(PUB) Morningstar FundInvestor
November 2013
Morningstar FundInvestor
5
Data through October 31, 2013 Dodge & Cox Income
Ticker Status Yield SEC Yield Total Assets Mstar Category DODIX Open 3.0% 2.23% $25,714 mil Intermediate-Term Bond
Morningstar Analyst Rating 10-28-13
Investment Style Fixed Income Income Rtn %Rank Cat
Historical Profile Return Risk Rating Above Avg Average Above Avg
27
14
22
17
19
11
17
18
35
Œ
Manager Change Partial Manager Change
12.0 14.0 16.0 18.0
Morningstar Pillars Process Performance
Positive Positive Positive Positive Positive
Growth of $10,000
NAV Total Return % +/-BC Agg Bnd +/-BC Agg Bnd Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Investment Values of Fund Investment Values of BC Agg Bnd Performance Quartile (within Category) History
People Parent Price
10.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10-13
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 ¨
12.77 10.75
12.92
12.84 3.64 -0.70 -0.70 4.25 -0.61
12.54 1.98 -0.45 -0.45 4.35 -2.37
12.57
12.51 4.68 -2.29 -2.29 5.15 -0.47
11.79 -0.29 -5.53 -5.53 5.51 -5.80
12.96 16.05 10.12 10.12
13.23
13.30 4.76 -3.08 -3.08 4.23 0.53
13.86
13.64 0.60 1.70 1.70 2.18 -1.58
5.97 1.87 1.87 4.78 1.19 0.60 0.00 0.45 4.81 25
5.30 0.97 0.97 5.00 0.30 0.62 0.00 0.44 4.77 11
7.17 0.63 0.63 5.07 2.10 0.65 0.00 0.43 4.26 57
7.94 3.73 3.73 3.69 4.25 0.48 0.00 0.43 3.52 33
0.49 0.49 5.52 5.23 0.66 0.05 0.45 5.67 5
5.86
10.19
61
41
63
35
30
81
10
Pillar Spectrum Positive
0.54 0.00 0.44 3.61
0.55 0.00 0.44 3.99
0.64 0.00 0.44 5.07
0.68 0.00 0.43 5.40
0.68 0.00 0.43 5.29
0.55 0.00 0.43 4.12
0.30 0.00
§ Negative
¶ Neutral
. . .
Performance 10-31-13 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
31
41
30
24
30
27
24
20
28
27
26
2009 2010 2011 2012 2013
0.26 7.48 2.24 1.99 1.36 1.77 2.97 1.29 0.54 -1.84
5.84 1.76 16.05
3,405
5,697
7,870
25,714 26,539 24,051 22,381 19,240 13,796 15,895 11,972 9,610
2.58 0.19 0.19 1.37 2.50 0.97
7.17 4.76 7.94
Portfolio Analysis 09-30-13
Rating and Risk Time Load-Adj
0.81
Date of Maturity
Amount
Value % Net $000 Assets
Morningstar
Morningstar Risk vs Cat
Morningstar Risk-Adj Rating
. .
Period Return % Rtn vs Cat
Total Fixed-Income:671
$000
1 Yr 3 Yr 5 Yr
0.71 4.25 8.56 5.27 7.36
Trailing
Total
+/- BC
+/- BC %Rank Growth of
Fannie Mae
398,759 431,408 1.69
Return% Agg Bnd Agg Bnd
Cat
$10,000
+Avg +Avg +Avg
-Avg +Avg
Verizon Comms 6.55% California St Go Bds 7.5 Petrobras Intl Fin 5.375 Bk Amer Fdg 7.625% Ford Motor Credit Co 5.7 Chase Issuance Tr 2012-8 Bac Cap Tr Xi 6.625%
09-15-43 333,130 376,083 1.47 04-01-39 259,265 337,433 1.32 01-27-21 288,355 289,677 1.13 06-01-19 219,362 268,996 1.05 02-01-21 237,506 262,439 1.03 10-16-17 262,360 261,773 1.02
3 Mo 6 Mo 1 Yr
1.41 0.17 -0.73 1.24 0.71 1.79 4.25 1.23 8.56 2.47 5.27 0.49 5.95 0.59
0.17 1.24 1.79 1.23 2.47 0.49 0.59
44 10,141 7 9,927 15 10,071 19 11,330 21 15,078 22 16,713 14 23,797
10 Yr Incept
Avg
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
Other Measures
Standard Index
Best Fit Index BC US Credit
BC Agg Bnd
Alpha
2.2
1.5
05-23-36 240,193 258,231 1.01 Time Warner Cable 8.25% 04-01-19 221,533 256,447 1.00 Hca 6.5% 02-15-16 235,225 254,925 1.00 Citigroup Cap Xiii Pfd 219,068 240,186 0.94 FHLMC 4% 10-01-26 225,817 239,103 0.94 Aol Time Warner 7.625% 04-15-31 181,683 226,130 0.88 New Jersey St Tpk Auth 7 01-01-41 171,503 216,730 0.85 FNMA CMO 02-25-43 211,432 210,044 0.82 FNMA 7% 04-01-37 187,754 208,554 0.82 At&T 8% 11-15-31 151,477 206,491 0.81 Illinois St Go Bds 5.365 03-01-17 186,160 201,524 0.79 General Elec Cap Corp Mt 01-08-20 176,845 200,431 0.78 US Treasury Note 0.25% 10-31-14 200,000 200,234 0.78 Current Investment Style Sector Breakdown % of assets
Beta
0.65
0.58
R-Squared
44
84
