0001193125-23-304858.txt : 20231228 0001193125-23-304858.hdr.sgml : 20231228 20231228124949 ACCESSION NUMBER: 0001193125-23-304858 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20231031 FILED AS OF DATE: 20231228 DATE AS OF CHANGE: 20231228 EFFECTIVENESS DATE: 20231228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRIMECAP Odyssey Funds CENTRAL INDEX KEY: 0001293967 ORGANIZATION NAME: IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21597 FILM NUMBER: 231521302 BUSINESS ADDRESS: STREET 1: 177 EAST COLORADO BOULEVARD, 11TH FLOOR CITY: PASADENA STATE: CA ZIP: 91105 BUSINESS PHONE: 626-304-9222 MAIL ADDRESS: STREET 1: 177 EAST COLORADO BOULEVARD, 11TH FLOOR CITY: PASADENA STATE: CA ZIP: 91105 FORMER COMPANY: FORMER CONFORMED NAME: PRIMECAP Management Co DATE OF NAME CHANGE: 20160621 FORMER COMPANY: FORMER CONFORMED NAME: PRIMECAP Odyssey Funds DATE OF NAME CHANGE: 20040629 FORMER COMPANY: FORMER CONFORMED NAME: PRIMECAP Funds DATE OF NAME CHANGE: 20040616 0001293967 S000005539 PRIMECAP Odyssey Stock Fund C000015069 PRIMECAP Odyssey Stock Fund POSKX 0001293967 S000005540 PRIMECAP Odyssey Growth Fund C000015070 PRIMECAP Odyssey Growth Fund POGRX 0001293967 S000005541 PRIMECAP Odyssey Aggressive Growth Fund C000015071 PRIMECAP Odyssey Aggressive Growth Fund POAGX N-CSR 1 d850597dncsr.htm N-CSR N-CSR

As filed with the Securities and Exchange Commission on December 28, 2023

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21597

 

 

PRIMECAP Odyssey Funds

(Exact name of registrant as specified in charter)

 

 

177 East Colorado Boulevard, 11th Floor

Pasadena, CA 91105

(Address of principal executive offices) (Zip code)

 

 

Julietta Martikyan

PRIMECAP Management Company

177 East Colorado Boulevard, 11th Floor

Pasadena, CA 91105

(Name and address of agent for service)

 

 

(626) 304-9222

Registrant’s telephone number, including area code

Date of fiscal year end: October 31

Date of reporting period: October 31, 2023

 

 

 


Item 1. Reports to Stockholders.

 

  (a)


Item 1. Reports to Stockholders.

ANNUAL REPORT

For the Year Ended October 31, 2023

 

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PRIMECAP ODYSSEY STOCK    (POSKX)

PRIMECAP ODYSSEY GROWTH (POGRX)

PRIMECAP ODYSSEY AGGRESSIVE GROWTH  (POAGX)


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Table of Contents

PRIMECAP Odyssey Funds

 

Letter to Shareholders

     2  

Performance Graphs

     10  

PRIMECAP Odyssey Stock Fund

     10  

PRIMECAP Odyssey Growth Fund

     11  

PRIMECAP Odyssey Aggressive Growth Fund

     12  

Sector Breakdown

     13  

Schedule of Investments

     15  

PRIMECAP Odyssey Stock Fund

     15  

PRIMECAP Odyssey Growth Fund

     20  

PRIMECAP Odyssey Aggressive Growth Fund

     26  

Statements of Assets and Liabilities

     33  

Statements of Operations

     34  

Statements of Changes in Net Assets

     35  

PRIMECAP Odyssey Stock Fund

     35  

PRIMECAP Odyssey Growth Fund

     36  

PRIMECAP Odyssey Aggressive Growth Fund

     37  

Financial Highlights

     38  

PRIMECAP Odyssey Stock Fund

     38  

PRIMECAP Odyssey Growth Fund

     39  

PRIMECAP Odyssey Aggressive Growth Fund

     40  

Notes to Financial Statements

     41  

Report of Independent Registered Public Accounting Firm

     50  

Expense Example

     51  

Additional Information

     53  

Management

     60  

Privacy Notice

  

 

1


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

Dear Fellow Shareholders,

For the fiscal year ended October 31, 2023, the PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund produced total returns of +8.13%, +9.30%, and +9.01%, respectively. The unmanaged S&P 500® Index produced a total return of +10.14% during the period. Relative to the S&P 500®, favorable stock selection was unable to offset unfavorable sector allocation in the Stock and Growth Funds, while the Aggressive Growth Fund lagged on modestly unfavorable selection results.

The fiscal year featured a resurgent equity market, peaking mid-summer before faltering somewhat thereafter. Prior to its late-period weakness, the S&P 500®’s rebound had fully retraced last fiscal year’s 15% decline. Market optimism in a “soft landing,” coupled with particular enthusiasm for the promise of artificial intelligence, pushed equities higher. But market strength was narrowly tailored to select large-capitalization growth stocks, with the Russell 1000 Growth Index surging 19%; many other market gauges instead declined during the period, including the relevant Russell indices for value stocks, small-cap stocks, and mid-cap stocks.

The underlying economy proved resilient during the year, supported by a still-tight labor market. The unemployment rate remained below 4%, and job growth sustained at a solid pace. Consumers thus continued to spend reliably, and this consistent strength in personal consumption expenditures translated to healthy real GDP growth. Inflation moderated to roughly 4%; September’s CPI reading was less than half year-ago levels, while Core CPI remained above target but was trending lower.

The Federal Reserve, meanwhile, persisted in its aggressive tightening campaign, executing 11 rate hikes totaling 525 basis points dating back to last year. The relentless rise in rates sparked a short-lived regional banking crisis in March, underscored by Silicon Valley Bank’s overnight collapse. The Fed eventually paused its campaign, but interest rates continued to drift higher. Rising yields applied increasing pressure to a variety of rate-sensitive industries, and ultimately tipped market sentiment negative into year-end.

Communication services (+36%) and information technology (+33%) were the undisputed winning sectors in a comeback year for Big Tech. Indeed, of the newly minted “Magnificent Seven,” only Tesla (-12%) failed to ignite. The other constituents – Meta (+223%), NVIDIA (+202%), Microsoft (+47%), Alphabet (+32%), Amazon (+30%), and Apple (+12%) – fueled the S&P 500® return. All remaining sectors lagged the index, and most outright declined. Defensive sectors (utilities -8%, real estate -7%, health care -5%, consumer staples -3%) were weakest, but energy (-2%) and financials (-1%) also finished in the red.

All three Funds underperformed the S&P 500® this year. The Funds’ single-digit exposure to the Magnificent Seven – stocks that now comprise nearly 30% of the S&P 500® – created a relative headwind of more than 500 basis points per Fund. Even more, suitable substitutes were scarce; the S&P 500®’s average stock return was negative, and smaller stocks generally fared even

 

2


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

worse. Within this unforgiving context, all three Funds nearly kept pace with the benchmark’s gain, and the Stock and Growth Funds even managed to deliver favorable stock selection. But such moral victories provide limited solace when the Funds fall short.

The Funds’ sector positioning shifted only slightly. The Funds continue to hold overweight positions in the health care and industrials sectors and underweight position in the energy, real estate, consumer staples, communication services, materials, and utilities sectors. Financials flipped to an underweight position in the Stock Fund, a function of both Fund performance and portfolio management; the other Funds were already underweight the sector. And information technology reverted to an overweight position in the Aggressive Growth Fund, while the Stock and Growth Funds maintained their underweight exposures. The Aggressive Growth Fund also features an overweight position in the consumer discretionary sector, whereas the Stock and Growth Funds continue to express a modest underweight view.

A more detailed discussion of the results of each PRIMECAP Odyssey Fund follows.

PRIMECAP Odyssey Stock Fund

For the fiscal year ended October 31, 2023, the Stock Fund’s total return of +8.13% trailed the S&P 500®’s total return of +10.14%. Relative to the S&P 500®, unfavorable sector allocation more than offset favorable stock selection.

The Stock Fund’s sector allocation created a sizable headwind relative to the index. The Fund’s only two overweight sectors, health care (27% of average Stock Fund assets versus 14% for the index) and industrials (20% versus 9%), both lagged the S&P 500®. Meanwhile, underweight positions in the two best-performing sectors, information technology (20% versus 26%) and communication services (3% versus 8%), compounded the problem. Providing a partial offset were underweight positions in three defensive sector laggards (consumer staples, real estate, and utilities).

Strong stock selection helped narrow the performance gap to the index. Eli Lilly (+55%), the Fund’s largest position, was the standout performer within health care, charting another robust return on increasing enthusiasm in Mounjaro/Zepbound, its diabetes/obesity drug. This more than compensated for weakness in Bristol-Myers (-31%) and Biogen (-16%). Industrials was also a bright spot, as FedEx (+53%) rebounded after a difficult stretch and satellite imaging company Maxar Technologies (+137%) was acquired by private equity firm Advent International. Southwest (-38%) was a partial offset as persistent operational challenges exacerbated what was a challenging environment for the airlines.

Stock selection elsewhere was less favorable. Lithium producer Albemarle (-54%) slumped within materials, and financial services firm Raymond James (-18%) faltered within financials. But selection results were mostly hampered by underweight positions in the mega-capitalization technology companies. NVIDIA (+202%) and Microsoft (+47%) soared on AI-centric optimism, more than offsetting strong performances by KLA (+50%), Intel (+33%), and Flex (+31%) within

 

3


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

information technology. Likewise, Meta (+223%) tripled following last year’s steep decline, while Alphabet (+32%) also bounced; the Fund’s underweight position in both companies weighed on results in communication services. And within consumer discretionary, no exposure to Amazon (+30%) also detracted from results, adding to weakness from the Fund’s sizable ownership of Whirlpool (-20%).

The top 10 holdings, which collectively represented 37.3% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Stock Fund
Top 10 Holdings as of 10/31/23
   Ending % of
Total Portfolio*
 

Eli Lilly & Co.

     10.1  

Astrazeneca PLC – ADR

     4.3  

AECOM

     3.4  

FedEx Corp.

     3.0  

Microsoft Corp.

     3.0  

Intel Corp.

     2.9  

Amgen, Inc.

     2.9  

KLA Corp.

     2.7  

Biogen, Inc.

     2.6  

Flex Ltd.

     2.4  

Total % of Portfolio

     37.3  

 

  *

The percentage is calculated by using the ending market value of the security divided by the ending market value of the total investments of the Fund.

PRIMECAP Odyssey Growth Fund

For the fiscal year ended October 31, 2023, the Growth Fund returned +9.30%, trailing the S&P 500®’s +10.14% total return and the Russell 1000 Growth Index’s total return of +18.95%. Unfavorable sector allocation more than offset favorable stock selection relative to the S&P 500®.

Sector allocation was less punitive than that of the Stock Fund given more exposure to communication services (5%) and information technology (23%) and less exposure to industrials (14%) and financials (8%), all of which benefited relative results. This was partially offset by the Growth Fund’s larger health care overweight position (33%).

Stock selection was favorable overall and nearly offset the allocation headwind. Health care was particularly strong – Eli Lilly again led the way, but Seagen (+67%) and ABIOMED (+51%), acquisition targets of Pfizer and Johnson & Johnson, respectively, also contributed.

 

4


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Smaller-capitalization health care stocks generally struggled, however, punctuated by significant weakness in FibroGen (-97%) and Insulet (-49%). Within information technology, Cisco (+18%) announced its purchase of enterprise software company Splunk (+77%), the Fund’s second-largest position, while greater exposure to electronics manufacturer Jabil (+92%) complemented the Fund’s significant stake in competitor Flex.

Selection in other sectors was generally unfavorable. Industrial parts marketplace Xometry (-76%) and a larger position in Raymond James (-18%) beset industrials and financials, respectively. And within consumer discretionary, Royal Caribbean (+59%) surged as cruise demand recovered but was unable to offset iRobot (-42%), whose delayed acquisition by Amazon faced ongoing hurdles.

The top 10 holdings, which collectively represented 33.6% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Growth Fund
Top 10 Holdings as of 10/31/23
   Ending % of
Total Portfolio*
 

Eli Lilly & Co.

     8.6  

Splunk, Inc.

     3.8  

Alphabet, Inc. – Class A & C

     3.2  

Seagen, Inc.

     3.2  

Biogen Inc.

     3.0  

AECOM

     2.7  

Microsoft Corp.

     2.3  

Amgen, Inc.

     2.3  

Raymond James Financial, Inc.

     2.3  

BioMarin Pharmaceutical, Inc.

     2.2  

Total % of Portfolio

     33.6  

 

  *

The percentage is calculated by using the ending market value of the security divided by the ending market value of the total investments of the Fund.

PRIMECAP Odyssey Aggressive Growth Fund

For the fiscal year ended October 31, 2023, the Aggressive Growth Fund’s total return of +9.01% trailed the S&P 500®’s total return of +10.14% but exceeded the Russell Midcap Growth Index’s total return of +3.35%. Modestly unfavorable stock selection was the primary driver of underperformance relative to the S&P 500®.

The Aggressive Growth Fund’s sector allocation was roughly neutral. Similar to the Growth Fund, greater exposure to communication services (6%) and information technology (26%) and less exposure to industrials (12%) and financials (5%) were the key differentiators.

 

5


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Stock selection was unfavorable, due in part to the Aggressive Growth Fund’s heightened exposure to smaller stocks, particularly within the health care sector. Eli Lilly, Seagen, and ABIOMED were again hugely beneficial, but their collective impact was nearly offset by several key underperformers, including Xencor (-38%), BioNTech (-32%), and larger positions in Biogen, FibroGen, and Insulet.

Beyond health care, selection delivered a mixed impact. Within information technology, semiconductor technology company Axcelis (+120%) and OLED developer Universal Display (+48%) were key contributors, adding to strength from Splunk, Jabil, KLA, and Flex; however, small-cap semiconductor holdings Wolfspeed (-57%) and MaxLinear (-51%) joined the Fund’s underweight positions in Microsoft and NVIDIA as prominent detractors. Within financials, selection results were notably improved, owing both to less bank exposure and a position in electronic trading platform Tradeweb (+64%). And within consumer discretionary, Xpeng (+119%), Sony (+23%), and more exposure to Royal Caribbean countered the Fund’s modest overweight position in Tesla (-12%).

The top 10 holdings, which collectively represented 33.6% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Aggressive Growth Fund
Top 10 Holdings as of 10/31/23
   Ending % of
Total Portfolio*
 

Eli Lilly & Co.

     5.6  

Seagen, Inc.

     5.0  

Splunk Inc.

     4.0  

Biogen, Inc.

     3.2  

Micron Technology, Inc.

     3.1  

Sony Group Corp. – ADR

     2.9  

Alphabet, Inc. – Class A & C

     2.6  

BioMarin Pharmaceutical, Inc.

     2.5  

Flex Ltd.

     2.4  

Tesla, Inc.

     2.3  

Total % of Portfolio

     33.6  

 

  *

The percentage is calculated by using the ending market value of the security divided by the ending market value of the total investments of the Fund.

Outlook

The equity market finished the year on a downward slide, approaching “correction” territory. The abrupt decline reflects a certain fragility in the current moment, as escalating yields threaten to

 

6


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

upend the Fed’s precarious balancing act. Even with its recent weakness, however, the S&P 500® Index’s valuation (17.3x forward P/E) sits above historical norms (15.6x 20-year average).

And this lofty valuation is artificially depressed by rosy estimates. Forward earnings incorporate most of 2024’s consensus 12% earnings growth, an expectation that defies widespread concerns about a slowing macroeconomic environment. Meanwhile, interest rates continue to climb; the 10-year Treasury yield finished the period just shy of 5%, a level not seen since 2007. Higher interest rates do not necessarily compel multiples lower, but a higher-for-longer rate regime undermines support for above-average equity valuations. These metrics warrant ongoing caution.

That said, this big picture assessment obscures important nuance. Market leadership this year belonged primarily to Big Tech, resulting in unprecedented index concentration for the so-called Magnificent Seven. Apple and Microsoft are each currently larger than five entire sectors, and the two titans combined exceed the size of every sector but their own (information technology). Market-level analysis is thus increasingly skewed by a handful of non-representative stocks.

For instance, trading at roughly 28x forward P/E in aggregate, the Seven exert upward pressure on index valuation. Absent these hefty, higher-multiple outliers, the rest of the index – the Mundane Four Hundred Ninety-Three perhaps – trades closer to 14x forward P/E, below the S&P 500® Equal Weighted Index’s longer-term average. Put differently, even if the capitalization-weighted index feels pricey, the average stock is not overly expensive – a few big-ticket items bias the basket.

To be clear, the Seven have earned their Magnificent moniker; they sport high-growth, wide-moat businesses with dominant positions in massive industries. The Funds meaningfully participated in some of these success stories and overlooked others; we maintain consequential positions in several (Microsoft, Alphabet, Tesla). But today, as reflected in our stark collective underweight position, we are skeptical. Skeptical of their sheer size and corresponding multiples, which may imply unsustainable expectations. Skeptical of their regulatory runway, with global regulators in heavy pursuit. And, perhaps most importantly, skeptical of their market supremacy; creative destruction is undefeated, no matter how entrenched the incumbent.

