Dodge and Cox Income

These are NOT the subprime CDOs which are blowing up. These are generally primary mortgage pass-throughs from conforming loans (ie. 20%+ down payment, below certain caps, etc).

Some of them. Those are called "agencies" not "mortgages". And both are investment-grade or better (ie. principal is safer than the highest rated corporates). If you are looking at fixed income, the only thing with more secure principal than that are US Treasuries.

DODIX has 32% in US Corporates, 43% in mortgage pass-thru. The mortgage pass-thrus are apparently mostly FNMAs.

DODIX is about as well-managed as a bond fund can be.

The last year it lost money was 1999, when it lost a whopping 0.8%.

It's lagged its index this last year, probably due to being light on treasuries - in the face of market uncertainties, the flight-to-treasuries often makes their gains, especially against other conservative fixed-income securities, kind of crazy. But long-term, that fund has performed very comparably to the lehman agg. I'm not sure it adds much over just buying, say, Vanguard's lehman-agg based index fund. Both have very comparable long-term total returns, similar durations and average effective maturities, etc. Somewhat different asset mix (ie. the agg has some treasuries and very little cash), but both have more mortgage pass-thrus than anything else.

Anyway, that may be more than you wanted to know. The short story is that mortgage pass-thrus in these things are *not* the leveraged subprime CDO crappola which has been blowing up on folks.

holdings:

researched:

What percentage of the fund's holding is in these bonds?

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This web site did not break into percentages

pages of holding with no totals by category.

Thanks for the input everyone

Weathermanbill

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percentages

Then you don't know how much exposure the fund has to these. Buying a mutual fund spreads your exposure.

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