Dodge & Cox Balanced Fund (DODBX)

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Dodge & Cox funds are popular among the long term investor. This article will provide the Dodge & Cox Balanced fund review.

Dodge & Cox Balanced Fund (DODBX)

The objective of Dodge & Cox Balanced fund is to seek regular income, conservation of principal, and an opportunity for long-term principal growth and income. This hybrid fund invests in a diversified portfolio of common stocks, preferred stocks, and fixed income securities. For stocks, the management invests in undervalued and have a favorable outlook for long-term growth companies. This balanced fund will focus on the underlying financial condition and prospects of each companies.

Fund Details
Dodge & Cox Balanced Fund
  • Fund Inception Date: 06/26/1931
  • Ticker Symbol: DODBX
  • CUSIP: 256219106
  • Beta (3yr): 1.37
  • Rank in category (2011): 69%
  • Category: Moderate Allocation
  • Yield: 2.40%
  • Capital Gains: 0%
  • Expense Ratio: 0.53%  
  • Net Assets: $ 12.39 billion
  • Number of Years Up: 41 years
  • Number of Years Down: 10 years
  • Annual Turnover Rate: 12.0%
Updated on 1/20/2012

This DODBX fund is currently managed by John R. Gunn. He started managing this fund since January 1977. This fund has total net assets of $12.39 billion. The dividend yield of this fund is 2.40%. The most recent dividend distribution is done on December 2011 ($0.41). The annual expense ratio of this fund is 0.53%. This is lower compared to the average in Moderate Allocation category (0.99%). There is no 12b1 fee and no front-end sales load fee.

This fund has 2-stars rating from Morningstar. This moderate allocation fund has recorded 41 years of positive return since its inception in 1931. The best achievement within these 41 years was recorded in 2009 with 28.37%. Based on the load adjusted return, this fund has the performance as follow:
  • 1-year: -1.66%
  • 3-years: 12.31%
  • 5-years: -0.86%
  • 10-years: 4.75%
This balanced fund can be purchased from 83 brokerages like E Trade Financial, JP Morgan, Merrill Lynch, T Rowe Price, Fidelity Retail Funds Network, TD Ameritrade Inc, Schwab Institutional, etc. The minimum initial investment to start investing in this fund is $2,500 for brokerage account and $1,000 for IRA account. The minimum subsequent investment for both accounts is $100. This is a no-load fund. Please check with your broker for details about how to buy this fund.

The Dodge & Cox offers 5 main mutual funds. They are Dodge & Cox Stock FundDodge & Cox Global Stock FundDodge & Cox International Stock FundDodge & Cox Balanced Fund, and Dodge & Cox Income Fund

As of September 30, 2011, the top 10 largest stocks of this moderate allocation balanced fund are Hewlett-Packard Co (2.8%), Wells Fargo & Co (2.8%), Comcast Corp (2.6%), Capital One Financial Corp. (2.5%), Merck & Co. Inc (2.5%), Sanofi (2.3%), Novartis AG (2.2%), Glaxo Smith Kline PLC (2.1%), Amgen, Inc (2.1%) and General Electrics Co (2.0%). The five largest corporate issuers are Bank of America Corp (0.7%), HCA Inc (0.7%), Burlington Northern Santa Fe Corp (0.6%), Citigroup Inc (0.6%) and Union Pacific Corp (0.6%).

Investing in mutual fund does involve risks. The principal risks are issuer risk, management risk, equity risk, liquidity risk, market risk, non-U.S. issuer risk, etc.

Disclosure: No Position

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