Fortunately, there are no shortage of companies that we would rather own. And while we recently highlighted one such company – Eli Lilly – in last year’s letter, the stock’s centrality to each Fund’s performance merits a refresh. Lilly logged yet another big gain this year, with incremental upside driven by the company’s almost open-ended obesity opportunity.

Not long ago, glucagon-like peptide-1 receptor agonists, or GLP-1s, were a relatively obscure drug class primarily used to treat diabetes. Novo Nordisk’s Victoza launched in 2010, followed by Lilly’s superior Trulicity product in 2014. These GLP-1 therapies and their next-generation derivatives lower blood sugar levels and thus help resolve a diabetic deficiency. But they also induce weight loss, at least in part by signaling satiety to the hypothalamus. First Novo and then Lilly thus pivoted to an obesity indication, with Novo’s Wegovy (a version of its Ozempic

 

7


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

product) achieving FDA approval for obesity in 2021 and, as something of a Trulicity echo, Lilly’s superior tirzepatide drug (brand name Mounjaro for diabetes and Zepbound for obesity) recently achieving the same milestone.

Today, GLP-1s are no longer just another drug class. Most drugs aim to transform a patient’s life; GLP-1s may transform the entire economy. Obesity is an intractable public health problem, a crisis with expansive ramifications. There are roughly 100 million obese adults in the United States alone; rationalizing their collective appetite should drive better health outcomes, which would have first-order consequences for adjacent medical fields. But such massive behavioral change would also bend the country’s food spend lower. And if, as some project, GLP-1-induced satiety softens impulses more broadly, this drug class could disrupt overall consumption in countless ways.

The Funds were invested in Lilly well before these developments unfolded. Our Lilly thesis had many elements, including stellar management, disproportionately high R&D spend supporting best-in-class research, and a uniquely potent pipeline. We were especially eager to underwrite two mammoth pipeline opportunities, donanemab in Alzheimer’s and this next-generation GLP-1 in diabetes/obesity. Both drugs have now cleared their respective clinical hurdles; donanemab awaits full FDA approval, while tirzepatide won approval for both diabetes (Mounjaro) and obesity (Zepbound). As a combination GLP-1/GIP agonist, tirzepatide is a novel formulation in the GLP-1 class; it delivers better efficacy and will be advantaged commercially. The stage is set for tirzepatide to become one of the most successful drugs in pharmaceutical history. Lilly’s earnings could quadruple or more by decade-end.

Lilly’s story continues to be a staggering success. Of note, the Funds hold dozens of other mundane, not-yet-magnificent stocks with enormous upside potential, whose fundamental trajectories today may resemble Lilly’s a decade ago. Of course, many will not fully realize this potential – such outcomes are exceedingly rare. But our portfolio is biased towards such differentiated opportunities.

The market is awash in powerful crosscurrents. This year’s once-inevitable recession never arrived, as the Fed has managed to trim inflation without stalling the economic engine. Worrisome indicators – for instance, an inverted yield curve and declining money supply – have thus far not been predictive, even if our qualitative assessment of the economy skews negative, and our outlook leans cautious. But we still own attractively-priced companies whose fundamentals, like those of Eli Lilly, can evolve much better than the market anticipates. And we still prefer such stocks to the Magnificent Seven.

Sincerely,

PRIMECAP Management Company

November 10, 2023

 

8


Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Past performance is not a guarantee of future results.

The funds invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. All funds may invest in foreign securities, which involves greater volatility and political, economic and currency risks and differences in accounting methods. Mutual fund investing involves risk, and loss of principal is possible. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

Please refer to the Schedule of Investments for details of fund holdings. Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security.

The S&P 500® is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market. The Russell 1000 Growth Index is an index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values (the Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe). The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. You cannot invest directly in an index.

Earnings per share (EPS) is calculated by taking the total earnings divided by the number of shares outstanding.

Price-to-earnings ratio is calculated by dividing the current share price of a stock by its earnings per share.

Earnings growth is not a prediction of a fund’s future performance.

The information provided herein represents the opinions of PRIMECAP Management Company and is not intended to be a forecast of future events, a guarantee of future results, or investment advice.

 

9


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Performance Graphs

PRIMECAP Odyssey Stock Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2013 and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of dividends and capital gains for the fund and dividends for the index.

 

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     Total Return
Period Ended October 31, 2023
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Stock Fund

     8.13%        8.85%        10.21%        9.74%  

S&P 500®*

     10.14%        11.01%        11.18%        9.29%  

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-729-2307.

 

  *

The S&P 500® is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market.

  ^

November 1, 2004

 

10


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Performance Graphs

PRIMECAP Odyssey Growth Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2013 and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of dividends and capital gains for the fund and dividends for the index.

 

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     Total Return
Period Ended October 31, 2023
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Growth Fund

     9.30%        7.63%        10.44%        10.33%  

S&P 500®*

     10.14%        11.01%        11.18%        9.29%  

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-729-2307.

 

  *

The S&P 500® is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market.

  ^

November 1, 2004

 

11


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Performance Graphs

PRIMECAP Odyssey Aggressive Growth Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2013 and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of dividends and capital gains for the fund and dividends for the index.

 

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     Total Return
Period Ended October 31, 2023
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Aggressive Growth Fund

     9.01%        5.29%        9.57%        11.34%  

S&P 500®*

     10.14%        11.01%        11.18%        9.29%  

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-729-2307.

 

  *

The S&P 500® is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market.

  ^

November 1, 2004

 

12


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Sector Breakdown

PRIMECAP Odyssey Funds

 

PRIMECAP Odyssey Stock Fund

 

Communication Services

     2.8%  

Consumer Discretionary

     8.8%  

Consumer Staples

     1.5%  

Energy

     3.1%  

Financials

     9.4%  

Health Care

     28.4%  

Industrials

     18.7%  

Information Technology

     22.0%  

Materials

     2.0%  

Short-Term Investments, net of Liabilities in Excess of Other Assets

     3.3%  

Total

     100.0%  

PRIMECAP Odyssey Growth Fund

 

Communication Services

     5.7%  

Consumer Discretionary

     9.1%  

Consumer Staples

     0.5%  

Energy

     3.5%  

Financials

     7.3%  

Health Care

     33.1%  

Industrials

     13.6%  

Information Technology

     25.3%  

Materials

     0.6%  

Rights (Health Care)

     0.0%  

Short-Term Investments and Other Assets

     1.3%  

Total

     100.0%  

The tables above list sector allocations as a percentage of each fund’s total net assets as of October 31, 2023. The management report may make reference to average allocations during the period. As a result, the sector allocations above may differ from those discussed in the management report.

 

13


Sector Breakdown

PRIMECAP Odyssey Funds

 

continued

 

PRIMECAP Odyssey Aggressive Growth Fund

 

Communication Services

     6.5%  

Consumer Discretionary

     12.3%  

Consumer Staples

     0.0%  

Energy

     1.8%  

Financials

     4.8%  

Health Care

     31.7%  

Industrials

     10.6%  

Information Technology

     29.2%  

Materials

     0.7%  

Real Estate

     0.1%  

Rights (Health Care)

     0.0%  

Warrants (Materials)

     0.0%  

Short-Term Investments, net of Liabilities in Excess of Other Assets

     2.3%  

Total

     100.0%  

The table above lists sector allocations as a percentage of the fund’s total net assets as of October 31, 2023. The management report may make reference to average allocations during the period. As a result, the sector allocations above may differ from those discussed in the management report.

 

14


LOGO

 

Schedule of Investments

PRIMECAP Odyssey Stock Fund

October 31, 2023

 

Shares            Value  
  COMMON STOCKS – 96.7%   
Communication Services – 2.8%       
  352,700     

Alphabet, Inc. – Class A (a)

   $ 43,763,016  
  367,050     

Alphabet, Inc. – Class C (a)

     45,991,365  
  138,600     

Comcast Corp. – Class A

     5,722,794  
  55,200     

Meta Platforms, Inc. – Class A (a)

     16,630,104  
  300,000     

Nintendo Co. Ltd. – JPY

     12,312,716  
  296,200     

Walt Disney Co. (The) (a)

     24,166,958  
     

 

 

 
        148,586,953  
     

 

 

 
Consumer Discretionary – 8.8%       
  423,200     

Bath & Body Works, Inc.

     12,547,880  
  150,800     

Brinker International, Inc. (a)

     5,115,136  
  25,700     

Burlington Stores, Inc. (a)

     3,110,471  
  129,400     

Capri Holdings Ltd. (a)

     6,622,692  
  502,700     

CarMax, Inc. (a)

     30,709,943  
  958,800     

Carnival Corp. (a)

     10,987,848  
  207,780     

eBay, Inc.

     8,151,209  
  217,800     

Leslie’s, Inc. (a)

     1,075,932  
  3,870,660     

Mattel, Inc. (a)

     73,852,193  
  78,400     

MGM Resorts International

     2,737,728  
  1,280,000     

Newell Brands, Inc.

     8,601,600  
  842,600     

Ross Stores, Inc.

     97,716,322  
  184,550     

Royal Caribbean Cruises Ltd. (a)

     15,636,922  
  1,270,989     

Sony Group Corp. – ADR

     105,555,636  
  213,600     

TJX Cos., Inc. (The)

     18,811,752  
  227,533     

Victoria’s Secret & Co. (a)

     4,068,290  
  508,339     

Whirlpool Corp.

     53,151,926  
     

 

 

 
        458,453,480  
     

 

 

 
Consumer Staples – 1.5%       
  169,100     

Altria Group, Inc.

     6,792,747  
  298,600     

BJ’s Wholesale Club Holdings, Inc. (a)

     20,340,632  
  189,800     

Dollar Tree, Inc. (a)

     21,084,882  
  85,600     

Philip Morris International, Inc.

     7,632,096  
  239,500     

Sysco Corp.

     15,924,355  
  149,000     

Tyson Foods, Inc. – Class A

     6,906,150  
     

 

 

 
        78,680,862  
     

 

 

 
Energy – 3.1%       
  166,500     

Cameco Corp.

     6,811,515  
  207,300     

EOG Resources, Inc.

     26,171,625  
  339,140     

Hess Corp.

     48,971,816  

 

The accompanying notes are an integral part of these financial statements.

 

15


Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

October 31, 2023 – continued

 

Shares            Value  
Energy (continued)       
  171,000     

Pioneer Natural Resources Co.

   $ 40,869,000  
  1,310,000     

Southwestern Energy Co. (a)

     9,340,300  
  233,600     

TechnipFMC PLC

     5,027,072  
  1,119,600     

Transocean Ltd. (a)

     7,411,752  
  152,600     

Valero Energy Corp.

     19,380,200  
     

 

 

 
        163,983,280  
     

 

 

 
Financials – 9.4%       
  771,200     

Bank of America Corp.

     20,313,408  
  90,000     

Bank of New York Mellon Corp. (The)

     3,825,000  
  1,105,850     

Citigroup, Inc.

     43,670,017  
  228,200     

CME Group, Inc. – Class A

     48,711,572  
  387,600     

Discover Financial Services

     31,814,208  
  9,790     

Evercore, Inc. – Class A

     1,274,462  
  70,900     

Fidelity National Information Services, Inc.

     3,481,899  
  385,400     

JPMorgan Chase & Co.

     53,593,724  
  240,000     

KeyCorp

     2,452,800  
  590,700     

Northern Trust Corp.

     38,933,037  
  97,050     

PayPal Holdings, Inc. (a)

     5,027,190  
  71,640     

Progressive Corp. (The)

     11,325,568  
  848,575     

Raymond James Financial, Inc.

     80,987,998  
  125,100     

Visa, Inc. – Class A

     29,411,010  
  2,887,808     

Wells Fargo & Co.

     114,848,124  
  21,440     

WEX, Inc. (a)

     3,569,331  
     

 

 

 
        493,239,348  
     

 

 

 
Health Care – 28.4%       
  68,000     

Abbott Laboratories

     6,429,400  
  379,300     

Agilent Technologies, Inc.

     39,208,241  
  46,400     

Alcon, Inc.

     3,309,248  
  586,900     

Amgen, Inc.

     150,070,330  
  3,562,100     

AstraZeneca PLC – ADR

     225,231,583  
  582,280     

Biogen, Inc. (a)

     138,314,791  
  349,600     

Boston Scientific Corp. (a)

     17,896,024  
  1,506,300     

Bristol-Myers Squibb Co.

     77,619,639  
  197,030     

CVS Health Corp.

     13,597,040  
  6,700     

Danaher Corp.

     1,286,534  
  3,369,341     

Elanco Animal Health, Inc. (a)

     29,683,894  
  953,023     

Eli Lilly & Co.

     527,908,030  
  719,880     

GSK PLC – ADR

     25,699,716  
  391,890     

LivaNova PLC (a)

     19,222,205  

 

The accompanying notes are an integral part of these financial statements.

 

16


Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

October 31, 2023 – continued

 

Shares            Value  
Health Care (continued)       
  31,700     

Medtronic PLC

   $ 2,236,752  
  69,100     

Merck & Co., Inc.

     7,096,570  
  528,550     

Novartis AG – ADR

     49,461,709  
  183,000     

Revvity, Inc.

     15,161,550  
  76,411     

Roche Holding AG – CHF

     19,643,503  
  29,650     

Sandoz Group AG – CHF (a)

     770,871  
  86,450     

Sanofi – ADR

     3,911,863  
  127,000     

Siemens Healthineers AG – EUR

     6,224,423  
  20,800     

Stryker Corp.

     5,620,576  
  135,400     

Thermo Fisher Scientific, Inc.

     60,221,858  
  15,480     

Waters Corp. (a)

     3,692,444  
  327,000     

Zimmer Biomet Holdings, Inc.

     34,142,070  
  3,500     

ZimVie, Inc. (a)

     24,710  
     

 

 

 
        1,483,685,574  
     

 

 

 
Industrials – 18.7%       
  2,309,600     

AECOM

     176,799,880  
  298,869     

Airbus SE – EUR

     39,933,951  
  54,050     

Alaska Air Group, Inc. (a)

     1,709,601  
  2,269,750     

American Airlines Group, Inc. (a)

     25,307,712  
  34,900     

AMETEK, Inc.

     4,912,873  
  332,062     

Carrier Global Corp.

     15,826,075  
  108,023     

Caterpillar, Inc.

     24,418,599  
  280,700     

CSX Corp.

     8,378,895  
  229,720     

Curtiss-Wright Corp.

     45,670,633  
  5,200     

Deere & Co.

     1,899,872  
  938,450     

Delta Air Lines, Inc.

     29,326,562  
  654,585     

FedEx Corp.

     157,165,859  
  72,200     

General Dynamics Corp.

     17,422,582  
  68,200     

GXO Logistics, Inc. (a)

     3,444,782  
  481,030     

Jacobs Solutions, Inc.

     64,121,299  
  276,000     

JELD-WEN Holding, Inc. (a)

     3,127,080  
  326,400     

Kirby Corp. (a)

     24,382,080  
  36,000     

Knight-Swift Transportation Holdings, Inc.

     1,760,040  
  23,300     

L3Harris Technologies, Inc.

     4,180,253  
  164,200     

Matson, Inc.

     14,293,610  
  84,400     

Moog, Inc. – Class A

     9,794,620  
  75,800     

Norfolk Southern Corp.

     14,461,882  
  31,581     

Otis Worldwide Corp.

     2,438,369  
  17,390     

Rockwell Automation, Inc.

     4,570,266  

 

The accompanying notes are an integral part of these financial statements.

 

17


Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

October 31, 2023 – continued

 

Shares            Value  
Industrials (continued)       
  11,262     

RTX Corp.

   $ 916,614  
  314,100     

RXO, Inc. (a)

     5,499,891  
  14,700     

Saia, Inc. (a)

     5,269,803  
  911,112     

Siemens AG – EUR

     120,467,422  
  2,377,950     

Southwest Airlines Co.

     52,861,829  
  30,400     

Union Pacific Corp.

     6,311,344  
  1,318,040     

United Airlines Holdings, Inc. (a)

     46,144,580  
  198,600     

United Parcel Service, Inc. – Class B

     28,052,250  
  241,000     

XPO, Inc. (a)

     18,270,210  
     

 

 

 
        979,141,318  
     

 

 

 
Information Technology – 22.0%       
  108,650     

Adobe, Inc. (a)

     57,808,319  
  183,710     

Analog Devices, Inc.

     28,903,094  
  509,450     

Applied Materials, Inc.

     67,425,708  
  416,500     

Cisco Systems, Inc.

     21,712,145  
  263,698     

Corning, Inc.

     7,056,558  
  4,994,549     

Flex Ltd. (a)

     128,459,800  
  3,771,600     

Hewlett Packard Enterprise Co.

     58,007,208  
  1,172,000     

HP, Inc.

     30,858,760  
  4,124,010     

Intel Corp.

     150,526,365  
  45,000     

Jabil, Inc.

