Balanced Fund - ADP · 2017-04-24 · TO OUR SHAREHOLDERS The Dodge & Cox Balanced Fund had a total...

D O D G E & C O X F U N D S®

2015

Annual ReportDecember 31, 2015

Balanced FundE S T A B L I S H E D 1 9 3 1

T I C K E R : D O D B X

12/15 BF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox Balanced Fund had a total return of –2.9% for theyear ending December 31, 2015, compared to 1.3% for the CombinedIndex(a) (a 60/40 blend of stocks and fixed income securities).

MARKET COMMENTARY

U.S. equity markets were volatile in 2015: after a significant selloffin August and September, the S&P 500 rebounded during thefourth quarter to finish the year up just over 1%. Global oil pricesdeclined 35% during the year, which aided U.S. householdpurchasing power and hindered the profitability of oil and gascompanies. Consumer Discretionary was the strongest sector (up10%) of the S&P 500, while Energy was the worst-performingsector (down 21%).

In the United States, economic activity expanded at amoderate pace: household spending and business investmentincreased, and the housing market strengthened. Labor marketconditions continued to improve, with solid job gains and reducedunemployment. Growth was tempered by the stronger U.S. dollarand weaker demand for U.S. exports. In December, the U.S.Federal Reserve (Fed) raised its target federal funds rate for the firsttime in nine years. At that time, Fed Chair Janet Yellen reiteratedthe Fed’s intent to normalize monetary policy gradually; the timingand size of future adjustments will be based on economicconditions in relation to the Fed’s goals of maximum employmentand 2% inflation.

Rising interest rates and wider credit yield premiums(b) resultedin a small positive return for the U.S. bond market in 2015. Some ofthe prominent factors affecting bond prices included changingexpectations regarding Fed policy, diverging global economicconditions and monetary policy, and concerns about the effect ofChina’s decelerating economy. Investment-grade corporate bondsreturned –0.7%(c) for 2015, underperforming comparable-duration(d)

Treasuries by 1.6 percentage points in the sector’s poorest relativeresult since 2011. Agency-guaranteed(e) mortgage-backed securities(MBS) returned 1.5% for the year, roughly in line with comparable-duration Treasuries.

INVESTMENT STRATEGY

We continue to set the Fund’s asset allocation based on our long-term outlook for the Fund’s common stock, preferred stock, andfixed income holdings. We increased the allocation to preferredstock by 2.3 percentage points during the year due to attractivevaluations and decreased our common stock and fixed incomeweightings by 0.8 percentage points and 1.6 percentage points,respectively.

Equity StrategyAs a value-oriented manager, 2015 was a challenging year forabsolute and relative performance. Across equities, value stocks (thelower valuation portion of the market) underperformed growth stocks(the higher valuation portion of the market) by one of the widestspreads since the global financial crisis. The equity portfolio of theFund was significantly affected by this performance divergence. Manyof the S&P 500’s higher-valuation growth companies, not held in the

equity portfolio, outperformed significantly. In addition, someindividual holdings (e.g., HP Inc.(f), Time Warner, Wal-Mart)significantly detracted from results for the year, and the portfolio’sEnergy holdings were negatively impacted by falling oil prices.

We continue to be optimistic about the long-term outlook forthe equity portfolio. Our value-oriented approach has led us toinvest in companies where we believe the long-term potential isnot reflected in the current valuation. Two examples of suchcompanies—American Express and Hewlett Packard Enterprise—are discussed below.(g)

American ExpressAmerican Express—the largest new purchase in the equity portfolioduring 2015—provides charge and credit card products and travel-related services to consumers and businesses worldwide. Thecompany is the number one credit/charge card issuer and merchantacquirer in the United States measured by billed business, and itsnetwork is the second largest after Visa. Historically, AmericanExpress has generated attractive returns due to its vertical integrationand strong value proposition for high-spending customers.

In 2015, American Express’ stock price declined 24% due toconcerns that the company’s business model is under pressure: CostcoU.S. and JetBlue terminated their exclusive relationships with thecard company and the Department of Justice questioned AmericanExpress’ ability to enforce rules prohibiting merchants from steeringcustomers to other credit cards. As a result, American Express’valuation relative to the market is at a historically low level (13 timesforward estimated earnings(h)). We initiated a position in thecompany because we believe these near-term concerns have obscureda long-term investment opportunity. The company has an attractivebusiness model that produces high returns on capital by encouragingmore affluent and creditworthy customers to use the company’s creditand charge cards. American Express’ highly perceived rewardsprogram, customer service, and strong brand recognition help attractand retain wealthier customers. The company should benefit from acontinued industry shift from paper to plastic payments and growth inits third-party issued cards business. We believe American Expresswill be able to maintain its strong return on equity and improveprofitability in the long run. On December 31, American Express wasa 1.4% position in the equity portfolio.

Hewlett Packard EnterpriseAfter providing strong returns in 2013 and 2014, Hewlett-Packardwas the portfolio’s largest detractor from results during 2015.Hewlett-Packard recently split into two entities—Hewlett PackardEnterprise and HP Inc.—which should result in greater focus andflexibility for each company to achieve its strategic goals. To assesssecular challenges and evaluate the risks and opportunities of eachstand-alone business, we met numerous times with theirmanagement teams and competitors and spoke with industryconsultants. As a result, we added to the portfolio’s positions inboth companies. On December 31, Hewlett Packard Enterprise wasa 2.4% position and HP Inc. was a 1.8% position in the equityportfolio.

P A G E 2 ▪ D O D G E & C O X B A L A N C E D F U N D

Hewlett Packard Enterprise, one of the largest vendors ininformation technology (IT), consists of the enterprise technologyinfrastructure, software, and services segments of the old Hewlett-Packard. We acknowledge the company faces headwinds: the shiftto the cloud has negatively impacted all on-premise IT vendors,continued public cloud adoption will likely erode the company’smarket share, and competition is keen. Despite these risks, webelieve Hewlett Packard Enterprise is an attractive investment dueto its strong market positions across its portfolio (e.g., top providerof servers, number two position in IT services), scale advantages,and opportunities to improve its margin structure. Meg Whitman—the CEO of Hewlett Packard Enterprise—has overseen soundacquisitions (e.g., 3Par), new product launches, and cost reductionprograms during her tenures at Hewlett-Packard and eBay.Management is actively cutting costs and retooling its product/service offerings to improve the company’s competitiveness.Margins in the Enterprise Services segment should expand as thecompany optimizes its contract mix and delivery models. Thecompany trades at a compelling valuation (eight times forwardestimated earnings), which is among the lowest in the S&P 500.

Fixed Income StrategyWe increased the fixed income portfolio weighting in creditinvestments to 55% in 2015 due to wider credit premiums andreduced our weighting in Treasuries to 8%. Most of the higherallocation to credit occurred in corporate bonds where theweighting rose to 46% from 44% at the end of 2014. A 36%allocation to structured products—Agency-guaranteed MBS (at33%) and more traditional, AAA-rated asset-backed securities(3%)—rounds out the fixed income portfolio’s non-U.S. Treasurysector exposures.

Most of the increase in the credit position occurred in thethird quarter, in part due to high levels of new issuance inconnection with M&A financing. These transactions generallyresulted in higher leverage and more attractive entry points forinvestors due to wider credit premiums at new issue. Much of therecent increase in investment-grade corporate leverage has beenconcentrated in highly-rated issuers engaging in strategictransactions that build scale and are expected to result inmeaningful synergies. Examples of new or growing positions in theportfolio during 2015 related to strategic actions by corporateissuers included Allergan, Charter Communications, HewlettPackard Enterprise, and Imperial Tobacco Group.

We have also found opportunities to invest in market sectorsexperiencing heightened volatility. In 2015, these segments wereprimarily the commodities sectors and the emerging markets, withthe hardest-hit issuers exposed to both. Our analysis has focused onissuers whose securities appear undervalued relative to creditfundamentals, and has included in-depth assessments of the valueof an issuer’s assets over a market cycle, as well as the issuer’sability to survive a prolonged period of commodity price weakness.The result of this analysis has been new or increased exposures toBHP Billiton, Cemex, Codelco, Kinder Morgan, Teck Resources,and TransCanada. We have also maintained the Fund’s positionsin Petrobras, Rio Oil Finance Trust, and Pemex (all of which

underperformed substantially in 2015), based in part on potentialdownside protection provided by strong government relationshipsand other sources of financial flexibility.

We continue to maintain a substantial position insubordinated securities issued by large U.S. and UK banks. 2015presented opportunities to broaden these investments to includeindustrial hybrids, which are subordinated securities that are givenpartial equity treatment by the rating agencies. Examples includehybrid securities issued by TransCanada, a midstream energycompany whose stability is supported by the long-term contractualnature of its business, and BHP Billiton, the world’s largest miningcompany with a strong balance sheet and attractive cost positionsin its operations.

We remain constructive on the Fund’s credit holdings, whichgenerally are diversified across market sectors, trade at attractiveprices, and maintain financial flexibility to weather the currentchallenged environment. While we recognize that recent increasesin corporate leverage and shareholder remuneration could result inweaker credit profiles, we believe that valuations provide adequatecompensation for the current risks.

Turning to the portfolio’s Agency MBS, currently a 33%weighting, we shifted both the weighting and the mix ofunderlying holdings throughout the year in response to changingvaluations. We likewise reduced the portfolio’s holdings of shorter-duration AAA-rated ABS to purchase relatively more attractivecorporate bonds. We continue to view the portfolio’s MBSfavorably in terms of their ability to generate regular income,provide an important source of liquidity, and add an element ofdefensiveness in a volatile market environment for credit markets.

With respect to interest rate risk, we believe it is prudent tomitigate the effect of price declines associated with rising interestrates through a shorter portfolio duration (roughly 70% of that ofthe Barclays U.S. Agg). We see a clear disconnect between theslow pace of rate increases implied by current U.S. Treasuryvaluations and the faster pace indicated by Fed expectations,particularly in the context of a modestly expanding economy(more than 2% growth is expected over the next several years) andan inflation rate likely to rise as energy and import prices increase.It is our view that interest rates will rise more quickly than thelevels implied by the market’s very modest expectations.

IN CLOSING

On December 31, the Fund’s equity portfolio of 63 companiestraded at 13.8 times forward estimated earnings, a significantdiscount to the S&P 500 (17.4 times forward estimated earnings).We remain confident in the prospects for the equity portfolio overour three- to five-year investment horizon and believe it ispositioned to benefit from long-term global growth opportunities.The fixed income portfolio, with its defensive duration posture andhigher yield than the Barclays U.S. Agg, is positioned to soften theeffects of increases in interest rates that could reduce fixed incomeasset values.

Our experienced and stable team has weathered past periodsof market turbulence by remaining steadfast in our investmentphilosophy and process. Our approach—constructing a diversified

D O D G E & C O X B A L A N C E D F U N D ▪ P A G E 3

portfolio through in-depth, independent research, a three- to five-year investment horizon, and a focus on valuation relative tounderlying fundamentals—continues to guide us through thisperiod as well. We remain confident that our enduring value-oriented approach will benefit the Fund in the years ahead.

Thank you for your continued confidence in our firm. Asalways, we welcome your comments and questions.

For the Board of Trustees,

Charles F. Pohl,Chairman

Dana M. Emery,President

January 29, 2016

(a) The Combined Index reflects an unmanaged portfolio (rebalanced monthly)of 60% of the S&P 500 Index, which is a market capitalization-weightedindex of 500 large capitalization stocks commonly used to represent the U.S.equity market, and 40% of the Barclays U.S. Aggregate Bond Index (BarclaysU.S. Agg), which is a widely recognized, unmanaged index of U.S. dollar-denominated, investment-grade, taxable fixed income securities.

(b) Yield premiums are one way to measure a security’s valuation. Narrowingyield premiums result in a higher valuation. Widening yield premiums resultin a lower valuation.

(c) Sector returns as calculated and reported by Barclays.(d) Duration is a measure of a bond’s (or a bond portfolio’s) price sensitivity to

changes in interest rates.(e) The U.S. Government does not guarantee the Fund’s shares, yield, or net

asset value. The agency guarantee (by, for example, Ginnie Mae, FannieMae, or Freddie Mac) does not eliminate market risk.

(f) After Hewlett-Packard Co. split into two companies, HP Inc. retained theHPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett-Packard Co.’s performance through October 2015.

(g) The use of specific examples does not imply that they are more attractiveinvestments than the Fund’s other holdings.

(h) Unless otherwise specified, all weightings and characteristics are as ofDecember 31, 2015.


ANNUAL PERFORMANCE REVIEWThe Fund underperformed the Combined Index by 4.2percentage points in 2015. The Fund’s higher weighting inequities had a negative impact on results. Preferred equitieswere especially strong and contributed meaningfully.

Equity Portfol io▪ The portfolio’s holdings in the Consumer Discretionary

sector (down 6% compared to up 10% for the S&P 500sector) hindered performance. Media holdings Twenty-FirstCentury Fox (down 29%) and Time Warner (down 23%)were particularly weak.

▪ Wal-Mart, the portfolio’s only holding in the ConsumerStaples sector (down 27% compared to up 7% for the S&P500 sector), hurt returns.

▪ The portfolio’s holdings in the Information Technologysector (flat compared to up 6% for the S&P 500 sector)detracted from results. HP Inc. (down 37%) and NetApp(down 35%) performed poorly.

▪ The portfolio’s average overweight position (5% versus 3%)and holdings in the Health Care Providers & Servicesindustry (up 18% compared to up 12% for the S&P 500industry) helped returns. Cigna (up 42%) and UnitedHealthGroup (up 18%) were particularly strong.

Fixed Income Portfol io▪ Certain emerging market-related credit holdings underperformed

for the year, including Pemex, Petrobras, and Rio Oil FinanceTrust.

▪ The portfolio’s overweight to the Industrial sub-sector (27%versus 14% for the Barclays U.S. Agg) and underweight toU.S. Treasuries (9% versus 36% for the Barclays U.S. Agg)detracted from relative returns.

▪ Corporate security selection was slightly negative as anumber of industrial issuers performed poorly.

▪ The portfolio’s shorter relative duration (approximately 72%of the Barclays U.S. Agg’s duration) added to relativereturns.

Unless otherwise noted, figures cited in this section denote portfoliopositioning at the beginning of the period.

KEY CHARACTERISTICS OF DODGE & COXIndependent Organizat ionDodge & Cox is one of the largest privately owned investmentmanagers in the world. We remain committed to independence,with a goal of providing the highest quality investmentmanagement service to our existing clients.

Over 85 Years of Investment ExperienceDodge & Cox was founded in 1930. We have a stable and well-qualified team of investment professionals, most of whom havespent their entire careers at Dodge & Cox.

Experienced Investment TeamThe Investment Policy Committee, which is the decision-making body for the equity portion of the Balanced Fund, is anine-member committee with an average tenure atDodge & Cox of 27 years. The Fixed Income Investment PolicyCommittee, which is the decision-making body for the FixedIncome portion of the Balanced Fund, is an eight-membercommittee with an average tenure of 20 years.

One Business with a Single Research OfficeDodge & Cox manages equity (domestic, international, andglobal), fixed income (domestic and global), and balancedinvestments, operating from one office in San Francisco.

Consistent Investment ApproachOur team decision-making process involves thorough, bottom-up fundamental analysis of each investment.

Long-Term Focus and Low ExpensesWe invest with a three- to five-year investment horizon, whichhas historically resulted in low turnover relative to our peers.We manage Funds that maintain low expense ratios.

Risks: The Fund is subject to market risk, meaning holdings inthe Fund may decline in value for extended periods due to thefinancial prospects of individual companies or due to generalmarket and economic conditions. The Fund also invests inindividual bonds whose yields and market values fluctuate, sothat an investment may be worth more or less than its originalcost. Debt securities are subject to interest rate risk, credit risk,and prepayment and call risk, all of which could have adverseeffects on the value of the Fund. A low interest rateenvironment creates an elevated risk of future negative returns.Financial intermediaries may restrict their market makingactivities for certain debt securities, which may reduce theliquidity and increase the volatility of such securities. Please readthe prospectus and summary prospectus for specific detailsregarding the Fund’s risk profile.


GROWTH OF $10,000 OVER 10 YEARSFOR AN INVESTMENT MADE ON DECEMBER 31, 2005

Dodge & CoxBalanced Fund $17,493 S&P 500 Index $20,251CombinedIndex(a) $18,747

BarclaysU.S. Agg $15,562

$30,000

20,000

10,000

5,00012/31/05 12/31/07 12/31/09 12/31/1312/31/11 12/31/15

AVERAGE ANNUAL TOTAL RETURNFOR PERIODS ENDED DECEMBER 31, 2015

1 Year 5 Years 10 Years 20 Years

Dodge & Cox Balanced Fund –2.88% 9.58% 5.76% 8.78%Combined Index(a) 1.31 8.95 6.49 7.36S&P 500 Index 1.41 12.58 7.31 8.19Barclays U.S. Aggregate Bond Index

(Barclays U.S. Agg) 0.57 3.26 4.52 5.34

Returns represent past performance and do not guarantee futureresults. Investment return and share price will fluctuate withmarket conditions, and investors may have a gain or loss whenshares are sold. Fund performance changes over time andcurrently may be significantly lower than stated. Performance isupdated and published monthly. Visit the Fund’s website atdodgeandcox.com or call 800-621-3979 for current performancefigures.

The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for anyincome taxes payable by shareholders on these distributions or onFund share redemptions. Index returns include dividends and/orinterest income but, unlike Fund returns, do not reflect fees orexpenses.

Standard & Poor’s, Standard & Poor’s 500, and S&P 500® aretrademarks of McGraw Hill Financial. Barclays® is a trademark ofBarclays Bank PLC.(a) The Combined Index reflects an unmanaged portfolio (rebalanced

monthly) of 60% of the S&P 500 Index, which is a market capitalization-weighted index of 500 large-capitalization stocks commonly used torepresent the U.S. equity market, and 40% of the Barclays U.S. AggregateBond Index (Barclays U.S. Agg), which is a widely recognized, unmanagedindex of U.S. dollar-denominated, investment-grade, taxable fixed incomesecurities. The Fund may, however, invest up to 75% of its total assets inequity securities.

FUND EXPENSE EXAMPLEAs a Fund shareholder, you incur ongoing Fund costs, including management fees and other Fund expenses. All mutual funds have ongoingcosts, sometimes referred to as operating expenses. The following example shows ongoing costs of investing in the Fund and can help youunderstand these costs and compare them with those of other mutual funds. The example assumes a $1,000 investment held for the sixmonths indicated.

ACTUAL EXPENSES

The first line of the table below provides information about actual account values and expenses based on the Fund’s actual returns. You mayuse the information in this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divideyour 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 thefirst line under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER MUTUAL FUNDS

Information on the second line of the table can help you compare ongoing costs of investing in the Fund with those of other mutual funds.This information may not be used to estimate the actual ending account balance or expenses you paid during the period. The hypothetical“Ending Account Value” is based on the actual expense ratio of the Fund and an assumed 5% annual rate of return before expenses (not theFund’s actual return). The amount under the heading “Expenses Paid During Period” shows the hypothetical expenses your account wouldhave incurred under this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports ofother mutual funds.

Six Months EndedDecember 31, 2015

Beginning Account Value7/1/2015

Ending Account Value12/31/2015

Expenses PaidDuring Period*

Based on Actual Fund Return $1,000.00 $ 960.70 $2.57Based on Hypothetical 5% Yearly Return 1,000.00 1,022.58 2.65

* Expenses are equal to the Fund’s annualized expense ratio of 0.52%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

The expenses shown in the table highlight ongoing costs only and do not reflect any transactional fees or account maintenance fees.Though other mutual funds may charge such fees, please note that the Fund does not charge transaction fees (e.g., redemption fees, salesloads) or universal account maintenance fees (e.g., small account fees).


FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION

Net Asset Value Per Share $94.42Total Net Assets (billions) $14.3Expense Ratio 0.53%Portfolio Turnover Rate 20%30-Day SEC Yield(a) 2.17%Fund Inception 1931No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed bythe Investment Policy Committee, whose nine members’ averagetenure at Dodge & Cox is 27 years, and by the Fixed IncomeInvestment Policy Committee, whose eight members’ averagetenure is 20 years.

EQUITY PORTFOLIO (70.2%) Fund

Number of Common Stocks 63Number of Preferred Stocks 5Median Market Capitalization (billions)(b) $38Price-to-Earnings Ratio(b)(c) 13.8xForeign Securities not in the S&P 500(d) 6.2%

SECTOR DIVERSIFICATION (%)(FIVE LARGEST) Common Preferred Total

Financials 17.9 3.9 21.8Information Technology 16.5 — 16.5Health Care 11.1 — 11.1Consumer Discretionary 10.1 0.4 10.5Energy 4.9 — 4.9

TEN LARGEST EQUITYSECURITIES (%)( e ) Common Preferred Total

Wells Fargo & Co. 2.8 1.7 4.5JPMorgan Chase & Co. 1.3 1.8 3.1Microsoft Corp. 2.7 — 2.7Capital One Financial Corp. 2.6 — 2.6Charles Schwab Corp. 2.6 — 2.6Time Warner Cable, Inc. 2.6 — 2.6Alphabet, Inc. 2.3 — 2.3Bank of America Corp. 2.3 — 2.3Novartis AG (Switzerland) 2.0 — 2.0EMC Corp. 1.8 — 1.8

ASSET ALLOCATION

Net Cash& Other:(f) 1.6%

PreferredStocks: 4.3%

CommonStocks: 65.9%

DebtSecurities: 28.2%

FIXED INCOME PORTFOLIO (28.2%) Fund

Number of Credit Issuers 60Effective Duration (years) 4.0

SECTOR DIVERSIFICATION (%)

U.S. Treasury(g) 2.2Government-Related 2.0Mortgage-Related(h) 9.5Corporate 13.2Asset-Backed 1.3

CREDIT QUALITY (%)( i )

U.S. Treasury/Agency/GSE(g) 11.7Aaa 0.9Aa 0.8A 1.3Baa 10.1Ba 2.8B 0.6

FIVE LARGEST CREDIT ISSUERS (%)( e )

Telecom Italia SPA 0.6Verizon Communications, Inc. 0.6State of Illinois GO 0.5State of California GO 0.5Kinder Morgan, Inc. 0.5

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) Excludes the Fund’s preferred stock positions.(c) Price-to-earnings (P/E) ratio is calculated using 12-month forward earnings estimates from third-party sources.(d) Foreign stocks are U.S. dollar denominated.(e) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular

security and is not indicative of Dodge & Cox’s current or future trading activity.(f) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,

payables, and unrealized appreciation/depreciation on certain derivatives).(g) Data as presented excludes the Fund’s position in Treasury futures contracts.(h) The fixed income portfolio holds 0.16% in Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency.(i) The credit quality distribution shown for the Fund is based on the middle of Moody’s, S&P’s, and Fitch ratings, which is the methodology used by Barclays in

constructing its indices. If a security is rated by only two agencies, the lower of the two ratings is used. Please note the Fund applies the highest of Moody’s, S&P’s,and Fitch ratings to determine compliance with the quality requirements stated in its prospectus. The credit quality of the investments in the portfolio does notapply to the stability or safety of the Fund or its shares.


PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS: 65.9%

SHARES VALUE

CONSUMER DISCRETIONARY: 10.1%AUTOMOBILES & COMPONENTS: 0.3%Harley-Davidson, Inc. 860,000 $ 39,035,400

CONSUMER DURABLES & APPAREL: 0.4%Coach, Inc. 1,655,036 54,169,328

MEDIA: 7.9%Comcast Corp., Class A 4,564,774 257,590,197DISH Network Corp., Class A(a) 1,165,032 66,616,530News Corp., Class A 688,050 9,192,348Time Warner Cable, Inc. 1,982,383 367,910,461Time Warner, Inc. 3,817,066 246,849,658Twenty-First Century Fox, Inc., Class A 4,882,200 132,600,552Twenty-First Century Fox, Inc., Class B 1,600,000 43,568,000

1,124,327,746RETAILING: 1.5%Liberty Interactive Corp. QVC Group,

Series A(a) 2,284,650 62,416,638Target Corp. 985,400 71,549,894The Priceline Group, Inc.(a) 67,000 85,421,650

219,388,182

1,436,920,656CONSUMER STAPLES: 1.4%FOOD & STAPLES RETAILING: 1.4%Wal-Mart Stores, Inc. 3,201,900 196,276,470

ENERGY: 4.9%Apache Corp. 2,710,017 120,514,456Baker Hughes, Inc. 3,547,579 163,720,771Concho Resources, Inc.(a) 560,900 52,085,174National Oilwell Varco, Inc. 2,210,000 74,012,900Schlumberger, Ltd.(b) (Curacao/United States) 3,674,021 256,262,964Weatherford International PLC(a)(b) (Ireland) 4,250,000 35,657,500

702,253,765FINANCIALS: 17.9%BANKS: 7.1%Bank of America Corp. 19,257,100 324,096,993BB&T Corp. 2,714,584 102,638,421JPMorgan Chase & Co. 2,929,900 193,461,297Wells Fargo & Co. 7,408,506 402,726,386

1,022,923,097DIVERSIFIED FINANCIALS: 9.3%American Express Co. 1,905,000 132,492,750Bank of New York Mellon Corp. 5,702,600 235,061,172Capital One Financial Corp. 5,169,959 373,167,641Charles Schwab Corp. 11,232,900 369,899,397Goldman Sachs Group, Inc. 1,182,000 213,031,860

1,323,652,820INSURANCE: 1.5%AEGON NV(b) (Netherlands) 12,084,994 68,521,916MetLife, Inc. 3,077,000 148,342,170

216,864,086

2,563,440,003HEALTH CARE: 11.1%HEALTH CARE EQUIPMENT & SERVICES: 4.7%Anthem, Inc. 260,980 36,391,051Cigna Corp. 1,361,216 199,186,737Express Scripts Holding Co.(a) 2,599,568 227,228,239Medtronic PLC(b) (Ireland) 660,200 50,782,584UnitedHealth Group, Inc. 1,398,562 164,526,834

678,115,445

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 6.4%AstraZeneca PLC ADR(b) (United Kingdom) 1,270,100 43,119,895Merck & Co., Inc. 2,583,175 136,443,304Novartis AG ADR(b) (Switzerland) 3,294,900 283,493,196

SHARES VALUE

Roche Holding AG ADR(b) (Switzerland) 5,980,000 $ 206,130,600Sanofi ADR(b) (France) 5,515,165 235,221,787Thermo Fisher Scientific, Inc. 24,500 3,475,325

907,884,107

1,585,999,552INDUSTRIALS: 2.9%CAPITAL GOODS: 0.6%Danaher Corp. 826,400 76,756,032NOW, Inc.(a) 340,950 5,393,829

82,149,861COMMERCIAL & PROFESSIONAL SERVICES: 1.0%ADT Corp. 2,017,717 66,544,307Tyco International PLC(b) (Ireland) 2,365,434 75,433,690

141,977,997TRANSPORTATION: 1.3%FedEx Corp. 1,242,254 185,083,423

409,211,281INFORMATION TECHNOLOGY: 16.5%SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 0.6%Maxim Integrated Products, Inc. 2,377,091 90,329,458

SOFTWARE & SERVICES: 7.3%Alphabet, Inc., Class A(a) 116,700 90,793,767Alphabet, Inc., Class C(a) 326,895 248,074,078Cadence Design Systems, Inc.(a) 1,170,700 24,362,267eBay, Inc.(a) 320,592 8,809,868Microsoft Corp. 6,901,700 382,906,316Symantec Corp. 9,214,000 193,494,000Synopsys, Inc.(a) 1,614,700 73,646,467VMware, Inc.(a) 326,300 18,458,791

1,040,545,554TECHNOLOGY, HARDWARE & EQUIPMENT: 8.6%Cisco Systems, Inc. 6,991,100 189,843,321Corning, Inc. 5,761,700 105,323,876EMC Corp. 10,174,000 261,268,320Hewlett Packard Enterprise Co. 15,984,712 242,967,622HP, Inc. 14,934,712 176,826,990Juniper Networks, Inc. 620,645 17,129,802NetApp, Inc. 3,826,491 101,516,806TE Connectivity, Ltd.(b) (Switzerland) 2,080,536 134,423,431

1,229,300,168

2,360,175,180MATERIALS: 0.6%Celanese Corp., Series A 1,330,960 89,613,537

TELECOMMUNICATION SERVICES: 0.5%Sprint Corp.(a) 18,742,971 67,849,555

TOTAL COMMON STOCKS(Cost $6,846,235,719) $9,411,739,999

PREFERRED STOCKS: 4.3%

CONSUMER DISCRETIONARY: 0.4%MEDIA: 0.4%NBCUniversal Enterprise, Inc. 5.25%(d) 53,210 56,402,600

FINANCIALS: 3.9%BANKS: 3.9%Citigroup, Inc. 5.95%

12/31/49 60,975 58,688,4387/29/49 5,175 5,063,738

JPMorgan Chase & Co. 6.10% 254,565 255,863,281Wells Fargo & Co. 5.875% 227,645 239,596,362

559,211,819

TOTAL PREFERRED STOCKS(Cost $601,634,518) $ 615,614,419

P A G E 8 ▪ D O D G E & C O X B A L A N C E D F U N D See accompanying Notes to Financial Statements


DEBT SECURITIES: 28.2%

PAR VALUE VALUE

U.S. TREASURY: 2.2%U.S. Treasury Note/Bond

0.50%, 3/31/17 $ 50,600,000 $ 50,368,7580.875%, 1/15/18 148,000,000 147,343,7681.00%, 3/15/18 81,500,000 81,225,5901.625%, 7/31/19 13,315,000 13,363,8391.625%, 11/30/20 23,000,000 22,869,659

315,171,614GOVERNMENT-RELATED: 2.0%FEDERAL AGENCY: 0.1%Small Business Admin. — 504 Program

Series 1996-20L 1, 6.70%, 12/1/16 71,193 72,524Series 1997-20F 1, 7.20%, 6/1/17 159,461 163,598Series 1997-20I 1, 6.90%, 9/1/17 232,115 238,998Series 1998-20D 1, 6.15%, 4/1/18 262,195 275,691Series 1998-20I 1, 6.00%, 9/1/18 239,941 251,340Series 1999-20F 1, 6.80%, 6/1/19 261,313 271,606Series 2000-20D 1, 7.47%, 4/1/20 933,276 990,642Series 2000-20E 1, 8.03%, 5/1/20 198,626 212,663Series 2000-20G 1, 7.39%, 7/1/20 418,605 442,963Series 2000-20I 1, 7.21%, 9/1/20 286,407 303,850Series 2001-20E 1, 6.34%, 5/1/21 916,069 994,336Series 2001-20G 1, 6.625%, 7/1/21 804,090 873,338Series 2003-20J 1, 4.92%, 10/1/23 3,385,536 3,641,847Series 2007-20F 1, 5.71%, 6/1/27 3,874,995 4,332,510

13,065,906FOREIGN AGENCY: 0.6%Corp. Nacional del Cobre de Chile(b) (Chile) 11,100,000 10,452,604

4.50%, 9/16/25(d)

Petroleo Brasileiro SA(b) (Brazil)4.375%, 5/20/23 29,800,000 19,668,0006.25%, 3/17/24 4,225,000 3,031,437

Petroleos Mexicanos(b) (Mexico)4.25%, 1/15/25(d) 22,685,000 19,849,3756.625%, 6/15/35 9,425,000 8,423,5946.375%, 1/23/45 17,125,000 14,552,2775.625%, 1/23/46(d) 16,675,000 12,759,710

88,736,997LOCAL AUTHORITY: 1.2%New Jersey Turnpike Authority RB

7.414%, 1/1/40 3,350,000 4,757,8377.102%, 1/1/41 12,436,000 17,092,785

State of California GO7.50%, 4/1/34 13,470,000 18,795,6347.55%, 4/1/39 16,525,000 24,002,7287.30%, 10/1/39 13,730,000 19,216,3717.625%, 3/1/40 8,790,000 12,800,613

State of Illinois GO5.365%, 3/1/17 37,215,000 38,596,7935.665%, 3/1/18 26,160,000 27,699,5165.10%, 6/1/33 11,565,000 10,936,442

173,898,719SOVEREIGN: 0.1%Spain Government International(b) (Spain)

4.00%, 3/6/18(d) 11,850,000 12,360,522

288,062,144

PAR VALUE VALUE

MORTGAGE-RELATED: 9.5%FEDERAL AGENCY CMO & REMIC: 2.1%Dept. of Veterans Affairs

Series 1995-1 1, 7.243%, 2/15/25 $ 395,926 $ 445,411Series 1995-2C 3A, 8.793%, 6/15/25 179,364 217,524Series 2002-1 2J, 6.50%, 8/15/31 10,723,089 12,247,566

Fannie MaeTrust 2002-33 A1, 7.00%, 6/25/32 2,099,246 2,351,752Trust 2009-66 ET, 6.00%, 5/25/39 4,796,186 5,160,867Trust 2009-30 AG, 6.50%, 5/25/39 3,302,517 3,576,862Trust 2001-T7 A1, 7.50%, 2/25/41 1,718,556 2,008,262Trust 2001-T5 A3, 7.50%, 6/19/41 682,256 811,245Trust 2001-T8 A1, 7.50%, 7/25/41 1,692,666 1,957,987Trust 2001-T4 A1, 7.50%, 7/25/41 1,712,600 2,025,133Trust 2001-W3 A, 6.808%, 9/25/41 1,160,859 1,302,228Trust 2001-T10 A2, 7.50%, 12/25/41 1,489,256 1,778,734Trust 2013-106 MA, 4.00%, 2/25/42 11,563,313 12,242,707Trust 2002-W6 2A1, 6.321%, 6/25/42 1,718,690 2,001,011Trust 2002-W8 A2, 7.00%, 6/25/42 2,234,030 2,545,373Trust 2003-W2 1A1, 6.50%, 7/25/42 3,487,032 3,980,360Trust 2003-W2 1A2, 7.00%, 7/25/42 1,341,223 1,557,434Trust 2003-W4 4A, 7.028%, 10/25/42 1,803,821 2,070,685Trust 2012-121 NB, 7.00%, 11/25/42 3,164,256 3,648,919Trust 2013-98 FA, 0.972%, 9/25/43 10,693,645 10,818,562Trust 2013-92 FA, 0.972%, 9/25/43 46,687,279 46,951,706Trust 2004-T1 1A2, 6.50%, 1/25/44 2,211,506 2,469,037Trust 2004-W2 5A, 7.50%, 3/25/44 4,324,224 4,930,797Trust 2004-W8 3A, 7.50%, 6/25/44 723,254 841,494Trust 2005-W4 1A2, 6.50%, 8/25/45 6,459,234 7,647,394Trust 2009-11 MP, 7.00%, 3/25/49 6,673,247 7,588,629

Freddie MacSeries 1078 GZ, 6.50%, 5/15/21 134,068 138,901Series 16 PK, 7.00%, 8/25/23 2,444,672 2,705,203Series T-48 1A4, 5.538%, 7/25/33 31,624,028 34,855,962Series 314 F2, 0.941%, 9/15/43 22,307,420 22,317,611Series T-51 1A, 6.50%, 9/25/43 214,076 249,417Series T-59 1A1, 6.50%, 10/25/43 11,105,448 12,756,046Series 4281 BC, 4.786%, 12/15/43 76,760,905 82,819,605

299,020,424FEDERAL AGENCY MORTGAGE PASS-THROUGH: 7.4%Fannie Mae, 15 Year

3.50%, 12/1/29 11,970,331 12,545,6914.00%, 2/1/27-5/1/27 73,221,983 77,654,6734.50%, 1/1/25-1/1/27 19,067,881 20,499,5316.00%, 7/1/16-3/1/22 2,681,738 2,764,0396.50%, 9/1/16-11/1/18 2,289,141 2,336,3317.00%, 11/1/18 151,009 153,9667.50%, 12/1/16-8/1/17 166,511 168,910

Fannie Mae, 20 Year4.00%, 11/1/30-12/1/34 197,825,165 211,580,7024.50%, 1/1/31-5/1/32 61,706,443 67,109,133

Fannie Mae, 30 Year4.50%, 1/1/39-2/1/45 75,323,091 81,860,8965.50%, 7/1/33-8/1/37 18,624,348 20,951,2466.00%, 9/1/36-8/1/37 24,376,674 27,807,2796.50%, 12/1/28-8/1/39 27,831,830 32,020,6927.00%, 4/1/37-8/1/37 8,954,789 10,377,448

Fannie Mae, Hybrid ARM2.00%, 1/1/35 3,146,535 3,276,7772.246%, 12/1/34 2,396,886 2,495,7172.266%, 9/1/34 1,643,186 1,751,9912.272%, 1/1/35 1,596,759 1,690,1132.319%, 8/1/35 1,820,017 1,911,9632.436%, 8/1/38 4,655,366 4,943,4602.525%, 11/1/43 8,927,599 9,165,9182.707%, 4/1/44 20,208,801 20,876,530

See accompanying Notes to Financial Statements D O D G E & C O X B A L A N C E D F U N D ▪ P A G E 9


DEBT SECURITIES (continued)

PAR VALUE VALUE

2.817%, 12/1/44 $19,774,634 $ 20,236,2652.837%, 11/1/44 33,113,696 33,900,2642.843%, 12/1/45 31,025,839 31,690,6462.947%, 9/1/45 7,215,008 7,395,6423.284%, 6/1/41 17,461,196 18,333,0133.569%, 12/1/40 6,752,555 7,043,8943.757%, 11/1/40 2,781,454 2,909,7554.27%, 7/1/39 3,194,145 3,406,0235.566%, 5/1/37 1,781,996 1,890,0376.35%, 9/1/36 422,015 445,578

Fannie Mae, Multifamily DUSTrust 2014-M9 ASQ2, 1.462%, 4/25/17 6,492,485 6,500,988

Freddie Mac, Hybrid ARM2.216%, 4/1/37 2,849,537 3,010,0442.447%, 10/1/38 2,517,714 2,659,5402.535%, 9/1/37 1,435,803 1,526,7162.558%, 10/1/35 3,206,679 3,387,8352.623%, 8/1/42 13,917,232 14,321,5102.678%, 5/1/34 3,169,406 3,387,1392.69%, 2/1/38 7,150,632 7,602,8652.784%, 10/1/45 16,972,680 17,287,2862.939%, 5/1/44 3,082,081 3,164,4772.952%, 6/1/44 5,691,194 5,837,1532.97%, 5/1/44 23,078,551 23,727,6203.141%, 6/1/44 8,211,836 8,459,9603.609%, 10/1/41 2,135,177 2,222,3165.857%, 7/1/38 552,655 589,9116.103%, 1/1/38 703,454 746,787

Freddie Mac Gold, 15 Year4.00%, 3/1/25-11/1/26 48,627,233 51,359,8974.50%, 9/1/24-9/1/26 13,296,565 14,246,6876.00%, 2/1/18 325,603 332,8476.50%, 5/1/16-9/1/18 1,022,622 1,041,584

Freddie Mac Gold, 20 Year4.50%, 4/1/31-6/1/31 14,328,880 15,560,5296.50%, 10/1/26 5,265,986 5,996,930

Freddie Mac Gold, 30 Year4.50%, 9/1/41-1/1/44 85,366,522 92,170,5265.50%, 12/1/37 1,135,012 1,273,7916.00%, 2/1/39 2,948,130 3,357,6306.50%, 12/1/32-4/1/33 7,928,552 9,202,3377.00%, 11/1/37-9/1/38 7,339,801 8,428,4527.47%, 3/17/23 115,396 126,6667.75%, 7/25/21 328,322 354,645

Ginnie Mae, 30 Year7.50%, 11/15/24-10/15/25 921,752 1,043,1157.97%, 4/15/20-1/15/21 412,946 443,203

1,050,565,109

1,349,585,533ASSET-BACKED: 1.3%AUTO LOAN: 0.3%Ford Credit Auto Owner Trust

Series 2014-C A3, 1.06%, 5/15/19 23,000,000 22,944,850Series 2015-1 A, 2.12%, 7/15/26(d) 16,450,000 16,245,696

39,190,546CREDIT CARD: 0.3%American Express Master Trust

Series 2014-3 A, 1.49%, 4/15/20 16,025,000 16,029,651Chase Issuance Trust

Series 2013-A8 A8, 1.01%, 10/15/18 14,000,000 13,987,047Series 2014-A1 A1, 1.15%, 1/15/19 8,400,000 8,393,246Series 2014-A6 A6, 1.26%, 7/15/19 6,500,000 6,486,090

44,896,034

PAR VALUE VALUE

OTHER: 0.5%Rio Oil Finance Trust(b) (Brazil)

9.25%, 7/6/24(d) $49,425,000 $ 36,574,5009.75%, 1/6/27(d) 42,925,000 31,549,875

68,124,375STUDENT LOAN: 0.2%SLM Student Loan Trust (Private Loans)

Series 2014-A A2A, 2.59%, 1/15/26(d) 5,250,000 5,223,136Series 2012-B A2, 3.48%, 10/15/30(d) 9,358,036 9,486,544Series 2012-E A2A, 2.09%, 6/15/45(d) 13,775,000 13,661,272Series 2012-C A2, 3.31%, 10/15/46(d) 10,100,000 10,227,070

38,598,022

190,808,977CORPORATE: 13.2%FINANCIALS: 4.2%Bank of America Corp.

7.625%, 6/1/19 6,800,000 7,868,8105.625%, 7/1/20 5,030,000 5,589,2104.20%, 8/26/24 5,825,000 5,833,4586.625%, 5/23/36(c) 37,275,000 42,454,249

Barclays PLC(b) (United Kingdom)4.375%, 9/11/24 23,275,000 22,758,784

BNP Paribas SA(b) (France)4.25%, 10/15/24 31,175,000 30,899,7564.375%, 9/28/25(d) 10,100,000 9,892,778

Boston Properties, Inc.3.85%, 2/1/23 7,800,000 7,963,2153.125%, 9/1/23 17,550,000 17,095,5433.80%, 2/1/24 11,175,000 11,368,205

Capital One Financial Corp.3.50%, 6/15/23 42,579,000 42,342,8574.20%, 10/29/25 6,175,000 6,100,066

Cigna Corp.7.65%, 3/1/23 9,705,000 11,771,7777.875%, 5/15/27 21,888,000 28,780,7068.30%, 1/15/33 8,845,000 11,617,775

Citigroup, Inc.6.692%, 10/30/40(c) 43,080,925 45,131,577

Equity Residential4.625%, 12/15/21 14,054,000 15,259,5523.00%, 4/15/23 14,775,000 14,514,074

Health Net, Inc.6.375%, 6/1/17 13,275,000 13,806,000

HSBC Holdings PLC(b) (United Kingdom)5.10%, 4/5/21 3,625,000 4,030,2716.50%, 5/2/36 23,190,000 27,661,8676.50%, 9/15/37 15,315,000 18,375,075

JPMorgan Chase & Co.8.75%, 9/1/30(c) 23,042,000 32,999,047

Lloyds Banking Group PLC(b)

(United Kingdom)4.50%, 11/4/24 19,575,000 19,873,480

Navient Corp.6.00%, 1/25/17 14,285,000 14,642,1254.625%, 9/25/17 9,550,000 9,406,7508.45%, 6/15/18 15,755,000 16,582,137

Royal Bank of Scotland Group PLC(b)

(United Kingdom)6.125%, 12/15/22 48,416,000 52,710,9356.00%, 12/19/23 3,250,000 3,500,270

Unum Group7.19%, 2/1/28 8,305,000 9,754,0487.25%, 3/15/28 2,030,000 2,361,5076.75%, 12/15/28 11,368,000 13,341,587

Wells Fargo & Co.4.30%, 7/22/27 20,710,000 21,158,268

597,445,759

P A G E 1 0 ▪ D O D G E & C O X B A L A N C E D F U N D See accompanying Notes to Financial Statements



PAR VALUE VALUE

INDUSTRIALS: 8.6%Allergan PLC(b) (Ireland)

3.00%, 3/12/20 $ 19,550,000 $ 19,534,4193.45%, 3/15/22 11,130,000 11,147,7753.80%, 3/15/25 10,870,000 10,815,487

AT&T, Inc.3.40%, 5/15/25 6,725,000 6,464,1716.55%, 2/15/39 7,675,000 8,621,0285.35%, 9/1/40 27,575,000 27,235,5524.75%, 5/15/46 7,000,000 6,407,968

Becton, Dickinson and Co.3.734%, 12/15/24 5,725,000 5,777,544

BHP Billiton, Ltd.(b) (Australia)6.75%, 10/19/75(c)(d) 19,800,000 19,107,000

Burlington Northern Santa Fe LLC(f)

8.251%, 1/15/21 664,677 748,3003.85%, 9/1/23 2,150,000 2,234,6335.72%, 1/15/24 9,037,276 9,948,9745.342%, 4/1/24 9,407,801 10,166,5405.629%, 4/1/24 14,244,488 15,581,690

Cemex SAB de CV(b) (Mexico)6.50%, 12/10/19(d) 22,500,000 21,712,5006.00%, 4/1/24(d) 10,575,000 9,068,0625.70%, 1/11/25(d) 22,475,000 18,794,7196.125%, 5/5/25(d) 8,100,000 6,925,500

Charter Communications, Inc.4.908%, 7/23/25(d) 11,600,000 11,588,5976.484%, 10/23/45(d) 8,150,000 8,152,893

Cox Enterprises, Inc.3.25%, 12/15/22(d) 15,740,000 14,307,5502.95%, 6/30/23(d) 37,166,000 32,742,6513.85%, 2/1/25(d) 19,625,000 17,993,868

CRH PLC(b) (Ireland)3.875%, 5/18/25(d) 17,100,000 16,991,740

CSX Corp.9.75%, 6/15/20 5,231,000 6,646,169

Dillard’s, Inc.7.13%, 8/1/18 3,606,000 3,968,6817.875%, 1/1/23 8,660,000 10,205,2737.75%, 7/15/26 50,000 57,8317.75%, 5/15/27 540,000 628,4217.00%, 12/1/28 15,135,000 16,775,271

Dow Chemical Co.8.55%, 5/15/19 12,775,000 15,061,3427.375%, 11/1/29 17,000,000 21,006,7649.40%, 5/15/39 9,677,000 13,906,023

FedEx Corp.8.00%, 1/15/19 6,965,000 8,108,8486.72%, 7/15/23 5,156,509 5,813,964

Ford Motor Credit Co. LLC(f)

5.75%, 2/1/21 12,700,000 14,036,8655.875%, 8/2/21 11,350,000 12,657,2704.25%, 9/20/22 9,593,000 9,814,7904.375%, 8/6/23 14,575,000 14,981,599

Hewlett Packard Enterprise Co.3.60%, 10/15/20(d) 33,600,000 33,680,640

Imperial Tobacco Group PLC(b)

(United Kingdom)3.75%, 7/21/22(d) 10,475,000 10,518,1264.25%, 7/21/25(d) 31,825,000 32,300,020

Kinder Morgan, Inc.4.30%, 6/1/25 36,515,000 31,565,6475.50%, 3/1/44 33,730,000 26,307,6465.40%, 9/1/44 15,414,000 11,648,452

PAR VALUE VALUE

Macy’s, Inc.6.90%, 1/15/32 $ 49,699,000 $ 54,850,3516.70%, 7/15/34 2,890,000 3,002,626

Naspers, Ltd. (b) (South Africa)6.00%, 7/18/20(d) 21,900,000 23,300,0675.50%, 7/21/25(d) 17,575,000 16,907,712

Norfolk Southern Corp.9.75%, 6/15/20 7,224,000 9,220,403

RELX PLC(b) (United Kingdom)8.625%, 1/15/19 4,901,000 5,716,3163.125%, 10/15/22 22,133,000 21,508,274

Sprint Corp.6.00%, 12/1/16 24,367,000 24,245,165

Teck Resources, Ltd.(b) (Canada)5.20%, 3/1/42 17,773,000 7,464,660

Telecom Italia SPA(b) (Italy)6.999%, 6/4/18 17,100,000 18,468,0007.175%, 6/18/19 27,527,000 30,349,0685.303%, 5/30/24(d) 11,500,000 11,356,2507.20%, 7/18/36 11,596,000 11,711,9607.721%, 6/4/38 7,062,000 7,362,135

The Kraft Heinz Co.3.95%, 7/15/25(d) 4,000,000 4,038,724

Time Warner Cable, Inc.8.75%, 2/14/19 13,840,000 16,059,2028.25%, 4/1/19 33,815,000 38,861,4836.55%, 5/1/37 11,000,000 11,125,8406.75%, 6/15/39 2,110,000 2,117,503

Time Warner, Inc.7.625%, 4/15/31 31,348,000 38,787,7277.70%, 5/1/32 14,374,000 17,944,415

TransCanada Corp.(b) (Canada)5.625%, 5/20/75(c) 20,570,000 19,018,693

Twenty-First Century Fox, Inc.6.15%, 3/1/37 15,000,000 16,713,4356.65%, 11/15/37 1,638,000 1,903,456

Union Pacific Corp.5.866%, 7/2/30 26,119,175 29,814,0276.176%, 1/2/31 9,262,594 10,532,209

Verizon Communications, Inc.4.15%, 3/15/24 12,750,000 13,110,8384.272%, 1/15/36 11,847,000 10,693,1736.55%, 9/15/43 46,476,000 55,175,238

Vulcan Materials Co.7.50%, 6/15/21 20,340,000 23,696,100

Xerox Corp.6.35%, 5/15/18 20,585,000 22,009,7084.50%, 5/15/21 19,161,000 19,347,973

Zoetis, Inc.3.45%, 11/13/20 8,960,000 8,970,7434.50%, 11/13/25 7,985,000 8,097,365

1,225,239,642UTILITIES: 0.4%Dominion Resources, Inc.

5.75%, 10/1/54(c) 22,950,000 22,486,410Enel SPA(b) (Italy)

6.80%, 9/15/37(d) 18,700,000 22,833,5986.00%, 10/7/39(d) 8,550,000 9,560,627

54,880,635

1,877,566,036

TOTAL DEBT SECURITIES(Cost $3,929,370,365) $ 4,021,194,304

See accompanying Notes to Financial Statements D O D G E & C O X B A L A N C E D F U N D ▪ P A G E 1 1


SHORT-TERM INVESTMENTS: 1.4%

PAR VALUE VALUE

MONEY MARKET FUND: 0.1%SSgA U.S. Treasury Money Market Fund $ 14,374,610 $ 14,374,610

REPURCHASE AGREEMENT: 1.3%Fixed Income Clearing Corporation(e)

0.08%, dated 12/31/15, due 1/4/16,maturity value $184,725,642 184,724,000 184,724,000

TOTAL SHORT-TERM INVESTMENTS(Cost $199,098,610) $ 199,098,610

TOTAL INVESTMENTS(Cost $11,576,339,212) 99.8% $14,247,647,332

OTHER ASSETS LESS LIABILITIES 0.2% 21,681,711

NET ASSETS 100.0% $14,269,329,043

(a) Non-income producing(b) Security denominated in U.S. dollars(c) Hybrid security(d) Security exempt from registration under Rule 144A of the Securities Act of

1933. The security may be resold in transactions exempt from registration,normally to qualified institutional buyers. As of December 31, 2015, allsuch securities in total represented $586,566,526 or 4.1% of net assets.These securities have been deemed liquid by Dodge & Cox, investmentmanager, pursuant to procedures approved by the Fund’s Board of Trustees.

(e) Repurchase agreement is collateralized by U.S. Treasury Notes 1.625%-1.75%, 7/31/20-3/31/22. Total collateral value is $188,420,119.

(f) Subsidiary (see below)

In determining a company’s country designation, the Fund generallyreferences the country of incorporation. In cases where the Fund considersthe country of incorporation to be a “jurisdiction of convenience” chosenprimarily for tax purposes or in other limited circumstances, the Fund usesthe country designation of an appropriate broad-based market index. Inthose cases, two countries are listed — the country of incorporation and thecountry designated by an appropriate index, respectively.

Debt securities are grouped by parent company unless otherwise noted.Actual securities may be issued by the listed parent company or one of itssubsidiaries.

ADR: American Depositary ReceiptARM: Adjustable Rate MortgageCMO: Collateralized Mortgage ObligationDUS: Delegated Underwriting and ServicingGO: General ObligationRB: Revenue BondREMIC: Real Estate Mortgage Investment Conduit

FUTURES CONTRACTS

DescriptionNumber ofContracts

ExpirationDate

NotionalAmount

UnrealizedAppreciation/

(Depreciation)

10 Year U.S.Treasury Note—Short Position 1,664 Mar 2016 $(209,508,000) $ 781,542

Long-Term U.S.Treasury Bond—Short Position 1,040 Mar 2016 (165,035,000) (525,653)

$ 255,889

P A G E 1 2 ▪ D O D G E & C O X B A L A N C E D F U N D See accompanying Notes to Financial Statements

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2015

ASSETS:Investments, at value (cost $11,576,339,212) $14,247,647,332Cash held at broker 6,770,388Receivable for investments sold 5,801,740Receivable for Fund shares sold 8,024,925Dividends and interest receivable 52,275,035Prepaid expenses and other assets 93,831

14,320,613,251

LIABILITIES:Payable to broker for variation margin 1,533,992Payable for investments purchased 5,288,661Payable for Fund shares redeemed 37,488,385Management fees payable 6,113,609Accrued expenses 859,561

51,284,208

NET ASSETS $14,269,329,043

NET ASSETS CONSIST OF:

Paid in capital $11,444,166,191Undistributed net investment income 3,251,258Undistributed net realized gain 150,347,585Net unrealized appreciation 2,671,564,009

$14,269,329,043

Fund shares outstanding (par value $0.01 each,unlimited shares authorized) 151,122,480

Net asset value per share $ 94.42

STATEMENT OF OPERATIONSYear Ended

December 31, 2015

INVESTMENT INCOME:Dividends (net of foreign taxes of $3,724,034) $ 197,425,260Interest 190,225,233

387,650,493

EXPENSES:Management fees 75,758,904Custody and fund accounting fees 302,185Transfer agent fees 1,780,717Professional services 204,059Shareholder reports 339,208Registration fees 174,198Trustees’ fees 237,500Miscellaneous 1,065,235

79,862,006

NET INVESTMENT INCOME 307,788,487

REALIZED AND UNREALIZED GAIN (LOSS):Net realized gain (loss)

Investments 501,033,067Treasury futures contracts (8,435,099)

Net change in unrealized appreciation/depreciationInvestments (1,237,696,213)Treasury futures contracts 7,923,554

Net realized and unrealized loss (737,174,691)NET DECREASE IN NET ASSETS

FROM OPERATIONS $ (429,386,204)

STATEMENT OF CHANGES IN NET ASSETSYear Ended

December 31, 2015Year Ended

December 31, 2014

OPERATIONS:Net investment income $ 307,788,487 $ 298,744,812Net realized gain 492,597,968 399,919,057Net change in unrealized

appreciation/depreciation (1,229,772,659) 567,009,703

(429,386,204) 1,265,673,572

DISTRIBUTIONS TOSHAREHOLDERS FROM:

Net investment income (308,037,610) (298,877,158)Net realized gain (455,897,559) (359,115,663)

Total distributions (763,935,169) (657,992,821)

FUND SHARETRANSACTIONS:

Proceeds from sale of shares 1,416,791,531 1,944,425,723Reinvestment of distributions 725,183,002 624,013,075Cost of shares redeemed (2,144,401,683) (2,114,967,089)

Net increase/(decrease) fromFund share transactions (2,427,150) 453,471,709

Total increase/(decrease) innet assets (1,195,748,523) 1,061,152,460

NET ASSETS:Beginning of year 15,465,077,566 14,403,925,106

End of year (including undistributed netinvestment income of $3,251,258 and$3,500,381, respectively) $14,269,329,043 $15,465,077,566

SHARE INFORMATION:Shares sold 14,047,663 19,199,410Distributions reinvested 7,539,830 6,142,973Shares redeemed (21,376,698) (20,958,749)

Net increase in shares outstanding 210,795 4,383,634

See accompanying Notes to Financial Statements D O D G E & C O X B A L A N C E D F U N D ▪ P A G E 1 3

NOTES TO FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT

ACCOUNTING POLICIES

Dodge & Cox Balanced Fund (the “Fund”) is one of the seriesconstituting the Dodge & Cox Funds (the “Trust” or the “Funds”).The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. TheFund commenced operations on June 26, 1931, and seeks regularincome, conservation of principal, and an opportunity for long-term growth of principal and income. Risk considerations andinvestment strategies of the Fund are discussed in the Fund’sProspectus.

The financial statements have been prepared in conformitywith accounting principles generally accepted in the United Statesof America, which require the use of estimates and assumptions bymanagement. Actual results may differ from those estimates.Significant accounting policies are as follows:

Security valuation The Fund’s net assets are valued as of theclose of trading on the New York Stock Exchange (NYSE),generally 4:00 p.m. Eastern Time, each day that the NYSE is openfor business. If the NYSE is closed due to inclement weather,technology problems, or for any other reason on a day it wouldnormally be open for business, or the NYSE has an unscheduledearly closing on a day it has opened for business, the Fund reservesthe right to calculate the Fund’s NAV as of the normally scheduledclose of regular trading on the NYSE for that day, provided thatDodge & Cox believes that it can obtain reliable market quotes orvaluations. Portfolio securities and other financial instruments forwhich market quotes are readily available are valued at marketvalue. Listed securities are generally valued using the official quotedclose price or the last sale on the exchange that is determined to bethe primary market for the security.

Debt securities (including certain preferred stocks) and non-exchange traded derivatives are valued based on prices receivedfrom independent pricing services which utilize bothdealer-supplied valuations and pricing models. Pricing models mayconsider quoted prices for similar securities, interest rates,prepayment speeds, and credit risk. Exchange-traded derivatives arevalued at the settlement price determined by the relevantexchange. Security values are not discounted based on the size ofthe Fund’s position. Short-term securities less than 60 days tomaturity may be valued at amortized cost if amortized costapproximates current value. Mutual funds are valued at theirrespective net asset values. All securities held by the Fund aredenominated in U.S. dollars.

If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees. TheBoard of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies

(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised ofrepresentatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations arenot readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned to aparticular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.

Valuing securities through a fair value determination involvesgreater reliance on judgment than valuation of securities based onreadily available market quotations. In some instances, lack ofinformation and uncertainty as to the significance of informationmay lead to a conclusion that a prior valuation is the bestindication of a security’s value. When fair value pricing isemployed, the prices of securities used by the Fund to calculate itsNAV may differ from quoted or published prices for the samesecurities.

Security transactions, investment income, expenses,and distributions Security transactions are recorded on the tradedate. Realized gains and losses on securities sold are determined onthe basis of identified cost.

Dividend income and corporate action transactions arerecorded on the ex-dividend date, or when the Fund first learns ofthe dividend/corporate action if the ex-dividend date has passed.Withholding taxes on foreign dividends have been provided for inaccordance with the Fund’s understanding of the applicablecountry’s tax rules and rates. Non-cash dividends included individend income, if any, are recorded at the fair market value ofthe securities received. Dividends characterized as return of capitalfor U.S. tax purposes are recorded as a reduction of cost ofinvestments and/or realized gain.

Interest income is recorded on the accrual basis. Interestincome includes coupon interest, amortization of premium andaccretion of discount on debt securities, and gain/loss onpaydowns. The ability of the issuers of the debt securities held bythe Fund to meet their obligations may be affected by economicdevelopments in a specific industry, state, or region. Debtobligations may be placed on non-accrual status and relatedinterest income may be reduced by ceasing current accruals andwriting off interest receivables when the collection of all or aportion of interest has become doubtful. A debt obligation isremoved from non-accrual status when the issuer resumes interestpayments or when collectibility of interest is reasonably assured.

Expenses are recorded on the accrual basis. Some expenses ofthe Trust can be directly attributed to a specific series. Expenses

P A G E 1 4 ▪ D O D G E & C O X B A L A N C E D F U N D


which cannot be directly attributed are allocated among the Fundsin the Trust based on relative net assets or other expensemethodologies determined by the nature of the expense.

Distributions to shareholders are recorded on the ex-dividenddate.

Repurchase agreements The Fund enters into repurchaseagreements, secured by U.S. government or agency securities,which involve the purchase of securities from a counterparty witha simultaneous commitment to resell the securities at an agreed-upon date and price. It is the Fund’s policy that its custodian takepossession of the underlying collateral securities, the fair value ofwhich exceeds the principal amount of the repurchase transaction,including accrued interest, at all times. In the event of default bythe counterparty, the Fund has the contractual right to liquidatethe collateral securities and to apply the proceeds in satisfaction ofthe obligation.

Futures Contracts Futures contracts involve an obligation topurchase or sell (depending on whether the Fund has entered a longor short futures contract, respectively) an asset at a future date, at aprice set at the time of the contract. Upon entering into a futurescontract, the Fund is required to deposit an amount of cash or liquidassets (referred to as initial margin) in a segregated account with theclearing broker. Subsequent payments (referred to as variationmargin) to and from the clearing broker are made on a daily basisbased on changes in the market value of futures contracts. Futurescontracts are traded publicly and their market value changes daily.Changes in the market value of open futures contracts are recorded asunrealized appreciation or depreciation in the Statement ofOperations. Realized gains and losses on futures contracts arerecorded in the Statement of Operations at the closing or expirationof the contracts. Cash deposited with a broker as initial margin isrecorded on the Statement of Assets and Liabilities. A receivableand/or payable to brokers for daily variation margin is also recordedon the Statement of Assets and Liabilities.

Investments in futures contracts may include certain risks,which may be different from, and potentially greater than, those ofthe underlying securities. To the extent the Fund uses futures, it isexposed to additional volatility and potential losses resulting fromleverage.

The Fund has maintained short Treasury futures contracts toassist with the management of the portfolio’s interest rateexposure. During the year ended December 31, 2015, theseTreasury futures contracts had notional values ranging from 1% to3% of net assets.

Indemnification Under the Trust’s organizational documents,its officers and trustees are indemnified against certain liabilitiesarising out of the performance of their duties to the Trust. Inaddition, in the normal course of business the Trust enters intocontracts that provide general indemnities to other parties. TheTrust’s maximum exposure under these arrangements is unknown asthis would involve future claims that may be made against the Trustthat have not yet occurred.

NOTE 2—VALUATION MEASUREMENTS

Various inputs are used in determining the value of the Fund’sinvestments. These inputs are summarized in the three broad levelslisted below.▪ Level 1: Quoted prices in active markets for identical securities▪ Level 2: Other significant observable inputs (including quoted

prices for similar securities, market indices, interest rates, creditrisk, etc.)

▪ Level 3: Significant unobservable inputs (including Fundmanagement’s assumptions in determining the fair value ofinvestments)

The inputs or methodology used for valuing securities are notnecessarily an indication of the risk associated with investing inthose securities.

The following is a summary of the inputs used to value theFund’s holdings at December 31, 2015:

Classification(a)LEVEL 1

(Quoted Prices)

LEVEL 2(Other Significant

Observable Inputs)

SecuritiesCommon Stocks(b) $9,411,739,999 —Preferred Stocks — 615,614,419Debt Securities

U.S. Treasury — 315,171,614Government-Related — 288,062,144Mortgage-Related — 1,349,585,533Asset-Backed — 190,808,977Corporate — 1,877,566,036

Short-term InvestmentsMoney Market Fund 14,374,610 —Repurchase Agreement — 184,724,000

Total Securities $9,426,114,609 $4,821,532,723

Other Financial Instruments(c)

Treasury Futures ContractsAppreciation $ 781,542 $ —Depreciation (525,653) —

(a) U.S. Treasury securities were transferred from Level 1 to Level 2 during theyear. There were no Level 3 securities at December 31, 2015 and 2014, andthere were no transfers to Level 3 during the year.

(b) All common stocks held in the Fund are Level 1 securities. For a detailedbreak-out of common stocks by major industry classification, please refer tothe Portfolio of Investments.

(c) Represents unrealized appreciation/(depreciation).

NOTE 3—RELATED PARTY TRANSACTIONS

Management fees Under a written agreement approved by aunanimous vote of the Board of Trustees, the Fund pays an annualmanagement fee of 0.50% of the Fund’s average daily net assets toDodge & Cox, investment manager of the Fund.

Fund officers and trustees All officers and two of thetrustees of the Trust are officers or employees of Dodge & Cox.The Trust pays a fee only to those trustees who are not affiliatedwith Dodge & Cox.

Cross trades Cross trading is the buying or selling ofportfolio securities between funds to which Dodge & Cox serves asinvestment manager. At its regularly scheduled quarterly meetings,

D O D G E & C O X B A L A N C E D F U N D ▪ P A G E 1 5


the Board of Trustees reviews such transactions as of the mostrecent calendar quarter for compliance with the requirements andrestrictions set forth by Rule 17a-7 under the InvestmentCompany Act of 1940. During the year endingDecember 31, 2015, the Fund executed cross trades with theDodge & Cox Income Fund pursuant to Rule 17a-7 under theInvestment Company Act of 1940.

NOTE 4—INCOME TAX INFORMATION AND

DISTRIBUTIONS TO SHAREHOLDERS

A provision for federal income taxes is not required since the Fundintends to continue to qualify as a regulated investment companyunder Subchapter M of the Internal Revenue Code and distributeall of its taxable income to shareholders. Distributions aredetermined in accordance with income tax regulations, and suchamounts may differ from net investment income and realized gainsfor financial reporting purposes. Financial reporting records areadjusted for permanent book to tax differences at year end to reflecttax character.

Book to tax differences are primarily due to differing treatmentsof wash sales, net short-term realized gain (loss), and Treasury futurescontracts. At December 31, 2015, the cost of investments for federalincome tax purposes was $11,577,698,098.

Distributions during the years noted below were characterized asfollows for federal income tax purposes:

Year EndedDecember 31, 2015


Ordinary income $311,803,137 $357,296,853($2.085 per share) ($2.417 per share)

Long-term capital gain $452,132,032 $300,695,968($3.049 per share) ($2.020 per share)

At December 31, 2015, the tax basis components ofdistributable earnings were as follows:

Unrealized appreciation $3,115,795,334Unrealized depreciation (445,846,100)

Net unrealized appreciation 2,669,949,234Undistributed ordinary income 3,197,590Undistributed long-term capital gain 152,016,028

Fund management has reviewed the tax positions for openperiods (three years and four years, respectively, from filing the Fund’sFederal and State tax returns) as applicable to the Fund, and hasdetermined that no provision for income tax is required in the Fund’sfinancial statements.

NOTE 5—LOAN FACILITIES

Pursuant to an exemptive order issued by the Securities andExchange Commission (SEC), the Fund may participate in aninterfund lending facility (Facility). The Facility allows the Fundto borrow money from or loan money to the Funds. Loans underthe Facility are made for temporary or emergency purposes, such asto fund shareholder redemption requests. Interest on borrowings isthe average of the current repurchase agreement rate and the bankloan rate. There was no activity in the Facility during the year.

All Funds in the Trust participate in a $500 millioncommitted credit facility (Line of Credit) with State Street Bankand Trust Company, to be utilized for temporary or emergencypurposes to fund shareholder redemptions or for other short-termliquidity purposes. The maximum amount available to the Fund is$250 million. Each Fund pays an annual commitment fee on itspro-rata portion of the Line of Credit. For the year endedDecember 31, 2015, the Fund’s commitment fee amounted to$46,840 and is reflected as a Miscellaneous Expense in theStatement of Operations. Interest on borrowings is charged at theprevailing rate. There were no borrowings on the Line of Creditduring the year.

NOTE 6—PURCHASES AND SALES OF INVESTMENTS

For the year ended December 31, 2015, purchases and sales ofsecurities, other than short-term securities and U.S. governmentsecurities, aggregated $2,404,105,515 and $2,555,199,624, respectively.For the year ended December 31, 2015, purchases and sales of U.S.government securities aggregated $592,405,701 and $862,581,661,respectively.

NOTE 7—SUBSEQUENT EVENTS

Fund management has determined that no material events ortransactions occurred subsequent to December 31, 2015, andthrough the date of the Fund’s financial statements issuance, whichrequire additional disclosure in the Fund’s financial statements.


FINANCIAL HIGHLIGHTS

SELECTED DATA AND RATIOS(for a share outstanding throughout each year) Year Ended December 31,

2015 2014 2013 2012 2011

Net asset value, beginning of year $102.48 $98.30 $78.06 $67.45 $70.22Income from investment operations:

Net investment income 2.06 2.03 1.66 1.65 1.62Net realized and unrealized gain (loss) (4.99) 6.59 20.30 10.62 (2.77)

Total from investment operations (2.93) 8.62 21.96 12.27 (1.15)

Distributions to shareholders from:Net investment income (2.06) (2.03) (1.65) (1.66) (1.62)Net realized gain (3.07) (2.41) (0.07) — —

Total distributions (5.13) (4.44) (1.72) (1.66) (1.62)

Net asset value, end of year $94.42 $102.48 $98.30 $78.06 $67.45

Total return (2.88)% 8.85% 28.37% 18.32% (1.66)%Ratios/supplemental data:

Net assets, end of year (millions) $14,269 $15,465 $14,404 $12,217 $12,220Ratio of expenses to average net assets 0.53% 0.53% 0.53% 0.53% 0.53%Ratio of net investment income to average net assets 2.03% 2.00% 1.85% 2.21% 2.26%Portfolio turnover rate 20% 23% 25% 16% 19%

See accompanying Notes to Financial Statements


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox Balanced Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position ofDodge & Cox Balanced Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) at December 31, 2015, the results of itsoperations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financialhighlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in theUnited States of America. These financial statements and financial highlights (hereafter referred to as financial statements) are theresponsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. Weconducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating theoverall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, bycorrespondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLPSan Francisco, CaliforniaFebruary 25, 2016


SPECIAL 2015 TAX INFORMATION(unaudited)The following information is provided pursuant to provisions ofthe Internal Revenue Code:

The Fund designates $197,654,566 of its distributions paid toshareholders in 2015 as qualified dividends (treated for federalincome tax purposes in the hands of shareholders as taxable at amaximum rate of 20%).

For shareholders that are corporations, the Fund designates50% of its ordinary dividends paid to shareholders in 2015 asdividends from domestic corporations eligible for the corporatedividends received deduction, provided that the shareholderotherwise satisfies applicable requirements to claim that deduction.

BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing theperformance of the Dodge & Cox Funds’ investment manager anddetermining whether to continue the Investment ManagementAgreements between the Funds and Dodge & Cox each year (the“Agreements”). At a meeting of the Board of Trustees of the Trustheld on December 16, 2015, the Trustees, by a unanimous vote(including a separate vote of those Trustees who are not“interested persons” (as defined in the Investment Company Actof 1940) (the “Independent Trustees”)), approved the renewal ofthe Agreements for an additional one-year term throughDecember 31, 2016 with respect to each Fund. During the courseof the year, the Board received a wide variety of materials relatingto the investment management and administrative servicesprovided by Dodge & Cox and the performance of each of theFunds.

INFORMATION RECEIVED

In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided byDodge & Cox. The Independent Trustees retained Morningstar®

to prepare an independent expense and performance summary foreach Fund and comparable funds managed by other advisersidentified by Morningstar. The Morningstar materials includedinformation regarding advisory fee rates, expense ratios, andtransfer agency, custodial, and distribution expenses, as well asappropriate performance comparisons to each Fund’s peer groupand an index or combination of indices. The Morningstarmaterials also included a comparison of expenses of various shareclasses offered by comparable funds. The materials reviewed by theBoard contained information concerning, among other things,Dodge & Cox’s profitability, financial results and condition,advisory fee revenue, and separate account and sub-adviser fundfee schedules. The Board additionally considered the Funds’brokerage commissions, turnover rates, sales and redemption dataand the significant investment that Dodge & Cox makes inresearch used in managing the Funds. The Board received andreviewed memoranda and related materials addressing, among

other things, Dodge & Cox’s services to the Funds; how Dodge &Cox Funds’ fees compare to fees of peer group funds; the differentfees, services, costs, and risks associated with other accountsmanaged by Dodge & Cox as compared to the Dodge & CoxFunds; and the ways in which the Funds realize economies of scale.Throughout the process of reviewing the services provided byDodge & Cox and preparing for the meeting, the IndependentTrustees found Dodge & Cox to be open, forthright, detailed, andvery helpful in answering questions about all issues. The Boardreceived copies of the Agreements and a memorandum from theindependent legal counsel to the Independent Trustees discussingthe factors generally regarded as appropriate to consider inevaluating advisory arrangements. The Trust’s Contract ReviewCommittee, consisting solely of Independent Trustees, met withthe independent legal counsel on November 11, 2015, and againon December 16, 2015, to discuss whether to renew theAgreements. The Board, including the Independent Trustees,subsequently concluded that the existing Agreements are fair andreasonable and voted to approve the Agreements. In consideringthe Agreements, the Board, including the Independent Trustees,did not identify any single factor or particular information as all-important or controlling. In reaching the decision to approve theAgreements, the Board considered several factors, discussed below,to be key factors and reached the conclusions described below.

NATURE, QUALITY, AND EXTENT OF THE SERVICES

The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through itswebsite and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and itsreputation as a trusted, shareholder-friendly mutual fund family. In


addition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionalsthan most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.

INVESTMENT PERFORMANCE

The Board considered short-term and long-term investmentperformance for each Fund (including periods of outperformance orunderperformance) as compared to both relevant indices and theperformance of such Fund’s peer group. The Board noted that theFunds had weak absolute and relative performance in 2015, butremained solid performers over longer periods. The Boarddetermined after extensive review and inquiry that Dodge & Cox’shistoric, long-term, team-oriented, bottom-up investment approachremains consistent and that Dodge & Cox continues to bedistinguished by its integrity, transparency, and independence. TheBoard considered that the performance of the Funds is the result ofa team-oriented investment management process that emphasizes along-term investment horizon, comprehensive independentresearch, price discipline, low cost and low portfolio turnover. TheBoard also considered that the investment performance deliveredby Dodge & Cox to the Funds appeared to be consistent with therelevant performance delivered for other clients of Dodge & Cox.The Board concluded that Dodge & Cox has delivered favorablelong-term performance for Fund investors consistent with the long-term investment strategies being pursued by the Funds.

COSTS AND ANCILLARY BENEFITS

Costs of Services to Funds: Fees and Expenses. The Boardconsidered each Fund’s management fee rate and expense ratiorelative to each Fund’s peer group and relative to management feescharged by Dodge & Cox to other clients. In particular, the Boardconsidered that the Funds continue to be substantially below theirpeer group median in expense ratios and that many media andindustry reports specifically comment on the low expense ratios ofthe Funds, which have been a defining characteristic of the Fundsfor many years. The Board also evaluated the operating structuresof the Funds and Dodge & Cox, noting that the Funds do notcharge front-end sales commissions or distribution fees, andDodge & Cox bears, among other things, the significant cost ofthird party research, reimbursement for recordkeeping andadministrative costs to third-party retirement plan administrators,and administrative and office overhead.

The Board noted that expenses are well below industryaverages. When compared to peer group funds, the Funds are inthe quartile with the lowest expense ratios. The Board alsoconsidered that the Funds receive numerous administrative,regulatory compliance, legal, technology and shareholder supportservices from Dodge & Cox without any additional administrativefee and the fact that the Funds have relatively low transactioncosts and portfolio turnover rates. The Board noted the Funds’unusual single-share-class structure and reviewed Morningstar datashowing that the few peer group funds with lower expense ratiosoften have other share classes with significantly higher expenseratios. In this regard, the Board considered that many of the Funds’shareholders would not be eligible to purchase comparably-pricedshares of many peer group funds, which typically make their lower-priced share classes available only to institutional investors. TheBoard determined that the Funds provide access for small investorsto high quality investment management at a relatively low cost.

The Board reviewed information regarding the fee ratesDodge & Cox charges to separate accounts and subadvised fundsthat have investment programs similar to those of the Funds,including instances where separate account and sub-advised fundfees are lower than Fund fees. The Board considered differences inthe nature and scope of services Dodge & Cox provides to theFunds as compared to other client accounts, differences inregulatory, litigation, and other risks as between Dodge & CoxFunds and other types of clients. The Board also noted thatdifferent markets exist for mutual fund and institutional separateaccount management services. With respect to non-U.S. fundssponsored and managed by Dodge & Cox that are comparable tothe Funds in many respects, the Board noted that the fee ratescharged by Dodge & Cox are the same as or higher than the feerates charged to the Funds. After consideration of these matters, theBoard concluded that the overall costs incurred by the Funds forthe services they receive (including the management fee paid toDodge & Cox) are reasonable and that the fees are acceptable basedupon the qualifications, experience, reputation, and performance ofDodge & Cox and the low overall expense ratios of the Funds.

Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports ofDodge & Cox’s financial position, profitability, and estimatedoverall value, and considered Dodge & Cox’s overall profitabilitywithin its context as a private, employee-owned S-Corporationand relative to the favorable services provided. The Board noted inparticular that Dodge & Cox’s profits are not generated by high feerates, but reflect an extraordinarily streamlined, efficient, andfocused business approach toward investment management. TheBoard recognized the importance of Dodge & Cox’s profitability—which is derived solely from management fees and does notinclude other business ventures—to maintain its independence,stability, company culture and ethics, and management continuity.The Board also considered that the compensation/profit structureat Dodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independentand facilitating retention of management and investmentprofessionals. The Board considered independent research


indicating that firms that grow organically, rather than throughacquisition, tend to have better performance. Key to organicgrowth is the ability to retain talented and experienced analysts,portfolio managers and other professionals.

The Board also considered that in January 2015,Dodge & Cox closed the International Stock Fund to newinvestors to pro-actively manage the growth of the Fund. TheStock Fund and Balanced Fund were similarly closed to newinvestors during periods of significant growth in the past. Whilethese actions are intended to benefit existing shareholders, theeffect is to reduce potential revenues to Dodge & Cox from newshareholders. The Board also considered potential “fall-out”benefits (including the receipt of research from unaffiliated brokersand reputational benefits to non-U.S. funds sponsored andmanaged by Dodge & Cox) that Dodge & Cox might receive as aresult of its association with the Funds and determined that theyare acceptable. The Board also noted that Dodge & Cox continuesto invest substantial sums in its business in order to provideenhanced services, systems and research capabilities, all of whichbenefit the Funds. The Board concluded that Dodge & Cox’sprofitability is the keystone of its independence, stability and long-term investment performance and that the profitability ofDodge & Cox’s relationship with the Funds (including fall-outbenefits) is fair and reasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In theBoard’s view, any consideration of economies of scale must takeaccount of the Funds’ low fee structure and the considerableefficiencies of the Funds’ organization and fee structure that hasbeen realized by shareholders from the time of each Fund’s inception(i.e., from the first dollar). An assessment of economies of scale mustalso take into account that Dodge & Cox invests significant timeand resources in each new Fund for months (and sometimes years)prior to launch; in addition, expenses are capped, which means thatDodge & Cox earns no revenue and subsidizes the operations of anew Fund for a period of time until it reaches scale.

In addition, the Board noted that Dodge & Cox has sharedeconomies of scale by adding or enhancing services to the Fundsover time, and that the internal costs of providing investmentmanagement, up-to-date technology, administrative, legal, andcompliance services to the Funds continue to increase. Forexample, Dodge & Cox has increased its global research staff andinvestment resources over the years to address the increasedcomplexity of investing in multinational and non-U.S. companies.In addition, Dodge & Cox has made substantial expenditures inother staff, technology, cybersecurity, and infrastructure to enableit to integrate credit and equity analyses and to be able toimplement its strategy in a more effective and secure manner. Overthe last ten years, Dodge & Cox has increased its spending onthird party research, data services, trading systems, technology, andrecordkeeping service expenses at a rate that has significantlyoutpaced the Funds’ growth rate during the same period.

The Board considered that Dodge & Cox has a history ofvoluntarily limiting asset growth in several Funds that experiencedsignificant inflows by closing them to new investors in order toprotect the Funds’ ability to achieve good investment returns forshareholders. The Board also observed that, even without feebreakpoints, the Funds are competitively priced in a verycompetitive market and that having a low fee from inception isbetter for shareholders than starting with a higher fee and addingbreakpoints. The Board concluded that the current Dodge & Coxfee structure is fair and reasonable and adequately shareseconomies of scale that may exist.

CONCLUSION

Based on their evaluation of all material factors and assisted by theadvice of independent legal counsel to the Independent Trustees,the Board, including the Independent Trustees, concluded that theadvisory fee structure was fair and reasonable, that each Fund waspaying a competitive fee for the services provided, that the scopeand quality of Dodge & Cox’s services has provided substantialvalue for Fund shareholders over the long term, and that approvalof the Agreements was in the best interests of each Fund and itsshareholders.

FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the listswith the SEC on Form N-CSR (second and fourth quarters) andForm N-Q (first and third quarters). Shareholders may view theFund’s Forms N-CSR and N-Q on the SEC’s website at sec.gov.Forms N-CSR and N-Q may also be reviewed and copied at theSEC’s Public Reference Room in Washington, DC. Informationregarding the operations of the Public Reference Room may beobtained by calling 202-551-8090 (direct) or 800-732-0330(general SEC number). A list of the Fund’s quarter-end holdings isalso available at dodgeandcox.com on or about 15 days followingeach quarter end and remains available on the website until thelist is updated in the subsequent quarter.

PROXY VOTINGFor a free copy of the Fund’s proxy voting policies and procedures,please call 800-621-3979, visit the Fund’s website atdodgeandcox.com, or visit the SEC’s website at sec.gov.Information regarding how the Fund voted proxies relating toportfolio securities during the most recent 12-month period endingJune 30 is also available at dodgeandcox.com or at sec.gov.

