Selected Funds ANNUAL REPORT. Selected American Shares Selected International Fund. December 31, Selecting Quality Companies for the Long Term

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1 Funds American Shares International Fund December 31, 2017 ANNUAL REPORT Selecting Quality Companies for the Long Term

2 Table of Contents Shareholder Letter... 2 Management s Discussion of Fund Performance: American Shares... 3 International Fund... 5 Fund Overview: American Shares... 7 International Fund... 9 Expense Example Schedule of Investments: American Shares International Fund Statements of Assets and Liabilities Statements of Operations Statements of Changes in Net Assets Notes to Financial Statements Financial Highlights Report of Independent Registered Public Accounting Firm Federal Income Tax Information Privacy Notice and Householding Directors and Officers This Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Funds prospectus, which contains more information about investment strategies, risks, fees, and expenses. Please read the prospectus carefully before investing or sending money. Shares of the Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested. Portfolio Proxy Voting Policies and Procedures The Funds have adopted Portfolio Proxy Voting Policies and Procedures under which the Funds vote proxies relating to securities held by the Funds. A description of the Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Funds toll-free at , (ii) on the Funds website at and (iii) on the SEC s website at In addition, the Funds are required to file Form N-PX, with their complete proxy voting record for the 12 months ended June 30 th, no later than August 31 st of each year. The Funds Form N-PX filing is available (i) without charge, upon request, by calling the Funds toll-free at , (ii) on the Funds website at and (iii) on the SEC s website at Form N-Q The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds Form N-Q is available without charge, upon request, by calling , on the Funds website at and on the SEC s website at The Funds Form N-Q may be reviewed and copied at the SEC s Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling SEC-0330.

3 Shareholder Letter Dear Fellow Shareholder, As stewards of our customers savings, the management team and Directors of the Funds recognize the importance of candid, thorough, and regular communication with our shareholders. In our Annual and Semi-Annual Reports, we include all of the required quantitative information, such as audited financial statements, detailed footnotes, performance reports, fund holdings, and performance attribution. Also included is a list of positions opened and closed. In addition, we produce a Manager Commentary for each Fund, which is published semi-annually. In this commentary, we give a more qualitative perspective on fund performance, discuss our thoughts on individual holdings, and share our investment outlook. You may obtain a copy of the current Manager Commentary either on the Funds website at or by calling We thank you for your continued trust. We will do our best to earn it in the years ahead. Sincerely, James J. McMonagle Christopher C. Davis Danton G. Goei Chairman President & Portfolio Manager Portfolio Manager February 2,

4 SELECTED AMERICAN SHARES, INC. Management s Discussion of Fund Performance Performance Overview American Shares performed in-line with the Standard & Poor s 500 Index ( S&P 500 ) for the twelve-month period ended December 31, 2017 (the period ). The Fund s Class S and D shares delivered a total return of 21.77% and 22.18%, respectively, versus a 21.83% return for the S&P 500. Only two sectors 1 within the S&P 500 reported negative performance, Telecommunication Services and Energy (both down 1%). The third-weakest, but still positive, performing sector was Real Estate (up 11%). The sectors within the S&P 500 that reported the strongest performance were Information Technology (up 39%), Materials (up 24%), and Financials (up 23%). Detractors from Performance The Fund s holdings in the Energy sector were the most significant detractor 2 from performance. When compared to the S&P 500, the Fund suffered from an overweight position (average weighting of 10%, versus 6%) and lower returns on its holdings (down 8%, compared to down 1%) in a weak performing sector. Apache 3 (down 32%) was the top detractor for the period. EQT (down 12%), which the Fund no longer owns, was also a key detractor. The Information Technology sector was a key detractor on a relative basis. The Fund suffered primarily as a result of its underweight position in the strongest performing sector during the period (15% average weighting, versus 22%). Alibaba (down 7%), a new holding that was purchased during the fourth quarter of 2017, was the second largest detractor during the period. The Fund s Industrials holdings hindered performance when compared to the S&P 500 (up 20%, compared to up 21%). Johnson Controls (down 5%) was a key detractor. Additional securities which hindered the Fund s performance included Valeant Pharmaceuticals (down 34%) from the Health Care sector and Liberty TripAdvisor (down 37%) and Delphi Technologies (down 7%) from the Consumer Discretionary sector. The Fund no longer owns Valeant Pharmaceuticals. Given the strong market over the period, the Fund s 3% average weighting in Cash & Equivalents hindered performance. Contributors to Performance The Fund s holdings in the Consumer Discretionary sector made the most significant contribution to performance when compared to the S&P 500 and were also a top contributor on an absolute basis (up 39%, compared to up 23%). Amazon (up 56%), the Fund s secondlargest holding, was the Fund s top overall contributor for the period. While the Fund s Financials sector holdings performed in-line with those of the S&P 500 (both up 23%), the Fund benefited from its significant overweight position in Financials (30%, versus 15%). Five of the Fund s top ten contributors for the period were from the Financials sector, and these included American Express (up 36%), JPMorgan Chase (up 27%), Berkshire Hathaway (up 22%), Capital One Financial (up 16%), and Wells Fargo (up 13%). Each of these was also a top holding of the Fund. Information Technology was an important contributor on an absolute basis (up 38%), and individual securities which helped performance included Alphabet (up 35%), the Fund s largest holding, Facebook (up 53%), and Texas Instruments (up 47%). The Fund s Health Care holdings helped performance (up 35%, compared to up 22% for the S&P 500 ). Aetna (up 47%) was among the top contributors for the period. Compared to the S&P 500, the Fund benefited from a significant underweight position in Consumer Staples (2%, compared to 9%) and Telecommunication Services (0%, compared to 2%). American Shares investment objective is to achieve both capital growth and income. In the current market environment, we expect that income will be low. There can be no assurance that the Fund will achieve its objective. American Shares principal risks are: common stock risk, depositary receipts risk, emerging market risk, fees and expenses risk, financial services risk, foreign country risk, foreign currency risk, headline risk, largecapitalization companies risk, manager risk, mid- and small-capitalization companies risk, and stock market risk. See the prospectus for a full description of each risk. Past performance does not guarantee future results, Fund prices fluctuate, and the value of an investment may be worth more or less than the purchase price. Data provided in this performance overview is for the twelve-month period ended December 31, 2017, unless otherwise noted. Return figures for underlying Fund positions reflect the return of the security from the beginning of the period or the date of first purchase if subsequent thereto through the end of the period or the date the position is completely liquidated. The actual contribution to the Fund will vary based on a number of factors (e.g., trading activity, weighting). Portfolio holding information is as of the end of the twelve-month period, December 31, 2017, unless otherwise noted. 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. 3