     5,526,000  
  129,450     

Keysight Technologies, Inc. (a)

     15,799,373  
  307,230     

KLA Corp.

     144,305,931  
  4,843,930     

L.M. Ericsson Telephone Co. – ADR

     21,603,928  
  462,670     

Microsoft Corp.

     156,433,354  
  819,630     

NetApp, Inc.

     59,652,671  
  12,800     

NVIDIA Corp.

     5,219,840  
  809,700     

Oracle Corp.

     83,722,980  
  313,247     

QUALCOMM, Inc.

     34,140,791  
  57,800     

Seagate Technology Holdings PLC

     3,944,850  
  141,300     

Teradyne, Inc.

     11,766,051  
  419,020     

Texas Instruments, Inc.

     59,505,030  
     

 

 

 
        1,152,378,756  
     

 

 

 
Materials – 2.0%       
  218,400     

Albemarle Corp.

     27,688,752  
  149,200     

Corteva, Inc.

     7,182,488  
  137,600     

Dow, Inc.

     6,651,584  
  206,884     

DuPont de Nemours, Inc.

     15,077,706  
  508,900     

Freeport-McMoRan, Inc.

     17,190,642  

 

The accompanying notes are an integral part of these financial statements.

 

18


Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

October 31, 2023 – continued

 

Shares            Value  
Materials (continued)       
  4,609,278     

Glencore PLC – GBP

   $ 24,378,629  
  375,200     

Tronox Holdings PLC

     4,010,888  
     

 

 

 
        102,180,689  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $2,704,042,761)

   $ 5,060,330,260  
  

 

 

 
  SHORT-TERM INVESTMENTS – 3.4%   
  177,435,746     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 5.27% (b)

   $ 177,435,746  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $177,435,746)

     177,435,746  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $2,881,478,507) – 100.1%

     5,237,766,006  
 

Liabilities in Excess of Other Assets – (0.1)%

     (6,435,263
  

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 5,231,330,743  
     

 

 

 

 

ADR

American Depository Receipt

CHF

Swiss Francs

EUR

Euros

GBP

British Pound Sterling

JPY

Japanese Yen

(a)

Non-Income Producing

(b)

Rate quoted is seven-day yield at period end.

The Global Industry Classification Standard (GICS ®) was developed by and is the exclusive property of MSCI Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by the fund’s administrator.

 

The accompanying notes are an integral part of these financial statements.

 

19


LOGO

 

Schedule of Investments

PRIMECAP Odyssey Growth Fund

October 31, 2023

 

Shares            Value  
  COMMON STOCKS – 98.7%   
Communication Services – 5.7%       
  894,420     

Alphabet, Inc. – Class A (a)

   $ 110,979,634  
  709,620     

Alphabet, Inc. – Class C (a)

     88,915,386  
  585,800     

Baidu, Inc. – ADR (a)

     61,509,000  
  89,000     

Electronic Arts, Inc.

     11,017,310  
  326,600     

IMAX Corp. (a)

     5,947,386  
  60,660     

Live Nation Entertainment, Inc. (a)

     4,854,013  
  31,400     

Meta Platforms, Inc. – Class A (a)

     9,459,878  
  14,500     

Netflix, Inc. (a)

     5,969,505  
  550,000     

Nintendo Co. Ltd. – JPY

     22,573,313  
  85,900     

Shutterstock, Inc.

     3,494,412  
  142,000     

Trade Desk, Inc. (The) – Class A (a)

     10,076,320  
  301,200     

Walt Disney Co. (The) (a)

     24,574,908  
     

 

 

 
        359,371,065  
     

 

 

 
Consumer Discretionary – 9.1%       
  1,157,900     

Alibaba Group Holding Ltd. – ADR (a)

     95,573,066  
  499,498     

Bath & Body Works, Inc.

     14,810,116  
  282,100     

Bowlero Corp. – Class A (a)

     2,846,389  
  80,600     

Burlington Stores, Inc. (a)

     9,755,018  
  442,800     

Capri Holdings Ltd. (a)

     22,662,504  
  677,350     

CarMax, Inc. (a)

     41,379,311  
  193,400     

Carnival Corp. (a)

     2,216,364  
  15,400     

DoorDash, Inc. – Class A (a)

     1,154,230  
  120,820     

eBay, Inc.

     4,739,769  
  2,063,624     

Entain PLC – GBP

     23,336,604  
  38,000     

Etsy, Inc. (a)

     2,367,400  
  76,143     

Flutter Entertainment PLC – GBP (a)

     11,943,328  
  1,019,260     

iRobot Corp. (a)

     33,564,232  
  247,900     

Leslie’s, Inc. (a)

     1,224,626  
  32,000     

Marriott International, Inc. – Class A

     6,033,920  
  2,654,600     

Mattel, Inc. (a)

     50,649,768  
  9,300     

McDonald’s Corp.

     2,438,181  
  85,900     

MGM Resorts International

     2,999,628  
  529,900     

Norwegian Cruise Line Holdings Ltd. (a)

     7,206,640  
  75,700     

Ollie’s Bargain Outlet Holdings, Inc. (a)

     5,847,068  
  11,000     

Restaurant Brands International, Inc.

     739,200  
  112,500     

Ross Stores, Inc.

     13,046,625  
  523,971     

Royal Caribbean Cruises Ltd. (a)

     44,396,063  
  795,837     

Sony Group Corp. – ADR

     66,094,263  

 

The accompanying notes are an integral part of these financial statements.

 

20


Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Consumer Discretionary (continued)       
  423,930     

Tesla, Inc. (a)

   $ 85,142,101  
  180,200     

TJX Cos., Inc. (The)

     15,870,214  
  265,099     

Victoria’s Secret & Co. (a)

     4,739,970  
     

 

 

 
        572,776,598  
     

 

 

 
Consumer Staples – 0.5%       
  129,100     

Altria Group, Inc.

     5,185,947  
  134,000     

BJ’s Wholesale Club Holdings, Inc. (a)

     9,128,080  
  131,500     

Dollar Tree, Inc. (a)

     14,608,335  
     

 

 

 
        28,922,362  
     

 

 

 
Energy – 3.5%       
  550,000     

Coterra Energy, Inc.

     15,125,000  
  99,200     

EOG Resources, Inc.

     12,524,000  
  404,021     

Hess Corp.

     58,340,632  
  348,860     

Pioneer Natural Resources Co.

     83,377,540  
  48,500     

Schlumberger Ltd.

     2,699,510  
  1,570,000     

Southwestern Energy Co. (a)

     11,194,100  
  27,500     

TechnipFMC PLC

     591,800  
  5,378,304     

Transocean Ltd. (a)

     35,604,373  
     

 

 

 
        219,456,955  
     

 

 

 
Financials – 7.3%       
  230,900     

Bank of America Corp.

     6,081,906  
  320,500     

Citigroup, Inc.

     12,656,545  
  119,100     

CME Group, Inc. – Class A

     25,423,086  
  98,010     

Discover Financial Services

     8,044,661  
  60,960     

Evercore, Inc. – Class A

     7,935,773  
  132,700     

JPMorgan Chase & Co.

     18,453,262  
  140,100     

MarketAxess Holdings, Inc.

     29,946,375  
  5,400     

Mastercard, Inc. – Class A

     2,032,290  
  384,100     

Morgan Stanley

     27,201,962  
  551,710     

Northern Trust Corp.

     36,363,206  
  25,600     

PayPal Holdings, Inc. (a)

     1,326,080  
  1,480,655     

Raymond James Financial, Inc.

     141,313,713  
  164,700     

Tradeweb Markets, Inc. – Class A

     14,824,647  
  206,200     

Visa, Inc. – Class A

     48,477,620  
  1,964,400     

Wells Fargo & Co.

     78,124,188  
  8,150     

WEX, Inc. (a)

     1,356,812  
     

 

 

 
        459,562,126  
     

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

21


Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Health Care – 33.1%       
  108,200     

Agilent Technologies, Inc.

   $ 11,184,634  
  62,800     

Alcon, Inc.

     4,478,896  
  351,500     

Alkermes PLC (a)

     8,502,785  
  569,400     

Amgen, Inc.

     145,595,580  
  1,991,480     

AstraZeneca PLC – ADR

     125,921,280  
  679,827     

BeiGene Ltd. – ADR (a)

     126,638,174  
  796,150     

Biogen, Inc. (a)

     189,117,471  
  1,707,521     

BioMarin Pharmaceutical, Inc. (a)

     139,077,585  
  418,700     

BioNTech SE – ADR (a)

     39,165,198  
  1,071,800     

Boston Scientific Corp. (a)

     54,865,442  
  216,670     

Bridgebio Pharma, Inc. (a)

     5,642,087  
  1,021,550     

Bristol-Myers Squibb Co.

     52,640,471  
  196,000     

CVS Health Corp.

     13,525,960  
  35,000     

Edwards Lifesciences Corp. (a)

     2,230,200  
  3,711,941     

Elanco Animal Health, Inc. (a)

     32,702,200  
  968,978     

Eli Lilly & Co.

     536,745,984  
  97,766     

Enovis Corp. (a)

     4,487,459  
  2,446,110     

FibroGen, Inc. (a)

     1,323,346  
  234,480     

GSK PLC – ADR

     8,370,936  
  53,800     

Guardant Health, Inc. (a)

     1,392,344  
  2,000     

Humana, Inc.

     1,047,380  
  26,500     

Illumina, Inc. (a)

     2,899,630  
  289,677     

Insulet Corp. (a)

     38,402,480  
  21,560     

IQVIA Holdings, Inc. (a)

     3,898,695  
  972,470     

LivaNova PLC (a)

     47,699,654  
  22,100     

Merck & Co., Inc.

     2,269,670  
  2,122,556     

Nektar Therapeutics (a)

     995,479  
  72,700     

Neurocrine Biosciences, Inc. (a)

     8,065,338  
  486,096     

Novartis AG – ADR

     45,488,864  
  26,540     

Omnicell, Inc. (a)

     943,232  
  117,700     

OraSure Technologies, Inc. (a)

     607,332  
  149,250     

QIAGEN N.V. – EUR (a)

     5,546,202  
  58,100     

Revvity, Inc.

     4,813,585  
  2,554,602     

Rhythm Pharmaceuticals, Inc. (a)

     59,036,852  
  107,777     

Roche Holding AG – CHF

     27,706,977  
  20,728     

Sandoz Group AG – CHF (a)

     538,913  
  935,250     

Seagen, Inc. (a)

     199,030,552  
  78,300     

Siemens Healthineers AG – EUR

     3,837,577  
  10,800     

Stryker Corp.

     2,918,376  

 

The accompanying notes are an integral part of these financial statements.

 

22


Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Health Care (continued)       
  96,800     

Thermo Fisher Scientific, Inc.

   $ 43,053,736  
  4,000     

Waters Corp. (a)

     954,120  
  2,218,170     

Xencor, Inc. (a)

     38,485,249  
  309,420     

Zimmer Biomet Holdings, Inc.

     32,306,542  
     

 

 

 
        2,074,154,467  
     

 

 

 
Industrials – 13.6%       
  2,254,952     

AECOM

     172,616,576  
  223,095     

Airbus SE – EUR

     29,809,263  
  2,267,401     

American Airlines Group, Inc. (a)

     25,281,521  
  60,000     

AMETEK, Inc.

     8,446,200  
  85,000     

Carrier Global Corp.

     4,051,100  
  35,000     

CSX Corp.

     1,044,750  
  183,200     

Curtiss-Wright Corp.

     36,421,992  
  1,300,700     

Delta Air Lines, Inc.

     40,646,875  
  87,265     

ESAB Corp.

     5,523,874  
  196,700     

FedEx Corp.

     47,227,670  
  71,100     

General Dynamics Corp.

     17,157,141  
  46,800     

IDEX Corp.

     8,957,988  
  54,700     

J.B. Hunt Transport Services, Inc.

     9,401,289  
  878,184     

Jacobs Solutions, Inc.

     117,061,927  
  539,500     

JetBlue Airways Corp. (a)

     2,028,520  
  341,300     

Lyft, Inc. – Class A (a)

     3,129,721  
  132,000     

Nextracker, Inc. – Class A (a)

     4,588,320  
  8,300     

Old Dominion Freight Line, Inc.

     3,126,278  
  18,300     

Saia, Inc. (a)

     6,560,367  
  780,601     

Siemens AG – EUR

     103,211,230  
  2,244,600     

Southwest Airlines Co.

     49,897,458  
  294,570     

Textron, Inc.

     22,387,320  
  14,100     

TransDigm Group, Inc.

     11,676,069  
  107,900     

Uber Technologies, Inc. (a)

     4,669,912  
  48,000     

Union Pacific Corp.

     9,965,280  
  1,667,800     

United Airlines Holdings, Inc. (a)

     58,389,678  
  3,651,178     

Xometry, Inc. – Class A (a) (b)

     53,124,640  
     

 

 

 
        856,402,959  
     

 

 

 
Information Technology – 25.3%       
  152,800     

Adobe, Inc. (a)

     81,298,768  
  271,363     

Altair Engineering, Inc. – Class A (a)

     16,857,070  
  176,740     

Analog Devices, Inc.

     27,806,504  
  252,700     

Applied Materials, Inc.

     33,444,845  

 

The accompanying notes are an integral part of these financial statements.

 

23


Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Information Technology (continued)       
  115,900     

Arm Holdings PLC – ADR (a)

   $ 5,712,711  
  42,400     

ASML Holding N.V. – ADR

     25,389,544  
  3,000     

Autodesk, Inc. (a)

     592,890  
  4,926,243     

BlackBerry Ltd. (a)

     17,635,950  
  423,900     

Cisco Systems, Inc.

     22,097,907  
  45,810     

Dell Technologies, Inc. – Class C

     3,065,147  
  287,913     

Descartes Systems Group, Inc. (The) (a)

     20,790,198  
  4,951,399     

Flex Ltd. (a)

     127,349,982  
  577,618     

FormFactor, Inc. (a)

     19,569,698  
  1,000     

Fortinet, Inc. (a)

     57,170  
  1,625,500     

Hewlett Packard Enterprise Co.

     25,000,190  
  408,936     

HP, Inc.

     10,767,285  
  2,742,500     

Intel Corp.

     100,101,250  
  11,800     

Intuit, Inc.

     5,840,410  
  506,700     

Jabil, Inc.

     62,222,760  
  17,530     

Keysight Technologies, Inc. (a)

     2,139,536  
  239,224     

KLA Corp.

     112,363,513  
  1,469,600     

L.M. Ericsson Telephone Co. – ADR

     6,554,416  
  134,000     

Marvell Technology, Inc.

     6,327,480  
  398,670     

MaxLinear, Inc. (a)

     6,059,784  
  1,916,000     

Micron Technology, Inc.

     128,122,920  
  431,700     

Microsoft Corp.

     145,962,087  
  646,611     

NetApp, Inc.

     47,060,349  
  503,100     

Nutanix, Inc. – Class A (a)

     18,207,189  
  70,000     

NVIDIA Corp.

     28,546,000  
  10,000     

Okta, Inc. – Class A (a)

     674,100  
  391,100     

Oracle Corp.

     40,439,740  
  50,000     

OSI Systems, Inc. (a)

     5,213,500  
  33,060     

Palo Alto Networks, Inc. (a)

     8,034,241  
  264,950     

QUALCOMM, Inc.

     28,876,900  
  46,600     

Salesforce, Inc. (a)

     9,358,678  
  1,600,855     

Splunk, Inc. (a)

     235,581,822  
  1,911,799     

Stratasys Ltd. (a)

     19,442,996  
  136,600     

Teradyne, Inc.

     11,374,682  
  383,095     

Texas Instruments, Inc.

     54,403,321  
  351,950     

Trimble, Inc. (a)

     16,587,403  
  246,166     

Universal Display Corp.

     34,261,384  
  21,760     

VMware, Inc. – Class A (a)

     3,169,344  
  26,000     

Western Digital Corp. (a)

     1,043,900  
  334,500     

Wolfspeed, Inc. (a)

     11,319,480  
     

 

 

 
        1,586,725,044  
     

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

24


Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Materials – 0.6%       
  205,050     

Albemarle Corp.

   $ 25,996,239  
  600,000     

Ivanhoe Mines Ltd. – Class A – CAD (a)

     4,421,850  
  10,900     

Linde PLC

     4,165,544  
     

 

 

 
        34,583,633  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $3,432,206,690)

   $ 6,191,955,209  
  

 

 

 
  RIGHTS – 0.0%   
Health Care – 0.0%       
  387,250     

ABIOMED, Inc. – CVR (Issue Date 12/23/22) (a) (c) (d)

     394,995  
  4,207,543     

Epizyme, Inc. – CVR (Issue Date 8/15/22) (a) (c) (d)

     84,151  
     

 

 

 
        479,146  
     

 

 

 
 

TOTAL RIGHTS
(Cost $0)

     479,146  
     

 

 

 
  SHORT-TERM INVESTMENTS – 1.2%   
  75,774,345     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 5.27% (e)

   $ 75,774,345  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $75,774,345)

     75,774,345  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $3,507,981,035) – 99.9%

     6,268,208,700  
 

Other Assets in Excess of Liabilities – 0.1%

     6,704,919  
  

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 6,274,913,619  
     

 

 

 

 

ADR

American Depository Receipt

CAD

Canadian Dollars

CHF

Swiss Francs

CVR

Contingent Value Rights

EUR

Euros

GBP

British Pound Sterling

JPY

Japanese Yen

(a)

Non-Income Producing

(b)

Considered an affiliated company of the fund as the fund owns 5% or more of the outstanding voting securities of such company. (Note 7)

(c)

Illiquid security

(d)

Fair-valued security (Note 4)

(e)

Rate quoted is seven-day yield at period end.