HOUSEHOLD MAILINGSThe Fund routinely mails shareholder reports and summaryprospectuses to shareholders and, on occasion, proxy statements.In order to reduce the volume of mail, when possible, only onecopy of these documents will be sent to shareholders who are partof the same family and share the same residential address.

If you have a direct account with the Funds and you do notwant the mailing of shareholder reports and summary prospectusescombined with other members in your household, contact the Fundsat 800-621-3979. Your request will be implemented within 30 days.


THIS PAGE INTENTIONALLY LEFT BLANK


DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION

Name (Age) andAddress*

Position with Trust(Year of Election orAppointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees

INTERESTED TRUSTEES AND EXECUTIVE OFFICERSCharles F. Pohl (57) Chairman and

Trustee(Officer since 2004)

Chairman (since 2013), Co-President (2011-2013), Senior Vice President(until 2011), and Director of Dodge & Cox; Chief Investment Officer, PortfolioManager, Investment Analyst, and member of Investment Policy Committee(IPC), Global Stock Investment Policy Committee (GSIPC), InternationalInvestment Policy Committee (IIPC), and Fixed Income Investment PolicyCommittee (FIIPC)

—

Dana M. Emery(54)

President and Trustee(Trustee since 1993)

Chief Executive Officer (since 2013), President (since 2011), Executive VicePresident (until 2011), and Director of Dodge & Cox; Director of FixedIncome, Portfolio Manager, and member of FIIPC and Global BondInvestment Policy Committee (GBIPC)

—

John A. Gunn (72) Senior Vice President(Officer since 1998)

Chairman Emeritus (2011-2013), Chairman (until 2011), Chief ExecutiveOfficer (until 2010), and Director (until 2013) of Dodge & Cox; PortfolioManager and member of IPC, GSIPC (until 2014), and IIPC (until 2015)

—

Diana S. Strandberg(56)

Senior Vice President(Officer since 2006)

Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Director of International Equity (since 2009),Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC,and GBIPC

—

David H. Longhurst(58)

Treasurer(Officer since 2006)

Vice President and Assistant Treasurer of Dodge & Cox —

Thomas M. Mistele(62)

Secretary(Officer since 1998)

Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011),and General Counsel (until 2011) of Dodge & Cox

—

Katherine M. Primas(41)

Chief ComplianceOfficer(Officer since 2009)

Vice President (since 2011) and Chief Compliance Officer of Dodge & Cox —

INDEPENDENT TRUSTEESThomas A. Larsen(66)

Trustee(Since 2002)

Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner ofArnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski,Canady, Falk & Rabkin (1977-2011)

—

Ann Mather (55) Trustee(Since 2011)

CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet informationservices) (since 2005); Director, Glu Mobile,Inc. (multimedia software) (since 2005);Director, Netflix, Inc. (internet television)(since 2010); Director, Arista Networks (cloudnetworking) (since 2013); Director, Shutterfly,Inc. (internet photography services/publishing)(since 2013)

Robert B. Morris III(63)

Trustee(Since 2011)

Advisory Director, The Presidio Group (since 2005) —

Gary Roughead (64) Trustee(Since 2013)

Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012);Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations(2008-2011)

Director, Northrop Grumman Corp. (globalsecurity) (since 2012)

Mark E. Smith (64) Trustee(Since 2014)

Executive Vice President, Managing Director—Fixed Income at Loomis Sayles& Company, L.P. (2003-2011)

—

John B. Taylor (69) Trustee(Since 2005)(and 1995-2001)

Professor of Economics, Stanford University (since 1984); Senior Fellow,Hoover Institution (since 1996); Under Secretary for International Affairs,United States Treasury (2001-2005)

—

* The address for each Officer and Trustee is 555 California Street, 40th Floor, San Francisco, California 94104. Each Officer and Trusteeoversees all six series in the Dodge & Cox Funds complex and serves for an indefinite term.

Additional information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information (SAI).You can get a free copy of the SAI by visiting the Funds’ website at dodgeandcox.com or calling 800-621-3979.


Balanced Fund

dodgeandcox.com

For Fund literature, transactions, and accountinformation, please visit the Funds’ website.

or write or call:

DODGE & COX FUNDS

c/o Boston Financial Data ServicesP.O. Box 8422Boston, Massachusetts 02266-8422(800) 621-3979

INVESTMENT MANAGER

Dodge & Cox555 California Street, 40th FloorSan Francisco, California 94104(415) 981-1710

This report is submitted for the general information of the shareholders of the Fund. The report is not authorized for distributionto prospective investors in the Fund unless it is accompanied by a current prospectus.

This report reflects our views, opinions, and portfolio holdings as of December 31, 2015, the end of the reporting period.Any such views are subject to change at any time based upon market or other conditions and Dodge & Cox disclaims anyresponsibility to update such views. These views may not be relied on as investment advice and, because investment decisionsfor a Dodge & Cox Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf ofany Dodge & Cox Fund.


2015


Global Bond FundE S T A B L I S H E D 2 0 1 4

T I C K E R : D O D L X

12/15 GBF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox Global Bond Fund had a total return of –6.2%for the year ending December 31, 2015, compared to –3.2% for theBarclays Global Aggregate Bond Index (Barclays Global Agg).

MARKET COMMENTARY

Market volatility increased throughout 2015, particularly in latesummer following China’s decision to devalue the renminbi.Numerous concerns contributed to “risk-off” behavior, includingChina’s ongoing structural adjustments, further declines incommodity prices, financial and political turmoil in some emergingmarkets, and important policy moves by major central banks. TheU.S. dollar continued to strengthen against almost all currencies,which was the main driver of the Barclays Global Agg’s negativereturn, as it overwhelmed the income earned during the year.Widening yield premiums(a) also drove price declines for creditsecurities(b).

Global economic and policy divergence continued during2015. The U.S. economy saw another year of solid growthunderpinned by dynamism in consumption, investment, housing,and the labor market, which offset weakness in the manufacturingsector. The U.S. Federal Reserve (Fed) increased the federal fundsrate by 0.25 percentage points after seven years at the so-calledzero lower bound, citing progress in the recovery and assessing thatinflation should move towards the 2% target over the mediumterm. In contrast, the economic outlook in the Eurozone remainedchallenged by considerable slack and weak inflation. This led theEuropean Central Bank to continue easing during the year, takingdeposit rates further into negative territory, extending its assetpurchase program until at least March 2017, and expanding thepool of purchasable securities. Facing similar challenges, the Bankof Japan introduced measures to augment its already largeQuantitative and Qualitative Easing Program. Despite large intra-year swings, 10-year yields in the United States, Germany, andJapan ended the year nearly unchanged at 2.27%, 0.63%, and0.27%, respectively. The euro and the Japanese yen depreciated by10.2% and 0.4%, respectively, against the U.S. dollar.

Emerging markets faced significant headwinds during 2015.China’s growth deceleration below 7%, the slowest yearly pace inyears, dampened the outlook of its main trading partners and putdownward pressure on global commodity prices. In particular, oilprices declined to the lowest level since the financial crisis,affecting growth and fiscal dynamics of exporting countries.Idiosyncratic events also contributed to financial turmoil in someemerging markets, such as Brazil and South Africa. In turn,interest rates rose in several emerging markets and many currenciesdepreciated against the U.S. dollar—ranging from the Brazilianreal’s 32.9% at the higher end, to the Indian rupee’s 4.7% at thelower end. As in 2014, Asian oil importers and countries witheconomic reform momentum fared better than commodityexporters or countries with political challenges.

Investment-grade corporate bonds performed relatively poorlyas yield premiums widened, especially during the third quarter.Energy, basic materials and/or below-investment grade issuers fared

worst, while financials were among the strongest performers.Supply and demand dynamics were negative, as supply was highdue to record levels of M&A financing and demand weakenedgiven accelerating outflows from credit funds in the second half ofthe year.

INVESTMENT STRATEGY

2015 was a challenging year for the Fund as currency depreciationand widening credit yield premiums drove negative performance.Declining commodity prices and weakness in several emergingmarket economies and credits had a particularly large negativeimpact on the Fund.

The broad investment themes of the Fund remained largelyintact over the course of the year, but positioning shifted,substantially in some areas, as our conviction around some existingthemes grew. The Fund continues to have a defensive posture viainterest rate risk (i.e., low duration(c)), a majority of holdings incredit securities, high exposure to the U.S. dollar, and a sizable(27%(d)) exposure to emerging market currencies and credits. Asthe valuation and economic landscape evolved over the year, weincreased the Fund’s credit exposure, decreased foreign currencyexposure, and reduced interest rate exposure.

Credit: Identifying Opportunit iesThe Fund’s large allocation to credit securities was a detractor fromperformance, as credit yield premiums rose to levels not seen since2013. Within the Fund’s credit holdings, commodity-relatedissuers such as Kinder Morgan, Rio Oil Finance Trust, andPemex,(e) had the weakest performance. Amid this changingvaluation backdrop, we found a number of individual opportunitiesthat resulted in an increase in the Fund’s corporate bondweighting, from 51% to 58%. We added to a diverse group ofissuers by geography, sector, and credit rating category.

One source of credit additions to the Fund was M&A-relatedfinancing, which created an abundant source of supply for themarkets to absorb. Many companies seek to delever subsequent tothese transactions, aligning incentives with bondholders. Ourglobal industry analyst team develops a view of the strategicrationale for each M&A transaction and compiles a financialforecast that enables us to assess issuers’ deleveraging capabilitiesacross a range of outcomes, while our fixed income analyst teamfocuses on the balance sheet and liquidity implications,particularly in downside scenarios. Examples of recent M&A-related investments include Actavis (a pharmaceutical companybuying Allergen), CRH (a building materials company buyingassets from Lafarge and Holcim), and Imperial Tobacco(purchasing assets from Reynolds American).

We also conducted considerable research on the energy andmetals & mining sectors, where valuations changed mostsignificantly, seeking credits trading at attractive valuations withstrong business franchises and the ability to withstand lowercommodity prices for a sustained period. We made severaladditions to the portfolio including a position in ConchoResources, an independent exploration and production company

P A G E 2 ▪ D O D G E & C O X G L O B A L B O N D F U N D

and one of the largest producers in the Permian Basin. ConchoResources has one of the lowest break-even oil prices in theindustry, significant valuable oil reserves, and a strongmanagement team with a conservative approach to leverage.Another addition to the portfolio was Chilean state-ownedCodelco, the world’s largest copper producer, accounting foraround 10% of global copper production. We believe the strongAA-rated Chilean sovereign would support Codelco if needed, andthat the long-term supply and demand outlook for copper isfavorable given limited supply and consumer-driven demand.

While credit spreads ended the year at levels reflecting aperceived rise in defaults or a potential recession, we do notbelieve that either scenario is likely. Leverage levels arereasonable, interest coverage is robust, and the U.S. economy isgrowing at a moderate pace. As such, we believe many bonds aretrading at attractive levels. The wide dispersion of valuations incredit today is conducive to our rigorous research process and focuson security selection. We remain optimistic about the prospects forthe Fund’s credit holdings.

Currency: Strong U.S. Dollar ContinuesAs in 2014, nearly every currency depreciated against the U.S.dollar in 2015. These declines hurt the Fund’s performance,especially the depreciation of several Latin American currenciesthat accelerated in the latter half of the year. However, relative tothe Barclays Global Agg, on the whole, the Fund’s currencypositioning was slightly additive to performance, largely because ofthe Fund’s significant underweight to the euro.

During the year, we significantly increased the Fund’s U.S.dollar weighting (from 61% to 78%) as the divergence ineconomic strength and monetary policy between the United Statesand much of the rest of the world was cemented. Early in the year,we reduced exposure to the euro and other euro-correlatedcurrencies (e.g., Swedish krona and British pound). These trimswere driven by low yield levels and the likelihood that theEuropean Central Bank would take actions that could weaken theeuro versus the dollar. Later in the year, in the midst of weakeningChinese growth and a change to the Chinese currency regime, wereduced the Fund’s exposure to Asian emerging market currencies,including the Malaysian ringgit, the Indonesian rupiah, and theSouth Korean won. Depreciation pressure for these currencies islikely to continue as they are exporters to China and/orcompetitors with China. One brighter spot in the region is India,as it has fewer linkages with China, positive reform momentum,accelerating growth, solid macro policies, and is a net beneficiaryfrom lower oil prices. In accordance with this favorable view, weincreased the Fund’s exposure to the Indian rupee during the year.

Approximately 13% of the Fund’s holdings are denominatedin four Latin American currencies (Mexican peso, Brazilian real,Colombian peso, and Chilean peso), which have been battered bya number of forces including commodity price declines, weakeningsentiment towards emerging markets, and idiosyncratic challengesin the case of Brazil. Our constructive outlook for these currenciesis based on their mix of high yield levels, low valuations, theprospect for a stabilization or recovery of commodity prices, and, inthe case of Mexico, the medium-run benefits of structural reforms.

Rates: What Happens After “Liftoff”?Developed market rates ended relatively unchanged over thecourse of 2015, despite important central bank moves, incessantmedia commentary about U.S. long-term rates, and some intra-year volatility. The U.S. 10-year rate increased just 0.1 percentagepoints during the year, and Japanese and German 10-year yieldsmoved even less.

Our views regarding interest rate risk have not changedmaterially. We are operating in an environment where the priceimpact of a rise in rates could easily overwhelm the low yield/income of most developed market government bonds. As such, theFund’s duration is 3.1 years, less than half that of the BarclaysGlobal Agg. We see a clear disconnect between the far slower paceof rate increases implied by current U.S. Treasury valuations andthe Fed’s stated expectations and, particularly in the context of amodestly expanding economy (more than 2% growth is expectedover the next several years) and an inflation rate likely to rise asenergy and import prices increase.

IN CLOSING

The Fund’s recent performance has been disappointing, but weretain a view that the vast global bond universe provides ampleopportunity for investors over the long term. We remain confidentin our investment strategy and process, which is based on robustfundamental research and a focus on relative valuation, andbelieve the current environment is conducive to our disciplinedcredit and currency selection processes. Acknowledging that bondprices and currencies can be volatile in the short term, we remainfocused on the long term.





January 29, 2016

(a) Yield premiums are one way to measure a security’s valuation. Narrowingyield premiums result in a higher valuation. Widening yield premiums resultin a lower valuation.

(b) Credit securities refers to corporate bonds and government-related securities,as classified by Barclays.

(c) Duration is a measure of a bond’s (or a bond portfolio’s) price sensitivity tochanges in interest rates.

(d) Unless otherwise specified, all weightings and characteristics are as ofDecember 31, 2015.

(e) The use of specific examples does not imply that they are more attractiveinvestments than the Fund’s other holdings.

D O D G E & C O X G L O B A L B O N D F U N D ▪ P A G E 3

ANNUAL PERFORMANCE REVIEWThe Fund underperformed the Barclays Global Agg by 3.0percentage points in 2015.

Key Detractors from Relat ive Results▪ The Fund’s exposure to Latin American currencies (13%

versus 0.4% for the Barclays Global Agg), including theBrazilian real, Mexican peso, Colombian peso, and Chileanpeso, detracted from relative returns as these currenciesdepreciated versus the U.S. dollar.

▪ The Fund’s commodity-related credit holdings underperformed,led by Kinder Morgan and Teck Resources in North America,as well as Pemex, Petrobras, and Rio Oil Finance Trust in LatinAmerica.

▪ The Fund’s relatively high corporate exposure (51% versus17% for the Barclays Global Agg) detracted from relativereturns as corporate yield premiums rose.

Key Contributors to Relat ive Results▪ The Fund’s underweight to the euro (6% versus 26% for the

Barclays Global Agg) contributed significantly to relativereturns as the euro depreciated 10.2% versus the U.S. dollar.

▪ The Fund’s nominal yield advantage was a positive factor.

Unless otherwise noted, figures cited in this section denote Fundpositioning at the beginning of the period.



Experienced Investment TeamThe Global Bond Investment Policy Committee, which is thedecision-making body for the Global Bond Fund, is a six-member committee with an average tenure at Dodge & Cox of20 years.




Risks: The yields and market values of the instruments in whichthe Fund invests may fluctuate. Accordingly, an investment maybe worth more or less than its original cost. Debt securities aresubject to interest rate risk, credit risk, and prepayment and callrisk, all of which could have adverse effects on the value of theFund. A low interest rate environment creates an elevated risk offuture negative returns. Financial intermediaries may restricttheir market making activities for certain debt securities, whichmay reduce the liquidity and increase the volatility of suchsecurities. Investing in non-U.S. securities may entail risk due toforeign economic and political developments; this risk may beincreased when investing in emerging markets. The Fund is alsosubject to currency risk. Please read the prospectus andsummary prospectus for specific details regarding the Fund’s riskprofile.


GROWTH OF $10,000 SINCE INCEPTIONFOR AN INVESTMENT MADE ON DECEMBER 5, 2012

Dodge & Cox Global Bond Fund $9,801(a)

Barclays Global Agg $9,416

12/5/12 12/31/1412/31/13 12/31/155,000

10,000

$20,000


1 Year 3 Years

SinceInception(12/5/12)

Dodge & Cox Global Bond Fund(a) –6.21% –0.73% –0.65%Barclays Global Aggregate Bond Index

(Barclays Global Agg) –3.17 –1.74 –1.93

(a) Expense reimbursements have been in effect for the Fund since its inception.Without the expense reimbursements, returns for the Fund would have beenlower. The Fund’s returns from May 1, 2014 to December 31, 2014 and fromJanuary 1, 2015 to December 31, 2015 are as presented in the FinancialHighlights.

Returns represent past performance and do not guarantee futureresults. Investment return and share price will fluctuate withmarket conditions, and investors may have a gain or loss whenshares are sold. Fund performance changes over time and currentlymay be significantly lower than stated. Performance is updated andpublished monthly. Visit the Fund’s website at dodgeandcox.com orcall 800-621-3979 for current performance figures.

A private fund managed and funded by Dodge & Cox (the “PrivateFund”) was reorganized into the Fund and the Fund commencedoperations on May 1, 2014. The Private Fund commencedoperations on December 5, 2012 and had an investment objective,policies, and strategies that were, in all material respects, the sameas those of the Fund, and was managed in a manner that, in allmaterial respects, complied with the investment guidelines andrestrictions of the Fund. However, the Private Fund was notregistered as an investment company under the InvestmentCompany Act of 1940 (the “1940 Act”), and therefore was notsubject to certain investment limitations, diversificationrequirements, liquidity requirements, and other restrictions imposedby the 1940 Act and the Internal Revenue Code, which, ifapplicable, may have adversely affected its performance.

The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for any incometaxes payable by shareholders on these distributions or on Fund shareredemptions. Index returns include interest income but, unlike Fundreturns, do not reflect fees or expenses. The Barclays GlobalAggregate Bond Index (Barclays Global Agg) is a widely recognized,unmanaged index of multi-currency investment-grade, debt securities.

Barclays® is a trademark of Barclays Bank PLC.

FUND EXPENSE EXAMPLEAs a Fund shareholder, you incur ongoing Fund costs, including management fees and other Fund expenses. All mutual funds have ongoing costs,sometimes referred to as operating expenses. The following example shows ongoing costs of investing in the Fund and can help you understandthese costs and compare them with those of other mutual funds. The example assumes a $1,000 investment held for the six months indicated.

ACTUAL EXPENSES



Information on the second line of the table can help you compare ongoing costs of investing in the Fund with those of other mutual funds. Thisinformation may not be used to estimate the actual ending account balance or expenses you paid during the period. The hypothetical “EndingAccount Value” is based on the actual expense ratio of the Fund and an assumed 5% annual rate of return before expenses (not the Fund’s actualreturn). The amount under the heading “Expenses Paid During Period” shows the hypothetical expenses your account would have incurredunder this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports of other mutual funds.






* Expenses are equal to the Fund’s annualized net expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 184/365 (to reflectthe one-half year period).


D O D G E & C O X G L O B A L B O N D F U N D ▪ P A G E 5


GENERAL INFORMATION

Net Asset Value Per Share $9.67Total Net Assets (millions) $67.730-Day SEC Yield (using net expenses)(a)(b) 4.52%30-Day SEC Yield (using gross expenses)(a) 3.71%Net Expense Ratio(b) 0.60%2015 Gross Expense Ratio 1.41%Portfolio Turnover Rate 55%Number of Credit Issuers 55Fund Inception May 1, 2014No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed by theGlobal Bond Investment Policy Committee, whose six members’average tenure at Dodge & Cox is 20 years.

PORTFOLIO CHARACTERISTICS FundBarclays

Global Agg

Effective Duration (years) 3.1 6.6Emerging Markets(c) 27.3% 5.0%

FIVE LARGEST CREDIT ISSUERS (%)( d ) Fund

Cemex SAB de CV 2.5Millicom International Cellular SA 2.2Chicago Transit Authority RB 2.2Naspers, Ltd. 2.2Imperial Tobacco Group PLC 2.0

CREDIT QUALITY (%)( e ) ( g ) FundBarclays

Global Agg

Aaa 12.4 41.0Aa 3.6 16.8A 16.0 26.1Baa 44.8 16.1Ba 16.9 0.0B 3.5 0.0Cash Equivalents 2.8 0.0

ASSET ALLOCATION

Net Cash& Other:(f) 2.8%


SECTOR DIVERSIFICATION (%)( g ) FundBarclays

Global Agg

Government 17.5 54.0Government-Related 8.9 12.4Securitized 13.3 15.7Corporate 57.5 17.9Cash Equivalents 2.8 0.0

REGION DIVERSIFICATION (%)( c ) ( g ) FundBarclays

Global Agg

United States 50.1 38.9Latin America 23.1 1.1Europe (excluding United Kingdom) 8.7 25.9United Kingdom 7.9 6.2Africa/Middle East 3.1 0.8Canada 2.7 3.1Pacific (excluding Japan) 1.6 5.1Japan 0.0 16.5Other 0.0 2.4

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) Dodge & Cox has contractually agreed to reimburse the Fund for all ordinary expenses to the extent necessary to maintain Total Annual Fund Operating expenses

at 0.60% through April 30, 2016. The term of the agreement renews annually thereafter unless terminated with 30 days’ written notice by either party prior to theend of the term.

(c) The Fund may classify an issuer in a different category than the Barclays Global Aggregate Bond Index. The Fund generally classifies a corporate issuer based onthe country of incorporation of the parent company, but may designate a different country in certain circumstances.

(d) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particularsecurity and is not indicative of Dodge & Cox’s current or future trading activity.

(e) The credit quality distributions shown for the Fund and the Index are based on the middle of Moody’s, S&P’s, and Fitch ratings, which is the methodology used byBarclays in constructing its indices. If a security is rated by only two agencies, the lower of the two ratings is used. Please note the Fund applies the highest ofMoody’s, S&P’s, and Fitch ratings to comply with the quality requirements stated in its prospectus. On that basis, the Fund held 13.1% in securities rated belowinvestment grade. The credit quality of the investments in the portfolio does not apply to the stability or safety of the Fund or its shares.

(f) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,payables, and unrealized appreciation/depreciation on certain derivatives).

(g) Excludes the Fund’s derivative contracts.




PAR VALUE VALUE

GOVERNMENT: 17.5%Brazil Government (Brazil)

Series F, 10.00%, 1/1/21 BRL 3,355,000 $ 675,044Series F, 10.00%, 1/1/25 BRL 2,900,000 524,272

Chile Government GDN (Chile)6.00%, 1/1/18(c) CLP 905,000,000 1,323,807

Colombia Government (Colombia)9.85%, 6/28/27 COP 3,900,000,000 1,402,378

Mexico Government (Mexico)4.75%, 6/14/18 MXN 23,200,000 1,352,5732.00%, 6/9/22(a) MXN 71,166,039 3,859,355

South Korea Government (South Korea)3.00%, 12/10/16 KRW 880,200,000 760,138

U.S. Treasury Note/Bond(United States)0.875%, 11/30/17 USD 1,950,000 1,944,544

11,842,111GOVERNMENT-RELATED: 8.9%Brazil Government International (Brazil)

4.25%, 1/7/25 USD 850,000 684,250Chicago Transit Authority RB

(United States)6.20%, 12/1/40 USD 50,000 54,2496.899%, 12/1/40 USD 1,250,000 1,452,774

Corp. Nacional del Cobre de Chile(Chile)4.50%, 9/16/25(c) USD 375,000 353,129

Peru Government International (Peru)4.125%, 8/25/27 USD 700,000 686,000

Petroleo Brasileiro SA (Brazil)7.25%, 3/17/44 USD 550,000 371,250

Petroleos Mexicanos (Mexico)2.75%, 4/21/27 EUR 425,000 339,2125.50%, 6/27/44(c) USD 175,000 131,6606.375%, 1/23/45 USD 485,000 412,137

State of California GO (United States)6.20%, 10/1/19 USD 325,000 372,730

State of Illinois GO (United States)4.961%, 3/1/16 USD 400,000 402,4765.665%, 3/1/18 USD 700,000 741,195

6,001,062SECURITIZED: 13.3%Chase Issuance Trust (United States)

Series 2007-A3 A3, 5.23%, 4/15/19 USD 419,000 437,502Fannie Mae, 15 Year (United States)

5.00%, 7/1/25 USD 35,130 36,976Fannie Mae, 20 Year (United States)

4.50%, 6/1/31 USD 267,621 291,3594.00%, 10/1/34 USD 364,507 389,934

Fannie Mae, Hybrid ARM(United States)2.915%, 8/1/44 USD 235,817 242,1102.759%, 9/1/44 USD 422,977 433,242

Ford Credit Auto Owner Trust(United States)Series 2012-B A4, 1.00%, 9/15/17 USD 194,682 194,698Series 2014-C A3, 1.06%, 5/15/19 USD 880,000 877,890

PAR VALUE VALUE

Freddie Mac (United States)Series 4283 EW, 4.683%, 12/15/43 USD 241,632 $ 262,029

Freddie Mac, Hybrid ARM (United States)3.025%, 10/1/44 USD 504,956 519,2922.752%, 11/1/44 USD 1,272,832 1,300,0042.731%, 1/1/45 USD 1,319,435 1,345,654

Freddie Mac Gold, 30 Year (United States)6.00%, 2/1/35 USD 121,622 138,843

Navient Student Loan Trust (Private Loans)(United States)Series 2015-CA B, 3.25%, 5/15/40(c) USD 1,350,000 1,306,648

Rio Oil Finance Trust (Brazil)9.25%, 7/6/24(c) USD 1,200,000 888,0009.75%, 1/6/27(c) USD 475,000 349,125

9,013,306CORPORATE: 57.5%FINANCIALS: 16.4%Anthem, Inc. (United States)

7.00%, 2/15/19 USD 335,000 376,4404.35%, 8/15/20 USD 275,000 291,287

Bank of America Corp. (United States)4.25%, 10/22/26 USD 300,000 296,9816.625%, 5/23/36(b) USD 325,000 370,158

Barclays PLC (United Kingdom)4.375%, 9/11/24 USD 600,000 586,693

BNP Paribas SA (France)5.75%, 1/24/22 GBP 425,000 700,6554.375%, 9/28/25(c) USD 200,000 195,897

Boston Properties, Inc. (United States)5.625%, 11/15/20 USD 275,000 306,1954.125%, 5/15/21 USD 325,000 340,568

Capital One Financial Corp.(United States)3.75%, 4/24/24 USD 750,000 755,249

Citigroup, Inc. (United States)6.692%, 10/30/40(b) USD 1,030,000 1,079,028

Equity Residential (United States)4.75%, 7/15/20 USD 575,000 621,358

Health Net, Inc. (United States)6.375%, 6/1/17 USD 550,000 572,000

HSBC Holdings PLC (United Kingdom)6.50%, 5/2/36 USD 400,000 477,1346.50%, 9/15/37 USD 525,000 629,900

JPMorgan Chase & Co. (United States)3.375%, 5/1/23 USD 700,000 688,360

Lloyds Banking Group PLC(United Kingdom)4.50%, 11/4/24 USD 950,000 964,486

Navient Corp. (United States)6.00%, 1/25/17 USD 670,000 686,7504.625%, 9/25/17 USD 243,000 239,3558.45%, 6/15/18 USD 125,000 131,562

Royal Bank of Scotland Group PLC(United Kingdom)6.125%, 12/15/22 USD 325,000 353,8306.00%, 12/19/23 USD 400,000 430,802

11,094,688

See accompanying Notes to Financial Statements D O D G E & C O X G L O B A L B O N D F U N D ▪ P A G E 7



PAR VALUE VALUE

INDUSTRIALS: 37.7%Allergan PLC (Ireland)

3.00%, 3/12/20 USD 275,000 $ 274,7813.80%, 3/15/25 USD 225,000 223,872

AT&T, Inc. (United States)6.55%, 2/15/39 USD 500,000 561,6314.75%, 5/15/46 USD 125,000 114,428

BHP Billiton, Ltd. (Australia)6.75%, 10/19/75(b)(c) USD 350,000 337,750

Canadian Pacific Railway, Ltd. (Canada)6.25%, 6/1/18 CAD 800,000 634,097

Cemex SAB de CV (Mexico)7.25%, 1/15/21(c) USD 1,750,000 1,684,375

Concho Resources, Inc. (United States)6.50%, 1/15/22 USD 1,100,000 1,056,000

Cox Enterprises, Inc. (United States)3.25%, 12/15/22(c) USD 715,000 649,9302.95%, 6/30/23(c) USD 400,000 352,394

Ford Motor Credit Co. LLC(d)

(United States)8.125%, 1/15/20 USD 300,000 353,4685.875%, 8/2/21 USD 625,000 696,986

Grupo Televisa SAB (Mexico)8.50%, 3/11/32 USD 500,000 603,071

HCA Holdings, Inc. (United States)4.75%, 5/1/23 USD 675,000 668,250

Hewlett Packard Enterprise Co.(United States)3.60%, 10/15/20(c) USD 550,000 551,320

Imperial Tobacco Group PLC(United Kingdom)9.00%, 2/17/22 GBP 305,000 594,8024.25%, 7/21/25(c) USD 750,000 761,194

Kinder Morgan, Inc. (United States)4.30%, 6/1/25 USD 100,000 86,4466.95%, 1/15/38 USD 1,325,000 1,177,901

Macy’s, Inc. (United States)6.70%, 9/15/28 USD 50,000 55,1046.90%, 4/1/29 USD 75,000 84,5266.70%, 7/15/34 USD 425,000 441,563

Millicom International Cellular SA(Luxembourg)6.625%, 10/15/21(c) USD 1,650,000 1,524,187

Molex Electronic Technologies LLC(d)

(United States)2.878%, 4/15/20(c) USD 775,000 755,113

MTN Group, Ltd. (South Africa)4.755%, 11/11/24(c) USD 725,000 630,750

Naspers, Ltd. (South Africa)6.00%, 7/18/20(c) USD 700,000 744,7515.50%, 7/21/25(c) USD 750,000 721,524

RELX PLC (United Kingdom)8.625%, 1/15/19 USD 58,000 67,6493.125%, 10/15/22 USD 444,000 431,468

Sprint Corp. (United States)6.00%, 12/1/16 USD 675,000 671,625

Teck Resources, Ltd. (Canada)6.00%, 8/15/40 USD 400,000 168,000

PAR VALUE VALUE

Telecom Italia SPA (Italy)6.375%, 6/24/19 GBP 450,000 $ 720,5257.721%, 6/4/38 USD 575,000 599,437

Time Warner Cable, Inc. (United States)8.75%, 2/14/19 USD 475,000 551,1656.75%, 6/15/39 USD 750,000 752,667

Time Warner, Inc. (United States)7.625%, 4/15/31 USD 400,000 494,9317.70%, 5/1/32 USD 375,000 468,148

TransCanada Corp. (Canada)5.625%, 5/20/75(b) USD 1,125,000 1,040,157

Twenty-First Century Fox, Inc.(United States)6.15%, 3/1/37 USD 275,000 306,4136.65%, 11/15/37 USD 625,000 726,288

Tyco International PLC (Ireland)3.90%, 2/14/26 USD 375,000 376,063

Verizon Communications, Inc.(United States)4.272%, 1/15/36 USD 375,000 338,4776.55%, 9/15/43 USD 525,000 623,268

Vulcan Materials Co. (United States)7.50%, 6/15/21 USD 438,000 510,270

Zoetis, Inc. (United States)3.45%, 11/13/20 USD 100,000 100,1204.50%, 11/13/25 USD 200,000 202,814

25,489,699UTILITIES: 3.4%Dominion Resources, Inc. (United States)

5.75%, 10/1/54(b) USD 1,075,000 1,053,285Enel SPA (Italy)

6.80%, 9/15/37(c) USD 650,000 793,6816.00%, 10/7/39(c) USD 425,000 475,236

2,322,202

38,906,589

TOTAL DEBT SECURITIES(Cost $71,366,669) 65,763,068

P A G E 8 ▪ D O D G E & C O X G L O B A L B O N D F U N D See accompanying Notes to Financial Statements



PAR VALUE VALUE

MONEY MARKET FUND: 0.1%SSgA U.S. Treasury Money Market Fund USD 67,958 $ 67,958

REPURCHASE AGREEMENT: 1.3%Fixed Income Clearing Corporation(e)

0.08%, dated 12/31/15, due 1/4/16,maturity value $905,008 USD 905,000 905,000

TOTAL SHORT-TERM INVESTMENTS(Cost $972,958) $ 972,958

TOTAL INVESTMENTS(Cost $72,339,627) 98.6% $66,736,026

OTHER ASSETS LESS LIABILITIES 1.4% 925,826

NET ASSETS 100.0% $67,661,852

(a) Inflation-linked(b) Hybrid security(c) Security exempt from registration under Rule 144A of the Securities Act of

1933. The security may be resold in transactions exempt from registration,normally to qualified institutional buyers. As of December 31, 2015, allsuch securities in total represented $14,530,472 or 21.4% of total net assets.These securities have been deemed liquid by Dodge & Cox, investmentmanager, pursuant to procedures approved by the Fund’s Board of Trustees.

(d) Subsidiary (see below)(e) Repurchase agreement is collateralized by U.S. Treasury Note 1.625%,

7/31/20. Total collateral value is $926,156.

Debt securities are grouped by parent company unless otherwise noted.Actual securities may be issued by the listed parent company or one of itssubsidiaries. In determining a parent company’s country designation, theFund generally references the country of incorporation.

ARM: Adjustable Rate MortgageGO: General ObligationGDN: Global Depositary NoteRB: Revenue Bond

BRL: Brazilian RealCAD: Canadian DollarCLP: Chilean PesoCOP: Colombian PesoEUR: EuroGBP: British PoundINR: Indian RupeeKRW: South Korean WonMXN: Mexican PesoUSD: United States Dollar

FUTURES CONTRACTS


ExpirationDate

NotionalAmount


(Depreciation)

10 Year U.S.Treasury Note—Short Position 66 Mar 2016 $(8,309,813) $31,033

Long-Term U.S.Treasury Bond—Short Position 18 Mar 2016 (2,856,375) (8,905)

$22,128

CENTRALLY CLEARED INTEREST RATE SWAPS

Contract Amount

NotionalAmount

ExpirationDate

FixedRate Floating Rate


(Depreciation)

Pay Fixed/Receive Floating:$825,000 5/6/24 2.72% USD LIBOR 3-Month $ (45,704)825,000 8/22/24 2.57% USD LIBOR 3-Month (39,699)1,750,000 7/29/45 2.774% USD LIBOR 3-Month (79,352)

$(164,755)

FORWARD CURRENCY CONTRACTS

Contract Amount

CounterpartySettlement

DateReceive

U.S. Dollar

DeliverForeign

Currency


(Depreciation)

Contracts to sell EUR:Barclays 3/2/16 1,489,986 1,400,000 $(33,612)


DateDeliver

U.S. Dollar

ReceiveForeign

Currency


(Depreciation)

Contracts to buy EUR:Barclays 3/2/16 1,146,251 1,075,000 23,654Contracts to buy INR:Barclays 2/17/16 1,272,321 85,500,000 11,134Barclays 2/17/16 761,793 52,000,000 18,788

$ 19,964

See accompanying Notes to Financial Statements D O D G E & C O X G L O B A L B O N D F U N D ▪ P A G E 9

STATEMENT OF ASSETS AND LIABILITIESDecember 31, 2015

ASSETS:Investments, at value (cost $72,339,627) $66,736,026Unrealized appreciation on forward currency contracts 53,576Cash denominated in foreign currency (cost $167) 164Cash held at broker 359,674Receivable for investments sold 39,172Receivable for Fund shares sold 7,788Dividends and interest receivable 971,912Prepaid expenses and other assets 19,273

68,187,585

LIABILITIES:Unrealized depreciation on forward currency contracts 33,612Payable to broker for variation margin 80,439Payable for Fund shares redeemed 342,887Expense reimbursement received in advance 17,227Accrued expenses 51,568

525,733

NET ASSETS $67,661,852

NET ASSETS CONSIST OF:Paid in capital $74,419,062Accumulated net investment loss (186,162)Accumulated net realized loss (827,352)Net unrealized depreciation (5,743,696)

$67,661,852




December 31, 2015INVESTMENT INCOME:Dividends $ 58,964Interest (net of foreign taxes of $5,879) 2,759,838

2,818,802

EXPENSES:Management fees 353,517Custody and fund accounting fees 26,648Transfer agent fees 21,750Professional services 223,071Shareholder reports 15,063Registration fees 90,581Trustees’ fees 237,500Miscellaneous 27,068Total expenses 995,198Expenses reimbursed by investment manager (570,879)

Net expenses 424,319


REALIZED AND UNREALIZED GAIN (LOSS):Net realized loss

Investments (3,334,009)Treasury futures contracts (119,291)Interest rate swaps (37,901)Forward currency contracts (11,908)Foreign currency transactions (51,881)

Net change in unrealized appreciation/depreciationInvestments (3,697,465)Treasury futures contracts 229,905Interest rate swaps (97,410)Forward currency contracts 37,073Foreign currency translation 6,831

Net realized and unrealized loss (7,076,056)

NET DECREASE IN NET ASSETSFROM OPERATIONS $(4,681,573)


December 31, 2015Period Ended

December 31, 2014*

OPERATIONS:Net investment income $ 2,394,483 $ 746,563Net realized loss (3,554,990) (339,029)Net change in unrealized

appreciation/depreciation (3,521,066) (2,222,630)

(4,681,573) (1,815,096)


Net investment income — (650,780)Net realized gain — —

Total distributions — (650,780)


Proceeds from sale of shares 26,112,074 75,231,468Reinvestment of distributions — 582,706Cost of shares redeemed (18,458,010) (8,658,937)

Net increase from Fund share transactions 7,654,064 67,155,237

Total increase in net assets 2,972,491 64,689,361

NET ASSETS:Beginning of period 64,689,361 —

End of period (including accumulated netinvestment loss of $(186,162) and$(66,238), respectively) $ 67,661,852 $64,689,361

SHARE INFORMATION:Shares sold 2,575,716 7,034,774Distributions reinvested — 55,846Shares redeemed (1,848,870) (818,378)

Net increase in shares outstanding 726,846 6,272,242

* Period from May 1, 2014 (commencement of operations) to December 31, 2014

P A G E 1 0 ▪ D O D G E & C O X G L O B A L B O N D F U N D See accompanying Notes to Financial Statements



ACCOUNTING POLICIES

Dodge & Cox Global Bond Fund (the “Fund”) is one of the seriesconstituting the Dodge & Cox Funds (the “Trust” or the “Funds”).The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. TheFund1 seeks a high rate of total return consistent with long-termpreservation of capital. Foreign investing, especially in developingcountries, has special risks such as currency and market volatilityand political and social instability. These and other riskconsiderations are discussed in the Fund’s Prospectus.


Security valuation The Fund’s net assets are valued as of theclose of trading on the New York Stock Exchange (NYSE),generally 4:00 p.m. Eastern Time, each day that the NYSE is openfor business. If the NYSE is closed due to inclement weather,technology problems, or for any other reason on a day it wouldnormally be open for business, or the NYSE has an unscheduledearly closing on a day it has opened for business, the Fund reservesthe right to calculate the Fund’s NAV as of the normallyscheduled close of regular trading on the NYSE for that day,provided that Dodge & Cox believes that it can obtain reliablemarket quotes or valuations.

Debt securities and non-exchange traded derivatives arevalued based on prices received from independent pricing serviceswhich utilize both dealer-supplied valuations and pricing models.Pricing models may consider quoted prices for similar securities,interest rates, prepayment speeds, and credit risk. Exchange-tradedderivatives are valued at the settlement price determined by therelevant exchange. Interest rate swaps are valued daily based onprices received from independent pricing services, which representthe net present value of all future cash settlement amounts basedon implied forward interest rates. Other financial instruments forwhich market quotes are readily available are valued at marketvalue. Security values are not discounted based on the size of theFund’s position. Short-term securities less than 60 days to maturitymay be valued at amortized cost if amortized cost approximatescurrent value. Mutual funds are valued at their respective net assetvalues.

1 The Fund’s predecessor, Dodge & Cox Global Bond Fund, L.L.C. (the“Private Fund”), was organized on August 31, 2012 and commencedoperations on December 5, 2012 as a private investment fund thatreorganized into, and had the same investment manager as, the Fund. TheFund commenced operations on May 1, 2014, upon the transfer of assetsfrom the Private Fund. This transaction was accomplished through a transferof Private Fund net assets valued at $10,725,688 in exchange for 1,000,000shares of the Fund. Immediately after the transfer, the shares of the Fundwere distributed to the sole owner of the Private Fund and the investmentmanager of the Fund, Dodge & Cox, which became the initial shareholder ofthe Fund.

Investments initially valued in currencies other than the U.S.dollar are converted to the U.S. dollar using prevailing exchangerates. As a result, the Fund’s net assets may be affected by changesin the value of currencies in relation to the U.S. dollar.

If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees.The Board of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised ofrepresentatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations arenot readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned toa particular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.



Interest income is recorded on the accrual basis. Interestincome includes coupon interest, amortization of premium andaccretion of discount on debt securities, gain/loss on paydowns,and inflation adjustments to the principal amount of inflation-indexed securities. The ability of the issuers of the debt securitiesheld by the Fund to meet their obligations may be affected byeconomic developments in a specific industry, state, region, orcountry. Debt obligations may be placed on non-accrual status andrelated interest income may be reduced by ceasing current accrualsand writing off interest receivables when the collection of all or aportion of interest has become doubtful. A debt obligation isremoved from non-accrual status when the issuer resumes interestpayments or when collectability of interest is reasonably assured.Dividend income is recorded on the ex-dividend date.

D O D G E & C O X G L O B A L B O N D F U N D ▪ P A G E 1 1


Expenses are recorded on the accrual basis. Some expenses ofthe Trust can be directly attributed to a specific series. Expenseswhich cannot be directly attributed are allocated among the Fundsin the Trust based on relative net assets or other expensemethodologies determined by the nature of the expense.


Foreign taxes The Fund is subject to foreign taxes whichmay be imposed by certain countries in which the Fund invests.The Fund endeavors to record foreign taxes based on applicableforeign tax law. Withholding taxes are incurred on certain foreignreceipts and are accrued at the time the associated interest incomeis recorded.

Capital gains taxes are incurred upon disposition of certainforeign securities. Capital gains taxes on appreciated securities areaccrued as unrealized losses and are reflected as realized losses uponthe sale of the related security. Currency taxes may be incurredwhen the Fund purchases certain foreign currencies related tosecurities transactions and are recorded as realized losses on foreigncurrency transactions.

Repurchase agreements The Fund enters into repurchaseagreements, secured by U.S. government or agency securities,which involve the purchase of securities from a counterparty witha simultaneous commitment to resell the securities at an agreed-upon date and price. It is the Fund’s policy that its custodian takepossession of the underlying collateral securities, the fair value ofwhich exceeds the principal amount of the repurchase transaction,including accrued interest, at all times. In the event of default bythe counterparty, the Fund has the contractual right to liquidatethe securities and to apply the proceeds in satisfaction of theobligation.

Futures Contracts Futures contracts involve an obligationto purchase or sell (depending on whether the Fund has entered along or short futures contract, respectively) an asset at a futuredate, at a price set at the time of the contract. Upon entering intoa futures contract, the Fund is required to deposit an amount ofcash or liquid assets (referred to as initial margin) in a segregatedaccount with the clearing broker. Subsequent payments (referredto as variation margin) to and from the clearing broker are madeon a daily basis based on changes in the market value of futurescontracts. Futures contracts are traded publicly and their marketvalue changes daily. Changes in the market value of open futurescontracts are recorded as unrealized appreciation or depreciation inthe Statement of Operations. Realized gains and losses on futurescontracts are recorded in the Statement of Operations at theclosing or expiration of the contracts. Cash deposited with abroker as initial margin is recorded on the Statement of Assets andLiabilities. A receivable and/or payable to brokers for dailyvariation margin is also recorded on the Statement of Assets andLiabilities.


The Fund has maintained short Treasury futures contracts toassist with the management of the portfolio’s interest rate

exposure. During the year ended December 31, 2015, theseTreasury futures contracts had notional values ranging from 8% to17% of net assets.

Interest rate swaps Interest rate swaps are agreements thatobligate two parties to exchange a series of cash flows at specifiedpayment dates calculated by reference to specified interest rates,such as an exchange of floating rate payments for fixed ratepayments. Upon entering into a centrally cleared interest rateswap, the Fund is required to post an amount of cash or liquidassets (referred to as initial margin) in a segregated account withthe clearing broker. Subsequent payments (referred to as variationmargin) to and from the clearing broker are made on a daily basisbased on changes in the market value of each interest rate swap.Changes in the market value of open interest rate swaps arerecorded as unrealized appreciation or depreciation in theStatement of Operations. Realized gains and losses on interest rateswaps are recorded in the Statement of Operations, both upon theexchange of cash flows on each specified payment date and uponthe closing or expiration of the swap. Cash deposited with theclearing broker as initial margin is recorded on the Statement ofAssets and Liabilities. A receivable and/or payable to brokers fordaily variation margin is also recorded on the Statement of Assetsand Liabilities.

Investments in interest rate swaps may include certain risksincluding unfavorable changes in interest rates, or a default orfailure by the clearing broker or clearinghouse.

The Fund has maintained interest rate swaps in connectionwith the management of the portfolio’s interest rate exposure.During the year ended December 31, 2015, these interest rateswaps had U.S. dollar notional values ranging from 2% to 5% ofnet assets.

Forward currency contracts A forward currency contractrepresents an obligation to purchase or sell a specific foreigncurrency at a future date at a price set at the time of the contract.Losses from these transactions may arise from unfavorable changesin currency values or if the counterparties do not perform under acontract’s terms.

The values of the forward currency contracts are adjusteddaily based on the prevailing forward exchange rates of theunderlying currencies. Changes in the value of open contracts arerecorded as unrealized appreciation or depreciation in theStatement of Operations. When the forward currency contract isclosed, the Fund records a realized gain or loss in the Statement ofOperations equal to the difference between the value at the timethe contract was opened and the value at the time it was closed.

The Fund has maintained forward currency contracts toincrease its portfolio exposure to the Indian rupee. During the yearended December 31, 2015, these Indian rupee forward currencycontracts had U.S. dollar total values ranging from 1% to 3% ofnet assets.

The Fund entered into forward currency contracts to hedgeforeign currency risks associated with portfolio investmentsdenominated in the euro. During the year ended December 31,

P A G E 1 2 ▪ D O D G E & C O X G L O B A L B O N D F U N D


2015, these euro forward currency contracts had U.S. dollar totalvalues ranging from 0% to 2% of net assets.

Foreign currency translation The books and records of theFund are maintained in U.S. dollars. Foreign currency amounts aretranslated into U.S. dollars at the prevailing exchange rates ofsuch currencies against the U.S. dollar. The market value ofinvestment securities and other assets and liabilities are translatedat the exchange rate as of the valuation date. Purchases and salesof investment securities, income, and expenses are translated atthe exchange rate prevailing on the transaction date.

Reported realized and unrealized gain (loss) on investmentsincludes foreign currency gain (loss) related to investmenttransactions.

Reported realized and unrealized gain (loss) on foreigncurrency transactions and translation include the following:holding/disposing of foreign currency, the difference between thetrade and settlement dates on securities transactions, the differencebetween the accrual and payment dates on interest, and currencylosses on the purchase of foreign currency in certain countries thatimpose taxes on such transactions.

Indemnification Under the Trust’s organizationaldocuments, its officers and trustees are indemnified against certainliabilities arising out of the performance of their duties to theTrust. In addition, in the normal course of business the Trustenters into contracts that provide general indemnities to otherparties. The Trust’s maximum exposure under these arrangementsis unknown as this would involve future claims that may be madeagainst the Trust that have not yet occurred.




▪ Level 3: Significant unobservable inputs (including Fundmanagement’s assumptions in determining the fair valueof investments)




(Quoted Prices)


Observable Inputs)

SecuritiesDebt Securities

Government $ — $11,842,111Government-Related — 6,001,062Securitized — 9,013,306Corporate — 38,906,589

Short-term InvestmentsMoney Market Fund 67,958 —Repurchase Agreement — 905,000

Total Securities $67,958 $66,668,068

Other Financial Instruments(b)

Treasury Futures ContractsAppreciation $31,033 $ —Depreciation (8,905) —

Interest Rate SwapsDepreciation — (164,755)

Forward Currency ContractsAppreciation — 53,576Depreciation — (33,612)

(a) U.S. Treasury securities were transferred from Level 1 to Level 2 during theyear. There were no Level 3 securities at December 31, 2015 and 2014, andthere were no transfers to Level 3 during the year.

(b) Represents unrealized appreciation/(depreciation).

NOTE 3—ADDITIONAL DERIVATIVES INFORMATION

The Fund has entered into over-the-counter derivatives, such asforward currency contracts (each, a “Derivative”). Each Derivativeis subject to a negotiated master agreement (based on a formpublished by the International Swaps and Derivatives Association(“ISDA”)) governing all Derivatives between the Fund and therelevant dealer counterparty. The master agreements specify(i) events of default and other events permitting a party toterminate some or all of the Derivatives thereunder and (ii) theprocess by which those Derivatives will be valued for purposes ofdetermining termination payments. If some or all of theDerivatives under a master agreement are terminated because of anevent of default or similar event, the values of all terminatedDerivatives must be netted to determine a single payment owed byone party to the other. Some master agreements contain collateralterms requiring the parties to post collateral in respect of some orall of the Derivatives thereunder based on the net market value ofthose Derivatives, subject to a minimum exposure threshold. Tothe extent amounts owed to the Fund by its counterparties are notcollateralized, the Fund is at risk of those counterparties’ non-performance. The Fund attempts to mitigate counterparty creditrisk by entering into Derivatives only with counterparties itbelieves to be of good credit quality and by monitoring thefinancial stability of those counterparties.

At December 31, 2015, all offsetting Derivative positionsqualify for netting pursuant to master netting arrangements. Forfinancial reporting purposes, the Fund does not offset financial



assets and liabilities that are subject to a master nettingarrangement in the Statement of Assets and Liabilities. Grossassets and liabilities related to Derivatives are presented as“unrealized appreciation on forward currency contracts” and“unrealized depreciation on forward currency contracts,”respectively, in the Statement of Assets and Liabilities. Derivativeinformation by counterparty is presented in the Portfolio ofInvestments. At December 31, 2015, no collateral is pledged orheld by the Fund for Derivatives.


Management fees Under a written agreement approved by aunanimous vote of the Board of Trustees, the Fund pays an annualmanagement fee of 0.50% of the Fund’s average daily net assets toDodge & Cox, investment manager of the Fund. Until April 30,2016, Dodge & Cox has contractually agreed to reimburse theFund for all ordinary expenses to the extent necessary to maintainthe ratio of total operating expenses to average net assets at 0.60%.The agreement is renewable annually thereafter and is subject totermination upon 30 days’ written notice by either party. Thisexpense reimbursement agreement has been in effect since theFund’s inception.


Share ownership At December 31, 2015, Dodge & Coxowned 14% of the Fund’s outstanding shares.



A provision for federal income taxes is not required since the Fundintends to continue to qualify as a regulated investment companyunder Subchapter M of the Internal Revenue Code and distributeall of its taxable income to shareholders. Distributions aredetermined in accordance with income tax regulations, and suchamounts may differ from net investment income and realized gainsfor financial reporting purposes. Financial reporting records areadjusted for permanent book to tax differences at year end toreflect tax character.

Book to tax differences are primarily due to differingtreatments of wash sales, net short-term realized gain (loss), foreigncapital gain taxes, foreign currency realized gain (loss), Treasuryfutures contracts, and interest rate swaps. At December 31, 2015,the cost of investments for federal income tax purposes was$72,339,627.

Distributions during the periods noted below werecharacterized as follows for federal income tax purposes:


Eight Months EndedDecember 31, 2014

Ordinary income $— $650,780($0.144 per share)

Long-term capital gain — —

At December 31, 2015, the tax basis components of distributableearnings were as follows:

Unrealized appreciation $ 104,514Unrealized depreciation (5,708,115)Net unrealized depreciation (5,603,601)Undistributed ordinary income —Capital loss carryforward(a) (775,303)Deferred loss(b) (196,120)(a) Represents accumulated capital loss as of December 31, 2015, which may

be carried forward to offset future capital gains.No expiration

Short-term $469,709Long-term 305,594

$775,303(b) Represents net realized specified loss incurred between November 1, 2015

and December 31, 2015. As permitted by tax regulations, the Fund haselected to treat this loss as arising in 2016.

Fund management has reviewed the tax positions for the openperiod applicable to the Fund, and has determined that noprovision for income tax is required in the Fund’s financialstatements.



All Funds in the Trust participate in a $500 millioncommitted credit facility (Line of Credit) with State Street Bankand Trust Company, to be utilized for temporary or emergencypurposes to fund shareholder redemptions or for other short-termliquidity purposes. The maximum amount available to the Fund is$250 million. Each Fund pays an annual commitment fee on itspro-rata portion of the Line of Credit. For the year endedDecember 31, 2015, the Fund’s commitment fee amounted to $250and is reflected as a Miscellaneous Expense in the Statement ofOperations. Interest on borrowings is charged at the prevailingrate. There were no borrowings on the Line of Credit during theyear.


For the year ended December 31, 2015, purchases and sales ofsecurities, other than short-term securities and U.S. governmentsecurities, aggregated $38,643,970 and $27,999,196, respectively.For the year ended December 31, 2015, purchases and sales of U.S.government securities aggregated $10,835,441 and $9,365,464,respectively.


Fund management has determined that no material events ortransactions occurred subsequent to December 31, 2015, andthrough the date of the Fund’s financial statements issuance,which require additional disclosure in the Fund’s financialstatements.



SELECTED DATA AND RATIOS(for a share outstanding throughout the period)


Period from May 1, 2014(commencement of Fund operations)

to December 31, 2014

Net asset value, beginning of period $10.31 $10.73Income from investment operations:

Net investment income 0.34 0.16Net realized and unrealized loss (0.98) (0.44)

Total from investment operations (0.64) (0.28)

Distributions to shareholders from:Net investment income — (0.14)Net realized gain — —

Total distributions — (0.14)

Net asset value, end of period $9.67 $10.31

Total return (6.21)% (2.59)%Ratios/supplemental data:

Net assets, end of period (millions) $68 $65Ratio of expenses to average net assets 0.60% 0.60%(a)

Ratio of expenses to average net assets, before reimbursement by investment manager 1.41% 2.18%(a)

Ratio of net investment income to average net assets 3.39% 2.83%(a)

Portfolio turnover rate 55% 36%

(a) Annualized



To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox Global Bond Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dodge &Cox Global Bond Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) at December 31, 2015, the results of its operations,the changes in its net assets, and financial highlights for each of the periods presented in conformity with accounting principles generallyaccepted in the United States of America. These financial statements and financial highlights (hereafter referred to as financial statements)are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits.We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overallfinancial statement presentation. We believe that our audits which included confirmation of securities at December 31, 2015, bycorrespondence with the custodian and brokers, provide a reasonable basis for our opinion.



BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing theperformance of the Dodge & Cox Funds’ investment manager anddetermining whether to continue the Investment ManagementAgreements between the Funds and Dodge & Cox each year (the“Agreements”). At a meeting of the Board of Trustees of the Trustheld on December 16, 2015, the Trustees, by a unanimous vote(including a separate vote of those Trustees who are not“interested persons” (as defined in the Investment Company Actof 1940) (the “Independent Trustees”)), approved the renewal ofthe Agreements for an additional one-year term through December31, 2016 with respect to each Fund. During the course of the year,the Board received a wide variety of materials relating to theinvestment management and administrative services provided byDodge & Cox and the performance of each of the Funds.


In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided byDodge & Cox. The Independent Trustees retained Morningstar® toprepare an independent expense and performance summary for eachFund and comparable funds managed by other advisers identified byMorningstar. The Morningstar materials included informationregarding advisory fee rates, expense ratios, and transfer agency,custodial, and distribution expenses, as well as appropriateperformance comparisons to each Fund’s peer group and an index orcombination of indices. The Morningstar materials also included acomparison of expenses of various share classes offered bycomparable funds. The materials reviewed by the Board containedinformation concerning, among other things, Dodge & Cox’sprofitability, financial results and condition, advisory fee revenue,and separate account and sub-adviser fund fee schedules. The Boardadditionally considered the Funds’ brokerage commissions, turnoverrates, sales and redemption data and the significant investment thatDodge & Cox makes in research used in managing the Funds. TheBoard received and reviewed memoranda and related materialsaddressing, among other things, Dodge & Cox’s services to theFunds; how Dodge & Cox Funds’ fees compare to fees of peer groupfunds; the different fees, services, costs, and risks associated withother accounts managed by Dodge & Cox as compared to theDodge & Cox Funds; and the ways in which the Funds realizeeconomies of scale. Throughout the process of reviewing theservices provided by Dodge & Cox and preparing for the meeting,the Independent Trustees found Dodge & Cox to be open,forthright, detailed, and very helpful in answering questions aboutall issues. The Board received copies of the Agreements and amemorandum from the independent legal counsel to theIndependent Trustees discussing the factors generally regarded asappropriate to consider in evaluating advisory arrangements. TheTrust’s Contract Review Committee, consisting solely ofIndependent Trustees, met with the independent legal counsel onNovember 11, 2015, and again on December 16, 2015, to discuss

whether to renew the Agreements. The Board, including theIndependent Trustees, subsequently concluded that the existingAgreements are fair and reasonable and voted to approve theAgreements. In considering the Agreements, the Board, includingthe Independent Trustees, did not identify any single factor orparticular information as all-important or controlling. In reachingthe decision to approve the Agreements, the Board consideredseveral factors, discussed below, to be key factors and reached theconclusions described below.


The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through itswebsite and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and itsreputation as a trusted, shareholder-friendly mutual fund family. Inaddition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionalsthan most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.







The Board reviewed information regarding the fee ratesDodge & Cox charges to separate accounts and subadvised fundsthat have investment programs similar to those of the Funds,including instances where separate account and sub-advised fundfees are lower than Fund fees. The Board considered differences inthe nature and scope of services Dodge & Cox provides to theFunds as compared to other client accounts, differences inregulatory, litigation, and other risks as between Dodge & CoxFunds and other types of clients. The Board also noted thatdifferent markets exist for mutual fund and institutional separateaccount management services. With respect to non-U.S. fundssponsored and managed by Dodge & Cox that are comparable tothe Funds in many respects, the Board noted that the fee ratescharged by Dodge & Cox are the same as or higher than the feerates charged to the Funds. After consideration of these matters,the Board concluded that the overall costs incurred by the Fundsfor the services they receive (including the management fee paidto Dodge & Cox) are reasonable and that the fees are acceptablebased upon the qualifications, experience, reputation, andperformance of Dodge & Cox and the low overall expense ratios ofthe Funds.

Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports ofDodge & Cox’s financial position, profitability, and estimatedoverall value, and considered Dodge & Cox’s overall profitabilitywithin its context as a private, employee-owned S-Corporationand relative to the favorable services provided. The Board noted inparticular that Dodge & Cox’s profits are not generated by high feerates, but reflect an extraordinarily streamlined, efficient, andfocused business approach toward investment management. TheBoard recognized the importance of Dodge & Cox’s profitability—which is derived solely from management fees and does notinclude other business ventures—to maintain its independence,stability, company culture and ethics, and management continuity.The Board also considered that the compensation/profit structureat Dodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independentand facilitating retention of management and investmentprofessionals. The Board considered independent researchindicating that firms that grow organically, rather than throughacquisition, tend to have better performance. Key to organicgrowth is the ability to retain talented and experienced analysts,portfolio managers and other professionals.

The Board also considered that in January 2015,Dodge & Cox closed the International Stock Fund to newinvestors to pro-actively manage the growth of the Fund. TheStock Fund and Balanced Fund were similarly closed to newinvestors during periods of significant growth in the past. Whilethese actions are intended to benefit existing shareholders, theeffect is to reduce potential revenues to Dodge & Cox from newshareholders. The Board also considered potential “fall-out”benefits (including the receipt of research from unaffiliated brokersand reputational benefits to non-U.S. funds sponsored andmanaged by Dodge & Cox) that Dodge & Cox might receive as a


result of its association with the Funds and determined that theyare acceptable. The Board also noted that Dodge & Cox continuesto invest substantial sums in its business in order to provideenhanced services, systems and research capabilities, all of whichbenefit the Funds. The Board concluded that Dodge & Cox’sprofitability is the keystone of its independence, stability and long-term investment performance and that the profitability of Dodge& Cox’s relationship with the Funds (including fall-out benefits) isfair and reasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In theBoard’s view, any consideration of economies of scale must takeaccount of the Funds’ low fee structure and the considerableefficiencies of the Funds’ organization and fee structure that hasbeen realized by shareholders from the time of each Fund’sinception (i.e., from the first dollar). An assessment of economiesof scale must also take into account that Dodge & Cox investssignificant time and resources in each new Fund for months (andsometimes years) prior to launch; in addition, expenses are capped,which means that Dodge & Cox earns no revenue and subsidizesthe operations of a new Fund for a period of time until it reachesscale.



CONCLUSION


FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the listswith the Securities and Exchange Commission (SEC) on FormN-CSR (second and fourth quarters) and Form N-Q (first andthird quarters). Shareholders may view the Fund’s Forms N-CSRand N-Q on the SEC’s website at sec.gov. Forms N-CSR and N-Qmay also be reviewed and copied at the SEC’s Public ReferenceRoom in Washington, DC. Information regarding the operationsof the Public Reference Room may be obtained by calling202-942-8090 (direct) or 800-732-0330 (general SEC number). Alist of the Fund’s quarter-end holdings is also available atdodgeandcox.com on or about 15 days following each quarter endand remains available on the web site until the list is updated inthe subsequent quarter.

PROXY VOTINGFor a free copy of the Fund’s proxy voting policies and procedures,please call 800-621-3979, visit the Fund’s website atwww.dodgeandcox.com, or visit the SEC’s website at sec.gov.Information regarding how the Fund voted proxies relating toportfolio securities during the most recent 2-month period endingJune 30 is also available at dodgeandcox.com or at sec.gov.


If you have a direct account with the Funds and you do notwant the mailing of shareholder reports and summary prospectusescombined with other members in your household, contact theFunds at 800-621-3979. Your request will be implemented within30 days.








—

Dana M. Emery(54)



—



—




—







—





Trustee(Since 2002)


—




Trustee(Since 2011)







—



—




Global Bond Fund

dodgeandcox.com


or write or call:

DODGE & COX FUNDS


INVESTMENT MANAGER


This report is submitted for the general information of the shareholders of the Fund. The report is not authorized fordistribution to prospective investors in the Fund unless it is accompanied by a current prospectus.



2015


Global Stock FundE S T A B L I S H E D 2 0 0 8

T I C K E R : D O D W X

12/15 GSF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox Global Stock Fund had a total return of –8.1%for the year ending December 31, 2015, compared to a return of–0.9% for the MSCI World Index.

MARKET COMMENTARY

Global growth expectations declined during 2015. Slower growthin China, the largest consumer of raw materials worldwide, was ofparticular significance as it negatively impacted commodity prices,as well as the currencies of commodity-driven economies. Globalcopper prices plummeted 24% and oil prices plunged 35%. TheBrazilian real and South African rand depreciated 33% and 25%,respectively, relative to the U.S. dollar. Prospects for higher U.S.interest rates, coupled with the U.S. dollar’s sharp appreciationagainst major global currencies, further exacerbated conditions forthose emerging market economies in need of external financing.As a result, while the MSCI Emerging Markets index was down6% in local currency for the year, it was down 15% in U.S. dollars.

In Europe, a dampened economic recovery and a weakerinflation outlook led the European Central Bank to extend itsasset purchase program aimed at reviving the economy. The Bankof Japan, in turn, introduced measures to supplement its alreadylarge Quantitative and Qualitative Easing Program, as economicactivity softened and inflation hovered around zero. In contrast,economic activity in the United States expanded at a moderatepace: household spending and business investment increased, thehousing market strengthened, and labor market conditionscontinued to improve, with solid job gains and reducedunemployment. After a significant selloff in August andSeptember, the S&P 500 rebounded during the fourth quarter tofinish the year up just over 1%.

INVESTMENT STRATEGY

As a value-oriented manager, 2015 was a challenging year forabsolute and relative performance. Across equities, value stocks(the lower valuation portion of the market) underperformedgrowth stocks (the higher valuation portion of the market) by oneof the widest spreads since the global financial crisis. The Fund wassignificantly affected by this performance divergence. For example,in the United States, many higher-valuation growth companies,not held by the Fund, outperformed significantly. In addition,emerging markets collectively underperformed developed markets.The Fund’s investments in individual companies domiciled in anumber of especially weak emerging market countries (includingBrazil, South Africa, and Turkey) negatively impacted results.Finally, several individual holdings—HP Inc(a), MTN Group,Petrobras, and Standard Chartered—meaningfully detracted fromresults for the year.

Throughout 2015, we continued to revisit and retest ourthinking on many of the Fund’s holdings. Our equity and fixedincome teams regularly work together to evaluate risk and rewardas we look at investment opportunities around the world. As partof our bottom-up research process, our investment teamsthoroughly investigated individual company concerns, challenged

analyst assumptions, and conducted further due diligence. Inaddition, we conducted macroeconomic reviews to evaluate thekey factors affecting a company’s capital structure, end-marketdemand, and relative competitiveness. Through thiscomprehensive process, we reaffirmed our view that the Fund’sholdings have attractive valuations relative to their fundamentaloutlook over our three- to five-year investment horizon.

During the year, valuation disparities widened globally:companies with higher valuations became more expensive relativeto companies with lower valuations. As valuations became moreattractive, we added selectively to existing holdings, includingBank of America, EMC Corp., HP Inc., and Standard Chartered.(b)

We also identified 6 new investment opportunities (includingAnthem, Cisco, JD.com, and Priceline) and exited 17 holdings(including PayPal and Unilever).

We continue to be optimistic about the long-term outlook forthe portfolio. Our value-oriented approach has led us to invest incompanies where we believe the long-term potential is notreflected in the current price. Three examples—StandardChartered, Hewlett Packard Enterprise, and HP Inc.—arediscussed below.

Standard CharteredStandard Chartered, domiciled in the United Kingdom, providesconsumer and wholesale banking services to customers in Asia,Africa, and the Middle East. The company has a strong globalfranchise with a broad network across the developing world thatwould be very difficult to replicate. Standard Chartered’s globalpayments and trade business is a particular strength: local rootsfrom its longstanding presence allow for local currency funding,and cooperation across the network provides integrated wholesalebanking services to clients. During 2015, Standard Chartered’sperformance suffered from the slowdown in emerging markets,large fines from legacy issues, rising restructuring costs, anddeteriorating asset quality. As a result, Standard Chartered’s stockwas down 39%(c) in U.S. dollars and its valuation fell to 0.6 timestangible book value, a historically low level.(d)

In 2015, we met with Standard Chartered’s new executiveteam on multiple occasions to better understand its strategy andpriorities. This management team is focused on streamlining theorganization and prioritizing profitability over growth. They have arealistic assessment of current balance sheet issues, as evidenced bythe recent $5.1 billion capital raise that provides ample newcapital to fortify the balance sheet, resolve legacy issues, andaccelerate their restructuring plans. The company seeks to cutcosts, exit peripheral businesses, and increase investments toimprove systems and further diversify its geographic footprint. Inaddition, Standard Chartered has been able to attract high-calibertalent with some key new hires. Based on the bank’s leadingfranchise, strong balance sheet, management’s initiatives, and lowvaluation, we recently added to the holding. On December 31,Standard Chartered was a 2.1% position in the Fund.

P A G E 2 ▪ D O D G E & C O X G L O B A L S T O C K F U N D

Hewlett Packard Enterprise and HP Inc.After providing strong returns in 2013 and 2014, Hewlett-Packardwas the Fund’s largest detractor from results during 2015.Hewlett-Packard recently split into two entities—Hewlett PackardEnterprise and HP Inc.—which should result in greater focus andflexibility for each company to achieve its strategic goals. To assesssecular challenges and evaluate the risks and opportunities of eachstand-alone business, we met numerous times with theirmanagement teams and competitors and spoke with industryconsultants. As a result, Hewlett Packard Enterprise was a 1.8%position and HP Inc. was a 1.4% position in the Fund onDecember 31.

Hewlett Packard Enterprise, one of the largest vendors ininformation technology (IT), consists of the enterprise technologyinfrastructure, software, and services segments of the oldHewlett-Packard. We acknowledge the company faces headwinds:the shift to the cloud has negatively impacted all on-premise ITvendors, continued public cloud adoption will likely erode thecompany’s market share, and competition is keen. Despite theserisks, we believe Hewlett Packard Enterprise is an attractiveinvestment due to its strong market positions across its portfolio(e.g., top provider of servers, number two position in IT services),scale advantages, and opportunities to improve its marginstructure. Meg Whitman—the CEO of Hewlett PackardEnterprise—has overseen sound acquisitions (e.g., 3Par), newproduct launches, and cost reduction programs during her tenuresat Hewlett-Packard and eBay. Management is actively cuttingcosts and retooling its product and service offerings to improve thecompany’s competitiveness. Margins in the Enterprise Servicessegment should expand as the company optimizes its contract mixand delivery models. The company trades at a compellingvaluation (eight times forward estimated earnings), which isamong the lowest in the S&P 500.

As the leader in printing and personal computer sales globally,HP Inc.’s key challenge is declining revenues. Partly due to thestronger U.S. dollar, consensus estimates have the company’s salesdeclining approximately 10% in 2016. Many investors believe ashrinking market for hardware and ink may be too difficult toovercome; we believe this view of the company’s prospects is toopessimistic. HP’s management is aggressively cutting costs and hasplans to introduce more new products. For example, HP hasportions of its printing business (e.g., high-end graphicsproduction) that are currently growing and may increase share inthe established copier market and in the more nascent 3D printmarket. Moreover, the company generates robust free cash flow.Trading at seven times forward estimated earnings, HP remains anattractive investment opportunity with strong business prospectsgiven its large valuation discount to the overall market.

IN CLOSING

Global equity valuations are attractive: the MSCI World traded at15.7 times forward estimated earnings (compared to a 20-yearaverage of 16.2 times) with a 2.6% dividend yield at year end.Valuation disparities have widened significantly, creating moreopportunities for value-oriented investors. We are identifying

attractively valued investments in both developed and emergingmarkets and continue to be optimistic about the long-term outlookfor the portfolio.

Our experienced and stable team has weathered past periodsof market turbulence by remaining steadfast in our investmentprocess and philosophy. Our approach—constructing a diversifiedportfolio through in-depth, independent research, a three- to five-year investment horizon, and a focus on valuation relative tounderlying fundamentals—continues to guide us through thisperiod. We remain confident that our enduring value-orientedapproach will benefit the Fund in the years ahead.





January 29, 2016

(a) After Hewlett-Packard Co. split into two companies, HP Inc. retained theHPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett-PackardCo.’s performance through October 2015.

(b) The use of specific examples does not imply that they are more attractiveinvestments than the Fund’s other holdings.

(c) All returns are total returns unless otherwise noted.(d) Unless otherwise specified, all weightings and characteristics are as of

December 31, 2015.

D O D G E & C O X G L O B A L S T O C K F U N D ▪ P A G E 3

ANNUAL PERFORMANCE REVIEWThe Fund underperformed the MSCI World by 7.2 percentagepoints in 2015.

Key Detractors from Relat ive Results▪ The Fund’s average overweight position in emerging markets

(17% versus 0% for the MSCI World), a particularly weakregion of the portfolio (down 21%), significantly detractedfrom results.

▪ Relative returns in the Financials sector (down 15%compared to down 4% for the MSCI World sector),especially in the emerging markets, hurt performance. BRMalls (down 53%), Kasikornbank (down 39%), StandardChartered (down 39%), and ICICI Bank (down 28%) alldetracted.

▪ Weak returns in the Consumer Staples sector (down 18%compared to up 6% for the MSCI World sector) hurt results.Wal-Mart (down 27%) performed poorly.

▪ The Fund’s holdings in the Telecommunication Servicessector (down 24% compared to up 2% for the MSCI Worldsector) had a negative impact. MTN Group (down 53%) wasa meaningful detractor.

▪ Additional detractors included Teck Resources (down 69%since date of purchase), Petrobras (down 55%), HP Inc.(down 37%), and Time Warner (down 23%).

Key Contributors to Relat ive Results▪ Strong returns from the Fund’s holdings in the Health Care

Providers and Services industry (up 18% compared to up12% for the MSCI World industry) contributed to results.Cigna (up 42%) and UnitedHealth Group (up 18%) werenotable performers.

▪ The Fund’s holdings in the Automobiles industry (up 11%compared to up 1% for the MSCI World industry) aidedperformance. Nissan Motor (up 24%) and Honda Motor (up13%) performed well.

▪ Additional contributors included Nintendo (up 61% to dateof sale), New Oriental Education & Technology (up 54%),Alphabet (up 45%), and Time Warner Cable (up 25%).



Experienced Investment TeamThe Global Stock Investment Policy Committee, which is thedecision-making body for the Global Stock Fund, is a seven-member committee with an average tenure at Dodge & Cox of19 years.




Risks: The Fund is subject to market risk, meaning holdings inthe Fund may decline in value for extended periods due to thefinancial prospects of individual companies, or due to generalmarket and economic conditions. Investing in non-U.S.securities may entail risk due to foreign economic and politicaldevelopments; this risk may be increased when investing inemerging markets. The Fund is also subject to currency risk.Please read the prospectus and summary prospectus for specificdetails regarding the Fund’s risk profile.


GROWTH OF $10,000 SINCE INCEPTIONFOR AN INVESTMENT MADE ON MAY 1, 2008

Dodge & Cox Global Stock Fund $12,800

MSCI World Index $12,978

5/1/08 12/31/09 12/31/11 12/31/13 12/31/154,000

10,000

$30,000

20,000


1 Year 3 Years 5 Years

SinceInception(5/1/08)

Dodge & Cox Global Stock Fund –8.05% 9.41% 7.04% 3.27%MSCI World Index –0.89 9.63 7.59 3.45


The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for anyincome taxes payable by shareholders on these distributions or onFund share redemptions. Index returns include dividends but,unlike Fund returns, do not reflect fees or expenses. The MSCIWorld Index is a broad-based, unmanaged equity market indexaggregated from 23 developed market country indices, includingthe United States. MSCI makes no express or implied warrantiesor representations and shall have no liability whatsoever withrespect to any MSCI data contained herein. The MSCI data maynot be further redistributed or used as a basis for other indices orany securities or financial products. This report is not approved,reviewed, or produced by MSCI.

MSCI World is a service mark of MSCI Barra.


ACTUAL EXPENSES











D O D G E & C O X G L O B A L S T O C K F U N D ▪ P A G E 5


GENERAL INFORMATION

Net Asset Value Per Share $10.46Total Net Assets (billions) $5.72014 Expense Ratio (per 5/1/15 Prospectus) 0.65%2015 Expense Ratio 0.63%Portfolio Turnover Rate 20%30-Day SEC Yield(a) 1.42%Number of Companies 83Fund Inception 2008No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed bythe Global Stock Investment Policy Committee, whose sevenmembers’ average tenure at Dodge & Cox is 19 years.

PORTFOLIO CHARACTERISTICS FundMSCIWorld

Median Market Capitalization (billions) $31 $10Weighted Average Market Capitalization

(billions) $94 $93Price-to-Earnings Ratio(b) 13.3x 15.7xCountries Represented 20 23Emerging Markets (Brazil, China, India,

Mexico, South Africa, South Korea,Thailand, Turkey) 16.9% 0.0%

TEN LARGEST HOLDINGS (%)( c ) Fund

Alphabet, Inc. (United States) 3.7Time Warner Cable, Inc. (United States) 3.1Samsung Electronics Co., Ltd. (South Korea) 2.9Bank of America Corp. (United States) 2.6Naspers, Ltd. (South Africa) 2.6Roche Holding AG (Switzerland) 2.4Novartis AG (Switzerland) 2.3Sanofi (France) 2.3Time Warner, Inc. (United States) 2.2Standard Chartered PLC (United Kingdom) 2.1

ASSET ALLOCATION

Net Cash& Other:(d) 2.2%

EquitySecurities: 97.8%

REGION DIVERSIFICATION (%)( e ) FundMSCIWorld

United States 50.6 58.7Europe (excluding United Kingdom) 19.7 17.2Pacific (excluding Japan) 10.6 4.3United Kingdom 6.2 7.4Japan 3.4 9.0Africa/Middle East 3.4 0.3Latin America 3.3 0.0Canada 0.6 3.1

SECTOR DIVERSIFICATION (%) FundMSCIWorld

Financials 23.6 20.8Consumer Discretionary 21.3 13.3Information Technology 20.5 14.2Health Care 14.8 13.5Energy 6.4 6.1Industrials 3.7 10.7Materials 3.0 4.4Telecommunication Services 2.6 3.4Consumer Staples 1.9 10.4Utilities 0.0 3.2

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) Price-to-earnings (P/E) ratios are calculated using 12-month forward earnings estimates from third-party sources.(c) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular

security and is not indicative of Dodge & Cox’s current or future trading activity.(d) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,

payables, and unrealized appreciation/depreciation on certain derivatives).(e) The Fund may classify a company in a different category than the MSCI World. The Fund generally classifies a company based on its country of incorporation, but

may designate a different country in certain circumstances.


CONSOLIDATED PORTFOLIO OF INVESTMENTS December 31, 2015


SHARES VALUE

CONSUMER DISCRETIONARY: 21.3%AUTOMOBILES & COMPONENTS: 5.4%Bayerische Motoren Werke AG (Germany) 620,200 $ 65,318,528Honda Motor Co., Ltd. (Japan) 3,109,700 99,639,572Mahindra & Mahindra, Ltd. (India) 2,543,374 48,632,867Nissan Motor Co., Ltd. (Japan) 5,816,300 60,913,271Yamaha Motor Co., Ltd. (Japan) 1,448,400 32,456,868

306,961,106CONSUMER DURABLES & APPAREL: 0.5%Coach, Inc. (United States) 971,500 31,797,195

CONSUMER SERVICES: 0.5%New Oriental Education & Technology Group,

Inc. ADR (Cayman Islands/China) 853,567 26,776,397

MEDIA: 12.0%Comcast Corp., Class A (United States) 1,265,400 71,406,522DISH Network Corp., Class A(a)

(United States) 786,300 44,960,634Grupo Televisa SAB ADR (Mexico) 1,412,300 38,428,683Liberty Global PLC LiLAC, Series C(a)

(United Kingdom) 63,185 2,716,955Liberty Global PLC, Series C(a)

(United Kingdom) 1,566,800 63,878,436Naspers, Ltd. (South Africa) 1,059,300 145,212,803Television Broadcasts, Ltd. (Hong Kong) 2,599,500 10,716,579Time Warner Cable, Inc. (United States) 961,171 178,383,726Time Warner, Inc. (United States) 1,964,666 127,054,950

682,759,288RETAILING: 2.9%JD.com, Inc. ADR(a) (Cayman Islands/China) 1,686,900 54,427,829Target Corp. (United States) 615,600 44,698,716The Priceline Group, Inc.(a) (United States) 53,200 67,827,340

166,953,885

1,215,247,871CONSUMER STAPLES: 1.9%FOOD & STAPLES RETAILING: 1.4%Wal-Mart Stores, Inc. (United States) 1,298,200 79,579,660

FOOD, BEVERAGE & TOBACCO: 0.5%Anadolu Efes Biracilik ve Malt Sanayii AS

(Turkey) 4,023,248 26,059,236

105,638,896ENERGY: 5.6%Apache Corp. (United States) 1,028,432 45,734,371Baker Hughes, Inc. (United States) 1,494,087 68,952,115National Oilwell Varco, Inc. (United States) 960,200 32,157,098Saipem SPA(a) (Italy) 4,771,043 38,352,249Schlumberger, Ltd. (Curacao/United States) 1,450,200 101,151,450Weatherford International PLC(a) (Ireland) 3,779,375 31,708,956

318,056,239FINANCIALS: 22.3%BANKS: 10.9%Bank of America Corp. (United States) 8,918,400 150,096,672Barclays PLC (United Kingdom) 32,430,600 104,654,320ICICI Bank, Ltd. (India) 19,126,282 75,457,113Kasikornbank PCL- Foreign (Thailand) 12,934,700 53,474,818Siam Commercial Bank PCL- Foreign

(Thailand) 5,156,300 17,016,303Standard Chartered PLC (United Kingdom) 14,588,077 121,227,876Wells Fargo & Co. (United States) 1,651,573 89,779,508Yapi ve Kredi Bankasi AS (Turkey) 7,580,017 8,551,041

620,257,651

SHARES VALUE

DIVERSIFIED FINANCIALS: 7.7%Bank of New York Mellon Corp.

