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This fund aims to provide shareholders with an opportunity for long-term growth of principal and income. It invests primarily in a diversified portfolio of US equity securities, with market capitalisation above US$3bn. In terms of style this is "US large cap value". The fund will not invest in utilities, biotechnology nor new media companies. The managers are based in San Francisco and actively engage with CEOs of their investee companies.
|Dividends paid||25 Mar, 24 Jun, 24 Sep, 18 Dec|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.60%|
|Ongoing charges figure||0.70%|
Total fees are capped at 0.70%pa
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
The management group is 100% owned by employees and the staff model is to take new recruits straight from business school and keep them for their entire working career. For example, in their 9-person investment committee, the average time spent at Dodge & Cox is 26 years. They are based in San Francisco and have close relationship with investee companies, with whom they actively engage to enact shareholder-beneficial changes. The US-based equivalent fund started in 1965. The portfolio is dominated by mega caps which means it is defensive but it will miss out on small cap rallies; they do not invest in utilities, biotech or new tech so will miss out when any of these sectors do well; the slow and steady management style means they could miss out in times when sharp style rotation would otherwise benefit performance eg in growth rallies.
|High yield bonds||0|
The group, based in San Francisco is wholly owned by active employees and has over US$130bn invested across five funds. Staff turnover is very low, new recruits come straight from business school and stay their entire career. Average staff stake in the business is US$1m. The team's US large cap equity strategy has more than US$30bn, which is invested in just 60 stocks. This means that in many cases they are significant shareholders in their investee companies and have good access to CEOs and senior management, with whom they actively engage to help steer them towards shareholder-beneficial changes. The focused number of investments also means that their analysts know the stocks very well and investigate companies’ peers, suppliers and customers globally. Each analyst covers 2 sectors and models stocks using different scenario-based outcomes on a 3 to 5-year view, covering both up- and down-side possibilities. Investments are selected that appear to be temporarily undervalued by the stock market but have a favourable outlook for long-term growth, where company management are not focused on short-term, stock market-pleasing strategies. A 9-person Policy Committee approves all portfolio changes.
|Fund data updated on||26/09/17|
|High yield bonds||0|
As at 30/06/15:
4.3% Capital One Financial Corp
4.2% Wells Fargo & Co.
3.9% Hewlett-Packard Co.
3.7% Microsoft Corp.
3.5% Time Warner Cable, Inc.
3.4% Time Warner, Inc.
3.3% Charles Schwab Corp
3.1% Bank of America Corp.
2.8% Comcast Corp.
Source: Dodge & Cox
60-80 stocks, 35% in the top 10, low turnover <20%. As at 30/06/15: 61 stocks; average MV = U$109bn; average P/E = 14.8x; average DY = 1.8%
Minimum market value for inclusion is £3bn; max 5% in non US companies but which are listed on US exchanges (via ADRs); Starting wt 1%; max 5% in one stock; max 15% stake in a company.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|12/13||13/14||14/15||15/16||16/17||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Wendell W Birkhofer, Vice President Birkhofer received a BA degree from Stanford University in 1978 and an MBA from the Stanford Graduate School of Business in 1987. Prior to entering the MBA program, he worked for six years with Wen Birkhofer & Co an investment broker dealer firm in Los Angeles. He joined Dodge & Cox in 1987. He is a member of the Board of Governors of the Investment Adviser Association. He is a shareholder of the firm, a CFA charterholder, and a Chartered Investment Counselor. Gregory R Serrurier, Vice President Serrurier received his BS degree in 1979 from Oregon State University and his MBA from the Stanford Graduate School of Business in 1984. He joined Dodge & Cox in 1984. He is a shareholder of the firm, a CFA charterholder, and a Chartered Investment Counselor.
Dodge & Cox Investment Policy Committee has 20.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.16%. During the worst period of relative performance (from August 1997 - January 1999) there was a decline of 25% relative to the index. The worst absolute loss has been 59%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 90%.
|Periods of worst performance|
|Absolute||-59% (May 2007 - February 2009)|
|Relative||-25% (August 1997 - January 1999)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.