5 SELECTED AMERICAN SHARES, INC. (CONTINUED) Management s Discussion of Fund Performance COMPARISON OF A $10,000 INVESTMENT IN SELECTED AMERICAN SHARES CLASS S VERSUS THE STANDARD & POOR S 500 INDEX OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2007 $25,000 $20,000 S&P 500 SAS - S S&P 500 $22,601 $15,000 SAS - S $19,319 $10,000 $5,000 $0 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED DECEMBER 31, 2017 SINCE CLASS D S INCEPTION (May 3, 2004) GROSS EXPENSE RATIO NET EXPENSE RATIO FUND & BENCHMARK INDEX 1-YEAR 5-YEAR 10-YEAR Class S 21.77% 14.82% 6.80% N/A 0.97% 0.97% Class D 22.18% 15.20% 7.16% 8.15% 0.65% 0.65% Standard & Poor s 500 Index 21.83% 15.79% 8.50% 8.84% The Standard & Poor s 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations, and represents approximately two-thirds of the total market value of all domestic common stocks. Investments cannot be made directly in the Index. The performance data for American Shares contained in this report represents past performance, assumes that all distributions were reinvested, and should not be considered as an indication of future performance from an investment in the Fund today. The investment return and principal value will fluctuate so that shares may be worth more or less than their original cost when redeemed. Fund performance changes over time and current performance may be higher or lower than stated. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The operating expense ratios may vary in future years. For more current information please call Funds Investor Services at

6 SELECTED INTERNATIONAL FUND, INC. Management s Discussion of Fund Performance Performance Overview International Fund outperformed the Morgan Stanley Capital International All Country World Index ex USA ( MSCI ) for the twelve-month period ended December 31, 2017 (the period ). The Fund s Class S and D shares delivered a total return of 38.22% and 38.90%, respectively, versus a 27.19% return for the MSCI. The sectors 1 within the MSCI that reported the strongest performance were Information Technology (up 51%), Materials (up 33%), and Industrials (up 30%). All sectors within the MSCI reported positive performance for the period. The sectors that reported the weakest, yet still positive, performance were Telecommunication Services (up 15%), Energy (up 17%), and Health Care (up 19%). Contributors to Performance The Fund s holdings in the Consumer Discretionary sector made the most significant contribution 2 to performance on an absolute basis as well as on a relative basis when compared to the MSCI. Returns for the Fund s Consumer Discretionary holdings were up 58%, compared to up 29% for the MSCI. The Fund benefited primarily from strong stock selection in this sector. The top three contributors to performance were Naspers 3 (up 90%), the Fund s largest holding, TAL Education Group (up 155%), and New Oriental Education & Technology Group (up 124%). Additional contributors from the Consumer Discretionary sector included JD.com (up 63%) and Didi Chuxing (up 33%), the Fund s second largest holding. The Fund s Industrials sector holdings also helped performance on both an absolute and relative basis. The Fund s Industrials holdings were up about 36%, compared to up 30% for the MSCI. The Fund also benefited from a higher average weighting than the MSCI (17%, compared to 12%). InterGlobe Aviation (up 60%) and Safran (up 44%), both among the top ten holdings, were among the top performing securities for the period. The Fund benefited from its strong stock selection in both the Information Technology (up 69%, versus up 51% for the MSCI) and Financials (up 49%, compared to up 27% for the MSCI) sectors. Key contributors included Alibaba (up 96%) and Fang Holdings (up 70%) from the Information Technology sector and Noah Holdings (up 111%) from the Financials sector. The Fund benefited from its significant overweight position in Chinese securities when compared to the MSCI (39% average weighting, versus 7% for the MSCI). At the country level, the Fund s Chinese securities (up 56%) were the largest contributor to performance. Detractors from Performance The Fund had an average weighting of 10% of its net assets in Cash & Equivalents, which was primarily a result of strong inflows. Given the strong market during the period, this position was the most significant detractor when compared to the MSCI. At the end of the period, the Fund s position in Cash & Equivalents was 3%. The Fund s Energy sector holdings were a key detractor from performance relative to the MSCI. The Fund s Energy holdings were up 16%, compared to up 17% for the MSCI. A top detractor for the period was Seven Generations Energy (down 44%), which the Fund sold in December. The Fund s Health Care sector holdings detracted from relative performance primarily due to poor stock selection. While still positive, the Fund s Health Care sector holdings underperformed those of the MSCI (up 12%, versus up 19%). Valeant Pharmaceuticals (down 17%), which the Fund no longer owns, was a key detractor. The Materials sector returns, while still positive, hindered the Fund s relative performance (up 27%, compared to up 33% for the MSCI). While the Consumer Discretionary sector overall was the most significant contributor to the Fund s performance, a number of the top detractors came from this sector including Tarena International (down 16%), the top detractor for the period, Jumei International Holdings (down 40%), and Xiabu Xiabu (down 4%). The Fund no longer owns Jumei International Holdings or Xiabu Xiabu. CAR (down 10%), from the Industrials sector, also detracted from performance. International Fund s investment objective is capital growth. There can be no assurance that the Fund will achieve its objective. International Fund s principal risks are: common stock risk, depositary receipts risk, emerging market risk, fees and expenses risk, foreign country risk, foreign currency risk, headline risk, large-capitalization companies risk, manager risk, mid- and small-capitalization companies risk, and stock market risk. See the prospectus for a full description of each risk. Past performance does not guarantee future results, Fund prices fluctuate, and the value of an investment may be worth more or less than the purchase price. Data provided in this performance overview is for the twelve-month period ended December 31, 2017, unless otherwise noted. Return figures for underlying Fund positions reflect the return of the security from the beginning of the period or the date of first purchase if subsequent thereto through the end of the period or the date the position is completely liquidated. The actual contribution to the Fund will vary based on a number of factors (e.g., trading activity, weighting). Portfolio holding information is as of the end of the twelve-month period, December 31, 2017, unless otherwise noted. 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. 5