(United States) 1,497,200 $ 61,714,584Capital One Financial Corp. (United States) 1,206,900 87,114,042Charles Schwab Corp. (United States) 3,670,800 120,879,444Credit Suisse Group AG (Switzerland) 4,566,743 98,702,568Goldman Sachs Group, Inc. (United States) 271,900 49,004,537Haci Omer Sabanci Holding AS (Turkey) 7,957,588 22,592,521

440,007,696INSURANCE: 2.1%AEGON NV (Netherlands) 11,121,459 63,211,053Aviva PLC (United Kingdom) 7,893,600 60,045,606

123,256,659REAL ESTATE: 1.6%BR Malls Participacoes SA (Brazil) 7,033,500 19,616,305Hang Lung Group, Ltd. (Hong Kong) 14,438,300 46,854,310Hang Lung Properties, Ltd. (Hong Kong) 10,126,100 23,048,161

89,518,776

1,273,040,782HEALTH CARE: 14.8%HEALTH CARE EQUIPMENT & SERVICES: 6.3%Anthem, Inc. (United States) 341,688 47,644,975Cigna Corp. (United States) 665,000 97,309,450Express Scripts Holding Co.(a)

(United States) 1,286,600 112,461,706UnitedHealth Group, Inc. (United States) 868,900 102,217,396

359,633,527PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 8.5%Bayer AG (Germany) 379,320 47,589,978Merck & Co., Inc. (United States) 644,400 34,037,208Novartis AG (Switzerland) 949,500 81,160,026Novartis AG ADR (Switzerland) 601,000 51,710,040Roche Holding AG (Switzerland) 499,800 137,738,947Sanofi (France) 1,549,862 132,386,941

484,623,140

844,256,667INDUSTRIALS: 3.7%CAPITAL GOODS: 1.5%Schneider Electric SA (France) 1,531,078 87,454,516

COMMERCIAL & PROFESSIONAL SERVICES: 1.2%ADT Corp. (United States) 858,800 28,323,224Tyco International PLC (Ireland) 1,279,100 40,790,499

69,113,723TRANSPORTATION: 1.0%FedEx Corp. (United States) 382,400 56,973,776

213,542,015INFORMATION TECHNOLOGY: 19.0%SOFTWARE & SERVICES: 8.3%Alphabet, Inc., Class A(a) (United States) 21,500 16,727,215Alphabet, Inc., Class C(a) (United States) 253,399 192,299,433Baidu, Inc. ADR(a) (Cayman Islands/China) 457,515 86,488,636eBay, Inc.(a) (United States) 164,300 4,514,964Microsoft Corp. (United States) 2,124,100 117,845,068Symantec Corp. (United States) 1,641,300 34,467,300Synopsys, Inc.(a) (United States) 425,100 19,388,811

471,731,427

See accompanying Notes to Consolidated Financial Statements D O D G E & C O X G L O B A L S T O C K F U N D ▪ P A G E 7


COMMON STOCKS (continued)

SHARES VALUE

TECHNOLOGY, HARDWARE & EQUIPMENT: 10.7%Cisco Systems, Inc. (United States) 3,960,200 $ 107,539,231Corning, Inc. (United States) 2,500,900 45,716,452EMC Corp. (United States) 4,470,200 114,794,736Hewlett Packard Enterprise Co.

(United States) 6,642,900 100,972,080HP, Inc. (United States) 6,760,100 80,039,584NetApp, Inc. (United States) 755,780 20,050,843Samsung Electronics Co., Ltd. (South Korea) 72,517 77,435,944TE Connectivity, Ltd. (Switzerland) 1,022,115 66,038,850

612,587,720

1,084,319,147MATERIALS: 3.0%Celanese Corp., Series A (United States) 876,500 59,014,745LafargeHolcim, Ltd. (Switzerland) 656,020 32,871,626Linde AG (Germany) 327,710 47,568,194Teck Resources, Ltd., Class B (Canada) 8,396,569 32,410,757

171,865,322TELECOMMUNICATION SERVICES: 2.6%America Movil SAB de CV, Series L

(Mexico) 12,229,000 8,585,738Millicom International Cellular SA SDR

(Luxembourg) 822,900 46,870,485MTN Group, Ltd. (South Africa) 5,560,200 47,778,531Sprint Corp.(a) (United States) 12,730,600 46,084,772

149,319,526



ENERGY: 0.8%Petroleo Brasileiro SA ADR(a) (Brazil) 14,428,003 49,055,210

FINANCIALS: 1.3%BANKS: 1.3%Itau Unibanco Holding SA (Brazil) 11,092,063 72,481,734

INFORMATION TECHNOLOGY: 1.5%TECHNOLOGY, HARDWARE & EQUIPMENT: 1.5%Samsung Electronics Co., Ltd. (South Korea) 91,514 84,695,337

TOTAL PREFERRED STOCKS(Cost $302,069,322) $ 206,232,281


PAR VALUE VALUE


REPURCHASE AGREEMENT: 0.2%Fixed Income Clearing Corporation(b)


TREASURY BILL: 2.4%Canadian Treasury Bill (Canada) 2/11/16 192,000,000 138,689,022



OTHER ASSETS LESS LIABILITIES (0.5%) (31,079,480)

NET ASSETS 100.0% $5,707,778,682

(a) Non-income producing(b) Repurchase agreement is collateralized by U.S. Treasury Note 1.625%,

7/31/20. Total collateral value is $13,136,400.

In determining a company’s country designation, the Fund generallyreferences the country of incorporation. In cases where the Fund considersthe country of incorporation to be a “jurisdiction of convenience” chosenprimarily for tax purposes or in other limited circumstances, the Fund usesthe country designation of an appropriate broad-based market index. Inthose cases, two countries are listed - the country of incorporation and thecountry designated by an appropriate index, respectively.

ADR: American Depositary ReceiptSDR: Swedish Depository Receipt


Contract Amount


DateReceive

U.S. Dollar

DeliverForeign

Currency


(Depreciation)

Contracts to sell CHF:Goldman Sachs 1/27/16 29,946,922 29,000,000 $ 966,230Goldman Sachs 2/3/16 30,516,647 30,000,000 527,618UBS 2/3/16 30,404,686 30,000,000 415,658

Contracts to sell EUR:Credit Suisse 2/24/16 29,240,885 27,250,000 (409,690)JPMorgan 2/24/16 13,673,610 12,750,000 (199,595)Deutsche Bank 3/2/16 20,624,470 19,400,000 (488,244)Barclays 3/9/16 20,698,790 19,000,000 17,635HSBC 3/9/16 11,964,590 11,000,000 (8,710)

$ 820,902

P A G E 8 ▪ D O D G E & C O X G L O B A L S T O C K F U N D See accompanying Notes to Consolidated Financial Statements

CONSOLIDATEDSTATEMENT OF ASSETS AND LIABILITIES

December 31, 2015

ASSETS:Investments, at value (cost $5,425,996,198) $5,738,858,162Unrealized appreciation on forward currency contracts 1,927,141Cash denominated in foreign currency (cost $739) 731Cash 100Receivable for investments sold 5,858,071Receivable for Fund shares sold 27,278,177Dividends and interest receivable 11,146,371Prepaid expenses and other assets 49,675

5,785,118,428

LIABILITIES:Unrealized depreciation on forward currency contracts 1,106,239Payable for investments purchased 14,773,671Payable for Fund shares redeemed 58,056,720Management fees payable 2,927,968Accrued expenses 475,148

77,339,746

NET ASSETS $5,707,778,682

NET ASSETS CONSIST OF:Paid in capital $5,342,564,016Undistributed net investment income 337,857Undistributed net realized gain 51,920,181Net unrealized appreciation 312,956,628

$5,707,778,682



CONSOLIDATEDSTATEMENT OF OPERATIONS


INVESTMENT INCOME:Dividends (net of foreign taxes of $5,879,065) $ 125,378,250Interest 15,237

125,393,487

EXPENSES:Management fees 37,258,811Custody and fund accounting fees 620,606Transfer agent fees 309,736Professional services 219,650Shareholder reports 100,505Registration fees 196,886Trustees’ fees 237,500Miscellaneous 311,547

39,255,241



Investments 135,300,729Forward currency contracts 19,146,059Foreign currency transactions (637,316)

Net change in unrealized appreciation/depreciationInvestments (761,602,676)Forward currency contracts (2,559,627)Foreign currency translation (521,016)

Net realized and unrealized loss (610,873,847)

NET DECREASE IN NET ASSETSFROM OPERATIONS $ (524,735,601)

CONSOLIDATEDSTATEMENT OF CHANGES IN NET ASSETS



OPERATIONS:Net investment income $ 86,138,246 $ 73,280,159Net realized gain 153,809,472 160,901,823Net change in unrealized

appreciation/depreciation (764,683,319) 67,737,521

(524,735,601) 301,919,503


Net investment income (98,070,160) (72,474,215)Net realized gain (119,687,722) (138,830,388)

Total distributions (217,757,882) (211,304,603)


Proceeds from sale of shares 1,649,174,317 2,482,518,668Reinvestment of distributions 211,165,760 204,987,790Cost of shares redeemed (1,305,398,436) (806,780,930)

Net increase from Fund share transactions 554,941,641 1,880,725,528

Total increase/(decrease) in net assets (187,551,842) 1,971,340,428


End of year (including undistributed netinvestment income of $337,857 and$(306,245), respectively) $ 5,707,778,682 $5,895,330,524


Net increase in shares outstanding 47,660,379 156,437,862

See accompanying Notes to Consolidated Financial Statements D O D G E & C O X G L O B A L S T O C K F U N D ▪ P A G E 9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


ACCOUNTING POLICIES

Dodge & Cox Global Stock Fund (the “Fund”) is one of the seriesconstituting the Dodge & Cox Funds (the “Trust” or the “Funds”).The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. TheFund commenced operations on May 1, 2008, and seeks long-termgrowth of principal and income. The Fund invests primarily in adiversified portfolio of U.S. and foreign equity securities. Foreigninvesting, especially in developing countries, has special risks suchas currency and market volatility and political and socialinstability. These and other risk considerations are discussed in theFund’s Prospectus.



Portfolio securities and other financial instruments for whichmarket quotes are readily available are valued at market value.Listed securities are generally valued using the official quoted closeprice or the last sale on the exchange that is determined to be theprimary market for the security. Security values are not discountedbased on the size of the Fund’s position. Short-term securities lessthan 60 days to maturity may be valued at amortized cost ifamortized cost approximates current value. Mutual funds arevalued at their respective net asset values.


If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees.The Board of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised of

representatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations arenot readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned toa particular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.

As trading in securities on most foreign exchanges is normallycompleted before the close of the NYSE, the value of non-U.S.securities can change by the time the Fund calculates its NAV. Toaddress these changes, the Fund may utilize adjustment factorsprovided by an independent pricing service to systematically valuenon-U.S. securities at fair value. These adjustment factors arebased on statistical analyses of subsequent movements and changesin U.S. markets and financial instruments trading in U.S. marketsthat represent foreign securities or baskets of securities.



Dividend income and corporate action transactions arerecorded on the ex-dividend date, or when the Fund first learns ofthe dividend/corporate action if the ex-dividend date has passed.Non-cash dividends included in dividend income, if any, arerecorded at the fair market value of the securities received.Dividends characterized as return of capital for U.S. tax purposesare recorded as a reduction of cost of investments and/or realizedgain. Interest income is recorded on the accrual basis.



Foreign taxes The Fund is subject to foreign taxes whichmay be imposed by certain countries in which the Fund invests.

P A G E 1 0 ▪ D O D G E & C O X G L O B A L S T O C K F U N D


The Fund endeavors to record foreign taxes based on applicableforeign tax law. Withholding taxes are incurred on certain foreigndividends and are accrued at the time the associated dividend isrecorded. The Fund files withholding tax reclaims in certainjurisdictions to recover a portion of amounts previously withheld.The Fund records a reclaim receivable based on, among otherthings, a jurisdiction’s legal obligation to pay reclaims as well aspayment history and market convention. In consideration ofrecent decisions rendered by European courts, the Fund has filedfor additional reclaims related to prior years. A correspondingreceivable is established when both the amount is known andsignificant contingencies or uncertainties regarding collectabilityare removed. These amounts are reported in “dividends andinterest receivable” on the Consolidated Statement of Assets andLiabilities.




The values of the forward currency contracts are adjusteddaily based on the prevailing forward exchange rates of theunderlying currencies. Changes in the value of open contracts arerecorded as unrealized appreciation or depreciation in theConsolidated Statement of Operations. When the forwardcurrency contract is closed, the Fund records a realized gain or lossin the Consolidated Statement of Operations equal to thedifference between the value at the time the contract was openedand the value at the time it was closed.

During the year, the Fund maintained forward currencycontracts to hedge foreign currency risks associated with portfolioinvestments denominated in the euro and Swiss franc. During theyear ended December 31, 2015, these euro and Swiss franc forward

currency contracts had U.S. dollar total values ranging from 1% to2% of net assets and 0% to 2% of net assets, respectively.


Reported realized and unrealized gain (loss) on investmentsinclude foreign currency gain (loss) related to investmenttransactions.

Reported realized and unrealized gain (loss) on foreigncurrency transactions and translation include the following:disposing/holding of foreign currency, the difference between thetrade and settlement dates on securities transactions, the differencebetween the accrual and payment dates on dividends, and currencylosses on the purchase of foreign currency in certain countries thatimpose taxes on such transactions.

Consolidation The Fund may invest in certain securitiesthrough its wholly owned subsidiary, Dodge & Cox Global StockFund Cayman, Ltd. (the “Subsidiary”). The Subsidiary is aCayman Islands exempted company and invests in certainsecurities consistent with the investment objective of the Fund.The Fund’s Consolidated Financial Statements, including theConsolidated Portfolio of Investments, consist of the holdings andaccounts of the Fund and the Subsidiary. All intercompanytransactions and balances have been eliminated. At December 31,2015, the Subsidiary had net assets of $100, which represented lessthan 0.01% of the Fund’s consolidated net assets.



Various inputs are used in determining the value of the Fund’sinvestments and other financial instruments. These inputs aresummarized in the three broad levels listed below.▪ Level 1: Quoted prices in active markets for identical securities▪ Level 2: Other significant observable inputs (including quoted



D O D G E & C O X G L O B A L S T O C K F U N D ▪ P A G E 1 1





(Quoted Prices)


Observable Inputs)

SecuritiesCommon Stocks

Consumer Discretionary $ 956,919,632 $ 258,328,239Consumer Staples 105,638,896 —Energy 279,703,990 38,352,249Financials 1,084,230,788 188,809,994Health Care 577,767,715 266,488,952Industrials 213,542,015 —Information Technology 1,006,883,203 77,435,944Materials 91,425,502 80,439,820Telecommunication Services 102,449,041 46,870,485

Preferred StocksEnergy 49,055,210 —Financials — 72,481,734Information Technology — 84,695,337

Short-term InvestmentsMoney Market Fund 5,773,394 —Repurchase Agreement — 12,877,000Treasury Bill — 138,689,022



Forward Currency ContractsAppreciation $ — $ 1,927,141Depreciation — (1,106,239)

(a) Transfers during the year between Level 1 and Level 2 relate to the use ofsystematic fair valuation (see Note 1). On days when systematic fairvaluation is used, securities whose primary market closes before the NYSE areclassified as Level 2. There were no Level 3 securities at December 31, 2015and 2014, and there were no transfers to Level 3 during the year.



The Fund has entered into over-the-counter derivatives, such asforward currency contracts (each, a “Derivative”). Each Derivativeis subject to a negotiated master agreement (based on a formpublished by the International Swaps and Derivatives Association(“ISDA”)) governing all Derivatives between the Fund and therelevant dealer counterparty. The master agreements specify(i) events of default and other events permitting a party toterminate some or all of the Derivatives thereunder and (ii) theprocess by which those Derivatives will be valued for purposes ofdetermining termination payments. If some or all of theDerivatives under a master agreement are terminated because of anevent of default or similar event, the values of all terminatedDerivatives must be netted to determine a single payment owed byone party to the other. Some master agreements contain collateralterms requiring the parties to post collateral in respect of some orall of the Derivatives thereunder based on the net market value ofthose Derivatives, subject to a minimum exposure threshold. To

the extent amounts owed to the Fund by its counterparties are notcollateralized, the Fund is at risk of those counterparties’ non-performance. The Fund attempts to mitigate counterparty creditrisk by entering into Derivatives only with counterparties itbelieves to be of good credit quality and by monitoring thefinancial stability of those counterparties.

At December 31, 2015, no Derivative position subject to amaster netting arrangement qualifies for netting. For financialreporting purposes, the Fund does not offset financial assets andliabilities that are subject to a master netting arrangement in theConsolidated Statement of Assets and Liabilities. Gross assets andliabilities related to Derivatives are presented as “unrealizedappreciation on forward currency contracts” and “unrealizeddepreciation on forward currency contracts,” respectively, in theConsolidated Statement of Assets and Liabilities. Derivativeinformation by counterparty is presented in the ConsolidatedPortfolio of Investments. At December 31, 2015, no collateral ispledged or held by the Fund for Derivatives.






A provision for federal income taxes is not required since the Fundintends to qualify as a regulated investment company underSubchapter M of the Internal Revenue Code and distribute all of itstaxable income to shareholders. Distributions are determined inaccordance with income tax regulations, and such amounts may differfrom net investment income and realized gains for financial reportingpurposes. Financial reporting records are adjusted for permanent bookto tax differences at year end to reflect tax character.

Book to tax differences are primarily due to differingtreatments of wash sales, net short-term realized gain (loss),investments in passive foreign investment companies, foreigncapital gain taxes, and foreign currency realized gain (loss). AtDecember 31, 2015, the cost of investments for federal income taxpurposes was $5,438,868,248.

Distributions during the years noted below were characterizedas follows for federal income tax purposes:








Unrealized appreciation $973,534,707Unrealized depreciation (673,544,793)

Net unrealized appreciation 299,989,914Undistributed ordinary income 337,857Undistributed long-term capital gain 68,386,040Deferred loss(a) (2,772,907)(a) Represents net short-term realized loss incurred between November 1, 2015


Fund management has reviewed the tax positions for openperiods (three years and four years, respectively, from filing theFund’s Federal and State tax returns) as applicable to the Fund,and has determined that no provision for income tax is required inthe Fund’s financial statements.



All Funds in the Trust participate in a $500 millioncommitted credit facility (Line of Credit) with State Street Bankand Trust Company, to be utilized for temporary or emergencypurposes to fund shareholder redemptions or for other short-termliquidity purposes. The maximum amount available to the Fund is$250 million. Each Fund pays an annual commitment fee on itspro-rata portion of the Line of Credit. For the year endedDecember 31, 2015, the Fund’s commitment fee amounted to$19,178 and is reflected as a Miscellaneous Expense in theConsolidated Statement of Operations. Interest on borrowings ischarged at the prevailing rate. There were no borrowings on theLine of Credit during the year.


For the year ended December 31, 2015, purchases and salesof securities, other than short-term securities, aggregated$1,678,416,983 and $1,181,203,951, respectively.




CONSOLIDATED FINANCIAL HIGHLIGHTS


2015 2014 2013 2012 2011




Distributions to shareholders from:Net investment income (0.19) (0.15) (0.16) (0.15) (0.15)Net realized gain (0.23) (0.30) (0.32) (0.17) (0.05)





See accompanying Notes to Consolidated Financial Statements



To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox Global Stock Fund

In our opinion, the accompanying consolidated statement of assets and liabilities, including the consolidated portfolio of investments, andthe related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in allmaterial respects, the financial position of Dodge & Cox Global Stock Fund (the “Fund”, one of the series constituting Dodge & CoxFunds) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years inthe period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accountingprinciples generally accepted in the United States of America. These consolidated financial statements and consolidated financialhighlights (hereafter referred to as financial statements) are the responsibility of the Fund’s management. Our responsibility is to express anopinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with thestandards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, whichincluded confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis forour opinion.



SPECIAL 2015 TAX INFORMATION(unaudited)The following information is provided pursuant to provisions of theInternal Revenue Code:

In 2015, the Fund elected to pass through to shareholdersforeign source income of $86,033,491 and foreign taxes paid of$5,878,958.

The Fund designates up to a maximum of $122,119,608 of itsdistributions paid to shareholders in 2015 as qualified dividends(treated for federal income tax purposes in the hands of shareholdersas taxable at a maximum rate of 20%).


BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing theperformance of the Dodge & Cox Funds’ investment manager anddetermining whether to continue the Investment ManagementAgreements between the Funds and Dodge & Cox each year (the“Agreements”). At a meeting of the Board of Trustees of the Trustheld on December 16, 2015, the Trustees, by a unanimous vote(including a separate vote of those Trustees who are not“interested persons” (as defined in the Investment Company Actof 1940) (the “Independent Trustees”)), approved the renewal ofthe Agreements for an additional one-year term throughDecember 31, 2016 with respect to each Fund. During the courseof the year, the Board received a wide variety of materials relatingto the investment management and administrative servicesprovided by Dodge & Cox and the performance of each of theFunds.


In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided byDodge & Cox. The Independent Trustees retained Morningstar®

to prepare an independent expense and performance summary foreach Fund and comparable funds managed by other advisersidentified by Morningstar. The Morningstar materials includedinformation regarding advisory fee rates, expense ratios, andtransfer agency, custodial, and distribution expenses, as well asappropriate performance comparisons to each Fund’s peer groupand an index or combination of indices. The Morningstarmaterials also included a comparison of expenses of various shareclasses offered by comparable funds. The materials reviewed by theBoard contained information concerning, among other things,Dodge & Cox’s profitability, financial results and condition,advisory fee revenue, and separate account and sub-adviser fundfee schedules. The Board additionally considered the Funds’brokerage commissions, turnover rates, sales and redemption data

and the significant investment that Dodge & Cox makes inresearch used in managing the Funds. The Board received andreviewed memoranda and related materials addressing, amongother things, Dodge & Cox’s services to the Funds; howDodge & Cox Funds’ fees compare to fees of peer group funds; thedifferent fees, services, costs, and risks associated with otheraccounts managed by Dodge & Cox as compared to theDodge & Cox Funds; and the ways in which the Funds realizeeconomies of scale. Throughout the process of reviewing theservices provided by Dodge & Cox and preparing for the meeting,the Independent Trustees found Dodge & Cox to be open,forthright, detailed, and very helpful in answering questions aboutall issues. The Board received copies of the Agreements and amemorandum from the independent legal counsel to theIndependent Trustees discussing the factors generally regarded asappropriate to consider in evaluating advisory arrangements. TheTrust’s Contract Review Committee, consisting solely ofIndependent Trustees, met with the independent legal counsel onNovember 11, 2015, and again on December 16, 2015, to discusswhether to renew the Agreements. The Board, including theIndependent Trustees, subsequently concluded that the existingAgreements are fair and reasonable and voted to approve theAgreements. In considering the Agreements, the Board, includingthe Independent Trustees, did not identify any single factor orparticular information as all-important or controlling. In reachingthe decision to approve the Agreements, the Board consideredseveral factors, discussed below, to be key factors and reached theconclusions described below.


The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through its


website and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and itsreputation as a trusted, shareholder-friendly mutual fund family. Inaddition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionalsthan most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.


The Board considered short-term and long-term investmentperformance for each Fund (including periods of outperformanceor underperformance) as compared to both relevant indices andthe performance of such Fund’s peer group. The Board noted thatthe Funds had weak absolute and relative performance in 2015, butremained solid performers over longer periods. The Boarddetermined after extensive review and inquiry that Dodge & Cox’shistoric, long-term, team-oriented, bottom-up investmentapproach remains consistent and that Dodge & Cox continues tobe distinguished by its integrity, transparency, and independence.The Board considered that the performance of the Funds is theresult of a team-oriented investment management process thatemphasizes a long-term investment horizon, comprehensiveindependent research, price discipline, low cost and low portfolioturnover. The Board also considered that the investmentperformance delivered by Dodge & Cox to the Funds appeared tobe consistent with the relevant performance delivered for otherclients of Dodge & Cox. The Board concluded that Dodge & Coxhas delivered favorable long-term performance for Fund investorsconsistent with the long-term investment strategies being pursuedby the Funds.


Costs of Services to Funds: Fees and Expenses. The Boardconsidered each Fund’s management fee rate and expense ratiorelative to each Fund’s peer group and relative to management feescharged by Dodge & Cox to other clients. In particular, the Boardconsidered that the Funds continue to be substantially below theirpeer group median in expense ratios and that many media andindustry reports specifically comment on the low expense ratios ofthe Funds, which have been a defining characteristic of the Fundsfor many years. The Board also evaluated the operating structuresof the Funds and Dodge & Cox, noting that the Funds do notcharge front-end sales commissions or distribution fees, andDodge & Cox bears, among other things, the significant cost of

third party research, reimbursement for recordkeeping andadministrative costs to third-party retirement plan administrators,and administrative and office overhead.



Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports ofDodge & Cox’s financial position, profitability, and estimatedoverall value, and considered Dodge & Cox’s overall profitabilitywithin its context as a private, employee-owned S-Corporationand relative to the favorable services provided. The Board noted inparticular that Dodge & Cox’s profits are not generated by high feerates, but reflect an extraordinarily streamlined, efficient, andfocused business approach toward investment management. TheBoard recognized the importance of Dodge & Cox’s profitability—which is derived solely from management fees and does notinclude other business ventures—to maintain its independence,stability, company culture and ethics, and management continuity.The Board also considered that the compensation/profit structure


at Dodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independent andfacilitating retention of management and investment professionals.The Board considered independent research indicating that firms thatgrow organically, rather than through acquisition, tend to have betterperformance. Key to organic growth is the ability to retain talentedand experienced analysts, portfolio managers and other professionals.

The Board also considered that in January 2015, Dodge & Coxclosed the International Stock Fund to new investors to pro-activelymanage the growth of the Fund. The Stock Fund and Balanced Fundwere similarly closed to new investors during periods of significantgrowth in the past. While these actions are intended to benefitexisting shareholders, the effect is to reduce potential revenues toDodge & Cox from new shareholders. The Board also consideredpotential “fall-out” benefits (including the receipt of research fromunaffiliated brokers and reputational benefits to non-U.S. fundssponsored and managed by Dodge & Cox) that Dodge & Cox mightreceive as a result of its association with the Funds and determinedthat they are acceptable. The Board also noted that Dodge & Coxcontinues to invest substantial sums in its business in order to provideenhanced services, systems and research capabilities, all of whichbenefit the Funds. The Board concluded that Dodge & Cox’sprofitability is the keystone of its independence, stability and long-term investment performance and that the profitability ofDodge & Cox’s relationship with the Funds (including fall-outbenefits) is fair and reasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In the Board’sview, any consideration of economies of scale must take account ofthe Funds’ low fee structure and the considerable efficiencies of theFunds’ organization and fee structure that has been realized byshareholders from the time of each Fund’s inception (i.e., from thefirst dollar). An assessment of economies of scale must also take intoaccount that Dodge & Cox invests significant time and resources ineach new Fund for months (and sometimes years) prior to launch; inaddition, expenses are capped, which means that Dodge & Cox earnsno revenue and subsidizes the operations of a new Fund for a periodof time until it reaches scale.

In addition, the Board noted that Dodge & Cox has sharedeconomies of scale by adding or enhancing services to the Fundsover time, and that the internal costs of providing investmentmanagement, up-to-date technology, administrative, legal, andcompliance services to the Funds continue to increase. Forexample, Dodge & Cox has increased its global research staff andinvestment resources over the years to address the increasedcomplexity of investing in multinational and non-U.S. companies.In addition, Dodge & Cox has made substantial expenditures inother staff, technology, cybersecurity, and infrastructure to enableit to integrate credit and equity analyses and to be able toimplement its strategy in a more effective and secure manner. Overthe last ten years, Dodge & Cox has increased its spending on

third party research, data services, trading systems, technology, andrecordkeeping service expenses at a rate that has significantlyoutpaced the Funds’ growth rate during the same period.

The Board considered that Dodge & Cox has a history ofvoluntarily limiting asset growth in several Funds that experiencedsignificant inflows by closing them to new investors in order to protectthe Funds’ ability to achieve good investment returns for shareholders.The Board also observed that, even without fee breakpoints, the Fundsare competitively priced in a very competitive market and that havinga low fee from inception is better for shareholders than starting with ahigher fee and adding breakpoints. The Board concluded that thecurrent Dodge & Cox fee structure is fair and reasonable andadequately shares economies of scale that may exist.

CONCLUSION

Based on their evaluation of all material factors and assisted by theadvice of independent legal counsel to the Independent Trustees, theBoard, including the Independent Trustees, concluded that theadvisory fee structure was fair and reasonable, that each Fund waspaying a competitive fee for the services provided, that the scope andquality of Dodge & Cox’s services has provided substantial value forFund shareholders over the long term, and that approval of theAgreements was in the best interests of each Fund and its shareholders.

FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the lists withthe Securities and Exchange Commission (SEC) on Form N-CSR(second and fourth quarters) and Form N-Q (first and third quarters).Shareholders may view the Fund’s Forms N-CSR and N-Q on theSEC’s website at sec.gov. Forms N-CSR and N-Q may also bereviewed and copied at the SEC’s Public Reference Room inWashington, DC. Information regarding the operations of the PublicReference Room may be obtained by calling 202-942-8090 (direct)or 800-732-0330 (general SEC number). A list of the Fund’s quarter-end holdings is also available at dodgeandcox.com on or about 15days following each quarter end and remains available on the websiteuntil the list is updated in the subsequent quarter.



If you have a direct account with the Funds and you do not wantthe mailing of shareholder reports and summary prospectusescombined with other members in your household, contact the Fundsat 800-621-3979. Your request will be implemented within 30 days.







Chairman (since 2013), Co-President (2011-2013), Senior Vice President(until 2011), and Director of Dodge & Cox; Chief Investment Officer,Portfolio Manager, Investment Analyst, and member of Investment PolicyCommittee (IPC), Global Stock Investment Policy Committee (GSIPC),International Investment Policy Committee (IIPC), and Fixed IncomeInvestment Policy Committee (FIIPC)

—

Dana M. Emery(54)



—



—




—







—





Trustee(Since 2002)


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Trustee(Since 2011)







—



—




Global Stock Fund

dodgeandcox.com


or write or call:

DODGE & COX FUNDS


INVESTMENT MANAGER





2015


Income FundE S T A B L I S H E D 1 9 8 9

T I C K E R : D O D I X

12/15 IF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox Income Fund had a total return of –0.6% forthe year ending December 31, 2015, compared to a total return of0.6% for the Barclays U.S. Aggregate Bond Index (Barclays U.S.Agg).

MARKET COMMENTARY

The U.S. bond market’s low 2015 return reflected price declinesassociated with rising U.S. Treasury rates and widening credit yieldpremiums(a), the combination of which largely offset the relativelylow level of income earned over the period. Many of the marketthemes influencing valuations in 2015 continued from late 2014,including changing expectations regarding U.S. Federal Reserve(Fed) policy, diverging global economic conditions and monetarypolicy, and concerns about the effect of China’s deceleratingeconomy on the global growth outlook.

The U.S. economy continued to expand moderately in 2015.Highlights included robust labor market gains, a decliningunemployment rate (to 5.0% by year end), an uptick in housingmarket activity, and increases in household and business spending.These factors were offset somewhat by a weak manufacturingsector and lower export demand. Outside the United States,flagging demand in Europe and China contributed to significantcommodity price declines, causing many commodity-dependentemerging market economies to suffer.

After much anticipation, the Fed raised the target federal fundsrate by 0.25 percentage points in December, marking the first rateincrease from the so-called zero lower bound since late 2008. TheFed cited improving U.S. economic data and reiterated its intent tonormalize monetary policy gradually. Headline inflation remainedquite subdued—well below the Fed’s long-term 2% objective—butcore CPI climbed throughout the year. Meanwhile, central bankpolicymakers elsewhere in the world moved in the oppositedirection, easing monetary policies in Europe, China, and Japan asa means of catalyzing growth in those regions.

Investment-grade corporate bonds returned –0.7%(b) for 2015,underperforming comparable-duration(c) Treasuries by 1.6 percentagepoints in the sector’s poorest relative result since 2011. Almost all ofthe underperformance occurred in the third quarter, and returnsvaried dramatically by corporate sub-sector. Financials produced apositive absolute return (+1.5%) as earnings were generally positiveand capital and liquidity profiles improved. In contrast, Industrialissuers performed poorly (–1.8% return and underperformance of 2.7percentage points vs. comparable-duration Treasuries), influenced byheavy new issuance related to record M&A activity in 2015, lowercommodity prices, global growth concerns, and higher levels ofindustrial leverage. Below-investment grade issuers fared even worsefor the year (–4.5% return), with the largest declines in lower-rated,commodity-sensitive issuers. Agency-guaranteed(d) mortgage-backedsecurities (MBS) returned 1.5% for the year, roughly in line withcomparable-duration Treasuries. The prepayment environmentremained muted throughout most of 2015.

INVESTMENT STRATEGY

2015 was an active year in terms of shifts in the Fund’s positioning,particularly related to the overall size and constituents of the creditportion(e) of the Fund, as much of that market became moreattractively priced. We have positioned the Fund with a substantial46%(f) weighting in corporate bonds, up from 38% at the end of 2014,and a 7% weighting in government-related securities, which includestaxable municipal securities and securities of non-U.S. governmententities. Including the Fund’s 1.7% position in Rio Oil (an asset-backed security that we group as a credit investment) brings theFund’s total credit weighting to 55%, its highest in two years. A 37%allocation to structured products—Agency-guaranteed MBS (at33%) and more traditional, AAA-rated asset-backed securities(4%)—rounds out the Fund’s non-U.S. Treasury sector exposures.We continued to reduce the Fund’s already-low Treasury weighting(5% at year end, a decline of six percentage points) to add to theFund’s credit holdings; we also maintained a shorter relative durationposition, presently 70% of the Barclays U.S. Agg’s duration.

Most of the increase in the Fund’s credit weighting occurredin the third quarter, as high levels of new issuance in connectionwith M&A financing provided many interesting investmentopportunities. Examples of new or growing positions in the Fundduring 2015 included Allergan, Charter Communications, HewlettPackard Enterprise, and Imperial Tobacco, each of which raiseddebt to finance transactions. M&A-related debt issuances oftenresult in higher leverage ratios for the issuing entity, and may alsobe priced attractively (wider yield premiums) at new issue. Muchof the recent increase in investment-grade corporate leverage hasbeen concentrated in highly rated issuers willing to incursomewhat higher leverage to implement strategic transactions.While the depth and breadth of our research effort enables us toreview nearly every large M&A-related investment-grade newissuance, we are selective in the Fund’s participation in theseissues. When evaluating acquisition-related financing, our globalindustry analyst team develops a view of the strategic rationale foreach M&A transaction and compiles a financial forecast assessingdeleveraging potential under a range of scenarios. Meanwhile, ourfixed income analyst team focuses on the balance sheet andliquidity implications, particularly in downside scenarios. Whenpricing appears attractive relative to these expectations and we seethe potential for the issuer to delever over time, we often find itcompelling to invest subsequent to a leveraging event.

In addition, we have recently found opportunities withinmarket sectors experiencing heightened volatility. In 2015, thesesegments were primarily the commodities sectors and emergingmarkets, with hardest-hit issuers exposed to both. Our analysis hasfocused on issuers whose securities appear undervalued relative tocredit fundamentals. Our investment team conducts in-depthassessments of the value of an issuer’s assets over a market cycle, aswell as its ability to weather a prolonged period of commodity priceweakness. This analysis has resulted in new or increased exposuresto Cemex, Codelco, Kinder Morgan, and Teck Resources. Wehave also maintained the Fund’s positions in Petrobras, Rio Oil

P A G E 2 ▪ D O D G E & C O X I N C O M E F U N D

Finance Trust, and Pemex (all of which underperformed substantiallyin 2015), based in part on potential downside protection provided bystrong government relationships and other sources of financialflexibility.

We continue to have a favorable view of subordinatedsecurities issued by large U.S. and UK banks, where the Fundretains a modest overweight. 2015 presented opportunities toexpand this theme to industrial issuers seeking to obtain financingwithout significant credit ratings degradation. Industrial hybridsecurities are subordinated securities that are given partial equitytreatment by the rating agencies. During the year we purchasedhybrid securities issued by TransCanada, a leading midstreamenergy company whose stability is supported by the long-termcontractual nature of its business, and BHP Billiton, the world’slargest mining company with a strong balance sheet and attractivecost positions in its operations.

We remain constructive on the Fund’s credit holdings, whichgenerally are diversified across market sectors, trade at attractiveprices, and have issuers with financial flexibility to weather thecurrent challenged environment. While we recognize that recentincreases in corporate leverage and shareholder remunerationcould result in weaker credit profiles, we believe that the U.S.economy remains healthy, default rates remain low and fairlyconcentrated in lower-rated, commodity-related issuers, andvaluations provide sufficient compensation for the current risks.

Turning to the Fund’s Agency MBS, currently a 33%weighting, we shifted both the weighting (between 33% and 36%)and the mix of underlying holdings throughout the year in responseto changing valuations. For example, we trimmed the Fund’s CMOfloaters, whose valuations became fuller, in favor of MBS with moreattractive long-term total return potential (e.g., pre-reset hybridARM MBS, 15- and 30-year premium MBS). We also sold aportion of shorter-duration MBS and AAA-rated ABS to purchaserelatively more attractive corporate bonds. We continue to viewthe Fund’s MBS favorably in terms of their ability to generateregular income, provide an important source of liquidity, and addan element of defensiveness in a volatile market environment forcredit markets. Indeed, they were important contributors to theFund’s 2015 return.

With respect to interest rate risk, we believe it is prudent tomitigate the effect of price declines associated with potentiallyrising interest rates through a shorter relative Fund duration. Wesee a clear disconnect between the slow pace of rate increasesimplied by current U.S. Treasury valuations and the faster paceexpected by Fed policymakers, particularly in the context of amodestly expanding economy (more than 2% growth is expectedover the next several years) and an inflation rate likely to rise asenergy and import prices stabilize. It is our view that interest rateswill rise more quickly than the levels implied by the market’s verymodest expectations.

IN CLOSING

The Fund’s recent relative performance has been disappointing.The headwind of a weak credit sector since mid-2014 has been theprimary factor behind this underperformance. While we are not

pleased with these returns, we remain confident in our investmentstrategy and process. We have navigated challenging environmentsin the past, and have used these environments to find attractivelong-term investment opportunities at compelling valuations.Furthermore, we believe that the current environment suits uswell, given our long-term orientation and focus on findingundervalued securities through a robust research process. Weremain optimistic about the Fund’s long-term relative returnprospects. However, given starting yields, we believe near-termabsolute returns will be modest at best.





January 29, 2016

(a) Yield premiums are one way to measure a security’s valuation. Narrowingyield premiums result in a higher valuation. Widening yield premiums resultin a lower valuation.

(b) Sector returns as calculated and reported by Barclays.(c) Duration is a measure of a bond’s (or a bond portfolio’s) price sensitivity to

changes in interest rates.(d) The U.S. Government does not guarantee the Fund’s shares, yield, or net

asset value. The agency guarantee (by, for example, Ginnie Mae, FannieMae, or Freddie Mac) does not eliminate market risk.

(e) Credit securities refers to corporate bonds and government-related securities,as classified by Barclays.

(f) Unless otherwise specified, all weightings and characteristics are as ofDecember 31, 2015.

D O D G E & C O X I N C O M E F U N D ▪ P A G E 3

ANNUAL PERFORMANCE REVIEWThe Fund underperformed the Barclays U.S. Agg by 1.2percentage points in 2015.

Key Detractors from Relat ive Results▪ Certain emerging market-related credit holdings underperformed

for the year, including Pemex, Petrobras, and Rio Oil FinanceTrust.

▪ The Fund’s overweight to the Industrial sub-sector (23%versus 14% for the Barclays U.S. Agg) and underweight toU.S. Treasuries (11% versus 36% for the Barclays U.S. Agg)detracted from relative returns.

▪ Corporate security selection was slightly negative; numerousindustrial issuers performed poorly, including Cemex, CoxCommunications, Kinder Morgan, Macy’s, and Teck Resources.

Key Contributors to Relat ive Results▪ The Fund’s shorter relative duration (approximately 70% of

the Barclays U.S. Agg’s duration) added to relative returns.▪ The Fund’s Agency MBS holdings outperformed the MBS in

the Barclays U.S. Agg after adjusting for duration differences.▪ The Fund’s nominal yield advantage benefited returns.

Unless otherwise noted, figures cited in this section denote Fundpositioning at the beginning of the period.



Experienced Investment TeamThe Fixed Income Investment Policy Committee, which is thedecision-making body for the Income Fund, is an eight-membercommittee with an average tenure at Dodge & Cox of 20 years.




Risks: The Fund invests in individual bonds whose yields andmarket values fluctuate, so that an investment may be worthmore or less than its original cost. Debt securities are subject tointerest rate risk, credit risk, and prepayment and call risk, all ofwhich could have adverse effects on the value of the Fund. Alow interest rate environment creates an elevated risk of futurenegative returns. Financial intermediaries may restrict theirmarket making activities for certain debt securities, which mayreduce the liquidity and increase the volatility of such securities.Please read the prospectus and summary prospectus for specificdetails regarding the Fund’s risk profile.



Dodge & Cox Income Fund $16,314

Barclays U.S. Agg $15,562

12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/155,000

10,000

$30,000

20,000



Dodge & Cox Income Fund –0.59% 3.60% 5.02% 5.68%Barclays U.S. Aggregate Bond Index

(Barclays U.S. Agg) 0.57 3.26 4.52 5.34


The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for anyincome taxes payable by shareholders on these distributions or onFund share redemptions. Index returns include interest incomebut, unlike Fund returns, do not reflect fees or expenses. TheBarclays U.S. Aggregate Bond Index (Barclays U.S. Agg) is awidely recognized, unmanaged index of U.S. dollar-denominated,investment-grade, taxable debt securities.

Barclays® is a trademark of Barclays Bank PLC.


ACTUAL EXPENSES








Based on Actual Fund Return $1,000.00 $ 993.20 $2.14Based on Hypothetical 5% Yearly Return 1,000.00 1,023.06 2.17* Expenses are equal to the Fund’s annualized expense ratio of 0.43%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the

one-half year period).


D O D G E & C O X I N C O M E F U N D ▪ P A G E 5


GENERAL INFORMATION

Net Asset Value Per Share $13.29Total Net Assets (billions) $43.130-Day SEC Yield(a) 3.47%2014 Expense Ratio (per 5/1/15 Prospectus) 0.44%2015 Expense Ratio 0.43%Portfolio Turnover Rate 24%Number of Credit Issuers 67Fund Inception 1989No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed bythe Fixed Income Investment Policy Committee, whose eightmembers’ average tenure at Dodge & Cox is 20 years.

PORTFOLIO CHARACTERISTICS FundBarclays

U.S. Agg

Effective Duration (years) 4.0 5.7

FIVE LARGEST CREDIT ISSUERS (%)( b ) Fund

State of California GO 2.2Bank of America Corp. 2.0Verizon Communications, Inc. 2.0Kinder Morgan, Inc. 1.9Cox Enterprises, Inc. 1.8

CREDIT QUALITY (%)( c ) FundBarclays

U.S. Agg

U.S. Treasury/Agency/GSE(d) 38.0 68.0Aaa 4.0 4.8Aa 3.1 3.5A 5.1 10.5Baa 35.9 13.2Ba 8.9 0.0B 2.1 0.0Caa 0.0(g) 0.0Cash Equivalents 2.9 0.0

ASSET ALLOCATION

Net Cash& Other:(e) 2.9%


SECTOR DIVERSIFICATION (%) FundBarclays

U.S. Agg

U.S. Treasury(d) 5.0 36.4Government-Related 7.4 8.2Mortgage-Related(f) 32.7 28.6Corporate 46.3 24.3Asset-Backed/Commercial Mortgage-Backed 5.7 2.5Cash Equivalents 2.9 0.0

MATURITY DIVERSIFICATION (%)( d ) FundBarclays

U.S. Agg

0-1 Years to Maturity 4.5 0.01-5 45.9 42.75-10 28.9 42.310-15 2.6 2.215-20 4.5 1.620-25 8.8 3.725 and Over 4.8 7.5

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular

security and is not indicative of Dodge & Cox’s current or future trading activity.(c) The credit quality distributions shown for the Fund and the Index are based on the middle of Moody’s, S&P’s, and Fitch ratings, which is the methodology used by

Barclays in constructing its indices. If a security is rated by only two agencies, the lower of the two ratings is used. Please note the Fund applies the highest ofMoody’s, S&P’s, and Fitch ratings to determine compliance with the quality requirements stated in its prospectus. On that basis, the Fund held 6.4% in securitiesrated below investment grade. The credit quality of the investments in the portfolio does not apply to the stability or safety of the Fund or its shares.

(d) Data as presented excludes the Fund’s position in Treasury futures contracts.(e) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,

payables, and unrealized appreciation/depreciation on certain derivatives).(f) The Fund holds 0.4% in Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency.(g) Rounds to 0.0%.




PAR VALUE VALUE

U.S. TREASURY: 5.0%U.S. Treasury Note/Bond

1.50%, 8/31/18 $250,000,000 $ 251,701,5000.875%, 10/15/18 300,000,000 296,724,3001.50%, 2/28/19 496,995,000 498,648,9991.625%, 7/31/19 600,000,000 602,200,8001.625%, 12/31/19 500,000,000 500,125,500

2,149,401,099GOVERNMENT-RELATED: 7.4%FEDERAL AGENCY: 0.3%Small Business Admin. — 504 Program

Series 1997-20E 1, 7.30%, 5/1/17 24,882 25,648Series 1997-20H 1, 6.80%, 8/1/17 7,796 7,948Series 1997-20J 1, 6.55%, 10/1/17 111,816 114,405Series 1997-20L 1, 6.55%, 12/1/17 5,005 5,124Series 1998-20B 1, 6.15%, 2/1/18 13,525 14,154Series 1998-20C 1, 6.35%, 3/1/18 435,206 457,822Series 1998-20H 1, 6.15%, 8/1/18 233,918 246,212Series 1998-20L 1, 5.80%, 12/1/18 132,203 138,410Series 1999-20C 1, 6.30%, 3/1/19 129,925 134,730Series 1999-20E 1, 6.30%, 5/1/19 3,584 3,716Series 1999-20G 1, 7.00%, 7/1/19 243,730 253,446Series 1999-20I 1, 7.30%, 9/1/19 119,298 124,182Series 2000-20C 1, 7.625%, 3/1/20 7,298 7,742Series 2000-20G 1, 7.39%, 7/1/20 4,441 4,699Series 2001-20G 1, 6.625%, 7/1/21 969,601 1,053,103Series 2001-20L 1, 5.78%, 12/1/21 2,904,898 3,095,072Series 2002-20A 1, 6.14%, 1/1/22 22,348 24,155Series 2002-20L 1, 5.10%, 12/1/22 862,659 920,246Series 2003-20G 1, 4.35%, 7/1/23 56,562 59,378Series 2004-20L 1, 4.87%, 12/1/24 1,296,779 1,382,839Series 2005-20B 1, 4.625%, 2/1/25 2,367,752 2,506,263Series 2005-20D 1, 5.11%, 4/1/25 107,053 115,828Series 2005-20E 1, 4.84%, 5/1/25 3,977,227 4,232,604Series 2005-20G 1, 4.75%, 7/1/25 4,005,706 4,250,920Series 2005-20H 1, 5.11%, 8/1/25 52,810 56,941Series 2005-20I 1, 4.76%, 9/1/25 4,980,293 5,292,317Series 2006-20A 1, 5.21%, 1/1/26 4,938,826 5,324,703Series 2006-20B 1, 5.35%, 2/1/26 1,525,995 1,657,611Series 2006-20C 1, 5.57%, 3/1/26 7,182,729 7,854,678Series 2006-20G 1, 6.07%, 7/1/26 13,100,376 14,647,576Series 2006-20H 1, 5.70%, 8/1/26 114,131 126,308Series 2006-20I 1, 5.54%, 9/1/26 240,274 262,899Series 2006-20J 1, 5.37%, 10/1/26 4,518,289 4,923,048Series 2006-20L 1, 5.12%, 12/1/26 3,545,363 3,843,033Series 2007-20A 1, 5.32%, 1/1/27 8,657,970 9,545,779Series 2007-20C 1, 5.23%, 3/1/27 13,297,620 14,590,409Series 2007-20D 1, 5.32%, 4/1/27 13,335,560 14,689,595Series 2007-20G 1, 5.82%, 7/1/27 9,282,355 10,459,094

112,452,637FOREIGN AGENCY: 2.3%Corp. Nacional del Cobre de Chile(c) (Chile)

4.50%, 9/16/25(b) 122,575,000 115,425,936Petroleo Brasileiro SA(c) (Brazil)

5.75%, 1/20/20 43,955,000 34,504,6755.375%, 1/27/21 187,220,000 139,478,9004.375%, 5/20/23 38,625,000 25,492,5006.25%, 3/17/24 80,805,000 57,977,587

Petroleos Mexicanos(c) (Mexico)4.875%, 1/18/24 123,065,000 114,758,1124.25%, 1/15/25(b) 97,765,000 85,544,3754.50%, 1/23/26(b) 15,065,000 13,234,6036.625%, 6/15/35 102,290,000 91,421,6875.50%, 6/27/44 5,900,000 4,438,8065.50%, 6/27/44(b) 36,075,000 27,140,6666.375%, 1/23/45 149,875,000 127,358,9795.625%, 1/23/46(b) 190,720,000 145,938,944

982,715,770

PAR VALUE VALUE

LOCAL AUTHORITY: 4.7%L.A. Unified School District GO

5.75%, 7/1/34 $ 6,075,000 $ 7,313,1466.758%, 7/1/34 185,585,000 244,530,508

New Jersey Turnpike Authority RB7.414%, 1/1/40 41,065,000 58,322,5667.102%, 1/1/41 148,277,000 203,800,805

New Valley Generation4.929%, 1/15/21 340,287 368,052

State of California GO7.50%, 4/1/34 203,021,000 283,289,4137.55%, 4/1/39 200,880,000 291,780,2097.30%, 10/1/39 116,735,000 163,381,1387.625%, 3/1/40 103,410,000 150,592,8817.60%, 11/1/40 56,435,000 83,763,649

State of Illinois GO4.961%, 3/1/16 40,560,000 40,811,0665.365%, 3/1/17 196,360,000 203,650,8475.665%, 3/1/18 173,675,000 183,895,7745.10%, 6/1/33 124,455,000 117,690,871

2,033,190,925SOVEREIGN: 0.1%Spain Government International (c) (Spain)

4.00%, 3/6/18(b) 55,790,000 58,193,545

3,186,552,877MORTGAGE-RELATED: 32.7%FEDERAL AGENCY CMO & REMIC: 3.2%Dept. of Veterans Affairs

Series 1995-2D 4A, 9.293%, 5/15/25 145,506 178,423Series 1997-2 Z, 7.50%, 6/15/27 9,751,483 11,003,619Series 1998-2 2A, 8.693%, 8/15/27 38,255 44,805Series 1998-1 1A, 8.209%, 3/15/28 219,820 254,336

Fannie MaeTrust 1998-58 PX, 6.50%, 9/25/28 427,092 470,195Trust 1998-58 PC, 6.50%, 10/25/28 2,310,178 2,574,165Trust 2001-69 PQ, 6.00%, 12/25/31 2,667,209 3,002,085Trust 2002-33 A1, 7.00%, 6/25/32 2,513,867 2,816,246Trust 2002-69 Z, 5.50%, 10/25/32 315,970 352,984Trust 2008-24 GD, 6.50%, 3/25/37 2,424,010 2,684,804Trust 2007-47 PE, 5.00%, 5/25/37 6,239,945 6,692,835Trust 2009-30 AG, 6.50%, 5/25/39 14,068,493 15,237,184Trust 2009-53 QM, 5.50%, 5/25/39 3,437,366 3,685,011Trust 2009-40 TB, 6.00%, 6/25/39 6,494,274 7,204,096Trust 2001-T3 A1, 7.50%, 11/25/40 134,874 157,013Trust 2010-123 WT, 7.00%, 11/25/40 52,894,063 61,029,609Trust 2001-T7 A1, 7.50%, 2/25/41 88,383 103,282Trust 2001-T5 A2, 6.989%, 6/19/41 51,853 58,242Trust 2001-T5 A3, 7.50%, 6/19/41 260,737 310,032Trust 2001-T4 A1, 7.50%, 7/25/41 2,401,671 2,839,952Trust 2011-58 AT, 4.00%, 7/25/41 12,743,491 13,223,814Trust 2001-T10 A1, 7.00%, 12/25/41 2,710,771 3,179,728Trust 2013-106 MA, 4.00%, 2/25/42 25,970,249 27,496,113Trust 2002-90 A1, 6.50%, 6/25/42 5,514,942 6,244,734Trust 2002-W6 2A1, 6.321%, 6/25/42 3,148,434 3,665,612Trust 2002-W8 A2, 7.00%, 6/25/42 1,841,433 2,098,061Trust 2002-T16 A3, 7.50%, 7/25/42 3,993,802 4,623,202Trust 2003-W2 1A2, 7.00%, 7/25/42 8,407,371 9,762,673Trust 2003-W4 3A, 6.561%, 10/25/42 2,514,950 2,839,493Trust 2012-121 NB, 7.00%, 11/25/42 1,687,780 1,946,294Trust 2003-7 A1, 6.50%, 12/25/42 4,454,329 5,119,161Trust 2003-W1 2A, 6.392%, 12/25/42 3,240,697 3,729,835Trust 2012-133 HF, 0.772%, 12/25/42 51,002,673 51,201,890Trust 2012-134 FD, 0.772%, 12/25/42 1,374,965 1,379,725Trust 2012-134 FT, 0.772%, 12/25/42 72,211,974 72,106,321Trust 2013-98 FA, 0.972%, 9/25/43 48,863,321 49,434,113Trust 2013-101 CF, 1.022%, 10/25/43 24,492,837 24,719,741

See accompanying Notes to Financial Statements D O D G E & C O X I N C O M E F U N D ▪ P A G E 7



PAR VALUE VALUE

Trust 2013-101 FE, 1.022%, 10/25/43 $ 39,072,948 $ 39,463,822Trust 2004-T1 1A2, 6.50%, 1/25/44 2,811,476 3,138,873Trust 2004-W2 2A2, 7.00%, 2/25/44 147,903 167,997Trust 2004-W2 5A, 7.50%, 3/25/44 6,824,597 7,781,906Trust 2004-W8 3A, 7.50%, 6/25/44 5,139,443 5,979,654Trust 2004-W14 1AF, 0.822%, 7/25/44 1,939,751 1,912,776Trust 2004-W15 1A2, 6.50%, 8/25/44 1,115,003 1,231,412Trust 2005-W1 1A3, 7.00%, 10/25/44 7,357,811 8,387,652Trust 2001-79 BA, 7.00%, 3/25/45 873,791 993,601Trust 2006-W1 1A1, 6.50%, 12/25/45 554,568 623,322Trust 2006-W1 1A2, 7.00%, 12/25/45 4,066,186 4,692,731Trust 2006-W1 1A3, 7.50%, 12/25/45 71,084 82,100Trust 2006-W1 1A4, 8.00%, 12/25/45 4,652,779 5,531,068Trust 2007-W10 1A, 6.315%, 8/25/47 18,269,753 20,456,277Trust 2007-W10 2A, 6.324%, 8/25/47 5,244,232 5,860,933

Freddie MacSeries 2456 CJ, 6.50%, 6/15/32 234,421 264,277Series 3312 AB, 6.50%, 6/15/32 4,450,335 4,990,524Series T-41 2A, 5.812%, 7/25/32 311,554 356,568Series 2587 ZU, 5.50%, 3/15/33 7,177,250 8,051,584Series 2610 UA, 4.00%, 5/15/33 2,603,484 2,704,708Series T-48 1A, 5.464%, 7/25/33 3,219,620 3,718,306Series 2708 ZD, 5.50%, 11/15/33 27,253,897 30,214,335Series 3204 ZM, 5.00%, 8/15/34 9,717,783 10,873,964Series 3330 GZ, 5.50%, 6/15/37 6,364,269 6,877,120Series 4091 JF, 0.831%, 6/15/41 34,928,663 35,113,949Series 4120 YF, 0.681%, 10/15/42 77,374,187 77,742,944Series 309 F4, 0.861%, 8/15/43 87,134,952 86,077,522Series 311 F1, 0.881%, 8/15/43 113,397,893 112,025,953Series T-51 1A, 6.50%, 9/25/43 72,786 84,802Series 4281 BC, 4.786%, 12/15/43 209,428,788 225,958,898Series 4283 DW, 4.831%, 12/15/43 126,715,000 137,843,656Series 4283 EW, 4.683%, 12/15/43 77,420,658 83,955,984Series 4310 FA, 0.881%, 2/15/44 3,047,562 3,047,548Series 4319 MA, 5.026%, 3/15/44 38,337,000 42,060,665

1,381,736,859FEDERAL AGENCY MORTGAGE PASS-THROUGH: 29.5%Fannie Mae, 10 Year

6.00%, 11/1/16 246,089 248,714Fannie Mae, 15 Year

3.50%, 8/1/26-12/1/29 800,843,886 839,998,7154.00%, 9/1/25-5/1/29 210,720,621 223,409,1354.50%, 3/1/29 47,030,431 50,546,3045.00%, 9/1/25 75,564,467 81,350,4795.50%, 1/1/18-7/1/25 205,240,634 222,454,7296.00%, 7/1/16-3/1/23 71,990,929 77,317,0946.50%, 5/1/16-12/1/19 5,198,921 5,320,4787.00%, 11/1/17 6,149 6,2537.50%, 8/1/17 70,340 71,379

Fannie Mae, 20 Year4.00%, 9/1/30-7/1/35 2,587,757,122 2,767,465,5694.50%, 3/1/29-1/1/34 736,111,213 798,572,337

Fannie Mae, 30 Year4.50%, 6/1/36-2/1/45 913,899,731 991,081,6575.00%, 7/1/37 16,645,776 18,388,6885.50%, 2/1/33-11/1/39 274,213,435 308,216,1776.00%, 11/1/28-2/1/39 179,729,016 204,911,0496.50%, 12/1/32-8/1/39 77,343,880 89,196,4157.00%, 4/1/32-2/1/39 111,585,383 129,145,893

Fannie Mae, 40 Year4.50%, 1/1/52 14,324,834 15,340,512

Fannie Mae, Hybrid ARM1.881%, 8/1/34 2,306,487 2,402,0741.884%, 6/1/43 6,412,433 6,554,8081.956%, 9/1/43 14,541,908 14,906,2641.991%, 1/1/35 3,526,501 3,687,578

PAR VALUE VALUE

2.008%, 4/1/35 $ 4,272,020 $ 4,496,5762.07%, 11/1/35 2,670,407 2,790,3722.128%, 4/1/44 84,904,636 87,949,8682.169%, 7/1/35 1,672,315 1,767,2392.17%, 8/1/35 2,592,642 2,735,7462.191%, 10/1/34 2,669,567 2,799,6982.194%, 7/1/35 1,978,426 2,088,8272.214%, 8/1/35 8,755,321 9,224,0852.237%, 9/1/34 3,606,884 3,805,0952.281%, 12/1/42 26,082,611 26,250,8282.289%, 5/1/43 5,512,318 5,546,8562.302%, 7/1/35 2,490,331 2,639,1702.311%, 10/1/43 66,096,177 67,347,4622.321%, 2/1/44 4,992,102 5,114,8622.35%, 1/1/37 4,386,771 4,611,0342.371%, 9/1/42 15,680,251 16,034,2492.393%, 8/1/34 738,464 783,9632.397%, 10/1/38 9,822,166 10,397,9822.398%, 10/1/33 3,149,535 3,339,3322.399%, 12/1/36 3,797,562 4,005,7272.412%, 7/1/34 3,376,707 3,563,3992.415%, 2/1/43 22,285,757 22,811,1142.416%, 10/1/35 3,747,603 3,964,8972.433%, 6/1/35 1,339,022 1,412,6302.451%, 10/1/38 2,463,990 2,618,0712.47%, 1/1/36 5,886,195 6,226,4282.471%, 1/1/36 4,541,752 4,806,4572.474%, 5/1/44 24,095,420 24,666,2222.475%, 10/1/38 5,587,495 5,869,7152.476%, 11/1/36 2,954,946 3,136,6112.479%, 12/1/35-5/1/38 220,890,585 233,789,4692.489%, 10/1/44 11,373,974 11,558,6002.50%, 7/1/35 2,193,708 2,327,5612.505%, 10/1/35 2,631,963 2,783,9872.506%, 11/1/42 15,135,933 15,510,8862.517%, 9/1/35 3,402,851 3,604,3052.558%, 1/1/36 22,455,501 23,754,1192.561%, 8/1/35 5,070,129 5,394,6312.571%, 4/1/45 10,852,275 11,016,9962.601%, 4/1/42 19,446,107 20,008,2412.625%, 9/1/38 1,105,905 1,177,2712.66%, 2/1/43 9,315,226 9,811,0942.674%, 8/1/45 22,412,131 22,804,5762.675%, 10/1/44 23,757,282 24,271,3392.698%, 11/1/43 23,901,698 24,532,5162.702%, 4/1/44 27,654,815 28,557,4382.717%, 12/1/44 11,695,367 11,948,6522.719%, 2/1/45 33,558,952 34,261,7852.72%, 12/1/44 7,692,711 7,860,4622.721%, 10/1/44 17,293,969 17,687,6762.731%, 9/1/44 17,817,126 18,242,4682.739%, 2/1/37 10,913,461 11,602,7892.74%, 8/1/45 21,609,630 22,044,9702.743%, 11/1/44 9,363,226 9,577,3592.75%, 12/1/44 8,005,738 8,187,0412.759%, 9/1/44 19,069,689 19,532,4532.764%, 10/1/44 17,720,770 18,139,3952.769%, 11/1/44 15,911,672 16,280,5832.783%, 12/1/44 56,871,308 58,180,9532.787%, 2/1/44 10,278,368 10,554,9852.80%, 8/1/44-10/1/44 76,544,703 78,387,1772.801%, 1/1/35 1,372,432 1,453,0172.803%, 12/1/44 26,888,409 27,512,7392.814%, 10/1/44 33,261,468 34,058,2092.835%, 8/1/44 48,711,517 49,904,2972.848%, 10/1/44 20,726,300 21,226,890

P A G E 8 ▪ D O D G E & C O X I N C O M E F U N D See accompanying Notes to Financial Statements



PAR VALUE VALUE

2.85%, 10/1/44 $ 22,200,611 $ 22,728,4882.86%, 11/1/44 32,169,041 32,958,2452.864%, 7/1/44 29,631,331 30,396,6452.867%, 11/1/44 29,915,171 30,651,8472.88%, 9/1/44 60,821,053 62,416,3302.889%, 9/1/44-10/1/44 26,569,323 27,251,9372.894%, 10/1/44 10,435,897 10,700,7052.896%, 7/1/44 20,446,306 21,004,3352.915%, 8/1/44 11,332,393 11,634,8242.918%, 2/1/44 16,269,225 16,760,4712.928%, 4/1/44 11,052,054 11,373,8722.93%, 10/1/44 37,875,379 38,881,7832.932%, 1/1/45 24,416,718 25,059,1802.933%, 7/1/44 15,059,049 15,484,2482.934%, 9/1/43 12,457,920 12,841,6252.935%, 11/1/44 29,559,493 30,343,1742.938%, 11/1/43 21,763,709 22,312,4242.944%, 4/1/44 10,868,773 11,187,2502.954%, 11/1/44 28,329,937 29,105,3862.965%, 7/1/44 11,203,665 11,526,4842.976%, 10/1/44 23,055,337 23,705,2303.002%, 9/1/44 35,269,218 36,313,7353.023%, 8/1/44 15,385,878 15,850,2543.05%, 5/1/44 46,658,354 48,167,9073.203%, 4/1/44 35,247,177 36,368,1973.444%, 7/1/41 69,632,696 73,237,9474.127%, 12/1/39 4,141,439 4,373,5794.831%, 4/1/38 741,995 788,3435.031%, 5/1/38 2,545,726 2,696,9695.145%, 8/1/37 719,354 739,0535.272%, 6/1/39 1,347,451 1,440,1775.593%, 11/1/37 1,500,371 1,592,2815.596%, 4/1/37 743,019 795,4325.621%, 7/1/36 69,417 69,0035.754%, 8/1/37 3,252,836 3,457,5625.862%, 12/1/36 1,571,302 1,665,268

Fannie Mae, Multifamily DUSTrust 2014-M13 ASQ2, 1.637%, 11/25/17 57,955,932 58,136,511Pool AL6445, 2.405%, 1/1/22 24,893,787 25,412,080Pool AL6455, 2.552%, 11/1/21 29,305,788 30,160,742Pool AL6028, 2.934%, 7/1/21 5,004,967 5,144,361Pool 745629, 5.389%, 1/1/18 109,689 113,041Pool 888559, 5.487%, 6/1/17 9,976,584 10,404,728Pool 888015, 5.496%, 11/1/16 20,439,338 20,426,623Pool 735745, 5.60%, 1/1/17 542 542Pool 745936, 6.061%, 8/1/16 602,706 612,444

Freddie Mac, Hybrid ARM1.921%, 1/1/36 3,477,396 3,660,0152.101%, 8/1/36 4,006,797 4,206,7862.155%, 1/1/35 1,762,455 1,863,4182.189%, 3/1/37 5,134,789 5,444,3852.208%, 2/1/38 11,584,017 12,135,9012.216%, 4/1/37 1,782,770 1,883,1892.31%, 1/1/37 3,755,662 3,990,0372.328%, 5/1/37 3,716,851 3,941,1122.37%, 7/1/37 10,672,846 11,363,7202.375%, 4/1/35 1,353,397 1,440,3142.386%, 10/1/35 4,355,497 4,568,7732.391%, 2/1/34 7,216,321 7,687,0232.394%, 4/1/38 10,044,623 10,669,8312.399%, 4/1/37 2,679,394 2,813,9962.402%, 6/1/38 6,090,733 6,422,4942.407%, 1/1/36 3,876,895 4,103,5602.445%, 7/1/43 9,419,624 9,827,3082.447%, 10/1/38 1,240,045 1,309,8982.451%, 1/1/36 9,584,063 10,160,381

PAR VALUE VALUE

2.452%, 3/1/35 $ 1,783,179 $ 1,888,0662.455%, 10/1/38 3,565,171 3,773,5462.487%, 8/1/35 2,219,435 2,340,1802.489%, 2/1/35 1,297,592 1,375,8442.494%, 4/1/38 12,001,401 12,763,0072.529%, 9/1/33 8,619,235 9,168,0922.546%, 8/1/34 1,423,906 1,514,1052.552%, 4/1/36 5,693,303 6,035,2352.582%, 9/1/35 3,273,550 3,457,4462.617%, 11/1/34 1,859,597 1,959,2432.62%, 8/1/35 3,378,580 3,597,6162.643%, 8/1/45 19,128,762 19,404,7192.731%, 1/1/45 23,828,838 24,302,3672.738%, 9/1/44 17,092,607 17,458,0702.741%, 6/1/45 9,466,024 9,625,4252.752%, 11/1/44 30,955,044 31,615,8662.771%, 10/1/43 4,512,532 4,637,3482.798%, 12/1/44 8,241,469 8,415,9072.818%, 9/1/44 21,311,390 21,789,7582.832%, 10/1/44 51,301,145 52,360,5192.835%, 10/1/44 11,310,617 11,565,8182.84%, 11/1/44 37,962,261 38,816,5732.843%, 1/1/45 21,196,127 21,661,1432.856%, 8/1/45 16,963,029 17,311,2592.873%, 12/1/44 22,632,553 23,154,7672.891%, 6/1/44 13,313,243 13,650,0152.897%, 12/1/44 38,464,632 39,378,5272.903%, 11/1/44 22,177,441 22,711,4602.904%, 2/1/44 18,700,993 19,227,9962.911%, 8/1/44 16,064,737 16,468,7592.92%, 12/1/44 33,353,250 34,176,1112.927%, 11/1/44 11,915,819 12,209,9972.928%, 1/1/45-2/1/45 49,079,334 50,277,0512.932%, 1/1/45 29,982,107 30,721,4182.939%, 1/1/44 10,593,572 10,908,0392.943%, 11/1/44 18,621,858 19,098,4282.947%, 11/1/44 50,853,178 52,162,9112.953%, 11/1/44 14,899,807 15,290,4552.959%, 12/1/44 18,850,353 19,339,3412.966%, 9/1/44-11/1/44 48,601,169 49,900,1492.991%, 11/1/44 24,302,013 24,958,4183.015%, 7/1/44 11,243,962 11,562,7183.02%, 5/1/44-10/1/44 213,994,107 220,371,7903.022%, 7/1/44 13,668,619 14,065,4423.025%, 10/1/44 24,638,087 25,337,5893.043%, 8/1/44 17,862,494 18,380,5133.058%, 4/1/44 14,158,052 14,581,3523.10%, 6/1/44 40,452,822 41,711,3603.105%, 8/1/44 19,500,908 20,096,2193.129%, 1/1/44 9,749,833 10,059,6023.137%, 4/1/44 6,852,932 7,069,3943.581%, 6/1/41 10,530,420 11,013,3933.694%, 9/1/41 13,495,562 14,153,9114.797%, 6/1/38 1,452,792 1,532,8575.195%, 5/1/38 4,027,208 4,271,8645.498%, 11/1/39 4,753,471 5,023,6875.784%, 1/1/38 1,693,594 1,795,7326.178%, 12/1/36 2,279,561 2,409,2236.182%, 10/1/37 643,723 685,119

Freddie Mac Gold, 10 Year6.00%, 9/1/16 79,918 80,519

Freddie Mac Gold, 15 Year4.00%, 6/1/26-6/1/27 376,943,736 398,252,4794.50%, 3/1/25-6/1/26 24,828,127 26,588,1955.50%, 10/1/20-12/1/24 12,608,880 13,434,9516.00%, 8/1/16-11/1/23 24,205,400 26,093,2646.50%, 5/1/16-9/1/18 1,461,315 1,491,791

See accompanying Notes to Financial Statements D O D G E & C O X I N C O M E F U N D ▪ P A G E 9



PAR VALUE VALUE

Freddie Mac Gold, 20 Year4.00%, 9/1/31-6/1/35 $ 351,048,364 $ 375,362,6674.50%, 5/1/30-1/1/34 180,316,302 195,751,9676.00%, 7/1/25-12/1/27 34,264,242 38,463,5056.50%, 7/1/21-10/1/26 4,398,131 5,008,613

Freddie Mac Gold, 30 Year4.50%, 3/1/39-7/1/45 1,083,467,253 1,170,822,8915.50%, 3/1/34-12/1/38 96,598,961 107,402,6036.00%, 2/1/33-2/1/39 39,549,995 44,971,6236.50%, 12/1/32-10/1/38 22,498,505 25,653,7087.00%, 4/1/31-11/1/38 6,578,891 7,653,1307.90%, 2/17/21 366,298 391,837

Ginnie Mae, 30 Year7.00%, 5/15/28 433,409 495,7787.50%, 9/15/17-5/15/25 1,491,941 1,689,2987.80%, 6/15/20-1/15/21 334,342 356,4287.85%, 1/15/21-10/15/21 6,443 6,4858.00%, 9/15/20 6,185 6,711

12,739,298,350PRIVATE LABEL CMO & REMIC: 0.0%(f)

GSMPS Mortgage Loan TrustSeries 2004-4 1A4, 8.50%, 6/25/3430 Year(b) 5,112,029 5,510,549

14,126,545,758ASSET-BACKED: 5.7%AUTO LOAN: 0.7%Ford Credit Auto Owner Trust

Series 2012-B A4, 1.00%, 9/15/17 3,893,649 3,893,953Series 2014-C A3, 1.06%, 5/15/19 9,025,000 9,003,360Series 2015-B A3, 1.16%, 11/15/19 57,115,000 56,692,646Series 2015-1 A, 2.12%, 7/15/26(b) 200,480,000 197,990,098

Toyota Auto Receivables Owner TrustSeries 2014-B A3, 0.76%, 3/15/18 13,555,000 13,520,759Series 2015-A A3, 1.12%, 2/15/19 8,325,000 8,302,381Series 2014-C A4, 1.44%, 4/15/20 20,975,000 20,940,085

310,343,282CREDIT CARD: 2.6%American Express Master Trust

Series 2014-2 A, 1.26%, 1/15/20 10,900,000 10,877,420Series 2014-3 A, 1.49%, 4/15/20 381,035,481 381,146,057

Chase Issuance TrustSeries 2006-A2 A2, 5.16%, 4/16/18 17,465,000 17,551,382Series 2013-A8 A8, 1.01%, 10/15/18 11,740,000 11,729,138Series 2014-A1 A1, 1.15%, 1/15/19 152,146,000 152,023,675Series 2014-A6 A6, 1.26%, 7/15/19 24,285,000 24,233,030Series 2014-A7 A7, 1.38%, 11/15/19 250,740,000 250,027,297Series 2015-A2 A2, 1.59%, 2/18/20 260,397,000 260,391,219

1,107,979,218OTHER: 1.7%Rio Oil Finance Trust(c) (Brazil)

9.25%, 7/6/24(b) 592,816,000 438,683,8409.75%, 1/6/27(b) 382,550,000 281,174,250

719,858,090STUDENT LOAN: 0.7%Navient Student Loan Trust (Private Loans)

Series 2014-AA A2A, 2.74%, 2/15/29(b) 35,880,000 35,217,698SLM Student Loan Trust (Private Loans)

Series 2013-A A2A, 1.77%, 5/17/27(b) 58,445,000 57,168,766Series 2012-B A2, 3.48%, 10/15/30(b) 68,051,448 68,985,950Series 2013-C A2A, 2.94%, 10/15/31(b) 41,885,000 42,171,506Series 2012-E A2A, 2.09%, 6/15/45(b) 14,555,000 14,434,832Series 2012-C A2, 3.31%, 10/15/46(b) 94,748,000 95,940,044

313,918,796

2,452,099,386

PAR VALUE VALUE

CORPORATE: 46.3%FINANCIALS: 15.5%Anthem, Inc.