The Global Industry Classification Standard (GICS ®) was developed by and is the exclusive property of MSCI Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by the fund’s administrator.

 

The accompanying notes are an integral part of these financial statements.

 

25


LOGO

 

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

October 31, 2023

 

Shares            Value  
  COMMON STOCKS – 97.7%   
Communication Services – 6.5%       
  720,050     

Alphabet, Inc. – Class A (a)

   $ 89,343,804  
  601,340     

Alphabet, Inc. – Class C (a)

     75,347,902  
  924,900     

Baidu, Inc. – ADR (a)

     97,114,500  
  96,000     

Electronic Arts, Inc.

     11,883,840  
  631,000     

IMAX Corp. (a)

     11,490,510  
  70,920     

Live Nation Entertainment, Inc. (a)

     5,675,018  
  520,528     

Madison Square Garden Entertainment Corp. – Class A (a)

     15,865,694  
  30,300     

Meta Platforms, Inc. – Class A (a)

     9,128,481  
  16,900     

Netflix, Inc. (a)

     6,957,561  
  1,613,100     

Pinterest, Inc. – Class A (a)

     48,199,428  
  102,000     

Snap, Inc. – Class A (a)

     1,021,020  
  570,528     

Sphere Entertainment Corp. – Class A (a)

     18,776,077  
  93,650     

T-Mobile US, Inc. (a)

     13,472,489  
  5,478,000     

WildBrain Ltd. – CAD (a)

     5,372,331  
  192,469     

ZoomInfo Technologies, Inc. (a)

     2,494,398  
     

 

 

 
        412,143,053  
     

 

 

 
Consumer Discretionary – 12.3%       
  1,159,700     

Alibaba Group Holding Ltd. – ADR (a)

     95,721,638  
  161,500     

Amazon.com, Inc. (a)

     21,494,035  
  65,830     

Boot Barn Holdings, Inc. (a)

     4,575,185  
  91,400     

Burlington Stores, Inc. (a)

     11,062,142  
  216,837     

Capri Holdings Ltd. (a)

     11,097,718  
  766,300     

CarMax, Inc. (a)

     46,813,267  
  8,000     

Darden Restaurants, Inc.

     1,164,240  
  1,100     

Deckers Outdoor Corp. (a)

     656,766  
  1,750     

Duolingo, Inc. (a)

     255,587  
  235,120     

eBay, Inc.

     9,223,758  
  3,966,609     

Entain PLC – GBP

     44,856,613  
  54,200     

Etsy, Inc. (a)

     3,376,660  
  3,000     

Five Below, Inc. (a)

     521,940  
  22,700     

Flutter Entertainment PLC – GBP (a)

     3,560,584  
  99,000     

Gildan Activewear, Inc.

     2,812,590  
  846,100     

GrowGeneration Corp. (a)

     1,726,044  
  741,995     

iRobot Corp. (a)

     24,433,895  
  329,700     

Mobileye Global, Inc. – Class A (a)

     11,760,399  
  1,039,565     

Norwegian Cruise Line Holdings Ltd. (a)

     14,138,084  
  146,480     

Ollie’s Bargain Outlet Holdings, Inc. (a)

     11,314,115  

 

The accompanying notes are an integral part of these financial statements.

 

26


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Consumer Discretionary (continued)       
  81,200     

Restaurant Brands International, Inc.

   $ 5,456,640  
  58,660     

Rivian Automotive, Inc. – Class A (a)

     951,465  
  781,876     

Royal Caribbean Cruises Ltd. (a)

     66,248,353  
  2,262,350     

Sony Group Corp. – ADR

     187,888,168  
  721,790     

Tesla, Inc. (a)

     144,964,304  
  24,160     

Ulta Beauty, Inc. (a)

     9,212,450  
  108,400     

Victoria’s Secret & Co. (a)

     1,938,192  
  2,913,350     

XPeng, Inc. – ADR (a)

     42,185,308  
     

 

 

 
        779,410,140  
     

 

 

 
Consumer Staples – 0.0%       
  7,000     

Dollar General Corp.

     833,280  
     

 

 

 
Energy – 1.8%       
  544,350     

Coterra Energy, Inc.

     14,969,625  
  131,700     

EOG Resources, Inc.

     16,627,125  
  960,300     

New Fortress Energy, Inc.

     29,097,090  
  8,197,982     

Transocean Ltd. (a)

     54,270,641  
     

 

 

 
        114,964,481  
     

 

 

 
Financials – 4.8%       
  192,700     

AssetMark Financial Holdings, Inc. (a)

     4,607,457  
  164,771     

CME Group, Inc. – Class A

     35,172,017  
  233,803     

Discover Financial Services

     19,190,550  
  17,000     

Flywire Corp. (a)

     457,130  
  116,700     

Galaxy Digital Holdings Ltd. – CAD (a)

     530,168  
  31,500     

LPL Financial Holdings, Inc.

     7,072,380  
  519,720     

MarketAxess Holdings, Inc.

     111,090,150  
  355,000     

Marqeta, Inc. – Class A (a)

     1,835,350  
  583,112     

Morgan Stanley

     41,295,992  
  476,600     

NMI Holdings, Inc. – Class A (a)

     13,035,010  
  108,110     

Progressive Corp. (The)

     17,091,110  
  504,000     

Tradeweb Markets, Inc. – Class A

     45,365,040  
  52,250     

WEX, Inc. (a)

     8,698,580  
     

 

 

 
        305,440,934  
     

 

 

 
Health Care – 31.7%       
  31,400     

10x Genomics, Inc. – Class A (a)

     1,107,792  
  140,000     

Accuray, Inc. (a)

     369,600  
  104,230     

Adaptive Biotechnologies Corp. (a)

     462,781  
  1,057,200     

Alkermes PLC (a)

     25,573,668  
  1,814,271     

Allogene Therapeutics, Inc. (a)

     5,116,244  

 

The accompanying notes are an integral part of these financial statements.

 

27


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Health Care (continued)       
  1,094,200     

Amicus Therapeutics, Inc. (a)

   $ 12,003,374  
  271,500     

Amylyx Pharmaceuticals, Inc. (a)

     4,428,165  
  706,387     

BeiGene Ltd. – ADR (a)

     131,585,770  
  871,539     

Biogen, Inc. (a)

     207,025,374  
  1,941,745     

BioMarin Pharmaceutical, Inc. (a)

     158,155,130  
  1,362,522     

BioNTech SE – ADR (a)

     127,450,308  
  493,800     

Boston Scientific Corp. (a)

     25,277,622  
  436,630     

Bridgebio Pharma, Inc. (a)

     11,369,845  
  8,613,000     

Cerus Corp. (a)

     12,058,200  
  13,950     

Charles River Laboratories International, Inc. (a)

     2,348,622  
  630,892     

Elanco Animal Health, Inc. (a)

     5,558,159  
  645,294     

Eli Lilly & Co.

     357,447,705  
  437,600     

Exact Sciences Corp. (a)

     26,951,784  
  4,240,951     

FibroGen, Inc. (a)

     2,294,355  
  571,830     

Galapagos NV – ADR (a)

     19,121,995  
  549,320     

Glaukos Corp. (a)

     37,463,624  
  45,450     

Globus Medical, Inc. – Class A (a)

     2,077,520  
  22,490     

Guardant Health, Inc. (a)

     582,041  
  1,113,806     

Health Catalyst, Inc. (a)

     8,342,407  
  11,310     

Illumina, Inc. (a)

     1,237,540  
  183,200     

ImmunoGen, Inc. (a)

     2,722,352  
  358,816     

Insulet Corp. (a)

     47,568,237  
  1,049,700     

LivaNova PLC (a)

     51,487,785  
  10,000     

Mereo Biopharma Group PLC – ADR (a)

     20,050  
  4,233,380     

Nektar Therapeutics (a)

     1,985,455  
  594,920     

OraSure Technologies, Inc. (a)

     3,069,787  
  19,220     

Penumbra, Inc. (a)

     3,673,903  
  1,196,216     

PolyPeptide Group AG – CHF (a)

     22,381,791  
  3,746,971     

Pulmonx Corp. (a) (b)

     32,935,875  
  191,800     

QIAGEN N.V. – EUR (a)

     7,127,381  
  22,386     

Repligen Corp. (a)

     3,012,260  
  5,364,910     

Rhythm Pharmaceuticals, Inc. (a) (b)

     123,983,070  
  118,800     

Roche Holding AG – CHF

     30,540,736  
  75,700     

Sage Therapeutics, Inc. (a)

     1,417,861  
  1,488,013     

Seagen, Inc. (a)

     316,664,047  
  220,100     

Shockwave Medical, Inc. (a)

     45,397,826  
  2,195,369     

Standard BioTools, Inc. (a)

     4,368,784  
  3,295,770     

Wave Life Sciences Ltd. (a)

     17,731,243  
  5,671,887     

Xencor, Inc. (a) (b)

     98,407,239  
  736,880     

Zentalis Pharmaceuticals, Inc. (a)

     12,055,357  
     

 

 

 
        2,011,960,664  
     

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

28


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Industrials – 10.6%       
  1,750,600     

AECOM

   $ 134,008,430  
  390,800     

Alaska Air Group, Inc. (a)

     12,361,004  
  25,100     

Allegiant Travel Co.

     1,672,162  
  4,129,000     

American Airlines Group, Inc. (a)

     46,038,350  
  701,600     

Array Technologies, Inc. (a)

     12,158,728  
  112,500     

Axon Enterprise, Inc. (a)

     23,005,125  
  49,600     

Bloom Energy Corp. – Class A (a)

     515,840  
  41,000     

Controladora Vuela Compania de Aviacion, S.A.B. de C.V. – ADR (a)

     234,110  
  197,580     

Curtiss-Wright Corp.

     39,280,880  
  2,179,697     

Delta Air Lines, Inc.

     68,115,531  
  31,400     

FedEx Corp.

     7,539,140  
  70,600     

Frontier Group Holdings, Inc. (a)

     239,334  
  324,500     

GFL Environmental, Inc.

     9,352,090  
  95,600     

Gibraltar Industries, Inc. (a)

     5,818,216  
  176,400     

Griffon Corp.

     7,045,416  
  144,900     

Hawaiian Holdings, Inc. (a)

     610,029  
  296,200     

Hertz Global Holdings, Inc. (a)

     2,496,966  
  863,680     

Jacobs Solutions, Inc.

     115,128,544  
  2,484,900     

JetBlue Airways Corp. (a)

     9,343,224  
  3,130,400     

Li-Cycle Holdings Corp. (a)

     4,194,736  
  560,000     

Lyft, Inc. – Class A (a)

     5,135,200  
  156,200     

Masonite International Corp. (a)

     12,361,668  
  377,400     

NN, Inc. (a)

     679,320  
  2,600     

Old Dominion Freight Line, Inc.

     979,316  
  55,000     

RXO, Inc. (a)

     963,050  
  15,800     

Ryanair Holdings PLC – ADR (a)

     1,385,660  
  1,704,500     

Southwest Airlines Co.

     37,891,035  
  189,300     

Spirit Airlines, Inc.

     2,173,164  
  46,815     

Sun Country Airlines Holdings, Inc. (a)

     609,531  
  34,800     

TransDigm Group, Inc.

     28,817,532  
  318,200     

Uber Technologies, Inc. (a)

     13,771,696  
  1,897,440     

United Airlines Holdings, Inc. (a)

     66,429,375  
  26,800     

WillScot Mobile Mini Holdings Corp. (a)

     1,056,188  
  40,000     

XPO, Inc. (a)

     3,032,400  
     

 

 

 
        674,442,990  
     

 

 

 
Information Technology – 29.2%       
  144,300     

Adobe, Inc. (a)

     76,776,258  
  31,300     

Ambarella, Inc. (a)

     1,408,187  

 

The accompanying notes are an integral part of these financial statements.

 

29


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Information Technology (continued)       
  87,400     

Applied Materials, Inc.

   $ 11,567,390  
  2,735,300     

Arlo Technologies, Inc. (a)

     23,222,697  
  35,100     

ASML Holding N.V. – ADR

     21,018,231  
  3,182,700     

Aurora Innovation, Inc. – Class A (a)

     5,569,725  
  37,700     

Autodesk, Inc. (a)

     7,450,651  
  976,976     

Axcelis Technologies, Inc. (a)

     124,564,440  
  8,995,866     

BlackBerry Ltd. (a)

     32,205,200  
  649,200     

Credo Technology Group Holding Ltd. (a)

     9,231,624  
  123,099     

CrowdStrike Holdings, Inc. – Class A (a)

     21,760,210  
  59,250     

CyberArk Software Ltd. (a)

     9,695,670  
  85,000     

Dell Technologies, Inc. – Class C

     5,687,350  
  302,741     

Descartes Systems Group, Inc. (The) (a)

     21,860,928  
  200     

DocuSign, Inc. (a)

     7,776  
  5,961,940     

Flex Ltd. (a)

     153,341,097  
  838,115     

FormFactor, Inc. (a)

     28,395,336  
  108,500     

Freshworks, Inc. – Class A (a)

     1,946,490  
  20,350     

GitLab, Inc. – Class A (a)

     880,748  
  567,150     

Hewlett Packard Enterprise Co.

     8,722,767  
  184,000     

HP, Inc.

     4,844,720  
  92,550     

HubSpot, Inc. (a)

     39,219,913  
  4,091,700     

indie Semiconductor, Inc. – Class A (a)

     20,008,413  
  92,200     

Intuit, Inc.

     45,634,390  
  597,500     

Jabil, Inc.

     73,373,000  
  82,400     

Jamf Holding Corp. (a)

     1,323,344  
  35,500     

Keysight Technologies, Inc. (a)

     4,332,775  
  191,850     

KLA Corp.

     90,111,945  
  141,400     

Marvell Technology, Inc.

     6,676,908  
  1,607,500     

MaxLinear, Inc. (a)

     24,434,000  
  2,959,065     

Micron Technology, Inc.

     197,872,677  
  16,500     

MongoDB, Inc. (a)

     5,685,735  
  866,367     

NetApp, Inc.

     63,054,190  
  182,643     

nLIGHT, Inc. (a)

     1,521,416  
  1,939,525     

Nutanix, Inc. – Class A (a)

     70,191,410  
  170,280     

NVIDIA Corp.

     69,440,184  
  262,500     

Okta, Inc. – Class A (a)

     17,695,125  
  185,790     

OSI Systems, Inc. (a)

     19,372,323  
  63,500     

Palo Alto Networks, Inc. (a)

     15,431,770  
  286,260     

PROS Holdings, Inc. (a)

     8,916,999  
  332,023     

QUALCOMM, Inc.

     36,187,187  

 

The accompanying notes are an integral part of these financial statements.

 

30


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
Information Technology (continued)       
  183,400     

Rapid7, Inc. (a)

   $ 8,526,266  
  5,000     

RingCentral, Inc. – Class A (a)

     132,900  
  1,712,510     

Splunk, Inc. (a)

     252,012,972  
  1,032,800     

Stratasys Ltd. (a)

     10,503,576  
  107,100     

Tenable Holdings, Inc. (a)

     4,509,981  
  502,790     

Trimble, Inc. (a)

     23,696,493  
  230,933     

Unity Software, Inc. (a)

     5,858,770  
  767,299     

Universal Display Corp.

     106,792,675  
  116,000     

VMware, Inc. – Class A (a)

     16,895,400  
  322,800     

Western Digital Corp. (a)

     12,960,420  
  514,100     

Wolfspeed, Inc. (a)

     17,397,144  
  262,000     

Zoom Video Communications, Inc. – Class A (a)

     15,714,760  
     

 

 

 
        1,855,642,556  
     

 

 

 
Materials – 0.7%       
  93,630     

Albemarle Corp.

     11,870,412  
  31,000     

Bioceres Crop Solutions Corp. (a)

     342,240  
  37,500     

Ingevity Corp. (a)

     1,510,500  
  332,100     

Ivanhoe Electric, Inc. (a)

     3,400,704  
  2,880,600     

Ivanhoe Mines Ltd. – Class A – CAD (a)

     21,229,300  
  1,234,152     

Perimeter Solutions SA (a)

     3,949,286  
     

 

 

 
        42,302,442  
     

 

 

 
Real Estate – 0.1%       
  136,720     

EPR Properties

     5,837,944  
  53,600     

Safehold, Inc.