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 2.85 14 1.34 56 6.90 16 1.53 65 3.95 10 1.25 17 Potential Capital Gain Exposure: 6% of assets Morningstar’s Take by Sarah Bush 10-28-13 Dodge & Cox Income plays the long game. This fund’s managers work off a three- to five-year investment horizon, an approach that is evident in both the portfolio’s super-low turnover ratio and the team’s patience with its picks. During the third quarter of 2013, for example, the team added to the fund’s stake in Petrobras PBR, the partially state-owned Brazilian oil company. Despite recent weakness in these bonds, the managers remained confident in their investment thesis, citing the company’s strategic importance to Brazil and substantial oil reserves. The fund’s patience with a number of long-term themes positioned the fund well for 2013’s rocky bond markets. For starters, in recent years, the managers have run the portfolio with a relatively muted interest-rate profile and the fund came into the year with a 3.7 year duration, well short of its Barclays Aggregate US Bond benchmark and category norms. That caution helped when long-term Treasury yields spiked in mid-2013 following Fed Chairman Ben Bernanke’s suggestion that the Fed would soon start to
Standard Deviation
2.78 4.25 1.49
Mean
Sharpe Ratio
taper its purchases of bonds. Other positives have included the fund’s long-standing and substantial overweighting to corporates (50% as of September 2013) and, in particular, its preference for financial names. The fund wasn’t able to completely sidestep 2013’s troubles, but it held up better than 90% of its peers with a 0.5% loss for the year to date through September 2013. As 2013 shows, this fund is not invincible, and, even with the recent spike in rates, it’s still operating in a historically low-yield environment. Its large corporate stake--including a sizable position in BBBs (31%) and high-yield bonds (11%)--and minimal Treasury exposure also leave it vulnerable to underperformance when credit markets sell off and were behind the fund’s relatively weak showing in 2011. Over the long haul, however, the fund has delivered; its 5.2% annualized 10-year returns bests 75% of peers’. Add in a veteran and well-resourced management team and low expenses and this fund is a keeper.
US Treasury
1 1 1
Duration Ltd Mod Ext
Non US Government Government Related
Quality High Med Low
Corporate 48 Agency MBS Pass-Through 28 Agency MBS ARM 1 Agency MBS CMO 5 Non-Agency Residential MBS 0 Commercial MBS 0 Asset-Backed 3 Municipal 6 Cash & Equivalents 7 Other 0 Composition - Net Cash 6.5 Bonds 90.3 Stocks 0.0 Other 3.2
figure provided by fund
1
1 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Coupon Range
4.4 Yrs 7.6 Yrs
BBB
5.55%
110.29% of par
% of Bonds Rel Cat
0% PIK 0% to 6% 6% to 8% 8% to 10%
0.0 0.0 60.2 0.7 33.6 2.8 6.2 2.0 0.0 0.0
More than 10%
Address:
Dodge & Cox Funds San Francisco, CA 94104 800-621-3979 www.dodgeandcox.com
Minimum Purchase: Min Auto Inv Plan:
$2500 $2500
Add: $100 IRA: $1000
1.00=Category Average
Add: $100
Credit Analysis
Special Securities Restricted/Illiquid Secs Exotic Mortgage-Backed Emerging-Markets Secs Options/Futures/Warrants
% bonds 09-30-13
Sales Fees:
No-load
BB
7
AAA
39
6 0
Web Address: Inception: Advisor: Subadvisor: NTF Plans:
Management Fee:
0.50% mx./0.40% mn. Mgt:0.40% Dist: .
B 4 Below B 0 NR/NA 2
AA
3
01-03-89
Actual Fees:
Dodge & Cox
Expense Projections: Income Distribution:
3Yr:$138 Quarterly
5Yr:$241 10Yr:$542
A
15 31
Trace
None
No
BBB
N/A
Mutual Funds ß ®
© 2013Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely.Past performance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.
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