7 SELECTED INTERNATIONAL FUND, INC. (CONTINUED) Management s Discussion of Fund Performance COMPARISON OF A $10,000 INVESTMENT IN SELECTED INTERNATIONAL FUND CLASS S VERSUS THE MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD INDEX EX USA (MSCI ACWI EX USA) OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2007 $20,000 $15,000 MSCI ACWI ex USA SIF - S SIF - S $13,763 $10,000 MSCI ACWI ex USA $11,998 $5,000 $0 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED DECEMBER 31, 2017 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 38.22% 10.61% 3.24% N/A 1.28% 1.25% Class D 38.90% 11.15% 3.76% 5.23% 0.87% 0.87% MSCI ACWI EX USA 27.19% 6.80% 1.84% 6.81% On May 1, 2011, the Fund changed its name from Special Shares to International Fund and changed its investment strategy from investing primarily in domestic equity securities to investing primarily in foreign equity securities. Performance prior to that date is unlikely to be relevant to future performance. The Fund s performance benefited from IPO purchases in 2010 and 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. The MSCI ACWI EX USA is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets, excluding the United States. The Index includes reinvestment of dividends, net of foreign withholding taxes. Investments cannot be made directly in the Index. The performance data for International Fund contained in this report represents past performance, assumes that all distributions were reinvested, and should not be considered as an indication of future performance from an investment in the Fund today. The investment return and principal value will fluctuate so that shares may be worth more or less than their original cost when redeemed. Fund performance changes over time and current performance may be higher or lower than stated. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The operating expense ratios may vary in future years. For more current information please call Funds Investor Services at

8 Fund Overview SELECTED AMERICAN SHARES, INC. December 31, 2017 Portfolio Composition Industry Weightings (% of Fund s 12/31/17 Net Assets) (% of 12/31/17 Stock Holdings) Fund S&P 500 Common Stock (U.S.) 79.05% Diversified Financials 18.29% 5.55% Common Stock (Foreign) 15.42% Information Technology 18.14% 23.76% Preferred Stock (Foreign) 3.06% Retailing 12.08% 5.73% Short-Term Investments 2.50% Banks 11.37% 6.59% Other Assets & Liabilities (0.03)% Capital Goods 10.78% 7.46% % Energy 9.29% 6.07% Materials 4.89% 3.00% Health Care 3.81% 13.84% Media 3.45% 2.76% Automobiles & Components 3.39% 0.66% Insurance 2.15% 2.65% Transportation 1.79% 2.21% Consumer Durables & Apparel 0.57% 1.18% Food, Beverage & Tobacco 4.57% Utilities 2.93% Other 11.04% % % Top 10 Long-Term Holdings (% of Fund s 12/31/17 Net Assets) Alphabet Inc. * Software & Services 8.07% Amazon.com, Inc. Retailing 7.37% Wells Fargo & Co. Banks 5.92% Berkshire Hathaway Inc., Class A Diversified Financial Services 5.73% JPMorgan Chase & Co. Banks 5.17% Bank of New York Mellon Corp. Capital Markets 4.69% Capital One Financial Corp. Consumer Finance 4.11% United Technologies Corp. Capital Goods 3.69% Apache Corp. Energy 3.60% American Express Co. Consumer Finance 3.31% *Alphabet Inc. holding includes Class A and Class C. 7