     872,072  
     

 

 

 
        6,710,016  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $3,788,993,696)

   $ 6,203,850,556  
     

 

 

 
  RIGHTS – 0.0%   
Health Care – 0.0%       
  349,922     

ABIOMED, Inc. – CVR
(Issue Date 12/23/22) (a) (c) (d)

     356,921  
  10,344,756     

Epizyme, Inc. – CVR (Issue Date 8/15/22) (a) (c) (d)

     206,895  
  3,786,300     

Mereo BioPharma Group PLC – CVR
(Issue Date 4/23/19) (a) (c) (d)

     0  
     

 

 

 
        563,816  
     

 

 

 
 

TOTAL RIGHTS
(Cost $0)

     563,816  
     

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

31


Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

October 31, 2023 – continued

 

Shares            Value  
  WARRANTS – 0.0%   
Materials – 0.0%       
  364,100     

Perimeter Solutions SA (Expiration Date 11/8/24) (a)

   $ 14,564  
     

 

 

 
 

TOTAL WARRANTS
(Cost $3,641)

     14,564  
     

 

 

 
  SHORT-TERM INVESTMENTS – 2.6%   
  167,960,350     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 5.27% (e)

   $ 167,960,350  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $167,960,350)

     167,960,350  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $3,956,957,687) – 100.3%

     6,372,389,286  
 

Liabilities in Excess of Other Assets – (0.3)%

     (18,981,453
     

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 6,353,407,833  
     

 

 

 

 

ADR

American Depository Receipt

CAD

Canadian Dollars

CHF

Swiss Francs

CVR

Contingent Value Rights

EUR

Euros

GBP

British Pound Sterling

(a)

Non-Income Producing

(b)

Considered an affiliated company of the fund as the fund owns 5% or more of the outstanding voting securities of such company. (Note 7)

(c)

Illiquid security

(d)

Fair-valued security (Note 4)

(e)

Rate quoted is seven-day yield at period end.

The Global Industry Classification Standard (GICS ®) was developed by and is the exclusive property of MSCI Inc. and Standard & Poor’s Financial Services LLC (“S&P”). GICS is a service mark of MSCI and S&P and has been licensed for use by the fund’s administrator.

 

The accompanying notes are an integral part of these financial statements.

 

32


LOGO  

Statements of Assets and Liabilities

PRIMECAP Odyssey Funds

October 31, 2023

 

    PRIMECAP
Odyssey
Stock Fund
    PRIMECAP
Odyssey
Growth Fund
    PRIMECAP
Odyssey Aggressive
Growth Fund
 

ASSETS

     

Investments, at cost (unaffiliated)

  $ 2,881,478,507     $ 3,426,737,041     $ 3,606,043,322  
 

 

 

   

 

 

   

 

 

 

Investments, at cost (affiliated)

          81,243,994       350,914,365  
 

 

 

   

 

 

   

 

 

 

Investments, at value (unaffiliated)

    5,237,766,006       6,215,084,060       6,117,063,102  

Investments, at value (affiliated)

          53,124,640       255,326,184  

Receivable for investments sold

    133,979       14,120,504       5,306  

Receivable for dividends and interest

    7,570,088       7,335,413       3,112,529  

Receivable for fund shares sold

    2,912,783       2,090,410       2,252,974  

Prepaid expenses and other assets

    51,232       52,800       67,453  
 

 

 

   

 

 

   

 

 

 

Total assets

    5,248,434,088       6,291,807,827       6,377,827,548  
 

 

 

   

 

 

   

 

 

 
LIABILITIES      

Payable for investments purchased

    696,007       16,500       3,711,973  

Payable for fund shares repurchased

    7,668,531       6,504,635       10,270,437  

Payable to the advisor (Note 6)

    7,840,340       9,441,005       9,595,600  

Payable to custodian

    18,604       23,467       21,954  

Other accrued expenses and liabilities

    879,863       908,601       819,751  
 

 

 

   

 

 

   

 

 

 

Total liabilities

    17,103,345       16,894,208       24,419,715  
 

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 5,231,330,743     $ 6,274,913,619     $ 6,353,407,833  
 

 

 

   

 

 

   

 

 

 

Number of shares issued and outstanding (unlimited shares authorized, $0.01 par value)

    155,863,842       175,469,794       165,450,352  
 

 

 

   

 

 

   

 

 

 

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE

  $ 33.56     $ 35.76     $ 38.40  
 

 

 

   

 

 

   

 

 

 
COMPONENTS OF NET ASSETS      

Paid-in capital

  $ 2,364,663,750     $ 2,752,940,935     $ 3,610,311,981  

Total distributable earnings

    2,866,666,993       3,521,972,684       2,743,095,852  
 

 

 

   

 

 

   

 

 

 

Net assets

  $ 5,231,330,743     $ 6,274,913,619     $ 6,353,407,833  
 

 

 

   

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

33


LOGO  

Statements of Operations

PRIMECAP Odyssey Funds

For the Year Ended October 31, 2023

 

    PRIMECAP
Odyssey
Stock Fund
    PRIMECAP
Odyssey
Growth Fund
    PRIMECAP
Odyssey Aggressive
Growth Fund
 

INVESTMENT INCOME

     

Dividends (unaffiliated)(1)

  $ 95,107,028     $ 70,792,123     $ 28,342,944  

Interest income

    8,322,448       7,557,128       11,154,936  
 

 

 

   

 

 

   

 

 

 

Total investment income

    103,429,476       78,349,251       39,497,880  
 

 

 

   

 

 

   

 

 

 

Expenses

     

Advisory fees (Note 6)

    31,324,073       37,838,876       38,428,954  

Shareholder servicing

    4,766,991       5,636,258       5,334,179  

Trustee fees

    241,834       241,834       241,834  

Custody

    115,096       145,184       136,215  

Other

    1,373,698       1,373,774       1,369,687  
 

 

 

   

 

 

   

 

 

 

Total expenses

    37,821,692       45,235,926       45,510,869  
 

 

 

   

 

 

   

 

 

 

Net investment income (loss)

    65,607,784       33,113,325       (6,012,989
 

 

 

   

 

 

   

 

 

 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY      

Net realized gain (loss) on:

     

Investments (unaffiliated)

    542,618,630       900,206,339       582,044,523  

Investments (affiliated)

          (95,694     (120,080,254

In-kind redemptions

                152,903,699  

Foreign currency transactions

    (22,646     8,084       15,937  

Change in unrealized appreciation/depreciation on:

     

Investments (unaffiliated)

    (144,459,268     (246,308,141     32,606,808  

Investments (affiliated)

          (43,446,309     (11,878,147

Foreign currency translations

    239,197       259,701       60,395  
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain on investments and foreign currency

    398,375,913       610,623,980       635,672,961  
 

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 463,983,697     $ 643,737,305     $ 629,659,972  
 

 

 

   

 

 

   

 

 

 

 

  (1)

Net of foreign taxes withheld of $1,521,576, $1,406,651, and $401,352, respectively.

 

The accompanying notes are an integral part of these financial statements.

 

34


LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Stock Fund

 

    Year Ended
October 31, 2023
    Year Ended
October 31, 2022
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment income

  $ 65,607,784     $ 61,544,219  

Net realized gain (loss) on:

   

Investments

    542,618,630       647,224,948  

Foreign currency transactions

    (22,646     (27,449

Change in unrealized appreciation/depreciation on:

   

Investments

    (144,459,268     (1,508,520,339

Foreign currency translations

    239,197       (542,347
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    463,983,697       (800,320,968
 

 

 

   

 

 

 

NET DISTRIBUTIONS TO SHAREHOLDERS

    (623,026,904     (663,331,689
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    424,348,515       667,871,168  

Proceeds from reinvestment of distributions

    603,545,405       625,946,173  

Cost of shares repurchased

    (1,436,622,953     (1,764,672,183
 

 

 

   

 

 

 

Net decrease from capital share transactions

    (408,729,033     (470,854,842
 

 

 

   

 

 

 

Total decrease in net assets

    (567,772,240     (1,934,507,499
 

 

 

   

 

 

 
NET ASSETS    

Beginning of year

    5,799,102,983       7,733,610,482  
 

 

 

   

 

 

 

End of year

  $ 5,231,330,743     $ 5,799,102,983  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of year

    166,752,590       179,968,262  
 

 

 

   

 

 

 

Shares sold

    12,399,802       17,904,467  

Shares issued on reinvestment of distributions

    18,807,897       15,899,064  

Shares repurchased

    (42,096,447     (47,019,203
 

 

 

   

 

 

 

Decrease in capital shares

    (10,888,748     (13,215,672
 

 

 

   

 

 

 

Shares outstanding, end of year

    155,863,842       166,752,590  
 

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

35


LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Growth Fund

 

    Year Ended
October 31, 2023
    Year Ended
October 31, 2022
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment income

  $ 33,113,325     $ 32,566,544  

Net realized gain (loss) on:

   

Investments

    900,110,645       832,338,376  

Foreign currency transactions

    8,084       (84,221

Change in unrealized appreciation/depreciation on:

   

Investments

    (289,754,450     (2,524,938,381

Foreign currency translations

    259,701       (512,055
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    643,737,305       (1,660,629,737
 

 

 

   

 

 

 

NET DISTRIBUTIONS TO SHAREHOLDERS

    (759,221,460     (1,188,273,747
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    494,456,847       764,196,219  

Proceeds from reinvestment of distributions

    727,799,102       1,137,615,421  

Cost of shares repurchased

    (1,789,442,494     (2,263,851,289
 

 

 

   

 

 

 

Net decrease from capital share transactions

    (567,186,545     (362,039,649
 

 

 

   

 

 

 

Total decrease in net assets

    (682,670,700     (3,210,943,133
 

 

 

   

 

 

 
NET ASSETS    

Beginning of year

    6,957,584,319       10,168,527,452  
 

 

 

   

 

 

 

End of year

  $ 6,274,913,619     $ 6,957,584,319  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of year

    189,577,840       200,231,866  
 

 

 

   

 

 

 

Shares sold

    13,632,185       19,065,925  

Shares issued on reinvestment of distributions

    21,280,675       26,388,667  

Shares repurchased

    (49,020,906     (56,108,618
 

 

 

   

 

 

 

Decrease in capital shares

    (14,108,046     (10,654,026
 

 

 

   

 

 

 

Shares outstanding, end of year

    175,469,794       189,577,840  
 

 

 

   

 

 

 

 

The accompanying notes are an integral part of these financial statements.

 

36


LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Aggressive Growth Fund

 

    Year Ended
October 31, 2023
    Year Ended
October 31, 2022
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment loss

  $ (6,012,989   $ (16,441,163

Net realized gain on:

   

Investments

    461,964,269       756,285,619  

In-kind redemptions

    152,903,699        

Foreign currency transactions

    15,937       4,606  

Change in unrealized appreciation/depreciation on:

   

Investments

    20,728,661       (3,836,284,341

Foreign currency translations

    60,395       (127,296
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    629,659,972       (3,096,562,575
 

 

 

   

 

 

 

NET DISTRIBUTIONS TO SHAREHOLDERS

    (641,269,952     (1,124,701,183
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    746,030,472       787,713,914  

Proceeds from reinvestment of distributions

    610,014,476       1,074,932,684  

Cost of shares repurchased

    (1,922,098,498     (2,445,463,848

Other capital contribution

    78 (1)       
 

 

 

   

 

 

 

Net decrease from capital share transactions

    (566,053,472     (582,817,250
 

 

 

   

 

 

 

Total decrease in net assets

    (577,663,452     (4,804,081,008
 

 

 

   

 

 

 
NET ASSETS    

Beginning of year

    6,931,071,285       11,735,152,293  
 

 

 

   

 

 

 

End of year

  $ 6,353,407,833     $ 6,931,071,285  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of year

    178,104,760       194,391,937  
 

 

 

   

 

 

 

Shares sold

    18,814,530       17,617,406  

Shares issued on reinvestment of distributions

    16,371,832       20,852,234  

Shares repurchased

    (47,840,770     (54,756,817
 

 

 

   

 

 

 

Decrease in capital shares

    (12,654,408     (16,287,177
 

 

 

   

 

 

 

Shares outstanding, end of year

    165,450,352       178,104,760  
 

 

 

   

 

 

 

 

  (1) 

During the year ended October 31, 2023, the Transfer Agent reimbursed the Aggressive Growth Fund $78 for a net loss realized related to a shareholder redemption.

 

The accompanying notes are an integral part of these financial statements.

 

37


LOGO  

Financial Highlights

PRIMECAP Odyssey Stock Fund

For a capital share outstanding throughout each year.

 

    Year
Ended
Oct. 31,
2023
    Year
Ended
Oct. 31,
2022
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
 

Net asset value, beginning of year

  $ 34.78     $ 42.97     $ 31.89     $ 34.33     $ 31.79  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

         

Net investment income

    0.40 (1)      0.35 (1)      0.27 (1)      0.40 (1)      0.46  

Net realized and unrealized gain (loss) on investments and foreign currency

    2.25       (4.78     13.57       (0.76     2.95  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    2.65       (4.43     13.84       (0.36     3.41  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

         

Dividends from net investment income

    (0.41     (0.28     (0.48     (0.47     (0.34

Distributions from net realized gain

    (3.46     (3.48     (2.28     (1.61     (0.53
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (3.87     (3.76     (2.76     (2.08     (0.87
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 33.56     $ 34.78     $ 42.97     $ 31.89     $ 34.33  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    8.13     (11.33 %)      45.44     (1.48 %)      11.22

Ratios/supplemental data:

         

Net assets, end of year (millions)

  $ 5,231.3     $ 5,799.1     $ 7,733.6     $ 6,244.6     $ 10,274.3  

Ratio of expenses to average net assets

    0.67     0.66     0.65     0.65     0.65

Ratio of net investment income to average net assets

    1.15     0.93     0.67     1.28     1.38

Portfolio turnover rate

    4     4     6     8     6

 

  (1) 

Calculated using the average shares method.

 

The accompanying notes are an integral part of these financial statements.

 

38


LOGO  

Financial Highlights

PRIMECAP Odyssey Growth Fund

For a capital share outstanding throughout each year.

 

    Year
Ended
Oct. 31,
2023
    Year
Ended
Oct. 31,
2022
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
 

Net asset value, beginning of year

  $ 36.70     $ 50.78     $ 40.31     $ 39.68     $ 38.43  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

         

Net investment income

    0.18 (1)      0.16 (1)      0.05 (1)      0.16 (1)      0.22  

Net realized and unrealized gain (loss) on investments and foreign currency

    3.04       (8.21     15.72       2.57       1.88  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    3.22       (8.05     15.77       2.73       2.10  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

         

Dividends from net investment income

    (0.21     (0.05     (0.17     (0.20     (0.12

Distributions from net realized gain

    (3.95     (5.98     (5.13     (1.90     (0.73
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (4.16     (6.03     (5.30     (2.10     (0.85
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 35.76     $ 36.70     $ 50.78     $ 40.31     $ 39.68  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    9.30     (17.61 %)      41.97     6.83     5.75

Ratios/supplemental data:

         

Net assets, end of year (millions)

  $ 6,274.9     $ 6,957.6     $ 10,168.5     $ 8,606.4     $ 12,365.6  

Ratio of expenses to average net assets

    0.66     0.65     0.65     0.65     0.64

Ratio of net investment income to average net assets

    0.48     0.40     0.10     0.42     0.53

Portfolio turnover rate

    7     4     7     9     6

 

  (1) 

Calculated using the average shares method.

 

The accompanying notes are an integral part of these financial statements.

 

39


LOGO  

Financial Highlights

PRIMECAP Odyssey Aggressive Growth Fund

For a capital share outstanding throughout each year.

 

    Year
Ended
Oct. 31,
2023
    Year
Ended
Oct. 31,
2022
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
 

Net asset value, beginning of year

  $ 38.92     $ 60.37     $ 48.07     $ 43.46     $ 44.71  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

         

Net investment income (loss)

    (0.03 )(1)      (0.09 )(1)      (0.22 )(1)      (0.10 )(1)      0.03  

Net realized and unrealized gain (loss) on investments and foreign currency

    3.42       (15.51     16.73       7.10       1.72  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    3.39       (15.60     16.51       7.00       1.75  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

         

Dividends from net investment income

                            (0.03

Distributions from net realized gain

    (3.91     (5.85     (4.21     (2.39     (2.97
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (3.91     (5.85     (4.21     (2.39     (3.00
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 38.40     $ 38.92     $ 60.37     $ 48.07     $ 43.46  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    9.01     (28.21 %)      35.53     16.52     4.71

Ratios/supplemental data:

         

Net assets, end of year (millions)

  $ 6,353.4     $ 6,931.1     $ 11,735.2     $ 9,571.4     $ 9,851.4  

Ratio of expenses to average net assets

    0.65     0.65     0.64     0.64     0.63

Ratio of net investment income (loss) to average net assets

    (0.09 %)      (0.19 %)      (0.39 %)      (0.23 %)      0.01

Portfolio turnover rate

    5     4     9     17     7

 

 

  (1) 

Calculated using the average shares method.

