This is a continuation of The Mutual Fund Series here on JosephSangl.com.
During each part of this weekly series, we will be looking at a specific mutual fund company.
Today’s company is Dodge & Cox Funds.
Dodge and Cox Funds is a privately owned investment management company based in San Francisco, CA. The company has approximately $212.31 billion of assets under management and has prided itself with conservative investment standards. Dodge and Cox’s reputation has recently been put to the test when it increased investments in AIG, Wachovia, and Fannie Mae in 2007, only to see the stocks of all three severely drop, making 2008 one of Dodge and Cox’s worst years.
What I Like About Dodge & Cox Funds
- Stable History – Dodge and Cox was founded in the 1930s, in the midst of the Great Depression, giving the company a great reputation of strength, perseverance, and stability through tough times.
- Manager-Retention Rates – Dodge and Cox has a remarkable 97% manager-retention rate because of their focus on long-term contributions, rather than focusing on the managers’ quarterly performance. From 2003 to 2008, less than 5% of managers left the company annually.
- Excellent Stewardship – Dodge and Cox is at the top of the list when it comes to taking care of finances for investors. They have consistently shown strong customs, good boards, sound manager incentives, and organized records.
- Low Expenses and No Fees – All five mutual funds that Dodge and Cox manage are no-load funds with an expense ratio kept as low as possible.
What I Would Like To See Improved
- Minimum Investment Required – Like Fidelity, Dodge and Cox Funds have a $2,500 minimum investment required, which excludes a lot of investors.
- No Other Services Offered – Dodge and Cox is a pure and simple investment company of funds, which could be a plus in the companies eyes, but most people like to see a full service investment company that can take care and manage their IRA’s, 529′s, 401(k)’s, and ESA’s.
Dodge & Cox Mutual Funds I Own
- Dodge & Cox International Stock Fund [Ticker: DODFX] This fund has taken a BEATING over the past two years.
Dodge & Cox Mutual Fund To Look At
- Dodge & Cox Stock Fund [Ticker: DODGX] – The object of this fund is to seek long term growth of principal and income, as well as achieving a reasonable current income. This fund has existed since January 4, 1965 with total assets of $42.7 billion and an annual fee expense ratio of 0.52%. The fund also has an average annual return of 10.63% since the inception date.
NOTE: Clemson student Anna Briscoe, a senior majoring in Economics with a minor in Financial Management has been so gracious to research and write the majority of this post.