Although Dodge & Cox Global Bond has lagged recently, management has a long and successful track record of outperformance at other funds.
Cara Esser: Dodge & Cox Global Bond is run by an experienced team that also manages Gold-rated Dodge & Cox Income.
This fund falls into the world bond category and invests with a three- to five-year time horizon in mind. It also focuses on income as an important component of total return.
The fund invests primarily in corporate, sovereign, and securitized assets in developed and emerging markets. Most of the assets are invested in investment-grade-rated bonds, though the fund can and does hold junk-rated securities. Managers can also keep currency positions unhedged.
The fund was incubated at the firm in 2012 and officially launched in late 2014. The recent sell-off in emerging-market bonds has hurt this fund's near-term performance, but investors should not lose sight of the fact that this team has a long and successful track record of picking bonds that outperform over the long term. The fund's expense ratio is also among the lowest in its peer group.
For investors looking for a world bond fund, this is one to keep on your radar.