7.00%, 2/15/19 $ 83,470,000 $ 93,795,4063.70%, 8/15/21 48,839,000 49,943,689

Bank of America Corp.7.625%, 6/1/19 188,582,000 218,222,9425.625%, 7/1/20 73,416,000 81,578,0244.20%, 8/26/24 163,140,000 163,376,8794.25%, 10/22/26 127,024,000 125,745,6306.625%, 5/23/36(a) 241,528,000 275,087,591

Barclays PLC(c) (United Kingdom)4.375%, 9/11/24 275,404,000 269,295,815

BNP Paribas SA(c) (France)4.25%, 10/15/24 379,446,000 376,095,8714.375%, 9/28/25(b) 65,275,000 63,935,753

Boston Properties, Inc.5.875%, 10/15/19 48,079,000 53,374,0365.625%, 11/15/20 79,385,000 88,390,1174.125%, 5/15/21 52,852,000 55,383,7173.85%, 2/1/23 99,296,000 101,373,7693.125%, 9/1/23 44,040,000 42,899,5843.80%, 2/1/24 88,654,000 90,186,739

Capital One Financial Corp.4.75%, 7/15/21 182,195,000 197,441,9893.50%, 6/15/23 193,115,000 192,043,9843.75%, 4/24/24 36,940,000 37,198,5433.20%, 2/5/25 67,240,000 65,034,2594.20%, 10/29/25 64,960,000 64,171,710

Cigna Corp.4.00%, 2/15/22 62,964,000 65,095,0177.65%, 3/1/23 6,317,000 7,662,2687.875%, 5/15/27 33,255,000 43,727,2668.30%, 1/15/33 8,195,000 10,764,0106.15%, 11/15/36 88,097,000 100,330,9425.875%, 3/15/41 18,489,000 21,266,1965.375%, 2/15/42 54,405,000 59,595,999

Citigroup, Inc.2.062%, 5/15/18 120,345,000 122,382,3213.50%, 5/15/23 105,730,000 103,963,5696.692%, 10/30/40(a) 381,543,025 399,704,473

Equity Residential4.75%, 7/15/20 5,200,000 5,619,2404.625%, 12/15/21 102,744,000 111,557,3803.00%, 4/15/23 47,300,000 46,464,6823.375%, 6/1/25 77,890,000 77,090,615

General Electric Co.2.342%, 11/15/20(b) 228,648,000 226,972,696

Health Net, Inc.6.375%, 6/1/17 120,854,000 125,688,160

HSBC Holdings PLC(c) (United Kingdom)5.10%, 4/5/21 85,935,000 95,542,4479.30%, 6/1/21 100,000 127,3386.50%, 5/2/36 179,105,000 213,642,8926.50%, 9/15/37 195,591,000 234,671,8426.80%, 6/1/38 32,000,000 39,829,920

JPMorgan Chase & Co.3.375%, 5/1/23 92,238,000 90,704,1744.125%, 12/15/26 106,000,000 105,809,3068.75%, 9/1/30(a) 48,438,000 69,369,319

Lloyds Banking Group PLC(c)

(United Kingdom)4.50%, 11/4/24 218,317,000 221,645,898

P A G E 1 0 ▪ D O D G E & C O X I N C O M E F U N D See accompanying Notes to Financial Statements



PAR VALUE VALUE

Navient Corp.6.00%, 1/25/17 $166,603,000 $ 170,768,0754.625%, 9/25/17 111,437,000 109,765,4458.45%, 6/15/18 192,028,000 202,109,470

Royal Bank of Scotland Group PLC(c)

(United Kingdom)6.125%, 12/15/22 292,243,000 318,167,5846.00%, 12/19/23 264,320,000 284,674,226

Unum Group7.19%, 2/1/28 11,295,000 13,265,7407.25%, 3/15/28 25,060,000 29,152,3986.75%, 12/15/28 8,107,000 9,514,448

Wells Fargo & Co.4.30%, 7/22/27 247,864,000 253,229,016

6,694,450,419INDUSTRIALS: 29.5%Allergan PLC(c) (Ireland)

3.00%, 3/12/20 181,325,000 181,180,4843.45%, 3/15/22 56,635,000 56,725,4463.80%, 3/15/25 204,424,000 203,398,814

AT&T, Inc.3.40%, 5/15/25 124,574,000 119,742,3978.25%, 11/15/31 190,653,000 255,137,5646.55%, 2/15/39 59,430,000 66,755,4015.35%, 9/1/40 59,744,000 59,008,5514.75%, 5/15/46 77,670,000 71,100,982

Becton, Dickinson and Co.3.734%, 12/15/24 46,675,000 47,103,383

BHP Billiton, Ltd.(c) (Australia)6.75%, 10/19/75(a)(b) 223,972,000 216,132,980

Boston Scientific Corp.6.00%, 1/15/20 15,690,000 17,421,784

Burlington Northern Santa Fe LLC(e)

4.70%, 10/1/19 75,445,000 81,617,9857.57%, 1/2/21 10,496,389 11,589,9778.251%, 1/15/21 4,300,228 4,841,2354.10%, 6/1/21 5,820,000 6,133,9543.05%, 9/1/22 39,535,000 39,501,9885.943%, 1/15/23 57,522 61,7263.85%, 9/1/23 89,340,000 92,856,7805.72%, 1/15/24 15,809,857 17,404,7873.75%, 4/1/24 29,682,000 30,415,5615.342%, 4/1/24 5,223,959 5,645,2715.629%, 4/1/24 21,148,315 23,133,6145.996%, 4/1/24 40,392,566 44,916,5343.442%, 6/16/28(b) 89,043,354 85,967,440

Cemex SAB de CV(c) (Mexico)6.50%, 12/10/19(b) 138,875,000 134,014,3757.25%, 1/15/21(b) 163,907,000 157,760,4876.00%, 4/1/24(b) 113,175,000 97,047,5625.70%, 1/11/25(b) 202,411,000 169,266,1996.125%, 5/5/25(b) 78,400,000 67,032,000

Charter Communications, Inc.4.908%, 7/23/25(b) 122,505,000 122,384,5786.484%, 10/23/45(b) 92,015,000 92,047,665

Cox Enterprises, Inc.5.875%, 12/1/16(b) 76,215,000 78,796,8599.375%, 1/15/19(b) 145,119,000 168,177,1033.25%, 12/15/22(b) 147,403,000 133,988,2952.95%, 6/30/23(b) 241,788,000 213,011,3593.85%, 2/1/25(b) 197,601,000 181,177,393

PAR VALUE VALUE

CRH PLC(c) (Ireland)3.875%, 5/18/25(b) $185,239,000 $ 184,066,252

CSX Corp.9.75%, 6/15/20 10,067,000 12,790,4766.251%, 1/15/23 15,173,398 17,315,396

Dillard’s, Inc.7.13%, 8/1/18 23,565,000 25,935,0977.875%, 1/1/23 275,000 324,0707.75%, 7/15/26 21,016,000 24,307,4637.75%, 5/15/27 12,848,000 14,951,7577.00%, 12/1/28 28,225,000 31,283,913

Dow Chemical Co.8.55%, 5/15/19 156,085,000 184,019,5324.25%, 11/15/20 7,726,000 8,090,8533.00%, 11/15/22 24,240,000 23,221,6057.375%, 11/1/29 69,100,000 85,386,3179.40%, 5/15/39 135,313,000 194,447,2175.25%, 11/15/41 12,378,000 12,064,948

Eaton Corp. PLC(c) (Ireland)2.75%, 11/2/22 61,835,000 59,840,203

FedEx Corp.8.00%, 1/15/19 18,050,000 21,014,3157.65%, 7/15/24 1,990,174 2,328,504

Ford Motor Credit Co. LLC(e)

8.125%, 1/15/20 16,910,000 19,923,8355.75%, 2/1/21 215,710,000 238,416,7135.875%, 8/2/21 153,240,000 170,889,8773.219%, 1/9/22 39,700,000 38,869,6754.25%, 9/20/22 44,075,000 45,094,0144.375%, 8/6/23 27,875,000 28,652,629

General Electric Co.4.375%, 9/16/20 14,629,000 15,887,6654.625%, 1/7/21 15,139,000 16,628,8904.65%, 10/17/21 15,937,000 17,622,402

Hewlett Packard Enterprise Co.3.60%, 10/15/20(b) 354,040,000 354,889,696

Imperial Tobacco Group PLC(c)

(United Kingdom)3.75%, 7/21/22(b) 124,595,000 125,107,9584.25%, 7/21/25(b) 385,702,000 391,458,988

Kinder Morgan, Inc.3.45%, 2/15/23 23,425,000 19,460,7643.50%, 9/1/23 43,211,000 35,847,2415.625%, 11/15/23(b) 49,500,000 45,278,7394.15%, 2/1/24 47,997,000 41,435,7624.25%, 9/1/24 22,635,000 19,268,9274.30%, 6/1/25 196,680,000 170,021,4036.50%, 2/1/37 50,861,000 43,686,2426.95%, 1/15/38 92,139,000 81,909,9136.50%, 9/1/39 72,546,000 59,824,5515.00%, 8/15/42 57,054,000 42,097,5795.00%, 3/1/43 71,101,000 52,669,0615.50%, 3/1/44 90,632,000 70,688,2475.40%, 9/1/44 64,829,000 48,991,6645.55%, 6/1/45 40,000,000 31,236,4805.05%, 2/15/46 62,325,000 46,218,475

LafargeHolcim, Ltd.(c) (Switzerland)6.50%, 7/15/16 75,696,000 77,604,977

See accompanying Notes to Financial Statements D O D G E & C O X I N C O M E F U N D ▪ P A G E 1 1



PAR VALUE VALUE

Macy’s, Inc.6.65%, 7/15/24 $ 52,526,000 $ 59,198,3787.00%, 2/15/28 27,985,000 32,478,6076.70%, 9/15/28 34,115,000 37,597,4596.90%, 4/1/29 67,888,000 76,510,5236.90%, 1/15/32 60,095,000 66,323,9076.70%, 7/15/34 130,660,000 135,751,9514.50%, 12/15/34 154,923,000 129,466,0536.375%, 3/15/37 101,593,000 102,808,154

Naspers, Ltd.(c) (South Africa)6.00%, 7/18/20(b) 220,010,000 234,075,2395.50%, 7/21/25(b) 257,875,000 248,084,002

Nordstrom, Inc.6.95%, 3/15/28 20,107,000 24,591,504

Norfolk Southern Corp.7.70%, 5/15/17 28,585,000 30,895,2409.75%, 6/15/20 13,813,000 17,630,319

RELX PLC(c) (United Kingdom)8.625%, 1/15/19 28,613,000 33,372,9733.125%, 10/15/22 144,337,000 140,262,944

Sprint Corp.6.00%, 12/1/16 303,716,000 302,197,420

Teck Resources, Ltd.(c) (Canada)4.75%, 1/15/22 13,000,000 6,305,0003.75%, 2/1/23 26,161,000 12,099,4636.00%, 8/15/40 17,000,000 7,140,0006.25%, 7/15/41 36,795,000 16,189,8005.40%, 2/1/43 51,150,000 21,099,375

Telecom Italia SPA(c) (Italy)6.999%, 6/4/18 165,232,000 178,450,5607.175%, 6/18/19 200,711,000 221,287,8925.303%, 5/30/24(b) 154,656,000 152,722,8007.20%, 7/18/36 53,458,000 53,992,5807.721%, 6/4/38 118,140,000 123,160,950

The Kraft Heinz Co.3.95%, 7/15/25(b) 36,303,000 36,654,449

Time Warner Cable, Inc.8.75%, 2/14/19 130,460,000 151,378,8708.25%, 4/1/19 237,543,000 272,993,4425.00%, 2/1/20 20,700,000 21,911,4884.125%, 2/15/21 30,545,000 31,188,7054.00%, 9/1/21 40,609,000 41,003,3136.55%, 5/1/37 46,188,000 46,716,3916.75%, 6/15/39 112,072,000 112,470,528

Time Warner, Inc.7.625%, 4/15/31 281,417,000 348,204,8527.70%, 5/1/32 231,134,000 288,546,299

TransCanada Corp.(c) (Canada)5.625%, 5/20/75(a) 237,639,000 219,717,217

Twenty-First Century Fox, Inc.6.20%, 12/15/34 14,795,000 16,790,1216.40%, 12/15/35 49,525,000 57,042,8456.15%, 3/1/37 31,905,000 35,549,4766.65%, 11/15/37 79,075,000 91,889,9746.15%, 2/15/41 40,108,000 45,090,296

PAR VALUE VALUE

Union Pacific Corp.6.70%, 2/23/19 $ 2,427,820 $ 2,587,9117.60%, 1/2/20 1,125,478 1,279,7346.061%, 1/17/23 6,682,098 7,322,3904.698%, 1/2/24 3,639,828 3,890,0663.646%, 2/15/24 35,886,000 37,476,0373.75%, 3/15/24 9,550,000 10,019,8795.082%, 1/2/29 8,187,160 8,890,2905.866%, 7/2/30 43,098,738 49,195,5416.176%, 1/2/31 31,842,455 36,207,069

Verizon Communications, Inc.4.15%, 3/15/24 66,000,000 67,867,8663.50%, 11/1/24 169,000,000 167,003,6034.272%, 1/15/36 163,817,000 147,862,2076.55%, 9/15/43 403,637,000 479,188,563

Vulcan Materials Co.7.50%, 6/15/21 143,984,000 167,741,360

Xerox Corp.6.40%, 3/15/16 72,137,000 72,802,0317.20%, 4/1/16 25,586,000 25,916,8276.75%, 2/1/17 62,799,000 65,807,6372.95%, 3/15/17 1,125,000 1,133,3976.35%, 5/15/18 106,052,000 113,391,9655.625%, 12/15/19 87,407,000 92,985,1404.50%, 5/15/21 63,744,000 64,366,014

Zoetis, Inc.3.45%, 11/13/20 39,377,000 39,424,2134.50%, 11/13/25 156,205,000 158,403,117

12,705,173,014UTILITIES: 1.3%Dominion Resources, Inc.

5.75%, 10/1/54(a) 232,036,000 227,348,872Enel SPA(c) (Italy)

6.80%, 9/15/37(b) 153,664,000 187,631,1206.00%, 10/7/39(b) 137,712,000 153,989,834

568,969,826

19,968,593,259

TOTAL DEBT SECURITIES(Cost $41,826,048,489) 41,883,192,379




PAR VALUE VALUE

COMMERCIAL PAPER: 0.7%Anthem, Inc.

1/20/16(b) $100,000,000 $ 99,959,889UnitedHealth Group, Inc.

1/7/16(b) 173,000,000 172,980,970

272,940,859MONEY MARKET FUND: 0.1%SSgA U.S. Treasury Money

Market Fund 43,184,920 43,184,920

REPURCHASE AGREEMENT: 1.3%Fixed Income Clearing Corporation(d)



TOTAL INVESTMENTS(Cost $42,716,421,268) 99.2% $ 42,773,565,158


NET ASSETS 100.0% $ 43,125,252,759

(a) Hybrid security(b) Security exempt from registration under Rule 144A of the Securities Act of

1933. The security may be resold in transactions exempt from registration,normally to qualified institutional buyers. As of December 31, 2015, allsuch securities in total represented $6,277,368,282 or 14.7% of net assets.These securities have been deemed liquid by Dodge & Cox, investmentmanager, pursuant to procedures approved by the Fund’s Board of Trustees.

(c) Security denominated in U.S. dollars(d) Repurchase agreement is collateralized by U.S. Treasury Note 1.75%,

12/31/20. Total collateral value is $585,736,913.(e) Subsidiary (see below)(f) Rounds to 0.0%

Debt securities are grouped by parent company unless otherwise noted.Actual securities may be issued by the listed parent company or one of itssubsidiaries. In determining a parent company’s country designation, theFund generally references the country of incorporation.

ARM: Adjustable Rate MortgageCMO: Collateralized Mortgage ObligationDUS: Delegated Underwriting and ServicingGO: General ObligationRB: Revenue BondREMIC: Real Estate Mortgage Investment Conduit

FUTURES CONTRACTS


ExpirationDate

NotionalAmount


(Depreciation)

10 Year U.S.Treasury Note—Short Position 18,678 Mar 2016 $(2,351,676,938) $ 8,831,538

Long-Term U.S.Treasury Bond—Short Position 11,371 Mar 2016 (1,804,435,562) (5,762,192)

$ 3,069,346

See accompanying Notes to Financial Statements D O D G E & C O X I N C O M E F U N D ▪ P A G E 1 3


December 31, 2015

ASSETS:Investments, at value (cost $42,716,421,268) $42,773,565,158Cash held at broker 74,679,210Receivable for investments sold 23,335,462Receivable for Fund shares sold 40,308,548Interest receivable 386,215,271Prepaid expenses and other assets 223,995

43,298,327,644

LIABILITIES:Payable to broker for variation margin 16,915,938Payable for Fund shares redeemed 139,049,185Management fees payable 14,800,439Accrued expenses 2,309,323

173,074,885

NET ASSETS $43,125,252,759

NET ASSETS CONSIST OF:Paid in capital $43,145,771,932Undistributed net investment income 12,530,465Undistributed net realized loss (93,262,874)Net unrealized appreciation 60,213,236

$43,125,252,759

Fund shares outstanding (par value $0.01 each,unlimited shares authorized) 3,244,929,885



December 31, 2015

INVESTMENT INCOME:Dividends $ 28,970,448Interest 1,452,159,615

1,481,130,063

EXPENSES:Management fees 174,080,596Custody and fund accounting fees 672,473Transfer agent fees 8,733,946Professional services 187,581Shareholder reports 1,513,816Registration fees 956,756Trustees’ fees 237,500Miscellaneous 548,505

186,931,173

NET INVESTMENT INCOME 1,294,198,890

REALIZED AND UNREALIZED GAIN (LOSS):Net realized loss

Investments (5,284,623)Treasury futures contracts (84,502,080)

Net change in unrealized appreciation/depreciationInvestments (1,566,447,658)Treasury futures contracts 65,259,551

Net realized and unrealized loss (1,590,974,810)

NET DECREASE IN NET ASSETSFROM OPERATIONS $ (296,775,920)


December 31, 2015Year Ended

December 31, 2014

OPERATIONS:Net investment income $ 1,294,198,890 $ 841,617,395Net realized gain (loss) (89,786,703) 184,870,735Net change in unrealized

appreciation/depreciation (1,501,188,107) 408,715,923

(296,775,920) 1,435,204,053


Net investment income (1,293,890,373) (836,624,131)Net realized gain (25,501,766) (232,101,623)

Total distributions (1,319,392,139) (1,068,725,754)


Proceeds from sale of shares 14,066,640,197 18,587,943,566Reinvestment of distributions 1,067,877,119 840,852,670Cost of shares redeemed (9,521,033,129) (5,321,422,005)

Net increase from Fundshare transactions 5,613,484,187 14,107,374,231

Total increase in net assets 3,997,316,128 14,473,852,530


End of year (including undistributed netinvestment income of $12,530,465 and$12,221,948, respectively) $43,125,252,759 $39,127,936,631

SHARE INFORMATION:Shares sold 1,023,992,169 1,341,256,318Distributions reinvested 79,082,204 61,052,395Shares redeemed (698,078,052) (384,742,642)

Net increase in shares outstanding 404,996,321 1,017,566,071




ACCOUNTING POLICIES

Dodge & Cox Income Fund (the “Fund”) is one of the seriesconstituting the Dodge & Cox Funds (the “Trust” or the “Funds”).The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. TheFund commenced operations on January 3, 1989, and seeks highand stable current income consistent with long-term preservationof capital. Risk considerations and investment strategies of theFund are discussed in the Fund’s Prospectus.



Debt securities and non-exchange traded derivatives arevalued based on prices received from independent pricing serviceswhich utilize both dealer-supplied valuations and pricing models.Pricing models may consider quoted prices for similar securities,interest rates, prepayment speeds, and credit risk. Exchange-tradedderivatives are valued at the settlement price determined by therelevant exchange. Security values are not discounted based on thesize of the Fund’s position. Short-term securities less than 60 daysto maturity may be valued at amortized cost if amortized costapproximates current value. Mutual funds are valued at theirrespective net asset values. All securities held by the Fund aredenominated in U.S. dollars.

If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees. TheBoard of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised ofrepresentatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value of securitieswhen market quotations or market-based valuations are not readily

available or are deemed unreliable. The Pricing Committeeconsiders relevant indications of value that are reasonably availableto it in determining the fair value assigned to a particular security,such as the value of similar financial instruments, trading volumes,contractual restrictions on disposition, related corporate actions,and changes in economic conditions. In doing so, the PricingCommittee employs various methods for calibrating fair valuationapproaches, including a regular review of key inputs andassumptions, back-testing, and review of any related market activity.

Valuing securities through a fair value determination involvesgreater reliance on judgment than valuation of securities based onreadily available market quotations. In some instances, lack ofinformation and uncertainty as to the significance of informationmay lead to a conclusion that a prior valuation is the best indicationof a security’s value. When fair value pricing is employed, the pricesof securities used by the Fund to calculate its NAV may differ fromquoted or published prices for the same securities.


Interest income is recorded on the accrual basis. Interestincome includes coupon interest, amortization of premium andaccretion of discount on debt securities, and gain/loss onpaydowns. The ability of the issuers of the debt securities held bythe Fund to meet their obligations may be affected by economicdevelopments in a specific industry, state, or region. Debtobligations may be placed on non-accrual status and relatedinterest income may be reduced by ceasing current accruals andwriting off interest receivables when the collection of all or aportion of interest has become doubtful. A debt obligation isremoved from non-accrual status when the issuer resumes interestpayments or when collectibility of interest is reasonably assured.Dividend income is recorded on the ex-dividend date.



Repurchase agreements The Fund enters into repurchaseagreements, secured by U.S. government or agency securities,which involve the purchase of securities from a counterparty witha simultaneous commitment to resell the securities at an agreed-upon date and price. It is the Fund’s policy that its custodian takepossession of the underlying collateral securities, the fair value ofwhich exceeds the principal amount of the repurchase transaction,including accrued interest, at all times. In the event of default bythe counterparty, the Fund has the contractual right to liquidatethe securities and to apply the proceeds in satisfaction of theobligation.

D O D G E & C O X I N C O M E F U N D ▪ P A G E 1 5




The Fund has maintained short Treasury futures contracts toassist with the management of the portfolio’s interest rateexposure. During the year ended December 31, 2015, theseTreasury futures contracts had notional values ranging from 5% to10% of net assets.





▪ Level 3: Significant unobservable inputs (including Fundmanagement’s assumptions in determining the fair valueof investments)




(Quoted Prices)


Observable Inputs)

SecuritiesDebt Securities

U.S. Treasury $ — $ 2,149,401,099Government-Related — 3,186,552,877Mortgage-Related — 14,126,545,758Asset-Backed — 2,452,099,386Corporate — 19,968,593,259

Short-term InvestmentsCommercial Paper — 272,940,859Money Market Fund 43,184,920 —Repurchase Agreement — 574,247,000

Total Securities $ 43,184,920 $ 42,730,380,238


Treasury Futures ContractsAppreciation $ 8,831,538 $ —Depreciation (5,762,192) —

(a) U.S. Treasury securities were transferred from Level 1 to Level 2 during theyear. There were no Level 3 securities at December 31, 2015 and 2014 andthere were no transfers to Level 3 during the year.



Management fees Under a written agreement approved by aunanimous vote of the Board of Trustees, the Fund pays an annualmanagement fee of 0.50% of the Fund’s average daily net assets upto $100 million and 0.40% of the Fund’s average daily net assets inexcess of $100 million to Dodge & Cox, investment manager ofthe Fund. The agreement further provides that Dodge & Cox shallwaive its fee to the extent that such fee plus all other ordinaryoperating expenses of the Fund exceed 1% of the average daily netassets for the year.


Cross trades Cross trading is the buying or selling ofportfolio securities between funds to which Dodge & Cox serves asinvestment manager. At its regularly scheduled quarterly meetings,the Board of Trustees reviews such transactions as of the mostrecent calendar quarter for compliance with the requirements andrestrictions set forth by Rule 17a-7 under the InvestmentCompany Act of 1940. During the year ending December 31,2015, the Fund executed cross trades with the Dodge & CoxBalanced Fund pursuant to Rule 17a-7 under the InvestmentCompany Act of 1940.

P A G E 1 6 ▪ D O D G E & C O X I N C O M E F U N D





Book to tax differences are primarily due to differing treatmentsof wash sales, net short-term realized gain (loss), and Treasury futurescontracts. At December 31, 2015, the cost of investments for federalincome tax purposes was $42,716,465,638.




Ordinary income $1,300,100,433 $864,273,705($0.405 per share) ($0.397 per share)



Unrealized appreciation $ 962,670,848Unrealized depreciation (905,571,328)

Net unrealized appreciation 57,099,520Undistributed ordinary income 12,919,601Undistributed long-term capital gain 59,927,325Deferred loss(a) (150,465,619)(a) Represents net short-term realized loss incurred between November 1, 2015




Pursuant to an exemptive order issued by the Securities andExchange Commission (SEC), the Fund may participate in aninterfund lending facility (Facility). The Facility allows the Fund toborrow money from or loan money to the Funds. Loans under theFacility are made for temporary or emergency purposes, such as tofund shareholder redemption requests. Interest on borrowings is theaverage of the current repurchase agreement rate and the bank loanrate. There was no activity in the Facility during the year.



For the year ended December 31, 2015, purchases and sales ofsecurities, other than short-term securities and U.S. governmentsecurities, aggregated $9,648,393,292 and $2,894,870,558,respectively. For the year ended December 31, 2015, purchases andsales of U.S. government securities aggregated $6,322,132,495 and$7,335,682,500, respectively.






2015 2014 2013 2012 2011


Net investment income 0.40 0.39 0.42 0.48 0.55Net realized and unrealized gain (loss) (0.48) 0.35 (0.33) 0.56 0.07

Total from investment operations (0.08) 0.74 0.09 1.04 0.62

Distributions to shareholders from:Net investment income (0.40) (0.39) (0.42) (0.48) (0.55)Net realized gain (0.01) (0.10) — — —



Total return (0.59)% 5.48% 0.64% 7.94% 4.76%Ratios/supplemental data:





To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox Income Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position ofDodge & Cox Income Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) at December 31, 2015, the results of itsoperations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financialhighlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the UnitedStates of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibilityof the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conductedour audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (UnitedStates). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overallfinancial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, bycorrespondence with the custodian and brokers, provide a reasonable basis for our opinion.



BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing the performance ofthe Dodge & Cox Funds’ investment manager and determiningwhether to continue the Investment Management Agreementsbetween the Funds and Dodge & Cox each year (the “Agreements”).At a meeting of the Board of Trustees of the Trust held on December16, 2015, the Trustees, by a unanimous vote (including a separatevote of those Trustees who are not “interested persons” (as defined inthe Investment Company Act of 1940) (the “IndependentTrustees”)), approved the renewal of the Agreements for anadditional one-year term through December 31, 2016 with respect toeach Fund. During the course of the year, the Board received a widevariety of materials relating to the investment management andadministrative services provided by Dodge & Cox and theperformance of each of the Funds.


In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided by Dodge &Cox. The Independent Trustees retained Morningstar® to preparean independent expense and performance summary for each Fundand comparable funds managed by other advisers identified byMorningstar. The Morningstar materials included informationregarding advisory fee rates, expense ratios, and transfer agency,custodial, and distribution expenses, as well as appropriateperformance comparisons to each Fund’s peer group and an indexor combination of indices. The Morningstar materials alsoincluded a comparison of expenses of various share classes offeredby comparable funds. The materials reviewed by the Boardcontained information concerning, among other things, Dodge &Cox’s profitability, financial results and condition, advisory feerevenue, and separate account and sub-adviser fund fee schedules.The Board additionally considered the Funds’ brokeragecommissions, turnover rates, sales and redemption data and thesignificant investment that Dodge & Cox makes in research usedin managing the Funds. The Board received and reviewedmemoranda and related materials addressing, among other things,Dodge & Cox’s services to the Funds; how Dodge & Cox Funds’fees compare to fees of peer group funds; the different fees, services,costs, and risks associated with other accounts managed by Dodge& Cox as compared to the Dodge & Cox Funds; and the ways inwhich the Funds realize economies of scale. Throughout theprocess of reviewing the services provided by Dodge & Cox andpreparing for the meeting, the Independent Trustees found Dodge& Cox to be open, forthright, detailed, and very helpful inanswering questions about all issues. The Board received copies ofthe Agreements and a memorandum from the independent legalcounsel to the Independent Trustees discussing the factorsgenerally regarded as appropriate to consider in evaluating advisoryarrangements. The Trust’s Contract Review Committee, consistingsolely of Independent Trustees, met with the independent legal

counsel on November 11, 2015, and again on December 16, 2015,to discuss whether to renew the Agreements. The Board, includingthe Independent Trustees, subsequently concluded that theexisting Agreements are fair and reasonable and voted to approvethe Agreements. In considering the Agreements, the Board,including the Independent Trustees, did not identify any singlefactor or particular information as all-important or controlling. Inreaching the decision to approve the Agreements, the Boardconsidered several factors, discussed below, to be key factors andreached the conclusions described below.


The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through itswebsite and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and itsreputation as a trusted, shareholder-friendly mutual fund family. Inaddition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionalsthan most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.





Costs of Services to Funds: Fees and Expenses. The Boardconsidered each Fund’s management fee rate and expense ratiorelative to each Fund’s peer group and relative to management feescharged by Dodge & Cox to other clients. In particular, the Boardconsidered that the Funds continue to be substantially below theirpeer group median in expense ratios and that many media andindustry reports specifically comment on the low expense ratios ofthe Funds, which have been a defining characteristic of the Fundsfor many years. The Board also evaluated the operating structuresof the Funds and Dodge & Cox, noting that the Funds do notcharge front-end sales commissions or distribution fees, and Dodge& Cox bears, among other things, the significant cost of thirdparty research, reimbursement for recordkeeping andadministrative costs to third-party retirement plan administrators,and administrative and office overhead.


The Board reviewed information regarding the fee rates Dodge& Cox charges to separate accounts and subadvised funds thathave investment programs similar to those of the Funds, includinginstances where separate account and sub-advised fund fees arelower than Fund fees. The Board considered differences in thenature and scope of services Dodge & Cox provides to the Funds ascompared to other client accounts, differences in regulatory,litigation, and other risks as between Dodge & Cox Funds andother types of clients. The Board also noted that different marketsexist for mutual fund and institutional separate accountmanagement services. With respect to non-U.S. funds sponsoredand managed by Dodge & Cox that are comparable to the Fundsin many respects, the Board noted that the fee rates charged byDodge & Cox are the same as or higher than the fee rates chargedto the Funds. After consideration of these matters, the Boardconcluded that the overall costs incurred by the Funds for theservices they receive (including the management fee paid to Dodge& Cox) are reasonable and that the fees are acceptable based uponthe qualifications, experience, reputation, and performance ofDodge & Cox and the low overall expense ratios of the Funds.

Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports of Dodge &Cox’s financial position, profitability, and estimated overall value,and considered Dodge & Cox’s overall profitability within itscontext as a private, employee-owned S-Corporation and relativeto the favorable services provided. The Board noted in particularthat Dodge & Cox’s profits are not generated by high fee rates, butreflect an extraordinarily streamlined, efficient, and focusedbusiness approach toward investment management. The Boardrecognized the importance of Dodge & Cox’s profitability—whichis derived solely from management fees and does not include otherbusiness ventures—to maintain its independence, stability,company culture and ethics, and management continuity. TheBoard also considered that the compensation/profit structure atDodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independentand facilitating retention of management and investmentprofessionals. The Board considered independent researchindicating that firms that grow organically, rather than throughacquisition, tend to have better performance. Key to organicgrowth is the ability to retain talented and experienced analysts,portfolio managers and other professionals.

The Board also considered that in January 2015, Dodge &Cox closed the International Stock Fund to new investors to pro-actively manage the growth of the Fund. The Stock Fund andBalanced Fund were similarly closed to new investors duringperiods of significant growth in the past. While these actions areintended to benefit existing shareholders, the effect is to reducepotential revenues to Dodge & Cox from new shareholders. TheBoard also considered potential “fall-out” benefits (including thereceipt of research from unaffiliated brokers and reputationalbenefits to non-U.S. funds sponsored and managed by Dodge &Cox) that Dodge & Cox might receive as a result of its associationwith the Funds and determined that they are acceptable. TheBoard also noted that Dodge & Cox continues to invest substantial


sums in its business in order to provide enhanced services, systemsand research capabilities, all of which benefit the Funds. TheBoard concluded that Dodge & Cox’s profitability is the keystoneof its independence, stability and long-term investmentperformance and that the profitability of Dodge & Cox’srelationship with the Funds (including fall-out benefits) is fair andreasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In theBoard’s view, any consideration of economies of scale must takeaccount of the Funds’ low fee structure and the considerableefficiencies of the Funds’ organization and fee structure that hasbeen realized by shareholders from the time of each Fund’s inception(i.e., from the first dollar). An assessment of economies of scale mustalso take into account that Dodge & Cox invests significant timeand resources in each new Fund for months (and sometimes years)prior to launch; in addition, expenses are capped, which means thatDodge & Cox earns no revenue and subsidizes the operations of anew Fund for a period of time until it reaches scale.



CONCLUSION


FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the listswith the Securities and Exchange Commission (SEC) on Form N-CSR (second and fourth quarters) and Form N-Q (first and thirdquarters). Shareholders may view the Fund’s Forms N-CSR and N-Q on the SEC’s website at sec.gov. Forms N-CSR and N-Q mayalso be reviewed and copied at the SEC’s Public Reference Roomin Washington, DC. Information regarding the operations of thePublic Reference Room may be obtained by calling 202-551-8090(direct) or 800-732-0330 (general SEC number). A list of theFund’s quarter-end holdings is also available at dodgeandcox.comon or about 15 days following each quarter end and remainsavailable on the web site until the list is updated in the subsequentquarter.











—

Dana M. Emery(54)



—



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Trustee(Since 2002)


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Trustee(Since 2011)







—



—




Income Fund

dodgeandcox.com


or write or call:

DODGE & COX FUNDS


INVESTMENT MANAGER





2015


International Stock FundE S T A B L I S H E D 2 0 0 1

T I C K E R : D O D F X

(Closed to New Investors)

12/15 ISF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox International Stock Fund had a total return of–11.4% for the year ending December 31, 2015, compared to areturn of –0.8% for the MSCI EAFE (Europe, Australasia, FarEast) Index.

MARKET COMMENTARY

In 2015, the U.S. dollar’s sharp appreciation against bothdeveloped and emerging market currencies was a meaningfulheadwind: the MSCI EAFE was up 5% in local currency and down1% in U.S. dollars, while the MSCI Emerging Markets Index wasdown 6% in local currency and down 15% in U.S. dollars.

Global growth expectations declined and emerging marketsfaced significant macroeconomic challenges during the year. Fearsof slowing growth in China were amplified by the government’sdecision to devalue the renminbi. Since China is the world’slargest consumer of most raw materials, its weaker outlooknegatively impacted commodity prices (e.g., global copper pricesplummeted 24% and oil prices plunged 35%) and commodity-driven economies around the globe. For example, in South Africa,where mining accounts for approximately 50% of its foreignexchange earnings,(a) the rand depreciated 25% against the U.S.dollar. In addition, prospects for higher U.S. interest ratesnegatively affected those economies in need of external financing.Facing both fiscal and current account deficits, Brazil’s fiscal andpolitical struggles intensified, and the Brazilian real depreciated33% against the U.S. dollar during 2015.

In developed markets, a dampened economic recovery and aweaker inflation outlook in the Eurozone led the European CentralBank to extend its asset purchase program aimed at reviving theeconomy. The Bank of Japan, in turn, introduced measures tosupplement its already large Quantitative and Qualitative EasingProgram, as economic activity softened and inflation hoveredaround zero. In contrast, economic activity in the United Statesexpanded at a moderate pace: household spending and businessinvestment increased, the housing market strengthened, and labormarket conditions continued to improve, with solid job gains andreduced unemployment.

INVESTMENT STRATEGY

The Fund’s results in 2015 were disappointing and stemmed fromthree main factors. First, value stocks (the lower valuation portionof the market) underperformed growth stocks (the highervaluation portion of the market) by one of the widest spreads sincethe global financial crisis. The Fund, which is value-oriented, wassignificantly affected by this performance divergence. Second,emerging markets collectively underperformed developed markets.The Fund’s investments in individual companies domiciled in anumber of especially weak emerging market countries (includingBrazil, South Africa, and Turkey) negatively impacted results.Third, some individual holdings—HP Inc.(b), MTN Group,Petrobras, and Standard Chartered—meaningfully detracted fromresults for the year.

During 2015, we extensively revisited and retested ourthinking on many of the Fund’s holdings in the context of

changing macroeconomic conditions and valuations. Our equityand fixed income teams regularly work together to evaluate riskand reward as we look at investment opportunities around theworld and across the capital structure; this collaborationintensified during 2015. As part of our bottom-up research process,a broad cross section of our team thoroughly investigatedindividual company concerns, vetted investment assumptions, andconducted further due diligence. For example, groups of portfoliomanagers and analysts travelled together across the globe to meetwith company managements, government officials, suppliers,competitors, and consultants. In addition, we conductedmacroeconomic reviews to evaluate the key factors affecting acompany’s access to and cost of capital, end-market demand, andrelative competitiveness. Through this comprehensive process, wereaffirmed our view that the Fund’s holdings have attractivevaluations, strong competitive positions, and favorable growthprospects over our three- to five-year investment horizon.

In 2015, companies with higher valuations became moreexpensive relative to companies with lower valuations. As a resultof changing valuations, we initiated 8 new holdings (includingAstraZeneca, Cemex, Hyundai Motor, and JD.com(c)) and sold 11holdings (including Imperial Tobacco Group and Standard Bankof South Africa) during the year. We also added to a number ofour existing holdings domiciled in and exposed to the developingworld as their valuations became increasingly attractive. At yearend, 24.0% of the Fund was invested in companies domiciled inemerging markets, while 42.6% of the Fund was invested incompanies that derive more than 40% of their revenues from thedeveloping world, regardless of domicile.(d) Itau Unibanco (inBrazil), Schneider Electric (in France), and Standard Chartered(in the United Kingdom)—examples of such adds in the Fund—are discussed below.

Itau UnibancoItau Unibanco, Brazil’s leading bank, has strong market positionsin consumer credit and payments and is exposed to under-penetrated areas of the financial market that are poised to growover the next three to five years. Brazil’s struggling economy andsharp currency depreciation weighed substantially on ItauUnibanco’s stock during 2015 (down 41%(e) in U.S. dollars). Weconducted both on-the-ground and other due diligence withcompany management and government officials to evaluateeconomic and company-specific concerns. What we foundreaffirmed our view that Itau’s management has proactivelymanaged credit risk by reducing exposures and raising provisions.Management is focused on enhancing shareholder value and has asolid track record of capital allocation. Beyond this cycle,management is investing for the future and strengthening Itau’scompetitive advantage. For example, Itau continues to invest inonline access to better serve the needs of affluent customers andmore efficiently handle payments and transactions for its retailcustomer base. At 1.6 times tangible book value, Itau trades at a10-year low valuation. While political and macroeconomicinstability has plagued Brazil, we believe Itau is an attractive long-

P A G E 2 ▪ D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D

term investment opportunity and added to the holding. OnDecember 31, Itau was a 1.7% position in the Fund.

Schneider Electr icSchneider Electric, a 2.2% position in the Fund, is a global leaderin electrical products, systems, and services such as low- andmedium-voltage gear, factory automation equipment and systems,and uninterruptible power supply solutions for data centers. Whileincorporated in France, Schneider derives only 27% of its revenuesfrom Western Europe and more than 40% of its sales come fromemerging markets. Thus, Schneider is a prime example that acompany’s domicile does not always reflect its true revenueexposure. Schneider’s stock performed poorly in 2015 (down 21%in U.S. dollars) due to lower than expected construction andindustrial activity, driven in large part by a slowdown in China,Russia, and Brazil.

Despite these end-market headwinds, Schneider has high-quality business franchises with number one or two marketpositions in over 75% of its revenues and attractive returns ontangible capital. We believe the company can grow given itsexposure to megatrends such as global electrification, energyefficiency, and factory automation. We have had numerousconversations with management and confirmed they areproactively managing the company’s cost structure, portfolio ofbusinesses, and capital. Management recently initiated a EUR 1.0-1.5 billion share buyback program. Schneider has a strong balancesheet and trades at 13 times estimated forward earnings, a discountto its peers and the market.

Standard CharteredStandard Chartered, domiciled in the United Kingdom, providesconsumer and wholesale banking services to customers in Asia,Africa, and the Middle East. The company has a strong globalfranchise with a broad network across the developing world thatwould be very difficult to replicate. Standard Chartered’s globalpayments and trade business is a particular strength: local rootsfrom its longstanding presence allow for local currency funding,and cooperation across the network provides integrated wholesalebanking services to clients. During 2015, Standard Chartered’sperformance suffered from the slowdown in emerging markets,large fines from legacy issues, rising restructuring costs, anddeteriorating asset quality. As a result, Standard Chartered’s stockwas down 39% in U.S. dollars and its valuation fell to 0.6 timestangible book value, a historically low level.

In 2015, we met with Standard Chartered’s new executiveteam on multiple occasions to better understand its strategy andpriorities. This management team is focused on streamlining theorganization and prioritizing profitability over growth. They have arealistic assessment of current balance sheet issues, as evidenced bythe recent $5.1 billion capital raise that provides ample newcapital to fortify the balance sheet, resolve legacy issues, andaccelerate their restructuring plans. The company seeks to cutcosts, exit peripheral businesses, and increase investments toimprove systems and further diversify its geographic footprint. Inaddition, Standard Chartered has been able to attract high-calibertalent with some key new hires. Based on the bank’s leading

franchise, strong balance sheet, management’s initiatives, and lowvaluation, we recently added to the holding. On December 31,Standard Chartered was a 2.4% position in the Fund.

IN CLOSING

International equity valuations are attractive: the MSCI EAFEtraded at 14.7 times forward estimated earnings (compared to a 20-year average of 15.9 times) with a 3.2% dividend yield at year end.Valuation disparities have widened significantly, creating moreopportunities for value-oriented investors. We are identifyingattractively valued investments in both developed and emergingmarkets and continue to be optimistic about the long-term outlookfor the portfolio.

Our experienced and stable team has weathered past periodsof market turbulence by remaining steadfast in our investmentprocess and philosophy. Our approach—constructing a diversifiedportfolio through in-depth, independent research, a three- to five-year investment horizon, and a focus on valuation relative tounderlying fundamentals—continues to guide us through thisperiod. We remain confident that our enduring value-orientedapproach will benefit the Fund in the years ahead.





January 29, 2016

(a) Foreign exchange earnings are the proceeds from exporting goods andservices and exchanging currencies in global markets.

(b) After Hewlett-Packard Co. split into two companies, HP Inc. retained theHPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett-Packard Co.’s performance through October 2015.

(c) The use of specific examples does not imply that they are more attractiveinvestments than the Fund’s other holdings.

(d) Unless otherwise specified, all weightings and characteristics are as ofDecember 31, 2015.

(e) All returns are total returns unless otherwise noted.

D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ▪ P A G E 3

ANNUAL PERFORMANCE REVIEWThe Fund underperformed the MSCI EAFE by 10.5 percentagepoints in 2015.

Key Detractors from Relat ive Results▪ Weak returns from the Fund’s holdings in the Financials

sector (down 19% compared to down 3% for the MSCIEAFE sector), especially in the developing world, hurtresults. Itau Unibanco (down 41%), Kasikornbank (down39%), Standard Chartered (down 39%), and ICICI Bank(down 28%) performed poorly.

▪ The Fund’s holdings in the Telecommunication Servicessector (down 24% compared to up 3% for the MSCI EAFEsector) were notable detractors. MTN Group (down 53%)and America Movil (down 31%), both emerging marketcompanies, were particularly weak.

▪ The Fund’s holdings in the Industrials sector (down 13%compared to flat for the MSCI EAFE sector) negativelyimpacted performance. Tyco International (down 26%) andSchneider Electric (down 21%) lagged.

▪ Additional detractors included Teck Resources (down 71%since date of purchase), Petrobras (down 55%), HP Inc.(down 37%), and Schlumberger (down 16%).

Key Contributors to Relat ive Results▪ The Fund’s average underweight position in the Metals &

Mining industry (0.4% versus 3% for the MSCI EAFEindustry), a weaker area of the market (down 40%), helpedperformance.

▪ Strong returns from the Fund’s holdings in the Automobilesindustry (up 12% compared to up 2% for the MSCI EAFEindustry) aided results. Nissan Motor (up 24%), YamahaMotor (up 14%), and Honda Motor (up 13%) performedwell.

▪ Additional contributors included Infineon Technologies (up40%), Nintendo (up 34%), Imperial Tobacco Group (up24% to date of sale), and Naspers (up 5%).



Experienced Investment TeamThe International Investment Policy Committee, which is thedecision-making body for the International Stock Fund, is a nine-member committee with an average tenure at Dodge & Cox of22 years.




Risks: The Fund is subject to market risk, meaning holdings inthe Fund may decline in value for extended periods due to thefinancial prospects of individual companies, or due to generalmarket and economic conditions. Investing in non-U.S.securities may entail risk due to foreign economic and politicaldevelopments; this risk may be increased when investing inemerging markets. The Fund is also subject to currency risk.Please read the prospectus and summary prospectus for specificdetails regarding the Fund’s risk profile.



Dodge & Cox International Stock Fund $14,553

MSCI EAFE Index $13,484

5,000

10,000

20,000

$30,000

12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/15



Dodge & Cox InternationalStock Fund –11.35% 3.87% 2.65% 3.83%

MSCI EAFE Index –0.82 5.02 3.61 3.03

Returns represent past performance and do not guarantee futureresults. Investment return and share price will fluctuate withmarket conditions, and investors may have a gain or loss whenshares are sold. Fund performance changes over time and currentlymay be significantly lower than stated. Performance is updated andpublished monthly. Visit the Fund’s website at dodgeandcox.comor call 800-621-3979 for current performance figures.

The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for any incometaxes payable by shareholders on these distributions or on Fund shareredemptions. Index returns include dividends but, unlike Fundreturns, do not reflect fees or expenses. The MSCI EAFE (Europe,Australasia, Far East) Index is a broad-based, unmanaged equitymarket index aggregated from 21 developed market country indices,excluding the United States and Canada. MSCI makes no express orimplied warranties or representations and shall have no liabilitywhatsoever with respect to any MSCI data contained herein. TheMSCI data may not be further redistributed or used as a basis forother indices or any securities or financial products. This report is notapproved, reviewed, or produced by MSCI.

MSCI EAFE is a service mark of MSCI Barra.


ACTUAL EXPENSES











D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ▪ P A G E 5


GENERAL INFORMATION

Net Asset Value Per Share $36.48Total Net Assets (billions) $57.0Expense Ratio 0.64%Portfolio Turnover Rate 18%30-Day SEC Yield(a) 1.80%Number of Companies 79Fund Inception 2001No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed bythe International Investment Policy Committee, whose ninemembers’ average tenure at Dodge & Cox is 22 years.

PORTFOLIO CHARACTERISTICS FundMSCIEAFE


(billions) $61 $54Price-to-Earnings Ratio(b) 12.5x 14.7xCountries Represented 23 21Emerging Markets (Brazil, China, India,

Mexico, South Africa, South Korea,Thailand, Turkey, United Arab Emirates) 24.0% 0.0%

TEN LARGEST HOLDINGS (%)( c ) Fund

Naspers, Ltd. (South Africa) 4.2Samsung Electronics Co., Ltd. (South Korea) 3.8Sanofi (France) 3.7Schlumberger, Ltd. (United States) 3.4Novartis AG (Switzerland) 3.4Roche Holding AG (Switzerland) 3.3Credit Suisse Group AG (Switzerland) 2.7Barclays PLC (United Kingdom) 2.5Standard Chartered PLC (United Kingdom) 2.3Liberty Global PLC (United Kingdom) 2.3

ASSET ALLOCATION

Net Cash& Other:(d) 0.7%


REGION DIVERSIFICATION (%)( e ) FundMSCIEAFE

Europe (excluding United Kingdom) 42.3 45.1Japan 13.4 23.4Pacific (excluding Japan) 13.0 11.3United Kingdom 12.1 19.4United States 6.7 0.0Africa/Middle East 5.7 0.8Latin America 5.5 0.0Canada 0.6 0.0

SECTOR DIVERSIFICATION (%) FundMSCIEAFE

Financials 26.1 25.6Consumer Discretionary 18.8 13.2Information Technology 16.1 5.2Health Care 12.8 11.9Industrials 8.6 12.6Energy 7.3 4.5Materials 5.2 6.4Telecommunication Services 4.0 4.9Consumer Staples 0.4 11.9Utilities 0.0 3.8

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) Price-to-earnings (P/E) ratios are calculated using 12-month forward earnings estimates from third-party sources.(c) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular

security and is not indicative of Dodge & Cox’s current or future trading activity.(d) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,

payables, and unrealized appreciation/depreciation on certain derivatives).(e) The Fund may classify a company in a different category than the MSCI EAFE. The Fund generally classifies a company based on its country of incorporation, but

may designate a different country in certain circumstances.




SHARES VALUE

CONSUMER DISCRETIONARY: 18.8%AUTOMOBILES & COMPONENTS: 8.7%Bayerische Motoren Werke AG (Germany) 10,189,100 $ 1,073,100,643Honda Motor Co., Ltd. (Japan) 33,966,400 1,088,335,707Honda Motor Co., Ltd. ADR (Japan) 5,749,300 183,575,149Hyundai Motor Co. (South Korea) 2,856,012 359,872,991Mahindra & Mahindra, Ltd. (India) 16,522,808 315,939,191NGK Spark Plug Co., Ltd.(b) (Japan) 10,341,300 272,417,191Nissan Motor Co., Ltd. (Japan) 93,132,200 975,360,095Yamaha Motor Co., Ltd.(b) (Japan) 31,550,100 706,999,061

4,975,600,028CONSUMER DURABLES & APPAREL: 1.4%Panasonic Corp. (Japan) 76,711,434 778,536,596

CONSUMER SERVICES: 0.3%New Oriental Education & Technology

Group, Inc. ADR(b) (Cayman Islands/China) 6,369,328 199,805,819

MEDIA: 8.1%Grupo Televisa SAB ADR (Mexico) 25,685,392 698,899,516Liberty Global PLC LiLAC, Series A(a)

(United Kingdom) 580,950 24,033,902Liberty Global PLC LiLAC, Series C(a)

(United Kingdom) 874,412 37,599,716Liberty Global PLC, Series A(a)

(United Kingdom) 11,619,005 492,181,052Liberty Global PLC, Series C(a)

(United Kingdom) 19,696,847 803,040,452Naspers, Ltd. (South Africa) 17,493,100 2,398,019,528Television Broadcasts, Ltd.(b) (Hong Kong) 40,022,900 164,996,568

4,618,770,734RETAILING: 0.3%JD.com, Inc. ADR(a) (Cayman Islands/China) 5,083,036 164,004,157

10,736,717,334CONSUMER STAPLES: 0.4%FOOD, BEVERAGE & TOBACCO: 0.4%Anadolu Efes Biracilik ve Malt Sanayii AS(b)

(Turkey) 32,425,176 210,023,170

ENERGY: 6.2%Royal Dutch Shell PLC ADR

(United Kingdom) 10,005,355 458,145,205Saipem SPA(a)(b) (Italy) 46,865,200 376,728,063Schlumberger, Ltd. (Curacao/United States) 27,754,124 1,935,850,149Total SA (France) 10,745,842 481,894,390Weatherford International PLC(a) (Ireland) 31,817,592 266,949,597

3,519,567,404FINANCIALS: 24.4%BANKS: 15.4%Banco Santander SA (Spain) 68,776,836 340,679,565Barclays PLC (United Kingdom) 446,247,998 1,440,052,935BNP Paribas SA (France) 17,886,158 1,015,235,180ICICI Bank, Ltd. (India) 260,427,185 1,027,438,757Kasikornbank PCL- Foreign(b) (Thailand) 139,883,027 578,306,373Lloyds Banking Group PLC

(United Kingdom) 834,782,400 899,225,897Mitsubishi UFJ Financial Group, Inc. (Japan) 91,382,100 565,554,211Siam Commercial Bank PCL- Foreign

(Thailand) 78,078,500 257,666,820Societe Generale SA (France) 9,252,542 428,049,787Standard Chartered PLC (United Kingdom) 161,949,813 1,345,813,561UniCredit SPA (Italy) 118,398,593 652,135,217Yapi ve Kredi Bankasi AS(b) (Turkey) 204,376,868 230,558,187

8,780,716,490

SHARES VALUE

DIVERSIFIED FINANCIALS: 4.2%Credit Suisse Group AG (Switzerland) 70,622,958 $ 1,526,397,979Haci Omer Sabanci Holding AS (Turkey) 82,095,354 233,078,292UBS Group AG (Switzerland) 31,278,800 601,926,154

2,361,402,425INSURANCE: 3.4%AEGON NV(b) (Netherlands) 130,337,763 740,800,935Aviva PLC (United Kingdom) 80,919,501 615,544,297Swiss Re AG (Switzerland) 6,028,968 586,486,877

1,942,832,109REAL ESTATE: 1.4%BR Malls Participacoes SA(b) (Brazil) 54,870,300 153,032,279Hang Lung Group, Ltd.(b) (Hong Kong) 110,524,300 358,666,866Hang Lung Properties, Ltd. (Hong Kong) 126,187,300 287,216,724

798,915,869

13,883,866,893HEALTH CARE: 12.8%PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 12.8%AstraZeneca PLC (United Kingdom) 4,793,300 326,214,954Bayer AG (Germany) 8,199,050 1,028,663,421Novartis AG (Switzerland) 8,095,570 691,981,754Novartis AG ADR (Switzerland) 14,346,800 1,234,398,672Roche Holding AG (Switzerland) 6,942,700 1,913,325,710Sanofi (France) 24,946,522 2,130,895,350

7,325,479,861INDUSTRIALS: 8.6%CAPITAL GOODS: 6.9%Koninklijke Philips NV (Netherlands) 31,282,995 800,964,341Mitsubishi Electric Corp. (Japan) 100,043,000 1,048,902,987Nidec Corp. (Japan) 5,430,700 393,086,983Schneider Electric SA (France) 21,750,646 1,242,387,539Smiths Group PLC(b) (United Kingdom) 33,926,200 469,881,576

3,955,223,426COMMERCIAL & PROFESSIONAL SERVICES: 1.4%ADT Corp. (United States) 6,296,960 207,673,741Tyco International PLC (Ireland) 18,390,420 586,470,494

794,144,235TRANSPORTATION: 0.3%DP World, Ltd. (United Arab Emirates) 8,256,304 167,602,971

4,916,970,632INFORMATION TECHNOLOGY: 15.1%SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 1.4%Infineon Technologies AG(b) (Germany) 55,762,370 816,016,345

SOFTWARE & SERVICES: 2.7%Baidu, Inc. ADR(a) (Cayman Islands/China) 4,903,965 927,045,544Nintendo Co., Ltd. (Japan) 4,287,100 590,170,122

1,517,215,666TECHNOLOGY, HARDWARE & EQUIPMENT: 11.0%Brother Industries, Ltd.(b) (Japan) 12,212,000 140,035,217Hewlett Packard Enterprise Co.

(United States) 65,989,204 1,003,035,901HP, Inc. (United States) 57,407,104 679,700,111Kyocera Corp.(b) (Japan) 19,122,400 886,308,045Samsung Electronics Co., Ltd.

(South Korea) 1,521,592 1,624,804,017TE Connectivity, Ltd. (Switzerland) 13,646,362 881,691,449Telefonaktiebolaget LM Ericsson (Sweden) 110,232,700 1,067,791,477

6,283,366,217

8,616,598,228

See accompanying Notes to Consolidated Financial Statements D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ▪ P A G E 7


COMMON STOCKS (continued)

SHARES VALUE

MATERIALS: 5.2%Agrium, Inc. (Canada) 2,079,983 $ 185,825,681Akzo Nobel NV (Netherlands) 7,688,944 515,395,513Cemex SAB de CV ADR (Mexico) 43,079,635 239,953,567LafargeHolcim, Ltd. (Switzerland) 18,933,349 948,705,791Lanxess AG(b) (Germany) 4,228,334 194,678,351Linde AG (Germany) 4,987,605 723,967,418Teck Resources, Ltd., Class B (Canada) 46,287,792 178,670,877

2,987,197,198TELECOMMUNICATION SERVICES: 4.0%America Movil SAB de CV, Series L

(Mexico) 618,430,000 434,187,415Bharti Airtel, Ltd. (India) 57,768,204 295,144,494China Mobile, Ltd. (Hong Kong/China) 27,348,200 308,768,008Millicom International Cellular SA SDR(b)

(Luxembourg) 10,088,392 574,611,534MTN Group, Ltd. (South Africa) 77,635,000 667,113,815

2,279,825,266



ENERGY: 1.1%Petroleo Brasileiro SA ADR(a) (Brazil) 178,018,900 605,264,260

FINANCIALS: 1.7%BANKS: 1.7%Itau Unibanco Holding SA (Brazil) 150,343,065 982,425,551

INFORMATION TECHNOLOGY: 1.0%TECHNOLOGY, HARDWARE & EQUIPMENT: 1.0%Samsung Electronics Co., Ltd.

(South Korea) 586,116 542,444,786

TOTAL PREFERRED STOCKS(Cost $3,828,007,464) $ 2,130,134,597


PAR VALUE VALUE


REPURCHASE AGREEMENT: 0.1%Fixed Income Clearing Corporation(c)





NET ASSETS 100.0% $57,028,603,863

(a) Non-income producing(b) See Note 9 regarding holdings of 5% voting securities(c) Repurchase agreement is collateralized by U.S. Treasury Note 1.75%,

12/31/20. Total collateral value is $73,762,681.

In determining a company’s country designation, the Fund generallyreferences the country of incorporation. In cases where the Fund considersthe country of incorporation to be a “jurisdiction of convenience” chosenprimarily for tax purposes or in other limited circumstances, the Fund usesthe country designation of an appropriate broad-based market index. Inthose cases, two countries are listed—the country of incorporation and thecountry designated by an appropriate index, respectively.

ADR: American Depositary ReceiptSDR: Swedish Depository Receipt


Contract Amount


DateReceive

U.S. Dollar

DeliverForeign

Currency

UnrealizedAppreciation /(Depreciation)

Contracts to sell CHF:Goldman Sachs 1/27/16 413,060,988 400,000,000 $ 13,327,311Goldman Sachs 2/3/16 528,955,212 520,000,000 9,145,375UBS 2/3/16 471,272,639 465,000,000 6,442,689Citibank 3/2/16 173,604,222 175,000,000 (1,537,699)Contracts to sell EUR:Barclays 2/24/16 278,608,200 260,000,000 (4,296,367)Credit Suisse 2/24/16 536,530,000 500,000,000 (7,517,244)JPMorgan 2/24/16 536,220,000 500,000,000 (7,827,244)Deutsche Bank 3/2/16 531,558,500 500,000,000 (12,583,615)Barclays 3/9/16 653,646,000 600,000,000 556,905HSBC 3/9/16 326,307,000 300,000,000 (237,547)

$ (4,527,436)

P A G E 8 ▪ D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D See accompanying Notes to Consolidated Financial Statements

CONSOLIDATEDSTATEMENT OF ASSETS AND LIABILITIES

December 31, 2015ASSETS:Investments, at value

Unaffiliated issuers (cost $56,299,697,750) $ 52,256,872,593Affiliated issuers (cost $6,004,840,399) 4,479,553,535

56,736,426,128Unrealized appreciation on forward currency contracts 29,472,280Cash denominated in foreign currency (cost $6,826,649) 6,790,936Cash 100Receivable for investments sold 218,815,943Receivable for Fund shares sold 94,685,572Dividends and interest receivable 148,753,606Prepaid expenses and other assets 352,521

57,235,297,086LIABILITIES:Unrealized depreciation on forward currency contracts 33,999,716Payable for Fund shares redeemed 140,460,556Management fees payable 29,782,461Accrued expenses 2,450,490

206,693,223

NET ASSETS $ 57,028,603,863NET ASSETS CONSIST OF:Paid in capital $ 64,423,134,152Distributions in excess of net investment income (5,017,088)Accumulated net realized loss (1,813,517,131)Net unrealized depreciation (5,575,996,070)

$ 57,028,603,863

Fund shares outstanding (par value $0.01 each,unlimited shares authorized) 1,563,237,054


CONSOLIDATEDSTATEMENT OF OPERATIONS


INVESTMENT INCOME:Dividends (net of foreign taxes of $94,101,785)

Unaffiliated issuers $ 1,426,934,440Affiliated issuers 226,416,324

Interest 268,570

1,653,619,334EXPENSES:Management fees 397,371,361Custody and fund accounting fees 9,026,504Transfer agent fees 9,712,021Professional services 353,288Shareholder reports 1,892,718Registration fees 473,472Trustees’ fees 237,500Miscellaneous 4,262,360

423,329,224

NET INVESTMENT INCOME 1,230,290,110


Investments in unaffiliated issuers 765,542,221Investments in affiliated issuers 339,270,796Forward currency contracts 478,324,730Foreign currency transactions (14,077,329)

Net change in unrealized appreciation/depreciationInvestments (10,361,707,776)Forward currency contracts (87,123,422)Foreign currency translation (3,112,679)


NET DECREASE IN NET ASSETSFROM OPERATIONS $ (7,652,593,349)

CONSOLIDATEDSTATEMENT OF CHANGES IN NET ASSETS



OPERATIONS:Net investment income $ 1,230,290,110 $ 1,451,548,384Net realized gain 1,569,060,418 2,019,551,822Net change in unrealized

appreciation/depreciation (10,451,943,877) (3,874,051,496)

(7,652,593,349) (402,951,290)


Net investment income (1,304,169,120) (1,440,251,048)Net realized gain — —



Proceeds from sale of shares 12,406,796,087 19,083,592,819Reinvestment of distributions 1,091,460,147 1,176,502,813Cost of shares redeemed (11,552,646,146) (7,993,354,008)

Net increase fromFund share transactions 1,945,610,088 12,266,741,624

Total increase/(decrease) in net assets (7,011,152,381) 10,423,539,286


End of year (including distributions inexcess of net investment income of$(5,017,088) and undistributed netinvestment income of $9,485,734,respectively) $ 57,028,603,863 $64,039,756,244



See accompanying Notes to Consolidated Financial Statements D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ▪ P A G E 9



ACCOUNTING POLICIES

Dodge & Cox International Stock Fund (the “Fund”) is one of theseries constituting the Dodge & Cox Funds (the “Trust” or the“Funds”). The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. OnJanuary 16th, 2015, the Fund closed to new investors. The Fundcommenced operations on May 1, 2001, and seeks long-termgrowth of principal and income. The Fund invests primarily in adiversified portfolio of foreign equity securities. Foreign investing,especially in developing countries, has special risks such as currencyand market volatility and political and social instability. These andother risk considerations are discussed in the Fund’s Prospectus.



Portfolio securities and other financial instruments for whichmarket quotes are readily available are valued at market value.Listed securities are generally valued using the official quoted closeprice or the last sale on the exchange that is determined to be theprimary market for the security. Security values are not discountedbased on the size of the Fund’s position. Short-term securities lessthan 60 days to maturity may be valued at amortized cost ifamortized cost approximates current value. Mutual funds arevalued at their respective net asset values.


If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees.The Board of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised of

representatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations arenot readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned toa particular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.

As trading in securities on most foreign exchanges is normallycompleted before the close of the NYSE, the value of non-U.S.securities can change by the time the Fund calculates its NAV. Toaddress these changes, the Fund may utilize adjustment factorsprovided by an independent pricing service to systematically valuenon-U.S. securities at fair value. These adjustment factors arebased on statistical analyses of subsequent movements and changesin U.S. markets and financial instruments trading in U.S. marketsthat represent foreign securities or baskets of securities.



Dividend income and corporate action transactions arerecorded on the ex-dividend date, or when the Fund first learns ofthe dividend/corporate action if the ex-dividend date has passed.Non-cash dividends included in dividend income, if any, arerecorded at the fair market value of the securities received.Dividends characterized as return of capital for U.S. tax purposesare recorded as a reduction of cost of investments and/or realizedgain. Interest income is recorded on the accrual basis.



Foreign taxes The Fund is subject to foreign taxes whichmay be imposed by certain countries in which the Fund invests.

P A G E 1 0 ▪ D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D


The Fund endeavors to record foreign taxes based on applicableforeign tax law. Withholding taxes are incurred on certain foreigndividends and are accrued at the time the associated dividend isrecorded. The Fund files withholding tax reclaims in certainjurisdictions to recover a portion of amounts previously withheld.The Fund records a reclaim receivable based on, among otherthings, a jurisdiction’s legal obligation to pay reclaims as well aspayment history and market convention. In consideration ofrecent decisions rendered by European courts, the Fund has filedfor additional reclaims related to prior years. A correspondingreceivable is established when both the amount is known andsignificant contingencies or uncertainties regarding collectabilityare removed. These amounts are reported in “dividends andinterest receivable” on the Consolidated Statement of Assets andLiabilities.




The values of the forward currency contracts are adjusteddaily based on the prevailing forward exchange rates of theunderlying currencies. Changes in the value of open contracts arerecorded as unrealized appreciation or depreciation in theConsolidated Statement of Operations. When the forwardcurrency contract is closed, the Fund records a realized gain or lossin the Consolidated Statement of Operations equal to thedifference between the value at the time the contract was openedand the value at the time it was closed.

The Fund maintained forward currency contracts to hedgeforeign currency risks associated with portfolio investmentsdenominated in the euro and Swiss franc. During the year endedDecember 31, 2015, these euro and Swiss franc forward currency

contracts had U.S. dollar total values ranging from 3% to 5% ofnet assets and 0% to 3% of net assets, respectively.


Reported realized and unrealized gain (loss) on investmentsinclude foreign currency gain (loss) related to investmenttransactions.

Reported realized and unrealized gain (loss) on foreigncurrency transactions and translation include the following:disposing/holding of foreign currency, the difference between thetrade and settlement dates on securities transactions, the differencebetween the accrual and payment dates on dividends, and currencylosses on the purchase of foreign currency in certain countries thatimpose taxes on such transactions.

Consolidation The Fund may invest in certain securitiesthrough its wholly owned subsidiary, Dodge & Cox InternationalStock Fund Cayman, Ltd. (the “Subsidiary”). The Subsidiary is aCayman Islands exempted company and invests in certainsecurities consistent with the investment objective of the Fund.The Fund’s Consolidated Financial Statements, including theConsolidated Portfolio of Investments, consist of the holdings andaccounts of the Fund and the Subsidiary. All intercompanytransactions and balances have been eliminated. AtDecember 31, 2015, the Subsidiary had net assets of $100, whichrepresented less than 0.01% of the Fund’s consolidated net assets.



Various inputs are used in determining the value of the Fund’sinvestments and other financial instruments. These inputs aresummarized in the three broad levels listed below.▪ Level 1: Quoted prices in active markets for identical securities▪ Level 2: Other significant observable inputs (including quoted



D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ▪ P A G E 1 1





(Quoted Prices)


Observable Inputs)

SecuritiesCommon Stocks

Consumer Discretionary $ 5,482,095,050 $ 5,254,622,284Consumer Staples 210,023,170 —Energy 3,142,839,341 376,728,063Financials 8,962,360,983 4,921,505,910Health Care 3,691,508,976 3,633,970,885Industrials 3,474,980,662 1,441,989,970Information Technology 3,491,473,005 5,125,125,223Materials 1,119,845,638 1,867,351,560Telecommunication Services 1,705,213,732 574,611,534

Preferred StocksEnergy 605,264,260 —Financials — 982,425,551Information Technology — 542,444,786

Short-term InvestmentsMoney Market Fund 57,731,545 —Repurchase Agreement — 72,314,000



Forward Currency ContractsAppreciation $ — $ 29,472,280Depreciation — (33,999,716)

(a) Transfers during the year between Level 1 and Level 2 relate to the use ofsystematic fair valuation (see Note 1). On days when systematic fairvaluation is used, securities whose primary market closes before the NYSEare classified as Level 2. There were no Level 3 securities at December 31,2015 and 2014, and there were no transfers to Level 3 during the year.



The Fund has entered into over-the-counter derivatives, such asforward currency contracts (each, a “Derivative”). Each Derivativeis subject to a negotiated master agreement (based on a formpublished by the International Swaps and Derivatives Association(“ISDA”)) governing all Derivatives between the Fund and therelevant dealer counterparty. The master agreements specify(i) events of default and other events permitting a party toterminate some or all of the Derivatives thereunder and (ii) theprocess by which those Derivatives will be valued for purposes ofdetermining termination payments. If some or all of theDerivatives under a master agreement are terminated because of anevent of default or similar event, the values of all terminatedDerivatives must be netted to determine a single payment owed byone party to the other. Some master agreements contain collateralterms requiring the parties to post collateral in respect of some orall of the Derivatives thereunder based on the net market value ofthose Derivatives, subject to a minimum exposure threshold. To

the extent amounts owed to the Fund by its counterparties are notcollateralized, the Fund is at risk of those counterparties’non-performance. The Fund attempts to mitigate counterpartycredit risk by entering into Derivatives only with counterparties itbelieves to be of good credit quality and by monitoring thefinancial stability of those counterparties.

At December 31, 2015, no Derivative position subject to amaster netting arrangement qualifies for netting. For financialreporting purposes, the Fund does not offset financial assets andliabilities that are subject to a master netting arrangement in theConsolidated Statement of Assets and Liabilities. Gross assets andliabilities related to Derivatives are presented as “unrealizedappreciation on forward currency contracts” and “unrealizeddepreciation on forward currency contracts,” respectively, in theConsolidated Statement of Assets and Liabilities. Derivativeinformation by counterparty is presented in the ConsolidatedPortfolio of Investments. At December 31, 2015, no collateral ispledged or held by the Fund for Derivatives.






A provision for federal income taxes is not required since the Fundintends to continue to qualify as a regulated investment companyunder Subchapter M of the Internal Revenue Code and distributeall of its taxable income to shareholders. Distributions aredetermined in accordance with income tax regulations, and suchamounts may differ from net investment income and realized gainsfor financial reporting purposes. Financial reporting records areadjusted for permanent book to tax differences at year end toreflect tax character.

Book to tax differences are primarily due to differingtreatments of wash sales, net short-term realized gain (loss),investments in passive foreign investment companies, foreigncapital gain taxes, and foreign currency realized gain (loss). AtDecember 31, 2015, the cost of investments for federal income taxpurposes was $62,340,216,132.

Distributions during the years noted below were characterizedas follows for federal income tax purposes.



Ordinary income $1,304,169,120 $1,440,251,048($0.840 per share) ($0.970 per share)

Long-term capital gain — —




Unrealized appreciation $6,704,313,452Unrealized depreciation (12,308,103,456)

Net unrealized depreciation (5,603,790,004)Undistributed ordinary income 14,057,590Capital loss carryforward(a) (1,783,220,989)Deferred loss(b) (18,220,273)(a) Represents accumulated capital loss as of December 31, 2015, which may

be carried forward to offset future capital gains. During 2015, the Fundutilized $1,416,343,422 of the capital loss carryforward. If not utilized, theremaining capital loss carryforward will expire as follows:

Expiring in 2017 $ 663,100,760Expiring in 2018 1,120,120,229

$1,783,220,989

(b) Represents net realized specified loss incurred between November 1, 2015and December 31, 2015. As permitted by tax regulations, the Fund haselected to treat this loss as arising in 2016.

Under the Regulated Investment Company Modernization Actof 2010, capital losses incurred by the Fund after January 1, 2011, arenot subject to expiration. In addition, such losses must be utilizedprior to the losses incurred in the years preceding enactment.




All Funds in the Trust participate in a $500 million committedcredit facility (Line of Credit) with State Street Bank and TrustCompany, to be utilized for temporary or emergency purposes to fundshareholder redemptions or for other short-term liquidity purposes.The maximum amount available to the Fund is $250 million. EachFund pays an annual commitment fee on its pro-rata portion of theLine of Credit. For the year ended December 31, 2015, the Fund’scommitment fee amounted to $204,009 and is reflected as aMiscellaneous Expense in the Consolidated Statement of Operations.Interest on borrowings is charged at the prevailing rate. There wereno borrowings on the Line of Credit during the year.


For the year ended December 31, 2015, purchases and sales ofsecurities, other than short-term securities, aggregated $14,357,056,088and $11,503,938,817 respectively.





NOTE 9—HOLDINGS OF 5% VOTING SECURITIES

Each of the companies listed below was considered to be an affiliate of the Fund because the Fund owned 5% or more of the company’svoting securities during all or part of the year ended December 31, 2015. Purchase and sale transactions and dividend income earned duringthe year on these securities were as follows:

Shares atBeginning of Year Additions Reductions

Shares atEnd of Year

DividendIncome(a)

Value atEnd of Year

AEGON NV (Netherlands) 125,227,471 5,110,292 — 130,337,763 33,876,341 —(c)

Anadolu Efes Biracilik ve Malt Sanayii AS (Turkey) 28,262,444 4,162,732 — 32,425,176 4,579,929 210,023,170BR Malls Participacoes SA (Brazil) 54,870,300 — — 54,870,300 8,160,027 153,032,279Brother Industries, Ltd. (Japan) 18,185,100 — (5,973,100) 12,212,000 3,331,859 —(c)

Hang Lung Group, Ltd. (Hong Kong) 90,430,600 20,093,700 — 110,524,300 11,468,203 358,666,866Infineon Technologies AG (Germany) 66,414,456 — (10,652,086) 55,762,370 13,631,230 —(c)

Kasikornbank PCL—Foreign (Thailand) 123,826,527 16,056,500 — 139,883,027 14,472,518 578,306,373Kyocera Corp. (Japan) 20,248,000 — (1,125,600) 19,122,400 16,628,257 886,308,045Lafarge SA (France) 20,035,291 — (20,035,291) — 24,427,989 —Lanxess AG (Germany) 4,539,680 462,000 (773,346) 4,228,334 2,419,062 —(c)

Millicom International Cellular SA SDR (Luxembourg) 10,088,392 — — 10,088,392 22,755,923 574,611,534New Oriental Education & Technology Group, Inc. ADR

(Cayman Islands/China) 5,733,700 4,051,929 (3,416,301) 6,369,328 3,528,539 —(c)

NGK Spark Plug Co., Ltd. (Japan) 14,009,700 1,118,700 (4,787,100) 10,341,300 3,405,633 —(c)

Saipem SPA (Italy) 35,889,000 10,976,200 — 46,865,200 —(b) 376,728,063Smiths Group PLC (United Kingdom) 26,840,600 7,085,600 — 33,926,200 21,009,124 469,881,576Television Broadcasts, Ltd. (Hong Kong) 40,022,900 — — 40,022,900 25,299,505 164,996,568Yamaha Motor Co., Ltd. (Japan) 31,550,100 — — 31,550,100 11,417,409 706,999,061Yapi ve Kredi Bankasi AS (Turkey) 234,711,168 4,650,000 (34,984,300) 204,376,868 6,004,776 — (c)

$226,416,324 $4,479,553,535

(a) Net of foreign taxes, if any(b) Non-income producing(c) Company was not an affiliate at year end


CONSOLIDATED FINANCIAL HIGHLIGHTS


2015 2014 2013 2012 2011


Net investment income 0.79 0.98 0.70 0.76 0.78Net realized and unrealized gain (loss) (5.58) (0.94) 8.40 5.39 (6.49)


Distributions to shareholders from:Net investment income (0.84) (0.97) (0.70) (0.75) (0.76)Net realized gain — — — — —





See accompanying Notes to Consolidated Financial Statements


To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox International Stock Fund

In our opinion, the accompanying consolidated statement of assets and liabilities, including the consolidated portfolio of investments, andthe related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in allmaterial respects, the financial position of Dodge & Cox International Stock Fund (the “Fund”, one of the series constituting Dodge & CoxFunds) at December 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years inthe period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accountingprinciples generally accepted in the United States of America. These consolidated financial statements and consolidated financialhighlights (hereafter referred to as financial statements) are the responsibility of the Fund’s management. Our responsibility is to express anopinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with thestandards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used andsignificant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, whichincluded confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis forour opinion.



SPECIAL 2015 TAX INFORMATIONThe following information is provided pursuant to provisions ofthe Internal Revenue Code:

In 2015, the Fund elected to pass through to shareholdersforeign source income of $1,705,148,285 and foreign taxes paid of$93,902,146.

The Fund designates up to a maximum of $1,627,860,558 of itsdistributions paid to shareholders in 2015 as qualified dividends(treated for federal income tax purposes in the hands of shareholdersas taxable at a maximum rate of 20%).


BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing the performance ofthe Dodge & Cox Funds’ investment manager and determiningwhether to continue the Investment Management Agreementsbetween the Funds and Dodge & Cox each year (the “Agreements”).At a meeting of the Board of Trustees of the Trust held onDecember 16, 2015, the Trustees, by a unanimous vote (including aseparate vote of those Trustees who are not “interested persons” (asdefined in the Investment Company Act of 1940) (the “IndependentTrustees”)), approved the renewal of the Agreements for an additionalone-year term through December 31, 2016 with respect to each Fund.During the course of the year, the Board received a wide variety ofmaterials relating to the investment management and administrativeservices provided by Dodge & Cox and the performance of each of theFunds.


In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided byDodge & Cox. The Independent Trustees retained Morningstar® toprepare an independent expense and performance summary for eachFund and comparable funds managed by other advisers identified byMorningstar. The Morningstar materials included informationregarding advisory fee rates, expense ratios, and transfer agency,custodial, and distribution expenses, as well as appropriate performancecomparisons to each Fund’s peer group and an index or combination ofindices. The Morningstar materials also included a comparison ofexpenses of various share classes offered by comparable funds. Thematerials reviewed by the Board contained information concerning,among other things, Dodge & Cox’s profitability, financial results andcondition, advisory fee revenue, and separate account and sub-adviserfund fee schedules. The Board additionally considered the Funds’brokerage commissions, turnover rates, sales and redemption data andthe significant investment that Dodge & Cox makes in research usedin managing the Funds. The Board received and reviewed

memoranda and related materials addressing, among other things,Dodge & Cox’s services to the Funds; how Dodge & Cox Funds’fees compare to fees of peer group funds; the different fees, services,costs, and risks associated with other accounts managed byDodge & Cox as compared to the Dodge & Cox Funds; and theways in which the Funds realize economies of scale. Throughoutthe process of reviewing the services provided by Dodge & Coxand preparing for the meeting, the Independent Trustees foundDodge & Cox to be open, forthright, detailed, and very helpful inanswering questions about all issues. The Board received copies ofthe Agreements and a memorandum from the independent legalcounsel to the Independent Trustees discussing the factorsgenerally regarded as appropriate to consider in evaluating advisoryarrangements. The Trust’s Contract Review Committee, consistingsolely of Independent Trustees, met with the independent legalcounsel on November 11, 2015, and again on December 16, 2015,to discuss whether to renew the Agreements. The Board, includingthe Independent Trustees, subsequently concluded that theexisting Agreements are fair and reasonable and voted to approvethe Agreements. In considering the Agreements, the Board,including the Independent Trustees, did not identify any singlefactor or particular information as all-important or controlling. Inreaching the decision to approve the Agreements, the Boardconsidered several factors, discussed below, to be key factors andreached the conclusions described below.


The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through itswebsite and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and its


reputation as a trusted, shareholder-friendly mutual fund family. Inaddition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionalsthan most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.







Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports ofDodge & Cox’s financial position, profitability, and estimatedoverall value, and considered Dodge & Cox’s overall profitabilitywithin its context as a private, employee-owned S-Corporationand relative to the favorable services provided. The Board noted inparticular that Dodge & Cox’s profits are not generated by high feerates, but reflect an extraordinarily streamlined, efficient, andfocused business approach toward investment management. TheBoard recognized the importance of Dodge & Cox’s profitability—which is derived solely from management fees and does notinclude other business ventures—to maintain its independence,stability, company culture and ethics, and management continuity.The Board also considered that the compensation/profit structureat Dodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independentand facilitating retention of management and investment


professionals. The Board considered independent researchindicating that firms that grow organically, rather than throughacquisition, tend to have better performance. Key to organicgrowth is the ability to retain talented and experienced analysts,portfolio managers and other professionals.

The Board also considered that in January 2015, Dodge & Coxclosed the International Stock Fund to new investors to pro-activelymanage the growth of the Fund. The Stock Fund and Balanced Fundwere similarly closed to new investors during periods of significantgrowth in the past. While these actions are intended to benefitexisting shareholders, the effect is to reduce potential revenues toDodge & Cox from new shareholders. The Board also consideredpotential “fall-out” benefits (including the receipt of research fromunaffiliated brokers and reputational benefits to non-U.S. fundssponsored and managed by Dodge & Cox) that Dodge & Cox mightreceive as a result of its association with the Funds and determinedthat they are acceptable. The Board also noted that Dodge & Coxcontinues to invest substantial sums in its business in order to provideenhanced services, systems and research capabilities, all of whichbenefit the Funds. The Board concluded that Dodge & Cox’sprofitability is the keystone of its independence, stability and long-term investment performance and that the profitability ofDodge & Cox’s relationship with the Funds (including fall-outbenefits) is fair and reasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In the Board’sview, any consideration of economies of scale must take account ofthe Funds’ low fee structure and the considerable efficiencies of theFunds’ organization and fee structure that has been realized byshareholders from the time of each Fund’s inception (i.e., from thefirst dollar). An assessment of economies of scale must also take intoaccount that Dodge & Cox invests significant time and resources ineach new Fund for months (and sometimes years) prior to launch; inaddition, expenses are capped, which means that Dodge & Cox earnsno revenue and subsidizes the operations of a new Fund for a periodof time until it reaches scale.



CONCLUSION


FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the listswith the Securities and Exchange Commission (SEC) onForm N-CSR (second and fourth quarters) and Form N-Q (firstand third quarters). Shareholders may view the Fund’sForms N-CSR and N-Q on the SEC’s website at sec.gov. FormsN-CSR and N-Q may also be reviewed and copied at the SEC’sPublic Reference Room in Washington, DC. Informationregarding the operations of the Public Reference Room may beobtained by calling 202-551-8090 (direct) or 800-732-0330(general SEC number). A list of the Fund’s quarter-end holdings isalso available at dodgeandcox.com on or about 15 days followingeach quarter end and remains available on the website until thelist is updated in the subsequent quarter.



If you have a direct account with the Funds and you do not wantthe mailing of shareholder reports and summary prospectusescombined with other members in your household, contact the Fundsat 800-621-3979. Your request will be implemented within 30 days.








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Dana M. Emery(54)



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Trustee(Since 2002)


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Trustee(Since 2011)







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International Stock Fund

dodgeandcox.com


or write or call:

DODGE & COX FUNDS


INVESTMENT MANAGER


This report is submitted for the general information of the shareholders of the Fund. The report is not authorized for distributionto prospective investors in the Fund unless it is accompanied by a current prospectus.


Dodge & Cox Stock Fund (DODGX)

Dodge & Cox Global Stock Fund (DODWX) Dodge & Cox International Stock Fund (DODFX)

Dodge & Cox Balanced Fund (DODBX) Dodge & Cox Income Fund (DODIX)

Dodge & Cox Global Bond Fund (DODLX)

c/o Boston Financial Data Services Inc. P.O. Box 8422

Boston, MA 02266-8422 800-621-3979

dodgeandcox.com

STATEMENT OF ADDITIONAL INFO RMATION Dated May 1, 2016

This Statement of Additional Information (SAI) pertains to the Dodge & Cox Funds (the Trust), a family of six no-load mutual funds: Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, Dodge & Cox Income Fund, and Dodge & Cox Global Bond Fund (each a Fund and, collectively, the Funds). Each Fund is a series of the Trust. This SAI is not the Funds’ Prospectus, but provides additional information which should be read in conjunction with the Prospectus dated May 1, 2016, which is incorporated by reference into this SAI. The Funds’ Prospectus and most recent Annual Report may be obtained from the Funds at no charge by writing, visiting our website, or contacting the Funds at the address, website, or telephone number shown above. This SAI contains additional and more detailed information about the Funds’ operations and activities than the Prospectus.

T A B L E O F C O N T E N T S

CLASSIFICATION, INVESTMENT RESTRICTIONS AND RISKS ..................................................................1 Classification ..........................................................................................................................................................1 Investment Restrictions .........................................................................................................................................1 Characteristics and Risks of Securities and Investment Techniques ....................................................................2

DISCLOSURE OF FUND HOLDINGS .................................................................................................................22 MANAGEMENT OF THE FUNDS .......................................................................................................................23

Trustees and Officers ............................................................................................................................................23 Code of Ethics ......................................................................................................................................................35 Proxy Voting Policies and Procedures..................................................................................................................35 Principal Holders of Securities .............................................................................................................................35 Investment Manager ............................................................................................................................................35 Investment Committee Members ........................................................................................................................36 Other Service Providers .......................................................................................................................................45

BROKERAGE ALLOCATION AND OTHER PRACTICES ..............................................................................46 CAPITAL STOCK ..................................................................................................................................................50 PURCHASE, REDEMPTION, AND PRICING OF SHARES .............................................................................50 TAXATION OF THE FUNDS ...............................................................................................................................51 PRINCIPAL UNDERWRITER ..............................................................................................................................57 FINANCIAL STATEMENTS ................................................................................................................................57 APPENDICES ..........................................................................................................................................................58

Appendix A: Ratings............................................................................................................................................58 Appendix B: Proxy Voting Policies and Procedures ..........................................................................................633

Link to Prospectus

https://dodgeandcox.com/pdf/prospectus/dc_statutory_prospectus.pdf

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C L A S S I F I C A T I O N , I N V E S T M E N T R E S T R I C T I O N S , A N D R I S K S

C L A S S I F I C A T I O N The Funds are open-end management investment companies. The Investment Company Act of 1940, as amended (1940 Act), classifies investment companies as either diversified or nondiversified. The Dodge & Cox Global Bond Fund is a non-diversified series of the Trust, and each of the other Funds is a diversified series of the Trust.

I N V E S T M E N T R E S T R I C T I O N S Each Fund has adopted fundamental and non-fundamental restrictions. The following fundamental restrictions cannot be changed without the approval of the holders of a majority of a Fund’s outstanding shares. The 1940 Act defines a majority as the lesser of (1) 67% or more of the voting shares present at a meeting if the holders of more than 50% of the outstanding voting shares are present or represented by proxy, or (2) more than 50% of the outstanding voting shares of a Fund. As applicable, each Fund may not: 1. Underwrite securities of other issuers, except as permitted under, or to the extent not prohibited by, the 1940

Act, the rules and regulations thereunder or any exemption therefrom, as such statute, rules or regulations and rules thereunder as interpreted or modified by regulatory authority having jurisdiction from time to time, and any applicable exemptive relief.

2. Invest in a security if, as a result of such investment, more than 25% of its total assets would be invested in the securities of issuers in any particular industry, except that the restriction does not apply to securities issued or guaranteed by the U.S. government, its agencies or Government Sponsored Enterprises (GSE) (or repurchase agreements with respect thereto).

3. Purchase or sell real estate unless acquired as a result of ownership of securities or other instruments, although a Fund may invest in marketable securities secured by real estate or interests therein or issued by companies or investment trusts that invest or deal in real estate or interests therein.

4. Purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments. This restriction shall not prohibit a Fund, subject to restrictions described in the Prospectus and elsewhere in this SAI, each as may be amended from time to time, from purchasing, selling or entering into financial derivative or commodity contracts (such as futures contracts or options on futures contracts, or transactions related to currencies), subject to compliance with any applicable provisions of the federal securities or commodities laws.

5. Borrow money or issue senior securities except as permitted under, or to the extent not prohibited by, the 1940 Act, and rules thereunder, as interpreted or modified by regulatory authority having jurisdiction from time to time, and any applicable exemptive relief.

6. Make loans to other persons, except as permitted under, or to the extent not prohibited by, the 1940 Act, and rules thereunder, as interpreted or modified by regulatory authority having jurisdiction from time to time, and any applicable exemptive relief.

