Dodge & Cox International Fund: '05 Mid-year Review
This is one of four posts reviewing the mid-year performance of my four mutual funds. This post looks at Dodge & Cox International Stock [DODFX]. This fund is classified as Large Stock Value.
Learn about my other funds...
Dodge & Cox Balanced [DODBX] -- Moderate Allocation*
PIMCO All Asset Institutional [PAAIX] -- Moderate Allocation
Fidelity Diversified International [FDIVX] -- Large Stock Growth*
* Indicates that this fund is closed to new investors.
DODGE & COX INTERNATIONAL STOCK
This is my first year with DODFX, which itself is a relatively new fund. Currently I am making automatic investments in my two international funds on a monthly basis. While I anticipate greater volatility relative to my core funds, I am also banking on higher returns over time.
MARKET HIGHLIGHTS June 30, 2005
The first half of 2005 has been a tough one for many stocks. Select market results include:
- Dow down 4.7%
- S&P 500 down 1.7%
- MSCI EAFE* down 1.17% (U.S. dollars)**
* International index spanning 20+ developed market countries
** Caveat: MSCI EAFE index pulled from Morningstar.com -- I am not 100% sure that Im reading their charts correctly
THE NUMBERS (From Morningstar.com)
Dodge & Cox International Stock
FUND REVIEW
- 05 YTD: Up 1.73%
- 1-Year: Up 22.45%
- Rank
- - 2005 YTD: 9% in category
- - 1-Year: 1% in category
- - Long Term: 2% in category for 3 year annualized return (fund is too new for 5 or 10 yr.)
COMMENTS
This is a new fund for me as of January, 2005. I have very high hopes for this fund (both because it is international, and because it is from D&C). For the past 12 months this fund ranks in top 1% for its category -- with over a 22% return.
Disclosure: At this point in my life Im a cautious investor. As such, my views may or may not be applicable to your investment needs. My portfolio also contains a high percentage of non-fund assets. I respect that your needs and tastes may differ.
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This is one of four posts reviewing the mid-year performance of my four mutual funds. This post looks at PIMCO All Asset Institutional [PAAIX]. This fund is classified as Moderate Allocation. Learn about my other funds... Dodge & Cox Balanced [DODBX] -- Moderate Allocation* Dodge ... Read
This is one of four posts reviewing the mid-year performance of my four mutual funds. This post looks at Dodge & Cox Balanced [DODBX]. This fund is classified as Moderate Allocation.* Learn about my other funds... PIMCO All Asset Institutional [PAAIX] -- Moderate Allocation Dodge ... Read
This is one of four posts reviewing the mid-year performance of my four mutual funds. This post looks at Fidelity Diversified International [FDIVX]. This fund is classified as Large Stock Growth.* Learn about my other funds... Dodge & Cox Balanced [DODBX] -- Moderate Allocation* PIMCO ... Read
It seems interesting to me that you have 2 international funds that have some similar holdings in each. That seems to be too much overlap for a portfolio of only 4 funds. International exposure is excellent (20% of total assets allocation seems to be the max anyone should own). However, that international exposure can be spread over large, mid and small cap funds. For instance, owning one large cap international fund for your core (like one of the ones you have), and maybe a madcap/small blend for better diversification. Being a cautious investor equates to diversification - not owning just large cap stocks. Different sectors of the market move up and down at different times (even large, mid and small caps). Owning some of each (like a 70-20-10 split) gives you better some better diversification.
Thanks Jman. Your observations and comments are good advice. Some additional explanation might help:
1.) The reason I have not limited holdings to a single international fund is that I want to increase my allocation to international, and Fidelity Diversified International is the only viable alternative in my retirement account at work. (If not for the restrictions at work, I would be 100% in D&C International.)
2.) I do not consider my international holdings to be core. Rather, they represent one of the few relatively aggressive investments I hold today.
3.) The original message indicates that D&C Balanced and PIMCO All Asset act as CORE for my Mutual Fund Holdings. Also noted is that mutual funds represent only a portion of my portfolio. The approach I take outside of my mutual funds is somewhat unconventional, but it works for me. I plan to talk more about my portfolio and what / why I do what I do in future posts.
Thanks again, 1stMill
