5
Morningstar FundInvestor
September
2013
Morningstar Analyst Rating
08-23-13
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
37.55
34.64
29.24
35.71
31.85
21.90
46.02
43.66
35.03
30.64
23.48
15.81
Total Return %
8.40
21.03
-15.97
13.69
47.46
-46.69
11.71
28.01
16.75
32.46
49.42
-13.11
+/-MSCI EAFE
0.25
3.71
-3.83
5.94
15.68
-3.31
0.54
1.67
3.21
12.21
10.83
2.83
+/-MSCI WexUS
5.50
4.20
-2.26
2.54
6.01
-1.16
-4.94
1.36
0.13
11.55
8.59
1.84
Income Return %
0.00
2.55
2.13
1.55
1.99
2.04
2.89
1.61
1.14
1.02
0.90
0.72
Capital Return %
8.40
18.48
-18.10
12.14
45.47
-48.73
8.82
26.40
15.61
31.44
48.52
-13.83
Total Rtn % Rank Cat
13
16
81
6
6
82
21
34
16
1
8
52
Income $
0.00
0.75
0.76
0.50
0.44
0.94
1.26
0.56
0.35
0.24
0.14
0.13
Capital Gains $
0.00
0.00
0.00
0.00
0.00
1.58
1.50
0.62
0.39
0.22
0.00
0.06
Expense Ratio %
.
0.64
0.64
0.65
0.65
0.64
0.65
0.66
0.70
0.77
0.82
0.90
Income Ratio %
.
2.31
2.23
1.58
1.58
2.37
3.11
1.82
1.54
1.90
1.54
1.30
Turnover Rate %
.
10
16
15
21
35
16
9
7
6
11
12
Net Assets $mil
45,221
40,556
35,924
43,406
36,758
25,053
53,426
30,899
13,357
4,203
655
117
Performance
08-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-12.97 33.37 24.39 2.13 47.46
3.70 -14.05 18.14 7.96 13.69
2.52 0.46 -21.72 4.23 -15.97
12.72 -8.34
7.41 9.06 21.03
3.64 1.70
. . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE WexUS
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-0.50 -0.69
1.02
59 9,950
5.15 1.44
5.22
13 10,515
22.29 3.63
9.31
5 12,229
9.69 0.41
2.76
22 13,198
3.22 1.60
1.74
17 11,717
10.01 2.44
1.67
6 25,961
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
8.91
19
0.71
72
2.17
21
1.02
83
9.20
6
0.74
38
Potential Capital Gain Exposure: -7% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
22.29
3 Yr
9.69
+Avg
+Avg
5 Yr
3.22
+Avg
High
10 Yr
10.01
High
High
Incept
8.15
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
MSCI Wd xUS
Alpha
0.3
0.6
Beta
1.03
1.05
R-Squared
96
96
Standard Deviation
18.62
Mean
9.69
Sharpe Ratio
0.59
Morningstar’s Take
by Gregg Wolper 08-23-13
The dedication of Dodge & Cox International’s
managers pays dividends.
This fund’s June 30, 2013, portfolio shows many
fine year-to-date performers, but one stands out:
embattled Hewlett-Packard HPQ, which had gained
87% through Aug. 16 before falling back on
a less-than-rosy report a week later. The managers
have had to defend that pick since buying it in early
2011 as its share price tumbled, but convinced of its
long-range potential, they continually built the stake. In
fact, they made hefty additions when the stock was at
very low levels in the fourth quarter of 2012.
The fund has benefited over a longer period from
the managers’ commitment to major pharmaceutical
firms, whose prospects were widely doubted in the
mid-2000s amid fears of patent expirations and
expected legislation. (The managers still hold those
firms, considering them good values even after strong
share-price gains.) The managers also own some
European banks, despite the well-known risks in that
region. Solid performance from all of the above areas,
and top holding Naspers NPN (a South African
Internet company owned since 2007), helps explain
the fund’s top decile ranking so far this year.