9 Fund Overview SELECTED AMERICAN SHARES, INC. (CONTINUED) December 31, 2017 New Positions Added (01/01/17-12/31/17) (Highlighted positions are those greater than 1.80% of the Fund s 12/31/17 net assets) % of Fund s 12/31/17 Net Assets Security Industry Date of 1 st Purchase Alibaba Group Holding Ltd., ADR Software & Services 11/17/ % Didi Chuxing Joint Co., Series B, Pfd. Retailing 05/16/ % FedEx Corp. Transportation 03/29/ % Ferguson PLC Capital Goods 10/18/ % Naspers Ltd. - N Media 11/17/ % Positions Closed (01/01/17-12/31/17) (Gains and losses greater than $25,000,000 are highlighted) Security Industry Date of Final Sale Realized Gain (Loss) CarMax, Inc. Retailing 11/22/17 $ 24,532,972 Costco Wholesale Corp. Food & Staples Retailing 11/28/17 39,868,982 Ecolab Inc. Materials 11/28/17 15,101,097 EQT Corp. Energy 03/17/17 (5,990,025) Fairfax Financial Holdings Ltd. Multi-line Insurance 10/23/17 1,013,354 Monsanto Co. Materials 05/25/17 13,125,718 Praxair, Inc. Materials 12/18/17 5,147,146 UnitedHealth Group Inc. Health Care Equipment & Services 10/27/17 37,878,675 Valeant Pharmaceuticals International, Inc. Pharmaceuticals, Biotechnology & Life Sciences 04/07/17 (63,478,335) Visa Inc., Class A Diversified Financial Services 11/21/17 38,299,294 Wesco Aircraft Holdings, Inc. Capital Goods 02/02/17 (455,555) 8

10 Fund Overview SELECTED INTERNATIONAL FUND, INC. December 31, 2017 Portfolio Composition Industry Weightings (% of Fund s 12/31/17 Net Assets) (% of 12/31/17 Stock Holdings) MSCI ACWI Fund EX USA Common Stock (Foreign) 90.99% Information Technology 14.65% 11.50% Preferred Stock (Foreign) 6.43% Capital Goods 13.84% 8.02% Short-Term Investments 2.72% Retailing 13.74% 1.47% Other Assets & Liabilities (0.14)% Consumer Services 10.94% 1.37% % Materials 8.39% 8.01% Transportation 7.61% 2.65% Media 7.49% 1.43% Diversified Financials 6.91% 3.35% Energy 6.00% 6.75% Health Care 4.54% 7.64% Insurance 4.14% 5.22% Consumer Durables & Apparel 1.75% 2.57% Banks 14.60% Food, Beverage & Tobacco 5.69% Automobiles & Components 4.48% Telecommunication Services 4.04% Other 11.21% % % Country Diversification Top 10 Long-Term Holdings (% of 12/31/17 Stock Holdings) (% of Fund s 12/31/17 Net Assets) China 45.41% Naspers Ltd. - N 7.30% Switzerland 8.29% Didi Chuxing Joint Co., Series A, Pfd. 5.27% France 8.15% Alibaba Group Holding Ltd., ADR 5.26% South Africa 7.49% Encana Corp. 4.71% Brazil 6.37% New Oriental Education & Technology Group, Inc., ADR 4.50% Canada 6.00% Hollysys Automation Technologies Ltd. 4.44% United Kingdom 5.10% Sul America S.A. 4.03% India 3.89% Safran S.A. 3.96% Netherlands 3.71% InterGlobe Aviation Ltd. 3.79% Germany 3.63% JD.com Inc., Class A, ADR 3.77% Singapore 1.19% Belgium 0.77% % 9

11 Fund Overview SELECTED INTERNATIONAL FUND, INC. (CONTINUED) December 31, 2017 New Positions Added (01/01/17-12/31/17) (Highlighted positions are those greater than 3.00% of the Fund s 12/31/17 net assets) % of Fund s 12/31/17 Net Assets Security Industry Date of 1 st Purchase Akzo Nobel N.V. Materials 02/24/ % Ferguson PLC Capital Goods 10/10/ % Grab Inc., Series G, Pfd. Retailing 08/02/ % Hollysys Automation Technologies Ltd. Technology Hardware & Equipment 01/18/ % Tarena International, Inc., Class A, ADR Consumer Services 06/05/ % Positions Closed (01/01/17-12/31/17) (Gains and losses greater than $200,000 are highlighted) Security Industry Date of Final Sale Realized Gain (Loss) Grupo Televisa S.A.B., ADR Media 08/14/17 $ 219,116 Internet Plus Holdings Ltd., Series A-10, Pfd. Retailing 08/10/17 547,789 IWG PLC Commercial & Professional Services 04/12/17 (48,106) Jumei International Holding Ltd., Class A, ADR Retailing 12/15/17 (77,205) Novus Holdings Ltd. Commercial & Professional Services 11/29/ Seven Generations Energy Ltd., Class A Energy 12/15/17 (9,975) Valeant Pharmaceuticals International, Inc. Pharmaceuticals, Biotechnology & Life Sciences 05/09/17 (3,781,022) Xiabu Xiabu Catering Management Co., Ltd. Consumer Services 03/20/17 15,657 YY Inc., Class A, ADR Software & Services 02/17/17 84,067 10

12 Expense Example As a shareholder of each Fund, you incur ongoing costs, including advisory and administrative fees, distribution and/or service (12b-1) fees, and other Fund expenses. As a shareholder of International Fund, you may also incur transaction costs, which consist of redemption fees. The Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for each class is for the six-month period ended December 31, Actual Expenses The information represented in the row entitled Actual provides information about actual account values and actual expenses. You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period. An annual maintenance fee of $15, charged on retirement plan accounts per Social Security Number, is not included in the Expense Example. This fee will be waived for accounts sharing the same Social Security Number if the accounts total at least $50,000 at Funds. If this fee was included, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower, by this amount. Hypothetical Example for Comparison Purposes The information represented in the row entitled Hypothetical provides information about hypothetical account values and hypothetical expenses based on each Fund s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. An annual maintenance fee of $15, charged on retirement plan accounts per Social Security Number, is not included in the Expense Example. This fee will be waived for accounts sharing the same Social Security Number if the accounts total at least $50,000 at Funds. If this fee was included, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower, by this amount. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the information in the row entitled Hypothetical is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher. Beginning Ending Expenses Paid Account Value Account Value During Period* (07/01/17) (12/31/17) (07/01/17-12/31/17) American Shares Class S (annualized expense ratio 0.97%**) Actual $1, $1, $5.18 Hypothetical $1, $1, $4.94 Class D (annualized expense ratio 0.64%**) Actual $1, $1, $3.42 Hypothetical $1, $1, $3.26 International Fund Class S (annualized expense ratio 1.22%**) Actual $1, $1, $6.58 Hypothetical $1, $1, $6.21 Class D (annualized expense ratio 0.85%**) Actual $1, $1, $4.59 Hypothetical $1, $1, $4.33 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 184/365 (to reflect the one-half year period). **The expense ratios reflect the impact, if any, of certain reimbursements from the Adviser. 11

