Dodge and Cox to Launch New Global Stock Fund

February 19th, 2008 · No Comments · Subscribe to this feed

Venerable money management firm Dodge & Cox filed plans last week with the SEC to launch the new Dodge & Cox Global Stock fund, according to Morningstar. Unlike most mutual fund companies that launch new funds in response to every investment fad in a greedy attempt to raise assets under management, this will be only the FIFTH fund in Dodge & Cox’s line-up after almost 80 years in the business. The Global Stock fund will feature the same team-based, disciplined value approach as all their other funds and aim to keep a minimum of 40% of fund assets in foreign stocks.

Despite my preference for index funds, I must acknowledge respect for D&C’s ethics and fund performance. The new fund, without the economies-of-scale possessed by older, larger funds mind you, will launch with an estimated expense ratio of just 0.90%. That’s barely more than half Morningstar’s global stock category average of 1.6%. Other D&C funds charge expense ratios as low as 0.44% for their bond fund (DODIX) and 0.52% for their domestic stock fund (DODGX). Partly because of this cost advantage, D&C funds have consistently performed in the top of their peer groups throughout their history. If I had to recommend an actively-managed retirement portfolio, it would probably consist almost entirely of Dodge & Cox funds.

This new Global Stock fund could make for an above-average one-stop retirement portfolio for the young, cash-strapped investor. Judging from the SEC filing, it will invest mostly in mid and large cap value stocks with a large portion of assets in foreign markets. While there’s no word yet on what the minimum initial investment will be, other D&C funds’ minimums stand at $2,500. Expect the new fund to make its appearance towards the end of Q2, 2008.

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