4
Morningstar Analyst Rating
06-28-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
87.00
78.06
67.45
70.22
64.03
51.26
81.00
87.08
81.34
79.35
73.04
60.75
Total Return %
12.60
18.32
-1.66
12.22
28.37
-33.57
1.73
13.86
6.59
13.30
24.44
-2.94
+/-M* MdTgRk
8.04
6.28
-2.25
-0.11
6.60
-11.38
-6.90
0.91
-0.45
1.82
1.96
3.75
+/-Mstr Md Ag Rk
5.82
3.99
0.27
-2.70
0.82
-2.92
-7.21
-2.13
-2.26
-0.77
-4.70
9.36
Income Return %
1.12
2.47
2.33
2.39
2.98
2.46
2.76
2.73
2.34
2.21
2.76
2.91
Capital Return %
11.48
15.85
-3.99
9.83
25.39
-36.03
-1.03
11.13
4.25
11.09
21.68
-5.85
Total Rtn % Rank Cat
2
1
69
43
23
89
90
13
23
5
17
4
Income $
0.87
1.66
1.62
1.52
1.51
1.95
2.37
2.20
1.84
1.60
1.66
1.88
Capital Gains $
0.00
0.00
0.00
0.00
0.00
1.34
5.28
3.20
1.32
1.68
0.67
0.88
Expense Ratio %
.
0.53
0.53
0.53
0.53
0.53
0.53
0.52
0.53
0.54
0.54
0.53
Income Ratio %
.
2.21
2.26
2.13
2.61
2.85
2.59
2.52
2.15
1.97
2.57
3.12
Turnover Rate %
.
16
19
12
19
27
27
20
18
18
19
25
Net Assets $mil
13,295
12,217
12,220
14,849
15,468
14,700
27,063
27,458
23,611
20,741
13,196
7,885
Performance
06-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-10.35 18.93 15.97 3.82 28.37
5.56 -9.57
8.48 8.37 12.22
4.92 0.67 -14.14 8.45 -1.66
10.85 -2.23
6.59 2.42 18.32
8.83 3.46
. . .
Trailing
Total
+/- M* +/- Mstr
%Rank Growth of
Return% MdTgRk Md Ag Rk
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
3.46 4.00
3.51
1 10,346
12.60 8.04
5.82
2 11,260
22.93 11.83
7.82
1 12,293
15.49 4.67
2.45
2 15,404
7.17 1.53
1.63
10 14,137
7.18 -0.31
-1.10
16 20,005
7.61
. .
4 30,046
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
14.56
2
0.80
66
6.25
9
0.86
62
6.17
12
0.94
48
Potential Capital Gain Exposure: 13% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
22.93
3 Yr
15.49
High
High
5 Yr
7.17
+Avg
High
10 Yr
7.18
+Avg
High
Incept
9.81
Other Measures
Standard Index
Best Fit Index
M* MdTgRk
Russ 1000 Vl
Alpha
1.4
-0.1
Beta
1.29
0.85
R-Squared
94
97
Standard Deviation
12.11
Mean
15.49
Sharpe Ratio
1.25
Morningstar’s Take
by Laura Lallos 06-28-13
Dodge & Cox Balanced’s high stock stake is a sign of
its measured value approach.
This fund can hold between 25% and 75% in
equities, and it is near that upper limit. Meanwhile, the
average moderate-allocation fund currently has a bit
less than the classic 60% allocation to stocks. That
does not make this an aggressive offering per se.
Dodge & Cox is a die-hard value shop, and the
longtime members of the management team run the
portfolio with a three- to five-year time horizon. Given
relatively low stock valuations and low bond yields, the
fund’s asset allocation makes sense.
That equity stake has propelled the fund to the top
of the category over the past 18 months. However, the
fund has been stock-heavy since the financial crisis,
and steep losses from late 2007 through early 2009
spurred heavy outflows. The fund has recovered nicely
from that bottom, though, despite an above-average
loss in 2011. Strong showings from the same
financial-services stocks that hurt in 2011 have
boosted returns lately, as have fixed-income picks in
that sector.
The fund’s three-, five-, and 10-year trailing returns
through May are once again all in the top quartile of
its category. Unfortunately, its dollar-weighted
Morningstar Investor Returns are considerably lower:
a 4.8% annualized 10-year return, for example,
compared with an actual 7.3% return. The fund has
been much more volatile than the typical
moderate-allocation fund, which has no doubt
prompted ill-timed redemptions.
