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Form N-CSRS PRIMECAP Odyssey Funds For: Apr 30

July 7, 2022 1:14 PM EDT

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Table of Contents

As filed with the Securities and Exchange Commission on July 7, 2022

 

 

 

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)

 

 

Michael J. Ricks

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: April 30, 2022

 

 

 


Table of Contents

Item 1. Reports to Stockholders.

(a)


Table of Contents

Item 1. Reports to Stockholders.

SEMIANNUAL REPORT

For the Six Months Ended April 30, 2022

 

LOGO

PRIMECAP ODYSSEY STOCK    (POSKX)

PRIMECAP ODYSSEY GROWTH (POGRX)

PRIMECAP ODYSSEY AGGRESSIVE GROWTH  (POAGX)


Table of Contents
LOGO  

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

     34  

Statements of Operations

     35  

Statements of Changes in Net Assets

     36  

PRIMECAP Odyssey Stock Fund

     36  

PRIMECAP Odyssey Growth Fund

     37  

PRIMECAP Odyssey Aggressive Growth Fund

     38  

Financial Highlights

     39  

PRIMECAP Odyssey Stock Fund

     39  

PRIMECAP Odyssey Growth Fund

     40  

PRIMECAP Odyssey Aggressive Growth Fund

     41  

Notes to Financial Statements

     42  

Expense Example

     50  

Additional Information

     52  

Management

     53  

Privacy Notice

  

 

1


Table of Contents
LOGO  

Letter to Shareholders

PRIMECAP Odyssey Funds

 

Dear Fellow Shareholders,

For the six months ended April 30, 2022, the PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund produced total returns of -7.63%, -13.93%, and -22.99%, respectively. The unmanaged S&P 500 Index produced a total return of -9.65% during the period.

The domestic economy experienced robust nominal GDP growth during the period. Another COVID-19 wave surfaced, threatening the country’s ongoing reopening; the omicron variant, however, which peaked in mid-January, proved more disruptive than destructive, and ultimately loosened COVID-19’s grip on society. Savings-rich consumers increasingly returned to pre-COVID-19 activities, forcing businesses into a hiring spree. Record-high job openings outnumbered job seekers two-to-one, reflecting an unprecedented imbalance between labor demand and supply, and the unemployment rate approached its pre-pandemic low.

And yet market sentiment worsened considerably, and equities faltered. Inflation at home and war in Europe replaced COVID-19 as primary concerns. The tight labor market’s elevated wage growth trailed price increases, and measures of consumer confidence declined. Last year’s high inflation spiked further, with the Consumer Price Index (CPI) accelerating from 6.2% in October to March’s 8.5% reading, a 40-year high. This runaway inflation hastened the Federal Reserve’s dramatic hawkish pivot, featuring both aggressive rate hikes and balance sheet normalization. Meanwhile, Russia’s invasion of Ukraine not only laid bare unspeakable evil, but also aggravated global economic tensions, most obviously in the oil and gas complex.

Energy (+34%) unsurprisingly prospered in this environment, as crude oil prices climbed by more than a quarter and breached the $100 per barrel threshold for the first time since 2014. Defensive sectors, including consumer staples (+11%) and utilities (+8%), also fared well. But higher interest rates (the 10-year Treasury yield rose from 1.6% to 2.9%) and the prospect of recession weighed on both growth and cyclical stocks. Growth stocks meaningfully underperformed value stocks (the respective Russell 3000 indices declined 18% and 4%), with communication services (-28%) suffering most as fallen angels Netflix (-72%) and Meta Platforms (-38%) weighed on the sector. Several cyclical sectors also lagged the market, with consumer discretionary (-20%) tracking Amazon’s (-26%) tumble.

The Funds’ overall performance disappointed, as both the Growth Fund and Aggressive Growth Fund trailed the market. The investment landscape was especially inhospitable for growth-oriented portfolios, and the Funds’ bias towards smaller-capitalization stocks relative to the S&P 500 Index served as an additional large headwind. Indeed, adjusting for these factors, both Funds managed to outpace relevant size-specific, growth-centric indices.

Each of the Funds held an overweight position in the health care and industrials sectors, and an underweight position in the energy, real estate, consumer staples, communication services, materials, and utilities sectors. The Growth Fund was also underweight the financials, consumer discretionary, and information technology sectors; of these, the Stock Fund was overweight

 

2


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

financials while the Aggressive Growth Fund was overweight consumer discretionary and information technology.

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

PRIMECAP Odyssey Stock Fund

For the six months ended April 30, 2022, the Stock Fund’s total return of -7.63% led the S&P 500’s total return of -9.65%. Relative to the S&P 500, both sector allocation and stock selection benefited relative results.

The Fund’s sector positioning proved modestly favorable. The Stock Fund featured a sizable underweight position (3% of average assets versus a 10% benchmark weighting) in communication services, the worst-performing sector during the period (-28% benchmark return). A large overweight position in health care (23% versus 13%) similarly boosted results, as health care’s muted decline (-2% benchmark return) outpaced the market. Several headwinds, however, nearly offset these tailwinds. The Fund’s underweight position in energy (2% versus 3%) proved detrimental given that sector’s index-leading return (+34%), as did underweight positions in defensive sectors consumer staples (+11%) and utilities (+8%).

Favorable stock selection was the primary driver of outperformance during the period. Within health care, the Fund featured solid gains from key pharmaceutical holdings, most notably the Fund’s two largest positions, Eli Lilly (+16%) and AstraZeneca (+8%). Within communication services, the Fund benefited most from its limited exposure to the aforementioned Netflix (-72%) and Meta Platforms (-38%).

Selection elsewhere was mixed. The Fund’s third-largest holding, AECOM (+4%), more than offset the drag from another top holding, Siemens (-21%), in the industrials sector. Within consumer discretionary, Mattel’s (+11%) ongoing turnaround benefited results, as did limited exposure to laggard Amazon (-26%). These results more than offset a disappointing performance from Sony (-26%). In general, the Fund’s underweight position in so-called Big Tech stocks was broadly helpful during the period, but a notable exception was Apple (+6%), whose resilience weighed on relative results in the information technology sector.

 

3


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

The top 10 holdings, which collectively represented 29.6% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Stock Fund
Top 10 Holdings as of 4/30/22
   Ending % of
Total Portfolio*
 

Eli Lilly and Company

     6.0  

AstraZeneca PLC – ADR

     4.3  

AECOM

     3.4  

Microsoft Corporation

     2.9  

Wells Fargo & Company

     2.4  

Amgen Inc.

     2.3  

Siemens AG

     2.2  

Intel Corporation

     2.1  

Sony Group Corporation – ADR

     2.0  

FedEx Corporation

     2.0  

Total % of Portfolio

     29.6

 

  *

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 Growth Fund

For the six months ended April 30, 2022, the Growth Fund returned -13.93%, behind the S&P 500’s -9.65% total return but ahead of the Russell 1000 Growth Index’s total return of -17.84%. Relative to the S&P 500, unfavorable stock selection more than offset favorable sector allocation.

The Growth Fund’s sector allocation benefit resembled that of the Stock Fund. A less pronounced underweight position in communication services (5% average weighting) reduced that particular tailwind, but an even larger overweight position in health care (29%) provided a comparable offset.

Stock selection, however, was unfavorable overall, as relative performance in health care and consumer discretionary flipped negative for the Growth Fund. Within health care, the Fund again owned several outperforming pharmaceutical companies, but incremental exposure to the biotechnology industry weighed on results, most notably Nektar (-73%) and BeiGene (-55%). And within consumer discretionary, sizable stakes in Alibaba (-41%), iRobot (-39%), and CarMax (-37%) detracted from Fund performance.

 

4


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

The top 10 holdings, which collectively represented 27.2% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Growth Fund
Top 10 Holdings as of 4/30/22
   Ending % of
Total Portfolio*
 

Eli Lilly and Company

     5.0  

AECOM

     3.1  

Alphabet Inc. Class A & Class C

     3.0  

ABIOMED, Inc.

     2.5  

Raymond James Financial, Inc.

     2.4  

Splunk Inc.

     2.4  

Micron Technology, Inc.

     2.3  

Amgen Inc.

     2.2  

Biogen Inc.

     2.2  

AstraZeneca PLC – ADR

     2.1  

Total % of Portfolio

     27.2

 

  *

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 six months ended April 30, 2022, the Aggressive Growth Fund’s total return of -22.99% trailed the S&P 500’s total return of -9.65% but led the Russell Midcap Growth Index’s total return of -25.44%. Relative to the S&P 500, unfavorable stock selection was the primary driver of underperformance.

The Fund’s sector allocation was modestly worse than each of its Odyssey Fund peers, leading to a modest headwind overall. A slightly larger position – and thus reduced underweight – in communication services (6%) reduced that sector’s benefit. Meanwhile, a smaller position – and thus more pronounced underweight – in energy (1%) similarly hurt relative results.

Unfavorable stock selection was the primary culprit, however, more pronounced exposures to the Growth Fund’s sources of weakness were significant incremental headwinds. In general, the market’s rotation away from higher-multiple and smaller-capitalization growth stocks created an especially challenging environment for the Fund.

Health care selection was particularly problematic given the Aggressive Growth Fund’s outsized ownership of biotechnology stocks. BioNTech (-50%), Xencor (-37%), and Seagen (-26%) joined even larger positions in BeiGene and Nektar as significant detractors. Meanwhile, the

 

5


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Fund’s meaningful stakes in Chinese technology companies Alibaba (-41%) and Baidu (-23%) also proved punitive in consumer discretionary and communication services, respectively.

The top 10 holdings, which collectively represented 28.9% of the portfolio at the period end, are listed below:

 

   
PRIMECAP Odyssey Aggressive Growth Fund
Top 10 Holdings as of 4/30/22
   Ending % of
Total Portfolio*
 

Micron Technology, Inc.

     3.5  

Eli Lilly and Company

     3.5  

Tesla Inc.

     3.3  

Sony Group Corporation – ADR

     3.3  

ABIOMED, Inc.

     2.8  

Seagen, Inc.

     2.7  

Splunk Inc.

     2.6  

BioNTech SE – ADR

     2.5  

AECOM

     2.4  

Biogen Inc.

     2.3  

Total % of Portfolio

     28.9

 

  *

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

On the eve of COVID-19 more than two years ago, the Funds were collectively unprepared for a pandemic. Of course, the Funds hold shares in individual companies, and underlying each company’s ownership is a distinct thesis – one that contemplates a variety of macroeconomic scenarios. But some overarching portfolio themes were especially unsuited for COVID-19’s arrival.

For instance, the Funds were significantly overweight travel and transportation companies, like airlines and cruise lines. Our deep contrarian ownership of these cyclical, capital-intensive companies – however inexpensive and undervalued they may have been – proved disastrous in early 2020. As another example, while we owned technology stocks pre-pandemic, we did not own so-called Big Tech. That is, the Funds owned semiconductor stocks in abundance (among others), but we had negligible exposure to goliaths Apple and Amazon – plus underweight positions in many of their largest peers. We expected regulation and competitive disruption to undermine the inevitability of these companies’ economic empires. The pandemic instead accelerated their ascendance in the marketplace – and amplified their valuations to boot.

