The table below in this article presents The Skilled Investor’s Fund Authority Score and other information for the Dodge and Cox Stock Fund (DODGX).
The diversified investment fund strategy of the Dodge and Cox Stock mutual fund (DODGX)
According to its website and its prospectus filing on the U.S. Securities and Exchange Commission EDGAR system, the investment objective and strategy of the Dodge and Cox Stock Fund is to seek “long-term growth of principal and income. A secondary objective is to achieve a reasonable current income. … The Fund invests primarily in a broadly diversified portfolio of common stocks. In selecting investments, the Fund invests in companies that, in Dodge & Cox’s opinion, appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth. The Fund focuses on the underlying financial condition and prospects of individual companies, including future earnings, cash flow and dividends. Various other factors, including financial strength, economic condition, competitive advantage, quality of the business franchise and the reputation, experience and competence of a company’s management are weighed against valuation in selecting individual securities.”
As of 12-18-2007, the Dodge and Cox Stock Fund was closed to new investors. If you are interested in a new purchase, check their website or call to find whether this has changed. Current investors can continue to purchase shares.
Fund Authority Scores for mutual funds and exchange traded funds (ETFs) help you sort diversified investment funds quickly.
Fund Authority Scores rate mutual funds and exchange traded funds (ETFs) on the most important economic factors that influence individual investors’ net long term diversified investment fund performance. The Skilled Investor developed the Fund Authority Score system to provide individual investors with concise, objective, and realistic summaries of mutual funds and ETFs for comparisons within investment asset classes.
For a directory of the Fund Authority Score reports of other mutual funds and ETFs, go here. When you go to this Fund Authority Score directory, you can easily find a list of all fund reports at the bottom of each article for that particular investment asset class. For more information about how a Fund Authority Score is developed for each mutual fund or ETF, go here.
The Fund Authority Score for the Dodge and Cox Stock mutual Fund (DODGX)
Using an integer scale ranging from -10 to +10, Fund Authority Scores for equity investment funds measure five factors:
1) annualized management and investment sales expenses (40% weighting),
2) annual trading costs implied by investment fund portfolio turnover (30% weighting),
3) inferior and superior historical performance (20% weighting),
4) minimum fund maturity (5% weighting), and
5) minimum fund size for operating efficiency (5% weighting).
Fund Authority Scores zero in on the most effective strategy that you have to increase your long-term mutual fund and ETF investment returns, which is to cut investment costs to rock bottom. With such a smart, low cost investment strategy, you just have to be a better bargain shopper, when you buy your investments, and then hold on to them.
Over a 30-year retirement investment accumulation period, a $10,000 investment — reduced by a 5.75% initial sales load charge to pay a financial advisor — could grow to $40,734. This result assumes that your investment earns a 5% annual real dollar return after inflation and investment costs, and it ignores any capital gains taxes.
In contrast, if you instead buy no load mutual funds directly, you can cut out the initial sales load charge entirely. You can put ALL of your investment capital to work for you from the outset. And, if you pay annual investment fees that are just one percentage point lower, you could end up with $16,701 more! Your $10,000 initial investment would be worth 41% MORE after 30 years, when compared to the $40,734 retirement portfolio that you get with higher cost funds with sales loads! To learn more, read: “Excessive investment costs are a huge problem for individual investors.”
Fund Authority Summary for the Dodge and Cox Stock Fund (DODGX)
|Fund Authority Summary||Dodge and Cox Stock Fund||Fund Authority Score|
|Closed to new investors (noted on 12-18-07)|
|FUND AUTHORITY SCORE (scale of -10 to +10)||8|
|FUND AUTHORITY SCORING COMPONENTS|
|A) Management expenses & sales loads (-4 to +4)|
|-- Annual expense ratio with 12b-1 fees||0.52%|
|-- Front-end sales load with 5 year amortization||0.00%|
|----- Total annual direct costs||0.52%||2|
|B) Fund portfolio transactions costs (-3 to +3)|
|-- Annual turnover as a trading cost proxy||8.0%||3|
|C) Penalize very inferior historical performance and credit average and superior historical performance (-2 to +2)|
|-- Total of the 3 year Morningstar + Lipper ratings||8||2|
|D) Is this fund sufficiently mature? (0 or +1)||1|
|E) Very small fund efficiency penalty (-1 or 0)||0|
|INVESTMENT FUND OVERVIEW|
|-- Type of investment fund||no load mutual fund|
|-- Active versus passive management||actively managed fund|
|-- Total net assets||$65.6 Billion|
|-- Type of investment portfolio securities||stocks - equities|
|-- Geographic focus||United States|
|-- Market capitalization of portfolio securities||large|
|-- Strategy skew (value/growth/neither)||neither|
|-- Target performance benchmark index||Standard and Poors 500 Index|
|-- Year of inception||1965|
|-- Trading symbol||DODGX|
|-- Share class evaluated||direct purchase investor shares|
|-- Front end load charge (percentage)||0.00%|
|-- Minimum initial deposit for individual investor||$2500 for taxable account|
|TOP 10 INVESTMENT SECURITIES HOLDINGS||Hewlett-Packard Company (HPQ)|
|Comcast Corporation A (CMCSA)|
|Motorola Inc. (MOT)|
|Chevron Corporation (CVX)|
|News Corporation Ltd. A (NWS.A)|
|Wal-Mart Stores Inc. (WMT)|
|Sony Corporation ADR (SNE)|
|Sanofi-Aventis ADR (SNY)|
|Wachovia Corporation (WB)|
|Pfizer Inc. (PFE)|
|----- Top 10 Investment Portfolio Holdings (%)||29.27%|
|Fund family website||www.dodgeandcox.com|
|Customer service telephone number||800-621-3979|
|SEC EDGAR filings and/or fund website accessed||18 December 2007|
– Most mutual funds and ETFs change their fees and trading strategies relatively little over time. Because investment expenses, trading/turnover costs, fund maturity, and operating efficiency account for 80% of the Fund Authority Score rating system, Fund Authority Scores tend to remain relatively stable over time for such consistent investment funds.
– The date in the table above indicates when fund information was accessed from SEC EDGAR filings and/or the fund company website. Normally, data used to develop Fund Authority Scores rely upon reporting periods ending the previous calendar quarter or half year.
– It is sad to have to say this, however, with ethical standards on the web being a bit low … unless otherwise stated, there are no business arrangements of any kind between The Skilled Investor and any financial product, service, or company that may be discussed in our publication’s articles. To avoid conflicts of interest, The Skilled Investor does NOT accept any compensation – in cash or in kind – that would affect our editorial content.
– Fund Authority Scores are developed on a fund by fund basis. Just because a mutual fund or ETF has a high Fund Authority Score does not mean that other funds from that fund family do, as well. On your own, always be careful to check current management expenses, sales loads, portfolio turnover, fund maturity, fund size, fund performance, and other current factors before investing in any diversified investment fund.
– If you do not need and/or are unwilling to pay the direct and indirect costs of an investment counselor, stock broker, or other financial advisory intermediary, you should note that many mutual funds can be purchased directly from diversified investment fund families by accessing their websites or by calling their customer service telephone numbers. Similarly many ETFs can be purchased with lower transactions fees through discount brokers. (See these articles: Payment of Investment Advisors, Financial Planners, and Investment Counselors)
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