Each Fund, other than the Dodge & Cox Global Bond Fund, may not: 7. With respect to 75% of the Fund’s total assets, purchase the securities of any issuer, except securities issued or

guaranteed by the U.S. government or any of its agencies or instrumentalities or securities issued by other investment companies, if, as a result (i) more than 5% of the Fund’s total assets would be invested in securities of that issuer, or (ii) the Fund would hold more than 10% of the outstanding voting securities of that issuer.

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The following non-fundamental restriction may be changed by the Board of Trustees without shareholder approval. Each Fund may not: 1. Purchase any security if as a result a Fund would then have more than 15% of its net assets invested in

securities that are illiquid, including repurchase agreements not maturing in seven days or less and securities restricted as to disposition under federal securities laws.

The percentage limitations included in the investment restrictions and elsewhere in this SAI and the Prospectus apply at the time of purchase of a security. So, for example, if a Fund exceeds a limit as a result of market fluctuations or the sale of other securities, it will not be required to dispose of any securities. Industry classifications for the Funds are based on classifications maintained and developed by third parties. Application of these standards may involve the exercise of discretion by Dodge & Cox. Dodge & Cox reserves the right to change industry classifications or to apply a different recognized standard as it deems appropriate and without seeking shareholder approval.

C H A R A C T E R I S T I C S A N D R I S K S O F S E C U R I T I E S A N D I N V E S T M E N T T E C H N I Q U E S Each Fund may not be suitable or appropriate for all investors. Each Fund’s share price will fluctuate with market, economic, and currency conditions, and your investment may be worth more or less when redeemed than when purchased. The Funds should not be relied upon as a complete investment program, nor used to play short-term swings in the equity, debt, or currency markets. The Funds are not money market funds and are not appropriate investments for those whose primary objective is principal stability. A Fund’s assets (and therefore, an investment in the Fund) will be subject to all of the risks of investing in the financial markets. All investment entails risk. The value of a Fund’s portfolio will fluctuate based upon market conditions. Although a Fund may seek to reduce risk by investing in a diversified portfolio, such diversification does not eliminate all risk. The Dodge & Cox Global Bond Fund is a non-diversified fund (as defined under the 1940 Act), which allows it to invest a greater percentage of its assets in any one issuer than would otherwise be the case for a diversified fund. In seeking to meet its investment objective(s), each Fund will invest in securities or instruments whose investment characteristics are consistent with the Fund’s investment program, but there is no assurance or guarantee that a Fund will achieve its objective(s). The principal investments and investment practices and risks of each Fund are described in its Prospectus; the following provides additional information with respect to certain of those and other investments and investment practices in which the Funds may engage and risks to which the Funds may be exposed.

Foreign Investments and Non-U.S. Exposure A Fund may invest in the securities of issuers that are organized in, based in, and/or have their primary listing on non-U.S. markets. In addition, investments in the securities of U.S. companies may create indirect exposure to non-U.S. markets if any issuers of those securities are exposed to non-U.S. markets – for example, if an issuer does a significant amount of business in or relies on suppliers from non-U.S. markets. The political, economic, social, and regulatory structures of certain foreign countries, especially developing or emerging countries (e.g., many of the countries of Southeast Asia, Latin America, Eastern Europe, Africa, and the Middle East), may be less stable than those in the United States. Investment in and exposure to foreign developed countries may also involve risks not typically associated with investments in the United States. Political and economic factors. Foreign economies may differ favorably or unfavorably from the United States’ economy in such matters as the pace and sources of economic growth, rates of inflation, exchange rate regimes or currency volatility, endowments of natural resources, openness to trade and foreign investment, external accounts position, and institutions, among other factors. A foreign economy (at the national or regional level) may be less stable than that of the United States because of institutional weaknesses or economic dislocations. Both in developed and developing countries, crises have ensued from time to time, which have had a negative impact on investor positions. These episodes include instances of default, restructuring, economic pressures introduced by significant commodity price declines, or severe devaluations of foreign currencies with respect to the U.S. dollar, all of which can have the potential to severely erode the value of investments abroad. For example, Greece defaulted on its national debt in March 2012 in a restructuring that forced investors to write off

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more than 100 billion Euros of debt. European Union member countries that use the Euro as their currency (so-called Eurozone countries) lack the ability to implement an independent monetary policy and may be significantly affected by requirements that limit their fiscal options. There are other past examples of extreme economic dislocations in foreign countries. In 2001, Argentina suspended payments on external debt, abrogated the convertibility of the Argentine peso, placed restrictions on bank withdrawals, and revalued U.S. dollar bank deposits and debts. In 2008, pressures in international markets and the loss of confidence in Iceland’s financial system led to the collapse of its three largest banks in the span of a week. As a result, the onshore foreign exchange market dried up, the króna depreciated by more than 70 percent in the offshore market, and the equity market tumbled by over 80 percent. Governments in certain foreign countries continue to participate to a significant degree, through ownership interest or regulation, in their respective economies. Action by these governments could have a significant effect on market prices of securities and payment of dividends, interest, and/or principal. The economies of many foreign countries are heavily dependent upon international trade and are accordingly affected by protective trade barriers and the economic conditions of their trading partners. The enactment by a trading partner of protectionist trade legislation could have a significant adverse effect upon the securities markets of such countries. Additionally, investing in foreign securities may impose risks such as greater social, economic, and political uncertainty and instability (including amplified risk of war, terrorism, or adverse impacts from widespread epidemics). For example, in both 1991 and 2006, the existing government in Thailand was overthrown in a military coup. Significant external political risks currently affect some foreign countries. Both Taiwan and China still claim sovereignty over one another, and hostile relations continue between North and South Korea. Investments in the Middle East and elsewhere may be exposed to heightened risk relating to the activities of terrorist groups such as ISIL. Investment and repatriation restrictions. Foreign investment in the securities markets of certain foreign countries is restricted or controlled in varying degrees. These restrictions may limit or preclude investment in certain such countries and may increase the cost and expenses of a Fund. Investments by foreign investors may be subject to a variety of restrictions. These restrictions may take the form of prior governmental approval, limits on the amount or type of securities held by foreigners, and limits on the types of companies in which foreigners may invest. Additional or different restrictions may be imposed at any time by countries in which a Fund invests. In addition, the repatriation of both investment income and capital from some foreign countries is restricted and controlled under certain regulations, including in some cases the need to obtain certain government consents. For example, in 1998, the governments of Malaysia and Indonesia imposed currency and trading controls which made it impossible for foreign investors to convert local currencies to foreign currencies. With respect to any one developing (or developed) country, there is no guarantee that some future economic or political crisis will not lead to price controls, forced mergers of companies, expropriation, or creation of government monopolies to the possible detriment of the Fund’s investments. Currency fluctuations. The Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox Global Bond Fund may invest directly in securities denominated in various foreign currencies. These Funds and the Dodge & Cox Stock Fund, Dodge & Cox Income Fund, and Dodge & Cox Balanced Fund may also invest in U.S. dollar-denominated securities of non-U.S. issuers. Some such securities, such as depositary receipts are based on underlying securities which may be denominated in foreign currencies. All of the Funds may be exposed indirectly to foreign currencies through their investment in U.S. and/or non-U.S. issuers exposed to such currencies. A change in the value of a currency in which a security is denominated against the U.S. dollar will result in a corresponding change in the U.S. dollar value of that security and such a change may also affect the value and income of the securities of issuers who are exposed to that currency. Generally, when a given currency appreciates against the dollar (the dollar weakens), the value of securities denominated in (or otherwise exposed to) that currency will rise. When a given currency depreciates against the dollar (the dollar strengthens), the value of securities denominated in (or otherwise exposed to) that currency will decline. There may be no significant foreign exchange market for some currencies and it may, as a result, be difficult for the Funds to engage in foreign currency transactions intended to hedge the value of the Funds’ interests in securities denominated in or exposed to such currencies or to implement a currency investment strategy.

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Dodge & Cox may not attempt to fully insulate a Fund’s investment returns from the influence of currency fluctuations on the value of its portfolio investments denominated in or otherwise exposed to foreign currencies. Dodge & Cox may (but is not required to) use currency derivatives to seek to limit some or all of the negative effect on a Fund’s investment returns that may result from anticipated changes in the relative values of selected currencies. There is no guarantee that this strategy will be successful. The use of various derivatives to hedge currency exposure is discussed further under “Derivatives – Currency Derivatives.” Market characteristics. The Funds may purchase foreign securities on U.S. securities exchanges, in over-the-counter (OTC) markets and, in the case of the Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox Global Bond Fund, on local foreign securities exchanges. The OTC market includes securities of foreign issuers quoted through the OTC Bulletin Board Service (OTCBB). The OTCBB provides real-time quotations for securities of foreign issuers, including ADRs convertible into such securities, which are registered with the United States Securities and Exchange Commission (SEC) under Section 12 of the Securities Exchange Act of 1934. The OTC market also includes “pink sheet” securities (Pink Sheets) published by OTC Markets Group Inc., a quotation medium for unregistered securities of domestic and foreign issuers, including unregistered ADRs (as defined below) convertible into such securities. OTC Markets Group is not registered with the SEC as a stock exchange, nor does the SEC regulate its activities. OTC Markets Group is not required to provide real-time quotations and does not require companies whose securities are quoted on its systems to meet any listing requirements. With the exception of a few foreign issuers, the companies quoted in the Pink Sheets tend to be thinly traded. Many of these companies do not file periodic reports or audited financial statements with the SEC. For these reasons, companies quoted in the Pink Sheets can involve greater risk. Investments in certain markets may be made through ADRs (as defined below) traded in the United States or on foreign exchanges. Foreign markets may not be as developed or efficient as, and may be more volatile than, those in the United States. Most foreign markets have substantially less volume than U.S. markets and securities purchased in foreign markets may be less liquid and subject to more rapid and erratic price movements than securities of comparable U.S. entities. Securities purchased in foreign markets may trade at price/earnings multiples higher than comparable United States securities and such levels may not be sustainable. Commissions or spreads on foreign exchanges are generally higher or wider, respectively, than commissions or spreads on United States exchanges. While there are an increasing number of overseas securities markets that have adopted a system of negotiated rates, a number are still subject to an established schedule of minimum commission rates. There is generally less government supervision and regulation of foreign exchanges, brokers, and listed companies than in the United States. Moreover, settlement practices for transactions in foreign markets may differ from those in United States markets. Such differences may include longer settlement periods than those that are customary in the United States and practices, such as delivery of securities prior to receipt of payment, which increase the likelihood of a “failed settlement.” Failed settlements can result in losses to a Fund. Information and supervision. There is often less publicly available information about foreign entities which is comparable to reports and ratings that are published about securities issuers in the United States. Foreign entities are generally subject to different (and possibly less rigorous) accounting, auditing and financial reporting standards, practices, and requirements than those applicable to United States companies. It may be more difficult to keep currently informed of corporate actions which affect the prices of portfolio securities. Foreign Taxes. Taxation of dividends, distributions, coupons, and capital gains received by non-residents such as the Funds varies among foreign countries, and, in some cases, is comparatively high. The dividends and capital gains realized on certain of a Fund’s foreign portfolio securities may be subject to foreign withholding taxes, stamp duties, and transaction taxes. In addition, developing or emerging countries typically have less well-defined tax laws and procedures, and such laws may permit retroactive taxation so that a Fund could in the future become subject to local tax liabilities it could not have reasonably anticipated in conducting its investment activities or valuing its interests. Evolving tax law and lack of historical precedent may create uncertainty regarding whether a Fund’s dividend income or capital gains are subject to taxation by foreign jurisdictions, or whether an incurred tax may be reclaimed. All of these factors may reduce the net amount of income available for distribution to a Fund’s shareholders.

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Foreign Ownership Reporting. Foreign companies may require disclosure of substantial holdings of the company’s securities at lower thresholds than a domestic issuer would impose, and may require issuer consent for holdings over prescribed thresholds. These requirements could result in the Fund’s position in a foreign issuer being disclosed to the issuer and potentially to market participants. Economic Sanctions Risk. Foreign companies may become subject to economic sanctions or other government restrictions, which may negatively impact the value or liquidity of a fund’s investments, and could impair a Fund’s ability to meet its investment objective or invest in accordance with its investment strategy. A Fund may be prohibited from investing in securities issued by companies subject to such restrictions. A Fund could be required to freeze or divest its existing investments in a company that becomes subject to such restrictions, and could be unable to buy or sell securities of such a company. Other. With respect to certain foreign countries, especially developing and emerging ones, there is the possibility of adverse changes in investment or currency exchange control regulations, civil war, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, the absence of developed legal structures governing private or foreign investment or allowing for judicial redress for injury to private property, political or social instability, or diplomatic developments which could affect investments by U.S. persons in those countries. Certain foreign economies and governments may be more susceptible to corruption; a corruption scandal could have a significant negative effect on the value of investments in an affected country. The legal systems of other countries, particularly in emerging markets, may differ from that of United States. Some such countries may lack or be in the relatively early development of legal structures and protections governing private and foreign investments, and the rule of law may be less entrenched than it is in the United States. It may be more difficult in such countries for investors, particularly foreign investors, to enforce their rights against issuers of securities. Depositary Receipts. A Fund may invest in the securities of foreign issuers through the purchase of American Depositary Receipts, Global Depositary Receipts, European Depositary Receipts, Global Depositary Notes, and similar instruments (collectively, ADRs). ADRs are certificates evidencing ownership of securities of a foreign issuer and may be denominated in a currency other than that of the underlying securities. These certificates are issued by depositary banks, and the underlying shares are held in trust by a custodian bank or similar financial institution in the issuer’s home country. ADRs may be purchased and sold in OTC markets or on securities exchanges. A Fund may make arrangements through a broker/dealer to purchase a foreign security on the issuer’s primary securities exchange and convert the security to a U.S. dollar-denominated ADR. ADRs may be sponsored or unsponsored. A sponsored ADR is issued by a depositary which has an exclusive relationship with the issuer of the underlying security. An unsponsored ADR may be issued by any number of depositaries. Under the terms of most sponsored arrangements, depositaries agree to distribute notices of shareholder meetings and voting instructions, and to provide shareholder communications and other information to the ADR holders at the request of the issuer of the deposited securities. The depositary of an unsponsored ADR, on the other hand, is under no obligation to distribute shareholder communications received from the issuer of the deposited securities or to pass through voting rights to ADR holders in respect of the deposited securities. The Funds may invest in either type of ADR. ADRs are subject to the risks to which the underlying securities are exposed, which includes currency risk to the extent the underlying securities are denominated in a foreign currency (see the discussion of “Currency Risk” above). A Fund may therefore be subject to direct non-U.S. currency risk through the purchase of an ADR even if the ADR itself is denominated in U.S. dollars. For purposes of applying a Fund’s investment restrictions, the issuer of the security underlying an ADR will be considered the issuer of the ADR. Dollar-Denominated Debt of Non-U.S. Issuers. A Fund may purchase debt securities issued by a non-U.S. entity, but denominated in U.S. dollars. Dollar-denominated debt of foreign issuers is subject to risks common to all types of debt, such as credit risk, interest rate risk, and liquidity risk. A non-U.S. issuer making debt payments in U.S. dollars is exposed to the risk that the value of its domestic currency or other currencies to which it is exposed will decline relative to the U.S. dollar. An additional risk is the possibility that a foreign government might enact measures to limit the flow of foreign currencies, including U.S. dollars, across its borders. Investment Funds. The Funds may invest in investment funds which have been authorized by the governments of certain countries specifically to permit foreign investment in securities of companies listed and traded on the

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stock exchanges in these respective countries. A Fund’s investment in such a fund is subject to the provisions of the 1940 Act. If a Fund invests in such investment funds, the Fund’s shareholders will bear not only their proportionate share of the expenses of the Fund (including operating expenses and the fees of the investment manager), but also will bear indirectly similar expenses of the underlying investment funds. In addition, the securities of these investment funds may trade at a premium over their net asset value. Regulation S Securities and Fund Subsidiaries. A Fund may invest, through a wholly-owned subsidiary organized under the laws of the Cayman Islands (each a “Cayman Subsidiary”), in securities of U.S. and non-U.S. issuers that are issued outside the United States without registration with the SEC pursuant to Regulation S under the Securities Act of 1933, as amended. Because Regulation S Securities are subject to legal or contractual restrictions on resale, these securities may be considered illiquid. Although Regulation S Securities may be resold in privately negotiated transactions, the price realized from these sales could be less than the price paid by a Fund. Additionally, companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities were publicly traded in the United States. Cayman Subsidiaries have been established for the Dodge & Cox Global Stock Fund and the Dodge & Cox International Stock Fund and may be established for other Funds. Each Fund’s Cayman Subsidiary is overseen by its own directors; the sole shareholder of such a subsidiary is the related Fund. Such subsidiaries are neither investment companies registered under the 1940 Act nor subject to the investor protections prescribed thereunder. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of a Fund and/or its Cayman Subsidiary to operate as described above.

Investing in Debt Obligations The Funds may invest in debt securities which hold the prospect of contributing to the achievement of a Fund’s objectives. Yields on short, intermediate, and long-term securities are dependent on a variety of factors, including the general conditions of the money and bond markets, the size of a particular offering, the maturity of the obligation, and the credit quality and rating of the issue. Debt securities with longer maturities tend to have higher yields and are generally subject to potentially greater capital appreciation and depreciation than obligations with shorter maturities and lower yields. The market prices of debt securities usually vary, depending upon available yields. An increase in interest rates will generally reduce the value of portfolio investments, and a decline in interest rates will generally increase the value of portfolio investments. Interest rate changes can be sudden and unpredictable, and a wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions). Current interest rates are at or near historic lows, and future increases in interest rates could result in less liquidity and greater volatility of debt securities. As a result, debt investors currently face a heightened level of interest rate risk, especially as the Federal Reserve Board has begun, and may continue, to raise interest rates. To the extent the Federal Reserve Board continues to raise interest rates, there is a risk that rates across the financial system may rise. In addition, new regulations applicable to and changing business practices of financial intermediaries that make markets in debt securities may result in those financial intermediaries restricting their market-making activities for certain debt securities, which may reduce the liquidity and increase the volatility for such debt securities. The ability of a Fund to achieve its investment objective(s) depends on the continuing ability of the issuers of the debt securities in which a Fund invests to meet their obligations for the payment of interest and principal when due. Since investors generally perceive that there are greater risks associated with investment in lower-quality securities, the yields from such securities normally exceed those obtainable from higher-quality securities. However, the value of lower-rated securities generally will fluctuate more widely than higher-quality securities. Lower-quality investments entail a higher risk of default—that is, the nonpayment of interest and principal by the issuer—than higher-quality investments. After purchase by a Fund, a debt security may cease to be rated or its rating may be reduced below the minimum required for purchase by a Fund. Neither event will require a Fund to sell such a security (though Dodge & Cox will consider such event in its determination of whether a Fund should continue to hold the security). To the extent that the ratings given by Moody’s Investor Service (Moody’s), Standard & Poor’s Ratings Group (S&P), or Fitch Ratings (Fitch) or another nationally recognized statistical ratings organization (NRSRO) may change as a result of changes in such organizations or their rating

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systems, the Funds will attempt to use comparable ratings as standards for investments in accordance with the investment policies contained in the Prospectus.

Hybrid Securities Each Fund may invest in hybrid securities, which generally combine both debt and equity characteristics. Types of hybrid securities include, without limitation, preferred stock, convertible securities, warrants, and subordinated obligations that have regulatory capital or rating agency capital contingencies (“capital securities”). Typically, preferred stock has a specified dividend and ranks after an issuer’s debt obligations but before common stocks in its claim on income for dividend payments and on assets should the company become subject to reorganization or liquidation. Preferred stock may be perpetual (i.e., have no maturity date), non-cumulative, or have a long-dated maturity. The Funds may also invest in debt or preferred equity securities convertible into or exchangeable for equity securities. Traditionally, convertible securities have paid dividends or interest at rates higher than common stock dividend rates but lower than nonconvertible securities. They generally participate in the appreciation or depreciation of the underlying common stock into which they are convertible, but to a lesser degree than the common stock itself. Warrants are options to buy a stated number of shares of common stock at a specified price any time during the life of the warrants (generally two or more years). They can be highly volatile and may have no voting rights, pay no dividends, and have no rights with respect to the assets of the entity issuing them. Other types of securities that are or may become available, are similar to warrants, and the Funds may invest in these securities. Capital securities are offered at a par value and generally pay a fixed rate on a periodic basis, combining the features of corporate bonds and preferred stock. Hybrid securities are subject to many of the same risks that apply to equity and debt securities, but also have unique risk characteristics that depend on the type of hybrid security. Hybrid securities may include features such as deferrable and non-cumulative coupon payments, a long-dated maturity (or absence of maturity) and may include loss absorption provisions. This is particularly true in the financials sector. For example, a hybrid security may have a provision where the liquidation value of the security may be reduced in whole or in part upon a regulatory action or a reduction in the issuer’s capital levels to below a specified threshold. This may occur, for example, in the event that business losses have eroded the issuer’s capital base to a substantial extent. The downward adjustment to liquidation value may occur automatically without the need for a bankruptcy proceeding. Another example is contingent convertible instruments ("CoCo-Bonds"), which convert automatically into equity at a specified price upon the occurrence of a specified trigger event. Depending on the trigger event, these subordinated obligations are either converted into shares or sustain a partial or total loss in principal value.

U.S. Government Obligations A portion of each Fund may be invested in obligations issued or guaranteed by the U.S. government, its agencies, or GSEs. Some of the obligations purchased by a Fund are backed by the full faith and credit of the U.S. government and are guaranteed as to both principal and interest by the U.S. Treasury. Examples of these include direct obligations of the U.S. Treasury, such as U.S. Treasury bills, notes and bonds, and indirect obligations of the U.S. Treasury, such as obligations of the Government National Mortgage Association, the Small Business Administration, the Maritime Administration, the Farmers Home Administration and the Department of Veterans Affairs. While the obligations of many of the agencies of the U.S. government are not direct obligations of the U.S. Treasury, they are generally backed indirectly by the U.S. government. Some of the agencies are indirectly backed by their right to borrow from the U.S. government, such as the Federal Financing Bank and the U.S. Postal Service. Other agencies and GSEs have historically been supported solely by the credit of the agency or GSE itself, but are given additional support due to the U.S. Treasury’s authority to purchase their outstanding debt obligations. GSEs include, among others, the Federal Home Loan Banks, the Federal Farm Credit Banks, Fannie Mae, and Freddie Mac. In September 2008, the U.S. Treasury placed Fannie Mae and Freddie Mac into conservatorship and has since increased its support of these two GSEs through substantial capital commitments and enhanced liquidity measures, which include a line of credit. The U.S. Treasury also extended a line of credit

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to the Federal Home Loan Banks. No assurance can be given that the U.S. government will provide continued support to GSEs, and these entities’ securities are neither issued nor guaranteed by the U.S. Treasury. Furthermore, with respect to the U.S. government securities purchased by a Fund, guarantees as to the timely payment of principal and interest do not extend to the value or yield of these securities nor do they extend to the value of a Fund’s shares. A Fund may invest in these securities if it believes they offer an expected return commensurate with the risks assumed.

Municipal Bonds Municipal bonds are debt obligations issued by states, municipalities, and other political subdivisions, agencies, authorities, and instrumentalities of states and multi-state agencies or authorities (collectively, municipalities), the interest on which may be exempt from federal and/or state income tax. Municipal bonds include securities from a variety of sectors, each of which has unique risks. Municipal bonds include, but are not limited to, general obligation bonds, limited obligation bonds, and revenue bonds. General obligation bonds are secured by the issuer’s pledge of its full faith, credit, and taxing power for the payment of principal and interest. Limited obligation bonds are payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise or other specific revenue source. Revenue or special tax bonds are payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise or other tax, but not from general tax revenues. Revenue bonds involve the credit risk of the underlying project or enterprise (or its corporate user) rather than the credit risk of the issuing municipality. Like other debt securities, municipal bonds are subject to credit risk, interest rate risk and call risk. Obligations of issuers of municipal bonds are generally subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors. However, the obligations of certain issuers may not be enforceable through the exercise of traditional creditors’ rights. The reorganization under the federal bankruptcy laws of a municipal bond issuer or payment obligor bonds may result in, among other things, the municipal bonds being cancelled without repayment, repaid only in part or delays in collecting principal and interest. In addition, lawmakers may seek to extend the time for payment of principal or interest, or both, or to impose other constraints upon enforcement of such obligations. Litigation and natural disasters, as well as adverse economic, business, legal, or political developments may introduce uncertainties in the market for municipal bonds or materially affect the credit risk of particular bonds. Municipal bonds may be less liquid than other types of bonds, and there may be less publicly available information about the financial condition of municipal issuers than for issuers of other securities. Therefore, the investment performance of a Fund investing in municipal bonds may be more dependent on the analytical abilities of Dodge & Cox than if the Fund held other types of investments, such as stocks or corporate bonds. The market for municipal bonds also tends to be less well-developed or liquid than many other securities markets, which may adversely affect a Fund’s ability to value municipal bonds or sell such bonds at attractive prices. Some U.S. municipal bonds are tax-exempt, which means that income from those bonds is non-taxable. A significant restructuring of U.S. federal income tax rates or even serious discussion on the topic in Congress could cause municipal bond prices to fall. The demand for municipal bonds is strongly influenced by the value of tax-exempt income to investors. Lower income tax rates could reduce the advantage of owning municipal bonds. In the event of a default in the payment of interest and/or repayment of principal, a Fund may enforce its rights by taking possession of, and managing, the assets securing the issuer’s obligations on such securities. These actions may increase a Fund’s operating expenses, and any income derived from the Fund’s ownership or operation of such assets may not be tax-exempt.

Covered Bonds Covered bonds are debt securities issued by banks and are secured by collateral, typically mortgages. In the event of a default, if the underlying collateral is insufficient to repay amounts owing in respect of the bonds, bondholders also have an unsecured claim against the issuing bank. The value of a covered bond is affected by factors similar to other types of mortgage-backed securities, as well as to the credit risk of its issuer.

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Inflation-Indexed Bonds Inflation-indexed bonds are debt securities the principal value of which is periodically adjusted according to the rate of inflation. The actual (inflation-adjusted) interest rate on these bonds is fixed at issuance at a rate generally lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value which is adjusted for inflation as measured by changes in a reference index. For example, the reference index for U.S. Treasury inflation-indexed bonds is the Consumer Price Index (CPI). The CPI is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. Generally, the securities will pay interest on a periodic basis, equal to a fixed percentage of the inflation-adjusted principal amount. If the value of the reference index falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the originally issued principal amount upon maturity is guaranteed by the issuer. However, the current market value of the bonds is not guaranteed and will fluctuate. A Fund may also invest in other inflation-related bonds, which may or may not provide a similar guarantee. If such a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal. There can be no assurance that a reference index, including the CPI, will accurately measure the real rate of inflation in the prices of goods and services in any particular country. The U.S. Treasury began issuing inflation-indexed bonds (commonly referred to as “TIPS” or “Treasury Inflation-Protected Securities”) in 1997. There can be no assurance that the U.S. Treasury or any other issuer will issue any particular amount of inflation-indexed bonds. Any increase in the principal amount of an inflation-indexed bond is taxable as ordinary income, even though investors do not receive their principal until maturity.

Zero Coupon, Deferred Interest, and Pay-in-Kind Securities Zero coupon and deferred interest securities are debt securities that are issued at a price lower than their face value and do not make interest payments during the life of the bonds. Such securities usually trade at a deep discount from their face or par value. Pay-in-kind (PIK) securities may be debt obligations or preferred shares that allow the issuer to pay interest or dividends on such obligations either in cash or in the form of additional securities. PIK securities can be either senior or subordinated debt and generally trade flat (i.e., without accrued interest). The trading price of PIK debt securities generally reflects the market value of the underlying debt plus an amount representing accrued interest since the last interest payment. Zero coupon bonds, deferred interest bonds, and PIK securities are designed to give issuers flexibility in managing cash flow. These types of securities are subject to greater fluctuations in market value in response to changing interest rates than debt obligations of comparable maturities and credit quality that make current distributions of interest.

High-Yield Bonds A Fund may hold bonds rated below investment grade, commonly referred to as “high-yield” or “junk” bonds. High-yield bonds are regarded as predominantly speculative with respect to the issuer’s continuing ability to meet principal and interest payments and may be more volatile than other types of securities. Such bonds are often issued by smaller, less creditworthy issuers or by highly levered (indebted) issuers, which are generally less able than more financially stable companies to make scheduled principal and interest payments. Because investment in lower quality bonds involves greater investment risk, to the extent a Fund holds such bonds, achievement of its investment objective(s) will be more dependent on Dodge & Cox’s credit analysis than would be the case if a Fund was investing in higher-quality bonds. High-yield bonds may be more susceptible to real or perceived adverse economic conditions than investment-grade bonds. An actual or anticipated economic downturn or individual corporate developments could adversely affect the market for these securities and reduce a Fund’s ability to sell these securities at an advantageous time or price. An economic downturn could also cause a decline in high-yield bond prices by reducing the ability of highly leveraged issuers to make principal and interest payments on their debt securities. A high yield bond may lose significant market value prior to or even in the absence of a default. Issuers of high-yield bonds may have the right to “call” or redeem the issue prior to maturity, which could result in a Fund’s having to reinvest the proceeds in other securities that may pay lower interest rates.

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The secondary trading market for high-yield bonds may be less liquid than the market for higher-grade bonds, which can adversely affect the ability of a Fund to dispose of its portfolio securities. High yield bonds may be less liquid than investment-grade debt securities. Consequently, transactions in high-yield bonds may involve greater costs than transactions in more actively traded securities. A lack of publicly available information, irregular trading activity and wide bid/ask spreads, among other factors, may make high-yield bonds more difficult than other types of securities to sell at an advantageous time or price. Bonds for which there is only a “thin” market can be more difficult to value inasmuch as objective pricing data may be less available and judgment may play a greater role in the valuation process. A Fund’s high yield bonds may include distressed bonds, which may present a high risk of default or be in default at the time they are purchased. Distressed securities are speculative and involve risks additional to those associated with investing in other high yield bonds, including a heightened risk that interest payments may not be made on a current basis, or that principal will not be repaid in full. A Fund could incur significant expenses to the extent it is required to negotiate new terms with the issuer of a distressed bond or seek recovery upon a default in respect of a distressed bond. In any reorganization or liquidation proceeding related to a defaulted security, a Fund could lose its entire investment or could be required to accept cash or securities with a value substantially less than its original investment.

Restricted Securities Each Fund may invest in restricted securities (including privately placed debt and preferred equity securities) and other securities without readily available market quotations. Restricted securities, including Rule 144A securities, will be considered illiquid unless they have been specifically determined to be liquid under procedures adopted by the Funds’ Board of Trustees, taking into account factors such as the frequency and volume of trading, the commitment of dealers to make markets, and the availability of qualified investors, all of which can change from time to time. Restricted securities may be sold only in privately negotiated transactions or in a public offering with respect to which a registration statement is in effect under the Securities Act of 1933. Where registration is required, a Fund may be obligated to pay all or a part of the registration expenses and a considerable period may elapse between the time of the decision to sell and the time the Fund may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, a Fund might obtain a less favorable price than prevailed when it decided to sell. Restricted securities may be priced at fair value as determined in good faith under the supervision of the Trust’s Board of Trustees.

Real Estate Investment Trust (REIT) Investments The Funds may purchase equity or debt securities issued by REITs and, in the case of the Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox Global Bond Fund, securities of foreign issuers with a similar structure to domestic REITs. A REIT is a company that primarily owns, operates, and sometimes finances income-producing real estate properties. To qualify as a REIT, a company must meet certain requirements imposed by the Internal Revenue Code. If met, REITs are exempted from paying federal (and often state) taxes on income distributed to shareholders. Most REITs are structured as an Umbrella Partnership (UPREIT), wherein the REIT is the general partner and majority owner of the Operating Limited Partnership (LP). Equity shares of most REITs are traded on major stock exchanges. REIT debt securities are typically issued by the Operating LP and are included in major indices. The value and performance of REIT securities depend upon the underlying real estate-related assets. The Funds’ investments in REITs are therefore subject to certain risks related to the skill of management and the real estate industry in general. These risks include, among others: changes in general and local economic conditions; possible declines in the value of real estate; the possible lack of availability of money for loans to purchase real estate; possible constraints in available cash flow to cover operating expenses, principal, interest and shareholder dividends; overbuilding in particular areas; prolonged vacancies in rental properties; property taxes; changes in tax laws relating to dividends and laws related to the use of real estate in certain areas; costs resulting from the clean-up of, and liability to, third parties resulting from, environmental problems; the costs associated with damage to real estate resulting from floods, earthquakes, terrorist attacks or other material disasters that may not be covered by insurance; and limitations on, and variations in, rents and changes in interest rates.

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Limited Partnership Investments The Funds may purchase debt securities issued by master limited partnerships (MLPs) or limited partnerships (LPs). An MLP is a business enterprise structured as a publicly-traded state law limited partnership, limited liability corporation, or state law trust. MLP debt securities may be issued by an MLP directly or by an operating subsidiary of the MLP. An LP is similar, except that its equity is not traded publicly. The MLP structure is common in the U.S. midstream energy industry, which focuses on energy infrastructure (e.g., oil and gas pipelines and storage). The risks associate with MLP and LP are very similar to those associated with other types of corporate debt, including credit risk, interest rate risk, and liquidity risk, as well as any risks associated with the business operations of the issuer.

Structured Investments Included among the issuers of debt or equity securities in which a Fund may invest are special purpose entities organized and operated solely for the purpose of restructuring the investment characteristics of various securities. These entities are typically organized by investment banking firms which receive fees in connection with establishing each entity and arranging for the placement of its securities. This type of restructuring often involves the deposit with or purchase by an entity, such as a corporation or trust, of specified instruments and the issuance by that entity of one or more classes of securities (“structured investments”) backed by, or representing interests in, the underlying instruments. Underlying instruments may include equity or debt securities and/or derivative instruments that create synthetic exposure to an interest rate, an equity or debt security, an index or another financial instrument. Unless a structured investment includes some form of credit enhancement, such as a guarantee by a third party, its credit risk will generally be at least as great as that of its underlying instruments (including, to the extent its underlying instruments include over-the-counter derivatives, the credit risk of the counterparty to those derivatives); the extent of the payments made with respect to structured investments usually depends on the extent of the cash flow on the underlying instruments. Some structured investment vehicles permit cash flows and credit risk to be apportioned among multiple levels or “tranches” of securities with different investment characteristics such as varying maturities, payment priorities, or interest rate provisions. A Fund could purchase senior or subordinated structured investments. Subordinated structured investments typically have higher yields and present greater risks than unsubordinated structured investments. Purchasing subordinated structured investments may have an economic effect similar to borrowing against the related securities. Structured investments are complex and may involve some of the same risks as those presented by derivatives, including the risk that the performance of a structured instrument may not correlate with that of its underlying instruments to the extent expected. Structured investments are potentially more volatile and carry liquidity risk since the instruments are often “customized” to meet the portfolio needs of a particular investor, and therefore, the number of investors that are willing and able to buy such instruments in the secondary market is likely to be smaller than that for more traditional debt securities. In some cases, the only buyer for structured investments will be the dealer that organized the instrument, and that dealer will typically have no obligation to repurchase the structured investment. Structured investments may entail significant risks that are not associated with their underlying assets. The legal and/or regulatory treatment of structured investments may be unclear and may differ from that of its underlying instruments. Certain issuers of structured investments may be deemed to be “investment companies” as defined in the 1940 Act. As a result, the Funds’ investment in these structured investments may be limited by the restrictions contained in the 1940 Act. Structured investments are typically sold in private placement transactions, and there currently is no active trading market for structured investments. To the extent such investments are illiquid, they will be subject to the Funds’ restrictions on investments in illiquid securities.

Mortgage Pass-Through Securities Mortgage pass-through securities are guaranteed by an agency of the U.S. government or GSE, or are issued by a private entity. These securities represent ownership in “pools” of mortgage loans and are called “pass-throughs” because principal and interest payments are passed through to security holders monthly. The security holder may also receive unscheduled principal payments representing prepayments of the underlying mortgage loans. When

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a Fund reinvests the principal and interest payments, it may receive a rate of interest which is either higher or lower than the rate on the existing mortgage. During periods of declining interest rates there is increased likelihood that mortgage securities may be prepaid more quickly than assumed rates. Such prepayment would most likely be reinvested at lower rates. On the other hand, if the pass-through securities had been purchased at a discount, then such prepayments of principal would benefit the portfolio. Conversely, in a rising interest rate environment, mortgage securities may be prepaid at a rate slower than expected. In this case, the current cash flow of the bond generally decreases. A slower prepayment rate effectively lengthens the time period the security will be outstanding and may adversely affect the price and volatility of the security.

Collateralized Mortgage Obligations Collateralized mortgage obligations (CMOs) are private entity- or U.S. government agency- or GSE-issued multi-class bonds that are collateralized by U.S. government agency- or GSE-guaranteed mortgage pass-through securities. A CMO is created when the issuer purchases a collection of mortgage pass-through securities (collateral) and places these securities in a trust, which is administered by an independent trustee. Next, the issuer typically issues multiple classes, or “tranches” of bonds, the debt service of which is provided by the principal and interest payments from the collateral in the trust. Each of these tranches is valued and traded separately based on its distinct cash flow characteristics. A real estate mortgage investment conduit (REMIC) is a CMO that qualifies for special federal income tax treatment under the Internal Revenue Code and invests in certain mortgages principally secured by interests in real property and other permitted investments. Although the mortgage pass-through collateral typically has monthly payments of principal and interest, CMO bonds may have monthly, quarterly or semiannual payments of principal and interest, depending on the issuer. Payments received from the collateral are reinvested in short-term debt securities by the trustee between payment dates on the CMO. On the CMO payment dates, the principal and interest payments received from the collateral plus reinvestment income, are applied first to pay interest on the bonds and then to repay principal. In the simplest form, the bonds are retired sequentially; the first payments of principal are applied to retire the first tranche, while all other tranches receive interest only. Only after the first tranche is retired do principal payments commence on the second tranche. The process continues in this sequence until all tranches are retired. At issuance, each CMO tranche has a stated final maturity date. The stated final maturity date is the date by which the bonds would be completely retired assuming standard amortization of principal but no prepayments of principal on the underlying collateral. However, since it is likely that the collateral will have principal prepayments, the CMO bonds are actually valued on the basis of an assumed prepayment rate. The assumed prepayment rate is used in the calculation of the securities’ weighted-average life, a measure of the securities’ cash flow characteristics. Dodge & Cox will purchase the tranche with the weighted-average life and cash flow characteristics that it believes will contribute to achieving the objectives of a Fund. CMOs are subject to risks relating to the underlying mortgage pass-through securities; the structure of a CMO magnifies those risks. In a falling interest rate environment, the mortgage securities may be prepaid faster than the assumed rate. In this scenario, the prepayments of principal will generally be reinvested at a rate which is lower than the rate that the security holder is currently receiving. Conversely, in a rising interest rate environment, the mortgage collateral may be prepaid at a rate which is slower than the assumed rates. In this case, the current cash flow of the bond generally decreases. A reduced prepayment rate effectively lengthens the average life of the security and may adversely affect the price and volatility of the security.

Credit-Linked Notes Credit-linked notes (CLNs) are typically set-up as a “pass-through” note structures created by a broker or bank as an alternative investment for funds or other purchasers to directly buying a bond, group of bonds, or portfolio of credit default swaps. CLNs are typically issued at par, with a one-to-one relationship with the notional value to the underlying assets. The performance of the CLN, however, including maturity value, is linked to the performance of the specified underlying assets as well as that of the issuing entity (which may be a special purpose entity as described under “Structured Investments” above. In addition to the risk of loss of its principal

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investment, the Fund bears the risk that the issuer of the CLN will default or become bankrupt. In such an event, the Fund may have difficulty being repaid or fail to be repaid the principal amount of its investment. A downgrade or impairment to the credit rating of the issuer or the underlying assets will also likely negatively impact the price of the CLN. A CLN is typically structured as a limited recourse, unsecured obligation of the issuer of such security such that the security will usually be the obligation solely of the issuer and will not be an obligation or responsibility of any other person, including the issuer of the underlying bond(s). A CLN typically does not pass through voting or other governance rights in respect of the underlying bond(s). Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices of CLNs. In certain cases, a market price for a CLN may not be available or may not be reliable, and the Fund could experience difficulty in selling such security at a price the investment manager believes is fair.

When-Issued, Forward-Commitment, and Delayed-Delivery Transactions When-issued, forward-commitment, and delayed-delivery transactions involve a commitment to purchase or sell specific securities at a predetermined price or yield in which payment and delivery take place after the customary settlement period for that type of security. When a Fund purchases securities for future settlement, it will earmark liquid assets with a value at least as great as the purchase price of the security until settlement. The value of the security is reflected in a Fund’s net asset value as of the purchase date; however, no income accrues to a Fund from these securities prior to their delivery to the Fund. A Fund may renegotiate a when-issued, forward-commitment or delayed-delivery transaction and may sell the securities prior to settlement date, which may result in a gain or loss to the Fund. The purchase of securities in this type of transaction increases a Fund’s overall investment exposure and involves a risk of loss if the value of the securities declines prior to settlement. A purchasing Fund assumes the rights and risks of ownership, including the risks of price and yield fluctuations and the risk that the security will not be issued as anticipated. The sale of securities in this type of transaction involves a risk of loss if the value of the securities increases prior to settlement or if the other party to the transaction fails to pay for the securities.

Standby Commitment Agreements A standby commitment agreement obligates one party, for a set period of time, to purchase a certain amount of a security that may be issued and sold to that party at the option of the issuer or its underwriter at a predetermined price. The purchasing party receives a commitment fee in exchange for its promise to purchase the security, whether or not it is eventually required to purchase the security. The value of the securities when they are issued may be more or less than the predetermined price.

Variable and Floating Rate Securities These securities have interest rates that are reset at periodic intervals, usually by reference to some interest rate index or market interest rate. Some of these securities are backed by pools of mortgage loans. Although the rate adjustment feature of these securities may act as a buffer to reduce sharp changes in their value, they are still subject to changes in value based on changes in market interest rates or changes in the issuer’s creditworthiness. Because the interest rate is reset only periodically, changes in the interest rate on these securities may lag behind changes in prevailing market interest rates. Also, some of these securities (or the underlying mortgages) are subject to caps or floors that limit the maximum change in the interest rate during a specified period or over the life of the security.

Bank Loans The Funds may invest in bank loans of any seniority. Investing in bank loans involves risks that are additional to and different from those relating to bonds and other types of debt securities. There is less publicly available, reliable information about most bank loans than is the case for many other types of debt instruments. In certain circumstances, these loans may not be deemed to be securities and bank loans are not subject to many of the rules governing the securities markets, including disclosure requirements. As a result, bank loan investors may not have the protection of the anti-fraud provisions of the federal securities laws, and must rely instead on the contractual provisions in the loan agreement and applicable common-law fraud protections. Traditionally, borrowers under bank loans make non-public information available to their lenders. However, as the universe of bank loan market participants has expanded beyond traditional lenders to include dealers, funds, and other investors who are active in the public securities markets, some participants

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choose not to receive such non-public information and make investment decisions based solely on public information about the borrower. If a Fund purchases a bank loan and elects not to receive non-public information with respect to the loan, it may forego information that would be relevant to its investment decisions. An economic downturn generally leads to a higher non-payment rate for bank loans, and a loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a loan may decline in value or become illiquid, which would adversely affect the loan’s value. In the event of the bankruptcy of a borrower, a Fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral securing a loan. No active trading market may exist for certain loans, which may impair the ability of a Fund to realize full value in the event of the need to sell a loan and which may make it difficult to value loans. Adverse market conditions may impair the liquidity of some actively traded loans. To the extent that a secondary market does exist for certain loans, the market may be subject to irregular trading activity and wide bid/ask spreads, which may result in limited liquidity and pricing transparency. In addition, loans may be subject to restrictions on sales or assignment and generally are subject to extended settlement periods that may be longer than seven days. A Fund may not be able to unilaterally enforce all rights and remedies under a bank loan and with regard to any associated collateral. If a bank loan is acquired through a participation, a Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, and the Fund may not directly benefit from the collateral supporting the debt obligation in which it has purchased the participation. As a result, the Fund will be exposed to the credit risk of both the borrower and the institution selling the participation. The Fund may invest in second-lien loans, which are subordinated to claims of senior secured creditors. Because second-lien loans are subordinated or unsecured and thus lower in priority of payment to senior loans, they are typically lower rated and subject to the additional risk that the cash flow of the borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the borrower. Second-lien loans generally have greater price volatility than senior loans and may be less liquid.

Investment Companies The Funds can purchase the securities of other investment companies, including money market funds, to the extent permitted by the 1940 Act. If a Fund invests in such investment companies, the Fund’s shareholders will bear not only their proportionate share of the expenses of the Fund (including operating expenses and the fees of the investment manager), but also will bear indirectly similar expenses of the underlying investment companies. In addition, the securities of certain investment companies may trade at a premium over their net asset value.

Derivatives

CFTC For Funds that may utilize futures contracts, forwards contracts, and certain swap agreements, a notice has been filed with the National Futures Association claiming an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act, and the rules of the Commodity Futures Trading Commission (“CFTC”) promulgated thereunder. Accordingly, none of the Funds is subject to registration or regulation as a commodity pool operator. The Funds are not intended to be and should not be used as vehicles to invest in commodities markets.

Asset Coverage Requirements Each Fund is required pursuant to federal securities laws to segregate or “earmark” liquid assets or establish offsetting positions to cover its open positions with respect to derivative instruments requiring future payments or deliveries, including futures contracts, currency forwards, swap agreements and options contracts. If a Fund is contractually required to “physically settle” a position (i.e., settle through the delivery of the asset underlying the position), it will cover its open position by earmarking liquid assets equal to or greater than the contract’s full, notional amount. If a Fund is permitted to “cash settle” a position, it may earmark liquid assets in an amount at least equal to the Fund’s marked-to-market (net) obligation in respect of the position (i.e., the amount the Fund would owe, if any, if the position were to settle or terminate on that day), which may change from day to day, rather than the full notional amount of the position. By setting aside assets equal to only its net obligation in

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respect of cash-settled positions, a Fund would have the ability to use derivatives to a greater extent than if the Fund set aside assets equal to the full notional value of those positions.

Futures General. A futures contract is an agreement providing for the sale by one party and purchase by another at a specified future time and price of a specified quantity of a referenced financial instrument, such as a security, interest rate, currency, or index level. Futures contracts are standardized, are traded through a national (or foreign) exchange, and are cleared through an affiliate of the exchange that acts as the buyer to every seller and the seller to every buyer. Some futures contracts provide for physical settlement through actual delivery or receipt of the underlying security or other financial instrument, while others provide for cash settlement based on the difference in the price of the reference financial instrument on the last day of the contract relative to the price at which the contract was entered into. In practice, even futures contracts that are physically settled by their terms are typically cash settled or closed out prior to their maturity dates. Closing out a futures contract may be effected by entering into an offsetting transaction for the same deliverable with the same maturity date. If a Fund enters into an offsetting sale transaction at a price that exceeds the purchase price of the original transaction, the Fund will realize a gain, and if the offsetting sale price is less than the original transaction’s purchase price, the Fund will realize a loss. Funds access the futures markets through a clearing broker (known as a “futures commission merchant” or FCM) that submits the Funds’ trades to the relevant clearing facilities, holds collateral required by the exchange and clearing facilities and transmits payments between the Funds and the relevant clearing facilities. When a Fund purchases or sells a futures contract, the Fund is required to deposit in a segregated account with its FCM a specified amount of liquid assets (“initial margin”). The amount of margin required for a particular futures contract is set by the exchange on which the contract is traded and may be modified during the term of the contract. Initial margin is in the nature of a performance bond or good faith deposit on the futures contract that is returned to a Fund upon termination of the contract, assuming all contractual obligations have been satisfied. Futures contracts are customarily purchased and sold on margins that may range upward from less than 5% of the notional value of the contract being traded. Each day a Fund with open futures positions pays or receives cash, called “variation margin,” equal to the daily change in value of each futures contract. This process is known as “marking to market.” Variation margin does not represent a borrowing or loan by the Fund but is instead a settlement of the amount that would be owed or owing if the futures contract expired on that day. In computing its net asset value, the Fund will mark to market its open futures positions. FCMs hold all customer margin in a commingled segregated account. A Fund could lose margin payments posted to its FCM if the FCM fails to segregate and maintain customer margin in accordance with regulatory requirements or if the FCM becomes insolvent or subject to bankruptcy proceedings and there is a shortfall in the commingled account. In that event, a Fund may be entitled to the return of its margin only in proportion to the amount owed to the FCM’s other customers.

Swaps A swap transaction is an agreement obligating two counterparties to make a series of payments on one or more future dates based upon applying changes in specified prices or rates (e.g. interest rates or currency exchange rates) to a specified “notional” amount. The notional amount is used to calculate the payment stream, but is generally not exchanged. Swap payments are typically determined on a “net” basis (i.e., by netting the two payment streams to determine a single amount payable by one counterparty to the other). Traditionally, swap transactions were entered into under bilateral agreements in which at least one counterparty was a dealer (typically a broker-dealer or a large commercial or investment bank). Counterparties would enter into an individually negotiated master agreement (usually based on a market-standard form published by the International Swaps and Derivatives Association (ISDA)) covering all swap transactions between the two counterparties and document each trade entered into under the master agreement on a supplemental “confirmation”, which might also be negotiated. Collateral terms (if any) were also negotiated under the master agreement; collateral posted by a counterparty to a Fund was held by the Fund directly, while

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collateral posted by a Fund in respect of a transaction was held in a segregated custodial account for the counterparty’s benefit. Swaps entered into on a bilateral basis are subject to counterparty credit risk (i.e., the risk a counterparty will not make required payments) and to dispute risk (i.e., the risk that two counterparties will disagree on the amount of a payment to be made, the value of a transaction, or the proper interpretation of a contractual term). More recently, regulatory changes and market pressure to increase liquidity and decrease credit risk in the swaps markets have contributed to the development of swap execution facilities similar to exchanges and to swap clearing facilities on which a central clearing counterparty is interposed between the two swap counterparties, more like the structure of the futures market. Swap execution and clearing facilities are only available for certain types of liquid swaps with standardized terms, based on regulatory mandates and market demand. The CFTC has mandated that certain types of swaps be traded on swap execution facilities and/or cleared, while other types of swaps may be (but are not required to be) traded on swap execution facilities and/or cleared. Some types of swaps may be entered into through swap execution facilities, but not cleared, and some may be cleared, but are not offered for trading on any swap execution facility. If a swap is cleared, a Fund and its counterparty each submit the transaction to a central clearing facility. The Funds must submit swaps for clearing through an FCM. Initial and daily margin for a cleared swap is determined by the clearing facility and transferred from and to a Fund through its FCM. Clearing reduces the risk of a particular counterparty’s default, but may create systemic risk in the event of a clearing facility failure. A default or failure by the clearing facility or an FCM may expose the Fund to losses, increase its costs, or prevent the Fund from entering or exiting swap positions, accessing collateral or margin, or fully implementing its investment strategies. It is likely that in the future the CFTC and other regulators will require additional types of swap transactions to be executed through swap trading facilities and/or cleared through central clearing facilities. If a Fund wishes to terminate its exposure to a cleared swap, it must enter into an off-setting transaction. An over-the-counter swap may be terminated by negotiating a price with a Fund’s counterparty, based on the swap’s market value, or by entering into an off-setting transaction with the same counterparty. Over-the-counter swaps may be assigned from one dealer counterparty to another at a Fund’s request, contingent on the consent of both dealer counterparties (a “novation”). If both the original and proposed new dealer counterparty agree to a novation, they will agree on a price to be paid by one dealer to the other based on the market value of the swap. Interest Rate Derivatives Interest Rate Futures. An interest rate futures contract involves an obligation to purchase or sell an asset (or make payments based upon changes in the level of a specified interest rate) at a specified future time and price (or level). The underlying asset could be a specified interest rate (e.g., LIBOR or EURIBOR) or a particular government bond, including U.S. or non-U.S. government debt.

A Fund may enter into interest rate futures contracts for a variety of purposes in connection with the management of the interest rate exposure of its portfolio. A Fund’s use of such contracts may include, but is not limited to, the following: Adjusting the overall interest rate exposure, or “duration,” of the portfolio; Changing the exposure of the portfolio to different parts of the yield curve; Offsetting the impact of special situations that impact specific securities (e.g. tender offers); Maintaining portfolio interest rate exposure as large contributions or withdrawals occur.

If a Fund anticipates that interest rates for a portfolio investment with a particular maturity or a specified reference rate (e.g., 1-Month LIBOR) for a particular term will rise, the Fund may sell an interest rate or Treasury futures contract to hedge against the decline in the value of the investment. Conversely, if a Fund anticipates that interest rates will fall, the Fund may purchase an interest rate or Treasury futures contract to increase the Fund’s exposure to interest rates. A Fund is not required to enter into such transactions and there is no assurance that the Fund will use such strategies or that the Fund will be successful in managing interest rate exposure if such strategies are used. Dodge & Cox could be incorrect in its expectations as to the direction or extent of interest rate movements or the time span within which the movements take place.

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Interest Rate Swaps. Interest rate swaps involve the exchange by two counterparties of periodic payments calculated by reference to specified interest rates applied to a notional amount (most commonly an exchange of payments based on a floating interest rate against payments based on a fixed interest rate). Most commonly-used fixed-to-floating interest rate swaps are required to be executed through a swap execution facility and cleared through a central clearing facility. Certain other types of interest rate swaps are required to be cleared (but not required to be executed on a swap execution facility). Some more exotic types of interest rate swaps are traded over-the counter. Interest Rate Floors, Caps, and Collars. The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index exceeds a predetermined interest rate, to receive payment of interest on a notional principal amount from the party selling such interest rate cap. The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling the interest rate floor. An interest rate collar is the combination of a cap and a floor that preserves a certain return within a predetermined range of interest rates. Currency Derivatives A Fund may use currency derivatives for a variety of risk management and investment purposes in connection with the management of its foreign currency exposure, including the following:

A Fund may enter into a currency derivative in connection with its purchase or sale of a security denominated in a non-U.S. currency in order to “lock in” the U.S. dollar price of the security and avoid possible losses resulting from a change in the relevant foreign exchange rate between the trade date and settlement date for the security. A Fund might enter into a currency derivative to hedge its non-U.S. currency exposure against anticipated changes in foreign exchange rates. Such exposure could be created by non-U.S.-denominated securities or by depositary receipts backed by non-U.S. denominated securities. A Fund may also be exposed indirectly to currency risk through investments in securities of issuers exposed to non-U.S. currencies as a result of their business activities or through their investment in non-U.S. companies. In certain cases, a Fund might hedge non-U.S. currency exposure by entering a currency derivative for a currency that is related to or is a proxy for the currency to which the Fund is actually exposed. The Dodge & Cox Global Bond Fund may also take long or short speculative positions in a currency even if the Fund is not otherwise exposed to that currency. Predicting currency movements is difficult and estimates of a Fund’s non-U.S. currency exposure (particularly indirect exposure) may not be precise. One risk of using of currency derivatives to try to protect against the price volatility of other portfolio investments is that changes in currency exchange rates or in the value of the derivatives used may not correlate perfectly with changes in the price of the investments they are intended to protect. The degree of correlation may be distorted by the fact that the foreign currency derivatives market may be dominated by speculative traders seeking to profit from changes in exchange rates. Additionally, though the use of currency derivatives for hedging purposes is intended to reduce the risk of loss due to the decline in the value of the hedged currency, it also reduces the potential for gain that might result from an increase in the value of such currency. Dodge & Cox may choose not to hedge against some or all of a Fund’s non-U.S. currency exposure and its attempts to hedge may be unsuccessful. If Dodge & Cox is incorrect in its predictions of currency movements or the effect such movements are likely to have on the value of Fund investments, a Fund’s currency hedges could cause it to lose money. Currency Futures. The sale of a foreign currency futures contract creates an obligation by the seller to deliver the amount of currency called for in the contract at a specified future time for a specified price. The purchase of a foreign currency futures contract creates an obligation by the buyer to take delivery of an amount of currency at a specified future time at a specified price.

Currency forwards. A forward foreign currency exchange contract (commonly known as a “currency forward”) involves an obligation to purchase or sell a specific currency at a future date at a price set at the time of the contract. Currency forwards are traded bilaterally (or “over-the-counter”). Currency forwards typically specify “physical settlement” at maturity, but in practice, they are often closed by entering an off-setting transaction or by “cash settling” − making a cash payment equal to the difference between the relevant exchange rate on the original trade date and the maturity date, applied to the notional amount. Some types of currency forwards,

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known as “non-deliverable forwards” or “NDFs” are always cash settled. NDFs are often used to invest in currencies that cannot be or are difficult to deliver offshore. NDFs may be (but are not required to be) traded on certain swap execution facilities. Currency and Cross-Currency Swaps. A currency swap (or “FX swap”) is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates. A currency swap is typically arranged as a spot currency transaction that will be reversed at a set date with an offsetting forward transaction. Currency swaps are traded bilaterally. A cross-currency swap is an interest rate swap (see “Interest Rate Swaps,” below) in which the relevant interest rates are applied to notional amounts denominated in different currencies and the cash flows are in corresponding different currencies. Cross-currency swaps are also traded bilaterally. Upon initiation of a cross-currency swap, the two counterparties agree to make an initial exchange of principal amounts in one currency for another currency. During the life of the swap, each party makes payments (in the currency of the principal amount received) to the other. At the maturity of the swap, the parties make a final exchange of the initial principal amounts, reversing the initial exchange at the same spot rate. Unlike other types of swaps, currency and cross-currency swaps typically involve the delivery of the entire principal (notional) amounts of the two designated currencies. Therefore, the entire principal value of a cross currency swap is subject to the risk that the swap counterparty will default on its contractual delivery obligations. Currency Options. A currency option is an agreement that, for a premium payment or fee, gives the option holder (the buyer) the right but not the obligation to purchase (a “call option”) or sell (a “put option”) the underlying asset (or settle for cash an amount based on an underlying asset, rate or index) at a specified price (the exercise price) during a period of time or on one or more specified dates. Certain options are traded on U.S. or foreign exchanges and cleared, while others are traded over-the-counter. Credit Derivatives: Credit Default Swaps. Credit default swaps involve the purchase by one counterparty (the “buyer”) of credit protection from the other counterparty (the “seller”) in respect of a specified notional amount of the debt of a specified issuer (a “reference entity”) or index of issuers. The buyer makes periodic payments to the seller over the term of the contract in return for the right if a specified “credit event” occurs during the term either to sell debt of the reference entity to the seller at its full par value (“physical settlement”) or to receive a payment equal to the difference between par and the market value of the reference entity’s debt applied to the notional amount (“cash settlement”). For most credit default swaps, the market value for purposes of calculating a cash settlement payment is determined through a market-wide auction process. Generally, credit events include a failure by the reference entity to make a scheduled debt payment or bankruptcy of the reference entity; in some cases, credit events also include the acceleration of a reference entity’s debt or certain types of debt restructurings. Credit default swaps referencing certain standardized indices are required to be traded on swap execution facilities and cleared; those referencing single entities are traded bilaterally. Credit default swaps referring to a single issuer may be used to create or hedge exposure to that issuer’s debt. Credit default swaps referring to indices of issuers can be used either to create long or short exposure to the credit markets generally or as a proxy for specific debt holdings. A Fund may be either the buyer or seller in a credit default swap transaction. If a Fund is a seller and no credit event occurs, the Fund will receive periodic fixed payments through the term of the contract. If a credit event occurs, the Fund is likely to suffer a loss as a result of its settlement obligation. If a Fund is the buyer and no credit event occurs, the Fund will lose the periodic fixed payments due through the term of the contract. If a credit event occurs, a Fund would receive full notional value for a debt obligation that may have little or no value, unless the swap counterparty is unable to meet its obligations. The value of a credit default swap fluctuates based on the market’s assessment of the likelihood that a credit event will occur in respect of a reference entity. The value to a buyer will increase and decrease along with the likelihood of a credit event; for a seller, the value will correlate inversely to the likelihood of a credit event. Credit default swaps involve different (and in some cases, greater) risks than if a Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk. The asset coverage requirements for a credit default swap may vary depending on whether a Fund is the buyer or seller of protection and on the settlement terms of the transaction. Under certain circumstances, a Fund may

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be required to earmark assets equal to the full notional amount of its potential obligations rather than just the market value of the swap. Equity Derivatives Equity Index Futures. An equity index futures contract involves an obligation to make a payment based upon changes in the level of a specified equity securities index, such as the S&P 500 or the EURO STOXX 50® Index, at a specified future time. A Fund may enter into equity index futures for the purpose of “equitizing” its available cash balance. This investment strategy involves purchasing equity index futures in a notional amount approximately equal to a Fund’s available cash in order to more closely approximate the return of a fully-invested fund. Typically, the initial margin required in respect of an equity index futures contract is a small percentage of the contract’s notional amount. Equity index futures are traded on and cleared through a futures exchange. A fund may purchase equity index futures referring to U.S. or non-U.S. securities indices. Equity Index Options. An equity index options gives its holder the right (but not the obligation) to buy or sell the future value of an equity stock index, such as the S&P 500 index, at a predetermined strike price. A put option gives the owner the right to sell at the strike price and has value at its expiration if the index price is lower than the strike price. A call option gives the owner the right to buy at the strike price and has value at its expiration if the index price is higher than the strike price. The buyer of an equity index option pays a premium amount to purchase the contract, but has no payment obligations thereafter. Equity index options may be traded on and cleared through an exchange or purchased over-the-counter from a broker-dealer.

Short Term Investments Each Fund may hold a portion of its assets in cash and short-term debt securities, including repurchase agreements, commercial paper, and bank obligations. In addition, each Fund may invest in shares of U.S. dollar-denominated money market funds. For temporary, defensive purposes, a Fund may invest without limitation in such securities. This reserve position provides flexibility in meeting redemptions, expenses, and the timing of new investments and serves as a short-term defense during periods of unusual market volatility. The Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox Global Bond Fund may also hold bank time deposits and short-term debt securities denominated in U.S. or non-U.S. currencies.

Bank Obligations Bank obligations include certificates of deposit, bankers’ acceptances, and other short-term debt obligations. Certificates of deposit are short-term obligations of commercial banks. A bankers’ acceptance is a time draft drawn on a commercial bank by a borrower, usually in connection with international commercial transactions. Certificates of deposit may have fixed or variable rates. A Fund may invest in U.S. banks, foreign branches of U.S. banks, U.S. branches of foreign banks, and foreign branches of foreign banks.

Short-Term Corporate Debt Securities Short-term corporate debt securities are outstanding non-convertible corporate debt securities (such as bonds and debentures) which have one year or less remaining to maturity. Corporate notes may have fixed, variable, or floating rates.

Commercial Paper Commercial paper is short-term promissory notes issued by corporations primarily to finance short-term credit needs. Commercial paper may have floating or variable rates.

Repurchase Agreements Each Fund may enter into a repurchase agreement through which it may from time to time purchase securities (each an “underlying security”) from a bank or securities dealer. Any such dealer or bank must be a member of the Federal Reserve System, approved by Dodge & Cox, and, at the time a Fund enters into the repurchase agreement, have a credit rating with respect to its short-term debt of at least A1 by S&P, F1 by Fitch, P1 by Moody’s, or the equivalent rating as determined by Dodge & Cox. As part of the transaction, the bank or securities dealer agrees to repurchase the underlying security on a specific future date at the same price, plus a specified amount interest. Repurchase agreements are generally for a short period of time, often less than a week. Repurchase agreements which do not provide for payment within seven days will be treated as illiquid securities. A Fund will only enter into repurchase agreements where (i) the underlying securities are issued by the U.S.

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government, its agencies and GSEs, (ii) the market value of the underlying security, including interest accrued, will be at all times greater than the value of the repurchase agreement, and (iii) payment for the underlying security is made only upon physical delivery or evidence of book-entry transfer to the account of the custodian or a bank acting as agent. In the event of a bankruptcy or other default of a seller of a repurchase agreement, a Fund could experience both delays in liquidating the underlying security and losses, including: (a) possible decline in the value of the underlying security during the period which the Fund seeks to enforce its rights thereto; (b) possible subnormal levels of income and lack of access to income during this period; and (c) expenses of enforcing its rights.

Reverse Repurchase Agreements and Dollar Rolls Reverse repurchase agreements are identical to repurchase agreements except that rather than buying securities for cash subject to their repurchase by the seller, a Fund may sell portfolio assets concurrently with an agreement by the Fund to repurchase the same assets at a later date at a fixed price. During the reverse repurchase agreement period, the Fund continues to receive principal and interest payments on these securities. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities but can invest the proceeds from the sale. Reverse repurchase agreements and dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. In the event the buyer of securities under a reverse repurchase agreement or dollar roll files for bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities. In addition, the use of these investments may have a leveraging effect because the Fund may use the proceeds to make investments in other securities. Because they create future payment obligations, reverse repurchase agreements and dollar rolls are subject to the same asset coverage requirements as derivatives. It is possible that changing government regulation may significantly limit the use of reverse repurchase agreements by mutual funds.

Borrowing Money and Lending of Portfolio Securities The Funds may borrow money to the extent permitted under the 1940 Act, as such may be interpreted or modified by regulatory authorities having jurisdiction from time to time. Current regulations permit a Fund to borrow from a bank in an amount up to one-third of the Fund’s total assets (including the amount borrowed), and to borrow additional amounts up to 5% of the Fund’s total assets for temporary purposes.

Borrowing will tend to exaggerate the effect on net asset value of any increase or decrease in the market value of a Fund’s portfolio. Money borrowed will be subject to interest costs that may or may not be recovered by earnings on the securities purchased. A Fund also may be required to maintain minimum average balances in connection with a borrowing or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate. It is possible that changing government regulations could significantly limit or impact the Funds’ ability to borrow money or lend portfolio securities.

Interfund Borrowing and Lending The SEC has granted an exemption permitting the Funds to participate in an interfund lending program. This program allows the Funds to borrow money from and lend money to each other for temporary or emergency purposes. The program is subject to a number of conditions, including, among other things, the requirements that: (1) a Fund will borrow money through the program only when the costs are equal to or lower than the cost of available bank loans, and will lend through the program only when the returns are higher than those available from an investment in eligible repurchase agreements; (2) an interfund loan may not exceed seven days; and (3) a Fund’s interfund loans to any one Fund may not exceed 5% of the lending Fund’s net assets. A Fund may have to borrow from a bank at a higher interest rate if an interfund loan is not available. The Trust’s Board of Trustees is responsible for overseeing the interfund lending program. Any delay in repayment to a lending Fund could result in a lost investment opportunity or additional borrowing costs.

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Lending of Portfolio Securities Each Fund has reserved the right to lend its securities to qualified broker/dealers, banks or other financial institutions. By lending its portfolio securities, a Fund would attempt to increase its income by receiving a fixed fee or a percentage of the collateral, in addition to continuing to receive the interest or dividends on the securities loaned. The terms, structure and the aggregate amount of such loans would be consistent with the 1940 Act. The borrower would be required to secure any such loan with collateral in cash or cash equivalents maintained on a current basis in an amount at least equal to the total market value and accrued interest of the securities loaned by the Fund. If the borrower defaults on its obligation to return the securities lent because of insolvency or other reasons, a Fund could experience delays and costs in recovering the securities lent or in gaining access to the collateral. These delays and costs could be greater for foreign securities. If a Fund is not able to recover the securities lent, a Fund may sell the collateral and purchase a replacement investment in the market. The value of the collateral could decrease below the value of the replacement investment by the time the replacement investment is purchased. Cash received as collateral through loan transactions may be invested in other eligible securities that may be subject to market appreciation or depreciation. A Fund may not be able to recall loaned securities in time to exercise its voting rights. Additional Risks Commodities Investment Risk. While none of the Funds may invest in commodities directly, all of the Funds may invest in either debt or equity securities (or both) issued by commodity-related issuers. Investing in securities of commodity-related issuers may subject a Fund to greater volatility than investments in other securities. The commodities markets have experienced periods of extreme volatility. Such market conditions may result in rapid and substantial decreases or increases to the value of commodity-related securities and to the value of a Fund holding such securities. Commodities markets may fluctuate widely based on many factors, many of which are outside the control of the issuers of commodity-related securities. Commodities markets are subject to temporary distortions and disruptions due to lack of liquidity, participation by speculators in the market, government regulation, and other factors. Fluctuations in the commodities markets may impact the price of securities exposed indirectly to commodity risk, including securities issued by governments in countries where the economy depends heavily on commodities and in the securities of issuers located in or exposed to such countries. Cyber Security Risk. As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a Fund to lose proprietary information, suffer data corruption, or lose operational capacity. This in turn could adversely affect a Fund and its shareholders by, among other things, interfering with the processing of shareholder transactions; impeding a Fund’s ability to calculate its net asset value; causing the release of confidential Fund information or private shareholder information (which may violate privacy and other laws, including those related to identity theft); impeding trading; causing reputational damage; and subjecting a Fund to regulatory penalties, fines, financial losses, reputational damage, reimbursement or other compensation costs, and additional compliance costs associated with corrective measures, and/or cyber security risk management. Cyber security breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through “hacking” or malicious software coding), but may also result from outside attacks such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches of a Fund’s third-party service providers (e.g., the Funds’ custodian and transfer agent) or issuers in which a Fund invests can also subject a Fund to many of the same risks associated with direct cyber security breaches. Although Dodge & Cox has established risk management systems designed to reduce the risks associated with cyber security, there is no guarantee that such efforts will succeed, especially since the Funds do not directly control the cyber security systems of issuers or third-party service providers.

Regulatory Risk. Financial entities, such as investment companies and investment advisers, are generally subject to extensive government regulation and intervention. Government regulation and/or intervention may change the way a Fund is regulated, affect the expenses incurred directly by the Fund and the value of its investments, and limit and/or preclude a Fund’s ability to achieve its investment objective. Government regulation may change frequently and may have significant adverse consequences. Moreover, government regulation may have unpredictable and unintended effects. Many of the changes required by the Dodd-Frank Act could materially

22

impact the profitability of the Funds and the value of assets they hold, expose the Funds to additional costs, require changes to investment practices, and adversely affect the Funds’ ability to pay dividends. While there continues to be uncertainty about the full impact of these and other regulatory changes, it is the case that the Funds will be subject to a more complex regulatory framework, and may incur additional costs to comply with new requirements as well as to monitor for compliance in the future. Dilution Risk. The per share value of a Fund may be diluted by unusually large redemption requests. In the case of a redemption request that is larger than the Fund’s available cash, a Fund may need to sell holdings in order to pay redemption proceeds. If a Fund is not able to sell holdings at a favorable price, such a redemption request may reduce the Fund’s per share value. These risks may be greater during periods of market stress, during which liquidity may be compromised. Participation on Creditor, Bondholder, or Shareholder Committees. A Fund may from time to time participate on committees formed by creditors, bondholders, or shareholders, and in connection with such committees may enter into agreements or take other actions to enforce the Funds’ rights or protect the value of assets held in the Funds. Such participation may subject a Fund to expenses such as legal fees and may make a Fund an “insider” of the issuer for purposes of the federal securities laws, and therefore may restrict such Fund’s ability to trade in or acquire additional positions in a particular security when it might otherwise desire to do so. Participation by a Fund on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and debtors.

D I S C L O S U R E O F F U N D H O L D I N G S The Funds provide a complete list of their holdings four times in each fiscal year, as of the end of each quarter. The lists also appear in the Funds’ Semi-Annual and Annual Reports to shareholders. The Funds file the lists with the SEC on Form N-CSR (second and fourth quarters) and Form N-Q (first and third quarters). Shareholders may view the Funds’ Forms N-CSR and N-Q on the SEC’s website at sec.gov. Forms N-CSR and N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 202-942-8090 (direct) or 800-732-0330 (general SEC number). A list of the Funds’ quarter-end holdings is also available at dodgeandcox.com and upon request on or about 15 days following each quarter end and remains available on the website until the list is updated in the subsequent quarter. Occasionally, certain third parties—including the Funds’ service providers, independent rating and ranking organizations, intermediaries that distribute the Funds’ shares, institutional investors and others—request information about the Funds’ portfolio holdings. The Board of Trustees has approved policies and procedures relating to disclosure of the Funds’ portfolio holdings, which include measures for the protection of non-public portfolio holdings information, and which are designed to protect the interests of shareholders and address potential conflicts of interest that could arise between the interests of a Fund’s shareholders, on the one hand, and those of Dodge & Cox, on the other. The Funds’ policy is to disclose portfolio holdings to third parties only if legally required to do so or when the Funds believe there is a legitimate business purpose for the Funds to disclose the information and the recipient is subject to a duty of confidentiality, including a duty not to use the information to engage in any trading of the Funds’ holdings or Fund shares on the basis of nonpublic information. This duty of confidentiality may exist under law or may be imposed by contract. Confidentiality agreements must be consistent with the policies adopted by the Board of Trustees and in form and substance acceptable to Dodge & Cox’s Legal Department and the Funds’ Chief Compliance Officer. In situations where the Funds’ policies and procedures require a confidentiality agreement, persons and entities unwilling to execute an acceptable confidentiality agreement may only receive portfolio holdings information that has otherwise been publicly disclosed. The Funds may provide, at any time, portfolio holdings information to their service providers, such as the Funds’ investment manager, transfer agent, custodian/fund accounting agent, financial printer, pricing services, auditors, counsel, and proxy voting services, as well as to state, federal, and foreign regulators and government agencies, and as otherwise required by law or judicial process. Government entities and Fund service providers are generally subject to duties of confidentiality, including a duty not to trade on non-public information, imposed by law and/or contract.

23

From time to time, officers of the Funds or Dodge & Cox may express their views orally or in writing on one or more of the Funds’ portfolio securities or may state that the Funds have recently purchased or sold one or more securities. Such views and statements may be made to members of the press, shareholders in the Funds, persons considering investing in the Funds or representatives of such shareholders or potential shareholders, such as fiduciaries of a 401(k) plan or a trust and their advisers and rating and ranking organizations. The nature and content of the views and statements provided to each of these persons may differ. The securities subject to these views and statements may be ones that were purchased or sold since the Funds’ most recent quarter-end and therefore may not be reflected on the list of the Funds’ most recent quarter-end portfolio holdings disclosed on its website. Additionally, when purchasing and selling its securities through broker-dealers, requesting bids or offers on securities, obtaining price quotations on securities, as well as in connection with litigation involving the Funds’ portfolio securities, the Funds may disclose one or more of their securities. The Funds have not entered into formal nondisclosure agreements in connection with these situations; however, the Funds would not continue to conduct business with a person who Dodge & Cox believed was misusing the disclosed information. The Funds’ Board of Trustees and Dodge & Cox’s Legal Department may, on a case-by-case basis, impose additional restrictions on the dissemination of the Funds’ portfolio information beyond those described herein. Dodge & Cox provides investment advice to clients other than the Funds that have investment objectives that may be substantially similar to those of the Funds. These clients also may have portfolios consisting of holdings substantially similar to those of the Funds and generally have access to current portfolio holding information for their accounts. These clients do not owe Dodge & Cox or the Funds a duty of confidentiality with respect to disclosure of their portfolio holdings. Dodge & Cox’s portfolio holdings policy requires any violations of the policy that affect the Funds be reported to the Funds’ Chief Compliance Officer. If the Funds’ Chief Compliance Officer, in the exercise of her duties, deems that a violation constitutes a “Material Compliance Matter” within the meaning of Rule 38a-1 under the 1940 Act, she is required to report the violation to the Funds’ Board of Trustees.

M A N A G E M E N T O F T H E F U N D S T R U S T E E S A N D O F F I C E R S Each Dodge & Cox Fund is governed by the Board of Trustees of the Trust, which meets regularly to review a wide variety of matters affecting the Funds. The Trustees’ primary responsibility is oversight of the management of each Fund for the benefit of its shareholders, not day-to-day management. The Trustees set broad policies for the Funds; monitor Fund operations, service providers, regulatory compliance, performance, and costs; and nominate and select new Trustees. The Trustees also elect the Funds’ Officers and are responsible for performing various duties imposed on them by the 1940 Act, the laws of Delaware, and other laws. Dodge & Cox manages the day-to-day operations of the Funds under the direction of the Board of Trustees. The Board met five times during the fiscal year ended December 31, 2015. Charles F. Pohl, an “interested” Trustee, serves as Chairman of the Board of Trustees. The Independent Trustees of the Funds have designated a Lead Independent Trustee, who functions as a spokesperson and principal point of contact for the Independent Trustees. The Lead Independent Trustee is responsible for coordinating the activities of the Independent Trustees, including calling and presiding at regular executive sessions of the Independent Trustees, developing the agenda of each Board meeting together with the Chairman, and representing the Independent Trustees in discussions with Dodge & Cox management. John B. Taylor currently serves as Lead Independent Trustee. The Funds’ Board has determined that its leadership and committee structure is appropriate because it sets the proper tone for the relationship between the Funds, on the one hand, and Dodge & Cox and the Funds’ other principal service providers, on the other, and facilitates the exercise of the Board’s independent judgment in evaluating and managing the relationships. In addition, the structure efficiently allocates responsibility among committees and the full Board. Like other mutual funds, each of the Dodge & Cox Funds is subject to a variety of risks, including, among others, investment, valuation, compliance, and operational risks. Dodge & Cox and other service providers have primary responsibility for the Funds’ risk management on a day-to-day basis as part of their overall responsibilities. Dodge & Cox is also primarily responsible for managing investment risk and its own operational risks as part of its day-to-day investment management responsibilities. Dodge & Cox and the Funds’ Chief

24

Compliance Officer (who reports directly to the Board’s Independent Trustees) assist the Board in overseeing the significant investment policies of the Funds and monitor the various compliance policies and procedures approved by the Board as part of its oversight responsibilities. In discharging its oversight responsibilities, the Board of Trustees considers risk management issues throughout the year by reviewing regular reports prepared by Dodge & Cox and the Funds’ Chief Compliance Officer, as well as special written reports or presentations provided on a variety of relevant issues, as needed. For example, Dodge & Cox reports to the Board quarterly on the investment performance of the Funds, the financial performance of the Funds, and overall market and economic conditions. Dodge & Cox also provides regular updates on legal and regulatory developments that may affect the Funds. The Funds’ Chief Compliance Officer provides regular presentations to the Board at its quarterly meetings. The Funds’ Chief Compliance Officer also provides an annual report to the Board concerning, among other things, (i) any material compliance matters relating to the Funds, Dodge & Cox, and the Funds’ other key service providers; (ii) various risks identified as part of the Funds’ compliance program assessments; and (iii) any material recommended changes to policies and procedures. The Funds’ Chief Compliance Officer also meets regularly in executive session with the Independent Trustees and communicates any significant compliance-related issues and regulatory developments to the Audit and Compliance Committee between Board meetings. In addressing issues regarding the Funds’ risk management between meetings, representatives of Dodge & Cox communicate with the Lead Independent Trustee and/or the Chairperson of the Audit and Compliance Committee and other Independent Trustees. As appropriate, the Trustees confer among themselves, or with Dodge & Cox, the Funds’ Chief Compliance Officer, and independent legal counsel, to identify and review risk management issues that may be placed on the full Board’s agenda. The Board also relies on its committees to administer the Board’s oversight function. The Audit and Compliance Committee, which is composed of all Independent Trustees, oversees management of financial and compliance risks and controls. The Audit and Compliance Committee assists the Board at various times throughout the year in reviewing with Dodge & Cox and the Funds’ independent auditors matters relating to financial accounting and reporting, systems of internal controls, and the Funds’ annual audit process. The Valuation Committee reviews and makes recommendations concerning the fair valuation of portfolio securities and the Funds’ valuation policies in general. These and the Board’s other committees present reports to the Board that may prompt further discussion of issues concerning the oversight of the Funds’ risk management. The Board may also discuss particular risks that are not addressed in the committee process. All of the Trustees bring to the Board a wealth of executive leadership experience. The Board and its Nominating and Governance Committees select Independent Trustees with a view toward constituting a Board that, as a body, possesses the qualifications, skills, attributes, and experience to appropriately oversee the actions of the Funds’ service providers, decide upon matters of general policy, and represent the long-term interests of Fund shareholders. In doing so, they consider the qualifications, skills, attributes, and experience of the current Board members of the Funds, with a view toward maintaining a Board that is diverse in viewpoint, experience, education, and skills. The Funds seek Independent Trustees who have high ethical standards and the highest levels of integrity and commitment, who have inquiring and independent minds, mature judgment, good communication skills, and other complementary personal qualifications and skills that enable them to function effectively in the context of the Funds’ Board and committee structure and who have the ability and willingness to dedicate sufficient time to effectively fulfill their duties and responsibilities. The business acumen, experience, and objective thinking of the Trustees are considered invaluable assets for Dodge & Cox management and the Funds. The Independent Trustees collectively have a significant record of accomplishments in governance, business, not-for-profit organizations, government and military service, academia, law, accounting, or other professions. Although no single list could identify all the experience upon which the Funds’ Independent Trustees draw in connection with their service, the table below summarizes key experience for each Independent Trustee. These references to the qualifications, attributes, and skills of the Trustees are pursuant to the disclosure requirements of the U.S. Securities and Exchange Commission, and shall not be deemed to impose any greater responsibility or liability on any Trustee or the Board as a whole. Notwithstanding the qualifications listed below, none of the

25

Independent Trustees is considered an “expert” within the meaning of the federal securities laws with respect to information in the Funds’ registration statement. Interested Trustees have similar qualifications, skills, and attributes as the Independent Trustees. Interested Trustees are senior executive officers of Dodge & Cox. This management role with the Funds’ investment adviser also permits them to make a significant contribution to the Funds’ Board. The Trustees and Officers of the Funds are listed below. The address for each Trustee and Officer, unless otherwise noted, is c/o Dodge & Cox, 555 California Street, 40th Floor, San Francisco, CA 94104. Each Trustee and Officer oversees all six portfolios in the Dodge & Cox Funds Complex and serves for an indefinite term.