This is not a classic 60/40 balanced fund, and it
may be inappropriate for investors who want a
traditional bond ballast. That said, with bond yields
inevitably heading up, this fund’s allocation seems
quite sensible. What’s more, its bond stake is
relatively low duration and heavy on corporates, which
capitalizes on Dodge & Cox’s industry research
expertise. For value-minded investors who can handle
the risks of the managers’ sometimes contrarian
approach, this portfolio spells opportunity.
Address:
Dodge & Cox Funds
San Francisco, CA 94104
800-621-3979
Web Address:
Inception:
06-26-31
Advisor:
Dodge & Cox
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2500
Add: $100 IRA: $1000
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load
Management Fee:
0.50%
Actual Fees:
Mgt:0.50% Dist:
.
Expense Projections:
3Yr:$170
5Yr:$296 10Yr:$665
Income Distribution:
Quarterly
Data through June 30, 2013
Dodge & Cox Balanced
Ticker
Status Yield Total Assets
Mstar Category
DODBX Open
1.8% $13,295 mil
Moderate Allocation
62% 64% 66% 67% 72% 72% 74% 70% 69%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 06-13
Historical Profile
Return
Risk
Rating
Above Avg
High
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
M* MdTgRk
Performance Quartile
(within Category)
History
10.0
12.5
15.0
18.0
20.5
Portfolio Analysis
03-31-13
Total Stocks:72
P/E
YTD % Net
Share change since 12-31-12
Sectors
Ratio Return % Assets
Hewlett-Packard Co
Technology
.
77.52 2.88
Wells Fargo & Co
Finan Svs
10.2 22.21 2.68
Capital One Financial Cor
Finan Svs
8.9 11.50 2.59
Comcast Corp Class A
Comm Svs
16.4 10.12 2.45
Microsoft Corporation
Technology 14.7 28.79 2.22
Sprint Nextel Corp
Comm Svs
.
26.10 2.20
Time Warner Inc
Cnsmr Cyc
15.5 25.64 2.19
Sanofi ADR
Hlth care
19.2 10.16 2.10
Merck & Co Inc
Hlth care
20.4 15.80 2.07
Date of
Amount
Value % Net
Total Fixed-Income:234
Maturity
$000
$000 Assets
FNMA 4%
02-01-27 77,644 83,099 0.65
FHLMC 4%
11-01-26 57,242 60,909 0.47
May Dept Stores 6.9%
01-15-32 49,699 59,617 0.46
Nbcuniversal Entpr 144A 5
12-31-49
52 52,424 0.41
FNMA 5.5%
08-01-37 41,828 46,147 0.36
FNMA 6%
09-01-36 40,637 45,637 0.35
FNMA FRN
06-01-41 42,058 44,390 0.34
Bk Amer Chrlt Nc Mtn 5.3% 03-15-17 37,540 42,063 0.33
California St Go Bds 7.5% 04-01-34 28,825 40,120 0.31
Equity Style
Fixed-Income Style
Style: Blend
Size: Large-Cap
Duration: Moderate
Quality:
Medium
Avg Eff Duration
3.7 Yrs
Avg Eff Maturity
7.1 Yrs
Avg Credit Quality
BBB
Avg Wtd Coupon
5.91%
figure provided by fund as of 03-31-13
1
1
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.66
1.57
1.14
6.52
2.00
0.96
0.83
0.94
0.95
0.83
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.74
1.74
3.13
0.30
7.01
0.97
1.43
1.29
0.33
1.88
Market Cap %
Giant 47.7
Large 39.1
Mid 12.8
Small
0.4
Micro
0.0
Avg $mil:
50,496
Composition - Net
(% of Stock)
Cash
9.8
Stocks 71.2
Bonds 18.6
Other
0.5
Foreign 17.1
Sector
Weightings
% of
Stocks
Rel M*
MdTgRk High
3 Year
Low
Cyclical 33.60 0.86
BasicMat 2.91 0.51 3 2
CnsmrCyc 8.12 0.69 11 8
FinanSvs 22.57 1.29 24 17
Real Est 0.00 0.00
. .
Sensitive 47.44 1.25
CommSrvs 9.98 2.51 10 9
Energy 6.72 0.73 10 7
Industrl
6.30 0.53 10 6
Technlgy 24.44 1.88 24 18
Defensive18.96 0.83
CnsmrDef 0.36 0.04 3 0
Hlthcare 18.60 1.82 22 18
Utilities 0.00 0.00
. .
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2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or
timely. Past performance isnoguaranteeof future results.Accessupdated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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