 

The accompanying notes are an integral part of these financial statements.

 

40


LOGO  

Notes to Financial Statements

PRIMECAP Odyssey Funds

For the Year Ended October 31, 2023

 

(1)  Organization

PRIMECAP Odyssey Funds (the “Trust”) was organized on June 8, 2004 as a Delaware statutory trust and is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust is comprised of three series: PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund (the “Funds”), each of which is diversified within the meaning of the 1940 Act. PRIMECAP Management Company (the “Investment Advisor”) serves as investment advisor to the Funds. Each Fund commenced operations on November 1, 2004.

Each Fund’s investment objective is to achieve long-term capital appreciation. Each Fund is authorized to issue unlimited shares of beneficial interest. All shares of each Fund have equal rights with respect to voting.

(2)  Significant Accounting Policies

The Funds consistently follow the accounting policies set forth below which are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Funds are considered investment companies under U.S. GAAP and follow the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Auditing Standards Codification Topic 946.

 

  A.

Security Valuation

Securities traded on a national securities exchange are valued at the last reported sales price at the close of regular trading on each day the exchanges are open for trading. Securities traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) are valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. Non-U.S. traded stocks are valued at the last sale price or official closing price in the primary local market where the stock is traded. Securities traded on an exchange for which there have been no sales are valued at the mean between the bid and ask price. Because trading on most non-U.S. exchanges is normally completed before the close of the New York Stock Exchange, the value of securities traded on foreign exchanges can change by the time a Fund calculates its net asset value per share (“NAV”). To address these changes, the Funds may utilize adjustment factors provided by an independent pricing service to systematically value foreign securities at fair value. These adjustment factors are based on statistical analyses of subsequent movement in securities indices, specific security prices, and exchange rates in foreign markets.

Securities for which quotations are not readily available are valued at their respective fair values as determined in good faith by a valuation committee of the Investment Advisor in accordance with procedures approved by the Trust’s Board of Trustees. Pursuant to those procedures, the Board of Trustees has designated the Investment Advisor as the Funds’ valuation designee responsible for determining whether market quotations are readily available and reliable, and making good faith determinations of fair value when appropriate. In determining fair value, the Funds take into account all

 

41


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

relevant factors and available information. Consequently, the price of a security used by a Fund to calculate its NAV may differ from quoted or published prices for the same security. Fair value pricing involves subjective judgments, and there is no single standard for determining a security’s fair value. As a result, different mutual funds could reasonably arrive at a different fair value for the same security. It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine.

Investments in other funds are valued at their respective net asset values as determined by those funds, in accordance with the 1940 Act.

 

  B.

Share Valuation

The NAV of a Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses), by the total number of outstanding shares of the Fund. The result is rounded to the nearest cent. The Funds’ shares will not be priced on the days on which the New York Stock Exchange is closed for trading.

 

  C.

Foreign Currency

Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates as of 4 p.m. Eastern time on the valuation date. Purchases and sales of investments and dividend and interest income are converted into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such translations. Realized foreign exchange gains or losses may arise from 1) sales of foreign currencies; 2) currency gains or losses realized between the trade and settlement dates on securities transactions; and 3) the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. Foreign securities and currency transactions may involve risks not associated with U.S. securities and currency.

 

  D.

Federal Income Taxes

Each Fund has elected to be treated as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986 (the “IRC”). Each Fund intends to distribute substantially all of its taxable income and any accumulated net realized capital gains. Accordingly, no provision for federal income taxes has been made in the financial statements.

The Funds may be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be reclaimed. The Funds will accrue such taxes and reclaims as applicable based upon their current interpretations of the tax rules and regulations that exist in the markets in which they invest.

 

42


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

Each Fund has adopted accounting standards regarding recognition and measurement of tax positions taken or expected to be taken on a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended October 31, 2023, the Funds did not incur any interest or penalties. As of October 31, 2023, open tax years include the tax years ended October 31, 2020 through October 31, 2023. No Fund is aware of any tax positions for which it is more likely than not that the total amounts of unrecognized tax benefits or loss will significantly change in the next 12 months.

 

  E.

Allocation of Expenses

Each Fund is charged for those expenses directly attributable to it. Expenses that are not directly attributable to a Fund are allocated among the Funds by an appropriate method based on the nature of the expense.

 

  F.

Security Transactions, Investment Income, and Distributions

Security transactions are accounted for on the trade date. Dividend income and distributions to shareholders are recorded on the ex-dividend date, and interest income is recognized on the accrual basis. Realized gains and losses are evaluated on the basis of identified costs. Premiums and discounts on the purchase of securities are amortized/accreted using the effective interest method. U.S. GAAP requires that permanent financial reporting and tax differences be reclassified in the capital accounts.

 

  G.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, and such differences could be material.

 

  H.

Indemnification Obligations

Under the Trust’s organizational documents, its current and former officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. Based on experience, the Funds would expect the risk of loss to be minimal.

 

43


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

(3)  Investment Transactions

The cost of purchases and the proceeds from sales of securities, excluding short-term investments, for the year ended October 31, 2023 were as follows:

 

Fund

  Purchases      Sales  

Stock Fund

  $ 194,254,491      $ 1,122,922,291  

Growth Fund

  $ 469,792,694      $ 1,669,703,936  

Aggressive Growth Fund

  $ 361,692,610      $ 1,560,286,809 (1) 

 

  (1) 

Included in proceeds of PRIMECAP Odyssey Aggressive Growth Fund’s sales is $201,244,281 representing the value of securities transferred in payment of redemptions in-kind.

(4)  Valuation Measurements

The Funds have adopted fair valuation accounting standards which establish an authoritative definition of fair value and set forth a hierarchy for measuring fair value. These standards require additional disclosure about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used to value the asset or liability. These standards state that “observable inputs” reflect the significant assumptions that market participants would use in valuing an asset or liability based on market data obtained from independent sources. “Unobservable inputs” reflect the Funds’ own assumptions about the inputs market participants would use to value the asset or liability.

Various inputs are used in determining the value of each Fund’s investments, and the lowest level for any significant input determines leveling. These inputs are summarized in the three broad levels below:

 

  Level 1 –

Unadjusted quoted prices in active markets for identical securities to which the Trust has access at the date of measurement.

 

 

  Level 2 –

Other significant observable inputs (including quoted prices for similar or related securities in both active and inactive markets, interest rates, foreign exchange rates, and fair value estimates for foreign securities indices).

 

 

  Level 3 –

Significant unobservable inputs to the extent observable inputs are unavailable (including the Funds’ own assumptions in determining fair value of investments based on the best available information).

 

 

44


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

The following table provides the fair value measurements of applicable Fund assets by level within the fair value hierarchy for each Fund as of October 31, 2023. These assets are measured on a recurring basis.

 

Fund

 

Description

  Quoted prices
in active
markets for
identical assets
(Level 1)
    Significant
other
observable
inputs
(Level 2)
    Significant
unobservable
inputs
(Level 3)
    Total  
Stock  

Common Stocks(1)

  $ 5,060,330,260     $     $     $ 5,060,330,260  
Fund  

Short-Term Investments

    177,435,746                   177,435,746  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 5,237,766,006     $     $     $ 5,237,766,006  
   

 

 

   

 

 

   

 

 

   

 

 

 
Growth  

Common Stocks(1)

  $ 6,191,955,209     $     $     $ 6,191,955,209  
Fund  

Rights(2)

                479,146       479,146  
 

Short-Term Investments

    75,774,345                   75,774,345  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 6,267,729,554     $     $ 479,146     $ 6,268,208,700  
   

 

 

   

 

 

   

 

 

   

 

 

 
Aggressive  

Common Stocks(1)

  $ 6,203,850,556     $     $     $ 6,203,850,556  
Growth  

Rights(2)

                563,816       563,816  
Fund  

Warrants(3)

          14,564             14,564  
 

Short-Term Investments

    167,960,350                   167,960,350  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 6,371,810,906     $ 14,564     $ 563,816     $ 6,372,389,286  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1) 

Refer to each Fund’s respective Schedule of Investments for the breakdown of major categories.

  (2)

Health Care

  (3) 

Materials

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

 

ABIOMED, Inc. - CVR (Issue Date 12/23/22)

 
    Growth Fund      Aggressive
Growth Fund
 

Balance at October 31, 2022

  $      $  

Purchases (Received)

    394,995        356,921  

Sales (Proceeds)

            

Realized Gain (Loss)

            

Change in Unrealized Appreciation/Depreciation

            
 

 

 

    

 

 

 

Balance at October 31, 2023

  $ 394,995      $ 356,921  
 

 

 

    

 

 

 

During the year ended October 31, 2023, the Funds determined the fair value of ABIOMED, Inc. (“ABIOMED”) CVR considering available information, including the value of ABIOMED stock prior to the issuance of the CVR. The likelihood of receiving payments pursuant to an agreement will depend on achievement of certain milestones.

 

45


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

Epizyme, Inc. - CVR (Issue Date 8/15/22)

 
    Growth Fund      Aggressive
Growth Fund
 

Balance at October 31, 2022

  $ 84,151      $ 206,895  

Purchases (Received)

            

Sales (Proceeds)

            

Realized Gain (Loss)

            

Change in Unrealized Appreciation/Depreciation

            
 

 

 

    

 

 

 

Balance at October 31, 2023

  $ 84,151      $ 206,895  
 

 

 

    

 

 

 

During the year ended October 31, 2023, the Funds determined the fair value of Epizyme, Inc. (“Epizyme”) CVR considering available information, including the value of Epizyme stock prior to the issuance of the CVR. The likelihood of receiving payments pursuant to an agreement will depend on achievement of certain milestones.

(5)  Distribution to Shareholders

Net investment income and net realized gains differ for financial statement and tax purposes due to differing treatments of deferred wash sale losses.

As of October 31, 2023, the components of capital on a tax basis were as follows:

 

    PRIMECAP
Odyssey Stock
Fund
    PRIMECAP
Odyssey
Growth Fund
    PRIMECAP
Odyssey Aggressive
Growth Fund
 

Cost of investments for tax purposes(1)

  $ 2,903,361,821     $ 3,572,140,811     $ 4,010,755,863  
 

 

 

   

 

 

   

 

 

 

Gross tax unrealized appreciation

    2,667,796,492       3,260,412,574       3,368,358,509  

Gross tax unrealized depreciation

    (333,542,968     (564,376,407     (1,006,767,832
 

 

 

   

 

 

   

 

 

 

Net tax unrealized appreciation

    2,334,253,524       2,696,036,167       2,361,590,677  
 

 

 

   

 

 

   

 

 

 

Undistributed ordinary income

    61,393,933       34,731,227       838,596  

Undistributed long-term capital gain

    471,019,536       791,205,290       380,666,579  
 

 

 

   

 

 

   

 

 

 

Total distributable earnings

    532,413,469       825,936,517       381,505,175  
 

 

 

   

 

 

   

 

 

 

Other accumulated gain (loss)

                 
 

 

 

   

 

 

   

 

 

 

Total accumulated gain

  $ 2,866,666,993     $ 3,521,972,684     $ 2,743,095,852  
 

 

 

   

 

 

   

 

 

 

 

  (1) 

At October 31, 2023 the differences in the basis for federal income tax purposes and financial reporting purposes are due to the tax deferral of losses on wash sales.

 

46


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

U.S. GAAP requires that permanent book-to-tax differences be reclassified among the components of net assets. These reclassifications have no effect on net assets or NAV. For the fiscal year ended October 31, 2023, the following reclassifications were made:

 

    Undistributed
Net Investment
Gain (Loss)
    Accumulated
Net Realized
Gain (Loss)
    Paid In Capital  

Stock Fund

  $ (22,646   $ (64,068,371   $ 64,091,017  

Growth Fund

  $ 8,083     $ (115,022,060   $ 115,013,977  

Aggressive Growth Fund

  $ 18,595,106     $ (244,346,481   $ 225,751,375  

The Funds used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from net realized capital gains. The PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund reclassified $64,091,017, $115,013,977, and $225,751,375, respectively, from Accumulated Net Realized Gain to Paid In Capital. Other permanent book-to-tax differences that required reclassification among the Funds’ capital accounts related to foreign currency adjustments and net operating losses.

Tax components of dividends paid during the fiscal years ended October 31, 2023 and October 31, 2022 were as follows:

 

    October 31, 2023      October 31, 2022  
    Ordinary
Income
Distributions
     Long-Term
Capital Gain
Distributions
     Ordinary
Income
Distributions
     Long-Term
Capital Gain
Distributions
 

Stock Fund

  $ 70,023,060      $ 553,003,844      $ 56,748,200      $ 606,583,489  

Growth Fund

  $ 52,353,122      $ 706,868,338      $ 35,104,520      $ 1,153,169,227  

Aggressive Growth Fund

  $      $ 641,269,952      $      $ 1,124,701,183  

The Funds designated as long-term capital gain dividends, pursuant to IRC Section 852 (b) (3), the amounts necessary to reduce the earnings and profits of the Funds related to net capital gains to zero for the tax year ended October 31, 2023.

(6)  Investment Advisory and Other Agreements

The Trust has entered into an investment management agreement with the Investment Advisor on behalf of each Fund. For its services to the Funds, the Investment Advisor receives an annual fee, payable on a quarterly basis, at the annual rate of 0.60% on the first $100 million of each Fund’s average daily assets, 0.55% on the next $9.9 billion of each Fund’s average daily net assets, and 0.50% on each Fund’s average daily assets in excess of $10 billion. For the year ended October 31, 2023, each Fund paid the Investment Advisor at an effective annual rate of 0.55% of its respective average net assets.

 

47


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

U.S. Bancorp Fund Services, LLC, d/b/a U.S. Bank Global Fund Services, serves as the administrator, fund accountant, and transfer agent to the Funds. U.S. Bank, N.A. serves as the Funds’ custodian. ALPS Distributors, Inc. serves as the Funds’ distributor.

(7)  Other Affiliates

Certain of the Funds’ investments are in companies that are considered to be affiliated companies of a Fund because the Fund owns 5% or more of the outstanding voting securities of the company. With respect to each such investment, refer to each Fund’s respective Schedule of Investments for the information on the sector of each such company, the number of shares of each such company held, and the percentages of net assets represented by such companies held in each sector. Transactions during the period in securities of these companies were as follows:

PRIMECAP Odyssey Growth Fund

 

          Current Period Transactions        

Common Stock

  Market
Value at
October 31,
2022
    Purchases
at Cost
    Proceeds
from
Securities
Sold
    Dividend
Income
    Realized
Gain
(Loss)
    Change in
Unrealized
Gain
(Loss)
    Market
Value at
October 31,
2023
 

Xometry, Inc. - Class A(1)

  $ N/A     $ 53,181,304     $ 196,900     $     $ (95,694   $ (43,446,309   $ 53,124,640  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ N/A     $ 53,181,304     $ 196,900     $     $ (95,694   $ (43,446,309   $ 53,124,640  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1) 

As of October 31, 2022, the company was not an affiliate.

PRIMECAP Odyssey Aggressive Growth Fund

 

          Current Period Transactions        

Common Stock

  Market
Value at
October 31,
2022
    Purchases
at Cost
    Proceeds
from
Securities
Sold
    Dividend
Income
    Realized
Gain
(Loss)
    Change in
Unrealized
Gain
(Loss)
    Market
Value at
October 31,
2023
 

Calithera Biosciences, Inc.(1)

  $ 702,085     $     $ 85,776     $     $ (23,960,408   $ 23,344,099     $ N/A  

Cerus Corp.(1)

    33,718,482             1,910,810             (1,387,540     (18,361,932     N/A  

Nektar Therapeutics(1)

    38,735,031       174,426       6,768,202             (70,223,138     40,067,338       N/A  

Pulmonx Corp.

    49,234,152       412,348       1,608             (4,717     (16,704,300     32,935,875  

Rhythm Pharmaceuticals, Inc.

    126,267,319       11,210,318       5,289,556             (410,393     (7,794,618     123,983,070  

Standard BioTools, Inc.(1)

    4,652,896             3,948,144             (23,759,309     27,423,341       N/A  

Xencor, Inc.

    123,164,076       36,142,164       712,177             (334,749     (59,852,075     98,407,239  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 376,474,041     $ 47,939,256     $ 18,716,273     $     $ (120,080,254   $ (11,878,147   $ 255,326,184  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1) 

No longer an affiliate as of October 31, 2023.

 

48


Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Year Ended October 31, 2023 – continued

 

(8)  Other Matters

Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. The ultimate economic fallout from these disruptions and the long-term impact on economies, markets, industries, and individual issuers, are not known. The operational and financial performance of the issuers of securities in which each Fund invests depends on future developments and may negatively impact the value of each Fund’s investments and lead to losses.

