fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

Dodge & Cox Worldwide US Stock GBP

Large and mega cap US equities with a value-based approach

  • 1814.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 2959.00p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.60%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.63%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.30%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 May 2020, fund data last updated 09 December 2014

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.

Fund summary

Sector North America
Structure OFFSHORE FUND
Launched November, 2010
Size £0m
Yield 0.30%
Charging basis Capital
Dividends paid 25 Mar, 24 Jun, 24 Sep, 18 Dec

Charges

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 0.63%

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Investment process

The group, based in San Francisco is wholly owned by active employees and has over US$300bn 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$50bn, which is invested in just 66 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.

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.

Manager research

Average monthly relative returns

  • 15/16 -0.45%
  • 16/17 0.48%
  • 17/18 -0.15%
  • 18/19 -0.47%
  • 19/20 -1.11%

Bestinvest MRI

  • 3 years -0.58%
  • 5 years -0.34%
  • Career 0.08%
  • 3 years 9.70%
  • 5 years 16.40%
  • Career 77.30%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Dodge & Cox Investment Policy Committee

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.

Track record

Dodge & Cox Investment Policy Committee has 23.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.08%. During the worst period of relative performance (from May 2006 - March 2020) there was a decline of 33% 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 77%.

Periods of worst performance

Absolute -59.00% (May 2007 - February 2009)
Relative -33.00% (May 2006 - March 2020)

About the MRI

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.

Allocation

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Top 10 holdings

Data accurate as at 30 June 2015

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.
2.8% Schlumberger
Source: Dodge & Cox

Portfolio

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%

Constraints

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.

Key Investor Information - Income

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Key Investor Information - Accumulation

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