13 Schedule of Investments SELECTED AMERICAN SHARES, INC. December 31, 2017 Value Shares (Note 1) COMMON STOCK (94.47%) CONSUMER DISCRETIONARY (15.94%) Automobiles & Components (3.31%) Adient PLC 659,585 $ 51,909,340 Aptiv PLC 221,551 18,794,171 Delphi Technologies PLC 73,851 3,874,962 74,578,473 Consumer Durables & Apparel (0.55%) Hunter Douglas N.V. (Netherlands) 143,842 12,495,424 Media (3.36%) Liberty Global PLC, Series C * 912,780 30,888,475 Liberty Latin America Ltd., Class C * 159,559 3,173,629 Naspers Ltd. - N (South Africa) 149,989 41,835,687 75,897,791 Retailing (8.72%) Amazon.com, Inc. * 142, ,340,735 Liberty Expedia Holdings, Inc., Series A * 50,190 2,224,923 Liberty Interactive Corp., Liberty Ventures, Series A * 75,196 4,078,631 Liberty Interactive Corp., QVC Group, Series A * 245,535 5,995,964 Liberty TripAdvisor Holdings Inc., Series A * 69, ,631 Priceline Group Inc. * 9,962 17,311, ,607,250 TOTAL CONSUMER DISCRETIONARY 359,578,938 ENERGY (9.06%) Apache Corp. 1,923,647 81,216,376 Cabot Oil & Gas Corp. 1,265,412 36,190,783 Encana Corp. (Canada) 4,728,943 63,036,810 Occidental Petroleum Corp. 326,490 24,049,254 TOTAL ENERGY 204,493,223 FINANCIALS (31.02%) Banks (11.09%) JPMorgan Chase & Co. 1,090, ,656,141 Wells Fargo & Co. 2,199, ,450, ,107,086 Diversified Financials (17.84%) Capital Markets (4.69%) Bank of New York Mellon Corp. 1,965, ,869,101 Consumer Finance (7.42%) American Express Co. 751,088 74,590,550 Capital One Financial Corp. 931,595 92,768, ,358,780 Diversified Financial Services (5.73%) Berkshire Hathaway Inc., Class A * ,158, ,386,285 Insurance (2.09%) Multi-line Insurance (0.95%) Loews Corp. 427,374 21,381,521 Property & Casualty Insurance (1.14%) Chubb Ltd. 104,501 15,270,731 12

14 Schedule of Investments SELECTED AMERICAN SHARES, INC. - (CONTINUED) December 31, 2017 Value Shares/Units (Note 1) COMMON STOCK (CONTINUED) FINANCIALS (CONTINUED) Insurance (Continued) Property & Casualty Insurance (Continued) Markel Corp. * 9,318 $ 10,614,414 25,885,145 47,266,666 TOTAL FINANCIALS 699,760,037 HEALTH CARE (3.72%) Health Care Equipment & Services (3.72%) Aetna Inc. 310,397 55,992,515 Express Scripts Holding Co. * 373,854 27,904,463 TOTAL HEALTH CARE 83,896,978 INDUSTRIALS (12.26%) Capital Goods (10.51%) Ferguson PLC (United Kingdom) 603,913 43,459,414 Johnson Controls International PLC 1,518,132 57,856,011 Orascom Construction Ltd. (United Arab Emirates)* 578,768 4,630,144 Safran S.A. (France) 465,474 47,980,619 United Technologies Corp. 652,660 83,259, ,186,024 Transportation (1.75%) FedEx Corp. 157,902 39,402,865 TOTAL INDUSTRIALS 276,588,889 INFORMATION TECHNOLOGY (17.70%) Semiconductors & Semiconductor Equipment (2.52%) Texas Instruments Inc. 543,043 56,715,411 Software & Services (15.18%) Alibaba Group Holding Ltd., ADR (China)* 290,277 50,052,463 Alphabet Inc., Class A * 69,254 72,952,164 Alphabet Inc., Class C * 104, ,149,984 ASAC II L.P. *(a)(b) 1,174,606 1,129,149 CommerceHub, Inc., Series A * 12, ,007 CommerceHub, Inc., Series C * 25, ,015 Facebook Inc., Class A * 343,968 60,696,593 Fang Holdings Ltd., Class A, ADR (China)* 862,340 4,811,857 Microsoft Corp. 319,310 27,313,777 Oracle Corp. 330,005 15,602, ,500,645 TOTAL INFORMATION TECHNOLOGY 399,216,056 MATERIALS (4.77%) Axalta Coating Systems Ltd. * 868,127 28,092,590 LafargeHolcim Ltd. (Switzerland) 1,023,939 57,792,050 OCI N.V. (Netherlands)* 858,480 21,661,880 TOTAL MATERIALS 107,546,520 TOTAL COMMON STOCK (Identified cost $1,253,177,441) 2,131,080,641 13

