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DODLX Dodge & Cox Global Bond. I like the numbers and the pedigree. But what do I know? I'm considering this fund for part of my bond portfolio, which is most of my stuff these days. But only after my primary fund PRSNX gets to be a behemoth and nearly out of control. I like PRSNX a lot. My other bond fund is PTIAX. What say you all about DODLX?
With Citi Bank giving 2.36% interest I'm thinking of parking my money there. Honestly dunno why I would risk money in actively managed bond fund at this time.
This is what happens when you have been getting 0% interest in your bank account for so long, now you think 2.36% is a fantastic return.
Granted, not like some stock fund returns this year. I do put more weight on the fact that PTIAX and PRSNX pay monthly. It's just more convenient. Even though I'm still re-investing everything, there will come a time when I'll be using that income. The PTIAX div has become half of what it was during the easy money ZIRP years, but even so, a monthly per-share div these days of 7 cents is maybe the best I've seen anywhere. (And I got in just when the 7-cent regime took hold.)
Risk/Reward looks good to me on these three. Yes, I could get 3.5% in a 5 year CD with Navy Fed Cr Union, but rates over the intermediate and long term will go up, n'est pas? When I see a 5% or so CD, that's when I'll park money in such a vehicle.
My ethical filter has a long memory, too. I won't do business with the Big Banks that have been and continue to be pimples on the ass of progress, with no sense of right and wrong. ("The Big Short.") Credit Unions for me.
It’s a relatively new global bond fund. Less than 5 year history. Like all D&C funds it has a relatively low ER (.45%). Lipper shows it about 54% U.S. & Canada. Roughly 20% Europe, 20% Latin America. While Lipper ranks it 5 in most areas, it receives a 3 for capital preservation. I’d also rate it 2 or 3 for capital preservation. It’s not hard to loose 5-10% in a fund like this during a bad year. However, since it leans heavily towards investment grade debt, it’s apt to do much better than an EM bond fund would do during severe global slumps.
Being a bond fund, interest rate changes globally affect it. (Rising rates usually result in lower bond prices.) It’s hard to get excited about this one (or any rate-sensitive bond fund) in an era of continuing low interest rates worldwide. Heard just yesterday that rates in Germany have now gone negative.
DODLX should post better long term returns than their better known domestic bond fund DODIX. The most obvious reason is that there’s more risk (hence potential reward) in international investing. The managers juice return a bit with limited exposure to EM debt (around 5-10%).
I know dividends are not paid out monthly. Paid either quarterly or semi-annually.
A private fund managed and funded by Dodge & Cox was reorganized into the Fund and the Fund commenced operations on May 1, 2014. This private fund commenced operations on December 5, 2012, and had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. However, the private fund was not registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”), and therefore was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance. The Fund’s performance for periods prior to the commencement of operations on May 1, 2014 is that of the private fund. The performance of the private fund has not been restated because the net total operating expense ratio of the private fund and the Fund are the same.
From date of inception to 2/12/2016, when it was at its nadir, the fund lost 12%, which would be outside my personal comfort zone for a bond fund. It has rebounded dramatically, no doubt about that. In fact, over the past five years it has outperformed the firm's own foreign STOCK fund. That's not what I'd call "ballast."
I'm with @sfnative. Had it on watch for a while after inception, decided it was way out of my risk zone, for just about any category of debt fund. I'd say stick with PRSNX and add some PIMIX/PONAX if you want a roughly complementary (not similar, complementary) debt fund without scooting up the risk level a lot.
@AndyJ and @sfnative. I appreciate you stopping to tell me that. Your descriptions in particular have steered me away. At this point, newly-retired (wife still works) I'm wanting "ballast" that is rather unexciting and dependable. By the way, it's not PONAX I own, it's PTIAX, along with PRSNX.
@Crash - I think one of your questions pertained to distributions. Today seems to have been a quarterly distribution date for DODLX and some other D&C funds
(2019) “The Dodge & Cox Stock Fund, Balanced Fund, Income Fund and Global Bond Fund declare and pay dividends (if any) quarterly in March, June, September and December. If the Funds have net capital gains for the year, they are distributed in December and, if necessary, again in March. Distributions in 2019 will be made to shareholders who own shares of the Funds on March 25, June 24, September 24, and December 18.”
BTW - Enjoyed the contribitions several made to the thread. I’m aware DODLX had a rough start out of the gate after it opened - because I own(ed) some. Like I said, 5-10% downside in any given year is a distinct possibility. You’re playing with a couple important variables: (1) prevailing global interest rates and also (2) foreign currency exchange rates. That’s a double-edged sword. That said, I’ve found a small spot for the fund. I doubt it will lose 12% (consecutive) again. That was perhaps an aberration due to it’s being quite new.
Appreciate the words, @hank. Yes, it's not a big deal, but I prefer monthlies rather than quarterlies. Another D & C bond fund paid .11 cents/share today. DODIX. That's the one I have those folks in--- the couple whose money I babysit, along with two others, to go along with their stock funds and balanced funds. (PRSNX and MAINX.)