 

6


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Meanwhile, our reaction to the COVID-19 policy response has been surprise and skepticism. Surprise at the depth and duration of precautionary restrictions, and skepticism over the merits of unrelenting fiscal-monetary stimulus, provided in part as over-compensation for said restrictions. We had also noted unusual market complacency regarding the risk of inflation, and we viewed massive government intervention, robust economic growth, and near-zero interest rates as unsustainable. These perspectives, which informed our positioning, often kept us anchored against the pandemic’s tides – in other words, the market often moved against us.

With COVID-19’s sudden transition to endemic status, we expected a reversal in the Funds’ relative performance. Indeed, having long anticipated many of today’s developments – COVID-19’s fade, inflation’s surge, Big Tech’s slide – the Funds were well-positioned for a bounce. That bounce had not yet materialized through period-end.

But we have high conviction it will emerge. Perception often lags reality – and paradigm changes are rare. An entire generation of market actors knows just one model: low interest rates, low inflation, and a pliant Federal Reserve. Investors became undeniably (and understandably) smitten with the resultant bull market – they learned, with a “Fed put” as insurance, to just buy each dip, even amid the record-setting COVID-19 recession. Valuation for trendy stocks increasingly morphed from earnings-based to revenues-based, an eerie echo of dot-com euphoria.

Equity weakness of late suggests change is afoot. Conditions have abruptly flipped: rising interest rates, elevated inflation, and a fraught Federal Reserve. These tectonic shifts have jolted the market awake, and stocks have declined for seven weeks in a row, christening a new bear market. High-flying growth stocks have borne the brunt of the sell-off, but the risk of a potential consumer-led recession affects all companies. Fundamentals eventually matter.

To be clear, our expectation has not been a market collapse per se. We have conviction instead in the Funds’ more grounded relative positioning, as we had neglected to chase the market’s COVID-19 momentum. We also see significant opportunities in certain idiosyncratic exposures, like biotechnology and Chinese technology, following an extended period of underperformance.

Biotechnology has been an enduring Fund staple, most notably in the Growth and Aggressive Growth Funds. We subscribe to a multi-pronged view that modern health care is chronically underappreciated; that innovative companies’ novel treatments and therapies create massive incremental value; and that patient long-term ownership of these companies can absorb steep binary risks to deliver significant gains. Most recently, however, a rush of biotechnology-specific capital – private and public – created a deluge of lower-quality biotechnology companies. While the Funds have largely avoided these doomed offerings, we have not been immune from drug trial failures and other sources of asymmetric downside. And even our occasional winners have suffered from the resultant current of industry-specific pessimism. The XBI, a prominent biotechnology stock index, has more than halved since February 2021. And yet, amid this downturn, our broader thesis is unchanged, and we own many companies trading at unreasonably punitive valuations relative to their opportunity sets. This gaping mismatch between market pessimism and internal optimism implies massive built-in upside for the Funds.

 

7


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

Likewise, our stakes in large Chinese technology companies have fared poorly but are poised for outperformance. Alibaba and Baidu each declined roughly two-thirds from their peaks in late 2020 and early 2021, respectively. Alibaba, the so-called Amazon of China, lost some share in China’s competitive online marketplace, but remains the dominant player in both e-commerce and cloud services. Baidu, which more closely resembles Google, leads in search but also has powerful computing and artificial intelligence capabilities, including pole position in China’s autonomous driving race. But none of this has mattered. China’s aggressive regulatory crackdown coupled with zero-COVID-19 austerity panicked the market, trumping the long-term fundamental story. Despite their putative importance as homegrown technology heroes, both stocks now trade at single-digit price-to-earnings multiples (adjusted for cash and investments), an unthinkable scenario not long ago. We assess China’s extreme austerity as a risky and likely untenable strategy. In our opinion, when this moment passes, fundamentals should recover and multiples should heal, delivering a meaningful benefit to the Funds.

In short, the Funds started the pandemic offside and struggled throughout the COVID-19 era. Our investment approach is vulnerable to extended periods of underperformance; mistakes and misfortune sometimes conspire, and the last few years have included plenty of both. But we have high conviction much better days are ahead, and we see in the current market reckoning a potential paradigm shift under way. The Funds are well-positioned, and we are also searching for new opportunities amid the market carnage.

Sincerely,

PRIMECAP Management Company

May 20, 2022

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: 1) greater volatility; 2) political, economic, and currency risks; and 3) 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 Index 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.

 

8


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Letter to Shareholders

PRIMECAP Odyssey Funds

 

continued

 

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

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

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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LOGO  

Performance Graphs

PRIMECAP Odyssey Stock Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2011 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.

 

LOGO

 

 

     Total Return
Period Ended April 30, 2022
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Stock Fund

     -2.77%        11.38%        13.17%        10.38%  

S&P 500*

     0.21%        13.66%        13.67%        9.88%  

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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LOGO  

Performance Graphs

PRIMECAP Odyssey Growth Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2011 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.

 

LOGO

 

 

     Total Return
Period Ended April 30, 2022
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Growth Fund

     -9.04%        11.07%        13.71%        10.98%  

S&P 500*

     0.21%        13.66%        13.67%        9.88%  

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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LOGO  

Performance Graphs

PRIMECAP Odyssey Aggressive Growth Fund

 

The chart below illustrates the performance of a hypothetical $10,000 investment made on October 31, 2011 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.

 

LOGO

 

 

     Total Return
Period Ended April 30, 2022
 
     1 Year      Annualized
5 Year
     Annualized
10 Year
     Annualized
Since Inception^
 

Aggressive Growth Fund

     -20.04%        9.09%        14.49%        12.27%  

S&P 500*

     0.21%        13.66%        13.67%        9.88%  

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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LOGO  

Sector Breakdown

PRIMECAP Odyssey Funds

 

PRIMECAP Odyssey Stock Fund

 

Communication Services

     2.7%  

Consumer Discretionary

     10.7%  

Consumer Staples

     1.2%  

Energy

     2.2%  

Financials

     11.8%  

Health Care

     24.6%  

Industrials

     18.3%  

Information Technology

     21.0%  

Materials

     2.1%  

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

     5.4%  

Total

     100.0%  

PRIMECAP Odyssey Growth Fund

 

Communication Services

     5.0%  

Consumer Discretionary

     11.9%  

Consumer Staples

     0.3%  

Energy

     3.0%  

Financials

     9.0%  

Health Care

     30.1%  

Industrials

     13.7%  

Information Technology

     23.7%  

Materials

     0.5%  

Short-Term Investments and Other Assets

     2.8%  

Total

     100.0%  

The tables above list sector allocations as a percentage of each fund’s total net assets as of April 30, 2022. 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.

 

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Sector Breakdown

PRIMECAP Odyssey Funds

 

continued

 

PRIMECAP Odyssey Aggressive Growth Fund

 

Communication Services

     6.3%  

Consumer Discretionary

     14.1%  

Consumer Staples

     0.1%  

Energy

     0.9%  

Financials

     5.2%  

Health Care

     29.0%  

Industrials

     12.9%  

Information Technology

     27.8%  

Materials

     0.7%  

Real Estate

     0.2%  

Preferred Stocks (Financials)

     0.1%  

Warrants (Materials)

     0.0%  

Rights (Health Care)

     0.0%  

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

     2.7%  

Total

     100.0%  

The table above lists sector allocations as a percentage of the fund’s total net assets as of April 30, 2022. 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.

 

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Schedule of Investments

PRIMECAP Odyssey Stock Fund

April 30, 2022 (Unaudited)

 

Shares            Value  
  COMMON STOCKS – 94.6%   
Communication Services – 2.7%       
  356,030     

Activision Blizzard, Inc.

   $ 26,915,868  
  19,775     

Alphabet, Inc. – Class A (a)

     45,130,307  
  24,675     

Alphabet, Inc. – Class C (a)

     56,735,968  
  138,600     

Comcast Corp. – Class A

     5,510,736  
  75,200     

Meta Platforms, Inc. – Class A (a)

     15,075,344  
  30,000     

Nintendo Co. Ltd. – JPY

     13,691,721  
  132,180     

Walt Disney Co. (The) (a)

     14,755,254  
     

 

 

 
        177,815,198  
     

 

 

 
Consumer Discretionary – 10.7%  
  10,830     

Amazon.com, Inc. (a)

     26,919,373  
  425,170     

Bath & Body Works, Inc.

     22,487,241  
  380,100     

Brinker International, Inc. (a)

     13,809,033  
  25,700     

Burlington Stores, Inc. (a)

     5,231,492  
  139,500     

Capri Holdings Ltd. (a)

     6,654,150  
  535,200     

CarMax, Inc. (a)

     45,909,456  
  1,268,700     

Carnival Corp. (a)

     21,948,510  
  191,000     

Dollar Tree, Inc. (a)

     31,027,950  
  245,050     

eBay, Inc.

     12,722,996  
  217,800     

Leslie’s, Inc. (a)

     4,268,880  
  4,912,280     

Mattel, Inc. (a)

     119,417,527  
  82,400     

MGM Resorts International

     3,381,696  
  950,000     

Newell Brands, Inc.

     21,992,500  
  902,280     

Ross Stores, Inc.

     90,020,476  
  184,550     

Royal Caribbean Cruises Ltd. (a)

     14,345,071  
  1,535,919     

Sony Group Corp. – ADR

     132,165,830  
  230,400     

TJX Cos., Inc. (The)

     14,118,912  
  195,499     

Victoria’s Secret & Co. (a)

     9,211,913  
  548,889     

Whirlpool Corp.

     99,634,331  
     

 

 

 
        695,267,337  
     

 

 

 
Consumer Staples – 1.2%  
  220,000     

Altria Group, Inc.

     12,225,400  
  323,200     

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

     20,797,920  
  111,700     

Philip Morris International, Inc.

     11,170,000  
  237,500     

Sysco Corp.

     20,301,500  
  151,000     

Tyson Foods, Inc. – Class A

     14,067,160  
     

 

 

 
        78,561,980  
     

 

 

 

 

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

 

15


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Energy – 2.2%  
  144,400     

Cameco Corp.

   $ 3,726,964  
  262,100     

EOG Resources, Inc.

     30,602,796  
  352,900     

Hess Corp.

     36,373,403  
  170,600     

Pioneer Natural Resources Co.

     39,659,382  
  1,394,000     

Southwestern Energy Co. (a)

     10,455,000  
  190,000     

TechnipFMC PLC (a)

     1,314,800  
  922,800     

Transocean Ltd. (a)

     3,469,728  
  177,800     

Valero Energy Corp.

     19,821,144  
     

 

 

 
        145,423,217  
     

 

 

 
Financials – 11.8%  
  2,482,840     

Bank of America Corp.

     88,587,731  
  587,930     

Charles Schwab Corp. (The)

     38,997,397  
  1,230,650     

Citigroup, Inc.

     59,329,637  
  242,700     

CME Group, Inc. – Class A

     53,233,818  
  837,300     

Discover Financial Services

     94,162,758  
  13,500     

Evercore, Inc. – Class A

     1,427,625  
  904,870     

JPMorgan Chase & Co.

     108,005,283  
  591,860     

Northern Trust Corp.

     60,991,173  
  78,100     

Progressive Corp. (The)

     8,384,816  
  987,439     

Raymond James Financial, Inc.

     96,235,805  
  3,533,408     

Wells Fargo & Co.

     154,162,591  
     

 

 

 
        763,518,634  
     

 

 

 
Health Care – 24.6%  
  260,420     

Abbott Laboratories

     29,557,670  
  471,870     

Agilent Technologies, Inc.