15 Schedule of Investments SELECTED AMERICAN SHARES, INC. - (CONTINUED) December 31, 2017 Value Shares/Principal (Note 1) PREFERRED STOCK (3.06%) CONSUMER DISCRETIONARY (3.06%) Retailing (3.06%) Didi Chuxing Joint Co., Series A (China)*(a)(b) 1,161,716 $ 59,168,635 Didi Chuxing Joint Co., Series B (China)*(a)(b) 195,204 9,942,150 TOTAL CONSUMER DISCRETIONARY 69,110,785 TOTAL PREFERRED STOCK (Identified cost $42,180,623) 69,110,785 SHORT-TERM INVESTMENTS (2.50%) INTL FCStone Financial Inc. Joint Repurchase Agreement, 1.33%, 01/02/18, dated 12/29/17, repurchase value of $10,211,509 (collateralized by: U.S. Government agency mortgages and obligation in a pooled cash account, 0.00%-10.00%, 01/25/18-11/01/47, total market value $10,414,200) $ 10,210,000 10,210,000 Mizuho Securities USA Inc. Joint Repurchase Agreement, 1.36%, 01/02/18, dated 12/29/17, repurchase value of $1,602,242 (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.75%-1.625%, 03/31/18-06/30/20, total market value $1,634,040) 1,602,000 1,602,000 Nomura Securities International, Inc. Joint Repurchase Agreement, 1.42%, 01/02/18, dated 12/29/17, repurchase value of $32,270,091 (collateralized by: U.S. Government agency mortgages in a pooled cash account, %, 12/01/21-12/01/47, total market value $32,910,300) 32,265,000 32,265,000 SunTrust Robinson Humphrey, Inc. Joint Repurchase Agreement, 1.43%, 01/02/18, dated 12/29/17, repurchase value of $12,254,947 (collateralized by: U.S. Government agency mortgages and obligation in a pooled cash account, 1.25%-5.50%, 06/01/18-12/01/47, total market value $12,498,060) 12,253,000 12,253,000 TOTAL SHORT-TERM INVESTMENTS (Identified cost $56,330,000) 56,330,000 Total Investments (100.03%) (Identified cost $1,351,688,064) 2,256,521,426 Liabilities Less Other Assets (0.03%) (693,937) Net Assets (100.00%) $ 2,255,827,489 ADR: American Depositary Receipt * Non-income producing security. (a) (b) Restricted Security See Note 7 of the Notes to Financial Statements. 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 14

16 Schedule of Investments SELECTED INTERNATIONAL FUND, INC. December 31, 2017 Value Shares/Units (Note 1) COMMON STOCK (90.99%) CONSUMER DISCRETIONARY (26.61%) Consumer Durables & Apparel (1.70%) Hunter Douglas N.V. (Netherlands) 20,122 $ 1,747,980 Consumer Services (10.66%) New Oriental Education & Technology Group, Inc., ADR (China) 49,226 4,627,244 TAL Education Group, Class A, ADR (China) 89,678 2,664,333 Tarena International, Inc., Class A, ADR (China) 244,430 3,664,006 10,955,583 Media (7.30%) Naspers Ltd. - N (South Africa) 26,904 7,504,199 Retailing (6.95%) Ctrip.com International, Ltd., ADR (China)* 33,027 1,456,491 JD.com Inc., Class A, ADR (China)* 93,495 3,872,563 Vipshop Holdings Ltd., Class A, ADR (China)* 155,437 1,821,721 7,150,775 TOTAL CONSUMER DISCRETIONARY 27,358,537 ENERGY (5.85%) Encana Corp. (Canada) 363,435 4,844,589 Paramount Resources Ltd., Class A (Canada)* 75,550 1,167,208 TOTAL ENERGY 6,011,797 FINANCIALS (10.76%) Diversified Financials (6.73%) Capital Markets (5.63%) B3 S.A. - Brasil, Bolsa, Balcao (Brazil) 324,520 2,228,623 Noah Holdings Ltd., ADS (China)* 76,844 3,556,340 5,784,963 Diversified Financial Services (1.10%) Groupe Bruxelles Lambert S.A. (Belgium) 7, ,177 Pargesa Holding S.A., Bearer Shares (Switzerland) 4, ,222 1,132,399 6,917,362 Insurance (4.03%) Multi-line Insurance (4.03%) Sul America S.A. (Brazil) 737,297 4,147,588 TOTAL FINANCIALS 11,064,950 HEALTH CARE (4.43%) Pharmaceuticals, Biotechnology & Life Sciences (4.43%) Novartis AG, ADR (Switzerland) 28,000 2,350,880 Roche Holding AG - Genusschein (Switzerland) 8,700 2,200,780 TOTAL HEALTH CARE 4,551,660 INDUSTRIALS (20.90%) Capital Goods (13.48%) Brenntag AG (Germany) 18,184 1,151,339 Ferguson PLC (United Kingdom) 51,175 3,682,709 Meggitt PLC (United Kingdom) 219,017 1,425,894 Safran S.A. (France) 39,531 4,074,818 Schneider Electric SE (France) 41,554 3,532,976 13,867,736 15