By the way, it's not PONAX I own, it's PTIAX, along with PRSNX.
Understood. I was suggesting that if you wanted to add a new fund to the portfolio, as the original question implied, to limit an already large exposure to PRSNX, Pimco Income would be a decent complement to PRSNX and give you some manager and process diversification.
By the way, it's not PONAX I own, it's PTIAX, along with PRSNX.
Understood. I was suggesting that if you wanted to add a new fund to the portfolio, as the original question implied, to limit an already large exposure to PRSNX, Pimco Income would be a decent complement to PRSNX and give you some manager and process diversification.
@AndyJ OK, now I get you. PONAX or PIMIX. I suppose they are different shae classes? Anyhow, you are specifically suggesting Pimco Income. Thank you!
Edited: I see PIMIX with a $1M minimum. PONAX carries a 3.75% load. I'm not yet with any of those brokerage houses. Maybe when I select one, I can get that fund with the load waived.
Same thing at Fidelity, and prob'ly some other brokerages too.
@Crash, just wanted to give you a shoutout for getting me to look at PRSNX again. I'd owned it early in its existence, when it did really well right out of the gate but faded significantly thereafter, leading me to dump it. Had forgotten about it; now have owned a slug in the IRA for several months and happy with it. It's for sure a less risky way to get some good out of foreign FI when the asset class is running well.
Comments
This is what happens when you have been getting 0% interest in your bank account for so long, now you think 2.36% is a fantastic return.
PRSNX 3.35
PTIAX 2.48
Granted, not like some stock fund returns this year. I do put more weight on the fact that PTIAX and PRSNX pay monthly. It's just more convenient. Even though I'm still re-investing everything, there will come a time when I'll be using that income. The PTIAX div has become half of what it was during the easy money ZIRP years, but even so, a monthly per-share div these days of 7 cents is maybe the best I've seen anywhere. (And I got in just when the 7-cent regime took hold.)
Risk/Reward looks good to me on these three. Yes, I could get 3.5% in a 5 year CD with Navy Fed Cr Union, but rates over the intermediate and long term will go up, n'est pas? When I see a 5% or so CD, that's when I'll park money in such a vehicle.
My ethical filter has a long memory, too. I won't do business with the Big Banks that have been and continue to be pimples on the ass of progress, with no sense of right and wrong. ("The Big Short.") Credit Unions for me.
Being a bond fund, interest rate changes globally affect it. (Rising rates usually result in lower bond prices.) It’s hard to get excited about this one (or any rate-sensitive bond fund) in an era of continuing low interest rates worldwide. Heard just yesterday that rates in Germany have now gone negative.
DODLX should post better long term returns than their better known domestic bond fund DODIX. The most obvious reason is that there’s more risk (hence potential reward) in international investing. The managers juice return a bit with limited exposure to EM debt (around 5-10%).
I know dividends are not paid out monthly. Paid either quarterly or semi-annually.
https://www.sec.gov/Archives/edgar/data/29440/000119312514047900/d647972d485apos.htm#toc152158_1g
A private fund managed and funded by Dodge & Cox was reorganized into the Fund and the Fund commenced operations on May 1, 2014. This private fund commenced
operations on December 5, 2012, and had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. However, the private fund was not registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”), and therefore was not subject to certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, which, if applicable, may have adversely affected its performance. The Fund’s performance for periods prior to the commencement of operations on May 1, 2014 is that of the private fund. The performance of the private fund has not been restated because the net total operating expense ratio of the private fund and the Fund are the same.
(2019) “The Dodge & Cox Stock Fund, Balanced Fund, Income Fund and Global Bond Fund declare and pay dividends (if any) quarterly in March, June, September and December. If the Funds have net capital gains for the year, they are distributed in December and, if necessary, again in March. Distributions in 2019 will be made to shareholders who own shares of the Funds on March 25, June 24, September 24, and December 18.”
BTW - Enjoyed the contribitions several made to the thread. I’m aware DODLX had a rough start out of the gate after it opened - because I own(ed) some. Like I said, 5-10% downside in any given year is a distinct possibility. You’re playing with a couple important variables: (1) prevailing global interest rates and also (2) foreign currency exchange rates. That’s a double-edged sword. That said, I’ve found a small spot for the fund. I doubt it will lose 12% (consecutive) again. That was perhaps an aberration due to it’s being quite new.
Edited: I see PIMIX with a $1M minimum. PONAX carries a 3.75% load. I'm not yet with any of those brokerage houses. Maybe when I select one, I can get that fund with the load waived.
@Crash, just wanted to give you a shoutout for getting me to look at PRSNX again. I'd owned it early in its existence, when it did really well right out of the gate but faded significantly thereafter, leading me to dump it. Had forgotten about it; now have owned a slug in the IRA for several months and happy with it. It's for sure a less risky way to get some good out of foreign FI when the asset class is running well.