
|
0.76%
|
0.76%
|
1.39%
|
28%
|
$(0.07)
|
$–
|
$–
|
$(0.07)
|
$9.79
|
44.72%
|
$67
|
0.84%
|
0.84%
|
0.86%
|
24%
|
$(0.03)
|
$–
|
$–
g
|
$(0.03)
|
$6.81
|
(44.40)%
|
$48
|
0.86%
|
0.86%
|
0.83%
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$4
|
1.40%
|
0.12%
|
0.08%
|
NA
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$4
|
1.33%
|
0.08%
|
0.08%
|
NA
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$4
|
1.29%
|
0.22%
|
0.08%
|
NA
|
$(0.002)
|
$–
|
$–
|
$(0.002)
|
$1.000
|
0.20%
|
$4
|
1.17%
|
0.54%
|
0.31%
|
NA
|
$(0.020)
|
$–
|
$–
|
$(0.020)
|
$1.000
|
2.05%
|
$4
|
0.94%
|
0.75%
|
2.09%
|
NA
|
|
|
|
|
|
|
|
|
|
|
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$23
|
0.70%
|
0.12%
|
0.08%
|
NA
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$23
|
0.67%
|
0.08%
|
0.08%
|
NA
|
$(0.001)
|
$–
|
$–
|
$(0.001)
|
$1.000
|
0.08%
|
$23
|
0.67%
|
0.22%
|
0.08%
|
NA
|
$(0.003)
|
$–
|
$–
|
$(0.003)
|
$1.000
|
0.29%
|
$24
|
0.57%
|
0.44%
|
0.41%
|
NA
|
$(0.024)
|
$–
|
$–
|
$(0.024)
|
$1.000
|
2.40%
|
$67
|
0.40%
|
0.40%
|
2.44%
|
NA
|
e
|
As a result of the change in investment strategy on May 1, 2011, from investing primarily in domestic equity securities to investing primarily in foreign equity securities, portfolio turnover was unusually high.
|
|
|
f
|
Selected International Fund made a favorable investment in an initial public offering (IPO), which had a material impact on the investment performance, adding approximately 2% to the Fund’s total return in 2010. The IPO was purchased with the intent to benefit from long-term growth of the underlying company and the rapid appreciation was an unusual occurrence. Such performance may not continue in the future.
|
|
|
g
|
Less than $0.005 per share.
|
|
|
See Notes to Financial Statements
|
SELECTED FUNDS
|
Report of Independent Registered Public Accounting Firm
|
The Shareholders and Board of Directors/Trustees
Selected American Shares, Inc., Selected International Fund, Inc., and Selected Capital Preservation Trust:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Selected American Shares, Inc., Selected International Fund, Inc., and Selected Daily Government Fund (a series of Selected Capital Preservation Trust), as of December 31, 2012, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Selected American Shares, Inc., Selected International Fund, Inc., and Selected Daily Government Fund as of December 31, 2012, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Denver, Colorado
February 20, 2013
SELECTED FUNDS
|
Federal Income Tax Information
(Unaudited)
|
In early 2013, shareholders will receive information regarding all dividends and distributions paid to them by the Funds during the calendar year 2012. Regulations of the U.S. Treasury Department require the Funds to report this information to the Internal Revenue Service.
The information and distributions reported herein may differ from the information reported as distributions taxable to certain shareholders for the calendar year 2012 with their 2012 Form 1099-DIV.
The information is presented to assist shareholders in reporting dividends and distributions received from the Funds to the Internal Revenue Service. Because of the complexity of the federal regulations that may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax adviser for specific guidance.
Each Fund designates the following amounts distributed during the calendar year ended December 31, 2012, if any, as dividends eligible for the corporate dividends-received deduction, qualified dividend income, and long-term capital gain distributions.
|
|
Selected
American
Shares
|
|
|
Selected
International
Fund
|
|
|
|
|
|
|
Income dividends
|
$
|
93,691,338
|
|
$
|
992,114
|
Income qualifying for corporate dividends-received deduction
|
$
|
93,691,338
|
|
$
|
–
|
|
100%
|
|
|
–
|
Qualified dividend income
|
$
|
93,691,338
|
|
$
|
852,382
|
|
100%
|
|
|
86%
|
Long-term capital gain distributions
|
$
|
271,613,791
|
|
$
|
–
|
Pursuant to Section 853 of the Internal Revenue Code, Selected International Fund elected to pass through to its shareholders foreign taxes paid during the year ended December 31, 2012. The Fund did not derive any income from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes. Information regarding foreign taxes paid and foreign sourced income is detailed below.
|
|
|
Selected
International
Fund
|
|
|
|
|
|
|
Foreign taxes paid
|
|
$
|
113,158
|
|
|
|
|
|
|
Foreign sourced income
|
|
$
|
1,361,358
|
|
|
|
|
|
|
% of income dividend derived from foreign sourced income
|
|
|
100%
|
|
SELECTED FUNDS
|
Privacy Notice and Householding
|
Privacy Notice
While you generally will be dealing with a broker-dealer or other financial adviser, we may collect information about you from your account application and other forms that you may deliver to us. We use this information to process your requests and transactions; for example, to provide you with additional information about our Funds, to open an account for you, or to process a transaction. In order to service your account and execute your transactions, we may provide your personal information to firms that assist us in servicing your account, such as our transfer agent. We may also provide your name and address to one of our agents for the purpose of mailing to you your account statement and other information about our products and services. We require these outside firms and agents to protect the confidentiality of your information and to use the information only for the purpose for which the disclosure is made. We do not provide customer names and addresses to outside firms, organizations, or individuals except in furtherance of our business relationship with you or as otherwise allowed by law.