     56,279,935  
  46,500     

Alcon, Inc.

     3,311,265  
  637,500     

Amgen, Inc.

     148,658,625  
  4,198,200     

AstraZeneca PLC – ADR

     278,760,480  
  532,970     

Biogen, Inc. (a)

     110,559,297  
  349,800     

Boston Scientific Corp. (a)

     14,730,078  
  1,716,200     

Bristol-Myers Squibb Co.

     129,178,374  
  287,670     

CVS Health Corp.

     27,653,717  
  1,906,870     

Elanco Animal Health, Inc. (a)

     48,262,880  
  1,324,513     

Eli Lilly & Co.

     386,929,983  
  27,000     

IQVIA Holdings, Inc. (a)

     5,885,730  
  340,000     

LivaNova PLC (a)

     26,064,400  
  41,590     

Medtronic PLC

     4,340,332  
  91,900     

Merck & Co., Inc.

     8,150,611  
  774,250     

Novartis AG – ADR

     68,157,227  
  257,570     

PerkinElmer, Inc.

     37,762,338  

 

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

 

16


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Health Care (continued)  
  79,631     

Roche Holding AG – CHF

   $ 29,528,294  
  117,620     

Sanofi – ADR

     6,145,645  
  262,418     

Siemens Healthineers AG – EUR

     14,031,510  
  24,700     

Stryker Corp.

     5,959,122  
  200,650     

Thermo Fisher Scientific, Inc.

     110,943,398  
  7,480     

Waters Corp. (a)

     2,266,589  
  315,200     

Zimmer Biomet Holdings, Inc.

     38,060,400  
  4,900     

ZimVie, Inc. (a)

     110,250  
     

 

 

 
        1,591,288,150  
     

 

 

 
Industrials – 18.3%  
  3,178,310     

AECOM

     224,261,554  
  454,886     

Airbus SE – EUR

     49,797,353  
  54,050     

Alaska Air Group, Inc. (a)

     2,939,780  
  2,409,360     

American Airlines Group, Inc. (a)

     45,223,687  
  34,900     

AMETEK, Inc.

     4,406,474  
  401,672     

Carrier Global Corp.

     15,371,987  
  145,293     

Caterpillar, Inc.

     30,589,988  
  332,700     

CSX Corp.

     11,424,918  
  285,600     

Curtiss-Wright Corp.

     40,815,096  
  34,090     

Deere & Co.

     12,870,680  
  684,550     

Delta Air Lines, Inc. (a)

     29,456,187  
  654,005     

FedEx Corp.

     129,976,954  
  86,010     

General Dynamics Corp.

     20,343,945  
  96,900     

GXO Logistics, Inc. (a)

     5,735,511  
  492,450     

Jacobs Engineering Group, Inc.

     68,228,948  
  133,000     

JELD-WEN Holding, Inc. (a)

     2,765,070  
  389,300     

Kirby Corp. (a)

     25,382,360  
  23,300     

L3Harris Technologies, Inc.

     5,411,658  
  226,900     

Matson, Inc.

     19,517,938  
  606,880     

Maxar Technologies, Inc.

     19,547,605  
  99,200     

Norfolk Southern Corp.

     25,581,696  
  33,581     

Otis Worldwide Corp.

     2,446,040  
  14,562     

Raytheon Technologies Corp.

     1,382,079  
  18,310     

Rockwell Automation, Inc.

     4,626,388  
  14,700     

Saia, Inc. (a)

     3,027,612  
  35,900     

Science Applications International Corp.

     2,987,957  
  1,143,662     

Siemens AG – EUR

     140,619,284  
  2,613,570     

Southwest Airlines Co. (a)

     122,105,990  
  30,400     

Union Pacific Corp.

     7,122,416  
  1,435,680     

United Airlines Holdings, Inc. (a)

     72,501,840  

 

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

 

17


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Industrials (continued)  
  173,600     

United Parcel Service, Inc. – Class B

   $ 31,244,528  
  111,200     

XPO Logistics, Inc. (a)

     5,981,448  
     

 

 

 
        1,183,694,971  
     

 

 

 
Information Technology – 21.0%  
  130,840     

Adobe, Inc. (a)

     51,806,098  
  282,610     

Analog Devices, Inc.

     43,629,332  
  651,650     

Applied Materials, Inc.

     71,909,577  
  501,600     

Cisco Systems, Inc.

     24,568,368  
  263,698     

Corning, Inc.

     9,279,533  
  254,000     

Diebold Nixdorf, Inc. (a)

     1,041,400  
  124,000     

Fidelity National Information Services, Inc.

     12,294,600  
  5,958,299     

Flex Ltd. (a)

     98,252,351  
  6,086,700     

Hewlett Packard Enterprise Co.

     93,796,047  
  1,333,050     

HP, Inc.

     48,829,621  
  3,108,950     

Intel Corp.

     135,519,130  
  90,000     

Jabil, Inc.

     5,195,700  
  159,740     

Keysight Technologies, Inc. (a)

     22,406,730  
  371,470     

KLA Corp.

     118,595,512  
  8,921,000     

L.M. Ericsson Telephone Co. – ADR

     71,011,160  
  671,840     

Microsoft Corp.

     186,449,037  
  1,006,860     

NetApp, Inc.

     73,752,495  
  32,480     

NVIDIA Corp.

     6,024,066  
  687,280     

Oracle Corp.

     50,446,352  
  188,370     

PayPal Holdings, Inc. (a)

     16,563,374  
  385,547     

QUALCOMM, Inc.

     53,857,060  
  166,170     

Teradyne, Inc.

     17,524,288  
  538,280     

Texas Instruments, Inc.

     91,642,170  
  142,400     

Visa, Inc. – Class A

     30,349,712  
  145,140     

WEX, Inc. (a)

     24,128,074  
     

 

 

 
        1,358,871,787  
     

 

 

 
Materials – 2.1%  
  244,700     

Albemarle Corp.

     47,185,501  
  232,583     

Corteva, Inc.

     13,417,713  
  200,583     

Dow, Inc.

     13,338,770  
  220,984     

DuPont de Nemours, Inc.

     14,569,475  
  501,900     

Freeport-McMoRan, Inc.

     20,352,045  
  4,457,278     

Glencore PLC – GBP

     27,464,272  
     

 

 

 
        136,327,776  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $3,205,521,402)

   $ 6,130,769,050  
     

 

 

 

 

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

 

18


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Stock Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
SHORT-TERM INVESTMENTS – 5.4%  
  348,537,594     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 0.32% (b)

   $ 348,537,594  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $348,537,594)

     348,537,594  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $3,554,058,996) – 100.0%

     6,479,306,644  
 

Liabilities in Excess of Other Assets – (0.0)%

     (1,284,530
     

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 6,478,022,114  
     

 

 

 

 

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


Table of Contents
LOGO  

Schedule of Investments

PRIMECAP Odyssey Growth Fund

April 30, 2022 (Unaudited)

 

Shares            Value  
  COMMON STOCKS – 97.2%  
Communication Services – 5.0%  
  57,820     

Alphabet, Inc. – Class A (a)

   $ 131,956,226  
  45,355     

Alphabet, Inc. – Class C (a)

     104,286,112  
  635,600     

Baidu, Inc. – ADR (a)

     78,922,452  
  957,182     

comScore, Inc. (a)

     1,933,508  
  114,300     

Electronic Arts, Inc.

     13,493,115  
  271,500     

IMAX Corp. (a)

     4,295,130  
  112,000     

Live Nation Entertainment, Inc. (a)

     11,746,560  
  75,100     

Meta Platforms, Inc. – Class A (a)

     15,055,297  
  55,000     

Nintendo Co. Ltd. – JPY

     25,101,489  
  50,000     

Take-Two Interactive Software, Inc. (a)

     5,975,500  
     

 

 

 
        392,765,389  
     

 

 

 
Consumer Discretionary – 11.9%  
  1,203,900     

Alibaba Group Holding Ltd. – ADR (a)

     116,886,651  
  12,750     

Amazon.com, Inc. (a)

     31,691,782  
  499,498     

Bath & Body Works, Inc.

     26,418,449  
  138,900     

Brinker International, Inc. (a)

     5,046,237  
  75,600     

Burlington Stores, Inc. (a)

     15,389,136  
  550,800     

Capri Holdings Ltd. (a)

     26,273,160  
  743,700     

CarMax, Inc. (a)

     63,794,586  
  1,279,346     

Carnival Corp. (a)

     22,132,686  
  1,000     

Dollar General Corp.

     237,530  
  128,700     

Dollar Tree, Inc. (a)

     20,907,315  
  32,500     

DoorDash, Inc. – Class A (a)

     2,646,475  
  155,000     

eBay, Inc.

     8,047,600  
  1,801,124     

Entain PLC – GBP (a)

     33,843,712  
  36,666     

Flutter Entertainment PLC – GBP (a)

     3,703,509  
  1,269,658     

iRobot Corp. (a)

     64,308,178  
  78,400     

Las Vegas Sands Corp. (a)

     2,777,712  
  247,900     

Leslie’s, Inc. (a)

     4,858,840  
  39,900     

Marriott International, Inc. – Class A (a)

     7,083,048  
  3,240,100     

Mattel, Inc. (a)

     78,766,831  
  95,000     

MGM Resorts International

     3,898,800  
  633,800     

Norwegian Cruise Line Holdings Ltd. (a)

     12,695,014  
  75,700     

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

     3,637,385  
  4,100     

O’Reilly Automotive, Inc. (a)

     2,486,855  
  111,400     

Ross Stores, Inc.

     11,114,378  
  575,371     

Royal Caribbean Cruises Ltd. (a)

     44,723,588  
  1,255,877     

Sony Group Corp. – ADR

     108,068,216  

 

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

 

20


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Consumer Discretionary (continued)  
  184,830     

Tesla, Inc. (a)

   $ 160,942,571  
  206,500     

TJX Cos., Inc. (The)

     12,654,320  
  166,699     

Victoria’s Secret & Co. (a)

     7,854,857  
  865,000     

Xometry, Inc. – Class A (a)

     28,389,300  
     

 

 

 
        931,278,721  
     

 

 

 
Consumer Staples – 0.3%  
  186,700     

Altria Group, Inc.

     10,374,919  
  101,400     

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

     6,525,090  
  232,900     

Grocery Outlet Holding Corp. (a)

     7,841,743  
     

 

 

 
        24,741,752  
     

 

 

 
Energy – 3.0%  
  732,900     

Coterra Energy, Inc.

     21,100,191  
  115,700     

EOG Resources, Inc.

     13,509,132  
  528,521     

Hess Corp.

     54,474,660  
  474,200     

Pioneer Natural Resources Co.

     110,237,274  
  1,941,600     

Southwestern Energy Co. (a)

     14,562,000  
  6,291,104     

Transocean Ltd. (a)

     23,654,551  
     

 

 

 
        237,537,808  
     

 

 

 
Financials – 9.0%  
  507,900     

Bank of America Corp.

     18,121,872  
  392,900     

Charles Schwab Corp. (The)

     26,061,057  
  433,000     

Citigroup, Inc.

     20,874,930  
  96,600     

CME Group, Inc. – Class A

     21,188,244  
  630,589     

Discover Financial Services

     70,916,039  
  191,800     

JPMorgan Chase & Co.