(9)  Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

 

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Report of Independent Registered

Public Accounting Firm

 

To the Board of Trustees of PRIMECAP Odyssey Funds and Shareholders of

PRIMECAP Odyssey Stock Fund,

PRIMECAP Odyssey Growth Fund, and

PRIMECAP Odyssey Aggressive Growth Fund

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments of PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund (constituting PRIMECAP Odyssey Funds, hereafter collectively referred to as the “Funds”) as of October 31, 2023, the related statements of operations for the year ended October 31, 2023, the statements of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended October 31, 2023 and each of the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Los Angeles, California

December 15, 2023

We have served as the auditor of one or more investment companies in PRIMECAP Odyssey Funds Investment Company Complex since 2004.

 

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Expense Example

PRIMECAP Odyssey Funds

(Unaudited)

 

As a shareholder of one or more of the Funds, you incur ongoing costs including management fees and other Fund expenses. This expense example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The expense example is based on an investment of $1,000 invested for a six-month period beginning May 1, 2023 through October 31, 2023.

Actual Expenses

The information in the table adjacent to the heading “Actual Performance” provides actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column entitled “Expenses Paid during Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The information in the table adjacent to the heading “Hypothetical Performance (5% return before expenses)” provides hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the information adjacent to the heading “Hypothetical Performance (5% return before expenses)” is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different mutual funds. In addition, if transactional costs were included, your costs would have been higher.

 

51


Expense Example

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

     Beginning
Account
Value
(5/1/23)
    Ending
Account
Value
(10/31/23)
    Expenses Paid
During Period(1)
(5/1/23 to
10/31/23)
    Expense Ratio
During Period(1)
(5/1/23 to
10/31/23)
 

PRIMECAP Odyssey Stock Fund

 

       

Actual Performance

  $ 1,000.00     $ 1,006.90     $ 3.39       0.67%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.83     $ 3.41       0.67%  

PRIMECAP Odyssey Growth Fund

 

       

Actual Performance

  $ 1,000.00     $ 1,007.00     $ 3.34       0.66%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.88     $ 3.36       0.66%  

PRIMECAP Odyssey Aggressive Growth Fund

 

   

Actual Performance

  $ 1,000.00     $ 984.40     $ 3.25       0.65%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.93     $ 3.31       0.65%  

 

  (1) 

Expenses are equal to a Fund’s annualized expense ratio as indicated, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year period (184), then divided by the number of days in the fiscal year (365) to reflect the one-half year period.

 

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Additional Information

PRIMECAP Odyssey Funds

(Unaudited)

 

Additional Tax Information

PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund designate 100%, 100%, and 0%, respectively, of ordinary income distributions paid during the fiscal year ended October 31, 2023 as qualified dividend income.

PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund designate 100%, 100%, and 0%, respectively, of ordinary income distributions paid during the fiscal year ended October 31, 2023 as dividends qualifying for the dividends received deduction available for corporate shareholders.

PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund designate 5.40%, 27.59%, and 0%, respectively, of ordinary income distributions paid during the fiscal year ended October 31, 2023 as short-term capital gain under Internal Revenue Code 871(k)(2)(C).

Proxy Voting Procedures

The Investment Advisor votes proxies relating to portfolio securities in accordance with procedures that have been approved by the Trust’s Board of Trustees. You may obtain a description of these procedures, free of charge, by calling toll-free 1-800-729-2307. This information is also available through the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

Proxy Voting Record

Information regarding how the Funds voted proxies relating to the portfolio securities during the most recent 12-month period ended June 30 is available, without charge, by calling toll-free 1-800-729-2307. This information is also available through the SEC’s website at www.sec.gov.

Portfolio Holdings Disclosure

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. This information is available, without charge, by calling toll-free 1-800-729-2307. The Funds’ Part F of Form N-PORT is also available on the SEC’s website at www.sec.gov. The Funds’ Part F of Form N-PORT may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

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Additional Information

PRIMECAP Odyssey Funds

(Unaudited) – continued

 

Results of Special Meeting of Shareholders

The Funds held a special meeting of shareholders on October 18, 2023 relating to the election of trustees. The shareholders elected Michael Glazer, Steven Paul Cesinger, LeSans Heard Montgomery, and Alfred W. Mordecai as Trustees of the Trust. A total of $12,083,032,832 were

represented at the meeting, either in person or by proxy, constituting 59.8% of the dollars eligible to vote. The voting results were as follows:

 

    For      Withheld  

Michael Glazer

  $  10,886,009,668      $ 1,197,023,164  

Steven Paul Cesinger

LeSans Heard Montgomery

  $

$

10,920,895,033

11,946,348,994

 

 

   $

$

1,162,137,799

136,683,838

 

 

Alfred W. Mordecai

  $ 11,976,943,086      $ 106,089,746  

Board Approval of the Renewal of the Investment Advisory Agreement

The Board of Trustees (the “Board”) of PRIMECAP Odyssey Funds (the “Trust”) is comprised of seven Trustees, six of whom are not “interested persons” of the Trust as defined by the Investment Company Act of 1940, as amended (the “Independent Trustees”). In October 2023, the Board of Trustees, including the Independent Trustees, approved a one-year renewal of the Trust’s investment advisory agreement with PRIMECAP Management Company (the “Advisor”) with respect to the series of the Trust (the “Funds”).

General Information

As part of the annual contract review process, the Independent Trustees, through counsel to the Trust and the Independent Trustees, requested and received extensive materials, including information related to the nature, extent, and quality of the services provided to the Funds by the Advisor; information prepared by Broadridge Financial Solutions (“Broadridge”) comparing the performance and risk profile of each Fund to those of relevant market indices and of other funds in the relevant Morningstar, Inc. (“Morningstar”) categories and in a smaller group of funds selected by Broadridge; information prepared by Broadridge comparing the advisory fees and total expenses to those of other funds in the relevant Morningstar category and peer group; financial information for the Advisor and information related to the profitability to the Advisor of the investment advisory agreement with the Trust; the extent to which the Advisor expects to achieve economies of scale in connection with the services it provides to each Fund; any ancillary or “fall out” benefits that the Advisor may derive from its relationship with the Funds; and the personnel of the Advisor providing services to the Funds. The Independent Trustees also requested and received information regarding the Advisor’s risk controls, risk evaluation processes, compliance program (including brokerage and trading processes), information technology infrastructure (including cyber security measures), business continuity plans, and other matters.

The Trust engaged Broadridge to prepare an independent expense and performance analysis for each Fund. In performing its analyses, Broadridge used data compiled by Morningstar to compare the expenses and performance of each Fund to those of similar funds managed by other advisors identified by Broadridge. The Board reviewed the Broadridge materials, which included

 

54


Additional Information

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

information regarding the performance of each Fund compared with the performance of its benchmark index and of the entire universe of funds in its Morningstar retail category, as well as the performance of a group of comparable funds selected by Broadridge from the relevant Morningstar category (each a “Peer Group”), for the one-, three-, five- and ten-year periods ended July 31, 2023 (in each case net of fees); as well as information regarding the advisory fees paid to the Advisor and the total expense ratio of each Fund compared to those of a peer group of comparable funds selected by Broadridge (each an “Expense Peer Group”) from the Fund’s Morningstar retail category.

With respect to investment performance, the Trustees noted that the Advisor had made quarterly presentations to the Board regarding the Funds’ portfolio construction, investment strategies, and results. The Trustees also noted that in addition to meeting with the Funds’ portfolio managers on a quarterly basis, they also received presentations from different investment analysts throughout the year on specific investment sectors and each Fund’s investments in those sectors. In considering the renewal of the agreement, the Board also took into account other information it had received at past Board and committee meetings with respect to various matters.

The Trustees reviewed information from counsel to the Trust and the Independent Trustees regarding their responsibilities in considering whether to renew the investment advisory agreement for an additional one-year period. In connection with their deliberations, the Board considered such information and factors that they believed to be relevant. The Board considered renewal of the investment advisory agreement separately for each Fund, although the Board took into account the common interests of all the Funds in its review. In considering these matters, the Board discussed the renewal of the investment advisory agreement with management, and the Independent Trustees met in a private session with counsel to the Trust and the Independent Trustees at which no employees of the Advisor were present.

In deciding to approve the renewal of the investment advisory agreement, the Board and the Independent Trustees did not identify a single factor that was controlling. The Board and the Independent Trustees concluded that each of the various factors referred to below favored such approval. The following summary describes the key factors considered by the Trustees and their conclusions that formed the basis for approving the renewal of the investment advisory agreement in light of the legal advice furnished by counsel and their own business judgment. This summary is not inclusive of all of the factors considered, and each Trustee did not necessarily attribute the same weight to each factor.    

Nature, Extent, and Quality of Services

The Board considered the services provided by the Advisor to the Funds under the investment advisory agreement, including the background, education, and experience of the Advisor’s key portfolio management, compliance, and operational personnel; its overall financial strength and stability; its resources and efforts to retain, attract, and motivate capable personnel to serve the Funds; and the overall general quality and depth of its organization. The Board also took into account the experience, capability, and integrity of the Advisor’s senior management, the time that senior management commits to the Funds, and the Advisor’s demonstrated commitment to

 

55


Additional Information

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

the Funds; its investment philosophy and processes, including its brokerage and trading practices; its disaster recovery and contingency planning; its oversight of the Funds’ internal control environment with regard to compliance with applicable laws and regulations; and the significant investment by each portfolio manager in the Funds that he manages, which helps align his interests with those of Fund shareholders. The Trustees concluded that the nature, extent, and quality of services provided under the investment advisory agreement were of a high level and satisfactory.

Investment Performance

The Board assessed the performance of each Fund compared with the performance of its benchmark(s) and other funds in the Fund’s Morningstar retail category and Peer Group for the one-, three-, five- and ten-year periods ended July 31, 2023. The Board made the following observations in reviewing the Funds’ performance:

 

   

The annualized total returns of the PRIMECAP Odyssey Stock Fund outperformed the returns of its benchmark, the S&P 500 Index, for the one- and three-year and since inception periods ended July 31, 2023, but underperformed compared to the Index for the five- and ten-year periods by 2.48% and 0.84%, respectively. The Fund’s annualized total returns were above the median returns of the funds in the Morningstar Large Relative Value category for the one- and three-year periods by 2.36% and 2.30%, but were below the median returns of the Morningstar category for the five- and ten-year periods by 1.63% and 0.30%, respectively. The Fund’s annualized total returns were above the median returns of the Peer Group for the one- and three-year periods by 1.14% and 2.44%, but were below the median returns of the Peer Group for the five- and ten-year periods by 0.72% and 0.53%, respectively.    

 

   

The annualized total returns of the PRIMECAP Odyssey Growth Fund outperformed the returns of its primary benchmark, the S&P 500 Index, for the one-year and since inception periods ended July 31, 2023, but underperformed compared to the Index for the three-, five- and ten-year periods by 1.38%, 4.22% and 0.76%, respectively. The Fund’s annualized total returns outperformed the return of its secondary benchmark, the Russell 1000 Growth Index, for the three-year period, but underperformed compared to the Index for the one-, five-, and ten-year and since inception periods by 2.62%, 7.25%, 3.63% and 0.75%, respectively. The Fund’s annualized total returns were above the median return of the funds in the Morningstar Large Core Growth category for the three-year period by 1.62%, but were below the median returns of the Morningstar category for the one-, five- and ten-year periods by 0.73%, 5.26% and 1.85%, respectively. The Fund’s annualized total returns were above the median return of the Peer Group for the three-year period by 1.87%, but were below the median returns of the Peer Group for the one-, five- and ten-year periods by 0.63%, 4.98%, and 1.68%, respectively.

 

   

The annualized total returns of the PRIMECAP Odyssey Aggressive Growth Fund outperformed the returns of its primary benchmark, the S&P 500 Index, for the one-year and since inception periods ended July 31, 2023, but underperformed compared to the Index for the three-, five-, and ten-year periods by 6.01%, 6.23% and 0.72%, respectively. The

 

56


Additional Information

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

 

Fund’s annualized total returns outperformed the returns of its secondary benchmark, the Russell Mid Cap Growth Index, for the one-, three-, and ten-year and since inception periods, but underperformed relative to the Index for the five-year period by 3.93%. The Fund’s annualized total returns were above the median returns of the funds in the Morningstar All-Cap Growth category for the one-and ten-year periods by 5.45% and 0.61%, but were below the median returns of the Morningstar category for the three-and five-year periods by 0.35% and 3.82%, respectively. The Fund’s annualized total returns were above the median returns of the Peer Group for the one-, three-, and ten-year periods by 6.94%, 0.17%, and 0.28%, respectively, but was below the median return of the Peer Group for the five-year period by 4.07%.

In assessing the performance of the Funds, the Trustees acknowledged that the Funds’ performance struggled to keep pace with that of their respective indices, Peer Groups, and Morningstar categories for certain periods as the Advisor stayed committed to its investment philosophy and refused to chase momentum driven stocks during the height of the COVID-19 pandemic, including the Funds’ underweight positions in the “Big 5” tech stocks (Microsoft, Apple, Amazon, Alphabet, and Meta), since those companies benefited significantly from the pandemic. The Trustees noted that the Advisor believes that each Fund continues to hold considerable value in its portfolio despite the various periods of underperformance. The Trustees also noted that each Fund had performed well over the long term. Based on the information provided to them and in consideration of the specific investment objectives and risk profiles of each Fund, the Board and the Independent Trustees concluded that the performance of each Fund was satisfactory.

Advisory Fees and Fund Expenses

The Board reviewed the advisory fees and expenses paid by each Fund compared to those of other funds in the same Morningstar retail category (for the Stock Fund – Large Blend funds; for the Growth Fund – Large Growth funds; and for the Aggressive Growth Fund – Mid-Cap Growth funds), and of other funds in the Fund’s Expense Peer Group, which was selected by Broadridge and was comprised of funds comparable to the Fund with fee structures and characteristics similar to those of the Funds (e.g., no distribution or shareholder servicing fees, and excluding load funds, index and enhanced index funds, funds of funds, and multi-manager funds).

The materials for the meeting indicated as follows:

 

   

The advisory fee of the Stock Fund was the same as the median fee of the funds in the Morningstar Large Blend retail category, but above the median fee of the Fund’s Expense Peer Group by 0.09%.

 

   

The advisory fee of the Growth Fund was below the median fees of the funds in the Morningstar Large Growth category and the Fund’s Expense Peer Group.

 

57


Additional Information

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

   

The advisory fee of the Aggressive Growth Fund was below the median fees of the funds in the Morningstar Mid-Cap Growth category and the Fund’s Expense Peer Group.

 

   

The total expense ratios of the Stock Fund, the Growth Fund and the Aggressive Growth Fund were below the medians of the respective Morningstar retail categories. The total expense ratio of the Stock Fund was the same as the median of its Expense Peer Group, but the expense ratios of the Growth Fund and Aggressive Growth Fund were below the medians of their respective Expense Peer Groups.

The Board also reviewed the fees charged by the Advisor to other clients, including other mutual funds for which it provides sub-advisory services. The Board considered that although those fees were lower than those charged by the Advisor to the Funds, the differences appropriately reflected the investment, operational, and regulatory differences between advising other clients and the Funds, noting that mutual funds are subject to certain requirements under the 1940 Act that do not apply to the Advisor’s separate account clients. The Trustees considered the services provided by the Advisor under the Investment Advisory Agreement, including providing the Chief Compliance Officer, certain other officers of the Trust and other personnel involved in the oversight of the Trust’s service providers. The Board further noted that the advisory fee was the sole source of revenue from the Funds to the Advisor. The Board and the Independent Trustees determined that the advisory fees and expenses charged to the Funds were reasonable in consideration of the services provided.

Costs and Profits of the Advisor

The Board reviewed information regarding the Advisor’s financial position and concluded that the Advisor would be able to continue to provide advisory services to the Funds. The Board also reviewed information relating to the Advisor’s profitability. The Board recognized the competitiveness of the registered fund industry and the importance of an investment advisor’s long-term profitability, including for maintaining management stability and accountability, for maintaining its own financial condition and for maintaining an environment in which it is able to attract and retain investment professionals. The Board noted that the Advisor had closed the Aggressive Growth Fund in January 2014 to most new investors, limiting the growth of the Fund and consequently future profits to the Advisor as it relates to the Fund. Recognizing the difficulty in evaluating an investment advisor’s profitability with respect to the funds it manages in the context of an advisor with multiple lines of business, and noting that other profitability methodologies might also be reasonable, the Board and the Independent Trustees concluded that the profit of the Advisor from its relationship with each Fund was reasonable.

Economies of Scale and Other Benefits to the Investment Advisor

The Trustees considered that the Investment Advisory Agreement provides fee breakpoints at $100 million and $10 billion in assets for each Fund, that the Advisor had added the $10 billion breakpoint effective May 1, 2021, and that the fees continued to compare favorably to those of other actively managed funds with similar investment objectives. The Board considered that the

 

58


Additional Information

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

Advisor had significant assets under management at the time the Funds commenced operations and that the Funds were offered advisory fee rates at inception that reflected scale within the Advisor’s business. The Board also acknowledged various diseconomies of scale experienced by the Advisor as the Funds have grown, including the hiring of additional personnel and the provision of additional services to the Funds including online access to shareholder accounts and improved technology, systems, and hardware. The Board and the Independent Trustees concluded that the Advisor had shared any economies of scale it had realized from the Funds with the Funds and their shareholders through advisory fee breakpoints, the hiring of additional personnel, and the provision of additional services to the Funds.