Independent Trustees (The term “Independent Trustee” refers to a Trustee who is not an “interested person” of the Funds within the meaning of the 1940 Act.)

Name, (Age), Position with the Trust, and Year of Election or Appointment as Trustee

Principal Occupation(s) During the Past Five Years and Other Relevant Experience

Directorships of Public Companies and Other Investment Companies During the Past Five Years

Thomas A. Larsen (66) Trustee since 2002

Mr. Larsen has been Senior Counsel of Arnold & Porter LLP (a law firm) since 2013, prior to which he was a Partner. He previously was a Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (a law firm) from 1977 to 2011, where he also served as Chair of the Real Estate and Private Client Services Groups. Mr. Larsen previously worked in the Office of the General Counsel of the Environmental Protection Agency. Mr. Larsen has served in leadership positions on advisory and trustee boards for many charitable, educational, and nonprofit organizations, as well as a private company.

None

Ann Mather (56) Trustee since 2011

Ms. Mather has served as the Chief Financial Officer or in other executive financial management positions with numerous public and private companies, including Polo Ralph Lauren, Buena Vista International, Inc., and, most recently, Pixar Animation Studios where she was CFO from 1999 to 2004. Ms. Mather has also served on a variety of public and private company boards, including as chair of the audit committee for several public company boards.

Current Director of Google, Inc. (internet information services); Glu Mobile, Inc. (multimedia software); Netflix, Inc. (internet television); Arista Networks (cloud networking); and Shutterfly, Inc. (internet photography services/publishing). Previous Director of Central European Media Enterprises, Ltd. (vertically integrated media services) (until 2009), MoneyGram International, Inc. (business services) (2010-13)

Robert B. Morris III (63) Trustee since 2011

Mr. Morris serves as Advisory Director to the Presidio Group. During his career in the financial services industry, Mr. Morris worked with many leading firms, including Wells Fargo, Montgomery Securities, Prudential-Bache Securities, and Goldman Sachs, where he was a partner and managing director. Mr. Morris has served on advisory and trustee boards for many charitable, educational, and nonprofit organizations.

None

26




Gary Roughead

(64)

Trustee since December 2013

Admiral Roughead (Ret.) has served since 2012 as the Annenberg Distinguished Visiting Fellow at the Hoover Institution at Stanford University. Admiral Roughead is a member of the Arctic Security Initiative (Chair), Task Force on Energy Policy, Military History Working Group, and Foreign Policy Working Group at the Hoover Institution. From 1973 to 2011, Admiral Roughead served in the U.S. Navy. From 2008 to 2011, Admiral Roughead was the Chief of Naval Operations. During that period, Admiral Roughead was a Senior Officer in the U.S. Navy, Naval Advisor to the President and Secretary of Defense and a Member of the Joint Chiefs of Staff.

Current Director, Northrop Grumman Corp. (global security)

Mark E. Smith

(65)

Trustee since April 2014

Mr. Smith served as a consultant from 2012 to 2013 at Brown Brothers Harriman, an investment management company, and at Loomis Sayles & Company, L.P., an investment manager. Prior to 2012, Mr. Smith served as Executive Vice President, Managing Director-Fixed Income at Loomis Sayles & Company, L.P.

None

John B. Taylor (69) Trustee since 2005 (and 1995-2001)*

Mr. Taylor has been a Professor of Economics at Stanford University since 1984 and a Senior Fellow at the Hoover Institution since 1996. He has served in numerous government positions, including, most recently, Under Secretary for International Affairs at the United States Treasury from 2001 to 2005. Previous government positions include service as a Director of the Overseas Private Investment Corporation, on the Advisory Panel of the Congressional Budget Office, and both a Member and Senior Staff Economist of the President’s Council of Economic Advisers. Mr. Taylor is actively involved in many economics professional societies.

None

* From 1995 until 1998, Mr. Taylor served in a similar capacity with the Trust’s predecessors, Dodge & Cox Stock Fund, Dodge & Cox Income Fund, and Dodge & Cox Balanced Fund.

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Interested Trustees (Each Interested Trustee is an employee of Dodge & Cox in an executive position and is an “interested person” of the Trust as defined in the 1940 Act.)




Charles F. Pohl

(58) Chairman Trustee since 2014

Chairman (since 2013), Co- President (2011-2013), Senior Vice President (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio Manager, Investment Analyst, and member of Investment Policy Committee (IPC), Global Stock Investment Policy Committee (GSIPC), International Investment Policy Committee (IIPC), and Fixed Income Investment Policy Committee (FIIPC). Mr. Pohl joined Dodge & Cox in 1984.

None

Dana M. Emery (54) President Trustee since 1993*

Chief Executive Officer (since 2013), President (since 2011), Executive Vice President (2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC). Ms. Emery joined Dodge & Cox in 1983.

None

* From 1993 until 1998, Ms. Emery served in a similar capacity with one of the Trust’s predecessors, Dodge & Cox Income Fund.

Officers

Name and (Age) Position(s) with the Trust (Year of Election or Appointment)

Principal Occupation(s) During the Past Five Years

John A. Gunn

(72)

Senior Vice President

(Officer since 1998)

Chairman Emeritus (2011-2013), Chairman (until 2011), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC (until 2016), GSIPC (until 2014), and IIPC (until 2015).

Diana S. Strandberg (56)

Senior Vice President (Officer since 2005)

Senior Vice President (since 2011), Vice President (until 2011), and Director (since 2011) of Dodge & Cox; Director of International Equity, Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and GBIPC

Englebert T. Bangayan (37)

Vice President


Vice President (since 2011) of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IIPC (since 2015)

Philippe Barret, Jr.

(39)

Vice President (Officer since 2010)

Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and member of IPC (since 2013)

Lily S. Beischer (46)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of GSIPC

Wendell W. Birkhofer (59)


Senior Vice President (since February 2016) and Vice President (until February 2016) of Dodge & Cox, Portfolio Manager, and member of IPC

Anthony J. Brekke (41)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of FIIPC

Richard T. Callister (44)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IIPC (since 2012)

C. Bryan Cameron (58)


Senior Vice President (since 2011) and Vice President (until 2011) of Dodge & Cox, Director of Research, Portfolio Manager, Investment Analyst, and member of IPC and IIPC

28



James H. Dignan (46)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC (since 2014)

Mario C. DiPrisco (40)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IIPC

Thomas S. Dugan (51)


Senior Vice President (since 2011), Vice President (until 2011), and Director (since 2011) of Dodge & Cox; Associate Director of Fixed Income, Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC (since 2014)

David C. Hoeft (48)


Senior Vice President (since 2011), Vice President (until 2011), and Director (since 2011) of Dodge & Cox; Associate Director of Research, Portfolio Manager, Investment Analyst, and member of IPC and GSIPC (as of January 2016)

Keiko Horkan (45)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IIPC

Lucinda I. Johns (42)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of FIIPC (since 2012) and GBIPC (since 2014)

Roger G. Kuo (44)


Vice President and Director (as of January 2016) of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IIPC and GSIPC

Karol Marcin (43)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of GSIPC

Kathleen Grey McCarthy (36)


Vice President (since 2012) of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IPC (as of January 2016)

Raymond J. Mertens, Jr. (43)

Vice President


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of GSIPC (since 2014)

Larissa K. Roesch (49)


Vice President of Dodge & Cox, Portfolio Manager, and member of FIIPC

Adam S. Rubinson (49)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC (since 2014)

Steven C. Voorhis (46)


Vice President of Dodge & Cox, Portfolio Manager, Investment Analyst, and member of IPC and GSIPC

Matthew A. Beck (43)

Assistant Vice President


Vice President (since 2012) of Dodge & Cox and Client Service Representative

Terrill C. Armstrong (43)

Assistant Vice President (Officer since 2015)

Client Service Representative of Dodge & Cox (since 2015); Portfolio Manager at Fischer Francis Trees & Watts (2011-2014)

Carl Bindoo (41)



Investment Accounting & Operations Manager of Dodge & Cox (since 2011); Vice President, State Street Corporation (1997-2011)

Damon T. Blechen

(39)



Vice President of Dodge & Cox and Investment Analyst (since 2012); Equity Trader (until 2012)

James T. Borden (56)



Vice President of Dodge & Cox and Portfolio Manager

Steven H. Cassriel (54)



Vice President of Dodge & Cox, Portfolio Manager, and Investment Analyst

Alexander J. Chartz

(28)



Client Service Representative of Dodge & Cox

29



Hsin Chau

(40)


Vice President (since 2014), Senior Counsel (since 2014), and Associate Counsel (since 2011) of Dodge & Cox

Sophie Chen

(32)


Investment Analyst of Dodge & Cox (since 2012); Stanford Graduate School of Business MBA Program (2010-2012

Linda K. Chong (43)


Vice President of Dodge & Cox and Investment Analyst

Robert T. Curran (40)


Vice President (since 2012) of Dodge & Cox and Fund Administration and Client Service Representative

Deirdre A. Curry

(49)


Vice President (since 2014) and Client Service Representative of Dodge & Cox

Shawn G. Dahlem (50)


Vice President (since 2013) of Dodge & Cox and Portfolio Manager

Rameez Dossa

(32)


Investment Analyst of Dodge & Cox (since 2013); Harvard Business School MBA Program (2011-2013)

David J. Edwards (54)


Vice President of Dodge & Cox and Client Service Representative

Karim A. Fakhry (38)



Kathryn O. Fast (42)



Allen C. Feldman (30)



Investment Analyst (since 2013) and Research and Trading Associate (until 2013) of Dodge & Cox

Benjamin V. Garosi (36)


Vice President (since 2013) and Investment Analyst of Dodge & Cox

Steven T. Gorski (46)



Amy R. Grandstaff (28)



Client Service Representative of Dodge & Cox

Glen S. Guymon (46)


Vice President (since 2012), Senior Counsel (since 2013), and Associate Counsel (until 2013) of Dodge & Cox

John N. Iannuccillo (47)



Kevin D. Johnson (54)



Roberta R.W. Kameda (55)

Assistant Vice President and Assistant Secretary (Officer since 2006)

Vice President , General Counsel of Dodge & Cox

Nancy A. Kellerman (45)



Michael Kiedel (40)


Vice President (since 2012) and Investment Analyst of Dodge & Cox

Mary E. Klabunde

(57)



Vice President of Dodge & Cox and Fund Administration and Client Service Representative

Thinh V. Le (41)



Nicholas V. Lockwood (37)


Vice President (since 2013) and Investment Analyst

30



Hallie W. Marshall (37)


Vice President (since 2015), Portfolio Manager, and Investment Analyst of Dodge & Cox; Haas School of Business at the University of California, Berkeley MBA Program (2009-2011)

Chad R. Musolf

(38)



Client Service Representative of Dodge & Cox (since 2015); Director, Consultant Relations at INTECH Investment Management (2010-2015)

Molly K. Myers

(41)



Portfolio Manager (since 2013) of Dodge & Cox and Portfolio Manager Associate (2009-2013)

Joel-Patrick Millsap (36)


Vice President (since 2011) of Dodge & Cox and Investment Analyst

Masato Nakagawa

(33)



Investment Analyst of Dodge & Cox (since 2012); Portfolio Manager at Freddie Mac (2003-2012)

Shirlee R. Neil (51)



Ria T. Nickens (45)



Amanda L. Nelson (44)



Stephanie D. Notowich (50)



Arun R. Palakurthy (35)



E. Saul Pena (38)



Salil A. Phadnis

(31)



Investment Analyst of Dodge & Cox (since 2013); Wharton School at the University of Pennsylvania MBA Program (2011-2013); Research Associate, Dodge & Cox (2009-2011)

Lynn A. Poole (56)



Neha N. Pyle

(40)



Shareholder Services Specialist of Dodge & Cox (since 2016); Executive/Special Projects Assistant, TPG Capital (2014-2016), Director of Client Relations, Phineus Partners (2009-2012)

Nils M. Reuter (36)



Murray J. Rolfe (44)


Vice President of Dodge & Cox, Operations Manager (since 2013), and Performance and Reporting Manager (until 2013)

Matthew B. Schefer (31)


Vice President (since 2015), Investment Analyst (since 2011) and Research Associate (2008-2011) of Dodge & Cox

Rosemarie C. Schembri (40)


Associate Chief Compliance Officer (since 2013) and Compliance Officer (until 2013) of Dodge & Cox

Tara E. Shamia (39)


Vice President (since 2012) of Dodge & Cox and Client Service Representative

Varinia T. Siefker (36)



Intermediary Operations Relationship Manager of Dodge & Cox (since 2014); Portfolio Strategist and Product Manager, Charles Schwab Investment Management (2011-2013); Marketing Product Manager, Principal Funds Distributor (2009-2011)

Doug M. Silverman (33)



Client Service Representative of Dodge & Cox (since 2015); Officer in the U.S. Navy (2002-2015)

31



Paritosh Somani (37)



Savvy S. Soun (43)



Vice President of Dodge & Cox and Equity Trading Manager

Jay J. Stock (54)



Robert S. Turley

(36)



Investment Analyst of Dodge & Cox (since 2013); Harvard University PhD Program in Business Economics (2008-2013)

Jose Ursua (35)


Investment Analyst of Dodge & Cox (since 2014); Global Economics and Markets Analyst at Goldman Sachs (2011-2014); Harvard University PhD (Economics) (2005-2011)

Ryan Utsumi (37)


Client Service Representative of Dodge & Cox (since 2015); Client Portfolio Strategist (2014) and Director, Money Market Funds of Charles Schwab (2012-2014) Investment Management; Senior Manager, Corporate Strategy of Charles Schwab & Co. (2010-2012)

Eric R. Warner (54)



Tae Yamaura (43)



Thomas M. Mistele (62)

Secretary (Officer since 1998)

Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011) and General Counsel (until 2011) of Dodge & Cox

David H. Longhurst (58)

Treasurer (Officer since 2006)

Vice President and Assistant Treasurer of Dodge & Cox

John M. Loll (50)

Assistant Treasurer and Assistant Secretary (Officer since 2000)

Vice President and Treasurer of Dodge & Cox

Katherine M. Primas (41)

Chief Compliance Officer (Officer since 2009)

Vice President (since 2011) and Chief Compliance Officer of Dodge & Cox

32

The Board of Trustees has the five standing committees listed below:

Functions Members

Number of Meetings Held During the Last Fiscal Year

Audit and Compliance Committee

Oversee the accounting and financial reporting processes of the Trust and each of its series and its internal controls and, as the Committee deems appropriate, inquire into the internal controls of certain third-party service providers; oversee the quality and integrity of the Funds’ financial statements and the independent audit thereof; oversee, or, as appropriate, assist Board of Trustees’ oversight of, the Funds’ compliance with legal and regulatory requirements that relate to the Funds’ accounting and financial reporting, internal controls and independent audits; approve prior to appointment the engagement of the Funds’ independent auditors and, in connection therewith, to review and evaluate the qualifications, independence and performance of the Funds’ independent auditors; and act as a liaison between the Funds’ independent auditors and Chief Compliance Officer and the Board.

Thomas A. Larsen

Ann Mather (Chairperson)

Robert B. Morris

Gary Roughead

Mark E. Smith

John B. Taylor

2

Contract Review Committee

Consider the renewal of the Investment Management Agreements between the Funds and Dodge & Cox pursuant to Section 15(c) of the 1940 Act, and such other material contracts as the Board and Committee deem appropriate.

Thomas A. Larsen (Chairperson) Ann Mather Robert B. Morris

Gary Roughead

Mark E. Smith John B. Taylor

2

Governance Committee

Nominate proposed members of committees of the Board; evaluate and recommend to the Board the compensation of Trustees and Trustee expense reimbursement policies; evaluate the performance of the Board as deemed necessary.

Thomas A. Larsen Ann Mather Robert B. Morris

Gary Roughead


(Chairperson)

4

Nominating Committee

Determine such standards or qualifications for nominees to serve as Trustees, if any, as the Committee deems appropriate; identify possible candidates to become members of the Board in the event that a Trustee position is vacated or created and/or in contemplation of a shareholders’ meeting at which one or more Trustees is to be elected; and consider and evaluate such candidates and recommend Trustee nominees for the Board’s approval.


Gary Roughead

Mark E. Smith John B. Taylor (Chairperson)

0

Valuation Committee

Review and approve the Funds’ valuation policies; provide oversight for pricing of securities and calculation of net asset value; review “fair valuations” and determinations of liquidity of the Funds’ securities.


(Chairperson)

Gary Roughead


1

33

Trustees and Officers of the Trust affiliated with Dodge & Cox hold a controlling interest in Dodge & Cox. As of March 31, 2016, the Officers and Trustees of the Trust owned less than 1% of the outstanding shares of Dodge & Cox Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, and Dodge & Cox Income Fund. As of March 31, 2016, the Officers and Trustees of the Trust owned 1.4% of the outstanding shares of Dodge & Cox Global Stock Fund and 10.7% of the outstanding shares of Dodge & Cox Global Bond Fund. The following table shows the dollar range of any equity securities beneficially owned by the Trustees in any of the Funds in the Dodge & Cox Funds Complex as of December 31, 2015.

Name of Trustee

Dollar Range of Equity Securities in the Funds

Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Trustee in Family of Investment Companies

Interested Trustees Charles F. Pohl Dodge & Cox Stock Fund

Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000 Over $100,000 Over $100,000 Over $100,000 Over $100,000

Over $100,000

Dana M. Emery Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000 Over $100,000 Over $100,000 Over $100,000 Over $100,000

Over $100,000

Independent Trustees

Thomas A. Larsen Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000 Over $100,000 Over $100,000

$50,001- $100,000 $1-$10,000

Over $100,000

Ann Mather Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000

$10,001-$50,000 $50,001-$100,000

none none

Over $100,000

Robert B. Morris Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000 Over $100,000 Over $100,000

none none

Over $100,000

Gary Roughead Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

$10,001-$50,000 $10,001-$50,000 $10,001-$50,000 $10,001-$50,000 $10,001-$50,000

none

Over $100,000

34

Name of Trustee

Dollar Range of Equity Securities in the Funds

Aggregate Dollar Range of Equity Securities in all Registered Investment Companies Overseen by Trustee in Family of Investment Companies

Mark E. Smith Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 Over $100,000

$50,001-$100,000 $50,001-$100,000

Over $100,000 none

Over $100,000

John B. Taylor Dodge & Cox Stock Fund Dodge & Cox Global Stock Fund Dodge & Cox International Stock Fund Dodge & Cox Balanced Fund Dodge & Cox Income Fund Dodge & Cox Global Bond Fund

Over $100,000 none

Over $100,000 none

Over $100,000 Over $100,000

Over $100,000

The following table shows compensation paid by the Trust to Independent Trustees. The Trust does not pay any other remuneration to its Officers or Trustees, and has no bonus, profit-sharing, pension, or retirement plan.

Independent Trustee Total Compensation from Funds and the Dodge & Cox Funds Complex paid to Trustees for Year Ended December 31, 2015

Thomas A. Larsen $235,000

Ann Mather $250,000

Robert B. Morris $235,000

Gary Roughead $225,000

Mark E. Smith $225,000

John B. Taylor $255,000

35

C O D E O F E T H I C S The Funds and Dodge & Cox have adopted a Code of Ethics under Rule 17j-1 of the 1940 Act. Dodge & Cox employees with access to information (access persons) about the purchase or sale of securities in a Fund’s portfolio may engage in personal securities transactions, including securities purchased or held by the Funds. However, the Code of Ethics requires, among other provisions, that access persons obtain approval before executing certain personal trades. The Code of Ethics is designed to place the interests of the Funds’ shareholders before the interests of the people who manage the Funds. The Code of Ethics is on file with the SEC.

P R O X Y V O T I N G P O L I C I E S A N D P R O C E D U R E S Dodge & Cox Funds Proxy Voting Policies and Procedures are attached to this SAI as Appendix B. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling 800-621-3979; or on the Funds’ website at dodgeandcox.com, and (2) on the SEC’s website at sec.gov.

P R I N C I P A L H O L D E R S O F S E C U R I T I E S On March 31, 2016, National Financial Services, 2499 Washington Boulevard, Jersey City, NJ 07310, owned of record 73,356,140 shares (21%), 121,026,871 shares (21%), 282,971,316 shares (18%), 31,472,371 shares (21%), and 655,437,283 (19%) of the outstanding shares of Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, and Dodge & Cox Income Fund, respectively. The Charles Schwab Corporation, 211 Main Street, San Francisco, CA 94105, owned of record 40,400,420 shares (11%), 82,084,626 shares (14%), 141,830,263 shares (9%), 20,881,421 shares (13%), 407,979,848 shares (12%), and 1,322,023 shares (18%) of the outstanding shares of Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, Dodge & Cox Income Fund, and Dodge & Cox Global Bond Fund, respectively. Mac & Co. Inc., 525 William Penn Place, Pittsburgh, PA 15230, owned of record 35,219,474 (6%) of the outstanding shares of Dodge & Cox Global Stock Fund. TD Ameritrade, Inc., 200 South 108th Avenue, Omaha, NE 68154, owned of record 657,515 (9%) of the outstanding shares of Dodge & Cox Global Bond Fund. Dodge & Cox, 555 California Street, 40th Floor, San Francisco, CA 94104, owned of record 1,013,755 (14%) of the outstanding shares of Dodge & Cox Global Bond Fund. Strafe & Co., FBO The Louis Calder Foundation II, P.O. Box 6924, Newark, DE 19714, owned of record 375,956 (5%) of the outstanding shares of Dodge & Cox Global Bond Fund. Capinco C/O US Bank, 800 Nicolett Mall, Mineappolis, MN 55402, owned a record of 1,463,461 (20%) of the outstanding shares of the Dodge & Cox Global Bond Fund. A person owning 25% or more of the outstanding shares of a Fund may be presumed to “control” (as that term is defined in the 1940 Act) such Fund. The Trust knows of no other person who owns beneficially or of record more than 5% of the outstanding shares of any Fund.

I N V E S T M E N T M A N A G E R Dodge & Cox, 555 California Street, 40th Floor, San Francisco, CA 94104, a California corporation, is employed by the Trust as manager and investment adviser of the Funds, subject to the direction of the Board of Trustees. Dodge & Cox is one of the oldest professional investment management firms in the United States, having acted continuously as investment managers since 1930, and has served as manager and investment adviser for the Funds since each Fund’s inception. Dodge & Cox is not engaged in the brokerage business nor in the business of dealing in or selling securities. Its activities are devoted to investment research and the supervision of investment accounts for individuals, trustees, corporations, pension and profit-sharing funds, public entities, and charitable institutions. The Dodge & Cox Stock Fund, Balanced Fund, and Global Bond Fund each pay Dodge & Cox a management fee which is payable monthly at the annual rate of 0.50% of the average daily net asset value of the Fund. The Dodge & Cox Global Stock Fund and International Stock Fund each pay Dodge & Cox a management fee which is payable

36

monthly at the annual rate of 0.60% of the average daily net asset value of the Fund. The Dodge & Cox Income Fund pays Dodge & Cox a management fee which is payable monthly at the annual rate of 0.50% of the average daily net asset value of the Fund up to $100 million and 0.40% of the average daily net asset value of the Fund in excess of $100 million. The Investment Management Agreements with the Dodge & Cox Stock Fund and Income Fund provide that Dodge & Cox will waive its fee for any calendar year to the extent that such fee plus all other ordinary operating expenses paid by the Fund exceed 0.75% and 1%, respectively, of the average daily net asset value of the Fund. No waiver of management fee was required for 2015 under such agreements. Until April 30, 2017, Dodge & Cox has contractually agreed to reimburse the Dodge & Cox Global Bond Fund for all ordinary expenses to the extent necessary to maintain its total fund operating expenses at 0.60% of the average daily net asset value of the Fund. The agreement is renewable annually thereafter and is subject to termination upon 30 days’ written notice by either party prior to the end of the term. Investment management fees received by Dodge & Cox from the Funds for the last three years were as follows:

2015

2014

2013

Dodge & Cox Stock Fund $ 293,725,621 $ 284,657,421 $ 238,546,912

Dodge & Cox Global Stock Fund 37,258,811 30,927,124 19,554,607

Dodge & Cox International Stock Fund 397,371,361 363,818,941 277,562,377

Dodge & Cox Balanced Fund 75,758,904 74,717,761 66,981,438 Dodge & Cox Income Fund 174,080,596 116,721,472 103,980,437 Dodge & Cox Global Bond Fund 0* 0* n/a *Waivers of $353,517 and $131,751 were required for 2015 and 2014, respectively. The contracts may be terminated at any time without penalty upon 60 days written notice by action of the Trustees, shareholders or by Dodge & Cox. The contracts will terminate automatically should there be an assignment thereof. In addition to Dodge & Cox’s fee, each Fund pays other direct expenses, including transfer agent, custodial, accounting, legal, insurance and audit fees; costs of preparing and printing prospectuses and reports sent to shareholders; registration fees and expenses; proxy and shareholder meeting expenses; membership dues for trade associations; legal expenses for Independent Legal Counsel to the Independent Trustees of the Trust; and Trustee fees and expenses. Dodge & Cox furnishes personnel and other facilities necessary for the operation of the Funds for which it receives no additional compensation. Dodge & Cox supervises the operations of the Funds and directs the investment and reinvestment of its assets and furnishes all executive personnel and office space required. Dodge & Cox serves as investment manager of each Subsidiary. Pursuant to the Investment Management Agreement between each Subsidiary and Dodge & Cox, Dodge & Cox does not receive compensation from the Subsidiary for the portfolio management and administrative services it provides to a Subsidiary. The direct expenses of a Subsidiary, including transfer agent, custodial, accounting, legal, insurance and audit fees, organizational expenses, and taxes and governmental fees, are borne by the relevant Fund. Each Investment Management Agreement between the Subsidiary and Dodge & Cox may be terminated at any time without penalty upon 60 days written notice by action of the Subsidiary’s directors or by Dodge & Cox, and will terminate automatically should there be an assignment thereof.

I N V E S T M E N T C O M M I T T E E M E M B E R S As described in the Funds’ Prospectus, the Dodge & Cox Stock Fund’s investments and the equity portion of the Dodge & Cox Balanced Fund are managed by Dodge & Cox’s Investment Policy Committee (IPC), and no one IPC member is primarily responsible for making investment recommendations for the Funds. The IPC also makes asset allocation decisions among equity and debt securities in the Dodge & Cox Balanced Fund. The Dodge & Cox Global Stock Fund’s investments are managed by Dodge & Cox’s Global Stock Investment Policy

37

Committee (GSIPC), and no one GSIPC member is primarily responsible for making investment recommendations for the Fund. The Dodge & Cox International Stock Fund’s investments are managed by Dodge & Cox’s International Investment Policy Committee (IIPC), and no one IIPC member is primarily responsible for making investment recommendations for the Fund. The Dodge & Cox Income Fund’s investments and the debt portion of the Dodge & Cox Balanced Fund are managed by Dodge & Cox’s Fixed Income Investment Policy Committee (FIIPC), and no one FIIPC member is primarily responsible for making investment recommendations for the Funds. The Dodge & Cox Global Bond Fund’s investments are managed by Dodge & Cox’s Global Bond Investment Policy Committee (GBIPC), and no one GBIPC member is primarily responsible for making investment recommendations for the Fund. The research work of Dodge & Cox is organized for comprehensive and continuous appraisal of the economy and of various industries and companies. Supplemental research facilities are used to obtain additional coverage of business and financial developments affecting comparative security values.

Other Accounts Managed By Investment Committee Members The investment committee members may also be responsible for the day-to-day management of other accounts, as indicated by the following table. None of these accounts has an advisory fee based on the performance of the account. Dodge & Cox Stock Fund (number of accounts and total assets is as of December 31, 2015)

Registered Investment Companies (Other Dodge &

Cox Funds) Other Pooled

Investment Vehicles

Other Accounts (Dodge & Cox Separately

Managed Accounts)

IPC Members Charles F. Pohl

Number of Other Accounts Managed 4 3 0

Total Assets in Other Accounts Managed 120,130,964,347 2,386,800,236 0

C. Bryan Cameron


Total Assets in Other Accounts Managed 71,297,932,906 434,799,874 0

Diana S. Strandberg



David C. Hoeft



Wendell W. Birkhofer


Total Assets in Other Accounts Managed 14,269,329,043 367,188,564 7,572,186,612

Steven C. Voorhis Number of Other Accounts Managed 2 2 0


Philippe Barret, Jr. Number of Other Accounts Managed 1 1 0


Kathleen G. McCarthy*



* Ms. McCarthy was appointed to the IPC effective January 15, 2016.

38

Dodge & Cox Global Stock Fund (number of accounts and total assets is as of December 31, 2015)

Registered Investment Companies (Other Dodge

& Cox Funds)

Other Pooled Investment

Vehicles


Managed Accounts)

GSIPC Members Charles F. Pohl



Diana S. Strandberg Number of Other Accounts Managed 4 4 0


David C. Hoeft*



Roger G. Kuo



Steven C. Voorhis



Karol Marcin


Total Assets in Other Accounts Managed 0 1,952,000,362 0

Lily S. Beischer Number of Other Accounts Managed 0 1 0


Raymond J. Mertens



* Mr. Hoeft was appointed to the GSIPC effective January 15, 2016.

Dodge & Cox International Stock Fund (number of accounts and total assets is as of December 31, 2015)


& Cox Funds) Other Pooled

Investment Vehicles


Managed Accounts)

IIPC Members Charles F. Pohl





C. Bryan Cameron Number of Other Accounts Managed 2 2 0


39



Investment Vehicles


Managed Accounts)

Roger G. Kuo Number of Other Accounts Managed 1 2 0


Mario C. DiPrisco


Total Assets in Other Accounts Managed 0 67,611,310 0

Keiko Horkan Number of Other Accounts Managed 0 1 0


Richard T. Callister



Englebert T. Bangayan



Dodge & Cox Balanced Fund (number of accounts and total assets is as of December 31, 2015)



Investment Vehicles


Managed Accounts)

IPC and FIIPC Members Dana M. Emery



Charles F. Pohl



C. Bryan Cameron





Thomas S. Dugan



David C. Hoeft



Wendell W. Birkhofer Number of Other Accounts Managed 1 1 66


40



Investment Vehicles


Managed Accounts)

Steven C. Voorhis



Larissa K. Roesch


Total Assets in Other Accounts Managed 43,125,252,759 0 12,062,508,894

James H. Dignan



Anthony J. Brekke Number of Other Accounts Managed 1 0 5


Adam S. Rubinson Number of Other Accounts Managed 2 1 5


Lucinda I. Johns



Philippe Barret, Jr. Number of Other Accounts Managed 1 1 0


Kathleen G. McCarthy*



* Ms. McCarthy was appointed to the IPC effective January 15, 2016.

Dodge & Cox Income Fund (number of accounts and total assets is as of December 31, 2015)


& Cox Funds)


Vehicles


Managed Accounts)

FIIPC Members Dana M. Emery



Charles F. Pohl



Thomas S. Dugan



Larissa K. Roesch



41


& Cox Funds)


Vehicles


Managed Accounts)

James H. Dignan



Anthony J. Brekke Number of Other Accounts Managed 1 0 5


Adam S. Rubinson Number of Other Accounts Managed 2 1 5


Lucinda I. Johns



Dodge & Cox Global Bond Fund (number of accounts and total assets is as of December 31, 2015)


& Cox Funds)


Vehicles


Managed Accounts)

GBIPC Members Dana M. Emery



Diana S. Strandberg



Thomas S. Dugan



James H. Dignan



Adam S. Rubinson



Lucinda I. Johns



Potential Conflicts of Interest Potential conflicts of interest may arise in connection with the management of multiple accounts, including potential conflicts of interest related to the knowledge and timing of the Funds’ trades, investment opportunities, broker selection, and Fund investments. Because of their roles at Dodge & Cox, investment committee members, separate account portfolio managers, and research analysts may be privy to the size, timing and possible market impact of a Fund’s trades. It is possible that investment committee members could use this information to the

42

advantage of other accounts they manage and to the possible detriment of a Fund. It is possible that an investment opportunity may be suitable for both a Fund and other accounts managed by investment committee members, but may not be available in sufficient quantities for both the Fund and the other accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by a Fund and another account. Dodge & Cox has adopted procedures for allocation of portfolio transactions and investment opportunities across multiple client accounts on a fair and equitable basis over time. With respect to securities transactions for the Funds, Dodge & Cox determines which broker to use to execute each order, consistent with its duty to seek best execution of the transaction. However, with respect to its other accounts, Dodge & Cox may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Dodge & Cox may place separate, non-simultaneous transactions for a Fund and another account which may temporarily affect the market price of the security or the execution of the transaction, or both, to the detriment of a Fund or the other account. Additionally, members of investment committees or their relatives may invest in a Fund and a conflict may arise where they may have an incentive to treat the Fund that they invest in preferentially as compared to other accounts. Conflicts of interest may also arise in cases where Dodge & Cox clients with different strategies (including Funds with different strategies) invest in different parts of an issuer’s capital structure, such as when one client owns debt obligations of an issuer and another client owns equity in the same issuer. For example, if an issuer in which different clients own different classes of securities encounters financial problems, decisions over the terms of any workout will raise conflicts of interest (such as conflicts over proposed waivers and amendments to debt covenants). A debt holder may be better served by a liquidation of the issuer in which it may be paid in full, whereas an equity holder might prefer a reorganization that holds the potential to create value for the equity holders. The Funds may invest in various publicly traded or restricted securities whose shares are also owned by Dodge & Cox or its employees. Dodge & Cox is not obligated to purchase or sell for the Funds any security which Dodge & Cox or its employees purchase or sell for their own account(s) or for the account of any other client. Dodge & Cox may give advice and take action with respect to any of its clients or for its own account which differs from or is inconsistent with the timing or nature of action(s) taken for the Funds. Transactions in a specific security may not be recommended or effected for all client accounts for which such transaction will be recommended or effected at the same time or at the same price. Dodge & Cox employees may invest in the same securities that Dodge & Cox purchases for the Funds to the extent permitted by the Dodge & Cox Code of Ethics. The Code of Ethics requires preclearance of personal securities transactions and minimized conflicts of interest by restricting the type and timing of employee trades. Dodge & Cox research analysts are sometimes invited to events hosted by company management in conjunction with performing their research responsibilities, which could provide an incentive for them to favor those companies over other investments. Acceptance of any gifts and entertainment is subject to restrictions set forth in Dodge & Cox’s Code of Ethics. Although in some cases Dodge & Cox may refrain from taking certain actions or making investments on behalf of clients/Funds because of conflicts (potentially disadvantaging those on whose behalf the actions are not taken or investments not made), in other cases Dodge & Cox may take actions or make investments on behalf of some clients/Funds that have the potential to disadvantage other clients/Funds. Any of the foregoing conflicts of interest will be reviewed on a case-by-case basis. Any review will take into consideration the interests of the relevant clients/Funds, the circumstances giving rise to the conflict, and applicable laws. Clients (and investors in Funds) should be aware that conflicts will not necessarily be resolved in favor of their interests, and Dodge & Cox will attempt to resolve such matters fairly, but even fair resolution may be resolved in favor of other clients, including Funds, which pay Dodge & Cox higher fees. The resolution of any actual or potential conflict of interest may result in Dodge & Cox’s making investment decisions for clients/Funds or groups of clients/Funds on less favorable terms than it would have absent the conflict.

Compensation Compensation of Dodge & Cox Funds’ investment committee members includes a base salary, cash bonus, and a package of employee benefits which are generally available to all salaried employees. Compensation is structured to emphasize the success of Dodge & Cox rather than that of any one individual. Dodge & Cox does not have any “incentive compensation” or “deferred compensation” programs. Compensation is not linked to the

43

distribution of Fund shares or to the performance of any account or Fund. All investment committee members also participate in equity ownership of Dodge & Cox. Each element of compensation is detailed below: Base Salary. Each investment committee member is paid a fixed base salary which is intended to be competitive in light of each member’s experience and responsibilities. Bonus. Bonus payments are based on a number of factors including the profitability of Dodge & Cox and the member’s long-term contributions to the firm. Dodge & Cox’s principles emphasize teamwork and a focus on client needs, and bonuses are structured to emphasize those principles. All full-time employees of Dodge & Cox participate in the annual bonus program. Bonuses are not linked to the volume of assets managed or to measurements of relative or absolute investment returns. Equity Ownership. All investment committee members are shareholders of Dodge & Cox, which is a private, employee-owned S-corporation. A shareholder’s equity interest in Dodge & Cox provides pass-through income of Dodge & Cox’s profits and annual cash distributions based on each shareholder’s proportionate interest. Shareholder distributions are generally determined based on considerations of Dodge & Cox’s working capital requirements, net income generated each year, and estimated tax liabilities associated with the pass-through of Dodge & Cox’s income. Dodge & Cox’s shares are issued and redeemed at book value and may be held only by active employees of the company. Changes in share ownership are controlled by Dodge & Cox’s Board of Directors, whose decisions regarding share ownership are based on each member’s long-term contributions to the firm. Shareholders also may receive a benefit from the appreciation of the book value of their shares, which may be realized when shares are repurchased by Dodge & Cox from the shareholder. Employee Benefit Program. Investment committee members participate in benefit plans and programs available generally to all employees, which includes a qualified, defined-contribution profit sharing plan funded at the maximum allowable amount. The above information regarding compensation of investment committee members is current as of December 31, 2015.

44

Ownership of Securities The following table indicates the dollar range of securities of each Dodge & Cox Fund beneficially owned by the Fund’s investment committee members as of December 31, 2015.

AGGREGATE DOLLAR RANGE OF SECURITIES IN THE FUND

Dodge & Cox Stock Fund

Dodge & Cox Balanced Fund

Investment Policy Committee Charles F. Pohl G G

C. Bryan Cameron G G

Diana S. Strandberg G G

David C. Hoeft G G

Wendell W. Birkhofer G F

Steven C. Voorhis G G

Philippe Barret, Jr. E E

Kathleen G. McCarthy* E E

Dodge & Cox Global

Stock Fund

Global Stock Investment Policy Committee Charles F. Pohl G

Diana S. Strandberg G

David C. Hoeft* G

Roger G. Kuo G

Steven C. Voorhis G

Karol Marcin G

Lily S. Beischer G

Raymond J. Mertens G

Dodge & Cox International Stock Fund

International Investment Policy Committee Charles F. Pohl G

Diana S. Strandberg G

C. Bryan Cameron G

Roger G. Kuo G

Mario C. DiPrisco E

Keiko Horkan G

Richard T. Callister G

Englebert T. Bangayan G

Dodge & Cox Balanced Fund

Dodge & Cox Income Fund

Fixed Income Investment Policy Committee Dana M. Emery G G

Charles F. Pohl G G

Thomas S. Dugan G G

Larissa K. Roesch F F

45

RANGES: A—NONE; B—$1-$10,000; C—$10,001-$50,000; D—$50,001-$100,000; E—$100,001-$500,000; F—$500,001-$1,000,000; G—MORE THAN $1,000,000.

* Ms. McCarthy and Mr. Hoeft were appointed as policy committee members effective January 15, 2016.

Dodge & Cox’s profit sharing plan is 93% invested in shares of the Funds. As of December 31, 2015, the profit sharing plan held $168,022,640 in the Funds.

O T H E R S E R V I C E P R O V I D E R S

Custodian and Transfer Agent State Street Bank and Trust Company, P.O. Box 8422, Boston, Massachusetts 02266-8422 (800-621-3979), at its offices of its branches and agencies throughout the world, acts as custodian of all cash and securities of the Funds and serves as fund accounting agent for the Funds. As Foreign Custody Manager for the Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox Global Bond Fund, the bank selects and monitors foreign sub-custodian banks, selects and evaluates non-compulsory foreign depositaries, and furnishes information relevant to the selection of compulsory depositaries. Boston Financial Data Services, P.O. Box 8422, Boston, Massachusetts 02266-8422 (800-621-3979) acts as transfer and dividend disbursing agent for the Funds.

Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP, Three Embarcadero Center, San Francisco, CA 94111, is the Independent Registered Public Accounting Firm to the Funds, subject to annual appointment by the Board of Trustees. PricewaterhouseCoopers LLP conducts an annual audit of the accounts and records of each Fund, reports on the Funds’ annual financial statements, and performs tax and accounting advisory services.

Independent Legal Counsel to the Independent Trustees Ropes & Gray LLP, Three Embarcadero Center, Suite 2200, San Francisco, CA 94111, currently serves as Independent Legal Counsel to the Independent Trustees. A determination with respect to the independence of the Independent Legal Counsel is made at least annually by the Independent Trustees, as prescribed by the 1940 Act and the rules promulgated thereunder.

Legal Counsel to the Funds Dechert LLP, 1900 K Street, NW, Washington, DC 20006, currently serves as legal counsel to the Funds.

James H. Dignan F G

Anthony J. Brekke E E

Adam S. Rubinson G G

Lucinda I. Johns E E

Dodge & Cox

Global Bond Fund

Global Bond Investment Policy Committee

Dana M. Emery G

Diana S. Strandberg F

Thomas S. Dugan E

James H. Dignan E

Adam S. Rubinson G

Lucinda I. Johns E

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B R O K E R A G E A L L O C A T I O N A N D O T H E R P R A C T I C E S The Investment Management Agreements provide that Dodge & Cox is responsible for selecting members of securities exchanges, brokers and dealers (brokers) for the execution of a Fund’s portfolio transactions and, when applicable, the negotiation of commissions. All decisions and placements are made in accordance with the following principles:

1. Dodge & Cox’s objective in selecting brokers and effecting portfolio transactions in securities is to seek best execution with respect to portfolio transactions. In deciding what constitutes best execution, the determinative factor is not simply quantitative, e.g., the lowest possible transaction cost, but also whether the transaction represents the best qualitative execution. The determination of what may constitute best execution of a securities transaction by a broker involves a number of considerations, including without limitation, the overall direct net economic result to a Fund (involving both price paid or received and any commissions and other costs paid), the efficiency with which the transaction is effected, the ability to effect the transaction at all where a large block is involved and to search for and obtain liquidity to minimize market impact, availability of the broker to stand ready to execute possibly difficult transactions, and the financial strength and stability of the broker. Because determining best execution involves qualitative judgments on a variety of factors, Dodge & Cox does not use a single basis of measurement that can be applied to all trades. Rather, Dodge & Cox views best execution as a process that should be evaluated over time as part of an overall relationship with a broker rather than on a trade-by-trade basis. Therefore, Dodge & Cox focuses on establishing the appropriate level of oversight, checks and balances, and documentation of best execution processes.

2. Factors used to select brokers and/or electronic trading platforms to execute equity transactions include, but are not limited to, Dodge & Cox’s knowledge of negotiated commission rates; the nature of the security being traded; the size and type of the transaction; research and brokerage services provided by the broker; the nature and character of the markets for the security to be purchased or sold; the desired timing of the trade; the activity existing and expected in the market for the particular security; confidentiality; the execution, clearance, and settlement capabilities as well as the reputation and perceived operational/financial soundness of the broker; Dodge & Cox’s knowledge of actual or apparent operational problems of any broker; the broker’s historical transaction and execution services; and the reasonableness of spreads or commissions. Dodge & Cox does not select brokers solely on the basis of purported or “posted” commissions, nor does it always seek in advance competitive bidding for the most favorable commission applicable to any particular portfolio transaction. Although Dodge & Cox generally seeks competitive commissions, it will not necessarily select a broker based on the lowest commission charged in a given transaction. Dodge & Cox may not pay the lowest available commission when it believes that a broker charging a higher commission offers greater liquidity or improved price or execution; Dodge & Cox may also select a broker in recognition of research and/or brokerage services provided or expected to be provided.

When effecting a debt securities transaction in the secondary market, Dodge & Cox generally will select brokers who are deemed likely to provide best execution for the specific transaction based on certain factors. These factors may include, but are not limited to, access to offerings; market familiarity; integrity (ability to maintain confidentiality); history of competitive pricing; trade settlement capability; expertise; financial condition (credit risk); and reliability and willingness to commit capital.

3. Transactions on stock exchanges involve the payment of brokerage commissions. In transactions on stock exchanges in the United States and overseas, these commissions are negotiated. Equity securities will ordinarily be purchased in the primary markets, whether over-the-counter or listed; however, listed securities may be purchased in the over-the-counter market if such market provides best execution and liquidity. In underwritten offerings, the price includes a disclosed selling concession.

For debt securities, it is expected that purchases and sales will ordinarily be transacted with the issuer, the issuer’s underwriter, or with a primary market maker acting as principal on a net basis, with no brokerage commission being paid by the Fund. However, the price of the securities generally includes compensation which is not disclosed separately. Transactions placed through dealers who are serving as primary market makers reflect the spread between the bid and asked prices.

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4. Dodge & Cox is authorized to allocate brokerage business to brokers who have provided brokerage and research services, as such services are defined in Section 28(e) of the Securities Exchange Act of 1934 (1934 Act), for a Fund and/or other accounts, if any, for which Dodge & Cox exercises investment discretion (as defined in Section 3(a)(35) of the 1934 Act) and, as to transactions as to which fixed minimum commission rates are not applicable (sometimes referred to as “soft dollar” arrangements). Such allocation may cause a Fund to pay a commission for effecting a securities transaction in excess of the amount another broker would have charged for effecting that transaction, if Dodge & Cox determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research services provided by such broker, viewed in terms of either that particular transaction or with Dodge & Cox’s overall responsibilities with respect to a Fund and the other accounts, if any, as to which it exercises investment discretion. In reaching such determination, Dodge & Cox is not required to place or attempt to place a specific cash (i.e., “hard dollar”) value on the research or execution services of a broker or on the portion of any commission reflecting brokerage or research services. In demonstrating that such determinations were made in good faith, Dodge & Cox will be prepared to show that all commissions were allocated and paid for purposes contemplated by a Fund’s brokerage policy; that commissions were paid only for products or services which provide lawful and appropriate assistance to Dodge & Cox in the performance of its investment decision-making responsibilities; and that the commissions paid were within a reasonable range.

The determination that commissions are within a reasonable range will be based on any available information as to the level of commissions known to be charged by other brokers on comparable transactions, and will also take into account a Fund’s policies that (i) obtaining a low commission is deemed secondary to obtaining a favorable securities price, since it is recognized that usually it is more beneficial to a Fund to obtain a favorable price than to pay the lowest commission; and (ii) the quality, comprehensiveness and frequency of research services which are provided to Dodge & Cox are useful to Dodge & Cox in performing its advisory services under its Investment Management Agreement with a Fund. Research services provided by brokers to Dodge & Cox are considered to be in addition to, and not in lieu of, services required to be performed by Dodge & Cox under its Investment Management Agreement. Research furnished by brokers through whom a Fund effects securities transactions may be used by Dodge & Cox for any of its accounts, and not all such research may be used by Dodge & Cox for the Funds.

The research services received by Dodge & Cox may be produced by the brokers effecting the trade (“proprietary research”), or by a third party broker that is not involved in effecting the trade (“third party research”). Research services received by Dodge & Cox include, without limitation, information on the economy, industries, groups of securities, and individual companies; statistical information and databases; accounting and tax law interpretations; political developments; legal and regulatory developments affecting portfolio securities; pricing and appraisal services; industry consultants; issuer disclosure services; credit, risk measurement, and performance analysis; and analysis of corporate responsibility issues. Research services may also include providing opportunities to meet with company executives, which allows Dodge & Cox analysts to gather information about a specific company, industry, or sector and to directly evaluate the strengths and weaknesses of an issuer’s management team.

The receipt of investment research and information and related services permits Dodge & Cox to supplement its own research and analysis and makes available to Dodge & Cox the views and information of individuals and research staffs of other firms, including persons having special expertise on certain companies, industries, areas of the economy, market factors, or other areas.

Research services are subject to internal analysis before being incorporated into Dodge & Cox’s investment process.

Dodge & Cox may use brokerage commissions to acquire research and related services from third party vendors and brokers through commission-sharing arrangements (CSAs). CSAs are agreements between an investment adviser and a broker in which the executing broker allocates a portion of brokerage commissions to a “commission pool,” which can be used to acquire third party research from another broker. Dodge & Cox may also use “step-outs” or similar transactions with brokers. In a step-out arrangement, the investment adviser executes a trade through one broker but instructs that broker to step-

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out all or a portion of the trade to a second broker that provides research and/or brokerage services to Dodge & Cox. This second broker will clear and settle, and receive commissions for, the stepped-out portion of the trade.

Dodge & Cox may also use hard dollars out of its own assets to pay for third party research. 5. Purchases and sales of portfolio securities within the United States other than on a securities exchange will

be executed with primary market makers acting as principal except where, in the judgment of Dodge & Cox, better prices and execution may be obtained on a commission basis or from other sources.

Insofar as known to management, no Trustee or officer of the Trust, nor Dodge & Cox or any person affiliated with any of them, has any material direct or indirect interest in any broker employed by or on behalf of a Fund. There is no fixed method used in determining which brokers receive which order or how many orders. Periodically Dodge & Cox reviews the current commission rates and discusses the execution capabilities and the services provided by the various brokers Dodge & Cox is utilizing in the execution of orders. Research services furnished by the brokers through whom Dodge & Cox effects security transactions for a Fund may be used in servicing some or all of Dodge & Cox’s accounts, however, all such services may not be used by Dodge & Cox in connection with a Fund. Aggregate brokerage commissions, excluding underwriting concessions, paid by Dodge & Cox Stock Fund, Global Stock Fund, International Stock Fund and Balanced Fund during the last three years were as follows:

2015

2014

2013

Dodge & Cox Stock Fund $8,000,224 $ 11,306,765 $ 12,081,421

Dodge & Cox Global Stock Fund 1,789,426 1,941,845 1,312,200

Dodge & Cox International Stock Fund 22,502,148 22,114,437 13,590,488

Dodge & Cox Balanced Fund 1,344,455 1,815,578 3,425,099

Changes to brokerage commissions paid by the Funds are attributable to a number of factors, including

changes in assets under management, cash flows, portfolio turnover, and the proportion of shares traded electronically or in ADR form. It is not possible to identify a single factor as the primary cause.

In 2015, Dodge & Cox Stock Fund, Global Stock Fund, International Stock Fund, and Balanced Fund paid brokerage commissions of $7,928,082, $1,777,097, $22,461,751, and $1,327,696, respectively, from aggregate portfolio transactions of $17,715,856,192, $2,689,472,434, $24,167,739,253, and $3,110,903,594, respectively, to brokers that provided research services.

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As of December 31, 2015, Dodge & Cox Funds held the following securities of their regular broker-dealers or parent entities:

Issuer

Value

Dodge & Cox Stock Fund Bank of America Corp. $ 1,860,610,356 Goldman Sachs Group, Inc. 1,206,603,804 JPMorgan Chase & Co. 1,100,403,156

Dodge & Cox Global Stock Fund Bank of America Corp. 150,096,672

Credit Suisse Group AG 98,702,568 Goldman Sachs Group, Inc. 49,004,537

Dodge & Cox International Stock Fund Credit Suisse Group AG 1,526,397,979

Barclays PLC 1,440,052,935 Dodge & Cox Balanced Fund Wells Fargo & Co. 663,481,016

JPMorgan Chase & Co. 482,323,625 Bank of America Corp. 385,842,720

Goldman Sachs Group, Inc. 213,031,860 Citigroup, Inc. 108,883,753 HSBC Holdings PLC 50,067,213 Barclays PLC 22,758,784

Dodge & Cox Income Fund Bank of America Corp. 864,011,066

Citigroup, Inc. 626,050,363 HSBC Holdings PLC 583,814,439 Barclays PLC 269,295,815 JPMorgan Chase & Co. 265,882,799 Wells Fargo & Co. 253,229,016

Dodge & Cox Global Bond Fund HSBC Holdings PLC 1,107,034 Citigroup, Inc. 1,079,028 JPMorgan Chase & Co. 688,360 Bank of America Corp. 667,139 Barclays PLC 586,693

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Investment decisions for a Fund are made independently from those of the other Funds and other accounts managed by Dodge & Cox. It may frequently develop that the same investment decision is made for more than one account. Simultaneous transactions may often occur when the same security is suitable for the investment objective of more than one account. When two or more accounts are simultaneously engaged in the purchase or sale of the same security, the transactions are averaged as to price and allocated as to amount in accordance with a formula equitable to each account. It is recognized that in some cases this system could have a detrimental effect on the price or availability of the security as far as a Fund is concerned. In other cases, however, it is believed that the ability of a Fund to participate in volume transactions may produce better executions for the Fund.

C A P I T A L S T O C K The Trust was organized as a Delaware statutory trust in 1998. Each of the six Dodge & Cox Funds is a series of the Trust, and each has a single class of shares. Each share evidences a beneficial ownership interest in a Fund, and there is no limit to the number of shares that may be issued. All shares of a Fund have the same rights as to redemption, dividends, and in liquidation. All shares issued are fully paid and non-assessable, are transferable, and are redeemable at net asset value upon demand of the shareholder. Shares have no preemptive or conversion rights. The Trust is not required to hold annual meetings of shareholders. Three of the Funds existed with a different legal form before they were reorganized as series of the Trust in 1998 following shareholder votes. Dodge & Cox Balanced Fund was established in 1931; Dodge & Cox Stock Fund in 1965; Dodge & Cox Income Fund in 1989; Dodge & Cox International Stock Fund in 2001; Dodge & Cox Global Stock Fund in 2008; and Dodge & Cox Global Bond Fund in 2014.

P U R C H A S E , R E D E M P T I O N , A N D P R I C I N G O F S H A R E S The procedures for purchasing and redeeming shares of a Fund are described in the Funds’ Prospectus, which is incorporated herein by reference.

N E T A S S E T V A L U E P E R S H A R E The purchase and redemption price of a Fund’s shares is equal to a Fund’s net asset value per share (NAV) or share price. A Fund determines its NAV by subtracting a Fund’s total liabilities (including accrued expenses and dividends payable) from its total assets (the market value of the securities a Fund holds plus cash and other assets, including income accrued but not yet received) and dividing the result by the total number of shares outstanding. The NAV of a Fund is normally calculated as of the close of trading on the New York Stock Exchange (NYSE), generally 4:00 p.m. Eastern Time, each day that the NYSE is open for business. The NYSE is closed on the following days: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Determination of NAV (and subscriptions and redemptions of shares) for a Fund may be suspended when (a) the NYSE is closed, other than customary weekend and holiday closings, (b) trading on the NYSE is restricted, (c) an emergency exists as a result of which disposal by a Fund of securities owned by it is not reasonably practicable or it is not reasonably practicable for a Fund to fairly determine the value of its net assets, or (d) a governmental body having jurisdiction over a Fund may by order permit such a suspension for the protection of a Fund’s shareholders; provided that applicable rules and regulations of the SEC (or any succeeding governmental authority) shall govern as to whether the conditions prescribed in (b), (c), or (d) exist.

For purposes of calculating the NAV, portfolio securities and other financial instruments for which market quotes are readily available are valued at market value. Listed securities are generally valued using the official quoted close price or the last sale on the exchange that is determined to be the primary market for the security. Debt securities and non-exchange traded derivatives are valued based on prices received from independent pricing services which utilize both dealer-supplied valuations and pricing models. Pricing models may consider quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. Exchange-traded derivatives are valued at the settlement price determined by the relevant exchange. Foreign currency forward contracts are valued using the prevailing forward exchange rate. Security values are not discounted based on the size of a Fund’s position. Short-term securities less than 60 days to maturity may be valued at amortized cost if amortized cost approximates current value. Mutual funds are valued at their respective net asset values.

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Trading in securities denominated in foreign currencies and traded on European, African, and Asian securities exchanges and over-the-counter markets is normally completed well before the close of business of the NYSE on each day that the NYSE is open. Trading in non-U.S. securities generally, or in a particular country or countries, may not take place on every NYSE business day. Furthermore, trading takes place in various foreign markets on days that are not business days for the NYSE and on which the Fund’s NAV is not calculated. Thus, the calculation of the Fund’s NAV does not take place contemporaneously with the determination of the prices of many of the portfolio securities used in the calculation and, if events materially affecting the value of these foreign securities occur, the securities are valued at fair value.

P U R C H A S E S I N - K I N D Dodge & Cox may, at its discretion, permit you to purchase shares of a Fund through the exchange of other securities you own. Any securities exchanged (i) must meet the investment objective, policies and limitations of the Fund; (ii) must have a readily ascertainable market value; (iii) must be liquid; (iv) must not be subject to restrictions on resale; and (v) the market value of any securities exchanged, plus any cash, must be at least $25 million; Dodge & Cox reserves the right to make exceptions to this minimum at its discretion. Dodge & Cox has unlimited discretion to accept or reject any securities submitted for exchange. Fund shares purchased in exchange for securities generally may not be redeemed or exchanged until the transfer has settled. The basis of the exchange will depend upon the net asset value of the shares purchased and securities exchanged. Securities accepted by the Fund will be valued in the same manner as the Fund values its assets, and such value will include any interest accrued on the securities prior to their delivery to the Fund. The securities become the property of the Fund as of the date of the exchange, at which time any interest, dividends, subscription, or other rights that are attached to the securities also become the property of the Fund.

R E D E M P T I O N S I N K I N D The Funds reserve the right, if conditions exist which make cash payments undesirable, to honor any request for redemption by making payment in whole or in part in readily marketable securities chosen by a Fund and valued as they are for purposes of computing a Fund’s NAV (a redemption-in-kind). If payment is made in securities, a shareholder may incur transaction expenses in converting these securities to cash. The Funds have elected, however, to be governed by Rule 18f-1 under the 1940 Act, as a result of which a Fund is obligated to redeem shares, with respect to any one shareholder during any 90-day period, solely in cash up to the lesser of $250,000 or 1% of the net asset value of the Fund at the beginning of the period.

T A X A T I O N O F T H E F U N D S Set forth below is a discussion of certain U.S. federal income tax issues concerning the Funds and the purchase, ownership, and disposition of Fund shares. This discussion does not purport to be complete or to deal with all aspects of federal income taxation that may be relevant to shareholders in light of their particular circumstances. This discussion is based upon present provisions of the Internal Revenue Code of 1986, as amended (Code), the regulations promulgated thereunder, and judicial and administrative authorities, all of which are subject to change, which change may be retroactive. You should consult your own tax adviser with regard to the federal tax consequences of the purchase, ownership, or disposition of Fund shares, as well as the tax consequences arising under the laws of any state, foreign country, or other taxing jurisdiction. Each Fund intends to qualify each year as a regulated investment company under the Code. Accordingly, each Fund must, among other things, (a) derive in each taxable year at least 90% of its gross income from dividends, interest, payments with respect to certain securities loans, and gains from the sale or other disposition of stock, securities or foreign currencies, net income from certain publicly traded partnerships or other income derived with respect to its business of investing in such stock, securities or currencies; and (b) diversify its holdings so that, at the end of each fiscal quarter, (i) at least 50% of the value of the Fund’s total assets is represented by cash and cash items, U.S. Government securities, the securities of other regulated investment companies and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the value of the Fund’s total assets and 10% of the outstanding voting securities of such issuer, and (ii) not more than 25% of the value of its total assets is invested in the securities of any one issuer (other than U.S. Government securities and the securities of other regulated investment companies), or in two or more controlled issuers in the same or similar or related trades or businesses, or in certain publicly traded partnerships.

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As a regulated investment company, each Fund generally is not subject to U.S. federal income tax on income and gains that it distributes to shareholders, if at least 90% of each Fund’s investment company taxable income (which includes, among other items, dividends, interest, and the excess of any net short-term capital gains over net long-term capital losses)and any net tax-exempt income for the taxable year is distributed. Each Fund intends to distribute substantially all of such income. If, in any taxable year, a Fund fails to qualify as a regulated investment company under the Code or fails to meet the distribution requirement, it would be taxed in the same manner as an ordinary corporation and distributions to its shareholders would not be deductible by the Fund in computing its taxable income. In addition, the Fund’s distributions, to the extent derived from the Fund’s current or accumulated earnings and profits, would constitute dividends which are generally taxable to shareholders as ordinary income, even if those distributions are attributable (wholly or partly) to net long-term capital gains. If a Fund fails to qualify as a regulated investment company in any year, it must pay out its earnings and profits accumulated in that year in order to qualify again as a regulated investment company. Amounts not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% excise tax at the Fund level. To avoid the tax, each Fund must generally distribute during each calendar year an amount at least equal to the sum of (1) 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year, (2) 98.2% of its capital gains in excess of its capital losses (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year, and (3) all ordinary income and capital gains for previous years that were not distributed or taxed to the Fund during such years. To avoid application of the excise tax, each Fund intends to make distributions in accordance with the calendar year distribution requirement. Certain deferrals, elections and adjustments may apply in computing a Fund’s taxable income and net gains and in calculating the required distribution under the excise tax. You need to be aware of the possible tax consequences when:

You sell Fund shares, including an exchange from one Fund to another. A Fund makes a distribution to your account.

T A X E S O N F U N D R E D E M P T I O N S If your shares are held in a taxable account, you will generally have a taxable capital gain or loss if you sell your Fund shares or exchange them for shares of a different Fund. The amount of the gain or loss and the rate of tax will depend primarily upon how much you paid for the shares (your "cost basis"), how much you sold them for, and how long you held them. Your total cost basis is generally the original amount paid for shares in a Fund, plus the value of reinvested dividends and capital gains distributions. At the time you sell shares from a Fund, you should inform the Fund of your cost selection for tax reporting purposes, or you should specify in advance a standing cost basis method for your account. For tax reporting purposes, the cost basis of shares that you sell must be determined using a method acceptable to the IRS. Such methods include (but are not limited to) the “first in first out" (FIFO) method and the "average cost" method. Unless you specify an alternate cost basis method, the Funds will default to the average cost method when calculating cost basis. “Covered shares” are generally Fund shares that are acquired on or after January 1, 2012. If you sell or exchange covered shares within a taxable account, the Funds will report the gross proceeds, cost basis, and holding period of the shares sold on Form 1099-B by February 15th. The Funds will also report this information to the IRS. “Non-covered shares” generally are those Fund shares acquired prior to January 1, 2012, or shares transferred into your account without corresponding cost basis information. If you sell or exchange non-covered shares from a taxable account, the Funds will report the gross proceeds to you and to the IRS on Form 1099-B. If the Funds have average cost basis information for the non-covered shares sold, the information will be reported to you on a separate statement mailed along with Form 1099-B. The information on the separate statement is not reported to the IRS. Additional information about cost basis reporting is available at dodgeandcox.com/costbasis. Any loss realized on a sale or exchange of Fund shares will be disallowed to the extent the shares disposed of are replaced (including through reinvestment of dividends) within a period of 61 days, beginning 30 days before and ending 30 days after the shares are disposed of. In such a case the basis of the acquired shares will be adjusted to reflect the disallowed loss. If you hold Fund shares for six months or less and during that period receive a

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distribution taxable to you as long-term capital gain, any loss realized on the sale of such shares during such six-month period would be a long-term capital loss to the extent of such distribution.

To help you maintain accurate records, the Funds will send you a confirmation immediately following each transaction (except for systematic purchases) and quarterly and year-end statements detailing all transactions in your account during the period.

T A X E S O N F U N D D I S T R I B U T I O N S The following summary does not apply to retirement accounts, such as IRAs, which are tax-deferred until shareholders withdraw money from them.

Distributions of investment company taxable income are taxable to you, whether paid in cash or reinvested in Fund shares. Dividends paid by a Fund to a corporate shareholder, to the extent such dividends are attributable to dividends received by the Fund from U.S. corporations, may, subject to limitation, be eligible for the dividends received deduction. Holders of a Dodge & Cox Fund, other than the Income Fund, may be able to take such a deduction. However, the alternative minimum tax applicable to corporations may reduce the value of the dividends received deduction.

A portion of the dividends paid to you by a Fund may be qualified dividends subject to a maximum tax rate of 15% or 20% (depending on whether the individual’s income exceeds certain threshold amounts). In general, income dividends from domestic corporations and qualified foreign corporations will be permitted this favored federal tax treatment. Distributions of qualified dividends will be eligible for these reduced rates of taxation only if you own your shares for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of any dividend. Dividends from interest earned by a Fund on debt securities and dividends received from unqualified foreign corporations will continue to be taxed at the higher ordinary income tax rates.

The excess of net long-term capital gains over net short-term capital losses realized, distributed and properly reported by a Fund, whether paid in cash or reinvested in Fund shares, will generally be taxable to you as long-term gain, regardless of how long you have held Fund shares. Distributions of net capital gains from assets held by a Fund for one year or less will be taxed as ordinary income.

A portion of a Fund’s distributions may be treated as a return of capital to you for federal income tax purposes. In such a case, the return of capital would not be currently taxable, but would instead reduce your tax basis in your Fund shares, which would generally result in an increase in any taxable gain, or a reduction in any taxable loss, on the subsequent sale of your shares. In February, you will be sent Form 1099-DIV indicating the tax status of any distributions paid to you during the prior year. This information will also be reported to the IRS. You will generally be taxed on distributions you receive from a Fund. If a Fund declares a dividend in October, November or December but pays it in January, you may be taxed on the dividend as if you received it in the previous year.

P A S S - T H R O U G H O F F O R E I G N T A X P A Y M E N T S ( D O D G E & C O X G L O B A L S T O C K F U N D A N D D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D ) The Funds may be subject to foreign withholding taxes on income from certain foreign securities. This, in turn, could reduce each Fund’s income dividends paid to you. If more than 50% of a Fund’s total assets at the end of a taxable year is invested in foreign securities and the Fund distributes at least 90% of its investment company taxable income, the Fund may elect to pass through to you your pro rata share of foreign taxes paid by the Fund. If this election is made, you will be required to include in gross income (in addition to taxable dividends actually received) your pro rata share of the foreign taxes paid by the Fund, and will be entitled either to deduct your pro rata share of foreign income and similar taxes in computing your taxable income or to use it as a foreign tax credit against your U.S. federal income tax liability, subject to limitations. No deduction for foreign taxes may be claimed by individuals who do not itemize deductions, but such shareholders may be eligible to claim the foreign tax credit. No credit may be claimed by you with respect to Fund shares that you have held less than 16 days during the 31-day period beginning 15 days before the ex-dividend date of any dividend. You will be notified within 60 days after the close of each Fund’s taxable year whether the foreign taxes paid by the Fund will “pass through” for that year. Under certain circumstances, a Fund may make an investment or take other actions intended to permit the pass-through of foreign tax payments to eligible shareholders; however, tax considerations

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do not form part of any Fund’s primary investment strategies and no Fund is required to consider the tax consequences of its investments to any particular shareholder or group of shareholders.

Generally, a credit for foreign taxes is subject to the limitation that it may not exceed your U.S. tax attributable to your foreign source taxable income. For this purpose, if the pass-through election is made for a Fund, the source of the Fund’s income flows through to you. Gains from the sale of securities may be treated as derived from U.S. sources and certain currency fluctuation gains, including fluctuations gains from foreign currency denominated debt securities, and receivables and payables, may be treated as ordinary income derived from U.S. sources. The limitation on foreign tax credit is applied separately to foreign source passive income (as defined for purposes of the foreign tax credit), including the foreign source passive income passed through by the Funds. You may be unable to claim a credit for the full amount of your proportionate share of the foreign taxes paid by the Funds. If a Fund is not eligible to make the election to “pass through” to you its foreign taxes, the foreign income taxes it pays generally will reduce investment company taxable income, and the distributions by the Fund will be treated as United States source income.

The foregoing is only a general description of the foreign tax credit. Because application of the credit depends on the particular circumstances of each shareholder, shareholders are advised to consult their own tax advisers.

E F F E C T O F F O R E I G N C U R R E N C Y G A I N S A N D L O S S E S O N D I S T R I B U T I O N S ( D O D G E & C O X G L O B A L S T O C K F U N D , D O D G E & C O X I N T E R N A T I O N A L S T O C K F U N D , D O D G E & C O X G L O B A L B O N D F U N D ) Under the Code, gains or losses attributable to fluctuations in foreign currency exchange rates that occur between the time a Fund accrues income or other receivables or accrues expenses or other liabilities denominated in a foreign currency and the time the Fund actually collects such receivables or pays such liabilities generally are treated as ordinary income or ordinary loss. Similarly, on disposition of some investments, including debt securities and certain forward contracts denominated in a foreign currency, gains or losses attributable to fluctuations in the value of foreign currency between the date of acquisition of the security or contract and the date of disposition also are treated as ordinary gain or loss. (The Funds may elect to treat gains and losses on the disposition of certain forward foreign currency contracts as capital gains and losses.) These ordinary gains and losses generally may increase or decrease the amount of a Fund’s net investment income to be distributed to you as ordinary income. For example, fluctuations in exchange rates may increase the amount of income that a Fund must distribute in order to qualify for treatment as a regulated investment company and to prevent application of an excise tax on undistributed income. Alternatively, fluctuations in exchange rates may decrease or eliminate income available for distribution. If foreign currency losses exceed other net investment income during a taxable year, a Fund would not be able to make ordinary dividend distributions, or distributions made before the losses were realized would be recharacterized as a return of capital to you for federal income tax purposes, rather than as an ordinary dividend, reducing your basis in your Fund shares.

F E D E R A L T A X T R E A T M E N T O F F O R E I G N C U R R E N C Y T R A N S A C T I O N S A N D F U T U R E S The Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, and Dodge & Cox Global Bond Fund may enter into certain forward foreign currency transactions that may be designated as Section 1256 contracts or straddles. All of the Funds may enter into futures contracts which may be treated as Section 1256 contracts. Transactions that are considered Section 1256 contracts will be considered to have been closed at the end of each Fund’s fiscal year and any gains or losses will be recognized for tax purposes at that time. Such gains or losses from the normal closing or settlement of such transactions will be characterized as 60% long-term capital gain or loss and 40% short-term capital gain or loss regardless of the holding period of the instrument (ordinary income or loss for foreign exchange contracts). Each Fund will be required to distribute net gains on such transactions to shareholders even though it may not have closed the transaction or received cash to pay such distributions.

Certain foreign currency transactions that offset a foreign dollar-denominated bond or currency position may be considered straddles for tax purposes, in which case a loss on any position in a straddle will be subject to deferral to the extent of unrealized gain in an offsetting position. The holding period of the securities or certain currency positions comprising the straddle will be deemed not to begin until the straddle is terminated.

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In order for each Fund to continue to qualify as a regulated investment company, at least 90% of its gross income for a taxable year must be derived from qualifying income, i.e., dividends, interest, income derived from loans of securities, and gains from the sale of securities or currencies. Tax regulations could be issued limiting the extent that net gains realized from foreign forward exchange contracts on currencies or certain other foreign currency gains are qualifying income for purposes of the 90% requirement.

T R A N S A C T I O N S I N S W A P S A N D O T H E R D E R I V A T I V E S Generally, hedging transactions and certain other derivatives transactions, including options, futures and forward contracts undertaken by a Fund, may result in “straddles” for U.S. federal income tax purposes. In some cases, the straddle rules also could apply in connection with swap agreements. The straddle rules may affect the timing and character of gains (or losses) realized by a Fund. In addition, losses realized by a Fund on positions that are part of a straddle may be deferred under the straddle rules, rather than being taken into account in calculating the taxable income for the taxable year in which such losses are realized. Because only a few regulations implementing the straddle rules have been promulgated, the tax consequences of transactions in options, futures, forward contracts, swap agreements, and certain other derivatives to a Fund are not entirely clear. The transactions may increase the amount of short-term capital gain realized by a Fund which is taxed as ordinary income when distributed to shareholders. A Fund may make one or more of the elections available under the Internal Revenue Code which are applicable to straddles. If a Fund makes any of the elections, the amount, character and timing of the recognition of gains or losses from the affected straddle positions will be determined under rules that vary according to the election(s) made. The rules applicable under certain of the elections operate to accelerate the recognition of gains or losses from the affected straddle positions. Because application of the straddle rules may affect the character of gains or losses, defer losses and/or accelerate the recognition of gains or losses from the affected straddle positions, the amount which must be distributed to shareholders, and which will be taxed to shareholders as ordinary income or long-term capital gain, may be increased or decreased substantially as compared to a fund that did not engage in such derivatives transactions. Rules governing the tax aspects of swap agreements are in a developing stage and are not entirely clear in certain respects. Accordingly, while the Funds intend to account for such transactions in a manner they deem to be appropriate, the IRS might not accept such treatment. If it did not, the status of a Fund as a regulated investment company might be affected. Certain requirements that must be met under the Internal Revenue Code in order for a Fund to qualify as a regulated investment company, including the qualifying income and diversification requirements applicable to a Fund’s assets, may limit the extent to which a Fund will be able to engage in transactions in options, futures contracts, forward contracts, swap agreements, and certain other derivatives. In addition, the use of swaps or other derivatives could adversely affect the character (capital gain vs. ordinary income) of the income recognized by the Funds for federal income tax purposes, as well as the amount and timing of such recognition, as compared to a direct investment in underlying securities, and could result in a Fund’s recognition of income prior to the receipt of any corresponding cash. As a result of the use of swaps and derivatives, a larger portion of the Fund’s distributions may be treated as ordinary income than would have been the case if the Fund did not enter into such swaps or derivatives. The tax treatment of swap agreements and other derivatives may also be affected by future legislation or Treasury Regulations and/or guidance issued by the IRS that could affect the character, timing and/or amount of the Fund’s taxable income or gains and distributions made by the Fund.

P F I C S E C U R I T I E S A Dodge & Cox Fund, other than the Income Fund, may invest in securities of foreign entities that could be deemed for tax purposes to be passive foreign investment companies (PFICs). In general, a foreign corporation is classified as a PFIC if at least one-half of its assets constitute investment-type assets, or 75% or more of its gross income is investment-type income. The Fund intends to mark-to-market these securities and recognize any realized or unrealized gains at the end of its fiscal year. Deductions for losses are allowable only to the extent of any current or previously recognized gains. These gains (reduced by allowable losses) are treated as ordinary

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income that the Fund may be required to distribute, even though it has not sold the securities. There can be no assurance that a Fund will be able to identify all investments that may be classified as PFICs or that it will be able to make the mark-to-market election with respect to all PFICs. In such an event tax and interest charges may be imposed on the Fund with respect to gains and/or certain distributions with respect to securities of such PFIC.

C O N S T R U C T I V E S A L E S Under certain circumstances, the Fund may recognize gain from a constructive sale of an “appreciated financial position” it holds if it enters into a short sale, forward contract or other transaction that substantially reduces the risk of loss with respect to the appreciated position. In that event, the Fund would be treated as if it had sold and immediately repurchased the property and would be taxed on any gain (but not loss) from the constructive sale. The character of gain from a constructive sale would depend upon the Fund’s holding period in the property. Loss from a constructive sale would be recognized when the property was subsequently disposed of, and its character would depend on the Fund’s holding period and the application of various loss deferral provisions of the Code. Constructive sale treatment does not apply to transactions if such transaction is closed before the end of the 30th day after the close of the Fund’s taxable year and the Fund holds the appreciated financial position throughout the 60-day period beginning with the day such transaction was closed if certain other conditions are met.

M A R K E T D I S C O U N T If a Fund purchases a debt security at a price lower than the stated redemption price of such debt security, the excess of the stated redemption price over the purchase price is “market discount.” If the amount of market discount is more than a de minimis amount, a portion of such market discount must be included as ordinary income (not capital gain) by the Fund in each taxable year in which the Fund owns an interest in such debt security and receives a principal payment on it. In particular, a Fund will be required to allocate that principal payment first to the portion of the market discount on the debt security that has accrued but has not previously been includable in income. In general, the amount of market discount that must be included for each period is equal to the lesser of (i) the amount of market discount accruing during such period (plus any accrued market discount for prior periods not previously taken into account) or (ii) the amount of the principal payment with respect to such period. Generally, market discount accrues on a daily basis for each day the debt security is held by a Fund at a constant rate over the time remaining to the debt security’s maturity or, at the election of a Fund, at a constant yield to maturity which takes into account the semi-annual compounding of interest. Gain realized on the disposition of a market discount obligation must be recognized as ordinary interest income (not capital gain) to the extent of the “accrued market discount.”

O R I G I N A L I S S U E D I S C O U N T Certain debt securities acquired by a Fund may be treated as debt securities that were originally issued at a discount. Very generally, original issue discount is defined as the difference between the price at which a security was issued and its stated redemption price at maturity. Although no cash income on account of such discount is actually received by a Fund, original issue discount that accrues on a debt security in a given year generally is treated for federal income tax purposes as interest and, therefore, such income would be subject to the distribution requirements applicable to regulated investment companies. Some debt securities may be purchased by a Fund at a discount that exceeds the original issue discount on such debt securities, if any. This additional discount represents market discount for federal income tax purposes (see above).

T A X E F F E C T O F B U Y I N G S H A R E S B E F O R E A C A P I T A L G A I N O R I N C O M E D I S T R I B U T I O N If you buy shares shortly before or on the “record date” for a Fund distribution—the date that establishes you as the person to receive the upcoming distribution—you will receive, in the form of a taxable distribution, a portion of the money you just invested. Therefore, you may wish to find out a Fund’s record date before investing. Of course, a Fund’s share price may, at any time, reflect undistributed capital gains or income. Unless a Fund incurs offsetting losses, these amounts will eventually be distributed as a taxable distribution.

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B A C K U P W I T H H O L D I N G O N D I V I D E N D S , C A P I T A L G A I N D I S T R I B U T I O N S , A N D R E D E M P T I O N S Each Fund generally will be required to withhold federal income tax (“backup withholding”) from dividends paid (other than exempt-interest dividends), capital gain distributions, and redemption proceeds otherwise payable to you if (1) you fail to furnish the Fund with your correct taxpayer identification number or social security number, (2) the IRS notifies you or the Fund that you have failed to report properly certain interest and dividend income to the IRS and to respond to notices to that effect, or (3) when required to do so, you fail to certify that you are not subject to backup withholding. The rate of backup withholding is currently 28%. Any amounts withheld may be credited against your federal income tax liability.

O T H E R T A X A T I O N Distributions may be subject to state, local and foreign taxes, depending on each shareholder’s particular situation. Non-U.S. shareholders may be subject to U.S. tax rules that differ significantly from those summarized above, including the likelihood that ordinary income dividends to them would be subject to withholding of a U.S. tax at a rate of 30% (or a lower treaty rate, if applicable) and that such non-U.S. shareholders may be subject to U.S. estate tax. As of July 1, 2014, the Funds are required to withhold U.S. tax (at a 30% rate) on payments of taxable dividends and, as of January 1, 2019, on redemption proceeds and certain capital gain dividends paid to certain non-U.S. entities that fail to comply (or be deemed compliant) with extensive new reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. Shareholders may be requested to provide additional information to the Funds to enable the Funds to determine whether withholding is required. An additional 3.8% Medicare tax is imposed on certain net investment income (including ordinary dividends and capital gain distributions received from the Funds and net gains from redemptions or other taxable dispositions of fund shares) of U.S. individuals, estates and trusts to the extent that such person’s “modified adjusted gross income” (in the case of an individual) or “adjusted gross income” (in the case of an estate or trust) exceeds certain threshold amounts. The discussion above and in the Funds’ Prospectus regarding the federal income tax consequences of investing in a Fund have been prepared by Dodge & Cox and do not purport to be complete descriptions of all tax implications of an investment in a Fund. You are advised to consult with your own tax adviser concerning the application of federal, state and local taxes to an investment in a Fund. The Trust’s legal counsel has expressed no opinion in respect thereof.

P R I N C I P A L U N D E R W R I T E R The Trust distributes the shares of the Funds and does not have a principal underwriter.

F I N A N C I A L S T A T E M E N T S Please refer to the Dodge & Cox Stock, Global Stock, International Stock, Balanced, Income, and Global Bond Funds’ Financial Statements consisting of the financial statements of each Fund and the notes thereto, and the report of the Independent Registered Public Accounting Firm contained in each Fund’s 2015 Annual Report to Shareholders. The Financial Statements and the report of the Independent Registered Public Accounting Firm (but no other material from the Annual Report) are incorporated herein by reference. Additional copies of the Annual Report may be obtained from a Fund at no charge by writing, visiting the Funds’ website at dodgeandcox.com, or telephoning the Fund (800-621-3979).

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A P P E N D I C E S

A P P E N D I X A : R A T I N G S A debt obligation rating by Moody’s, Fitch, or S&P reflects their current assessment of the creditworthiness of an obligor with respect to a specific obligation. The purpose of the rating systems is to provide investors with a simple system of gradation by which the relative investment qualities of bonds may be noted. A rating is not a recommendation as to investment value, inasmuch as it does not comment as to market price or suitability for a particular investor. The ratings are based on current information furnished by the issuer or from other sources that the rating agencies deem reliable. The ratings are based on the opinion and judgment of the rating agencies and may prove to be inaccurate. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances. Unless a modifier is included, all references in this SAI and the Funds’ Prospectus to a rating classification incorporate the full range of modifiers for the classification. For example, a reference to Moody’s “Baa” or S&P’s “BBB” quality rating incorporates Baa1 to Baa3 and BBB+ to BBB-, respectively. The following is a description of the characteristics of ratings as recently published by Moody’s, Fitch and S&P.