     22,893,248  
  81,130     

MarketAxess Holdings, Inc.

     21,386,679  
  1,685,552     

Morgan Stanley

     135,838,636  
  473,100     

Northern Trust Corp.

     48,752,955  
  1,908,375     

Raymond James Financial, Inc.

     185,990,227  
  100,000     

Tradeweb Markets, Inc. – Class A

     7,119,000  
  2,926,200     

Wells Fargo & Co.

     127,670,106  
     

 

 

 
        706,812,993  
     

 

 

 
Health Care – 30.1%  
  229,918     

Abbott Laboratories

     26,095,693  
  687,150     

ABIOMED, Inc. (a)

     196,923,447  
  173,300     

Agilent Technologies, Inc.

     20,669,491  
  63,060     

Alcon, Inc.

     4,490,503  
  423,800     

Alkermes PLC (a)

     12,226,630  
  743,000     

Amgen, Inc.

     173,260,170  

 

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

 

21


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Health Care (continued)  
  2,474,700     

AstraZeneca PLC – ADR

   $ 164,320,080  
  647,867     

BeiGene Ltd. – ADR (a)

     103,658,720  
  819,220     

Biogen, Inc. (a)

     169,938,997  
  1,731,966     

BioMarin Pharmaceutical, Inc. (a)

     140,895,434  
  113,600     

BioNTech SE – ADR (a)

     15,765,408  
  831,700     

Boston Scientific Corp. (a)

     35,022,887  
  274,492     

Bridgebio Pharma, Inc. (a)

     2,201,426  
  1,255,590     

Bristol-Myers Squibb Co.

     94,508,259  
  259,700     

CVS Health Corp.

     24,964,961  
  55,000     

Edwards Lifesciences Corp. (a)

     5,817,900  
  2,001,171     

Elanco Animal Health, Inc. (a)

     50,649,638  
  1,346,478     

Eli Lilly & Co.

     393,346,618  
  97,766     

Enovis Corp. (a)

     6,342,080  
  4,921,843     

Epizyme, Inc. (a)

     3,176,558  
  1,882,260     

FibroGen, Inc. (a)

     17,505,018  
  53,800     

Guardant Health, Inc. (a)

     3,319,460  
  122,110     

Illumina, Inc. (a)

     36,223,932  
  592,209     

Insulet Corp. (a)

     141,532,029  
  22,860     

IQVIA Holdings, Inc. (a)

     4,983,251  
  772,100     

LivaNova PLC (a)

     59,189,186  
  46,800     

Merck & Co., Inc.

     4,150,692  
  4,959,456     

Nektar Therapeutics (a)

     20,482,553  
  791,746     

Novartis AG – ADR

     69,697,400  
  11,690     

Omnicell, Inc. (a)

     1,276,197  
  157,700     

OraSure Technologies, Inc. (a)

     968,278  
  121,310     

PerkinElmer, Inc.

     17,785,259  
  191,800     

QIAGEN N.V. – EUR (a)

     8,845,278  
  1,250,200     

Rhythm Pharmaceuticals, Inc. (a)

     7,826,252  
  117,474     

Roche Holding AG – CHF

     43,561,010  
  933,400     

Seagen, Inc. (a)

     122,284,734  
  81,080     

Siemens Healthineers AG – EUR

     4,335,354  
  178,700     

Thermo Fisher Scientific, Inc.

     98,806,804  
  512,145     

Xencor, Inc. (a)

     12,793,382  
  316,120     

Zimmer Biomet Holdings, Inc.

     38,171,490  
     

 

 

 
        2,358,012,459  
     

 

 

 
Industrials – 13.7%  
  3,396,012     

AECOM

     239,622,607  
  318,846     

Airbus SE – EUR

     34,904,760  
  2,680,701     

American Airlines Group, Inc. (a)

     50,316,758  

 

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

 

22


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Industrials (continued)  
  60,000     

AMETEK, Inc.

   $ 7,575,600  
  99,300     

Carrier Global Corp.

     3,800,211  
  269,653     

Curtiss-Wright Corp.

     38,536,110  
  1,007,200     

Delta Air Lines, Inc. (a)

     43,339,816  
  97,765     

ESAB Corp. (a)

     4,594,955  
  218,700     

FedEx Corp.

     43,464,438  
  122,300     

General Dynamics Corp.

     28,927,619  
  66,800     

IDEX Corp.

     12,679,976  
  978,394     

Jacobs Engineering Group, Inc.

     135,556,489  
  1,404,850     

JetBlue Airways Corp. (a)

     15,467,398  
  371,401     

Lyft, Inc. – Class A (a)

     12,107,673  
  22,200     

Old Dominion Freight Line, Inc.

     6,218,664  
  17,200     

Saia, Inc. (a)

     3,542,512  
  982,691     

Siemens AG – EUR

     120,827,050  
  2,630,600     

Southwest Airlines Co. (a)

     122,901,632  
  379,400     

Textron, Inc.

     26,273,450  
  11,400     

TransDigm Group, Inc. (a)

     6,780,834  
  140,200     

Uber Technologies, Inc. (a)

     4,413,496  
  55,500     

Union Pacific Corp.

     13,003,095  
  1,932,600     

United Airlines Holdings, Inc. (a)

     97,596,300  
     

 

 

 
        1,072,451,443  
     

 

 

 
Information Technology – 23.7%  
  189,300     

Adobe, Inc. (a)

     74,953,335  
  611,000     

Altair Engineering, Inc. – Class A (a)

     33,189,520  
  331,000     

Analog Devices, Inc.

     51,099,780  
  337,400     

Applied Materials, Inc.

     37,232,090  
  61,900     

ASML Holding N.V. – ADR

     34,897,363  
  5,357,343     

BlackBerry Ltd. (a)

     30,644,002  
  7,968     

Cerence, Inc. (a)

     235,056  
  661,100     

Cisco Systems, Inc.

     32,380,678  
  51,000     

Dell Technologies, Inc. – Class C

     2,397,510  
  560,800     

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

     34,853,720  
  7,349,559     

Flex Ltd. (a)

     121,194,228  
  384,818     

FormFactor, Inc. (a)

     14,665,414  
  2,461,800     

Hewlett Packard Enterprise Co.

     37,936,338  
  689,916     

HP, Inc.

     25,271,623  
  1,360,380     

Intel Corp.

     59,298,964  
  14,400     

Intuit, Inc.

     6,030,000  
  592,400     

Jabil, Inc.

     34,199,252  
  117,720     

Keysight Technologies, Inc. (a)

     16,512,584  

 

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

 

23


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Information Technology (continued)  
  342,944     

KLA Corp.

   $ 109,488,301  
  4,289,600     

L.M. Ericsson Telephone Co. – ADR

     34,145,216  
  477,000     

MaxLinear, Inc. (a)

     22,833,990  
  2,682,640     

Micron Technology, Inc.

     182,929,222  
  579,200     

Microsoft Corp.

     160,739,584  
  877,611     

NetApp, Inc.

     64,285,006  
  818,100     

Nutanix, Inc. – Class A (a)

     20,477,043  
  117,345     

NVIDIA Corp.

     21,763,977  
  364,100     

Oracle Corp.

     26,724,940  
  50,000     

OSI Systems, Inc. (a)

     3,955,000  
  15,550     

Palo Alto Networks, Inc. (a)

     8,727,904  
  58,100     

PayPal Holdings, Inc. (a)

     5,108,733  
  339,200     

QUALCOMM, Inc.

     47,382,848  
  39,400     

Salesforce, Inc. (a)

     6,932,036  
  1,510,200     

Splunk, Inc. (a)

     184,274,604  
  1,962,299     

Stratasys Ltd. (a)

     38,048,978  
  143,600     

Teradyne, Inc.

     15,144,056  
  539,495     

Texas Instruments, Inc.

     91,849,024  
  418,600     

Trimble, Inc. (a)

     27,920,620  
  281,366     

Universal Display Corp.

     35,938,879  
  209,950     

Visa, Inc. – Class A

     44,746,643  
  23,000     

VMware, Inc. – Class A

     2,484,920  
  26,000     

Western Digital Corp. (a)

     1,379,820  
  156,390     

WEX, Inc. (a)

     25,998,274  
  346,500     

Wolfspeed, Inc. (a)

     31,777,515  
     

 

 

 
        1,862,048,590  
     

 

 

 
Materials – 0.5%  
  208,100     

Albemarle Corp.

     40,127,923  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $4,035,574,662)

   $ 7,625,777,078  
     

 

 

 
  SHORT-TERM INVESTMENTS – 2.5%   
  197,628,862     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 0.32% (b)

   $ 197,628,862  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $197,628,862)

     197,628,862  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $4,233,203,524) – 99.7%

     7,823,405,940  
 

Other Assets in Excess of Liabilities – 0.3%

     20,624,824  
     

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 7,844,030,764  
     

 

 

 

 

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

 

24


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

 

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.

 

25


Table of Contents
LOGO  

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

April 30, 2022 (Unaudited)

 

Shares            Value  
  COMMON STOCKS – 97.2%  
Communication Services – 6.3%  
  40,125     

Alphabet, Inc. – Class A (a)

   $ 91,572,874  
  40,012     

Alphabet, Inc. – Class C (a)

     92,000,792  
  1,033,200     

Baidu, Inc. – ADR (a)

     128,292,444  
  3,745,440     

comScore, Inc. (a)

     7,565,789  
  118,000     

Electronic Arts, Inc.

     13,929,900  
  747,100     

IMAX Corp. (a)

     11,819,122  
  151,625     

Live Nation Entertainment, Inc. (a)

     15,902,430  
  674,098     

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

     49,377,678  
  2,850     

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

     462,013  
  80,700     

Meta Platforms, Inc. – Class A (a)

     16,177,929  
  1,632,450     

Pinterest, Inc. – Class A (a)

     33,497,874  
  25,900     

Roblox Corp. – Class A (a)

     793,835  
  216,300     

Snap, Inc. – Class A (a)

     6,155,898  
  229,580     

T-Mobile US, Inc. (a)

     28,270,481  
  7,094,500     

WildBrain Ltd. – CAD (a)

     15,518,270  
  97,419     

ZoomInfo Technologies, Inc. (a)

     4,617,661  
     

 

 

 
        515,954,990  
     

 

 

 
Consumer Discretionary – 14.1%  
  75,000     

2U, Inc. (a)

     748,500  
  1,159,600     

Alibaba Group Holding Ltd. – ADR (a)

     112,585,564  
  17,665     

Amazon.com, Inc. (a)

     43,908,654  
  72,400     

Boot Barn Holdings, Inc. (a)

     6,520,344  
  102,300     

Burlington Stores, Inc. (a)

     20,824,188  
  874,700     

CarMax, Inc. (a)

     75,031,766  
  1,366,900     

Chegg, Inc. (a)

     33,817,106  
  13,500     

Darden Restaurants, Inc.

     1,778,355  
  350     

Dollar General Corp.

     83,135  
  283,850     

eBay, Inc.

     14,737,492  
  2,844,601     

Entain PLC – GBP (a)

     53,450,989  
  8,000     

Five Below, Inc. (a)

     1,256,800  
  22,700     

Flutter Entertainment PLC – GBP (a)

     2,292,851  
  1,715,285     

GAN Ltd. (a)

     6,398,013  
  108,100     

Gildan Activewear, Inc.

