2026 fund picks: Dodge & Cox Worldwide Global Stock

For the second year in a row Dodge & Cox Worldwide Global Stock has been included among Tom Stevenson’s annual fund picks. The performance in 2025 was perfectly satisfactory and the rationale for its inclusion remains exactly the same as it was 12 months ago. 

The fund’s managers employ a value-focused approach to the international equity market, resulting in a materially underweight position in North America, particularly in the giant tech companies. This positioning leaves it well-placed to profit from a continued rotation away from expensive sectors in the US. 

Dodge & Cox Worldwide Global Stock benefits from experienced analysts and a disciplined bottom-up stock picking process that has been applied consistently through a range of market conditions. Its pragmatic valuation approach has helped it build a good long-term record and earn a place in Fidelity’s Select 50 list of handpicked funds.

Objective and approach 

The fund provides exposure to an actively managed core global equity portfolio with a modest allocation to the emerging markets. It holds a diversified range of medium-to-large, well-established companies which appear temporarily undervalued but offer favourable prospects for long-term growth.¹

There are a number of different factors that go into the stock selection decisions. These include: the company’s financial strength; economic condition; competitive advantage; quality of franchise; environmental, social, and governance (ESG) considerations; as well as the reputation, experience and competence of the management.²

The team prefer a fair company at a good price to a good company at a fair price. This means that the fund can own businesses with growth characteristics that appear cheap as well as more deep value, contrarian ideas. 

What are the managers’ latest views?

In a recent update, the managers said that their approach is grounded in strong valuation discipline and rigorous fundamental analysis. Rather than targeting specific regional or sector allocations, they focus on identifying mispriced, durable business franchises.

“The fund’s portfolio continues to be diversified across a broad range of investment themes. Additionally, the fund trades at a meaningful discount to the MSCI ACWI, at 13.1 times forward earnings versus 19.4 times.”³

The underlying portfolio 

At the end of September, the fund held 94 companies, with the ten largest positions accounting for 23.9% of the assets. These included a diverse mix of stock-specific opportunities such as the Taiwan Semiconductor Manufacturing Co, GSK, Alphabet and Charles Schwab.⁴

Top 10 holdings

1. Alphabet
2. Taiwan Semiconductors
3. RTX Corp
4. Charles Schwab
5. GSK
6. Bayer
7. HDFC Bank
8. Regeneron Pharmaceuticals
9. FedEx Corp
10. Prudential

Source: Dodge & Cox Worldwide Global Stock Fund factsheet, 31 December 2025.

Regionally, the largest underweight was the US at 47.5%, compared with 65% in the MSCI All Country World Index, with the main overweights being developed Europe ex UK, the UK and the emerging markets. At the sector level, health care and financials were the most favoured, whereas IT was almost 20% below the benchmark at just 7.6%.⁵ 

Dodge & Cox Worldwide Global Stock is very different from the index, with an active share of 87.9% and a clear value tilt. Its forward price-to-earnings, price-to-book and price-to-sales ratios are all significantly cheaper than the benchmark, while the trailing dividend yield of 2.1% is higher.⁶ 

Performance and cost

Over the past 10 years, the GBP accumulating share class has generated an average annual total return of 12.3%. This is marginally ahead of the benchmark’s 11.9% (measured in US dollars), despite the significant underweight exposure to US tech companies.⁷

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This fund invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Before investing, please read the relevant key information document which contains important information about the fund. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.