The Board also considered the benefits received by the Advisor as a result of its relationship with the Funds other than investment advisory fees, including any research provided to the Advisor by broker-dealers providing execution services to the Funds, the intangible benefits of the Advisor’s association with the Funds generally, and any favorable publicity arising in connection with the Funds’ performance.

Conclusions

Based on their review, including their consideration of each of the factors referred to above, the Board and the Independent Trustees concluded that the compensation payable to the Advisor pursuant to the investment advisory agreement with respect to each Fund was fair and reasonable in light of the services being provided by the Advisor to the Fund and its shareholders and that renewal of the investment advisory agreement with respect to each Fund was in the best interest of the Fund and its shareholders.

 

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Management

PRIMECAP Odyssey Funds

(Unaudited)

 

Portfolio Managers

PRIMECAP Management Company has five portfolio managers who together have more than 155 years of investment experience. The portfolio managers primarily responsible for overseeing the Funds’ investments are:

 

Name   Years of Experience  

Theo A. Kolokotrones

    53  

Joel P. Fried

    38  

Alfred W. Mordecai

    26  

M. Mohsin Ansari

    23  

James Marchetti

    18  

Each of these five individuals manages a portion of the PRIMECAP Odyssey Stock Fund, the PRIMECAP Odyssey Growth Fund, and the PRIMECAP Odyssey Aggressive Growth Fund. A portion of each Fund’s assets may be managed by individuals in the Investment Advisor’s research department.

Officers and Trustees

The Trust’s officers, who oversee the Funds’ daily operations, are appointed by the Board of Trustees. The trustees are responsible for the overall management of the Trust, including establishing the Funds’ policies and general supervision and review of their investment activities. The Statement of Additional Information includes additional information about the trustees and is available, without charge, by calling 1-800-729-2307 or at the Funds’ website at www.primecap.com.

Executive Officers. The table below sets forth certain information about each of the Trust’s executive officers. The address for each officer is 177 East Colorado Boulevard, 11th Floor, Pasadena, CA 91105.

 

Name

Age

  Position(s)
Held
with Trust
  Term of Office;
Length of
Time Served
  Principal Occupation(s)
During Past 5 Years

Theo A. Kolokotrones

Age: 77

  Co-Chief Executive Officer   Indefinite;
Since 09/04
 

Chairman, Director, and Portfolio Manager

PRIMECAP Management Company

Joel P. Fried

Age: 61

  Co-Chief Executive Officer and Trustee   Indefinite;
Since 09/04
 

President, Director, and Portfolio Manager

PRIMECAP Management Company

 

60


Management

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

Name
Age
  Position(s)
Held
with Trust
  Term of Office;
Length of
Time Served
  Principal Occupation(s)
During Past 5 Years

Alfred W. Mordecai

Age: 56

  Co-Chief Executive Officer and Trustee   Indefinite;
Since 10/12
  Vice Chairman, Director, and Portfolio Manager PRIMECAP Management Company

Michael J. Ricks

Age: 45

  Chief Administrative Officer and Secretary   Indefinite;
Since 03/11
  Vice President PRIMECAP Management Company; Chief Compliance Officer, PRIMECAP Odyssey Funds; Chief Compliance Officer, PRIMECAP Management Company March 2019-March 2020

Jennifer Ottosen

Age: 63

  Chief Compliance Officer, AML Compliance Officer   Indefinite;
Since 02/20
 

Chief Compliance Officer,

PRIMECAP Management Company since March 2020; Senior Compliance Officer, PRIMECAP Management Company May 2019-March 2020; CCO Dividend Assets Capital, LLC

Julietta Martikyan(1)

Age: 40

 

Chief Financial Officer

and Treasurer

  Indefinite;

Since 12/23

  Director of Administration and Compliance PRIMECAP Management Company since October 2021; Vice President U.S. Bank Global Fund Services February 2010-October 2021

 

  (1) 

Michael Ricks resigned as the Chief Financial Officer and Julietta Martikyan was elected as the Chief Financial Officer and Treasurer effective December 11, 2023.

“Independent” Trustees. The table below sets forth certain information about each of the trustees of the Trust who is not an “interested person” of the Trust as defined in the 1940 Act (“Independent Trustees”). The address for each Independent Trustee is 177 East Colorado Boulevard, 11th Floor, Pasadena, CA 91105.

 

Name
Age
  Position(s)
Held
with Trust
  Term of
Office;
Length of
Time Served
  Principal Occupation(s)
During Past 5 Years
  Number of
Portfolios in
Fund Complex
Overseen  by
Trustee(1)
  Other
Director-
ships Held
by  Trustee

Elizabeth D. Obershaw

Age: 63

  Chair of the Board and Trustee   Indefinite;
Since 06/08
  Consultant; Formerly, Managing Director, Horsley Bridge Partners, an investment advisor (2007-2021)   3   None

Wayne H. Smith

Age: 82

  Chair of the Audit Committee and Trustee   Indefinite;
Since 09/04
  Retired; Private investor   3   None

Joseph G. Uzelac

Age: 79

  Trustee   Indefinite;
Since 10/07
  Retired; Private investor   3   None

Michael Glazer

Age: 83

  Trustee   Indefinite;
Since 10/19
  Retired; Formerly, Partner and Senior Counsel, Morgan, Lewis & Bockius LLP   3   None

 

61


Management

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

Name
Age
  Position(s)
Held
with Trust
  Term of
Office;
Length of
Time Served
  Principal Occupation(s)
During Past 5 Years
  Number of
Portfolios in
Fund Complex
Overseen  by
Trustee(1)
  Other
Director-
ships Held
by  Trustee

Steven Paul Cesinger

Age: 60

  Trustee   Indefinite;
Since 10/23
  Global Co-Founder and Chief Capital Officer, Valor Hospitality Partners, a hospitality acquisition, development and management company; Chairman of the Board of Valor Hospitality Holdings, LLC   3   None

LeSans Heard Montgomery

Age: 56

  Trustee   Indefinite;
Since 10/23
  Licensed Realtor and Real Estate Consultant, RE/MAX Select Realty; Member, Board of Property Assessment Appeals and Review, Allegheny County, Pennsylvania (2020-present); Formerly Principal, Heard’s Tree Service   3   None

 

  (1) 

Fund Complex includes any funds, series of funds, or trusts that share the same advisor or that hold themselves out to investors as related companies.

“Interested” Trustees. The table below sets forth certain information about each of the trustees of the Trust who is an “interested person” of the Trust as defined by the 1940 Act. The address for each Interested Trustee is 177 East Colorado Boulevard, 11th Floor, Pasadena, CA 91105.

 

Name
Age
  Position(s)
Held
with Trust
  Term of
Office;
Length of
Time Served
 

Principal Occupation(s)

During Past 5 Years

  Number of
Portfolios in
Fund Complex
Overseen  by
Trustee(1)
  Other
Director-
ships Held
by  Trustee

Joel P. Fried(2)

Age: 61

  Co-Chief Executive Officer and Trustee   Indefinite;
Since 09/04
  President, Director, and Portfolio Manager
PRIMECAP Management Company
  3   None

Alfred W. Mordecai(2)

Age: 56

  Co-Chief Executive Officer and Trustee   Indefinite;
Since 10/23
  Vice Chairman, Director, and Portfolio Manager, PRIMECAP Management Company   3   None

 

  (1) 

Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment advisor or have an investment advisor that is an affiliated person of the investment advisor of any of the other registered investment companies.

  (2) 

Messrs. Fried and Mordecai are “interested persons” of the Trust, as defined by the 1940 Act, because of their employment with PRIMECAP Management Company, the investment advisor to the Trust.

 

62


LOGO  

Privacy Notice

PRIMECAP Odyssey Funds

 

PRIMECAP Management Company

Maintaining the confidentiality of client personal financial information is very important to PRIMECAP Odyssey Funds (the “Trust”) and PRIMECAP Management Company (the “Advisor”). The Advisor and the Trust may collect several types of nonpublic personal information about investors, including:

 

   

Information from forms that investors may fill out and send to the Advisor or the Trust in connection with an account (such as name, address, and social security number).

 

   

Information an investor may give the Advisor or the Trust orally.

 

   

Information about the amount investors have invested in an account.

 

   

Information about any bank account investors may use for transfers between a bank account and a shareholder account.

The Advisor and the Trust will not sell or disclose client personal information to anyone except as permitted or required by law. For example, information collected may be shared with the independent auditors in the course of the annual audit of the Advisor or the Trust. The Advisor or the Trust may also share this information with the Advisor’s or the Trust’s legal counsel, as deemed appropriate, and with regulators. Finally, the Advisor or the Trust may disclose information about clients or investors at the client’s or investor’s request (for example, by sending duplicate account statements to someone designated by the client or investor), or as otherwise permitted or required by law.

Within the Advisor and the Trust, access to information about clients and investors is restricted to those employees or service providers who need to know the information to service client accounts. The Advisor’s employees are trained to follow its procedures to protect client privacy and are instructed to access information about clients only when they have a business reason to obtain it.

The Advisor and the Trust reserve the right to change this privacy policy in the future, but we will not disclose investor nonpublic personal information except as required or permitted by law without giving the investor an opportunity to instruct us not to do so.


Investment Advisor

PRIMECAP MANAGEMENT COMPANY

177 East Colorado Boulevard, 11th Floor

Pasadena, California 91105

 

Distributor

ALPS DISTRIBUTORS, INC.

1290 Broadway, Suite 1000

Denver, Colorado 80203

 

Custodian

U.S. BANK, N.A.

1555 North RiverCenter Drive, Suite 302

Milwaukee, Wisconsin 53212

 

Transfer Agent

U.S. BANCORP FUND SERVICES, LLC

615 East Michigan Street, 3rd Floor

Milwaukee, Wisconsin 53202

 

Administrator

U.S. BANCORP FUND SERVICES, LLC

2020 East Financial Way, Suite 100

Glendora, California 91741

 

Legal Counsel

MORGAN, LEWIS & BOCKIUS LLP

600 Anton Boulevard, Suite 1800

Costa Mesa, California 92626

 

Independent Registered Public Accounting Firm

PRICEWATERHOUSECOOPERS LLP

601 South Figueroa Street, Suite 900

Los Angeles, California 90017

This report is intended for the shareholders of the PRIMECAP Odyssey Funds and may not be used as sales literature unless preceded or accompanied by a current prospectus.

Past performance results shown in this report should not be considered a representation of future performance. Share price and returns will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are dated and are subject to change.

PRIMECAP, PRIMECAP Odyssey, and the PRIMECAP Odyssey logo are trademarks of PRIMECAP Management Company.


  (b)

Not applicable.

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officers and principal financial officer. The Registrant has not made any amendments to its code of ethics during the period covered by this report. The Registrant has not granted any waivers, including any implicit waivers, from any provisions of the code of ethics during the period covered by this report.

The Registrant undertakes to provide to any person without charge, upon request, a copy of its code of ethics by mail when such person calls the Registrant at 1-800-729-2307.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that there is at least one audit committee financial expert serving on its audit committee. Wayne H. Smith and Steven Paul Cesinger are the Registrant’s “audit committee financial experts” and are considered to be “independent” as each term is defined in paragraph (2) of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

The Registrant has engaged its principal accountant, PricewaterhouseCoopers LLP, to perform audit services, audit-related services, and tax services during the past two fiscal years. “Audit services” refer to performing an audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.

(b) Audit-Related Services

“Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit.

(c) Tax Fees

“Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning and specifically relate to the accountant’s review of the Registrant’s federal and state tax returns.

(d) All Other Fees

There were no other services provided by the principal accountant to the Registrant during the past two fiscal years.


The following table details the aggregate fees billed or expected to be billed to the Registrant for each of the last two fiscal years for audit fees, audit-related fees, tax fees and all other fees by the principal accountant.

 

     FYE 10/31/2023      FYE 10/31/2022  

(a) Audit Fees

   $ 163,046      $ 156,071  

(b) Audit-Related Fees

   $ 0      $ 0  

(c) Tax Fees

   $ 19,779      $ 18,927  

(d) All Other Fees

   $ 0      $ 0  

(e)(1) The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the Registrant, including services provided to any entity affiliated with the Registrant. All services were pre-approved and no waivers to the pre-approval requirement were made.

(e)(2) The percentage of fees billed by PricewaterhouseCoopers applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:

 

     FYE 10/31/2023     FYE 10/31/2022  

Audit-Related Fees

     0     0

Tax Fees

     0     0

All Other Fees

     0     0

(f) Not applicable.

(g) The following table indicates the non-audit fees billed or expected to be billed by the Registrant’s accountant for services rendered to the Registrant and to the Registrant’s investment adviser (and any entity controlling, controlled by, or under common control with the investment adviser) for the last two years.

 

Non-Audit Related Fees

   FYE 10/31/2023      FYE 10/31/2022  

Registrant

   $ 19,779      $ 18,927  

Registrant’s Investment Adviser

   $ 0      $ 0  

(h) The audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser is compatible with maintaining the principal accountant’s independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.

(i) Not applicable.

(j) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).


Item 6. Investments.

 

(a)

The Registrant’s Schedule of Investments is included as part of the annual report to shareholders filed under Item 1 of this Form.

 

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

 

(a)

The Registrant’s Co-Chief Executive Officers and Chief Financial Officer have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

 

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.


Item 13. Exhibits.

(a)  (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item  2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Incorporated by reference to the Registrant’s Form N-CSR filed July  7, 2022.

(2) A separate certification for each principal executive and principal financial officer pursuant to Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.

(b) Certifications pursuant to Section  906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

PRIMECAP Odyssey Funds
By  

/s/ Joel P. Fried

  Joel P. Fried, Co-Chief Executive Officer
Date   December 22, 2023
By  

/s/ Theo A. Kolokotrones

  Theo A. Kolokotrones, Co-Chief Executive Officer
Date   December 22, 2023
By  

/s/ Alfred W. Mordecai

  Alfred W. Mordecai, Co-Chief Executive Officer
Date   December 22, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By  

/s/ Joel P. Fried

  Joel P. Fried, Co-Chief Executive Officer
Date   December 22, 2023
By  

/s/ Theo A. Kolokotrones

  Theo A. Kolokotrones, Co-Chief Executive Officer
Date   December 22, 2023
By  

/s/ Alfred W. Mordecai

  Alfred W. Mordecai, Co-Chief Executive Officer
Date   December 22, 2023
By  

/s/ Julietta Martikyan

  Julietta Martikyan, Chief Financial Officer
Date   December 22, 2023
EX-99.CERT 2 d850597dex99cert.htm EX-99.CERT EX-99.CERT

EX.99.CERT

CERTIFICATIONS

I, Joel P. Fried, certify that:

 

1.

I have reviewed this report on Form N-CSR of PRIMECAP Odyssey Funds;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 22, 2023    

/s/ Joel P. Fried

Joel P. Fried

Co-Chief Executive Officer


EX.99.CERT

 

CERTIFICATIONS

I, Theo A. Kolokotrones, certify that:

 

1.

I have reviewed this report on Form N-CSR of PRIMECAP Odyssey Funds;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 22, 2023      

/s/ Theo A. Kolokotrones

Theo A. Kolokotrones

Co-Chief Executive Officer


EX.99.CERT

 

CERTIFICATIONS

I, Alfred W. Mordecai, certify that:

 

1.

I have reviewed this report on Form N-CSR of PRIMECAP Odyssey Funds;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 22, 2023     

/s/ Alfred W. Mordecai

Alfred W. Mordecai

Co-Chief Executive Officer


EX.99.CERT

 

CERTIFICATIONS

I, Julietta Martikyan, certify that:

 

1.

I have reviewed this report on Form N-CSR of PRIMECAP Odyssey Funds;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: December 22, 2023     

/s/ Julietta Martikyan

Julietta Martikyan

Chief Financial Officer

EX-99.906CERT 3 d850597dex99906cert.htm EX-99.906CERT EX-99.906CERT

EX.99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the PRIMECAP Odyssey Funds does hereby certify, to such officer’s knowledge, that the report on Form N-CSR of the PRIMECAP Odyssey Funds for the year ended October 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the PRIMECAP Odyssey Funds for the stated period.

 

/s/ Joel P. Fried

Joel P. Fried

Co-Chief Executive Officer, PRIMECAP Odyssey Funds

Dated: December 22, 2023

 

/s/ Theo A. Kolokotrones

Theo A. Kolokotrones

Co-Chief Executive Officer, PRIMECAP Odyssey Funds

Dated: December 22, 2023

 

/s/ Alfred W. Mordecai

Alfred W. Mordecai

Co-Chief Executive Officer, PRIMECAP Odyssey Funds

Dated: December 22, 2023

 

/s/ Julietta Martikyan

Julietta Martikyan

Chief Financial Officer, PRIMECAP Odyssey Funds

Dated: December 22, 2023

This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by PRIMECAP Odyssey Funds for purposes of the Securities Exchange Act of 1934.    

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