     3,662,428  
  846,100     

GrowGeneration Corp. (a)

     5,000,451  
  1,049,880     

iRobot Corp. (a)

     53,176,422  
  1,059,865     

Norwegian Cruise Line Holdings Ltd. (a)

     21,229,096  
  199,610     

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

     9,591,260  
  61,200     

Restaurant Brands International, Inc.

     3,493,908  
  66,700     

Rivian Automotive, Inc. – Class A (a)

     2,017,008  

 

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

 

26


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Consumer Discretionary (continued)  
  966,776     

Royal Caribbean Cruises Ltd. (a)

   $ 75,147,498  
  3,158,220     

Sony Group Corp. – ADR

     271,764,831  
  314,090     

Tesla, Inc. (a)

     273,497,008  
  1,047,700     

Tuesday Morning Corp. (a)

     921,976  
  29,730     

Ulta Beauty, Inc. (a)

     11,796,864  
  19,000     

Victoria’s Secret & Co. (a)

     895,280  
  1,993,950     

XPeng, Inc. – ADR (a)

     49,071,110  
     

 

 

 
        1,154,698,897  
     

 

 

 
Consumer Staples – 0.1%  
  18,300     

Calavo Growers, Inc.

     663,192  
  282,300     

Grocery Outlet Holding Corp. (a)

     9,505,041  
     

 

 

 
        10,168,233  
     

 

 

 
Energy – 0.9%  
  599,350     

Coterra Energy, Inc.

     17,255,287  
  166,000     

EOG Resources, Inc.

     19,382,160  
  171,300     

New Fortress Energy, Inc.

     6,643,014  
  8,943,882     

Transocean Ltd. (a)

     33,628,996  
     

 

 

 
        76,909,457  
     

 

 

 
Financials – 5.2%  
  192,700     

AssetMark Financial Holdings, Inc. (a)

     3,705,621  
  14,200     

Charles Schwab Corp. (The)

     941,886  
  152,471     

CME Group, Inc. – Class A

     33,442,989  
  385,173     

Discover Financial Services

     43,316,556  
  148,700     

Galaxy Digital Holdings Ltd. – CAD (a)

     1,626,307  
  76,000     

LPL Financial Holdings, Inc.

     14,278,120  
  441,180     

MarketAxess Holdings, Inc.

     116,299,460  
  1,624,914     

Morgan Stanley

     130,951,819  
  2,095,988     

NMI Holdings, Inc. – Class A (a)

     38,524,259  
  129,770     

Progressive Corp. (The)

     13,932,107  
  463,240     

Tradeweb Markets, Inc. – Class A

     32,978,056  
     

 

 

 
        429,997,180  
     

 

 

 
Health Care – 29.0%  
  2,500     

10x Genomics, Inc. – Class A (a)

     119,400  
  307,400     

Abbott Laboratories

     34,889,900  
  804,373     

ABIOMED, Inc. (a)

     230,517,214  
  374,300     

Accuray, Inc. (a)

     995,638  
  148,200     

Adaptive Biotechnologies Corp. (a)

     1,222,650  
  1,705,100     

Alkermes PLC (a)

     49,192,135  
  1,998,020     

Allogene Therapeutics, Inc. (a)

     16,683,467  

 

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

 

27


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Health Care (continued)  
  1,398,400     

Amicus Therapeutics, Inc. (a)

   $ 9,900,672  
  451,300     

Arbutus Biopharma Corp. (a)

     1,051,529  
  728,287     

BeiGene Ltd. – ADR (a)

     116,525,920  
  26,145     

Berkeley Lights, Inc. (a)

     130,071  
  903,549     

Biogen, Inc. (a)

     187,432,205  
  2,008,010     

BioMarin Pharmaceutical, Inc. (a)

     163,351,613  
  1,498,382     

BioNTech SE – ADR (a)

     207,945,454  
  423,000     

Boston Scientific Corp. (a)

     17,812,530  
  491,658     

Bridgebio Pharma, Inc. (a)

     3,943,097  
  7,439,400     

Calithera Biosciences, Inc. (a) (b)

     1,827,117  
  9,474,900     

Cerus Corp. (a) (b)

     43,774,038  
  16,800     

Charles River Laboratories International, Inc. (a)

     4,057,368  
  90,300     

Edwards Lifesciences Corp. (a)

     9,551,934  
  693,492     

Elanco Animal Health, Inc. (a)

     17,552,283  
  978,094     

Eli Lilly & Co.

     285,730,600  
  10,144,307     

Epizyme, Inc. (a) (b)

     6,547,136  
  455,600     

Exact Sciences Corp. (a)

     25,080,780  
  4,305,791     

FibroGen, Inc. (a)

     40,043,856  
  439,200     

Glaukos Corp. (a)

     20,769,768  
  101,496     

Guardant Health, Inc. (a)

     6,262,303  
  293,006     

Health Catalyst, Inc. (a)

     4,875,620  
  12,600     

Illumina, Inc. (a)

     3,737,790  
  243,400     

ImmunoGen, Inc. (a)

     1,175,622  
  587,156     

Insulet Corp. (a)

     140,324,412  
  885,150     

LivaNova PLC (a)

     67,855,599  
  228,800     

Mereo Biopharma Group PLC – ADR (a)

     141,833  
  10,514,880     

Nektar Therapeutics (a) (b)

     43,426,454  
  124,800     

NuVasive, Inc. (a)

     6,419,712  
  731,200     

OraSure Technologies, Inc. (a)

     4,489,568  
  19,500     

Penumbra, Inc. (a)

     3,364,920  
  3,682,271     

Pulmonx Corp. (a) (b)

     88,742,731  
  215,100     

QIAGEN N.V. – EUR (a)

     9,919,809  
  20,886     

Repligen Corp. (a)

     3,284,115  
  4,802,780     

Rhythm Pharmaceuticals, Inc. (a) (b)

     30,065,403  
  126,000     

Roche Holding AG – CHF

     46,722,570  
  66,700     

Sage Therapeutics, Inc. (a)

     2,102,384  
  1,650,593     

Seagen, Inc. (a)

     216,244,189  
  41,840     

Seer, Inc. – Class A (a)

     304,595  
  269,000     

Shockwave Medical, Inc. (a)

     40,653,970  
  15,800     

Sio Gene Therapies, Inc. (a)

     4,437  

 

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

 

28


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Health Care (continued)  
  4,059,332     

Standard BioTools, Inc. (a) (b)

   $ 10,757,230  
  521,010     

Turning Point Therapeutics, Inc. (a)

     15,338,534  
  3,858,580     

Wave Life Sciences Ltd. (a) (b)

     7,524,231  
  4,015,411     

Xencor, Inc. (a) (b)

     100,304,967  
  871,250     

Zentalis Pharmaceuticals, Inc. (a)

     23,105,550  
     

 

 

 
        2,373,796,923  
     

 

 

 
Industrials – 12.9%  
  2,734,520     

AECOM

     192,947,731  
  566,000     

Alaska Air Group, Inc. (a)

     30,784,740  
  25,100     

Allegiant Travel Co. (a)

     3,895,269  
  5,075,440     

American Airlines Group, Inc. (a)

     95,266,009  
  2,878,800     

Aurora Innovation, Inc. – Class A (a)

     12,263,688  
  205,100     

Axon Enterprise, Inc. (a)

     23,012,220  
  49,600     

Bloom Energy Corp. – Class A (a)

     920,576  
  41,000     

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

     652,720  
  313,960     

Curtiss-Wright Corp.

     44,868,024  
  2,443,187     

Delta Air Lines, Inc. (a)

     105,130,337  
  19,600     

FedEx Corp.

     3,895,304  
  42,400     

Frontier Group Holdings, Inc. (a)

     449,864  
  295,300     

Gibraltar Industries, Inc. (a)

     11,174,152  
  232,000     

Hawaiian Holdings, Inc. (a)

     3,934,720  
  567,700     

Hertz Global Holdings, Inc. (a)

     11,388,062  
  1,109,510     

Jacobs Engineering Group, Inc.

     153,722,610  
  5,653,125     

JetBlue Airways Corp. (a)

     62,240,906  
  1,813,700     

Li-Cycle Holdings Corp. (a)

     11,770,913  
  443,890     

Lyft, Inc. – Class A (a)

     14,470,814  
  167,500     

Masonite International Corp. (a)

     12,984,600  
  2,152,100     

NN, Inc. (a)

     6,520,863  
  13,600     

Old Dominion Freight Line, Inc.

     3,809,632  
  15,800     

Ryanair Holdings PLC – ADR (a)

     1,379,656  
  1,811,800     

Southwest Airlines Co. (a)

     84,647,296  
  269,200     

Spirit Airlines, Inc. (a)

     6,355,812  
  28,815     

Sun Country Airlines Holdings, Inc. (a)

     792,701  
  38,150     

TransDigm Group, Inc. (a)

     22,692,001  
  38,200     

TuSimple Holdings, Inc. – Class A (a)

     396,134  
  355,600     

Uber Technologies, Inc. (a)

     11,194,288  
  2,351,820     

United Airlines Holdings, Inc. (a)

     118,766,910  
  62,000     

WillScot Mobile Mini Holdings Corp. (a)

     2,176,200  
     

 

 

 
        1,054,504,752  
     

 

 

 

 

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

 

29


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Information Technology – 27.8%  
  61,900     

908 Devices, Inc. (a)

   $ 1,098,725  
  189,900     

Adobe, Inc. (a)

     75,190,905  
  116,500     

Ambarella, Inc. (a)

     9,562,320  
  109,200     

Applied Materials, Inc.

     12,050,220  
  2,896,100     

Arlo Technologies, Inc. (a)

     22,415,814  
  52,400     

ASML Holding N.V. – ADR

     29,541,548  
  31,700     

Autodesk, Inc. (a)

     6,000,176  
  1,797,470     

Axcelis Technologies, Inc. (a) (b)

     97,872,242  
  11,652,716     

BlackBerry Ltd. (a)

     66,653,536  
  54,800     

Cerence, Inc. (a)

     1,616,600  
  146,299     

CrowdStrike Holdings, Inc. – Class A (a)

     29,078,389  
  78,520     

CyberArk Software Ltd. (a)

     12,338,633  
  96,800     

Dell Technologies, Inc. – Class C

     4,550,568  
  875,441     

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

     54,408,658  
  26,350     

DocuSign, Inc. (a)

     2,134,350  
  51,890     

FARO Technologies, Inc. (a)

     1,779,308  
  8,100,170     

Flex Ltd. (a)

     133,571,803  
  13,500     

Flywire Corp. (a)

     411,885  
  976,840     

FormFactor, Inc. (a)

     37,227,372  
  237,000     

Freshworks, Inc. – Class A (a)

     4,306,290  
  28,700     

GitLab, Inc. – Class A (a)

     1,375,591  
  1,180,090     

Hewlett Packard Enterprise Co.

     18,185,187  
  467,440     

HP, Inc.

     17,122,327  
  153,000     

HubSpot, Inc. (a)

     58,052,790  
  1,128,242     

indie Semiconductor, Inc. – Class A (a)

     7,784,870  
  122,750     

Intuit, Inc.

     51,401,563  
  707,000     

Jabil, Inc.