We restrict access to nonpublic personal information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your personal information.
Householding
To avoid sending duplicate copies of materials to households, the Funds will mail only one copy of each prospectus, Annual and Semi-Annual Report to shareholders having the same last name and address on the Funds’ records. The consolidation of these mailings, called householding, benefits the Funds through reduced mailing expense. If you do not want the mailing of these documents to be combined with those to other members of your household, please contact the Selected Funds by phone at 1-800-243-1575. Individual copies of current prospectuses and reports will be sent to you within 30 days after the Funds receive your request to stop householding.
SELECTED FUNDS
|
Directors and Officers
|
For the purposes of their service as directors to the Selected Funds, the business address for each of the directors is 2949 E. Elvira Road, Suite 101, Tucson, AZ 85756. Each Director serves until retirement, resignation, death, or removal. Directors must retire from the Board of Directors and cease being a Director at the close of business on the last day of the calendar year in which the Director attains age 75.
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
|
|
|
|
|
|
William P. Barr
(05/23/50)
|
Director
|
Director since 1994
|
Of Counsel to Kirkland & Ellis LLP (law firm) until July 2009; Executive Vice President and General Counsel, Verizon (a telecommunications company) from 1994 through 2008.
|
3
|
Director, Time Warner, Inc. (media and entertainment company); Director, Dominion Resources (energy company).
|
|
|
|
|
|
|
Francisco L. Borges
(11/17/51)
|
Director
|
Director since 2006
|
Chairman and Managing Partner, Landmark Partners, Inc. (private equity firm) since March 1999.
|
3
|
Trustee, John S. and James L. Knight Foundation; Trustee, Connecticut Public Broadcasting Network; Director, University of Connecticut Health Center; Director, Assured Guaranty Ltd.
|
|
|
|
|
|
|
Jerome E. Hass
(06/01/40)
|
Director
(passed away in January 2013)
|
Director since 1997
|
James B. Rubin Professor of Finance and Business Strategy Emeritus, Johnson Graduate School of Management, Cornell University, since 1967; Consultant, National Economic Research Associates, since 1985.
|
3
|
None
|
|
|
|
|
|
|
Katherine L. MacWilliams
(01/19/56)
|
Director
|
Director since 1997
|
Retired; former Chief Financial Officer, Caridian BCT, Inc. (a medical device company); former Chief Financial Officer, Coors Brewers Limited, a division of Molson Coors Brewing Company.
|
3
|
None
|
|
|
|
|
|
|
James J. McMonagle
(10/01/44)
|
Director/
Chairman
|
Director since 1990
|
Chairman, Selected Funds Board of Directors since 1997; of Counsel to Vorys, Sater, Seymour and Pease LLP (law firm) since 2002.
|
3
|
Director, Owens Corning (producer of residential and commercial building materials).
|
|
|
|
|
|
|
Richard O’Brien
(09/12/45)
|
Director
|
Director since 1996
|
Retired Corporate Economist, Hewlett-Packard Company.
|
3
|
None
|
|
|
|
|
|
|
SELECTED FUNDS
|
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*
|
|
|
|
|
|
Andrew A. Davis
(06/25/63)
|
Director
|
Director since 1998
|
President or Vice President of each Selected 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).
|
|
|
|
|
|
|
Christopher C. Davis
(07/13/65)
|
Director
|
Director since 1998
|
President or Vice President of each Selected Fund, Davis Fund, and Clipper Fund; 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; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).
|
16
|
Director, Davis Funds (consisting of 13 portfolios); Director, Washington Post Co. (publishing company).
|
* Andrew A. Davis and Christopher C. Davis own partnership units (directly, indirectly, or both) of the Adviser and are considered to be “interested persons” of the Funds as defined in the Investment Company Act of 1940. Andrew A. Davis and Christopher C. Davis are brothers.
Officers
Christopher C. Davis (born 07/13/65, Selected Funds officer since 1998).
See description in the section on Inside Directors.
Andrew A. Davis (born 06/25/63, Selected Funds officer since 1998).
See description in the section on Inside Directors.
Kenneth C. Eich (born 08/14/53, Selected 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 of certain companies affiliated with the Adviser.
Douglas A. Haines (born 03/04/71, Selected 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, Selected Funds officer since 1997).
Vice President and 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 of certain companies affiliated with the Adviser.
Thomas D. Tays (born 03/07/57, Selected 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 of certain companies affiliated with the Adviser.
Arthur Don (born 09/24/53, Selected Funds officer since 1991).
Assistant Secretary (for clerical purposes only) of each of the Davis Funds and Selected Funds; Shareholder, Greenberg Traurig, LLP (law firm); counsel to the Independent Directors and the Davis 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
|
|
Boston Financial Data Services, Inc.
|
|
c/o The Selected Funds
|
|
P.O. Box 8243
|
|
Boston, Massachusetts 02266-8243
|
|
|
|
Overnight Address:
|
|
30 Dan Road
|
|
Canton, Massachusetts 02021-2809
|
|
|
|
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
|
|
|
|
For more information about the Selected Funds 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 1-800-243-1575 or on the Funds’ website at www.selectedfunds.com. Quarterly Fact Sheets are available on the Funds’ website at www.selectedfunds.com.
|