Turner Ex Rel. Davis New York Venture Fund v. Davis Selected Advisers, LP

MEMORANDUM

Plaintiff-appellant Donald Turner appeals the judgment of the district court dismissing his amended complaint brought under the Investment Company Act of 1940 (the “ICA”), and its denial of his motion to alter or amend the judgment. We affirm.

Turner holds Class A shares in the Davis New York Venture Fund (the “Davis Fund” or the “Fund”), an open-end diversified mutual fund registered under the ICA. Defendant-appellee Davis Selected Advisers, LP (“DSA”) is the Fund’s investment adviser, and defendant-appel-lee Davis Distributors, LLC (“DD”) is a broker-dealer and the “principal underwriter of the shares of the Fund.”

According to the Amended Complaint, DSA and DD charge shareholders in the Fund a number of different fees, three of which are the subject of Turner’s amended complaint. First, all shareholders pay an advisory fee based on a percentage of net assets (which decreases as the Fund grows in size) to compensate DSA “for managing the portfolio of securities and for providing some of the back-office support operations.” Second, DD collects from all shareholders a “service fee” of .25% of the Davis Fund’s net assets under management to support “both pre-sale and…