     40,815,110  
  94,500     

Jamf Holding Corp. (a)

     2,910,600  
  91,630     

Keysight Technologies, Inc. (a)

     12,852,940  
  130,180     

Keywords Studios PLC – GBP

     3,935,225  
  390,880     

KLA Corp.

     124,792,349  
  100,000     

MACOM Technology Solutions Holdings, Inc. (a)

     5,095,000  
  182,500     

Marqeta, Inc. – Class A (a)

     1,697,250  
  335,224     

Materialise NV – ADR (a)

     5,229,494  
  2,023,210     

MaxLinear, Inc. (a)

     96,851,063  
  4,250,400     

Micron Technology, Inc.

     289,834,776  
  23,800     

MongoDB, Inc. (a)

     8,447,334  
  200     

nCino, Inc. (a)

     7,498  
  1,186,867     

NetApp, Inc.

     86,938,008  

 

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

 

30


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
Information Technology (continued)  
  1,050,303     

nLIGHT, Inc. (a)

   $ 13,811,485  
  2,125,125     

Nutanix, Inc. – Class A (a)

     53,191,879  
  263,690     

NVIDIA Corp.

     48,906,584  
  8,200     

Okta, Inc. – Class A (a)

     978,342  
  214,960     

OSI Systems, Inc. (a)

     17,003,336  
  29,860     

Palo Alto Networks, Inc. (a)

     16,759,821  
  1,347,000     

Plantronics, Inc. (a)

     53,691,420  
  361,800     

PROS Holdings, Inc. (a)

     10,105,074  
  390,383     

QUALCOMM, Inc.

     54,532,601  
  187,720     

Rapid7, Inc. (a)

     17,931,014  
  3,250     

RingCentral, Inc. – Class A (a)

     275,763  
  6,784,200     

ServiceSource International, Inc. (a) (b)

     7,394,778  
  1,753,070     

Splunk, Inc. (a)

     213,909,601  
  1,609,800     

Stratasys Ltd. (a)

     31,214,022  
  10,700     

Tenable Holdings, Inc. (a)

     590,961  
  672,590     

Trimble, Inc. (a)

     44,861,753  
  140,650     

Unity Software, Inc. (a)

     9,340,567  
  848,869     

Universal Display Corp.

     108,426,037  
  47,410     

Varonis Systems, Inc. (a)

     2,048,112  
  179,702     

VMware, Inc. – Class A

     19,415,004  
  376,830     

Western Digital Corp. (a)

     19,998,368  
  227,510     

WEX, Inc. (a)

     37,821,262  
  623,100     

Wolfspeed, Inc. (a)

     57,144,501  
  19,500     

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

     1,941,615  
     

 

 

 
        2,276,432,217  
     

 

 

 
Materials – 0.7%  
  99,550     

Albemarle Corp.

     19,196,227  
  34,500     

Ingevity Corp. (a)

     2,066,550  
  2,682,400     

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

     21,506,807  
  1,325,400     

Marrone Bio Innovations, Inc. (a)

     1,537,464  
  1,530,152     

Perimeter Solutions SA (a)

     15,546,344  
     

 

 

 
        59,853,392  
     

 

 

 
Real Estate – 0.2%  
  187,300     

EPR Properties

     9,836,996  
  53,600     

Safehold, Inc.

     2,307,480  
     

 

 

 
        12,144,476  
     

 

 

 
 

TOTAL COMMON STOCKS
(Cost $4,903,029,412)

   $ 7,964,460,517  
     

 

 

 

 

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

 

31


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

Shares            Value  
  PREFERRED STOCKS – 0.1%  
Financials – 0.1%  
  779,276     

Fannie Mae Fixed-to-Floating Rate Non-Cumulative Preferred Stock Series S, Perpetual Maturity 7.750% (a)

   $ 3,015,798  
  1,488,840     

Freddie Mac Fixed-to-Floating Rate Non-Cumulative Preferred Stock Series Z, Perpetual Maturity 7.875% (a)

     5,419,378  
     

 

 

 
        8,435,176  
     

 

 

 
 

TOTAL PREFERRED STOCKS
(Cost $12,652,109)

     8,435,176  
     

 

 

 
  WARRANTS – 0.0%  
Materials – 0.0%  
  364,100     

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

     0  
     

 

 

 
 

TOTAL WARRANTS
(Cost $3,641)

     0  
     

 

 

 
  RIGHTS – 0.0%  
Health Care – 0.0%  
  3,786,300     

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

     0  
     

 

 

 
 

TOTAL RIGHTS
(Cost $0)

     0  
     

 

 

 
  SHORT-TERM INVESTMENTS – 2.8%  
  232,219,217     

Dreyfus Treasury Securities Cash Management Fund – Institutional Shares – 0.32% (e)

   $ 232,219,217  
     

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS
(Cost $232,219,217)

     232,219,217  
     

 

 

 
 

TOTAL INVESTMENTS IN SECURITIES
(Cost $5,147,904,379) – 100.1%

     8,205,114,910  
 

Liabilities in Excess of Other Assets – (0.1)%

     (8,474,149
     

 

 

 
 

TOTAL NET ASSETS – 100.0%

   $ 8,196,640,761  
     

 

 

 

 

ADR

American Depository Receipt

CAD

Canadian Dollars

CHF

Swiss Francs

CVR

Contingent Value Rights

EUR

Euros

GBP

British Pound Sterling

 

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

 

32


Table of Contents

Schedule of Investments

PRIMECAP Odyssey Aggressive Growth Fund

 

April 30, 2022 (Unaudited) – continued

 

(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.

 

33


Table of Contents
LOGO  

Statements of Assets and Liabilities

PRIMECAP Odyssey Funds

April 30, 2022 (Unaudited)

 

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

ASSETS

     

Investments, at cost (unaffiliated)

  $ 3,554,058,996     $ 4,233,203,524     $ 4,360,361,512  
 

 

 

   

 

 

   

 

 

 

Investments, at cost (affiliated)

                787,542,867  
 

 

 

   

 

 

   

 

 

 

Investments, at value (unaffiliated)

    6,479,306,644       7,823,405,940       7,766,878,583  

Investments, at value (affiliated)

                438,236,327  

Receivable for investments sold

    1,848,333       25,114,450       3,912,712  

Receivable for dividends and interest

    9,490,773       9,083,086       2,801,446  

Receivable for fund shares sold

    3,162,550       3,661,867       3,871,979  

Prepaid expenses and other assets

    46,077       52,497       70,403  
 

 

 

   

 

 

   

 

 

 

Total assets

    6,493,854,377       7,861,317,840       8,215,771,450  
 

 

 

   

 

 

   

 

 

 
LIABILITIES      

Payable for investments purchased

    1,802,143       780,235       399,225  

Payable for fund shares repurchased

    3,958,859       4,072,290       5,497,784  

Payable to the advisor (Note 6)

    9,312,328       11,543,515       12,334,458  

Payable to custodian

    21,946       26,323       25,374  

Other accrued expenses and liabilities

    736,987       864,713       873,848  
 

 

 

   

 

 

   

 

 

 

Total liabilities

    15,832,263       17,287,076       19,130,689  
 

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 6,478,022,114     $ 7,844,030,764     $ 8,196,640,761  
 

 

 

   

 

 

   

 

 

 

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

    178,780,049       204,617,412       196,322,010  
 

 

 

   

 

 

   

 

 

 

NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE

  $ 36.23     $ 38.34     $ 41.75  
 

 

 

   

 

 

   

 

 

 
COMPONENTS OF NET ASSETS      

Paid-in capital

  $ 3,034,864,667     $ 3,637,338,995     $ 4,543,539,121  

Total distributable earnings

    3,443,157,447       4,206,691,769       3,653,101,640  
 

 

 

   

 

 

   

 

 

 

Net assets

  $ 6,478,022,114     $ 7,844,030,764     $ 8,196,640,761  
 

 

 

   

 

 

   

 

 

 

 

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

 

34


Table of Contents
LOGO  

Statements of Operations

PRIMECAP Odyssey Funds

For the Six Months Ended April 30, 2022 (Unaudited)

 

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

INVESTMENT INCOME

     

Dividends (unaffiliated)(1)

  $ 55,995,764     $ 44,702,300     $ 19,121,941  

Interest income

    85,113       52,983       73,383  
 

 

 

   

 

 

   

 

 

 

Total investment income

    56,080,877       44,755,283       19,195,324  
 

 

 

   

 

 

   

 

 

 

Expenses

     

Advisory fees

    19,867,418       24,950,411       27,379,899  

Shareholder servicing

    2,857,022       3,624,998       3,848,095  

Trustee fees

    117,211       117,211       117,211  

Custody

    68,729       82,528       77,813  

Other

    641,303       726,846       742,785  
 

 

 

   

 

 

   

 

 

 

Total expenses

    23,551,683       29,501,994       32,165,803  
 

 

 

   

 

 

   

 

 

 

Net investment income (loss)

    32,529,194       15,253,289       (12,970,479
 

 

 

   

 

 

   

 

 

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

Net realized gain (loss) on:

     

Investments (unaffiliated)

    515,045,655       646,275,889       644,851,560  

Investments (affiliated)

                (495,939

Foreign currency transactions

    28,144       (5,193     21,079  

Change in unrealized appreciation/depreciation on:

     

Investments (unaffiliated)

    (1,084,019,458     (1,984,718,080     (2,831,533,075

Investments (affiliated)

                (342,243,673

Foreign currency translations

    (371,614     (358,545     (98,433
 

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss on investments and foreign currency

    (569,317,273     (1,338,805,929     (2,529,498,481
 

 

 

   

 

 

   

 

 

 

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ (536,788,079   $ (1,323,552,640   $ (2,542,468,960
 

 

 

   

 

 

   

 

 

 

 

  (1)

Net of foreign taxes withheld of $1,733,811, $1,547,202, and $316,682, respectively.