17 Schedule of Investments SELECTED INTERNATIONAL FUND, INC. - (CONTINUED) December 31, 2017 Value Shares/Principal (Note 1) COMMON STOCK (CONTINUED) INDUSTRIALS (CONTINUED) Transportation (7.42%) CAR Inc. (China)* 1,747,241 $ 1,531,912 InterGlobe Aviation Ltd. (India) 206,757 3,896,889 ZTO Express (Cayman) Inc., Class A, ADR (China)* 138,678 2,198,046 7,626,847 TOTAL INDUSTRIALS 21,494,583 INFORMATION TECHNOLOGY (14.27%) Software & Services (9.83%) 58.com Inc., Class A, ADR (China)* 2, ,903 Alibaba Group Holding Ltd., ADR (China)* 31,370 5,409,129 Baidu, Inc., Class A, ADR (China)* 5,817 1,362,400 Fang Holdings Ltd., Class A, ADR (China)* 568,291 3,171,064 10,110,496 Technology Hardware & Equipment (4.44%) Hollysys Automation Technologies Ltd. (China) 205,100 4,567,577 TOTAL INFORMATION TECHNOLOGY 14,678,073 MATERIALS (8.17%) Air Liquide S.A. (France) 4, ,392 Akzo Nobel N.V. (Netherlands) 22,447 1,966,649 LafargeHolcim Ltd. (Switzerland) 60,093 3,391,704 Linde AG (Germany) 10,622 2,480,775 TOTAL MATERIALS 8,399,520 TOTAL COMMON STOCK (Identified cost $71,050,166) 93,559,120 PREFERRED STOCK (6.43%) CONSUMER DISCRETIONARY (6.43%) Retailing (6.43%) Didi Chuxing Joint Co., Series A (China)*(a)(b) 106,435 5,420,958 Grab Inc., Series G (Singapore)*(a)(b) 214,779 1,190,286 TOTAL CONSUMER DISCRETIONARY 6,611,244 TOTAL PREFERRED STOCK (Identified cost $4,143,934) 6,611,244 SHORT-TERM INVESTMENTS (2.72%) INTL FCStone Financial Inc. Joint Repurchase Agreement, 1.33%, 01/02/18, dated 12/29/17, repurchase value of $507,075 (collateralized by: U.S. Government agency mortgages and obligation in a pooled cash account, 0.00%-10.00%, 01/25/18-11/01/47, total market value $517,140) $ 507, ,000 Mizuho Securities USA Inc. Joint Repurchase Agreement, 1.36%, 01/02/18, dated 12/29/17, repurchase value of $79,012 (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.75%-1.625%, 03/31/18-06/30/20, total market value $80,580) 79,000 79,000 Nomura Securities International, Inc. Joint Repurchase Agreement, 1.42%, 01/02/18, dated 12/29/17, repurchase value of $1,602,253 (collateralized by: U.S. Government agency mortgages and obligation in a pooled cash account, 0.75%-4.50%, 08/15/19-04/01/47, total market value $1,634,040) 1,602,000 1,602,000 16

18 Schedule of Investments SELECTED INTERNATIONAL FUND, INC. - (CONTINUED) December 31, 2017 Value Principal (Note 1) SHORT-TERM INVESTMENTS (CONTINUED) SunTrust Robinson Humphrey, Inc. Joint Repurchase Agreement, 1.43%, 01/02/18, dated 12/29/17, repurchase value of $608,097 (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.60%-4.50%, 07/01/25-12/01/47, total market value $620,160) $ 608,000 $ 608,000 TOTAL SHORT-TERM INVESTMENTS (Identified cost $2,796,000) 2,796,000 Total Investments (100.14%) (Identified cost $77,990,100) 102,966,364 Liabilities Less Other Assets (0.14%) (143,066) Net Assets (100.00%) $ 102,823,298 ADR: American Depositary Receipt ADS: American Depositary Share * Non-income producing security. (a) (b) Restricted Security See Note 7 of the Notes to Financial Statements. 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 17

19 Statements of Assets and Liabilities At December 31, 2017 American Shares International Fund ASSETS: Investments in securities at value* (see accompanying Schedules of Investments) $ 2,256,521,426 $ 102,966,364 Cash Receivables: Capital stock sold 3,473,920 57,388 Dividends and interest 847,671 75,564 Prepaid expenses 76,691 3,842 Total assets 2,260,920, ,103,528 LIABILITIES: Payables: Capital stock redeemed 3,406, ,653 Deferred foreign taxes 9,791 Accrued custodian fees 72,242 22,560 Accrued distribution service fees 201,284 7,641 Accrued investment advisory fees 1,135,465 48,729 Accrued transfer agent fees 238,002 16,501 Other accrued expenses 39,761 15,355 Total liabilities 5,092, ,230 NET ASSETS $ 2,255,827,489 $ 102,823,298 NET ASSETS CONSIST OF: Par value of shares of capital stock $ 69,511,736 $ 1,772,854 Additional paid-in capital 1,182,982,253 79,975,370 Distributions in excess of net investment income (1,527,107) (25,493) Accumulated net realized gains (losses) from investments 100,027,245 (3,866,978) Net unrealized appreciation on investments and foreign currency transactions** 904,833,362 24,967,545 Net Assets $ 2,255,827,489 $ 102,823,298 CLASS S SHARES: Net assets $ 911,461,594 $ 33,716,937 Shares outstanding 22,488,962 2,334,603 Net asset value, offering, and redemption price per share (Net assets Shares outstanding) $ $ CLASS D SHARES: Net assets $ 1,344,365,895 $ 69,106,361 Shares outstanding 33,120,427 4,756,811 Net asset value, offering, and redemption price per share (Net assets Shares outstanding) $ $ *Including: Cost of investments $ 1,351,688,064 $ 77,990,100 **Net of deferred foreign taxes of 9,791 See Notes to Financial Statements 18

