Summary

• The Dodge & Cox Income Fund Class I shares returned 0.04% in the first quarter of 2026, slightly outperforming the Bloomberg U.S. Aggregate Bond Index’s decline of 0.05%.
• During the quarter, Dodge & Cox reduced the Fund's weighting in Agency mortgage-backed securities by approximately six percentage points amid richer valuations for the sector.
• Dodge & Cox initiated positions in select opportunities, including Amazon, Salesforce, and Mexico sovereign bonds, and added to several other holdings during the first quarter.
• Key contributors to relative results included the Fund's credit issuer selection, an overweight to Agency MBS, and Ginnie Mae-guaranteed Home Equity Conversion Mortgage holdings.
• Dodge & Cox is optimistic about long-term return prospects for fixed income given attractive starting nominal and real yields, supported by active management and differentiated positioning.

Market Commentary

Volatility returned to bond markets in the first quarter of 2026. Early in the quarter, U.S. Treasury yields declined and credit spreads narrowed. However, the outbreak of the Iran conflict in late February drove interest rates sharply

97 Followers