 

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

 

35


Table of Contents
LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Stock Fund

 

    Six Months
Ended
April 30, 2022(1)
    Year Ended
October 31, 2021
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment income

  $ 32,529,194     $ 50,107,278  

Net realized gain on:

   

Investments

    515,045,655       693,227,700  

Foreign currency transactions

    28,144       109,255  

Change in unrealized appreciation/depreciation on:

   

Investments

    (1,084,019,458     1,906,515,848  

Foreign currency translations

    (371,614     (83,689
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    (536,788,079     2,649,876,392  
 

 

 

   

 

 

 
NET DISTRIBUTIONS TO SHAREHOLDERS     (663,331,689     (521,946,602
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    436,272,806       820,313,951  

Proceeds from reinvestment of distributions

    625,946,173       469,381,159  

Cost of shares repurchased

    (1,117,687,579     (1,928,638,760
 

 

 

   

 

 

 

Net decrease from capital share transactions

    (55,468,600     (638,943,650
 

 

 

   

 

 

 

Total increase (decrease) in net assets

    (1,255,588,368     1,488,986,140  
 

 

 

   

 

 

 
NET ASSETS    

Beginning of period

    7,733,610,482       6,244,624,342  
 

 

 

   

 

 

 

End of period

  $ 6,478,022,114     $ 7,733,610,482  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of period

    179,968,262       195,799,339  
 

 

 

   

 

 

 

Shares sold

    11,180,189       20,815,677  

Shares issued on reinvestment of distributions

    15,899,064       13,511,260  

Shares repurchased

    (28,267,466     (50,158,014
 

 

 

   

 

 

 

Decrease in capital shares

    (1,188,213     (15,831,077
 

 

 

   

 

 

 

Shares outstanding, end of period

    178,780,049       179,968,262  
 

 

 

   

 

 

 

 

  (1) 

Unaudited

 

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

 

36


Table of Contents
LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Growth Fund

 

    Six Months
Ended
April 30, 2022(1)
    Year Ended
October 31, 2021
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment income

  $ 15,253,289     $ 9,957,571  

Net realized gain (loss) on:

   

Investments

    646,275,889       1,333,530,262  

Foreign currency transactions

    (5,193     85,833  

Change in unrealized appreciation/depreciation on:

   

Investments

    (1,984,718,080     2,004,621,861  

Foreign currency translations

    (358,545     (96,195
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    (1,323,552,640     3,348,099,332  
 

 

 

   

 

 

 
NET DISTRIBUTIONS TO SHAREHOLDERS     (1,188,273,747     (1,087,744,161
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    433,797,024       922,066,332  

Proceeds from reinvestment of distributions

    1,137,615,421       1,047,279,976  

Cost of shares repurchased

    (1,384,082,746     (2,667,590,516
 

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

    187,329,699       (698,244,208
 

 

 

   

 

 

 

Total increase (decrease) in net assets

    (2,324,496,688     1,562,110,963  
 

 

 

   

 

 

 
NET ASSETS    

Beginning of period

    10,168,527,452       8,606,416,489  
 

 

 

   

 

 

 

End of period

  $ 7,844,030,764     $ 10,168,527,452  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of period

    200,231,866       213,490,110  
 

 

 

   

 

 

 

Shares sold

    10,047,599       19,494,793  

Shares issued on reinvestment of distributions

    26,388,667       25,066,538  

Shares repurchased

    (32,050,720     (57,819,575
 

 

 

   

 

 

 

Increase (decrease) in capital shares

    4,385,546       (13,258,244
 

 

 

   

 

 

 

Shares outstanding, end of period

    204,617,412       200,231,866  
 

 

 

   

 

 

 

 

  (1)

Unaudited

 

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

 

37


Table of Contents
LOGO  

Statements of Changes in Net Assets

PRIMECAP Odyssey Aggressive Growth Fund

 

    Six Months
Ended
April 30, 2022(1)
    Year Ended
October 31, 2021
 

INCREASE (DECREASE) IN NET ASSETS FROM:

   
OPERATIONS    

Net investment loss

  $ (12,970,479   $ (44,974,829

Net realized gain on:

   

Investments

    644,355,621       1,277,061,756  

Foreign currency transactions

    21,079       165,129  

Change in unrealized appreciation/depreciation on:

   

Investments

    (3,173,776,748     2,070,409,100  

Unfunded commitment with a SPAC

          (2,927,075

Foreign currency translations

    (98,433     (117,845
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    (2,542,468,960     3,299,616,236  
 

 

 

   

 

 

 
NET DISTRIBUTIONS TO SHAREHOLDERS     (1,124,701,183     (822,100,806
 

 

 

   

 

 

 
CAPITAL SHARE TRANSACTIONS    

Proceeds from shares sold

    477,967,901       1,003,449,519  

Proceeds from reinvestment of distributions

    1,074,932,684       780,448,114  

Cost of shares repurchased

    (1,424,241,974     (2,097,662,877

Other capital contribution

          13,817  
 

 

 

   

 

 

 

Net increase (decrease) from capital share transactions

    128,658,611       (313,751,427
 

 

 

   

 

 

 

Total increase (decrease) in net assets

    (3,538,511,532     2,163,764,003  
 

 

 

   

 

 

 
NET ASSETS    

Beginning of period

    11,735,152,293       9,571,388,290  
 

 

 

   

 

 

 

End of period

  $ 8,196,640,761     $ 11,735,152,293  
 

 

 

   

 

 

 
CHANGE IN CAPITAL SHARES    

Shares outstanding, beginning of period

    194,391,937       199,125,574  
 

 

 

   

 

 

 

Shares sold

    9,866,151       17,501,649  

Shares issued on reinvestment of distributions

    20,852,234       14,689,406  

Shares repurchased

    (28,788,312     (36,924,692
 

 

 

   

 

 

 

Increase (decrease) in capital shares

    1,930,073       (4,733,637
 

 

 

   

 

 

 

Shares outstanding, end of period

    196,322,010       194,391,937  
 

 

 

   

 

 

 

 

  (1) 

Unaudited

 

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

 

38


Table of Contents
LOGO  

Financial Highlights

PRIMECAP Odyssey Stock Fund

For a capital share outstanding throughout each period.

 

    Six Months
Ended
Apr. 30,
2022(1)
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
    Year
Ended
Oct. 31,
2018
    Year
Ended
Oct. 31,
2017
 

Net asset value, beginning of period

  $ 42.97     $ 31.89     $ 34.33     $ 31.79     $ 31.02     $ 24.84  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

           

Net investment income

    0.18 (2)      0.27 (2)      0.40 (2)      0.46       0.33       0.33  

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

    (3.16     13.57       (0.76     2.95       1.13       6.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    (2.98     13.84       (0.36     3.41       1.46       6.94  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

           

Dividends from net investment income

    (0.28     (0.48     (0.47     (0.34     (0.30     (0.31

Distributions from net realized gain

    (3.48     (2.28     (1.61     (0.53     (0.39     (0.45
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (3.76     (2.76     (2.08     (0.87     (0.69     (0.76
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 36.23     $ 42.97     $ 31.89     $ 34.33     $ 31.79     $ 31.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    (7.63 %)(3)      45.44     (1.48 %)      11.22     4.70     28.51

Ratios/supplemental data:

           

Net assets, end of period (millions)

  $ 6,478.0     $ 7,733.6     $ 6,244.6     $ 10,274.3     $ 10,157.1     $ 8,698.6  

Ratio of expenses to average net assets

    0.65 %(4)      0.65     0.65     0.65     0.64     0.65

Ratio of net investment income to average net assets

    0.90 %(4)      0.67     1.28     1.38     1.04     1.18

Portfolio turnover rate

    2 %(3)      6     8     6     5     6

 

  (1) 

Unaudited

  (2) 

Calculated using the average shares method.

  (3) 

Not Annualized

  (4) 

Annualized

 

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

 

39


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LOGO  

Financial Highlights

PRIMECAP Odyssey Growth Fund

For a capital share outstanding throughout each period.

 

    Six Months
Ended
Apr. 30,
2022(1)
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
    Year
Ended
Oct. 31,
2018
    Year
Ended
Oct. 31,
2017
 

Net asset value, beginning of period

  $ 50.78     $ 40.31     $ 39.68     $ 38.43     $ 35.64     $ 27.90  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from investment operations:

           

Net investment income

    0.07 (2)      0.05 (2)      0.16 (2)      0.22       0.10       0.12  

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

    (6.48     15.72       2.57       1.88       3.26       8.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    (6.41     15.77       2.73       2.10       3.36       8.74  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

           

Dividends from net investment income

    (0.05     (0.17     (0.20     (0.12     (0.11     (0.14

Distributions from net realized gain

    (5.98     (5.13     (1.90     (0.73     (0.46     (0.86
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (6.03     (5.30     (2.10     (0.85     (0.57     (1.00
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 38.34     $ 50.78     $ 40.31     $ 39.68     $ 38.43     $ 35.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    (13.93 %)(3)      41.97     6.83     5.75     9.48     32.12

Ratios/supplemental data:

           

Net assets, end of period (millions)

  $ 7,844.0     $ 10,168.5     $ 8,606.4     $ 12,365.6     $ 13,144.9     $ 9,701.5  

Ratio of expenses to average net assets

    0.65 %(4)      0.65     0.65     0.64     0.64     0.66

Ratio of net investment income to average net assets

    0.34 %(4)      0.10     0.42     0.53     0.26     0.39

Portfolio turnover rate

    2 %(3)      7     9     6     4     5

 

  (1) 

Unaudited

  (2) 

Calculated using the average shares method.

  (3) 

Not Annualized

  (4) 

Annualized

 

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

 

40


Table of Contents
LOGO  

Financial Highlights

PRIMECAP Odyssey Aggressive Growth Fund

For a capital share outstanding throughout each period.

 

    Six Months
Ended
Apr. 30,
2022(1)
    Year
Ended
Oct. 31,
2021
    Year
Ended
Oct. 31,
2020
    Year
Ended
Oct. 31,
2019
    Year
Ended
Oct. 31,
2018
    Year
Ended
Oct. 31,
2017
 

Net asset value, beginning of period

  $ 60.37     $ 48.07     $ 43.46     $ 44.71     $ 41.41     $ 33.78  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from investment operations:

           

Net investment income (loss)

    (0.07 )(2)      (0.22 )(2)      (0.10 )(2)      0.03       0.00 (3)      (0.03

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

    (12.70     16.73       7.10       1.72       3.68       10.44  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment operations

    (12.77     16.51       7.00       1.75       3.68       10.41  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less:

           

Dividends from net investment income

                      (0.03            

Distributions from net realized gain

    (5.85     (4.21     (2.39     (2.97     (0.38     (2.78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (5.85     (4.21     (2.39     (3.00     (0.38     (2.78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 41.75     $ 60.37     $ 48.07     $ 43.46     $ 44.71     $ 41.41  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total return

    (22.99 %)(4)      35.53     16.52     4.71     8.90     32.59

Ratios/supplemental data:

           

Net assets, end of period (millions)

  $ 8,196.6     $ 11,735.2     $ 9,571.4     $ 9,851.4     $ 10,245.3     $ 8,879.5  

Ratio of expenses to average net assets

    0.64 %(5)      0.64     0.64     0.63     0.63     0.64

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

    (0.26 %)(5)      (0.39 %)      (0.23 %)      0.01     (0.19 %)      (0.07 %) 

Portfolio turnover rate

    2 %(4)      9     17     7     12     9

 

  (1) 

Unaudited

  (2) 

Calculated using the average shares method.

  (3) 

Less than one cent per share.

  (4) 

Not Annualized

  (5) 

Annualized

 

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

 

41


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LOGO  

Notes to Financial Statements

PRIMECAP Odyssey Funds

For the Six Months Ended April 30, 2022 (Unaudited)

 

(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. The PRIMECAP Odyssey Aggressive Growth Fund is closed to most new investors.

(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. In determining fair value, the Funds take into account all 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

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

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.

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

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

expense in the Statement of Operations. During the six months ended April 30, 2022, the Funds did not incur any interest or penalties. As of April 30, 2022, open tax years include the tax years ended October 31, 2018 through October 31, 2021. 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.

 

  I.

Recent Accounting Pronouncements

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. The Funds currently do not invest in derivatives.

In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds will be required to comply with the rules by September 8, 2022. Management is currently assessing the potential impact of the new rules on the Funds’ financial statements.

(3)  Investment Transactions

The cost of purchases and the proceeds from sales of securities, excluding short-term investments, for the six months ended April 30, 2022 were as follows:

 

Fund

  Purchases      Sales  

Stock Fund

  $ 145,465,725      $ 944,254,788  

Growth Fund

  $ 190,380,018      $ 1,164,181,648  

Aggressive Growth Fund

  $ 188,636,384      $ 1,145,794,991  

(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.

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

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).

