7.8 in Foreign Large Value
U.S. News evaluated 111 Foreign Large Value Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
| Scorecard | |
|---|---|
| Morningstar | 4 / 5 Stars |
| Lipper | 5 5 1 5 3 |
| Zacks Investment Research | 1 (Strong Buy) |
| Standard & Poor's | 4 / 5 Stars |
| TheStreet.com | C (Hold) |
Fund Overview
The Dodge & Cox International Stock Fund, which recently had large stakes in emerging markets and cash-generating pharmaceuticals, boasts seasoned management and low expenses.
As of April 04, 2012, the fund has assets totaling $40.10 billion. Its portfolio consists primarily of diversified large-value stocks issued by non-U.S. companies.
Dodge & Cox International Stock is heavily invested in the emerging markets and Europe. Management's stance is unique in the fact that it only has a small investment in China. It says many companies there are overvalued. The fund had another strong year in 2010 as it finished among the top of its category returning 14 percent.
The fund’s investments in troubled financials and a larger-than-usual stake in emerging markets hurt the fund in 2008. However, the fund’s 2009 rebound was due in part to a powerful rally in emerging markets stocks. The fund’s rebound also was aided by its overweighting in the healthcare sector, with strong performance by such pharmaceuticals as Novartis and GlaxoSmithKline. The fund’s overweighting in information technology and media stocks also contributed to its performance in 2009, says Diana Strandberg, one of the fund’s nine managers. Overall, the fund had a banner year in 2009, returning 47.5 percent. The fund has returned -7.61 percent over the last year and 22.20 percent over the last three years.
Dodge & Cox International has been a strong performer since its May 2001 inception. The fund has returned -2.07 percent over the last five years.
| Trailing Returns | Updated 03.31.2012 |
|---|---|
| Year to date | 12.7% |
| 1 Year | -7.6% |
| 3 Years (Annualized) | 22.2% |
| 5 Years (Annualized) | -2.1% |
| 10 Years (Annualized) | 8.5% |
Investment Strategy
The fund invests in companies with somewhat undervalued stocks. The managers review companies’ underlying financial conditions, focusing on future earnings, cash flow, and dividends. The managers also consider financial strength, competitive advantages, business franchise quality, and the reputation and experience of a company’s management.
Role in Portfolio
Morningstar calls this a “core” investment.
Fund Opinion
The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.
Money 70
The fund appears on the 2010 “Kiplinger 25” list of the best no-load mutual funds.
Kiplinger 25
This fund received the Silver award for the International Equity category in Standard & Poor’s 2010 Mutual Fund Excellence Awards.
Standard & Poor's 2010-11-01
The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 5 on a scale of 1 to 5, with 1 being the best and 5 the worst.
Value Line 2012-03-09
Management
The fund is run by a nine-member committee. The managers have an average of 19 years of experience at Dodge & Cox. All of the firm’s analysts are somewhat involved in decision-making, according to Morningstar. John A. Gunn is the chairman and chief executive officer of the fund. He joined Dodge & Cox in 1972 and is a trustee of the Dodge & Cox Funds.
Morningstar gives this fund a stewardship rating of A on a scale of A to F, and says, “This fund incorporates many of the industry's best practices for stewardship: It's backed by a strong fundholder-focused corporate culture, it charges a low fee, and it has a clean regulatory history.”
Morningstar 2011-02-01
Performance
The fund has returned -7.61 percent over the past year, 22.20 percent over the past three years, -2.07 percent over the past five years, and 8.48 percent over the past decade.
Hypothetical Growth of $10,000
Updated 03.31.2012
The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 5 for one year, 4 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.
Value Line 2012-03-09
Holdings
According to the prospectus, “The fund invests primarily in a diversified portfolio of equity securities issued by non-U.S. companies from at least three different foreign countries, including emerging markets. The fund focuses on countries whose economic and political systems appear more stable and are believed to provide some protection to foreign shareholders. The fund invests primarily in medium-to-large, well-established companies based on standards of the applicable market.”
Asset Allocation
| % Long | % Net | |
|---|---|---|
| Cash | 0.0 | 0.0 |
| Stocks | 6.27 | 6.27 |
| Bonds | 0.0 | 0.0 |
| Other | 1.38 | 1.38 |
| Foreign Bonds | 0.0 | 0.0 |
| Foreign Stocks | 92.36 | 92.36 |
| Convertible | 0.0 | 0.0 |
| Preferred | 0.0 | 0.0 |
Updated 12.31.2011
Top Holdings
Performance as of 03.31.2012
Portfolio as of 12.31.2011
| Ticker | YTD Return % | % Net Assets | |
|---|---|---|---|
| Roche Holding AG | RHHVF | 8.29 | 3.85 |
| Sanofi | SAN | --- | 3.68 |
| Naspers Ltd | NPN | --- | 3.33 |
| Vodafone Group PLC | VODPF | 1.09 | 3.3 |
| Bayer AG | BAYN | --- | 2.81 |
Fees
Dodge & Cox International Stock Fund has an expense ratio of 0.64 percent.
Risk
Says Morningstar: “With its high emerging-markets exposure and contrarian posture, this fund isn’t going to offer the smoothest ride. It’s not conservative, but it’s a fine choice for long-term investors.”
The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.
Value Line 2012-03-09