20 Statements of Operations For the year ended December 31, 2017 American Shares International Fund INVESTMENT INCOME: Income: Dividends* $ 31,114,869 $ 890,888 Interest 488,803 89,699 Net securities lending fees 3,497 11,022 Total income 31,607, ,609 Expenses: Investment advisory fees (Note 3) 12,755, ,848 Custodian fees 324,633 82,444 Transfer agent fees: Class S 1,070,337 53,796 Class D 645,762 40,983 Audit fees 62,334 22,619 Legal fees 36,341 7,407 Reports to shareholders 111,588 4,414 Directors fees and expenses 454,326 18,190 Registration and filing fees 54,990 54,036 Miscellaneous 114,260 20,605 Distribution service fees (Note 3): Class S 2,260,319 58,076 Total expenses 17,890, ,418 Reimbursement of expenses by Adviser (Note 3) (7,139) Net expenses 17,890, ,279 Net investment income 13,716, ,330 REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) from: Investment transactions 282,606,311 (1,870,728) Foreign currency transactions (205,223) (24,308) Net realized gain (loss) 282,401,088 (1,895,036) Net change in unrealized appreciation (depreciation)** 167,396,203 27,154,903 Net realized and unrealized gain on investments and foreign currency transactions 449,797,291 25,259,867 Net increase in net assets resulting from operations $ 463,513,603 $ 25,433,197 *Net of foreign taxes withheld of $ 175,259 $ 79,000 **Net of deferred foreign taxes of 9,791 See Notes to Financial Statements 19

21 Statements of Changes in Net Assets For the year ended December 31, 2017 American Shares International Fund OPERATIONS: Net investment income $ 13,716,312 $ 173,330 Net realized gain (loss) from investments and foreign currency transactions 282,401,088 (1,895,036) Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions 167,396,203 27,154,903 Net increase in net assets resulting from operations 463,513,603 25,433,197 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class S (3,398,563) (9,523) Class D (9,745,383) (245,809) Realized gains from investment transactions: Class S (59,977,241) Class D (95,463,152) CAPITAL SHARE TRANSACTIONS: Net increase (decrease) in net assets resulting from capital share transactions (Note 4): Class S (197,211,527) 19,411,760 Class D (226,279,028) (2,203,170) Total increase (decrease) in net assets (128,561,291) 42,386,455 NET ASSETS: Beginning of year 2,384,388,780 60,436,843 End of year* $ 2,255,827,489 $ 102,823,298 *Including distributions in excess of net investment income $ (1,527,107) $ (25,493) See Notes to Financial Statements 20

22 Statements of Changes in Net Assets For the year ended December 31, 2016 American Shares International Fund OPERATIONS: Net investment income $ 15,358,219 $ 246,945 Net realized gain from investments and foreign currency transactions 520,971,013 6,763,723 Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions (279,746,874) (4,922,644) Net increase in net assets resulting from operations 256,582,358 2,088,024 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Class S (7,542,381) Class D (15,057,441) (205,383) Realized gains from investment transactions: Class S (141,827,218) Class D (199,916,750) CAPITAL SHARE TRANSACTIONS: Net decrease in net assets resulting from capital share transactions (Note 4): Class S (153,378,575) (642,518) Class D (666,677,813) (23,997,153) Total decrease in net assets (927,817,820) (22,757,030) NET ASSETS: Beginning of year 3,312,206,600 83,193,873 End of year* $ 2,384,388,780 $ 60,436,843 *Including distributions in excess of net investment income $ (1,434,118) $ (26,857) See Notes to Financial Statements 21

23 Notes to Financial Statements December 31, 2017 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Funds ( Funds ) consist of American Shares, Inc. (a Maryland corporation) ( American Shares ) and International Fund, Inc. (a Maryland corporation) ( International Fund ). The Funds are registered under the Investment Company Act of 1940, as amended, as diversified, open-end management investment companies. The Funds follow the reporting guidance of the Financial Accounting Standards Board ( FASB ) Accounting Standards Codification Topic 946, Financial Services Investment Companies. American Shares investment objective is to achieve both capital growth and income. The Fund principally invests in common stocks issued by large companies with market capitalizations of at least $10 billion. International Fund was formerly known as Special Shares. Effective May 1, 2011, International Fund modified its investment strategy to invest principally in common stocks issued by foreign companies, including companies in developed or emerging markets. The Fund may invest in large, medium, or small companies without regard to market capitalization and maintains its investment objective to achieve capital growth. An investment in 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. Each Fund s return and net asset value will fluctuate. 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. International Fund assesses a 2% fee on the proceeds of Fund shares that are redeemed (either by selling or exchanging into American Shares) 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. 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 including NASDAQ) are valued at the last reported sales price on the day of valuation. Listed securities for which no sale was reported on that date are valued 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. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what Davis 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 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 appropriateness of security valuations, the Adviser may consider (i) comparing prior day prices and/or prices of comparable securities; (ii) comparing 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; (iii) new rounds of financing; (iv) the performance of the market or the issuer s industry; (v) the liquidity of the security; (vi) the size of the holding in a fund; and/or (vii) any other appropriate information. The determination of a security s fair value price often involves the consideration of a number of subjective factors and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security s value would be if a reliable market quotation of the security was readily available. 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. Fair valuation methods used by the Funds may include, but are not limited to, valuing securities initially at cost (excluding commissions) and subsequently adjusting the value due to: additional transactions by the issuer, changes in company specific fundamentals and changes in the value of similar securities. Values may be further adjusted for any discounts related to security-specific resale restrictions. 22