Ratings by Moody’s (Moody’s Investors Service) (from Moody’s Investors Service, Rating Symbols and Definitions, February, 2016) Global Long-Term Rating Scale Ratings assigned on Moody’s global long-term rating scale are forward-looking opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities. Long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default on contractually promised payments and the expected financial loss suffered in the event of default. Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. Baa Obligations rated Baa are judged to be medium grade and subject to moderate credit risk, and as such

may possess certain speculative characteristics. Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. B Obligations rated B are considered speculative and are subject to high credit risk. Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit

risk. Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of

recovery of principal and interest. C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of

principal or interest. Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

Ratings by Fitch (Fitch Ratings) (from Fitch Ratings, Definitions of Ratings and Other Forms of Opinion, December 2014) Long-Term Ratings Scales – Issuer Credit Rating Scales

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Rated entities in a number of sectors, including financial and non-financial corporations, sovereigns and insurance companies, are generally assigned Issuer Default Ratings (IDRs). IDRs opine on an entity's relative vulnerability to default on financial obligations. The "threshold" default risk addressed by the IDR is generally that of the financial obligations whose non-payment would best reflect the uncured failure of that entity. As such, IDRs also address relative vulnerability to bankruptcy, administrative receivership or similar concepts, although the agency recognizes that issuers may also make pre-emptive and therefore voluntary use of such mechanisms. In aggregate, IDRs provide an ordinal ranking of issuers based on the agency's view of their relative vulnerability to default, rather than a prediction of a specific percentage likelihood of default. For historical information on the default experience of Fitch-rated issuers, please consult the transition and default performance studies available from the Fitch Ratings website. AAA Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned

only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

B Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC Substantial credit risk. Default is a real possibility. CC Very high levels of credit risk. Default of some kind seems probable. C Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill.

Conditions that are indicative of a 'C' category rating for an issuer include: a. the issuer has entered into a grace or cure period following non-payment of a material financial

obligation; b. the issuer has entered into a temporary negotiated waiver or standstill agreement following a

payment default on a material financial obligation; or c. Fitch Ratings otherwise believes a condition of 'RD' or 'D' to be imminent or inevitable, including

through the formal announcement of a distressed debt exchange. RD Restricted default. 'RD' ratings indicate an issuer that in Fitch Ratings' opinion has experienced an

uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, and which has not otherwise ceased operating. This would include: a. the selective payment default on a specific class or currency of debt; b. the uncured expiry of any applicable grace period, cure period or default forbearance period

following a payment default on a bank loan, capital markets security or other material financial obligation;

c. the extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or

d. execution of a distressed debt exchange on one or more material financial obligations.

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D Default. 'D' ratings indicate an issuer that in Fitch Ratings' opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, non-payment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange. "Imminent" default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future. In all cases, the assignment of a default rating reflects the agency's opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer's financial obligations or local commercial practice. Note: The modifiers “+” or “-” may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the ‘AAA’ Long-Term IDR category, or to Long-Term IDR categories below ‘B’. Ratings of Structured, Project & Public Finance Obligations – Long-Term Rating Scales Ratings of structured finance, project finance and public finance obligations on the long-term scale, including the financial obligations of sovereigns, consider the obligations’ relative vulnerability to default. These ratings are typically assigned to an individual security or tranche in a transaction and not to an issuer. AAA Highest credit quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are assigned

only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA Very high credit quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A High credit quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.

BBB Good credit quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate but adverse business or economic conditions are more likely to impair this capacity.

BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.

B Highly speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC Substantial credit risk. Default is a real possibility. CC Very high levels of credit risk. Default of some kind appears probable. C Exceptionally high levels of credit risk. Default appears imminent or inevitable. D Default. Indicates a default. Default generally is defined as one of the following: Failure to make payment of principal and/or interest under the contractual terms of the rated obligation;

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The bankruptcy filings, administration, receivership, liquidation or other winding-up or cessation of the business of an issuer/obligor; or

The distressed exchange of an obligation, where creditors were offered securities with diminished structural or economic terms compared with the existing obligation to avoid a probable payment default.

Structured Finance Defaults. "Imminent" default, categorized under 'C', typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future. Additionally, in structured finance transactions, where analysis indicates that an instrument is irrevocably impaired such that it is not expected to pay interest and/or principal in full in accordance with the terms of the obligation's documentation during the life of the transaction, but where no payment default in accordance with the terms of the documentation is imminent, the obligation will typically be rated in the 'C' category. Structured Finance Writedowns. Where an instrument has experienced an involuntary and, in the agency's opinion, irreversible "writedown" of principal (i.e. other than through amortization, and resulting in a loss to the investor), a credit rating of 'D' will be assigned to the instrument. Where the agency believes the "writedown" may prove to be temporary (and the loss may be "written up" again in future if and when performance improves), then a credit rating of 'C' will typically be assigned. Should the "writedown" then later be reversed, the credit rating will be raised to an appropriate level for that instrument. Should the "writedown" later be deemed as irreversible, the credit rating will be lowered to 'D'. Note: The modifiers “+” or “-” may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the ‘AAA’ Long-Term Rating category, or categories below ‘B’.

Ratings by S&P (Standard & Poor’s Ratings Group) (from Standard & Poor’s Ratings Definitions, February, 2016) Long-Term Issue Credit Ratings Issue credit ratings are based, in varying degrees, on Standard & Poor's analysis of the following considerations: likelihood of payment—capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation and the promise Standard & Poor’s imputes; nature of and provisions of the obligation; protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights. Issue ratings are an assessment of default risk, but may incorporate an assessment of relative seniority or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.) AAA An obligation rated 'AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity

to meet its financial commitment on the obligation is extremely strong. AA An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. The obligor's

capacity to meet its financial commitment on the obligation is very strong. A An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances

and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

BBB An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

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BB, B, CCC, CC, and C Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. BB An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it

faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

B An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

CCC An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC An obligation rated 'CC' is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred, but Standard & Poor's expects default to be a virtual certainty, regardless of the anticipated time to default.

C An obligation rated 'C' is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are rated higher.

D An obligation rated 'D' is in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless Standard & Poor's believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to 'D' if it is subject to a distressed exchange offer.

NR This indicates that no rating has been requested, or that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation as a matter of policy.

Note: The ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

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A P P E N D I X B : P R O X Y V O T I N G P O L I C I E S A N D P R O C E D U R E S

DODGE & COX FUNDS

PROXY VOTING POLICIES AND PROCEDURES

The Dodge & Cox Funds have authorized Dodge & Cox to vote proxies on behalf of the Dodge & Cox Funds pursuant to the following Dodge & Cox Proxy Voting Policies & Procedures. To the extent issues are not covered by the Dodge & Cox Proxy Voting Policies & Procedures, the Dodge & Cox Funds have authorized Dodge & Cox to vote proxies in its absolute discretion after taking into consideration the best interests of the Dodge & Cox Funds and its shareholders. The following proxy voting policies and procedures (“Policies and Procedures”) have been adopted by Dodge & Cox, a California corporation (“Dodge & Cox”), an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940, as amended (“Advisers Act”). Dodge & Cox’s clients include Dodge & Cox Funds (the “Trust”), an investment company registered with the SEC under the Investment Company Act of 1940, as amended (“1940 Act”), consisting of six series (Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, Dodge & Cox Income Fund, and Dodge & Cox Global Bond Fund, collectively, the “Funds”) as well as individuals, UCITS umbrella funds (Dodge & Cox Worldwide Funds – Global Stock Fund, Dodge & Cox Worldwide Funds – International Stock Fund, Dodge & Cox Worldwide Funds – U.S. Stock Fund, and Dodge & Cox Worldwide Funds – Global Bond Fund collectively, the “UCITS Funds”), corporations and pension plans subject to the Employee Retirement Income Security Act of 1974 (“ERISA”). These Policies and Procedures are adopted to ensure compliance by Dodge & Cox with Rule 206(4)-6 under the Advisers Act, Rule 30b1-4 and Form N-1A under the 1940 Act and other applicable fiduciary obligations under rules and regulations of the SEC and interpretations of its staff. Dodge & Cox follows these Policies and Procedures for each of its clients as required under the Advisers Act and other applicable laws, unless expressly directed by a client in writing to refrain from voting that client’s proxies (or, to the extent permitted by applicable law, to vote in accordance with the client’s proxy voting policies and procedures). To the extent issues are not covered by the Dodge & Cox Proxy Policies and Procedures, Dodge & Cox will vote proxies in its absolute discretion after taking into consideration the best interests of its clients (i.e., the common interest that all clients share in seeing the value of a common investment increase over time. Clients may have differing political or social interests, but their best economic interest is generally uniform.).

G E N E R A L P O L I C Y

Dodge & Cox maintains a policy of voting proxies in a way which, in Dodge & Cox’s opinion, best serves the interest of its clients in their capacity as shareholders of a company. Dodge & Cox believes that this is consistent with SEC and U.S. Department of Labor guidelines, which state that an investment manager’s primary responsibility as a fiduciary is to vote in the best interest of its clients. As an investment manager, Dodge & Cox is primarily concerned with maximizing the value of its clients’ investment portfolios. Dodge & Cox normally votes in support of company management, but votes against proposals that Dodge & Cox believes would negatively impact the long-term value of its clients’ shares of a company. In those instances in which Dodge & Cox has been given full discretion with regard to proxies, Dodge & Cox voted and will continue to vote based on its principle of maximizing shareholder value, as described above.

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PROXY DECISION-MAKING PROCESS All proxies are reviewed by Dodge & Cox’s designated Proxy Officer or delegate. Proxies are also reviewed by a securities analyst when deemed appropriate by the Proxy Officer or delegate. The Proxy Officer or delegate votes the proxies according to these guidelines and consults the Proxy Policy Committee (which generally consists of the Proxy Officer, securities analysts, a subset of the firm's investment policy committees, and members of the Legal, Compliance and Operations Departments) when necessary. Issues that are not clearly covered by these guidelines are reviewed by members of the Proxy Policy Committee who then decide on an appropriate vote or recommend further review by the relevant investment policy committee. To assist Dodge & Cox with its research and decision-making process and to help Dodge & Cox stay abreast of current issues, it has retained the services of an outside proxy administrator to administer proxy voting and reporting for Dodge & Cox’s clients. Dodge & Cox votes each proxy while the proxy administrator ensures that the decisions are implemented for each client. Additionally, Dodge & Cox has retained the services of two outside proxy research firms to provide Dodge & Cox with research relating to proxy issues and to make proxy voting recommendations. The Proxy Officer or delegate is responsible for: (i) voting the proxies of clients subject to these Policies and Procedures; (ii) overseeing the outside proxy administrator; (iii) implementing these Policies and Procedures; (iv) consulting with analysts when deemed appropriate for the relevant portfolio security (and the Proxy Policy Committee if necessary); and (v) maintaining proxy voting records.

LIMITATIONS RELATING TO PROXY VOTING While Dodge & Cox uses its best efforts to vote proxies, in certain circumstances it may be impractical or impossible to do so. For example, when a client has loaned securities to a third party, such securities are generally not available for proxy voting. Dodge & Cox may also be prohibited from voting certain shares or required to vote in proportion to other shareholders under applicable U.S. or non-U.S. regulatory requirements or company governance provisions. Corporate governance standards, disclosure requirements, and voting mechanics vary greatly among non-U.S. markets in which the Funds may invest. Dodge & Cox will cast votes in a manner believed to be consistent with these Policies and Procedures, while taking into account differing practices by market. Some non-U.S. markets require that securities be “blocked” or registered to vote at a company’s meeting. Absent an issue of compelling importance, Dodge & Cox will generally not subject the Dodge & Cox Funds to the loss of liquidity imposed by these requirements. Additionally, Dodge & Cox may not be able to vote proxies in connection with certain holdings of non-U.S. securities if Dodge & Cox does not receive information about the meeting in time to vote the proxies or does not meet the requirements necessary to vote the securities. The costs of voting (e.g., custodian fees, vote agency fees) in non-U.S. markets may be substantially higher than for U.S. holdings. As such, Dodge & Cox may limit its voting of non-U.S. holdings in instances where the issues presented are unlikely to have a material impact on shareholder value.

PROXY VOTING GUIDELINES

PLEASE NOTE: The examples below are provided to give a general indication as to how Dodge & Cox will vote proxies on certain issues. However, these examples do not address all potential voting issues or the intricacies that may surround individual proxy votes, and for that reason, actual proxy votes may differ from the guidelines presented here. It is also important to note that the proxy voting policies described herein may at times be inconsistent with our investment decisions.

65

I. Routine Business

Dodge & Cox considers the reputation, experience, and competence of a company's management and Board when it researches and evaluates the merits of investing in a particular security. In general, Dodge & Cox has confidence in the abilities and motives of the Board and management of the companies in which Dodge & Cox invests and typically will vote in accordance with them on the items below and other routine issues when adequate information on the proposal is provided. Dodge & Cox will typically vote against shareholder proposals that require a company to pay a dividend, as the decision to return excess cash is best made by a company’s management.

A. Approval of Auditors (unless a change is not satisfactorily explained) and Compensation in Line with Prevailing Practice. B. Change Date and Place of Annual Meeting (if not associated with a takeover).

C. Change in Company Name.

D. Approval of Financial Statements (non-U.S. companies).

E. Payment or Distribution of Dividends (non-U.S. companies).

F. Related Party Transactions. G. Other Business (domestic companies). H. Other Business (non-U.S. companies). Dodge & Cox will typically vote against other business proposals in non-U.S. markets, as it varies by market what can legally be covered under other business and it cannot be known, when voting by proxy, whether the items raised under other business would be beneficial to shareholders. I. Amend Bylaws / Articles of Association to Bring in Line with Changes in Local Laws &

Regulations. Dodge & Cox will generally support the amending of an issuer’s bylaws / articles of association to bring them in line with local laws and regulations, however, Dodge & Cox will vote against proposals that Dodge & Cox believes would negatively impact the long-term value of its clients’ shares of a company.

II. Capitalization / Reorganization

A. Issuance of Securities to Meet Ongoing Corporate Needs. B. Approve Stock Split.

66

C. Share Repurchase Authorization.

D. Cancel Treasury Shares (in connection with a Share Repurchase Program).

Dodge & Cox considers the reputation, experience, and competence of a company's management and Board when it researches and evaluates the merits of investing in a particular security. In general, Dodge & Cox has confidence in the abilities and motives of the Board and management of the companies in which Dodge & Cox invests and typically will vote in accordance with them on the above-referenced and similar issues.

E. Issuance of Blank Check Preferred.

Dodge & Cox supports management's ability to raise capital to meet ongoing business needs. However, the ability to issue large blocks of securities for any purpose without shareholder approval can be detrimental to shareholder value. A company can issue and place large blocks of stock in "friendly" hands to thwart or deter an unwanted takeover. Dodge & Cox typically supports provisions where a company expressly states that the securities would not be used as a takeover defense or carry special voting rights.

F. Reincorporation.

Dodge & Cox generally supports management's decision to reincorporate in another location for reasons other than to prevent takeover attempts.

III. Compensation A. Compensation, Stock Option, Employee Stock Purchase Plans and Savings Plans that are Generally

in Line with Prevailing Practice.

Dodge & Cox typically supports measures which enable companies to attract and retain key employees and directors. Dodge & Cox reviews each compensation plan to evaluate whether the plan overly dilutes shareholder value. Dodge & Cox uses two independent proxy research firms which provide research on proxy issues as a source to help determine the dilutive effects of each plan. Dodge & Cox favors plans which reward long-term performance and align management and shareholders' interests.

B. Golden Parachutes / Severance Agreements.

Provisions for “golden parachutes” and severance agreements are evaluated on a case-by-case basis using internal standards. Dodge & Cox generally supports golden parachutes when it believes that they will enable the company to attract and retain key executives.

C. Claw-Back of Payments Under Restatement. In evaluating claw-back shareholder proposals, Dodge & Cox will consider whether the company has a history of negative material restatements and/or whether the company has already adopted a formal claw-back policy. While Dodge & Cox typically votes against shareholder proposals requesting that companies adopt policies that seek to recoup bonuses/awards, in the event of a significant negative restatement of financial results, each proposal will be reviewed on a case-by-case basis.

67

D. Advisory Votes on Compensation. Dodge & Cox typically supports management’s discretion to set compensation for executive officers and will generally vote in favor of the compensation practices of the companies in which it invests so long as Dodge & Cox believes that the plans align management and shareholders’ interests. E. Frequency of Advisory Votes on Compensation. Dodge & Cox believes that management is in the best position to determine how frequently an advisory vote on compensation should appear on a company’s proxy and will typically vote in line with management’s recommendation with regard to such matters. In the absence of a recommendation by management, Dodge & Cox will typically vote to have the advisory vote on compensation appear on a company’s proxy every three years consistent with our long-term investment horizon. F. Limit Services of Compensation Consultant.

Dodge & Cox will typically vote against shareholder proposals that seek to limit the services of compensation consultants to strictly performing compensation-related consulting. Such a proposal limits the issuer’s ability to retain consulting services that it believes would be necessary or beneficial to the firm.

IV. Board & Management Related A. Election of Directors in Uncontested Elections. B. Indemnification of Officers and Directors in Line with Prevailing Practice. Dodge & Cox considers the reputation, experience, and competence of a company's management and Board

when it researches and evaluates the merits of investing in a particular security. In general, Dodge & Cox has confidence in the abilities and motives of the Board and management of the companies in which Dodge & Cox invests and typically will vote in accordance with them on the above issues. However, Dodge & Cox will typically vote against the election of a director if insufficient information is provided on the proposed director. When reviewing non-U.S. indemnification proposals, Dodge & Cox will consider using Delaware law as a benchmark for evaluating appropriate levels of indemnification for officers and directors.

C. Board Structure.

There is no optimal size or composition of inside and outside directors that fits every company. Dodge & Cox considers the composition, reputation and experience of a company's Board in the process of reviewing the merits of investing in a particular company's shares. Dodge & Cox prefers that the number of directors cannot be altered without shareholder approval; allowing management to increase or decrease the size of the Board can be used as an anti-takeover defense. Dodge & Cox also prefers that companies have a majority of independent directors and for companies to have compensation and audit committees composed entirely of independent directors. Dodge & Cox will typically vote in favor of the establishment of a nominating committee for the Board of Directors.

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D. Independent Chairman (Separate Chairman / Chief Executive Officer). Dodge & Cox considers the reputation, experience, and competence of a company’s management and Board when it researches and evaluates the merits of investing in a particular security. Directors and management of companies are in the best position to determine an efficient, functional structure for the board of directors and splitting the positions of Chairman and Chief Executive Officer may not be in the best interests of the company or its shareholders. Dodge & Cox typically will vote in accordance with company management on the above issue. E. Directors' Term in Office / Length of Service / Mandatory Retirement Age.

Dodge & Cox believes that any restrictions on a director's tenure, such as a mandatory retirement age or length of service limits, could harm shareholder interests by forcing experienced and knowledgeable directors off the Board. F. Succession Plans. Dodge & Cox will generally support non-binding shareholder proposals that encourage companies to adopt a succession plan for senior management, if the company does not currently have a succession plan in place.

G. Shareholders' Ability to Remove and Approve Directors.

Dodge & Cox believes that fair and democratic access to the Board is an important factor in increasing the accountability of the Board of Directors to shareholders. Thus, Dodge & Cox would generally support proposals whereby nominations of directors by a shareholder would be included in the proxy statement and ballot. Dodge & Cox would vote against proposals restricting the shareholders' ability to remove a director, as it could serve to entrench management. Dodge & Cox does not support proposals giving continuing directors the right to fill vacant Board seats without shareholder approval. H. Majority of Votes to Elect Directors. Dodge & Cox will generally support shareholder proposals to require a majority vote standard for the election of directors provided it does not conflict with the law where the company is incorporated.

I. Classified Boards / Annual Elections.

Dodge & Cox does not support classified Boards because this makes a change in Board control more difficult to effect, and hence may reduce the accountability of the Board to shareholders.

J. Cumulative Voting.

Dodge & Cox will typically vote against proposals to establish cumulative voting, as cumulative voting does not align voting interest with economic interest in a company.

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K. Directors Required to Own Specified Amount of Company Stock.

Dodge & Cox typically does not support proposals requiring directors to own a specific amount of a company's shares, as it could prove onerous to qualified individuals who could otherwise contribute significantly to the company.

L. Include Shareholders' Nominations of Directors in Proxy.

Dodge & Cox generally supports including shareholders' nominations of directors in the proxy statement and ballot as it serves to increase the accountability of the Board to shareholders. Dodge & Cox will generally consider the proposed length and percent ownership, as well as other governance provisions at the company, when determining how to vote on proxy access proposals, and will generally support an ownership level and duration of three percent for three years. Dodge & Cox will evaluate lower thresholds on a case-by-case basis. Dodge & Cox believes that fair and democratic access to the Board is an important part of increasing accountability.

M. Retirement Benefits for Non-Employee Directors.

Dodge & Cox typically does not support shareholder proposals which seek to eliminate retirement benefits for non-employee directors. Dodge & Cox believes such proposals could hinder companies from attracting and retaining qualified Board members.

N. Director Compensation.

Dodge & Cox typically does not support shareholder proposals which seek to pay directors partially or solely in stock. Dodge & Cox believes that the Compensation Committee or full Board is best qualified to design compensation packages which will attract, motivate and retain capable directors.

V. Anti-Takeover / Business Combinations

Generally, Dodge & Cox does not support those provisions which Dodge & Cox believes negatively impact the value of the shares by deterring an unwanted tender or takeover offer. Toward that end, Dodge & Cox generally supports the right of shareholders to vote on issues pertaining to business combinations, restructurings, and changes in capitalization. Dodge & Cox does, however, support those policies that grant management time in which to respond to an unsolicited offer and which discourage two-tier offers.

A. Opt-Out of State Law Business Combination Provisions.

Dodge & Cox generally supports shareholder proposals to "opt-out" of certain state laws designed to deter unwanted takeovers. The corporation can continue to receive the many benefits of incorporation in a particular state, while the "opt-out" removes anti-takeover provisions that may detract from shareholder value.

B. Fair Price.

While Dodge & Cox would support a Fair Price provision concerned only with preventing two-tier offers, many also give the Board sole discretion in determining the "fair price" of its securities. This

70

determination can be overridden only by a supermajority vote of the shareholders. Dodge & Cox believes that this is in conflict with Dodge & Cox’s policy of preserving shareholder value.

C. Shareholder Rights Proposals / Poison Pills.

Generally, Dodge & Cox supports management's decision to implement shareholders rights programs because they do not seem to deter or prevent takeovers, but instead provide the Board time to pursue alternatives often resulting in better value for shareholders. Dodge & Cox may vote against a shareholder rights program if local law provides safeguards that allow a company to adequately assess a takeover offer. Dodge & Cox generally supports shareholder proposals requesting that the company submit existing or future shareholders rights programs to a shareholder vote (although it may vote against a proposal when a company has adopted a meaningful alternative to the shareholder proposal). In considering proposals to ratify shareholders rights programs, Dodge & Cox will generally consider the following criteria, among other factors:

• 20% or higher flip-in or flip-over; • Two-to three-year sunset provision; • No dead-hand, slow-hand, no-hand or similar features; • Shareholder redemption feature - if the board refuses to redeem the pill 90 days after an offer is

announced, ten percent of the shares may call a special meeting or seek a written consent to vote on rescinding the pill.

D. Greenmail.

Dodge & Cox does not support the payment of "greenmail," the situation in which a potential bidder is paid a premium as a condition of not pursuing a takeover of or restructuring of the company, since one shareholder profits at the expense of the others. E. Mergers, Acquisitions and Spin-offs. Dodge & Cox considers each proposal concerning a merger, acquisition or spin-off on a case-by-case basis. Dodge & Cox will generally support these types of corporate restructurings where it believes that they would maximize long-term shareholder value. When Dodge & Cox is in favor of a merger, acquisition or spin-off, Dodge & Cox will typically support a proposal to adjourn the meeting when votes for a merger or acquisition are insufficient, as this gives management additional opportunities to present shareholders with information about its proposals.

F. Amend Bylaws Without Shareholder Consent. Dodge & Cox generally opposes proposals giving the Board of Directors exclusive authority to amend the bylaws of the company without seeking shareholder consent.

VI. Shareholder Rights A. Confidential Voting.

Since there exists the possibility that certain shareholders may be subject to undue pressure to vote in favor of management, Dodge & Cox believes that the voting process is better served by confidentiality.

71

B. Right to Call Meetings.

Dodge & Cox generally supports proposals that give shareholders the ability to call special meetings and vote on issues outside of the company's annual meeting. Limiting the forum in which shareholders are able to vote on proposals could adversely affect shareholder value. Dodge & Cox will generally support shareholder proposals that seek to allow stockholders owning 10 percent or more of the outstanding shares of the company’s common stock to call a special meeting and will consider proposals with thresholds lower than 10 percent on a case-by-case basis.

C. Shareholder Action by Written Consent.

Dodge & Cox typically supports the right of shareholders to take action by written consent because it facilitates broader corporate governance but will generally consider the minimum consent threshold as well as other governance rights shareholders may have at the company when determining how to vote.

D. Supermajority.

Dodge & Cox does not support supermajority voting provisions with respect to corporate governance issues. By vesting a minority with veto power over shareholder decisions, a supermajority provision could deter tender offers and hence adversely affect shareholder value.

E. Omission of "Irrelevant" Proxy Issues.

Dodge & Cox has made it a policy not to get involved in determining what is appropriate for a company to include or exclude in its proxy statements, as there are very specific rules laid out by the SEC governing this issue. Dodge & Cox considers the proxy process to be a very important part of corporate governance, and would consider any effort to limit this shareholder forum as an effort to reduce the accountability of management. Dodge & Cox defers to the SEC rules on this matter.

F. One Share, One Vote. Dodge & Cox is generally opposed to dual class capitalization structures that provide disparate voting rights to different groups of shareholders with similar economic investments. As such, all things equal, Dodge & Cox will generally oppose the creation of separate classes with different voting rights. However, for an existing dual class structure, Dodge & Cox may consider management’s record with respect to management and governance and will review proposals to eliminate a dual class structure on a case-by-case basis. G. Electronic Communications to Shareholders. Dodge & Cox will typically support proposals that allow companies to provide electronic communications/notices to shareholders in lieu of paper notices, provided that the company complies with local laws for disseminating information to shareholders. H. Exclusive Venue. Dodge & Cox typically supports management’s discretion to select a specific jurisdiction as the exclusive venue for shareholder lawsuits.

72

VII. Social / Environmental

Dodge & Cox generally supports management's decisions regarding a company's business operations. To the extent not addressed above, Dodge & Cox will review shareholder proposals regarding social, environmental and governance issues on a case-by-case basis and will consider supporting proposals that address material issues that it believes will protect and/or enhance the long-term value of the company.

VIII. Mutual Fund Proxies

A. Election of Trustees/Directors.

In general, Dodge & Cox has confidence in the abilities and motives of the Board of the mutual funds in which Dodge & Cox invests and typically will vote in support of the proposed nominees in uncontested elections.

B. Investment Advisory Agreement.

Dodge & Cox votes on investment advisory agreements on a case-by-case basis.

C. Fundamental Investment Restrictions. Dodge & Cox votes on amendments to a fund’s fundamental investment restrictions on a case-by-case basis.

D. Distribution Agreements. Dodge & Cox votes on distribution agreements on a case-by-case basis.

C O N F L I C T S O F I N T E R E S T

Dodge & Cox is sensitive to conflicts of interest that may arise in the proxy decision-making process. For example, conflicts of interest may arise when: (i) proxy votes regarding non-routine matters are solicited by an issuer who has an institutional separate account relationship with Dodge & Cox; (ii) a proponent of a proxy proposal has a business relationship with Dodge & Cox (e.g., an employee group for which Dodge & Cox manages money); (iii) Dodge & Cox has business relationships with participants in proxy contests, corporate directors or director candidates; or (iv) a Dodge & Cox employee has a personal interest in the outcome of a particular matter before shareholders (e.g., a Dodge & Cox executive has a relative who serves as a director of a company). Dodge & Cox is committed to resolving all such and similar conflicts in its clients’ best interests. Dodge & Cox has developed these Policies and Procedures to serve the best interests of its clients, and accordingly, will generally vote pursuant to these Policies and Procedures when conflicts of interest arise. When there are proxy voting proposals that give rise to conflicts of interest and such proposals are not addressed by these Policies and Procedures, the Proxy Policy Committee will consult Dodge & Cox’s Compliance Officer and senior management. The Proxy Policy Committee, Compliance Officer and senior management may consult

73

with an independent consultant or outside counsel to resolve material conflicts of interest. Possible resolutions of such conflicts may include: (i) voting in accordance with the guidance of an independent consultant or outside counsel; (ii) erecting information barriers around the person or persons making voting decisions; (iii) designating a person or committee to vote that has no knowledge of any relationship between Dodge & Cox and the issuer, its officers or directors, director candidates, or proxy proponents; (iv) voting in proportion to other shareholders; or (v) voting in other ways that are consistent with Dodge & Cox’s obligation to vote in its clients’ best interests.

PROXY VOTING RECORDKEEPING

Dodge & Cox maintains records of the following items: (i) these Policies and Procedures; (ii) proxy statements or proxy meeting information received regarding client securities (unless such statements are available on the SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system); (iii) records of votes Dodge & Cox cast on behalf of clients, which may be maintained by a third party service provider if the service provider undertakes to provide copies of those records promptly upon request; (iv) records of written requests for proxy voting information and Dodge & Cox’s response to such request (whether a client’s request was oral or in writing); and (v) any documents prepared by Dodge & Cox that were material to making a decision on how to vote, or that memorialized the basis for the decision. Additionally, Dodge & Cox will maintain any documentation related to an identified material conflict of interest.

Dodge & Cox or its agent will maintain these records in an easily accessible place for at least five years

from the end of the fiscal year during which the last entry was made on such record. For the first two years, Dodge & Cox or its agent will store such records at its principal office.

REVIEW OF POLICIES AND PROCEDURES These Policies and Procedures will be subject to periodic review as deemed appropriate by Dodge & Cox.

H O W T O O B T A I N D O D G E & C O X F U N D S P R O X Y V O T I N G R E C O R D

Information regarding how Dodge & Cox, on behalf of the Dodge & Cox Funds, voted proxies relating to the Dodge & Cox Funds’ portfolio securities for the 12 months ending June 30 is available on the Dodge & Cox Funds website at dodgeandcox.com and on the SEC’s website at http://www.sec.gov.

Link to Prospectus

https://dodgeandcox.com/pdf/prospectus/dc_statutory_prospectus.pdf


May 1, 2015

Link to Statement of Additional Information

ProspectusStock Fund (DODGX)E S T A B L I S H E D 1 9 6 5

Global Stock Fund (DODWX)E S T A B L I S H E D 2 0 0 8

International Stock Fund (DODFX)E S T A B L I S H E D 2 0 0 1( C l o s e d t o N e w I n v e s t o r s )

Balanced Fund (DODBX)E S T A B L I S H E D 1 9 3 1

Income Fund (DODIX)E S T A B L I S H E D 1 9 8 9

Global Bond Fund (DODLX)E S T A B L I S H E D 2 0 1 4

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the accuracy oradequacy of this prospectus. Any representation to the contrary is a criminal offense.

05/15 PR Printed on recycled paper

https://www.dodgeandcox.com/pdf/prospectus/dc_statement_of_additional_information.pdf

T A B L E O F C O N T E N T S

Fund Summaries1 Dodge & Cox Stock Fund4 Dodge & Cox Global Stock Fund7 Dodge & Cox International Stock Fund10 Dodge & Cox Balanced Fund14 Dodge & Cox Income Fund17 Dodge & Cox Global Bond Fund21 Other Important Information About Fund Shares22 Investment Objectives, Principal Investment

Strategies, Related Risks, and Disclosure ofPortfolio Holdings

26 Investment RestrictionsInvestment Risks

26 Disclosure of Portfolio Holdings27 Additional Information on Investments35 How to Purchase Shares38 How to Redeem or Exchange Shares40 Transactions Through Financial Intermediaries41 Excessive Trading Limitations42 Other Transaction Information42 Escheatment of Abandoned Property43 Pricing of Shares44 Income Dividends and Capital Gain Distributions44 Federal Income Taxes45 Fund Organization and Management46 Investment Committees51 Investment Information and Shareholder Services52 Financial Highlights54 Trustees

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured bythe FDIC, Federal Reserve, or any other government agency, and are subject to investment risks, including possible loss ofyour investment.

D O D G E & C O X S T O C K F U N D

INVESTMENT OBJECTIVES

The Fund seeks long-term growth of principal and income. Asecondary objective is to achieve a reasonable current income.

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if youbuy and hold shares of the Fund.

SHAREHOLDER FEES(fees paid directly from your investment)

Sales charge (load) imposed on purchases NoneDeferred sales charge (load) NoneSales charge (load) imposed on reinvested distributions NoneRedemption fee NoneExchange fee None

ANNUAL FUND OPERATING EXPENSES(expenses that you pay each year as a percentage of the value of yourinvestment)

Management fees .50%Distribution and/or service (12b-1) fees NoneOther expenses (transfer agent, custody, accounting,

legal, etc.) .02%

Total Annual Fund Operating Expenses .52%

Example: This example is intended to help you compare the costof investing in the Fund with the cost of investing in othermutual funds.

The example assumes that:▪ You invest $10,000 in the Fund for the time periods indicated

and then redeem all of your shares at the end of thosetime periods;

▪ Your investment has a 5% return each year; and▪ The Fund’s operating expenses remain the same.

Although your actual costs may be higher or lower, underthese assumptions your costs would be:


$53 $167 $291 $653

PORTFOLIO TURNOVER

The Fund incurs transaction costs, such as commissions, whenDodge & Cox buys and sells securities (or “turns over” theportfolio). A higher portfolio turnover rate may indicate highertransaction costs and may result in higher taxes when Fund sharesare held in a taxable account. These transaction costs, which arenot reflected in annual Fund operating expenses or in the example,affect the Fund’s performance. During the most recent fiscal year,the Fund’s portfolio turnover rate was 17% of the average value ofits portfolio.

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests primarily in a diversified portfolio of equitysecurities. Under normal circumstances, the Fund will invest atleast 80% of its total assets in equity securities, including commonstocks, depositary receipts evidencing ownership of commonstocks, preferred stocks, securities convertible into common stocks,and securities that carry the right to buy common stocks. TheFund may invest up to 20% of its total assets in U.S. dollar-denominated securities of non-U.S. issuers traded in the UnitedStates that are not in the S&P 500 Index. The Fund may enterinto forward currency contracts or currency futures contracts tohedge foreign currency exposure.

The Fund typically invests in medium-to-large wellestablished companies based on standards of the applicable market.In selecting investments, the Fund typically invests in companiesthat, in Dodge & Cox’s opinion, appear to be temporarilyundervalued by the stock market but have a favorable outlook forlong-term growth. The Fund focuses on the underlying financialcondition and prospects of individual companies, including futureearnings, cash flow, and dividends. Various other factors, includingfinancial strength, economic condition, competitive advantage,quality of the business franchise, and the reputation, experience,and competence of a company’s management are weighed againstvaluation in selecting individual securities. The Fund alsoconsiders the economic and political stability of the country wherethe issuer is located and the protections provided to shareholders.

PRINCIPAL RISKS OF INVESTING

You could lose money by investing in the Fund, and the Fundcould underperform other investments. You should expect theFund’s share price and total return to fluctuate within a widerange. The Fund’s performance could be hurt by:▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth

of a company or security may be incorrect or the market maycontinue to undervalue the company or security. Dodge & Coxmay not make timely purchases or sales of securities for the Fund.

▪ Equity risk. Equity securities generally have greater pricevolatility than debt securities. Equity securities may decline invalue because of changes in the actual or perceived financialcondition of their issuers or other events affecting their issuers.

▪ Market risk. Prices may increase or decrease, sometimes suddenlyand unpredictably, due to general market conditions.

▪ Liquidity risk. The Fund may not be able to purchase or sell asecurity in a timely manner or at desired prices or achieve itsdesired weighting in a security.

▪ Derivatives risk. Investing with derivatives, such as forwardcurrency contracts and equity index futures, involves risksadditional to those associated with investing directly insecurities. The value of a derivative may not correlate to thevalue of the underlying instrument to the extent expected.Derivative transactions may be volatile, and can create leverage,which could cause the Fund to lose more than the amount ofassets initially contributed to the transaction, if any. The Fundmay not be able to close a derivatives position at anadvantageous time or price. For over-the-counter derivatives

D O D G E & C O X F U N D S ▪ P A G E 1

transactions, the counterparty may be unable or unwilling tomake required payments and deliveries, especially during timesof financial market distress.

▪ Non-U.S. investment risk. Securities of non-U.S. issuers(including ADRs) may be less liquid, more volatile, and harderto value than U.S. securities. Non-U.S. issuers may be subject topolitical, economic, or market instability, or unfavorablegovernment action in their local jurisdictions. There may be lessinformation publicly available about non-U.S. issuers and theirsecurities and those issuers may be subject to lower levels ofgovernment regulation and oversight. These risks may be higherwhen investing in emerging market issuers. Certain of theserisks may also apply to securities of U.S. issuers with significantnon-U.S. operations.

▪ Non-U.S. currency risk. Foreign currencies may decline relativeto the U.S. dollar, which reduces the unhedged value ofsecurities denominated in or otherwise exposed to thosecurrencies. Dodge & Cox may not hedge or may not besuccessful in hedging the Fund’s currency exposure.

An investment in the Fund is not a deposit of a bank and isnot insured or guaranteed by the Federal Deposit InsuranceCorporation or any other government agency.

PERFORMANCE INFORMATION

The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showschanges in the Fund’s returns from year to year. The table showshow the Fund’s average annual total returns for one, five, and tenyears compare to those of a broad measure of market performance.

The Fund’s past performance (before and after taxes) does notnecessarily indicate how the Fund will perform in the future. Visitthe Fund’s website at dodgeandcox.com or call 800-621-3979 forcurrent performance figures.

D O D G E & C O X S T O C K F U N DAnnual total returns 2005-2014 (%)

05

9.36

06

18.54

09

31.27

10

13.48

22.01

40.55

07

0.14

08

−43.31

131211

−4.08

10.43

14

Highest/Lowest quarterly results during the time period were:Highest: 23.10% (quarter ended June 30, 2009)Lowest: –23.33% (quarter ended December 31, 2008)

AVERAGE ANNUAL TOTAL RETURNS

FOR THE PERIODS ENDED 12/31/2014

Dodge & CoxStock Fund 1 Year 5 Years 10 Years

Return before taxes 10.43% 15.56% 7.13%Return after taxes on distributions 9.63 15.16 6.51Return after taxes on distributions and

sale of Fund shares 6.51 12.56 5.79S&P 500 Index (reflects no deduction for

expenses or taxes) 13.69 15.46 7.68

After-tax returns are calculated using the historical highestindividual federal marginal income tax rates, but do not reflect theimpact of state or local taxes. Actual after-tax returns may differdepending on your individual circumstances. After-tax returnfigures do not apply to you if you hold your Fund shares through atax-deferred arrangement such as a 401(k) plan or an individualretirement account.

P A G E 2 ▪ D O D G E & C O X F U N D S

FUND MANAGEMENT

Dodge & Cox serves as investment manager to the Stock Fund. The Fund is managed by Dodge & Cox’s Investment Policy Committee(IPC), which consists of the following nine members:

Committee Member Primary Titles with Investment Manager

Years managingthe Fund/Years withDodge & Cox

John A. Gunn Portfolio Manager 38/43

Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofFixed Income Investment Policy Committee (FIIPC), Global Stock Investment Policy Committee(GSIPC), and International Investment Policy Committee (IIPC)

23/31

C. Bryan Cameron Senior Vice President, Director of Research, Portfolio Manager, Investment Analyst, and member of IIPC 23/32

Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst,and member of GSIPC, IIPC, and Global Bond Investment Policy Committee

10/27

David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, andInvestment Analyst

13/22

Gregory R. Serrurier Senior Vice President, Portfolio Manager, and member of IIPC 19/31

Wendell W. Birkhofer Vice President and Portfolio Manager 13/28

Steven C. Voorhis Vice President, Portfolio Manager, Investment Analyst, and member of GSIPC 9/19

Philippe Barret, Jr. Vice President, Portfolio Manager, and Investment Analyst 2/11

OTHER IMPORTANT INFORMATION ABOUT FUND SHARES

For important information about purchase and sale of Fund shares, tax information, and payments to financial intermediaries please turn tothe “Summary of Other Important Information About Fund Shares” section on page 21 of this prospectus.


D O D G E & C O X G L O B A L S T O C K F U N D

INVESTMENT OBJECTIVE

The Fund seeks long-term growth of principal and income.

FEES AND EXPENSES






legal, etc.) .05%



The example assumes that:▪ You invest $10,000 in the Fund for the time periods indicated and

then redeem all of your shares at the end of those time periods;▪ Your investment has a 5% return each year; and▪ The Fund’s operating expenses remain the same.



$66 $208 $362 $810

PORTFOLIO TURNOVER



The Fund invests primarily in a diversified portfolio of equitysecurities issued by companies from at least three different

countries, including emerging market countries. The Fund is notrequired to allocate its investments in set percentages in particularcountries and may invest in emerging markets without limit.Under normal circumstances, the Fund will invest at least 40% ofits total assets in securities of non-U.S. companies and at least 80%of its total assets in equity securities, including common stocks,depositary receipts evidencing ownership of common stocks,preferred stocks, securities convertible into common stocks, andsecurities that carry the right to buy common stocks. The Fundmay enter into forward currency contracts or currency futurescontracts to hedge foreign currency exposure.

The Fund typically invests in medium-to-large well establishedcompanies based on standards of the applicable market. In selectinginvestments, the Fund typically invests in companies that, inDodge & Cox’s opinion, appear to be temporarily undervalued bythe stock market but have a favorable outlook for long-termgrowth. The Fund also focuses on the underlying financialcondition and prospects of individual companies, including futureearnings, cash flow, and dividends. Various other factors, includingfinancial strength, economic condition, competitive advantage,quality of the business franchise, and the reputation, experience,and competence of a company’s management are weighed againstvaluation in selecting individual securities. The Fund also considersthe economic and political stability of the country where the issueris located and the protections provided to shareholders.







▪ Non-U.S. investment risk. Securities of non-U.S. issuers(including ADRs) may be less liquid, more volatile, and harderto value than U.S. securities. Non-U.S. issuers may be subject topolitical, economic, or market instability or unfavorablegovernment action in their local jurisdictions. There may be lessinformation publicly available about non-U.S. issuers and theirsecurities, and those issuers may be subject to lower levels ofgovernment regulation and oversight. Non-U.S. stock marketsmay decline due to conditions specific to an individual country,including unfavorable economic conditions relative to the


United States. There may be increased risk of delayedtransaction settlement or security certificate loss. These risksmay be higher when investing in emerging market issuers.Certain of these risks may also apply to securities of U.S. issuerswith significant non-U.S. operations.


▪ Emerging market risk. Emerging market securities may presentissuer, market, currency, liquidity, volatility, valuation, legal,political, and other risks different from, and potentially greaterthan, the risks of investing in securities of issuers in moredeveloped markets.

▪ Derivatives risk. Investing with derivatives, such as forwardcurrency contracts and equity index futures, involves risksadditional to those associated with investing directly insecurities. The value of a derivative may not correlate to thevalue of the underlying instrument to the extent expected.Derivative transactions may be volatile, and can create leverage,which could cause the Fund to lose more than the amount ofassets initially contributed to the transaction, if any. The Fundmay not be able to close a derivatives position at anadvantageous time or price. For over-the-counter derivativestransactions, the counterparty may be unable or unwilling tomake required payments and deliveries, especially during timesof financial market distress.



The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showsthe Fund’s returns from year to year. The table shows how the Fund’saverage annual total returns for one year, five years, and sinceinception compare to that of a broad measure of market performance.


DODGE & COX GLOBAL STOCK FUNDAnnual total returns 2009-2014 (%)

09

49.18

10 11

13.51

12 13 14

21.11

−11.39

33.17

6.95

Highest/Lowest quarterly results during the time period were:Highest: 33.48% (quarter ended June 30, 2009)Lowest: –20.56% (quarter ended September 30, 2011)



Dodge & CoxGlobal Stock Fund 1 Year 5 Years

SinceInception

(5/1/2008)


sale of Fund shares 4.79 9.43 4.10MSCI World Index (Net)* (reflects no

deduction for expenses or taxes) 4.94 10.20 4.12* MSCI Index (Net) returns are calculated applying dividend withholding

rates applicable to non-resident persons who do not benefit from doubletaxation treaties. Withholding rates applicable to the Fund may be lower.



FUND MANAGEMENT

Dodge & Cox serves as investment manager to the Global Stock Fund. The Fund is managed by Dodge & Cox’s Global Stock InvestmentPolicy Committee (GSIPC), which consists of the following seven members:



Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofInvestment Policy Committee (IPC), International Investment Policy Committee (IIPC), and FixedIncome Investment Policy Committee (FIIPC)

7/31

Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst,and member of IPC, IIPC, and Global Bond Investment Policy Committee

7/27

Steven C. Voorhis Vice President, Portfolio Manager, Investment Analyst, and member of IPC 7/19

Karol Marcin Vice President, Portfolio Manager, and Investment Analyst 7/15

Lily S. Beischer Vice President, Portfolio Manager, and Investment Analyst 7/14

Roger G. Kuo Vice President, Portfolio Manager, Investment Analyst, and member of IIPC 5/17

Raymond J. Mertens Vice President, Portfolio Manager, and Investment Analyst 1/12




D O D G E & C O X I N T E R N A T I O N A LS T O C K F U N D(Closed to new investors. See “How to Purchase Shares —Information Regarding Purchases of the Dodge & CoxInternational Stock Fund” on page 37 for more information.)

INVESTMENT OBJECTIVE

The Fund seeks long-term growth of principal and income.

FEES AND EXPENSES






legal, etc.) .04%



The example assumes that:▪ You invest $10,000 in the Fund for the time periods indicated

and then redeem all of your shares at the end of thosetime periods;

▪ Your investment has a 5% return each year; and▪ The Fund’s operating expenses remain the same.



$65 $205 $357 $798

PORTFOLIO TURNOVER



The Fund invests primarily in a diversified portfolio of equitysecurities issued by non-U.S. companies from at least three differentcountries, including emerging market countries. The Fund is notrequired to allocate its investments in set percentages in particularcountries and may invest in emerging markets without limit. Undernormal circumstances, the Fund will invest at least 80% of its totalassets in equity securities of non-U.S. companies, includingcommon stocks, depositary receipts evidencing ownership ofcommon stocks, preferred stocks, securities convertible intocommon stocks, and securities that carry the right to buy commonstocks. The Fund may enter into forward currency contracts orcurrency futures contracts to hedge foreign currency exposure.

The Fund typically invests in medium-to-large well establishedcompanies based on standards of the applicable market. In selectinginvestments, the Fund typically invests in companies that, inDodge & Cox’s opinion, appear to be temporarily undervalued bythe stock market but have a favorable outlook for long-termgrowth. The Fund also focuses on the underlying financialcondition and prospects of individual companies, including futureearnings, cash flow, and dividends. Various other factors, includingfinancial strength, economic condition, competitive advantage,quality of the business franchise, and the reputation, experience,and competence of a company’s management are weighed againstvaluation in selecting individual securities. The Fund also considersthe economic and political stability of the country where the issueris located and the protections provided to shareholders.








▪ Non-U.S. investment risk. Securities of non-U.S. issuers(including ADRs) may be less liquid, more volatile, and harderto value than U.S. securities. Non-U.S. issuers may be subject topolitical, economic, or market instability, or unfavorable


government action in their local jurisdictions. There may be lessinformation publicly available about non-U.S. issuers and theirsecurities, and those issuers may be subject to lower levels ofgovernment regulation and oversight. Non-U.S. stock marketsmay decline due to conditions specific to an individual country,including unfavorable economic conditions relative to theUnited States. There may be increased risk of delayedtransaction settlement or security certificate loss. These risksmay be higher when investing in emerging market issuers.Certain of these risks may also apply to securities of U.S. issuerswith significant non-U.S. operations.


▪ Derivatives risk. Investing with derivatives, such as forwardcurrency contracts and equity index futures, involves risksadditional to those associated with investing directly insecurities. The value of a derivative may not correlate to thevalue of the underlying instrument to the extent expected.Derivative transactions may be volatile, and can create leverage,which could cause the Fund to lose more than the amount ofassets initially contributed to the transaction, if any. The Fundmay not be able to close a derivatives position at anadvantageous time or price. For over-the-counter derivativestransactions, the counterparty may be unable or unwilling tomake required payments and deliveries, especially during timesof financial market distress.



The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showschanges in the Fund’s returns from year to year. The table showshow the Fund’s average annual total returns for one, five, and tenyears compare to that of a broad measure of market performance.


DODGE & COX INTERNATIONAL STOCK FUNDAnnual total returns 2005-2014 (%)

05 06 07 08 09

−46.68

16.74

28.00

47.46

10 11 1312

13.6921.03

26.31

−15.97

11.71

14

0.07




Dodge & CoxInternational Stock Fund 1 Year 5 Years 10 Years

Return before taxes 0.07% 7.89% 6.73%Return after taxes on distributions –0.32 7.67 6.35Return after taxes on distributions and

sale of Fund shares 0.63 6.44 5.68MSCI EAFE (Europe, Australasia, Far

East) Index (Net)* (reflects no deduction

for expenses or taxes) –4.90 5.34 4.43* MSCI Index (Net) returns are calculated applying dividend withholding

rates applicable to non-resident persons who do not benefit from doubletaxation treaties. Withholding rates applicable to the Fund may be lower.



FUND MANAGEMENT

Dodge & Cox serves as investment manager to the International Stock Fund. The Fund is managed by Dodge & Cox’s InternationalInvestment Policy Committee (IIPC), which consists of the following nine members:



Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofInvestment Policy Committee (IPC), Global Stock Investment Policy Committee (GSIPC), and FixedIncome Investment Policy Committee (FIIPC)

8/31

Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst,and member of IPC, GSIPC, and Global Bond Investment Policy Committee

14/27

C. Bryan Cameron Senior Vice President, Director of Research, Portfolio Manager, Investment Analyst, and member of IPC 14/32

Gregory R. Serrurier Senior Vice President, Portfolio Manager, and member of IPC 14/31

Mario C. DiPrisco Vice President, Portfolio Manager, and Investment Analyst 11/17

Roger G. Kuo Vice President, Portfolio Manager, Investment Analyst, and member of GSIPC 9/17

Keiko Horkan Vice President, Portfolio Manager, and Investment Analyst 8/15

Richard T. Callister Vice President, Portfolio Manager, and Investment Analyst 3/13

Englebert T.Bangayan

Vice President, Portfolio Manager, and Investment Analyst */13

* Mr. Bangayan was appointed to the IIPC effective February 2015.




D O D G E & C O X B A L A N C E D F U N D


The Fund seeks regular income, conservation of principal, and anopportunity for long-term growth of principal and income.

FEES AND EXPENSES






legal, etc.) .03%







$54 $170 $296 $665

PORTFOLIO TURNOVER



The Fund invests in a diversified portfolio of equity securities anddebt securities. Under normal circumstances no more than 75%and no less than 25% of total assets will be invested in equitysecurities. The Fund may invest up to 20% of its total assets inU.S. dollar-denominated securities of non-U.S. issuers traded inthe United States that are not in the S&P 500 Index.

Equity securities in which the Fund may invest includecommon stocks, depositary receipts evidencing ownership ofcommon stocks, preferred stocks, certain securities convertible intocommon stocks, and securities that carry the right to buy commonstocks. The Fund’s equity investments are typically in medium-to-large well established companies based on standards of theapplicable market. In selecting equity investments, the Fundtypically invests in companies that, in Dodge & Cox’s opinion,appear to be temporarily undervalued by the stock market but havea favorable outlook for long-term growth. The Fund focuses on theunderlying financial condition and prospects of individualcompanies, including future earnings, cash flow, and dividends.Various other factors, including financial strength, economiccondition, competitive advantage, quality of the businessfranchise, and the reputation, experience, and competence of acompany’s management are weighed against valuation in selectingindividual securities. The Fund also considers the economic andpolitical stability of the country where the issuer is located and theprotections provided to shareholders. The Fund may enter intoforward currency contracts or currency futures contracts to hedgeforeign currency exposure.

Debt securities in which the Fund may invest includeinvestment-grade securities such as government and government-related obligations, mortgage- and asset-backed securities,corporate and municipal bonds, and other debt securities and mayinclude fixed and floating rate instruments. Investment-grade debtsecurities are securities rated Baa3 or higher by Moody’s InvestorsService (Moody’s), or BBB- or higher by Standard & Poor’sRatings Group (S&P) or Fitch Ratings (Fitch), or equivalentlyrated by any nationally recognized statistical rating organization(NRSRO), including U.S. dollar-denominated foreign issues andissues of supranational agencies, or unrated securities if deemed tobe of investment-grade quality by Dodge & Cox. A maximum of20% of the debt portion of the Fund may be invested in debtobligations rated below investment grade, commonly referred to ashigh-yield or “junk” bonds, if they have a minimum rating of B3 orB- by Moody’s, S&P, or Fitch, or are equivalently rated by anyNRSRO or, if unrated, are deemed to be of similar quality byDodge & Cox. The Fund may also invest in interest ratederivatives such as U.S. Treasury futures and swap agreements for avariety of purposes, including, but not limited to, managing theFund’s duration or adjusting the Fund’s exposure to debt securitieswith different maturities.

The proportions held in various debt securities may be revisedin light of Dodge & Cox’s appraisal of the economy, the relativeyields of securities in the various market sectors, the investmentprospects for issuers, and other factors. In selecting debt securities,Dodge & Cox considers many factors, including yield, credit

P A G E 1 0 ▪ D O D G E & C O X F U N D S

ratings, liquidity, call risk, duration, structure, and capitalappreciation potential.




▪ Asset allocation risk. The assumptions and theses on whichDodge & Cox bases its allocation of assets may be wrong. TheFund’s balance between equity and debt securities limits itspotential for capital appreciation relative to an all-stock fundand contributes to greater volatility relative to an all-bond fund.



▪ Interest rate risk. Debt security prices may decline due to risinginterest rates. The price of debt securities with longer maturitiesis typically affected more by rising interest rates than the price ofobligations with shorter maturities.

▪ Credit risk. An issuer or guarantor of a debt security may beunable or unwilling to make scheduled payments of interest andprincipal. Actual or perceived deterioration in an issuer’s orguarantor’s financial condition may affect a security’s value.

▪ Below investment-grade securities risk. Debt securities rated belowinvestment-grade, also known as “high-yield” or “junk”securities generally have greater credit risk, more price volatility,and less liquidity than investment-grade securities.

▪ Call risk. If interest rates fall, issuers of callable bonds may repaysecurities with higher interest rates before maturity. This couldcause the Fund to lose potential price appreciation and reinvestthe proceeds in securities with lower interest rates.

▪ Liquidity risk. The Fund may not be able to purchase or sell asecurity in a timely manner or at desired prices or achieve itsdesired weighting in a security. Liquidity risk may result fromthe lack of an active market or a reduced number and capacityof traditional market participants to make a market in fixedincome securities, and may be magnified in a rising interest rateenvironment or other circumstances that cause increased supplyin the market due to selling activity.

▪ Derivatives risk. Investing with derivatives, such as interest rateswaps and futures, involves risks additional to those associatedwith investing directly in securities. The value of a derivativemay not correlate to the value of the underlying instrument tothe extent expected. Derivative transactions may be volatile,and can create leverage, which could cause the Fund to losemore than the amount of assets initially contributed to thetransaction, if any. The Fund may not be able to close a

derivatives position at an advantageous time or price. For over-the-counter derivatives transactions, the counterparty may beunable or unwilling to make required payments and deliveries,especially during times of financial market distress.

▪ Mortgage- and asset-backed securities risk. Mortgage-relatedsecurities permit early repayment of principal based onprepayment of the underlying assets; changes in the rate ofrepayment affect the price and volatility of an investment. Ifprepayments occur faster than expected, the Fund receives lowerinterest payments than it expects. If prepayments occur slowerthan expected, it delays the return of principal to the Fund.Securities issued by certain U.S. government sponsored entities(GSEs) are not issued or guaranteed by the U.S. Treasury; thereis no assurance the U.S. government will provide support in theevent a GSE issuer cannot meet its obligations.

▪ Non-U.S. investment risk. Securities of non-U.S. issuers(including ADRs) may be less liquid, more volatile, and harderto value than U.S. securities. Non-U.S. issuers may be subject topolitical, economic, or market instability or unfavorablegovernment action in their local jurisdictions. There may be lessinformation publicly available about non-U.S. issuers and theirsecurities, and those issuers may be subject to lower levels ofgovernment regulation and oversight. Non-U.S. markets andsecurities may decline due to conditions specific to an individualcountry, including unfavorable economic conditions relative tothe United States. There may be increased risk of delayedtransaction settlement or security certificate loss. These risksmay be higher when investing in emerging market issuers.Certain of these risks may also apply to securities of U.S. issuerswith significant non-U.S. operations.


▪ Sovereign debt risk. An issuer of sovereign debt or thegovernmental authorities that control the repayment of the debtmay be unable or unwilling to repay principal or interest whendue. In the event of a default by a governmental entity on asovereign debt obligation, there may be few or no effective legalremedies for collecting on such debt.



The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showschanges in the Fund’s returns from year to year. The table shows howthe Fund’s average annual total returns for one, five, and ten yearscompare with different broad measures of market performance.


D O D G E & C O X F U N D S ▪ P A G E 1 1

DODGE & COX BALANCED FUNDAnnual total returns 2005-2014 (%)

05 06 07 08 09

−33.57

6.5913.84

28.37

10 11 1312

12.2318.32

28.37

−1.66

1.74

14

8.85




Dodge & CoxBalanced Fund 1 Year 5 Years 10 Years


sale of Fund shares 5.70 10.09 5.25S&P 500 Index (reflects no deduction for

expenses or taxes) 13.69 15.46 7.68Barclays U.S. Aggregate Bond Index

(BCAG) (reflects no deduction for expenses

or taxes) 5.95 4.46 4.71Combined Index* (60% S&P 500 &

40% BCAG) (reflects no deduction for

expenses or taxes) 10.62 11.19 6.77* The Combined Index is a composite blend of 60% of the S&P 500 Index

and 40% of the Barclays U.S. Aggregate Bond Index and represents a broadmeasure of the U.S. stock and bond markets, including market sectors inwhich the fund may invest.



FUND MANAGEMENT

Dodge & Cox serves as investment manager to the Balanced Fund. The equity portion of the Balanced Fund is managed by Dodge & Cox’sInvestment Policy Committee (IPC), which is also responsible for determining the asset allocation of the Balanced Fund. The debt portionof the Balanced Fund is managed by Dodge & Cox’s Fixed Income Investment Policy Committee (FIIPC). IPC consists of the followingnine members:



John A. Gunn Portfolio Manager 38/43

Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofFIIPC, Global Stock Investment Policy Committee (GSIPC), and International Investment PolicyCommittee (IIPC)

23/31

C. Bryan Cameron Senior Vice President, Director of Research, Portfolio Manager, Investment Analyst, and member of IIPC 23/32

Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst,and member of GSIPC, IIPC, and Global Bond Investment Policy Committee (GBIPC)

10/27

David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, andInvestment Analyst

13/22

Gregory R. Serrurier Senior Vice President, Portfolio Manager, and member of IIPC 19/31

Wendell W. Birkhofer Vice President and Portfolio Manager 13/28

Steven C. Voorhis Vice President, Portfolio Manager, Investment Analyst, and member of GSIPC 9/19

Philippe Barret, Jr. Vice President, Portfolio Manager, and Investment Analyst 2/11

FIIPC consists of the following eight members:



Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and memberof GBIPC

29/32

Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofIPC, GSIPC, and IIPC

22/31

Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, InvestmentAnalyst, and member of GBIPC

21/21

Larissa K. Roesch Vice President, Portfolio Manager, and Investment Analyst 17/18

James H. Dignan Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 13/16

Anthony J. Brekke Vice President, Portfolio Manager, and Investment Analyst 7/12

Adam S. Rubinson Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 5/13

Lucinda I. Johns Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 3/13




D O D G E & C O X I N C O M E F U N D


The Fund seeks a high and stable rate of current income,consistent with long-term preservation of capital. A secondaryobjective is to take advantage of opportunities to realizecapital appreciation.

FEES AND EXPENSES






legal, etc.) .04%







$45 $141 $246 $555

PORTFOLIO TURNOVER

The Fund incurs transaction costs when Dodge & Cox buys andsells securities (or “turns over” the portfolio). A higher portfolioturnover rate may indicate higher transaction costs and may resultin higher taxes when Fund shares are held in a taxable account.These transaction costs, which are not reflected in annual Fundoperating expenses or in the example, affect the Fund’sperformance. During the most recent fiscal year, the Fund’sportfolio turnover rate was 27% of the average value of its portfolio.


The Fund invests in a diversified portfolio of high-quality bondsand other debt securities. Under normal circumstances, the Fundwill invest at least 80% of its total assets in the followingcategories: (1) debt obligations issued or guaranteed by the U.S.government, its agencies or government sponsored entities(GSEs); (2) investment-grade debt securities (securities rated Baa3or higher by Moody’s Investors Service (Moody’s), or BBB- orhigher by Standard & Poor’s Ratings Group (S&P) or FitchRatings (Fitch), or equivalently rated by any nationally recognizedstatistical rating organization (NRSRO)), including U.S. dollar-denominated foreign issues and issues of supranational agencies;(3) unrated securities if deemed to be of investment-grade qualityby Dodge & Cox; and (4) bankers’ acceptances, bank certificatesof deposit, repurchase agreements, and commercial paper. TheFund may invest up to 25% of its total assets in U.S. dollar-denominated securities of non-U.S. issuers, including emergingmarket issuers.

Debt securities in which the Fund may invest includegovernment and government-related obligations, mortgage- andasset-backed securities, corporate and municipal bonds, and otherdebt securities, and may include fixed and floating rateinstruments. A maximum of 20% of the Fund’s total assets may beinvested in debt obligations rated below investment grade,commonly referred to as high-yield or “junk” bonds, if they have aminimum rating of B3 or B- by Moody’s, S&P, or Fitch, or areequivalently rated by any NRSRO or, if unrated, are deemed to beof similar quality by Dodge & Cox. The Fund may also invest ininterest rate derivatives such as U.S. Treasury futures and swapagreements for a variety of purposes, including, but not limited to,managing the Fund’s duration or adjusting the Fund’s exposure todebt securities with different maturities.

The proportions held in various debt securities will be revisedin light of Dodge & Cox’s appraisal of the economy, the relativeyields of securities in the various market sectors, the investmentprospects for issuers, and other factors. In selecting securities,Dodge & Cox considers many factors, including yield, creditratings, liquidity, call risk, duration, structure, and capitalappreciation potential.


You could lose money by investing in the Fund, and the Fundcould underperform other investments. You should expect theFund’s share price and total return to fluctuate. The Fund’sperformance could be hurt by:▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth

of a company or security may be incorrect or the market maycontinue to undervalue a company or security. Dodge & Coxmay not make timely purchases or sales of securities for the Fund.


▪ Credit risk. An issuer or guarantor of a debt security may beunable or unwilling to make scheduled payments of interest and


principal. Actual or perceived deterioration in an issuer’s orguarantor’s financial condition may affect a security’s value.

▪ Below investment grade securities risk. Debt securities rated belowinvestment-grade, also known as “high-yield” or “junk”securities, generally have greater credit risk, more pricevolatility, and less liquidity than investment-grade securities.

▪ Call risk. If interest rates fall, issuers of callable bonds may repaysecurities with higher interest rates before maturity. This couldcause the Fund to lose potential price appreciation and reinvestthe proceeds at lower interest rates.

▪ Derivatives risk. Investing with derivatives, such as interest rateswaps and futures, involves risks additional to those associatedwith investing directly in securities. The value of a derivativemay not correlate to the value of the underlying instrument tothe extent expected. Derivative transactions may be volatile,and can create leverage, which could cause the Fund to losemore than the amount of assets initially contributed to thetransaction, if any. The Fund may not be able to close aderivatives position at an advantageous time or price. For over-the-counter derivatives transactions, the counterparty may beunable or unwilling to make required payments and deliveries,especially during times of financial market distress.

▪ Liquidity risk. The Fund may not be able to purchase or sell asecurity in a timely manner or at desired prices or achieve itsdesired weighting in a security. Liquidity risk may result fromthe lack of an active market or a reduced number and capacityof traditional market participants to make a market in fixedincome securities, and may be magnified in a rising interest rateenvironment or other circumstances that cause increased supplyin the market due to selling activity.

▪ Mortgage- and asset-backed securities risk. Mortgage-relatedsecurities permit early repayment of principal based onprepayment of the underlying assets; changes in the rate ofrepayment affect the price and volatility of an investment. Ifprepayments occur faster than expected, the Fund receives lowerinterest payments than it expects. If prepayments occur slowerthan expected, it delays the return of principal to the Fund.Securities issued by certain GSEs are not issued or guaranteed bythe U.S. Treasury; there is no assurance the U.S. governmentwill provide support in the event a GSE issuer cannot meet itsobligations.

▪ Non-U.S. investment risk. Securities of non-U.S. issuers may beless liquid, more volatile, and harder to value than U.S.securities. Non-U.S. issuers may be subject to political,economic, or market instability, or unfavorable governmentaction in their local jurisdictions. There may be less informationpublicly available about non-U.S. issuers and their securities,and those issuers may be subject to lower levels of governmentregulation and oversight. Non-U.S. securities may decline invalue due to conditions specific to an individual country,including unfavorable economic conditions relative to theUnited States. There may be increased risk of delayedtransaction settlement or security certificate loss. These risksmay be higher when investing in emerging market issuers.Certain of these risks may also apply to securities of U.S. issuerswith significant non-U.S. operations.

▪ Emerging market risk. Emerging market securities present issuer,market, currency, liquidity, volatility, valuation, legal, political,and other risks different from, and potentially greater than, therisks of investing in securities of issuers in more developedmarkets.




The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showschanges in the Fund’s returns from year to year. The table showshow the Fund’s average annual total returns for one, five, and tenyears compare to those of a broad measure of market performance.


DODGE & COX INCOME FUNDAnnual total returns 2005-2014 (%)

05 06 07 08 09

−0.29

1.98 5.30

16.05

10 11 1312

7.17 7.940.64

4.764.68

14

5.48




Dodge & CoxIncome Fund 1 Year 5 Years 10 Years


sale of Fund shares 3.22 3.42 3.45Barclays U.S. Aggregate Bond Index

(reflects no deduction for expenses or taxes) 5.95 4.46 4.71


After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact ofstate or local taxes. Actual after-tax returns may differ depending on your individual circumstances. After-tax return figures do not apply toyou if you hold your Fund shares through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account.

FUND MANAGEMENT

Dodge & Cox serves as investment manager to the Income Fund. The Fund is managed by Dodge & Cox’s Fixed Income Investment PolicyCommittee (FIIPC), which consists of the following eight members:

Committee Member Primary Title with Investment Manager


Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and member ofGlobal Bond Investment Policy Committee (GBIPC)

26/32

Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member ofInvestment Policy Committee, Global Stock Investment Policy Committee, and International InvestmentPolicy Committee

22/31

Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, InvestmentAnalyst, and member of GBIPC

21/21

Larissa K. Roesch Vice President, Portfolio Manager, and Investment Analyst 17/18

James H. Dignan Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 13/16

Anthony J. Brekke Vice President, Portfolio Manager, and Investment Analyst 7/12

Adam S. Rubinson Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 5/13

Lucinda I. Johns Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 3/13




D O D G E & C O X G L O B A L B O N D F U N D


The Fund seeks a high rate of total return consistent with long-term preservation of capital.

FEES AND EXPENSES






legal, etc.) 1.68%

Total Annual Fund Operating Expenses 2.18%Expense Reimbursement 1.58%*

Net Expenses .60%** Dodge & Cox has contractually agreed to reimburse the Fund for all ordinary

expenses to the extent necessary to maintain Total Annual Fund Operatingexpenses at 0.60% through April 30, 2016. The term of the agreementrenews annually thereafter unless terminated with 30 days’ written notice byeither party prior to the end of the term.



then redeem all of your shares at the end of those time periods;▪ Your investment has a 5% return each year; and▪ The Fund’s total annual fund operating expenses remain the

same but Dodge & Cox or the Fund terminates the expensereimbursement agreement as of April 30, 2016.



$61 $529 $1,024 $2,389

PORTFOLIO TURNOVER

The Fund incurs transaction costs when Dodge & Cox buys andsells securities (or “turns over” the portfolio). A higher portfolioturnover rate may indicate higher transaction costs and may resultin higher taxes when Fund shares are held in a taxable account.These transaction costs, which are not reflected in annual Fund

operating expenses or in the example, affect the Fund’sperformance. From the Fund’s inception on May 1, 2014 to themost recent fiscal year end, the Fund’s portfolio turnover rate was36% of the average value of its portfolio.


The Fund invests in bonds and other debt instruments of issuers fromat least three different countries, including emerging marketcountries. The Fund is not required to allocate its investments in setpercentages to particular countries and may invest in emergingmarkets without limit. Under normal circumstances, the Fund investsat least 40% of its total assets in securities of non-U.S. issuers and atleast 80% of its total assets in debt instruments, which may, in eachcase, be represented by derivatives such as forward contracts, futurescontracts, swap agreements, or options contracts. Debt instruments inwhich the Fund may invest include, but are not limited to,government and government-related obligations, mortgage- andasset-backed securities, corporate and municipal bonds, and otherdebt securities, and may include fixed and floating rate instruments.The Fund invests in both U.S. dollar-denominated and non-U.S.currency-denominated debt instruments.

The Fund invests primarily in investment-grade debtinstruments (instruments rated Baa3 or higher by Moody’sInvestors Service (Moody’s), BBB- or higher by Standard & Poor’sRatings Group (S&P) or Fitch Ratings (Fitch), or equivalentlyrated by any nationally recognized statistical rating organization(NRSRO), or, if unrated, are deemed to be of investment-gradequality by Dodge & Cox). Up to 20% of the Fund’s total assetsmay be invested in debt obligations rated below investment grade,commonly referred to as high-yield or “junk” bonds. The Fund isnon-diversified (as defined in the 1940 Act), which allows it toinvest a greater percentage of its assets in any one issuer thanwould otherwise be the case for a diversified fund.

The Fund may enter into various currency- or interest rate-related transactions involving derivative instruments, includingforwards contracts, futures contracts, swaps agreements, andoptions contracts. The Fund may use derivatives to seek tominimize the impact of losses to one or more of its investments (asa “hedging technique”) or to implement its investment strategy.For example, the Fund may invest in derivative instruments thatprovide exposure to a specific security or market sector as asubstitute for a direct investment in the security or sector itself orto benefit from changes in the relative values of selectedcurrencies. The Fund may use interest rate derivatives for a varietyof purposes, including, but not limited to, managing the Fund’sduration or adjusting the Fund’s exposure to debt securities withdifferent maturities.

In selecting securities, Dodge & Cox considers many factors,including, without limitation, yield, structure, covenants, creditquality, liquidity, call risk, duration, and capital appreciationpotential. For all securities that are denominated in a foreigncurrency, Dodge & Cox analyzes whether to accept or hedge theassociated interest rate and currency risks. Dodge & Cox considers,among other things, a country’s economic outlook and politicalstability, the protections provided to foreign investors, relative


interest rates, exchange rates, a country’s monetary and fiscalpolicies, its debt stock, and its ability to meet its funding needs.

The Fund may purchase or sell holdings for a variety ofreasons such as to alter sector, geographic, or currency exposure orto shift the overall portfolio’s risk profile. The proportions of theFund’s assets held in various debt instruments will be revised inlight of Dodge & Cox’s appraisal of the global economy, therelative yields of securities in the various market sectors andcountries, the potential for a currency’s appreciation, theinvestment prospects for issuers, the countries’ domestic andpolitical conditions, and other factors.





▪ Credit risk. An issuer or guarantor of a debt security may beunable or unwilling to make scheduled payments of interest andprincipal. Actual or perceived deterioration in an issuer’s orguarantor’s financial condition may affect a security’s value.

▪ Below investment-grade securities risk. Debt securities rated belowinvestment grade, also known as “high-yield” or “junk” securitiesgenerally have greater credit risk, more price volatility, and lessliquidity than investment-grade securities.

▪ Call risk. If interest rates fall, issuers of callable bonds may repaysecurities with higher interest rates before maturity. This couldcause the Fund to lose potential price appreciation and reinvestthe proceeds at lower interest rates.

▪ Liquidity risk. The Fund may not be able to purchase or sell asecurity in a timely manner or at desired prices or achieve itsdesired weighting in a security. Liquidity risk may result fromthe lack of an active market or a reduced number and capacityof traditional market participants to make a market in fixedincome securities and may be magnified in a rising interest rateenvironment or other circumstances that cause increased supplyin the market due to selling activity.

▪ Non-diversification risk. As a non-diversified fund, the Fund mayinvest a larger percentage of its assets in securities of a smallernumber of issuers than a diversified fund, which means a singleissuer’s performance may affect Fund performance more than ifthe Fund were invested in a larger number of issuers.

▪ Mortgage- and asset-backed securities risk. Mortgage-relatedsecurities permit early repayment of principal based onprepayment of the underlying assets; changes in the rate ofrepayment affect the price and volatility of an investment. Ifprepayments occur faster than expected, the Fund receives lower

interest payments than it expects. If prepayments occur slowerthan expected, it delays the return of principal to the Fund.Securities issued by certain U.S. government-sponsored entities(GSEs) are not issued or guaranteed by the U.S. Treasury; thereis no assurance the U.S. government will provide support in theevent a GSE issuer cannot meet its obligations.

▪ Non-U.S. investment risk. Securities of non-U.S. issuers may beless liquid, more volatile and harder to value than U.S.securities. Non-U.S. issuers may be subject to political,economic, or market instability, or unfavorable governmentaction in their local jurisdictions. There may be less informationpublicly available about non-U.S. issuers and their securities andthose issuers may be subject to lower levels of governmentregulation and oversight. Non-U.S. securities may decline invalue due to conditions specific to an individual country,including unfavorable economic conditions relative to theUnited States. There may be increased risk of delayedtransaction settlement or security certificate loss. These risksmay be higher when investing in emerging market issuers.Certain of these risks may also apply to securities of U.S. issuerswith significant non-U.S. operations.


▪ Non-U.S. currency risk. Foreign currencies may decline relativeto the U.S. dollar, which reduces the unhedged value ofinvestments denominated in or otherwise exposed to thosecurrencies. Dodge & Cox may not hedge or may not besuccessful in hedging the Fund’s currency exposure.

▪ Derivatives risk. Investing with derivatives, such as forwardcurrency contracts, interest rate swaps, and futures contractsinvolves risks additional to those associated with investingdirectly in securities. The value of a derivative may not correlateto the value of the underlying instrument to the extentexpected. Derivative transactions may be volatile, and cancreate leverage, which could cause the Fund to lose more thanthe amount of assets initially contributed to the transaction, ifany. The Fund may not be able to close a derivatives position atan advantageous time or price. For over-the-counter derivativestransactions, the counterparty may be unable or unwilling tomake required payments and deliveries, especially during timesof financial market distress.





The following bar chart and table are intended to help youunderstand the risks of investing in the Fund. The bar chart showschanges in the Fund’s returns from year to year. The table showshow the Fund’s average annual total returns compare to those of abroad measure of market performance.

Dodge & Cox Global Bond Fund, L.L.C., a private fundmanaged and funded by Dodge & Cox (the “Private Fund”), wasreorganized into the Fund and the Fund commenced operations onMay 1, 2014. The Private Fund was organized as Delaware limitedliability company and was treated as a disregarded entity under theInternal Revenue Code of 1986, as amended (the “Code”). ThePrivate Fund commenced operations on December 5, 2012, andhad an investment objective, policies, and strategies that were, inall material respects, the same as those of the Fund, and wasmanaged in a manner that, in all material respects, complied withthe investment guidelines and restrictions of the Fund. However,the Private Fund was not registered as an investment companyunder the Investment Company Act of 1940 (the “1940 Act”),and therefore was not subject to certain investment limitations,diversification requirements, liquidity requirements, and otherrestrictions imposed by the 1940 Act and the Code, which, ifapplicable, may have adversely affected its performance. TheFund’s performance for periods prior to the commencement ofoperations on May 1, 2014, is that of the Private Fund. Theperformance of the Private Fund has not been restated because thenet total operating expense ratio of the Private Fund and the Fund(after the application of the expense reimbursement agreement)are the same. A copy of the 2012 and 2013 audited financialstatements of the Private Fund is available on the SEC’s website athttp://www/sec.gov.Archives/edgar/data/29440/000119312514133696/d647972dex99q.htm, or by calling the Fundat 800-621-3979.


DODGE & COX GLOBAL BOND FUNDAnnual total returns 2013-2014 (%)

13 14

2.59 1.67




Dodge & CoxGlobal Bond Fund 1 Year

SinceInception

(12/5/2012)

Return before taxes 1.67% 2.16%Return after taxes on distributions 1.07 1.87Return after taxes on distributions and sale of

Fund shares 0.95 1.52Barclays Global Aggregate Bond Index (reflects

no deduction for expenses or taxes) 0.58 –1.32



FUND MANAGEMENT

Dodge & Cox serves as investment manager to the Global Bond Fund. The Fund is managed by Dodge & Cox’s Global Bond InvestmentPolicy Committee (GBIPC), which consists of the following six members:



Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and member ofFixed Income Investment Policy (FIIPC)

1/32

Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst,and member of Investment Policy Committee, Global Stock Investment Policy Committee, andInternational Investment Policy Committee

1/27

Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, InvestmentAnalyst, and member of FIIPC

1/21

James H. Dignan Vice President, Portfolio Manager, Investment Analyst, and member of FIIPC 1/16

Adam S. Rubinson Vice President, Portfolio Manager, Investment Analyst, and member of FIIPC 1/13

Lucinda I. Johns Vice President, Portfolio Manager, Investment Analyst, and member of FIIPC 1/13




S U M M A R Y O F O T H E R I M P O R T A N T I N F O R M A T I O N A B O U T F U N D S H A R E S

PURCHASE AND SALE OF FUND SHARES

The Dodge & Cox International Stock Fund is closed to newinvestors, with certain limited exceptions. For more information,see the “How to Purchase Shares — Information RegardingPurchases of the Dodge & Cox International Stock Fund” sectionof the Prospectus on page 37.

The minimum initial investment for shares of a Fund is$2,500 ($1,000 for Individual Retirement Accounts (IRAs)) andthe minimum subsequent investment is $100, except that theminimum investment requirements may be waived for certainfinancial intermediaries that use the Fund as part of an assetallocation program or for certain retirement plans.

You may withdraw (redeem) any part of your account byselling shares. The sale price of your shares will be the Fund’s next-determined net asset value after Boston Financial Data Services,Inc. or an authorized agent or sub-agent receives all requireddocuments in good order. You may sell shares as described below:▪ Online: For non-IRAs, visit the Dodge & Cox Funds’ website at

dodgeandcox.com, click on “Account Access” to log into youraccount and submit your request online. A distribution may notbe processed for an IRA online at this time.

▪ Mail: Visit Dodge & Cox Funds’ website at dodgeandcox.comand click on “Forms and Guides”. Download and complete theRedemption Request Form for a non-IRA and/or the IRADistribution Request Form for an IRA. Mail the completedform(s) to “Dodge & Cox Funds, c/o Boston Financial DataServices, P.O. Box 8422, Boston, MA 02266-8422” to processyour request(s).

▪ Phone: You may call Client Services at 800-621-3979 duringbusiness hours to place redemption or distribution requests foreither an IRA or a non-IRA.

TAX INFORMATION

Each Fund will distribute substantially all of its income and capitalgains to its shareholders every year. You will be taxed on dividendsyou receive from a Fund as ordinary income and/or capital gainsunless you hold your Fund shares in a tax-deferred retirementaccount, such as an IRA, or are otherwise tax exempt in whichcase you will generally be taxed only upon withdrawal of moniesfrom the retirement account.

PAYMENTS TO FINANCIAL INTERMEDIARIES

If you purchase a Fund through an employee benefit plan,Dodge & Cox may make payments to the recordkeeper, broker/dealer, bank, or other financial institution or organization (each a“Financial Intermediary”) that provides shareholder recordkeepingor other administrative services to the plan as compensation forthose services. These payments may create a conflict of interest byinfluencing your Financial Intermediary to make available a Fundover other mutual funds or investments. You should ask yourFinancial Intermediary about differing and divergent interests andhow it is compensated for administering your Fund investment.


I N V E S T M E N T O B J E C T I V E S , R E L A T E D R I S K S , A N D D I S C L O S U R E O F P O R T F O L I O H O L D I N G S

This section takes a closer look at the investment objectives andcertain risks of investing in the Dodge & Cox Funds (each a“Fund” and, collectively, the “Funds”). This section also providesinformation regarding the Funds’ disclosure of portfolio holdings.