 

The following table provides the fair value measurements of applicable Fund assets by level within the fair value hierarchy for each Fund as of April 30, 2022. 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)

  $ 5,855,636,616     $ 275,132,434     $     $ 6,130,769,050  
Fund  

Short-Term Investments

    348,537,594                   348,537,594  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 6,204,174,210     $ 275,132,434     $     $ 6,479,306,644  
   

 

 

   

 

 

   

 

 

   

 

 

 
Growth  

Common Stocks(1)

  $ 7,350,654,916     $ 275,122,162     $     $ 7,625,777,078  
Fund  

Short-Term Investments

    197,628,862                   197,628,862  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 7,548,283,778     $ 275,122,162     $     $ 7,823,405,940  
   

 

 

   

 

 

   

 

 

   

 

 

 
Aggressive  

Common Stocks(1)

  $ 7,852,074,298     $ 112,386,219     $     $ 7,964,460,517  
Growth  

Preferred Stocks(2)

    8,435,176                   8,435,176  
Fund  

Warrants(3)

                0       0  
 

Rights(4)

                0       0  
 

Short-Term Investments

    232,219,217                   232,219,217  
   

 

 

   

 

 

   

 

 

   

 

 

 
 

Total Investments in Securities

  $ 8,092,728,691     $ 112,386,219     $ 0     $ 8,205,114,910  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1) 

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

  (2) 

Financials

  (3) 

Materials

  (4)

Health Care

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

(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, 2021, 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)

  $ 3,749,317,812     $ 4,641,572,227     $ 5,555,147,115  
 

 

 

   

 

 

   

 

 

 

Gross tax unrealized appreciation

    4,170,483,431       5,909,452,705       7,058,885,207  

Gross tax unrealized depreciation

    (183,587,219     (378,440,192     (856,161,956
 

 

 

   

 

 

   

 

 

 

Net tax unrealized appreciation

    3,986,896,212       5,531,012,513       6,202,723,251  
 

 

 

   

 

 

   

 

 

 

Undistributed ordinary income

    49,799,139       34,338,381        

Undistributed long-term capital gain

    606,581,864       1,153,167,262       1,123,706,680  
 

 

 

   

 

 

   

 

 

 

Total distributable earnings

    656,381,003       1,187,505,643       1,123,706,680  
 

 

 

   

 

 

   

 

 

 

Other accumulated gain (loss)

                (6,158,148
 

 

 

   

 

 

   

 

 

 

Total accumulated gain

  $ 4,643,277,215     $ 6,718,518,156     $ 7,320,271,783  
 

 

 

   

 

 

   

 

 

 

 

  (1) 

At October 31, 2021 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.

Tax components of dividends paid during the six months ended April 30, 2022 and the year ended October 31, 2021 were as follows:

 

    April 30, 2022     October 31, 2021  
    Ordinary
Income
Distributions
    Long-Term
Capital Gain
Distributions
    Ordinary
Income
Distributions
     Long-Term
Capital Gain
Distributions
 

Stock Fund

  $ 56,748,200     $ 606,583,489     $ 91,207,885      $ 430,738,717  

Growth Fund

  $ 35,104,520     $ 1,153,169,227     $ 35,746,054      $ 1,051,998,107  

Aggressive Growth Fund

  $     $ 1,124,701,183     $      $ 822,100,806  

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, 2021.

(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

 

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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – continued

 

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 six months ended April 30, 2022, each Fund paid the Investment Advisor at an effective annual rate of 0.55% of its respective average net assets.

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 Aggressive Growth Fund

 

          Current Period Transactions        

Common Stock

  Market
Value at
October 31,
2021
    Purchases
at Cost
    Proceeds
from
Securities
Sold
    Dividend
Income
    Realized
Gain
(Loss)
    Change in
Unrealized
Gain
(Loss)
    Market
Value at
April 30,
2022
 

Axcelis Technologies, Inc.

  $ 112,881,150     $     $ 17,062,024     $     $ 14,745,656     $ (12,692,540   $ 97,872,242  

Calithera Biosciences, Inc.

    14,261,542       56,740                         (12,491,165     1,827,117  

Cerus Corp.

    65,404,680             2,604,657             212,707       (19,238,692     43,774,038  

Epizyme, Inc.

    41,220,089       859,604       650,115             (5,842,221     (29,040,221     6,547,136  

Nektar Therapeutics

    168,252,957             7,136,711             (1,670,733     (116,019,059     43,426,454  

NN, Inc.(1)

    13,238,510             1,942,205             (7,109,023     2,333,581       N/A  

Pulmonx Corp.

    98,058,947       40,018,534                         (49,334,750     88,742,731  

Rhythm Pharmaceuticals, Inc.

    55,174,106       1,083,565       897,492             (2,138,876     (23,155,900     30,065,403  

ServiceSource International, Inc.

    8,838,960             14,724             (108,351     (1,321,107     7,394,778  

Standard BioTools, Inc.(2)

    21,584,845             489,206             (1,802,643     (8,535,766     10,757,230  

Wave Life Sciences Ltd.

    17,762,290       62,348       83,153             (581,883     (9,635,371     7,524,231  

Xencor, Inc.

    168,988,492       87,744       9,458,014             3,799,428       (63,112,683     100,304,967  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 785,666,568     $ 42,168,535     $ 40,338,301     $     $ (495,939   $ (342,243,673   $ 438,236,327  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1) 

No longer an affiliate as of April 30, 2022.

  (2) 

Formerly Fluidigm Corp. Name change effective April 6, 2022.

 

48


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Notes to Financial Statements

PRIMECAP Odyssey Funds

 

For the Six Months Ended April 30, 2022 (Unaudited) – 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.

 

49


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LOGO  

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 November 1, 2021 through April 30, 2022.

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.

 

50


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Expense Example

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

     Beginning
Account
Value
(11/1/21)
    Ending
Account
Value
(4/30/22)
    Expenses Paid
During Period(1)
(11/1/21 to
4/30/22)
    Expense Ratio
During Period(1)
(11/1/21 to
4/30/22)
 

PRIMECAP Odyssey Stock Fund

 

       

Actual Performance

  $ 1,000.00     $ 923.70     $ 3.10       0.65%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.57     $ 3.26       0.65%  

PRIMECAP Odyssey Growth Fund

 

       

Actual Performance

  $ 1,000.00     $ 860.70     $ 3.00       0.65%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.57     $ 3.26       0.65%  

PRIMECAP Odyssey Aggressive Growth Fund

 

       

Actual Performance

  $ 1,000.00     $ 770.10     $ 2.81       0.64%  

Hypothetical Performance (5% return before expenses)

  $ 1,000.00     $ 1,021.62     $ 3.21       0.64%  

 

  (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 (181), then divided by the number of days in the fiscal year (365) to reflect the one-half year period.

 

51


Table of Contents
LOGO  

Additional Information

PRIMECAP Odyssey Funds

(Unaudited)

 

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.

Funds’ Liquidity Risk Management Program

The Funds have adopted and implemented a written liquidity risk management program (the “Program”) as required by Rule 22e-4 under the Investment Company Act. The Program is designed to assess and manage each Fund’s liquidity risk, taking into consideration the Fund’s investment strategy and the liquidity of its portfolio investments during normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources. The Funds’ Board of Trustees approved the appointment of PRIMECAP as the Funds’ liquidity risk management program administrator, which is responsible for the program’s administration and oversight and for reporting to the Board on at least an annual basis regarding the program’s operation and effectiveness. PRIMECAP has formed a Liquidity Risk Management Committee (the “LRMC”) to monitor and implement the Program for each Fund. The LRMC consists of representatives from PRIMECAP’s operations, compliance and trading departments. The Trust’s CCO also participates in LRMC Meetings.

At the Funds’ Board Meeting in March 2022, the LRMC presented its annual assessment of the Program using data collected through January 31, 2022. In addition, the Board met with and received a presentation by representatives of the Funds’ liquidity data provider regarding the methodologies it uses to classify the liquidity of the Funds’ portfolio holdings. The purpose of the annual assessment of the Program was to assess the effectiveness of the Program’s operations and evaluate each Fund’s liquidity risk profile within the framework of the Program. With respect to each Fund, the report concluded that (i) the Fund should be able to meet reasonably anticipated shareholder redemptions, given the high level of highly liquid investments held by the Fund; (ii) the data received from the Fund’s liquidity data provider is credible and provides the data necessary to assess the Fund’s liquidity risk; (iii) the Program is reasonably designed to assess and manage the Fund’s liquidity risk; and (iv) the Program appears to be operating effectively.

 

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LOGO  

Management

PRIMECAP Odyssey Funds

(Unaudited)

 

Portfolio Managers

PRIMECAP Management Company has five portfolio managers who together have more than 150 years of investment experience. The portfolio managers primarily responsible for overseeing the Funds’ investments are:

 

Name   Years of Experience  

Theo A. Kolokotrones

    52  

Joel P. Fried

    37  

Alfred W. Mordecai

    25  

M. Mohsin Ansari

    22  

James Marchetti

    17  

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: 76

  Co-Chief Executive Officer   Indefinite;
Since 09/04
 

Chairman, Director, and Portfolio Manager

PRIMECAP Management Company

Joel P. Fried

Age: 60

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

President, Director, and Portfolio Manager

PRIMECAP Management Company

 

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Table of Contents

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: 54

  Co-Chief Executive Officer   Indefinite;
Since 10/12
 

Vice Chairman, Director, and Portfolio Manager

PRIMECAP Management Company

Michael J. Ricks

Age: 44

  Chief Financial Officer, Secretary, Chief Administrative Officer   Indefinite;
Since 03/11
  Director of Fund Administration PRIMECAP Management Company; Chief Compliance Officer, PRIMECAP Odyssey Funds; Chief Compliance Officer PRIMECAP Management Company March 2019-March 2020

Jennifer Ottosen

Age: 62

  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; CCO & General Counsel, GW Capital, Inc.

“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

Benjamin F. Hammon

Age: 86

  Chairman of the Board and Trustee   Indefinite;
Since 09/04
  Retired; Private investor   3   None

Wayne H. Smith

Age: 80

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

Joseph G. Uzelac

Age: 77

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

Elizabeth D. Obershaw

Age: 62

  Trustee   Indefinite;
Since 06/08
  Retired; Formerly, Managing Director, Horsley Bridge Partners, an investment advisor (2007-2021)   3   None

J. Blane Grinstead

Age: 67

  Trustee   Indefinite;
Since 03/19
  Retired; Private investor   3   Orenda, Inc.,
a renewable
energy
technology
company
(May 2020 –
Present)

Michael Glazer

Age: 81

  Trustee   Indefinite;
Since 10/19
  Retired; Formerly, Partner and Senior Counsel, Morgan, Lewis & Bockius LLP   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.

 

54


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Management

PRIMECAP Odyssey Funds

 

(Unaudited) – continued

 

“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: 60

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

Mr. Fried is an “interested person” of the Trust, as defined by the 1940 Act, because of his employment with PRIMECAP Management Company, the investment advisor to the Trust.

 

55


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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.


Table of Contents

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, CA 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.


Table of Contents
(b)

Not applicable.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

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 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.


Table of Contents

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. Filed herewith.

(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.


Table of Contents

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  

July 1, 2022

By  

/s/ Theo A. Kolokotrones

  Theo A. Kolokotrones, Co-Chief Executive Officer
Date