This result illustrates how the fund benefits from
withstanding the temptation to avoid highly publicized
risks. But it also succeeds because of its more
conservative or prosaic traits, such as a stable,
long-tenured management team and a low expense
ratio, which was just 0.64% in 2012. Because it does
buy companies facing issues, some picks will struggle.
For example, it’s an open question if its long-term
commitment to Nokia NOK, which has caused plenty
of pain, will ever pay off.
But the large majority of its decisions do work out.
The fund’s 10-year annualized return through Aug. 21
of 10.4% lands in the sixth percentile of the foreign
large-blend category. From its 2001 launch to the
present, it has crushed both the MSCI ACWI ex-US
Index (which has a hefty emerging-markets weighting,
like this fund) and the category average. A long-term
perspective, though, is crucial for shareholders here.
Address:
Dodge & Cox Funds
San Francisco, CA 94104
800-621-3979
Web Address:
Inception:
05-01-01
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:
0.60%
Actual Fees:
Mgt:0.60% Dist:
.
Expense Projections:
3Yr:$205
5Yr:$357 10Yr:$798
Income Distribution:
Annually
Data through August 31, 2013
Dodge & Cox International Stock
Ticker
Status Yield Total Assets
Mstar Category
DODFX Open
2.0% $45,221 mil
Foreign Large Blend
93% 95% 97% 98% 98% 97% 99% 98% 98%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 08-13
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
MSCI EAFE
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.8
26.8
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:86 Sector
Country
% Assets
Naspers Ltd
Comm Svs South Africa
4.13
Roche Holding AG
Hlth care Switzerland
4.11
Sanofi
Hlth care France
3.77
Lafarge Sa
. .
2.97
Credit Suisse Group
Finan Svs Switzerland
2.75
Novartis AG ADR
Hlth care Switzerland
2.66
Royal Philips NV
Technology Netherlands
2.64
Bayer AG
Hlth care Germany
2.50
Hewlett-Packard Co
Technology United States
2.49
HSBC Holdings PLC
Finan Svs U.K.
2.47
Mitsubishi Electric Corp
Technology Japan
2.37
GlaxoSmithKline PLC ADR
Hlth care U.K.
2.29
Vodafone Group PLC
Comm Svs U.K.
2.01
Schlumberger NV
Energy
United States
2.01
Barclays PLC
Finan Svs U.K.
1.92
Schneider Electric
Industrl
France
1.74
America Movil, S.A.B. de
Comm Svs Mexico
1.71
Swiss Re AG
Finan Svs Switzerland
1.70
Mtn Group Limited
Comm Svs South Africa
1.70
LM Ericsson Telephone Co
Technology Sweden
1.64
Current Investment Style
Market Cap %
Giant
56.8
Large
37.0
Mid
5.0
Small
1.2
Micro
0.0
Avg $mil:
36,488
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
U.K.
18
Switzerland 15
Japan
13
France
8
Germany
7
Regional Exposure
% Stock
UK/W. Europe 62
Japan
13
Asia X Japan 5
N. America 6
Latn America 5
Other
9
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 34.18
.
BasicMat 3.68
.
9 4
CnsmrCyc 5.90
.
11 6
FinanSvs 23.04
.
23 16
Real Est 1.56
.
2 1
Sensitive 46.13
.
CommSrvs13.38
.
15 11
Energy 6.17
.
9 5
Industrl
6.24
.
11 5
Technlgy 20.34
.
21 14
Defensive19.69
.
CnsmrDef 1.91
.
4 2
Hlthcare 17.78
.
18 14
Utilities 0.00
.
0 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
1.3
Stocks
98.1
Bonds
0.0
Other
0.7
Foreign
94.3
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
13.37
-25.65
-0.01
-7.03
-7.19
1.21
NMF
NMF
NMF
NMF
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.37
1.38
0.90
6.58
2.46
1.02
0.87
0.92
1.22
0.88
©
2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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mfb.morningstar.com.
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