D O D G E & C O X I N V E S T M E N T M A N A G E M E N TA P P R O A C HFundamental bottom-up research, a long-term investment horizon,and rigorous valuation discipline are central to Dodge & Cox’sinvestment philosophy. Investment decisions are made by a teamof seasoned investment professionals based on key fundamentalfactors that we believe determine investment value over the longterm. Our investment analysts operate from a single location tofoster communication and collaboration, and each investment ideais subject to committee review for both its merits as a specificinvestment and its role in the overall portfolio. Our approachstresses an evaluation of risk relative to opportunity and we seekinvestments that we believe are undervalued by the market.

EQUITY INVESTING

Dodge & Cox’s equity investment strategy is to build a portfolio ofindividual securities that we believe are undervalued given theirlong-term prospects. Individual company research drives theselection of stocks for the Funds’ portfolios. We identifyinvestment opportunities by analyzing the long-term fundamentalsof a business, including prospective earnings, cash flow, anddividends over a three-to-five year period. Various other factors,including financial strength, economic condition, competitiveadvantage, quality of the business franchise, and competence of acompany’s management are weighed against valuation in selectingindividual securities. The Funds typically invest in medium-to-large well-established companies. It is the general practice of theFunds to invest in equity securities that have liquid secondarymarkets. Particularly when investing in securities of non-U.S.issuers, Dodge & Cox considers the economic and politicalstability of the country where the issuer is located and theprotections provided to shareholders. We consider the sale of aholding when we believe the price of a company’s stock reflectsmore optimistic expectations about the company’s prospects thanour own expectations, when our assessment of a company’s long-term fundamentals grows negative or when we identify moreattractive opportunities elsewhere.

FIXED INCOME INVESTING

Dodge & Cox’s fixed income investment strategy is to constructand manage a high average quality portfolio of securities selectedthrough bottom-up fundamental analysis and with an emphasis onvaluation. By combining fundamental research with a long-terminvestment horizon, we seek to uncover and act upon inefficienciesin the valuation of individual securities. Our credit research focuseson the factors that can influence an individual issuer’s

creditworthiness and any downside protection that exists. At thesecurity level, our analysis emphasizes the terms and conditions andstructural characteristics of each instrument. We also considereconomic trends and special circumstances that may affect anindustry or a specific issuer or issue. While considering factors suchas yield, credit quality, liquidity, call risk, duration, structure, andcapital appreciation potential, we seek to construct a fixed incomeportfolio that will generate a relatively high, sustainable incomestream without assuming undue levels of risk.

Particularly when investing outside the United States,Dodge & Cox considers a country’s financial strength and therights of foreign creditors. In particular, we evaluate a country’seconomic outlook and political stability, its monetary and fiscalpolicies, its debt stock, its regulatory framework, including itsinsolvency regime, and its ability to meet its funding needs. Forsecurities denominated in a foreign currency, we consider relativeinterest rates and exchange rates in deciding whether to accept orhedge those risks.

Dodge & Cox normally invests in an array of debt securitieswith short, intermediate, and long maturities in varyingproportions. The average maturity at any given time of the debtsecurities in the Funds depends, in part, on Dodge & Cox’sassessment of the factors described above and Dodge & Cox’sexpectation regarding the future level of inflation and interest rates.

Yields on debt securities depend on a variety of factors, includingthe general conditions of the money and debt securities markets, thesize of a particular offering, the terms and conditions of the obligation(e.g., maturity, coupon, and call features), and the credit rating of theissue. Debt securities with longer maturities or lower credit ratingstend to have higher yields and are generally subject to greater pricevolatility due to their higher interest rate and credit risks. No specificyield on shares of a Fund can be guaranteed.

D O D G E & C O X S T O C K F U N D ( S F )Investment Objective: The Fund seeks long-term growth ofprincipal and income. A secondary objective is to achieve areasonable current income. The Fund’s investment objective maynot be changed without shareholder approval.

The Fund seeks to achieve its objective by investing primarilyin a diversified portfolio of equity securities. Under normalcircumstances, the Fund will invest at least 80% of its total assets inequity securities, including common stocks, depositary receiptsevidencing ownership of common stocks, preferred stocks, andsecurities convertible into common stocks, and securities that carrythe right to buy common stocks (e.g., rights and warrants). TheFund may invest up to 20% of its total assets in U.S. dollar-denominated securities of non-U.S. issuers traded in the UnitedStates that are not in the S&P 500 Index. The investment policiesof the Fund as described above may be changed without shareholderapproval; however, these investment policies will not be changedwithout 60 days’ prior notice to shareholders.


The Fund may enter into forward currency contracts orcurrency futures contracts to hedge foreign currency exposure.

While the Fund’s long-term intent is to maintain a fully investedequity fund, the Fund may hold moderate reserves in cash and/orshort-term debt securities as Dodge & Cox deems advisable. The Fundmay purchase equity index futures contracts, such as S&P 500 futures,to equitize, or create equity market exposure approximately equal to,some or all of its available cash. For temporary, defensive purposes, theFund may invest, without limitation, in U.S. dollar-denominatedshort-term debt instruments. As a result of taking such a defensiveposition, the Fund may not achieve its investment objectives.

In an attempt to minimize unforeseen risks in holding thesecurities of any single issuer, the Fund seeks to provide investmentdiversification. Although there is no restriction on the number ofchanges in the Fund’s security holdings, purchases generally aremade with a view to holding for the long term and not for short-term trading purposes. (The Fund’s portfolio turnover rates for thefiscal years ended December 31, 2014, 2013, and 2012 were 17%,15%, and 11%, respectively.) However, during rapidly changingeconomic, market, and political conditions, portfolio turnover maybe higher than in a more stable period. A higher turnover ratemight result in increased transaction expenses and the realizationof capital gains and losses, some of which may be short-termcapital gains taxed as ordinary income (see Federal IncomeTaxes).

Further information about specific investments is provided underAdditional Information on Investments and Investment Practices.

D O D G E & C O X G L O B A L S T O C K F U N D ( G S F )Investment Objective: The Fund seeks long-term growth ofprincipal and income. The Fund’s investment objective may notbe changed without shareholder approval.

The Fund seeks to achieve its objective by investing primarilyin a diversified portfolio of equity securities from at least threedifferent countries, including emerging market countries. TheFund is not required to allocate its investments in set percentagesin particular countries and may invest in emerging marketswithout limit. Under normal circumstances, the Fund will invest atleast 40% of its total assets in securities of non-U.S. companies andat least 80% of its total assets in equity securities, includingcommon stocks, depositary receipts evidencing ownership ofcommon stocks, preferred stocks, securities convertible intocommon stocks, and securities that carry the right to buy commonstocks (e.g., rights and warrants). The investment policies of theFund as described above may be changed without shareholderapproval; however, these investment policies will not be changedwithout 60 days’ prior notice to shareholders.


While the Fund’s long-term intent is to maintain a fullyinvested equity fund, the Fund may hold moderate reserves in cashor short-term debt securities as Dodge & Cox deems advisable.The Fund may purchase equity index futures contracts, such asS&P 500 futures, to equitize, or create equity market exposure

approximately equal to, some or all of its available cash. Fortemporary, defensive purposes, the Fund may invest, withoutlimitation, in U.S. dollar-denominated short-term debtinstruments. As a result of taking such a defensive position, theFund may not achieve its investment objectives.

In an attempt to minimize unforeseen risks in holding thesecurities of any single issuer, the Fund seeks to provide investmentdiversification. Although there is no restriction on the number ofchanges in the Fund’s security holdings, purchases generally aremade with a view to holding for the long term and not for short-term trading purposes. (The Fund’s portfolio turnover rate for thefiscal year ended December 31, 2014, 2013, and 2012 were 17%,24%, and 12%, respectively.) However, during rapidly changingeconomic, market, and political conditions, portfolio turnover maybe higher than in a more stable period. A higher turnover ratemight result in increased transaction expenses and the realization ofcapital gains and losses, some of which may be short-term capitalgains taxed as ordinary income (see Federal Income Taxes).


D O D G E & C O X I N T E R N A T I O N A LS T O C K F U N D ( I S F )Investment Objective: The Fund seeks long-term growth ofprincipal and income. The Fund’s investment objective may notbe changed without shareholder approval.

The Fund seeks to achieve its objective by investing primarilyin a diversified portfolio of equity securities issued by non-U.S.companies from at least three different countries, includingemerging market countries. The Fund is not required to allocate itsinvestments in set percentages in particular countries and mayinvest in emerging markets without limit. Under normalcircumstances, the Fund will invest at least 80% of its total assetsin equity securities of non-U.S. companies, including commonstocks, depositary receipts evidencing ownership of commonstocks, preferred stocks, securities convertible into common stocks,and securities that carry the right to buy common stocks (e.g.,rights and warrants). The investment policies of the Fund asdescribed above may be changed without shareholder approval;however, these investment policies will not be changed without 60days’ prior notice to shareholders.


While the Fund’s long-term intent is to maintain a fullyinvested equity fund, the Fund may hold moderate reserves in cashor short-term debt securities as Dodge & Cox deems advisable. TheFund may purchase equity index futures contracts, such as S&P 500futures, to equitize, or create equity market exposure approximatelyequal to, some or all of its available cash. For temporary, defensivepurposes, the Fund may invest, without limitation, in U.S. dollar-denominated short-term debt instruments.

In an attempt to minimize unforeseen risks in holding thesecurities of any single issuer, the Fund seeks to provide investmentdiversification. Although there is no restriction on the number of


changes in security holdings, purchases generally are made with aview to holding for the long term and not for short-term tradingpurposes. (The Fund’s portfolio turnover rates for the fiscal yearsended December 31, 2014, 2013, and 2012 were 12%, 13%, and10%, respectively.) However, during rapidly changing economic,market, and political conditions, portfolio turnover may be higherthan in a more stable period. A higher turnover rate might resultin increased transaction expenses and the realization of capitalgains and losses, some of which may be short-term capital gainstaxed as ordinary income (see Federal Income Taxes).


D O D G E & C O X B A L A N C E D F U N D ( B F )Investment Objective: The Fund seeks regular income,conservation of principal, and an opportunity for long-term growthof principal and income. The Fund’s investment objective may notbe changed without shareholder approval.

Under normal circumstances, the Fund will invest no morethan 75% and no less than 25% of its total assets in equitysecurities. Reasonable appreciation in favorable periods andconservation of principal in adverse times are objectives thatrequire flexibility in managing the assets of the Fund underconstantly changing investment conditions. The proportions ofFund assets held in equity and debt securities are revised byDodge & Cox based on its appraisal of business and investmentprospects. The Fund may invest up to 20% of its total assets inU.S. dollar-denominated securities of non-U.S. issuers traded inthe United States (such as ADRs and Yankee bonds) that are notin the S&P 500. The investment policies of the Fund as describedabove may be changed without shareholder approval; however,these investment policies will not be changed without 60 days’prior notice to shareholders.

Equity securities in which the Fund may invest includecommon stocks, depositary receipts evidencing ownership ofcommon stocks, preferred stocks, securities convertible intocommon stocks, and securities that carry the right to buy commonstocks (e.g., rights and warrants). The Fund may purchase equityindex futures contracts, such as S&P 500 futures, to equitize, orcreate equity market exposure approximately equal to, some or all ofits available cash.

The Fund invests the debt portion of its assets primarily indebt obligations issued or guaranteed by the U.S. government, itsagencies or GSEs, and investment-grade debt securities (securitiesrated Baa3 or higher by Moody’s, BBB- or higher by S&P or Fitch,or equivalently rated by any NRSRO or, if unrated, are deemed tobe of investment-grade quality by Dodge & Cox). A maximum of20% of the debt portion of the Fund may be invested in debtobligations rated below investment grade, commonly referred to ashigh-yield or “junk” bonds, if they have a minimum rating of B3 orB- by Moody’s, S&P, or Fitch, or are equivalently rated by anyNRSRO or if unrated, are deemed to be of similar quality by Dodge& Cox. The Fund may only purchase collateralized mortgageobligations that are issued or guaranteed by a U.S. government

agency or GSE or that are rated at least AA- by S&P, Fitch, orMoody’s or are equivalently rated by another NRSRO.

The Fund may enter into forward currency contracts orcurrency futures contracts to hedge foreign currency exposure. TheFund may invest in interest rate derivatives such as U.S. Treasuryfutures and swap agreements for a variety of purposes, including,but not limited to, managing the Fund’s duration or adjusting theFund’s exposure to debt securities with different maturities. Inaddition, the Fund may invest in credit default swaps to increase ordecrease credit exposure to a particular issuer or a group of issuersthat comprise a particular segment of the debt market

In seeking to achieve the objectives of the Fund,Dodge & Cox may purchase securities on a when-issued basis andpurchase or sell securities for delayed delivery. The Fund may holdmoderate reserves in cash or short-term debt securities and fortemporary, defensive purposes, may invest without limitation inU.S. dollar denominated short-term debt instruments.

In an attempt to minimize unforeseen risks in holding thesecurities of any single issuer, the Fund seeks to provide investmentdiversification. Although there is no restriction on the number ofchanges in the Fund’s security holdings, purchases generally aremade with a view to holding for the long term and not for short-term trading purposes. (The Fund’s portfolio turnover rates for thefiscal years ended December 31, 2014, 2013, and 2012 were 23%,25%, and 16%, respectively.) However, during rapidly changingeconomic, market, and political conditions, portfolio turnover maybe higher than in a more stable period. A higher turnover ratemight result in increased transaction expenses and the realizationof capital gains and losses, some of which may be short-termcapital gains taxed as ordinary income (see Federal IncomeTaxes).


D O D G E & C O X I N C O M E F U N D ( I F )Investment Objective: The Fund seeks a high and stable rate ofcurrent income, consistent with long-term preservation of capital.A secondary objective is to take advantage of opportunities torealize capital appreciation. The Fund’s investment objective maynot be changed without shareholder approval.

The Fund seeks to achieve its objectives by investing in adiversified portfolio of debt securities. Under normal circumstances,the Fund will invest at least 80% of its total assets in the followingcategories: (1) debt obligations issued or guaranteed by the U.S.government, its agencies, or GSEs; (2) investment-grade debtsecurities (securities rated Baa3 or higher by Moody’s, BBB- orhigher by S&P or Fitch, or equivalently rated by any NRSRO),including U.S. dollar-denominated foreign issues and issues ofsupranational agencies; (3) unrated securities, if deemed to be ofinvestment-grade quality by Dodge & Cox; and (4) bankers’acceptances, bank certificates of deposit, repurchase agreements,and commercial paper. Debt securities in which the Fund mayinvest include government and government-related obligations,mortgage- and asset-backed securities, corporate and municipal


bonds, and other debt securities, and may include fixed and floatingrate instruments. The Fund may invest up to 25% of its total assetsin U.S. dollar-denominated securities of non-U.S. issuers includingemerging market issuers. The investment policies of the Fund asdescribed above may be changed without shareholder approval;however, these investment policies will not be changed without 60days’ prior notice to shareholders.

The Fund may also invest in securities not included in categories(1) through (4) above, including preferred stocks and convertiblesecurities. Up to 20% of the Fund’s total assets may be invested indebt obligations rated below investment grade, commonly referred toas high-yield or “junk” bonds, if they have a minimum rating of B3 orB- by Moody’s, S&P, or Fitch, or are equivalently rated by anyNRSRO or if unrated, are deemed to be of similar quality byDodge & Cox. The Fund may only purchase collateralized mortgageobligations that are issued or guaranteed by a U.S. governmentagency or GSE or that are rated at least AA- or the equivalent by anNRSRO. The Fund seeks relative price appreciation by selectingsecurities Dodge & Cox believes to be undervalued based on researchand fundamental analysis and by making gradual adjustments in theaverage maturity of the Fund’s portfolio.

The Fund may invest in interest rate derivatives such as U.S.Treasury futures contracts and swap agreements for a variety ofpurposes, including, but not limited to, managing the Fund’s durationor adjusting the Fund’s exposure to debt securities with differentmaturities. In addition, the Fund may invest in credit default swaps toincrease or decrease credit exposure to a particular issuer or a group ofissuers that comprise a particular segment of the debt market.

In seeking to achieve the objectives of the Fund, Dodge &Cox may purchase securities on a when-issued basis and purchaseor sell securities for delayed delivery. The Fund may hold moderatereserves in cash or short-term debt securities and, for temporary,defensive purposes, may invest without limitation in U.S. dollar-denominated short-term debt instruments.

Although there is no restriction on the number of changes inthe Fund’s security holdings, purchases generally are made with aview to holding for the long term and not for short-term tradingpurposes. (The Fund’s portfolio turnover rates for the fiscal yearsended December 31, 2014, 2013, and 2012 were 27%, 38%, and26%, respectively.) However, during rapidly changing economic,market, and political conditions, portfolio turnover may be higherthan in a more stable period. A higher turnover rate might resultin increased transaction expenses and the realization of capitalgains and losses (see Federal Income Taxes).


D O D G E & C O X G L O B A L B O N D F U N D ( G B F )Investment Objective: The Fund seeks a high rate of total returnconsistent with long-term preservation of capital.

The Fund seeks to achieve its investment objective byinvesting in bonds and other debt instruments of issuers from atleast three different countries, including emerging market countries.The Fund is not required to allocate its investments in set

percentages to particular countries and may invest in emergingmarkets without limit. Under normal circumstances, the Fundinvests at least 40% of its total assets in securities of non-U.S.issuers and at least 80% of its total assets in debt instruments, whichmay, in each case, be represented by derivatives such as forwardscontracts, futures contracts, swap agreements, or options contracts.The investment policies of the Fund as described above may bechanged without shareholder approval; however, these investmentpolicies will not be changed without 60 days’ prior notice toshareholders.

Debt instruments in which the Fund may invest include, butare not limited to, government and government-relatedobligations, mortgage- and asset-backed securities, corporate andmunicipal bonds, collateralized mortgage obligations, and otherdebt securities, and may include fixed and floating rateinstruments. The Fund invests in both U.S. dollar-denominatedand non-U.S. currency-denominated debt instruments across allsectors. The Fund invests primarily in investment-grade debtinstruments (instruments rated Baa3 or higher by Moody’s, BBB-or higher by S&P or Fitch, or equivalently rated by any NRSRO,or, if unrated, are deemed to be of investment-grade quality byDodge & Cox). Up to 20% of the Fund’s total assets may beinvested in below investment-grade debt instruments, commonlyreferred to as high-yield or “junk” bonds. The Fund may onlypurchase CMO bonds that are issued or guaranteed by a U.S.government agency or GSE or that are rated at least BBB- or theequivalent by an NRSRO. The Fund is non-diversified, as definedunder the 1940 Act, which allows it to invest a greater percentageof its assets in any one issuer than would otherwise be the case.

The Fund may purchase or sell holdings for a variety ofreasons such as to alter sector, geographic, or currency exposure orto shift the overall portfolio’s risk profile. In seeking to achieve theobjective of the Fund, Dodge & Cox may purchase securities on awhen-issued basis and purchase or sell securities for delayeddelivery. The Fund may hold moderate reserves in cash or short-term debt securities and for temporary, defensive purposes, mayinvest without limitation in U.S. dollar-denominated short-termdebt instruments.

The Fund may buy or sell foreign currencies and enter intovarious currency or interest rate-related transactions involvingderivative instruments, including forwards, futures, swaps, andoptions. The Fund may use derivatives either to hedge or seek tominimize risks relating to other investments or to create exposureto interest rates, securities, or currencies as a substitute for directinvestment. The Fund may use interest rate derivatives for avariety of purposes, including, but not limited to, managing theFund’s duration or adjusting the Fund’s exposure to debt securitieswith different maturities. In addition, the Fund may invest incredit default swaps to increase or decrease credit exposure to aparticular issuer or a group of issuers that comprise a particularsegment of the debt market. The Fund’s use of derivatives is relatedto the implementation of its overall primary investment strategy ofinvesting in a portfolio of debt securities. However, the Fund is notintended to be a vehicle through which shareholders can invest in,or otherwise seek exposure to, derivatives.


Although there is no restriction on the number of changes inthe Fund’s security holdings, purchases generally are made with aview to holding for the long term and not for short-term tradingpurposes. (The Fund’s portfolio turnover rate for the period fromMay 1, 2014 to December 31, 2014 was 36%.) However, duringrapidly changing economic, market, and political conditions,portfolio turnover may be higher than in a more stable period. Ahigher turnover rate might result in increased transaction expensesand the realization of capital gains and losses (see FederalIncome Taxes).


I N V E S T M E N T R E S T R I C T I O N SThe Funds are subject to additional investment restrictions whichare described in the Statement of Additional Information (SAI).

The percentage limitations included in this prospectus andSAI apply at the time of purchase of a security. So, for example, if aFund exceeds a limit as a result of market fluctuations or the sale ofother securities, it will not be required to dispose of any securities.

D I S C L O S U R E O F P O R T F O L I O H O L D I N G S

A complete description of the Funds’ policies and procedures withrespect to the disclosure of the Funds’ portfolio securities isavailable in the SAI.

The Funds provide a complete list of their holdings four timesin each fiscal year, as of the end of each quarter. The Funds file thelists with the SEC on Form N-CSR (second and fourth quarters)and Form N-Q (first and third quarters). Shareholders may viewthe Funds’ Forms N-CSR and N-Q on the SEC’s website atsec.gov. Forms N-CSR and N-Q may also be reviewed and copiedat the SEC’s Public Reference Room in Washington, DC.Information regarding the operations of the Public ReferenceRoom may be obtained by calling 202-551-8090 (direct) or800-SEC-0330 (general SEC number). A list of the Funds’ quarter-end holdings is also available at dodgeandcox.com on or about15 days following each quarter end and remains available on thewebsite until the list is updated for the subsequent quarter.


A D D I T I O N A L I N F O R M A T I O N O N I N V E S T M E N T S A N D I N V E S T M E N T P R A C T I C E S

The following table identifies investments and investment practices that are likely to be used by the Funds in seeking to achieve theirobjectives. The table highlights the differences and similarities among the Funds in their use of these techniques and other investmentpractices and investment instruments. This is not a complete list of every investment type or investment practice that a Fund may use and aFund may use an investment type or practice even if it is not marked below. More information about these investments and investmentpractices is provided below; information about these and other investments and investment practices is provided in the Statement ofAdditional Information.

Investment or Practice SF GSF ISF BF IF GBF

Asset-Backed Securities X X X

Cash Equivalents X X X X X X

Corporate Bonds X X X

Covered Bonds X X X

Depositary Receipts X X X X X

Derivatives X X X X X X

Credit Derivatives X X X

Currency Derivatives X X X X X

Currency Forwards and Futures X X X X X

Currency Swaps, Cross-Currency Swaps and Options X

Equity Index Futures X X X X

Interest Rate Derivatives X X X

Equity Securities X X X X

Common Stocks X X X X

Hybrid Securities X X X X X X

Mortgage-Backed Securities X X X

Collateralized Mortgage Obligations X X X

Mortgage Pass-Through Securities X X X

Municipal Bonds X X X

Non-U.S. Securities X X X X X X

Private Placement Securities X X X X X X

Sovereign and Government-Related Debt X X X

U.S. Government Obligations X X X X X X

When-Issued Securities X X X X X X

Asset-Backed Securities. Asset-backed securities (“ABS”)are bonds issued through special purpose vehicles and backed bypools of loans or other receivables. ABS are created from manytypes of assets, including home equity loans, auto loans, studentloans, and credit card receivables. The credit quality of an ABSsecurity depends on the quality and performance of theunderlying assets and/or the level of any credit support providedto the structure.

Cash Equivalents. Cash equivalents are short-datedinstruments that are readily convertible into cash. They mayinclude bank obligations, commercial paper, and repurchaseagreements. Bank obligations include certificates of deposit andbankers’ acceptances. Commercial paper is a short-termpromissory note issued by a corporation, which may have afloating or variable rate. Repurchase agreements are transactionsunder which a Fund purchases a security from a dealercounterparty and agrees to resell the security on a specified futuredate at the same price, plus a specified interest rate.

Corporate Bonds. Corporate bonds are debt securities issuedby corporations and similar entities, including real estateinvestment trusts or limited partnerships. Bonds pay a specifiedamount of interest, usually at regular intervals, and repay theamount of their principal investment, usually at maturity.

Covered Bonds. Covered bonds are debt securities issued bybanks and are secured by collateral, typically mortgages. In theevent of a default, bondholders also have an unsecured claimagainst the issuing bank if the underlying collateral is insufficientto repay amounts owing in respect of the bonds.

Depositary Receipts. Depositary receipts, includingAmerican Depositary Receipts, Global Depositary Receipts,European Depositary Receipts and Global Depositary Notes, arecertificates evidencing ownership of securities of a foreign issuer.The certificates are issued by depositary banks and the underlyingsecurities are held in trust by a custodian bank or similarinstitution. Depositary receipts may be purchased on securitiesexchanges or directly from dealers.


Derivatives.Credit Derivatives. Credit derivatives are swap

agreements based on the credit risk of one or more referencedissuers of debt. In a single-name credit default swap, one party(the “buyer” of credit protection) pays the other party (the“seller” of credit protection) an upfront and/or a periodicstream of payments over the term of the contract or until theoccurrence of a “credit event,” such as a bankruptcy of theissuer referenced in the contract. If a credit event occurs, theseller pays the buyer the “par value” (full notional value) ofthe credit default swap in exchange for an equal face amountof the referenced issuer’s debt securities. If the credit defaultswap is cash settled, the seller is required to make a paymentequal to the difference between the par value and the marketvalue of such securities. An index credit default swap operatessimilarly except that it refers to a published list of issuers, eachrepresenting a pro-rata portion of the total notional amount.If a credit event occurs with respect to any issuer, the partiessettle only the portion of the trade related to that issuer, andthe trade continues with respect to the remaining names.

Currency Derivatives. Currency derivatives can be usedto manage non-U.S. currency exposure or hedge non-U.S.interest rate risk or to take long or short positions with respectto currencies or non-U.S. interest rates. The Funds may usecurrency derivatives to lock in the U.S. dollar purchase priceof a non-U.S. dollar-denominated security or to hedge othertypes of exposure to non-U.S. currencies. Currencyderivatives may be used in anticipation of an increase ordecrease of the value of one currency relative to another. TheFunds may also exchange currencies on a “spot” basis. TheGlobal Bond Fund may take long or short positions incurrencies regardless of whether those positions are intendedto hedge exposure created by other investments.

Currency Forwards and Futures. Currency futurescontracts are agreements under which one party agrees tomake, and the other party agrees to accept, delivery of aspecified currency amount at a specified future time andprice. Futures contracts are standardized, traded througha national (or foreign) exchange, and cleared through anaffiliate of the exchange. Currency forward contracts aresimilar to currency futures contracts, but are individuallynegotiated and privately traded. Although some currencyfutures and forwards contracts by their terms call foractual delivery or acceptance of currency, in many casesthe contracts are settled with a cash paymentrepresenting the difference in value between twoamounts of different currencies.

Currency Swaps, Cross-Currency Swaps andCurrency Options. A currency swap (or FX swap) is atransaction under which the parties agree to buy and sellidentical amounts of two currencies on two differentdates. This is typically arranged as a spot currencytransaction that will be reversed at a set date through anoffsetting forward transaction. A cross-currency swap isan interest rate swap in which each party makes

payments in a different currency. Typically, uponinitiation of a cross-currency swap, the two partiesexchange principal amounts of the specified currencies.During the life of the swap, each party makes paymentsto the other in a specified currency based on applying aspecified rate to the principal amount. At the maturity ofthe swap, the parties reverse the initial exchange of theprincipal amounts in the two currencies. An option is anagreement that gives the option holder the right but notthe obligation to buy or sell the underlying asset at aspecified price within a period of time or on a specifieddate in exchange for a premium payment or a fee. TheDodge & Cox Global Bond Fund may invest in privatelynegotiated or exchange-traded options to buy or sellcurrencies at specified prices in the future.Equity Index Futures. Equity index futures contracts

can be used to create exposure to a stock index such as theS&P 500 or MSCI. The purchaser of an equity index futurebuys the right to receive a payment corresponding to anyincrease in the referenced index as of a specified future dateand incurs the obligation to make a payment corresponding toany decrease in the referenced index as of such date. Futurescontracts are standardized, traded through a national (orforeign) exchange, and cleared through an affiliate of theexchange.

Interest Rate Derivatives: Interest Rate Futures andInterest Rate Swaps. Interest rate futures contracts includeagreements under which one party agrees to make, and theother party agrees to accept, delivery of a specified interest-bearing security, at a specified future time and price. Interestrate derivatives also include futures contracts that relate to aparticular reference interest rate (e.g., LIBOR or EURIBOR)and futures contracts on U.S. or non-U.S. government debt(e.g., Treasury or Bund futures contracts). Interest rate futuresare standardized, traded through a national (or foreign)exchange and cleared through an affiliate of the exchange.Interest rate swaps are transactions under which each partyagrees to make payments to the other based on applying adifferent interest rate to the same notional amount. One ofthe rates may be fixed and the other floating, or both ratesmay be floating. Some interest rate swaps are traded on swapexecution facilities, while others are traded directly withdealer counterparties. Some interest rate swaps are clearedthrough central counterparties. A Fund may enter intointerest rate futures or swaps for a variety of purposes inconnection with the management of the interest rateexposure of its portfolio, including adjusting portfolioduration hedging against possible increases or decreases inrates or increasing or decreasing exposure to interest rates.Equity Securities. Equity securities represent ownership

shares in a company, and include securities that convey an interestin, may be converted into or give holders a right to purchase orotherwise acquire such ownership shares in a company.

Common Stocks. Common stocks represent shares ofownership in a company. After other company obligations are


satisfied, common stockholders participate in company profitson a pro-rata basis; profits may be paid out in dividends orreinvested in the company to help it grow. Increases anddecreases in earnings are usually reflected in a company’sstock price, so common stocks generally have the greatestappreciation and depreciation potential of allcorporate securities. Ownership of common stock of a non-U.S. company may be represented by depositary receipts(which represent an interest in non-U.S. securities held by acustodian bank).

Hybrid Securities. Hybrid securities combine both debtand equity characteristics. Types of hybrid securities include,without limitation, capital securities, convertible securities,preferred stock, and warrants.

Capital Securities. Capital securities may be issuedin the form of preferred securities or subordinated debtsecurities. Typically, they are subordinated to an issuer’ssenior debt, but senior to the issuer’s common stock.Capital securities may be long-dated or perpetual (i.e.,have no maturity) and typically distribute income on amonthly, quarterly or semi-annual basis. Issuers arepermitted to defer income payments (which may or maynot accumulate for future payment). Capital securitiesmay contain call or maturity extension features.

Convertible Securities. Convertible securities arepreferred stock or debt securities that are convertibleinto common stock at a specified price during a specifiedperiod of time or upon the occurrence of a specifiedevent, such as a reduction in the issuer’s capital below acertain threshold. Traditionally, convertible securitieshave paid dividends or interest at rates higher thancommon stock dividend rates but lower thannonconvertible securities. They generally participate inthe appreciation or depreciation of the underlying stockinto which they are convertible, but to a lesser degree.

Preferred Stock. Preferred stock is typicallysubordinated to an issuer’s senior debt, but senior to theissuer’s common stock. Typically, preferred stock isstructured as a long-dated or perpetual bond thatdistributes income on a regular basis. Issuers arepermitted to skip (“non-cumulative” preferred stock) ordefer (“cumulative” preferred stock) distributions.Preferred stock may be convertible into common stockand may contain call or maturity extension features.

Warrants. Warrants are options to buy a statednumber of shares of common stock at a specified priceanytime during the life of the warrants (generally two ormore years). They can be highly volatile and may haveno voting rights, pay no dividends, and have no rightswith respect to the assets of the entity issuing them.

Mortgage-Backed Securities. Mortgage-backed securities(MBS) are a type of ABS secured by mortgage loans.

Collateralized Mortgage Obligations. Collateralizedmortgage obligations (CMOs) are a type of MBS backed byU.S. government agency- or GSE-guaranteed mortgage

pass-through securities. They may be issued by U.S.government agencies, GSEs, or private issuers. CMOs aretypically issued in multiple classes, or “tranches,” of bonds,each with a different level of seniority and credit risk. Eachtranche is traded and valued separately. Payments of interestand principal rely on payments made in respect of theunderlying mortgage pass-through securities. Typically, allpayments received are applied first to pay interest on thevarious tranches, starting with the most senior, and then topay down principal on the various tranches, again startingwith the most senior. No principal payments are made on atranche until the entire principal of the more senior trancheshas been repaid.

Mortgage Pass-Through Securities. Mortgage pass-through securities represent ownership in “pools” of mortgageloans and are called “pass-throughs” because principal andinterest payments are passed through to security holdersmonthly. These securities may be issued and guaranteed by anagency of the U.S. government or GSE, or by a private entity.Security holders receive payments based on scheduledpayments of interest and principal and unscheduledprepayments of principal on the underlying mortgage loans.The market value of these securities depends, in part, onexpectations about the rate at which the underlying loans willbe prepaid or default.Municipal Bonds. Municipal bonds are debt obligations

issued by states, municipalities, and other political subdivisions,agencies, authorities, and instrumentalities of states and multi-state agencies or authorities, the interest on which may be exemptfrom federal and/or state income tax. Municipal bonds includesecurities from a variety of sectors.

Non-U.S. Securities. Each Fund may invest in U.S. dollar-denominated securities of non-U.S. issuers traded in the UnitedStates. Some Funds may also invest in foreign currency-denominated securities of non-U.S. issuers. For purposes of thisprospectus, non-U.S. (or foreign) issuers are generally non-U.S.governments or companies organized outside the United States,but the Funds may make a different designation incertain circumstances.

Private Placement Securities. The Funds may invest insecurities issued in private placements, including 144A securities.Such securities are subject to legal or contractual restrictions onresale and may include equity or debt securities of U.S. and non-U.S. issuers that are issued without registration with the SEC,including offerings outside the United States. Private placement orrestricted securities are often less liquid than registered securitiestraded on established secondary markets and may be consideredilliquid.

Sovereign and Government-Related Debt. Sovereign debtincludes securities issued or guaranteed by a foreign sovereigngovernment or its agencies, authorities, or political subdivisions.Government-related debt includes securities issued by non-U.S.regional or local governmental entities or government-controlledentities. In the event an issuer of sovereign debt or government-related debt is unable or unwilling to make scheduled payments of


interest or principal, holders may be asked to participate in arestructuring of the debt and to extend further credit to theissuer.

U.S. Government Obligations. A portion of each Fund maybe invested in obligations issued or guaranteed by the U.S.government, its agencies, or government-sponsored enterprises(“GSEs”). Some obligations purchased by the Funds are backedby the full faith and credit of the U.S. government and areguaranteed as to both principal and interest by the U.S. Treasury.Examples of these include direct obligations of the U.S. Treasury,such as U.S. Treasury bills, notes, and bonds, and indirectobligations of the U.S. Treasury, such as obligations ofGovernment National Mortgage Association, the Small BusinessAdministration, the Maritime Administration, the FarmersHome Administration, and the Department of Veterans Affairs.

While the obligations of many of the agencies of the U.S.government are not direct obligations of the U.S. Treasury, theyare generally backed indirectly by the U.S. government. Some ofthe agencies are indirectly backed by their right to borrow fromthe U.S. government, such as the Federal Financing Bank andthe U.S. Postal Service. Other agencies and GSEs havehistorically been supported solely by the credit of the agency or

GSE itself, but are given additional support due to the U.S.Treasury’s authority to purchase their outstanding debtobligations. GSEs include, among others, the Federal NationalMortgage Association (“Fannie Mae”), Federal Home LoanMortgage Corporation (“Freddie Mac”), the Federal Home LoanBanks, and the Federal Farm Credit Banks.

In September 2008, the U.S. Treasury placed Fannie Mae andFreddie Mac into conservatorship and has since increased its supportof these two GSEs through substantial capital commitments andenhanced liquidity measures, which include a line of credit. The U.S.Treasury also extended a line of credit to the Federal Home LoanBanks. No assurance can be given that the U.S. government wouldprovide continued support to GSEs, and these entities’ securities areneither issued nor guaranteed by the U.S. Treasury.

When-Issued Securities. When-issued securities are securitiesthat have been authorized, but not yet issued. When-issuedsecurities are purchased at a specific price for settlement on a futuredate in order to secure what is considered an advantageous price oryield at the time of entering into the transaction. A fund thatpurchases a when-issued security assumes all the rights and risks ofownership, including the risks of price and yield fluctuations andthe risk that the security will not be issued as anticipated.

PRINCIPAL INVESTMENT RISKS

Investors should recognize that investing in securities presents certain risks that cannot be avoided. There is no assurance that theinvestment objectives of any Fund will be achieved. The following table summarizes some of the principal risks involved in investing ineach of the Funds and highlights certain differences and similarities among the Funds in their exposure to various types of risks. This is not acomplete list of every risk involved in investing in the Funds and a Fund may have exposure to a risk factor even if it is not marked below.For example, investments in equity securities by the Stock Fund, Global Stock Fund, International Stock Fund, and Balanced Fund maycreate indirect exposure to a variety of risks to which the issuers of those securities are exposed, which may include interest rate, credit, andcurrency risk. There is more information about these risks in the Statement of Additional Information (SAI).

Risk SF GSF ISF BF IF GBF

Asset Allocation Risk X

Below Investment Grade Securities Risk X X X

Call Risk X X X

Counterparty Risk X X X X X X

Credit Risk X X X

Derivatives Risk X X X X X X

Emerging Markets Risk X X X X X X

Equity Risk X X X X

Hybrid Securities Risk X X X X X X

Interest Rate Risk X X X

Liquidity Risk X X X X X X

Manager Risk X X X X X X

Market Risk X X X X X X

Mortgage- and Asset-Backed Securities Risk X X X

Non-Diversification Risk X

Non-U.S. Currency Risk X X X X X

Non-U.S. Investment Risk X X X X X X

Regulatory Risk X X X X X X

Sovereign and Government-Related Debt Risk X X X

U.S. Municipal Bond Risk X X X


Asset Allocation Risk. Dodge & Cox’s determination of aFund’s broad asset allocation mix will affect that Fund’sperformance. Dodge & Cox’s evaluations and assumptionsregarding asset classes may not successfully achieve the Fund’sinvestment objective in view of actual market trends. A Fund’sbalance between equity and debt securities limits its potential forcapital appreciation relative to an all-stock fund and contributes togreater volatility relative to an all-bond fund.

Below Investment-Grade Securities Risk. Debt securitiesrated below investment grade, also known as “high-yield” or “junk”securities, have speculative characteristics. Below investment-grade securities are often issued by smaller, less creditworthycompanies or by highly levered (indebted) companies, which aregenerally less able than more financially stable companies to makescheduled payments of interest and principal. These securitiestypically yield a higher level of current income than higher-ratedsecurities, but generally have greater credit and call risk, moreprice volatility, and less liquidity. An economic downturn, risinginterest rates, or negative development with respect to an issuermay affect the price and/or liquidity of a below investment-gradesecurity more than an investment-grade security, and may reduce aFund’s ability to sell these securities at an advantageous time orprice. An explanation of Moody’s, Fitch’s, and S&P’s ratingcategories is included in Appendix A to the SAI.

Call Risk. Issuers of callable bonds are permitted to redeemthese bonds before their full maturities. Buying a callable bondexposes a Fund to economic risks similar to selling call options.Issuers may call outstanding securities before their maturity for anumber of reasons, including decreases in prevailing interest ratesor improvements to the issuer’s credit profile. If an issuer calls asecurity in which a Fund is invested, that Fund could lose potentialprice appreciation and be forced to reinvest the proceeds insecurities that bear a lower interest rate or more credit risk.

Counterparty Risk. Non-cleared derivatives, such as currencyforwards, and other principal (i.e., non-exchange traded)investments are subject to the risk that a counterparty may notmake payments or deliveries when required to do so. Deteriorationin the actual or perceived creditworthiness of a counterparty mayaffect the value of a derivative or other transaction with thatcounterparty. Historically, a number of broker-dealers and otherfinancial institutions have experienced extreme financialdifficulty, sometimes resulting in bankruptcy. Counterparties maybecome subject to special resolution regimes in the United Statesand other jurisdictions, which may affect a fund’s ability toterminate and exercise remedies in respect of derivative positions.Although we monitor the creditworthiness of our counterparties,there can be no assurance that a Fund’s derivative counterpartiesor an exchange or clearing house will not experience financialdifficulties, possibly resulting in losses to that Fund.

Credit Risk. The value of a debt security may decline if themarket believes it is less likely that the issuer will make allpayments of interest and principal as required. This could occurbecause of actual or perceived deterioration in the issuer’s or a

guarantor’s financial condition, or in the case of ABS, thelikelihood that the loans backing a security will be repaid in full. AFund could lose money if the issuer or guarantor of a debt securitybecomes bankrupt or subject to a special resolution regime, or isotherwise unable or unwilling to make timely interest and/orprincipal payments, or honor its obligations. Securities are subjectto varying degrees of credit risk, which may be reflected by theircredit ratings; however, such ratings may overestimate orunderestimate the likelihood of default. The credit risk associatedwith corporate debt securities may change as the result of an eventsuch as a large dividend payment, leveraged buyout, debtrestructuring, merger, or recapitalization; such events areunpredictable and may benefit shareholders or new creditors at theexpense of existing debt holders. Credit risk is likely to increaseduring periods of economic uncertainty or downturns. If a debtsecurity held by a Fund ceases to be rated or is downgraded below apermitted threshold, the Fund may, but is not required to, sell thesecurity.

Derivatives Risk. Derivatives are financial instruments,including futures contracts, forwards contracts and swapagreements, the values of which are based on the value of one ormore underlying assets, such as stocks, bonds, currencies, interestrates, and market indexes. Derivatives involve risks different from,and possibly greater than, the risks associated with investingdirectly in the underlying assets and other more traditionalinvestments. The market value of derivatives may be more volatilethan that of other instruments and can be affected by interest ratechanges or other market developments. The use of derivatives mayaccelerate the velocity of possible losses. Each type of derivativeinstrument may have its own special risks, including the risk ofmispricing or improper valuation and the possibility that aderivative may not correlate perfectly or as expected with itsunderlying asset, rate, or index. Derivatives create leverage becausethe upfront payment required to enter into a derivative is oftenmuch smaller than the potential for loss (which may in theory beunlimited). A derivative may be subject to liquidity risk, especiallyduring times of financial market distress; certain types ofderivatives may be terminated or modified only with the consentof their counterparties. Derivatives may require a Fund to postcollateral to secure outstanding exposure, which may cause theFund to forego other investment opportunities. Derivatives aresubject to Counterparty Risk, as described above. The use ofderivatives may cause a Fund’s investment returns to be impactedby the performance of securities the Fund does not own, resultingin the Fund’s total investment exposure exceeding the value of itsportfolio.

Derivatives are specialized instruments that may requireinvestment techniques and risk analyses different from thoseassociated with stocks and bonds. Although the use of derivativesis intended to enhance a Fund’s performance, it may insteadreduce returns and increase volatility, or have a different effectthan Dodge & Cox anticipated, especially in unusual or extrememarket conditions. Suitable derivatives transactions may not beavailable in all circumstances and there can be no assurance that aparticular derivative position will be available or used by


Dodge & Cox or that, if used, such strategies will be successful. AFund may be required to segregate certain of its assets or buy or sella security at a disadvantageous time or price because regulationsrequire Funds to maintain offsetting positions or asset coverage inconnection with certain derivatives transactions. Use ofderivatives may increase the amount and change the timing oftaxes payable by shareholders.

When a derivative is used for hedging purposes, gainsgenerated by the derivative will generally be substantially offset bylosses on the hedged investment and vice versa. Hedging canreduce or eliminate gains.

The U.S. government and other foreign governments are inthe process of adopting and implementing regulations governingderivatives markets, including clearing, execution, margin,reporting, and registration requirements. The ultimate impact ofthe regulations remains unclear, and additional future regulation ofderivatives may make derivatives more costly, may limit theavailability of derivatives, or may otherwise adversely affect thevalue or performance of derivatives.

Emerging Markets Risk. Non-U.S. Investment Risk(described below) may be particularly high to the extent a Fundinvests in emerging market securities. Emerging market securitiesmay present issuer, market, currency, liquidity, legal, political, andother risks different from, and potentially greater than, the risks ofinvesting in securities and instruments tied to developed non-U.S.issuers. Emerging market securities may also be more volatile, lessliquid, and more difficult to value than securities economically tiedto developed non-U.S. issuers.

Equity Risk. Equity securities represent an ownership interestin an issuer rather than a right to receive a specified futurepayment. This makes equity securities more sensitive than debtsecurities to changes in an issuer’s earnings and overall financialconditions; as a result, equity securities are generally more volatilethan debt securities. Equity securities may lose value as a result ofchanges relating to the issuers of those securities, such asmanagement performance, financial leverage, or changes in theactual or anticipated earnings of a company, or as a result of actualor perceived market conditions that are not specific to an issuer.Even when the securities markets are generally performingstrongly, there can be no assurance that equity securities held by aFund will increase in value. Because the rights of all of a company’screditors are senior to those of equity securities, holders of equitiesare least likely to receive any value if an issuer files for bankruptcy.

Hybrid Securities Risk. Hybrid securities are typicallysubordinated to an issuer’s senior debt instruments; therefore, theyare subject to greater credit risk than those senior debtinstruments. Many hybrid securities are subject to provisionspermitting their issuers to skip or defer distributions underspecified circumstances. Hybrid securities may have limited or novoting rights and may be substantially less liquid than many othersecurities. Certain types of hybrid securities, such as non-cumulative perpetual preferred stock, are issued predominantly bycompanies in the financial services industry and thus may presentincreased risk during times of financial upheaval, which may affectfinancial services companies more than other types of issuers.

Interest Rate Risk. Debt securities that pay interest based ona fixed rate are subject to the risk that they will decline in value ifinterest rates rise. Interest rate changes may occur suddenly andunexpectedly and a Fund may lose money as a result of suchmovements. The longer the remaining maturity of a debt security,the more its price is likely to be affected by changes in interestrates. A Fund may choose not to or be unable to hedge itself fullyagainst changes in interest rates. If a Fund uses derivatives to hedgeagainst changes in interest rates, those hedges may not work asintended and may decrease in value if interest rates movedifferently than anticipated. A wide variety of factors can causeinterest rates to rise, such as central bank monetary policies,inflation rates, or general economic conditions. The value of non-fixed rate instruments may also decline when interest rates change.Interest rates are currently at or near historic lows in manycountries, including the United States, which may createheightened risk for a Fund investing in fixed income securities.

Liquidity Risk. Liquidity risk is the risk that a Fund may notbe able to buy or sell an investment at an advantageous time orprice, which could force a Fund to hold a security that is decliningin value or forego other investment opportunities. An illiquidinstrument is harder to value because there may be little or nomarket data available based on purchases or sales of theinstrument. The liquidity of an issuer’s securities may decrease if itscredit rating falls, it experiences sudden unexpected cash outflows,or some other event causes counterparties to avoid trading with orlending to the institution. Liquidity risk is greater for below-investment grade securities and restricted securities, especially indifficult market conditions. Over the past three decades, bondmarkets have grown more quickly than dealer capacity to engagein fixed income trading. In addition, recent regulatory changesapplicable to financial intermediaries that make markets in debtsecurities have restricted or made it less desirable for thosefinancial intermediaries to hold large inventories of less liquid debtsecurities. Because market makers provide stability to a marketthrough their intermediary services, a reduction in dealerinventory may lead to decreased liquidity and increased volatilityin the fixed income markets. Liquidity risk may intensify duringperiods of economic uncertainty. Debt securities with longerdurations may face heightened liquidity risk.

Unusually high redemption requests or other unusual marketconditions may make it difficult for a Fund to honor redemptionrequests within the permitted period. Meeting such requests couldrequire a Fund to sell securities at reduced prices or underunfavorable conditions. Other market participants may beattempting to liquidate debt holdings at the same time as a Fund,which could increase supply in the market and contribute toliquidity risk and downward pricing pressure.

Manager Risk. Dodge & Cox’s opinion about the intrinsicworth or creditworthiness of a company or security may beincorrect, Dodge & Cox may not make timely purchases or sales ofsecurities for a Fund, a Fund’s investment objective may not beachieved, or the market may continue to undervalue a Fund’ssecurities. Dodge & Cox applies investment ideas, including targetallocations and securities position limits, to all eligible client


portfolios within a particular strategy, including funds and separateaccount clients. This means Dodge & Cox may seek very largeamounts of particular securities. As a result, certain investmentopportunities that might be available to a smaller fund may not beavailable to the Funds. A Fund may not be able to take significantpositions in limited investment opportunities or add significantlyto existing positions. In addition, a Fund may not be able toquickly dispose of certain securities holdings.

Market Risk. The market price of a security or otherinvestment may increase or decrease, sometimes suddenly andunpredictably. Investments may decline in value because of factorsaffecting markets generally, such as real or perceived challenges tothe economy, national or international political events, naturaldisasters, changes in interest or currency rates, adverse changes tocredit markets, or general adverse investment sentiment. The priceof investments may reflect factors affecting one or more industries,such as the price of specific commodities or consumer trends, orfactors affecting particular issuers. During a general downturn inthe markets, multiple asset classes may decline in valuesimultaneously. Market disruptions may prevent a Fund fromimplementing investment decisions in a timely manner.Fluctuations in the value of the Fund’s investments will cause thatFund’s share price to fluctuate. An investment in a Fund,therefore, may be more suitable for long-term investors who canbear the risk of short- and long-term fluctuations in a Fund’s shareprice.

Mortgage and Asset-Backed Securities Risk. Mortgage- andother asset-backed securities are subject to various risks, includingprepayment risk, extension risk, interest rate risk, and credit risk.Prepayment risk is the risk that principal will be repaid earlier thanexpected, which means the security will pay less interest over itslife. A Fund may have to reinvest early repayments of principal insecurities that bear a lower rate of interest or more credit risk.Prepayments are more likely at times when interest rates decline.Extension risk is the risk that principal will be repaid later thanexpected, which delays the return of principal to a Fund and mayprevent a Fund from investing in securities that bear a higher rateof interest or less credit risk. Delayed repayment of principal mayincrease the duration and volatility of a security. Extension risk ismore likely at times when interest rates rise. Mortgage- and otherasset-backed securities can be highly sensitive to rising interestrates, such that even small movements can cause a Fund to losevalue. Mortgage- and other asset-backed securities are subject tocredit risk – the risk that a borrower may not make payments ofinterest or principal when scheduled. Credit risk is greater formortgage- and other asset-backed securities that are not directly orindirectly guaranteed by a U.S. government-sponsored enterprise(GSE) (such as Fannie Mae, Freddie Mac, the Federal Home LoanBanks, and the Federal Farm Credit Banks). However, GSEs arenot guaranteed by the U.S. Treasury and in the event that a GSEcannot meet its obligations, there can be no assurance that theU.S. government will provide support.

Non-Diversification Risk. A non-diversified fund (as definedby the 1940 Act) has the ability to invest a larger percentage of itsassets in securities of a smaller number of issuers than a diversifiedfund. If a non-diversified fund chooses to concentrate itsinvestments, the performance of a single issuer could affectperformance more than if the Fund were invested in a largernumber of issuers.

Non-U.S. Currency Risk. Non-U.S. currencies may declinerelative to the U.S. dollar and affect a Fund’s investments in non-U.S. currencies, in securities that are denominated in non-U.S.currencies, in securities of issuers that are exposed to non-U.S.currencies, or in derivatives that provide exposure to non-U.S.currencies. When a given currency depreciates against the U.S.dollar, the value of securities denominated in that currencytypically declines. A U.S. dollar denominated depositary receipt isexposed to currency risk if the security underlying it isdenominated in a non-U.S. currency. Currency depreciation mayaffect the value of U.S. securities if their issuers have exposure tonon-U.S. currencies. Dodge & Cox may not be able to accuratelyestimate an issuer’s non-U.S. currency exposure. Dodge & Coxmay not hedge or may not be successful in hedging a Fund’scurrency exposure. A Fund bears transaction charges for currencyexchange and currency hedging activities.

Non-U.S. Investment Risk. Non-U.S. securities involvesome special risks such as exposure to potentially adverse foreignpolitical and economic developments; market instability;nationalization and exchange controls; potentially lower liquidityand higher volatility; possible problems arising from accounting,disclosure, settlement, and regulatory practices that differ fromU.S. standards; foreign taxes that could reduce returns; highertransaction costs and foreign brokerage and custodian fees;inability to vote proxies, exercise shareholder or bondholder rights,pursue legal remedies, and obtain judgments with respect to foreigninvestments in foreign courts; possible insolvency of a sub-custodian or securities depository; and fluctuations in foreignexchange rates that decrease the investment’s value (althoughfavorable changes can increase its value). Non-U.S. stock marketsmay decline due to conditions unique to an individual country orwithin a region, including unfavorable economic conditionsrelative to the United States or political and social instability orunrest. There may be increased risk of delayed settlement ofportfolio transactions or loss of certificates of portfolio securities.Governments in certain foreign countries participate to asignificant degree, through ownership or regulation, in theirrespective economies. Action by such a government could have asignificant effect on the market price of securities issued inits country. Certain of these risks may also apply to securities ofU.S. issuers with significant non-U.S. operations.

Regulatory Risk. New laws and regulations promulgated bygovernments and regulatory authorities may affect the value ofsecurities issued by specific companies, in specific industries orsectors or in all securities issued in the affected country. In times ofpolitical or economic stress or market turmoil, governments andregulators may intervene directly in markets and take actions that


may adversely affect certain industries, securities, or specificcompanies. Government and/or regulatory intervention mayreduce the value of debt and equity securities issued by affectedcompanies and may also severely limit a Fund’s ability to tradethose securities.

Sovereign and Government-Related Debt Risk. Aninvestment in sovereign or other government-related debt involvesrisk, including special risks not present in other types of debtobligations. The issuer of the sovereign debt or the governmentalauthorities that control the repayment of the debt may be unableor unwilling to repay principal or interest when due. This mayresult from political or social factors, the general economicenvironment of a country, or levels of foreign debt or foreigncurrency exchange rates. Holders of sovereign or othergovernment-related debt may be requested to participate in therescheduling of such debt and to extend further loans togovernmental or government-related entities. To the extent aFund invests in sovereign or other government-related debt, thatFund may be exposed to the direct or indirect consequences ofpolitical, social, and economic changes in various countries, aswell as to changes in local tax, insolvency, or other regulatoryregimes. A Fund may have limited legal recourse in the event of a

default with respect to certain sovereign debt obligations. Forexample, bankruptcy, moratorium, and other similar lawsapplicable to issuers of sovereign debt may be substantiallydifferent from those applicable to corporate debt issuers.

U.S. Municipal Bond Risk. Like other bonds, U.S. municipalbonds are subject to credit risk, interest rate risk, liquidity risk, andcall risk. However, the obligations of some municipal issuers maynot be enforceable through the exercise of traditional creditors’rights. The reorganization under federal bankruptcy laws of amunicipal bond issuer may result in the bonds being cancelledwithout payment. Lawmakers may seek to extend the time forpayment of principal or interest, or both, or to impose otherconstraints upon enforcement of such obligations. In addition, asignificant restructuring of U.S. federal income tax rates or evenserious discussion on the topic in Congress could cause municipalbond prices to fall. The demand for municipal bonds is stronglyinfluenced by the value of tax-exempt income to investors. Lowerincome tax rates could reduce the advantage of owning municipalbonds. Similarly, changes to state or federal regulation tied to aspecific sector could impact the revenue stream for a given subsetof the market.


H O W T O P U R C H A S E S H A R E S

If the Fund’s transfer agent, Boston Financial Data Services, Inc. (Boston Financial Data Services), or an authorized agent or sub-agent,receives your request in good order before the close of trading on the New York Stock Exchange (NYSE) (generally 4 p.m. Eastern time(ET)), your transactions will be priced at that day’s net asset value per share (NAV). If your request is received after 4 p.m., it will be pricedat the next business day’s NAV. The Funds are offered on a no-load basis. You do not pay sales charges or 12b-1 distribution fees.

T O O P E N A N D M A I N T A I N

A N A C C O U N T T O A D D T O A N A C C O U N T

Minimum Investment*$2,500 (regular account)$1,000 (IRA)

Minimum Investment*$100

BY INTERNET

dodgeandcox.com

Current shareholders can visit the Funds’website and log in to “Account Access” to openadditional accounts or to exchange shares froman existing Dodge & Cox Fund account to anew account with the same registration. Newshareholders should visit “Invest with Us” toopen an account.

Current shareholders can visit the Funds’website and log in to “Account Access” to makesubsequent investments directly from your pre-established bank account or exchange fromanother Dodge & Cox Fund account with thesame registration.

BY MAIL

Regular Mail:Dodge & Cox Fundsc/o Boston Financial Data ServicesP.O. Box 8422Boston, MA 02266-8422

Express, Certified orRegistered Mail:Dodge & Cox Fundsc/o Boston Financial Data Services30 Dan RoadCanton, MA 02021-2809

Complete and sign the Account Application orIRA Application with a check for investment.Call 800-621-3979 or visit the Funds’ websiteat dodgeandcox.com to obtain the appropriateforms.

Mail your check with an Invest-By-Mail formdetached from your quarterly statement.

Make your check payable to Dodge & Cox Funds. All checks must be made in U.S. dollars anddrawn on U.S. banks.

Important note: The Funds will not accept third party checks (checks not made payable to Dodge & CoxFunds), traveler’s checks, starter checks, or money orders.

Important note: If you buy Fund shares through a registered broker/dealer, financial institution, or investment adviser, the broker/dealer, financial institution, or adviser may charge you a service fee.* The Funds reserve the right to waive minimum investment amounts for certain financial intermediaries that use the Funds as part of an asset allocation program or

for certain retirement plans.


H O W T O P U R C H A S E S H A R E S ( c o n t i n u e d )

Important note: Only bank accounts held at domestic financial institutions that are Automated Clearing House (ACH) members maybe used for telephone or internet transactions. This option will become effective approximately 15 business days after the AccountApplication or Account Options form is received by Boston Financial Data Services. The price paid for shares of a Fund will be thenext determined NAV after Boston Financial Data Services receives your investment instructions in good order. Your order may becanceled if payment is not received by the third business day after your order is placed.

T O O P E N A N D M A I N T A I N

A N A C C O U N T T O A D D T O A N A C C O U N T

BY TELEPHONE800-621-3979

Current shareholders may call Client Servicesto open an additional account from a pre-established bank account or by exchangingshares from an existing Dodge & Cox Fundaccount into a new account with the sameregistration.

New shareholders may not open an account bytelephone at this time.

Current shareholders may call Client Servicesto make subsequent investments directly froma pre-established bank account or to exchangefrom another Dodge & Cox Fund accountwith the same registration.

Client ServicesMonday–Friday8 a.m.–8 p.m. ET

Automated System7 days a week24 hours a day

Current shareholders may call the automatedsystem to open an additional account from apre-established bank account or by exchangingshares from an existing Dodge & Cox Fundaccount to a new account with the sameregistration.

New shareholders may not open an account bythe automated system at this time.

Current shareholders may call the automatedsystem to make subsequent investments directlyfrom a pre-established bank account or toexchange shares from another Dodge & CoxFund account with the same registration.

BY WIRE

Wire to:State Street Bankand Trust CompanyBoston, MAABA 0110 0002 8Deposit DDA 9905-351-4FFC Dodge & Cox(Fund Name) FundFund # / Account #Account Registration

Prior to making an initial investment by wire, acompleted Account Application or IRAApplication must have been received by theFund. Once an account number has beenassigned, call 800-621-3979 to notify the Fundof your incoming wire transaction.

Call Client Services at 800-621-3979 duringbusiness hours to notify the Funds of yourincoming wire transaction.

AUTOMATICALLY The Funds offer ways to invest automatically. Call Client Services at 800-621-3979 or visit theFunds’ website at dodgeandcox.com and request or download the Account Options Form or IRAOptions Form to establish this service. See Automatic Investment Plan.

Telephone conversations may be recorded or monitored for verification, recordkeeping, and quality-assurance purposes.

Certain institutional investors may be eligible to establish pre-authorized fax transaction privileges.


Important Information About Purchases To help the governmentprevent the funding of terrorism and money laundering activities,federal law requires all financial institutions, including the Funds,to obtain, verify, and record information that identifies eachperson who opens an account, and to determine whether suchperson’s name appears on government lists of known or suspectedterrorists and terrorist organizations. For your account to be ingood order, the Funds must obtain the following information:▪ Name;▪ Date of birth (for individuals);▪ Physical residential address (post office boxes are still permitted

for mailing); and▪ Social Security Number, Taxpayer Identification Number, or

other identifying number.Following receipt of your information, the Funds are required

to verify your identity. You may be asked to provide certain otherdocumentation (such as a copy of a driver’s license or a passport)in order to verify your identity. Additional information may berequired to open accounts for corporations and other non-natural persons.

The USA PATRIOT Act prohibits the Funds and otherfinancial institutions from opening accounts unless theminimum identifying information listed above is received andthe Funds can verify your identity. If the Funds are unable toverify your identity, the Funds are required to not open youraccount, close your account, or take other steps the Fundsdeem reasonable.

All purchases are subject to acceptance by a Fund, and theprice of the shares will be the NAV which is next computed afterreceipt by Boston Financial Data Services, or other authorizedagent or sub-agent, of the purchase in proper form (see Pricing ofShares). If your payment is not received or you pay with a check orACH transfer that does not clear, your purchase will be canceled.You will be responsible for any losses or expenses (including a $20fee) incurred by a Fund or Boston Financial Data Services, and aFund can redeem shares you own in this or another identicallyregistered Dodge & Cox Fund account as reimbursement. TheFunds and their agents have the right to reject or cancel anypurchase, exchange, or redemption due to nonpayment. Allpurchases will be invested in full and fractional shares, and youwill receive a confirmation statement.

The Funds do not offer their shares for sale outside of theUnited States.

If you fail to furnish a Fund with your correct and certifiedSocial Security or Taxpayer Identification Number, the Fund maybe required to withhold federal income tax (backup withholding)from dividends, capital gain distributions, and redemptions.

The Funds and their agents reserve the right to accept initialpurchases by telephone; to cancel or rescind any purchase orexchange (for example, if an account has been restricted due toexcessive trading or fraud); to freeze any account and temporarilysuspend services on the account when notice has been received of

a dispute between the registered or beneficial account owners orthere is reason to believe a fraudulent transaction may occur; tootherwise modify the conditions of purchase and any services atany time; or to act on instructions believed to be genuine.

Information Regarding Purchases of the Dodge & CoxInternational Stock Fund. The Dodge & Cox International StockFund closed to new investors on January 16, 2015 (the “CloseDate”), with certain limited exceptions. In addition, you may notexchange shares of other Dodge & Cox Funds for shares of theDodge & Cox International Stock Fund unless you are an existingshareholder of the International Stock Fund.

Purchases of shares of the Dodge & Cox InternationalStock Fund must qualify under one of the following exceptions:

Existing Shareholders — An existing shareholder of theFund (either directly or through an intermediary) may:

(i) add to the shareholder’s account through the purchaseof additional Fund shares, either with cash or throughthe reinvestment of dividends and cash distributions;

(ii) open a new UGMA/UTMA account for which theshareholder is the custodian; or

(iii) open a new account that is registered in theshareholder’s name or has the same taxpayeridentification or social security number assigned to it,including a new account opened in connection with adistribution or roll-over from an individual retirementaccount, 401(k) plan or other defined contributionretirement plan that is invested in the Fund. Thisexception applies only to individuals or institutionsopening accounts for their own benefit and does notapply to institutions opening accounts on behalf oftheir clients. Institutions that maintain omnibusaccount arrangements with the Fund are not allowedto purchase shares of the Fund in their omnibusaccounts for clients who do not currently own sharesof the Fund unless the client is eligible to open anaccount under one of the other criteria listed herein.

Retirement Plans — A defined contribution retirement plan(for example, 401(k) plans, profit sharing plans and money purchaseplans), 403(b) plan or 457 plan that offers the Fund may open newparticipant accounts within the plan. Participants in a plan may notopen a new account outside of the plan under this exception.

Gifts — An individual may receive shares of the Fund as agift from a family member who is an existing shareholder ofthe Fund.

Charities — A charitable foundation or trust may receiveshares of the Fund from an existing shareholder of the Fund.

Financial Intermediaries Using a Model Portfolio — Aregistered investment adviser, broker-dealer, insurance company,or bank and trust company that held the Fund in a model portfolioprior to the Close Date may open new accounts within that modelfor new and existing clients. Approved or recommended lists arenot considered model portfolios.


Institutions that have Selected the Fund — Aninstitutional investor that has notified Dodge & Cox in writingthat it has selected the Fund for investment by the Close Datemay invest in the Fund within one year of the Close Date.

Certain Dodge & Cox Affiliates — Current trustees orofficers of Dodge & Cox Funds, employees of Dodge & Cox, or amember of the immediate family of any of these persons mayinvest in the Fund.

Once an account is closed, additional investments will notbe accepted unless you meet one of the specified criteria above.Management reserves the right to: (i) make additional exceptionsthat, in its judgment, do not adversely affect its ability to manage

the Fund; (ii) reject any investment or refuse any exception,including those detailed above, that it believes will adverselyaffect its ability to manage the Fund; and (iii) close or re-openthe Fund to new or existing shareholders at any time. Aninvestment is subject to management’s determination of youreligibility to buy shares of the Fund and you may be required toprovide additional documentation or otherwise demonstrateeligibility before an investment is accepted.

The Dodge & Cox International Stock Fund’s closing doesnot restrict you from redeeming shares of the Fund. TheDodge & Cox Stock, Global Stock, Balanced, Income andGlobal Bond Funds remain open to all investors.

H O W T O R E D E E M O R E X C H A N G E S H A R E S

You may withdraw any part of your account by selling shares. The sale price of your shares will be the Fund’s next-determined NAV afterBoston Financial Data Services or an authorized agent or sub-agent receives all required documents in good order.

Good order means that the request includes:▪ Fund name and account number;▪ Amount of the transaction in dollars or shares; (if redemption is requested by internet or mail, the amount of the transaction may be

stated in percentage terms);▪ Signatures of all owners exactly as registered on the account (for written requests);▪ Medallion Signature Guarantee, if required (see Medallion Signature Guarantees);▪ Any certificates you are holding for the account; and▪ Any supporting legal documentation that may be required.▪ Note: for corporate/institutional accounts only, the required signature(s) must be either (1) Medallion-guaranteed and clearly indicate the

capacity of the signer to act for the corporation or institution or (2) that of an authorized signatory named on a certified corporateresolution dated within the last six months (or a certified corporate resolution and letter of indemnity) that accompanies the request or ison file with Boston Financial Data Services.

Sale or exchange requests received after the close of trading on the NYSE (generally 4 p.m. ET) are processed at the next business day’sNAV. No interest will accrue on amounts represented by uncashed redemption checks.

The Funds reserve the right to close any account in which the balance falls below the minimum initial investment.

A C C O U N T T Y P E

BY INTERNET

dodgeandcox.com

All Accounts (Except IRAs, retirement plans, corporate, and certain institutionalaccounts)Visit the Funds’ website at dodgeandcox.com and log in to “Account Access” to place asell order.

All Accounts including IRAs (except retirement plans, corporate, and certaininstitutional accounts)You may exchange shares from a Fund to open an account in another Fund or to add toan existing account with an identical registration.


BY MAIL

Regular Mail:Dodge & Cox Fundsc/o Boston Financial Data ServicesP.O. Box 8422Boston, MA 02266-8422

Express, Certified or Registered Mail:Dodge & Cox Fundsc/o Boston Financial Data Services30 Dan RoadCanton, MA 02021-2809

All AccountsVisit the Funds’ website at dodgeandcox.com and download, complete, and mail in theRedemption Request Form for a taxable account or an IRA Distribution Request Form foran IRA to sell shares. These forms can also be obtained by calling Client Services at800-621-3979.

Current shareholders may exchange shares into a new account with the same registrationby providing written instructions. To exchange shares into an account with a differentregistration (including a different name, address, or taxpayer identification number, youmust provide Boston Financial Data Services with written instructions that include theMedallion guaranteed signature of all current account owners. See Medallion SignatureGuarantees and Change in Account Registration and Transfer of Shares.

BY TELEPHONE800-621-3979

Client ServicesMonday–Friday8 a.m.–8 p.m. ET

Automated System7 days a week24 hours a day

All AccountsYou may call Client Services during business hours to sell or exchange shares. You canexchange shares from a Fund to open an account in another Fund or to add to an existingaccount with an identical registration.

All Accounts (except IRAs, retirement plans, corporate, and certain institutionalaccounts)You may call the automated system at any time to place a sell order.

All Accounts Including IRAs (except certain retirement plans, corporate, and certaininstitutional accounts)You may exchange shares from a Fund to open an account in another Fund or to add toan existing account with identical registration.

Telephone conversations may be recorded or monitored for verification, recordkeeping, and quality-assurance purposes.

AUTOMATICALLY The Funds offer ways to sell shares automatically. Call Client Services at 800-621-3979or visit the Funds’ website at dodgeandcox.com and request or download the AccountOptions Form or IRA Distribution Request Form to establish this service. SeeSystematic Withdrawal Plan.

REDEMPTION PAYMENTS MAY BE MADE BY CHECK,

WIRE, OR ACH

By Check Checks will be made payable to you and will be sent toyour address of record. If the proceeds of the redemption arerequested to be sent to other than the address of record or if theaddress of record has been changed within 30 days of theredemption request, the request must be in writing with yoursignature(s) Medallion guaranteed.

By Wire The Fund will wire redemption proceeds only tothe bank account designated on the Account Application or inwritten instructions — with Medallion signature guarantee —received with the redemption order.

By ACH Redemption proceeds can be sent to your bankaccount by ACH transfer. You can elect this option bycompleting the appropriate section of the Account Application.There is a $100 minimum per ACH transfer.

Medallion Signature Guarantees You will need to haveyour signature Medallion guaranteed in certain situations,such as:▪ Written requests to wire redemption proceeds (if not

previously authorized on the Account Application);▪ Sending redemption proceeds to any person, address, or bank

account not on record; and▪ Transferring redemption proceeds to a Dodge & Cox Fund

account with a different registration (name/ownership)from yours.

A Medallion Signature Guarantee may be obtained from adomestic bank or trust company, broker, dealer, clearingagency, savings association, or other financial institutionwhich participates in a Medallion program recognized by theSecurities Transfer Association. Signature guarantees fromfinancial institutions which do not participate in a Medallionprogram will not be accepted. A notary public cannot provideMedallion Signature Guarantees.


Redemptions-in-kind The Funds reserve the right, ifconditions exist which make cash payments undesirable, to honorany request for redemption by making payment in whole or in partin readily marketable securities chosen by a Fund and valued asthey are for purposes of computing a Fund’s NAV. If payment ismade in securities, a shareholder may incur transaction expenses inconverting these securities to cash. The Funds have elected,however, to be governed by Rule 18f-1 under the InvestmentCompany Act, as a result of which a Fund is obligated to redeemshares, with respect to any one shareholder of record during any90-day period, solely in cash up to the lesser of $250,000 or 1% ofthe net asset value of the Fund at the beginning of the period.

IRAs Redemption requests for Traditional IRAs must includeinstructions regarding federal income tax withholding. Unless youhave elected otherwise, your redemptions will be subject to incometax withholding. State withholding may also apply.

Important Information About Redemptions Under certaincircumstances, Boston Financial Data Services may requireadditional documents, including stock powers with signaturesMedallion guaranteed, trust instruments, death certificates,appointments as executor, and certificates of corporate authority. Ifcertificates have been issued for any of the shares to be redeemed,such certificates must be delivered to Boston Financial DataServices. For any questions regarding documentation or signaturerequirements for trusts, estates, corporations, etc., please callClient Services (800-621-3979).

The redemption price will be the NAV which is nextcomputed after receipt of a redemption request in good order (seePricing of Shares) by Boston Financial Data Services or otherauthorized agent or sub-agent. The redemption price may be moreor less than your cost, depending upon the market value of aFund’s investments at the time of redemption.

If, subsequent to placing a redemption order, market fluctuationscause the value of your account to fall below the requestedredemption amount, your entire account will be redeemed.

Redemption payments are made as soon as practicable,generally within two business days, but under normalcircumstances no later than the seventh day after the effective datefor redemption, or within such shorter period as may legally berequired. If shares are redeemed within two weeks of purchase, aFund may delay payment of the redemption proceeds until yourpurchase check or ACH purchase has cleared, which may take upto 15 days. There is no such delay when shares being redeemedwere purchased by wiring Federal funds. The Funds may suspendyour redemption right or postpone payment at times when theNYSE is closed, trading on the NYSE is restricted, or under anyemergency or other circumstances as determined by the SEC.

Exchanging Shares An exchange is treated as a redemptionand a purchase; therefore, you may realize a taxable gain or loss.You should read the current prospectus of the Fund into which theexchange is being made.

There is a $1,000 minimum for all exchanges. If a newaccount is being opened by exchange, the minimum investmentrequirements must be met. After the exchange, the account fromwhich the exchange is made must have a remaining balance of at

least $2,500 ($1,000 for an IRA) in order to remain open. TheFunds reserve the right to terminate or materially modify theexchange privilege upon 60 days’ advance notice to shareholders.

Telephone and Internet Transactions By using telephone orinternet purchase, redemption, and/or exchange options, you agreeto hold the Funds, Dodge & Cox, Boston Financial Data Services,and each of their respective directors, trustees, officers, employees,and agents harmless from any losses, expenses, costs, or liability(including attorney fees) which may be incurred in connectionwith the exercise of these privileges. Generally, all shareholders areautomatically eligible to use these options. However, you may electto decline these options. By permitting telephone or internetredemptions for your account, you may be giving up a measure ofsecurity that you might have if you were to redeem your shares inwriting. In addition, interruptions in service may mean that youwill be unable to effect a redemption by telephone or internetwhen desired. For any questions regarding telephone or Internettransactions please call Client Services (800-621-3979). If a Funddoes not employ reasonable procedures to confirm that theinstructions received from any person with appropriate accountinformation are genuine, the Fund may be liable for losses due tounauthorized or fraudulent instructions.

If you are unable to reach a Fund by telephone or via theinternet because of technical difficulties, market conditions, or anatural disaster, you should make purchase, redemption, andexchange requests by regular or express mail. You may experiencedelays in exercising telephone redemption privileges, includingduring periods of abnormal market activity. During periods ofvolatile economic or market conditions, you may want to considertransmitting redemption orders by internet or overnight courier.

If an account has multiple owners, a Fund may rely on theinstructions of any one account owner. You should note thatpurchase and sales orders will not be canceled or modified oncereceived in good order.

T R A N S A C T I O N S T H R O U G H F I N A N C I A LI N T E R M E D I A R I E S

You may purchase or sell Fund shares through a FinancialIntermediary, which may charge you a fee for this service and mayrequire different minimum initial and subsequent investments thanthe Funds. Financial Intermediaries may also impose other chargesor restrictions different from those applicable to shareholders whoinvest in the Funds directly. A Financial Intermediary may be theshareholder of record of your shares. The Funds, Dodge & Cox,Boston Financial Data Services, and each of their respectivedirectors, trustees, officers, employees, and agents are notresponsible for the failure of any Financial Intermediary to carryout its obligations to its customers.

Payments to Financial Intermediaries Dodge & Cox, at itsexpense without additional cost to the Funds or theirshareholders, may provide additional compensation to certainFinancial Intermediaries with respect to the Funds. Thesepayments may be made, at the discretion of Dodge & Cox, to


Financial Intermediaries for shareholder recordkeeping or otheradministrative services provided to eligible defined contributionemployee benefit plans holding the Funds. The level ofpayments made to a qualifying Financial Intermediary in anygiven year will equal approximately 0.10% of the market valueof the Stock, Global Stock, International Stock, and BalancedFund accounts and 0.08% of the market value of Income andGlobal Bond Fund accounts serviced by the FinancialIntermediary. A number of factors will be considered indetermining whether compensation should be paid to a FinancialIntermediary, including the qualifying Financial Intermediary’swillingness to enter into an Administrative Service Agreement (orequivalent), the recordkeeping, reporting, or other services to beprovided, and the quality of the relationship with such Funds.Dodge & Cox makes these payments to help defray the costsincurred by qualifying Financial Intermediaries in connection withefforts to maintain employee benefit plan accounts for participantsin a cost-efficient manner; however, Dodge & Cox does not auditthe Financial Intermediaries to verify the extent or nature ofservices provided. Dodge & Cox will, on a periodic basis,determine the advisability of continuing these payments. Thesepayments may be more or less than the payments received byFinancial Intermediaries with respect to other mutual funds andmay influence your Financial Intermediary to make available aFund over other mutual funds. You should ask your FinancialIntermediary about these differing and divergent interests and howit is compensated for administering your Fund investment.

E X C E S S I V E T R A D I N G L I M I T A T I O N S

The Funds are intended for long-term investment purposes and notfor market timing or excessive short-term trading (excessivetrading). The Funds’ Board of Trustees has approved policies andprocedures designed to detect and deter excessive trading inthe Funds.

Although there is no generally applied standard in themarketplace as to what level of trading activity is excessive, a Fundmay consider that you have violated the excessive trading policy ifit determines:▪ You sell or exchange shares within a short period of time after

the shares were purchased;▪ You enter into a series of transactions that is indicative of an

excessive trading pattern or strategy; or▪ The Fund reasonably believes that you have engaged in such

practices in connection with other mutual funds.Certain transactions are exempt from the excessive

trading policy:▪ Shares purchased through reinvested distributions (dividends

and capital gains);▪ Shares purchased through an automatic investment plan;▪ Shares sold through a systematic withdrawal plan;▪ Scheduled retirement plan contributions;

▪ Required distributions from individual retirement accounts(IRA), pension or other retirement plans, and charitableorganizations or endowments;

▪ IRA transfers of assets, Roth IRA conversions, orIRA recharacterizations; and

▪ Shares purchased through certain “fund of funds” and assetallocation programs.

Excessive trading may present risks to you or to a Fund inwhich you are a shareholder, including:▪ Negative impact on a Fund’s performance;▪ Dilution in the value of a Fund’s shares;▪ Interference with the efficient management of a Fund’s

portfolio, such as the need to maintain undesirably large cashpositions or to buy or sell securities it otherwise would not havebought or sold;

▪ Losses on the sale of investments resulting from the need to sellsecurities at less favorable prices;

▪ Increased taxable gains to a Fund’s remaining shareholdersresulting from the need to sell securities to meet redemptionrequests; and

▪ Increased brokerage and administrative costs.These risks may be greater to the extent a Fund invests in

non-U.S. securities, which are believed to be more susceptible topricing inefficiencies and time zone arbitrage. Time zone arbitragemay occur because of time zone differences between the foreignmarkets on which the Funds’ non-U.S. portfolio securities tradeand the time as of which the Funds’ NAV is calculated. Forexample, traders engaging in time zone arbitrage may seek toexploit changes in value of the Funds’ portfolio securities thatresult from events occurring after foreign market prices areestablished, but before calculation of the Funds’ NAV.Arbitrageurs who are successful may dilute the interests of othershareholders by trading shares at prices that do not fully reflecttheir fair value. The Funds have pricing and valuation proceduresthat are intended to reduce the potential for dilution and otheradverse effects that can result from pricing inefficiencies. Althoughthe Funds’ excessive trading policy and pricing and valuationprocedures are designed to prevent time zone arbitrage, there canbe no assurances that such policies and procedures will becompletely effective. See Pricing of Shares.

Trade Activity Monitoring The Funds monitor selected tradeson a daily basis. Trade activity monitoring may include:▪ Reviewing accounts where a purchase and sale occurs within a

short period of time;▪ Reviewing transaction amount thresholds; and▪ Making comparisons against the Funds’ “known offenders”

database which contains information about investors who haveviolated the excessive trading policy.

If the Funds determine that an investor has violated theexcessive trading policy, the Funds will temporarily or permanentlyrestrict the account from subsequent purchases (includingpurchases by exchange). In determining whether to take suchactions, the Funds seek to act in a manner that is consistent withthe best interests of Fund shareholders.


Whether or not the excessive trading policy has beenviolated, the Funds may determine from the amount, frequency, orpattern of purchases and redemptions that a shareholder is engagedin excessive trading that is or could be detrimental to a Fund andits shareholders and that trading restrictions are warranted. TheFunds may consider the trading history of accounts under commonownership or control for the purpose of enforcing the excessivetrading policy. If a Fund believes that the excessive trading may befor legitimate purposes, the Fund may permit the investor to justifythe activity. Transactions placed through the same financialintermediary on an omnibus basis may be deemed part of a groupfor the purpose of this policy and may be rejected in whole or inpart by a Fund.

The Funds or an authorized agent or sub-agent may reject anypurchase order (including exchange purchases) by any investor orgroup of investors indefinitely, with or without prior notice to theinvestor, for any reason, including, in particular, purchases thatthey believe are attributable to excessive traders or are otherwiseexcessive or potentially disruptive to a Fund. Such purchase ordersmay be revoked or cancelled by a Fund on the next business dayafter receipt of the order.

The implementation of the Funds’ excessive trading policyinvolves judgments that are inherently subjective and involvesome selectivity in their application. The Funds, however, seek tomake judgments that are consistent with the interests of the Funds’shareholders. No matter how the Funds define excessive trading,other purchases and sales of Fund shares may have adverse effectson the management of a Fund’s portfolio and its performance.Additionally, due to the complexity and subjectivity involved inidentifying excessive trading and the volume of Fund shareholdertransactions, there can be no guarantee that the Funds will be ableto identify violations of the excessive trading policy or to reduce oreliminate all detrimental effects of excessive trading.

Financial Intermediaries In general, it is the Funds’expectation that each Financial Intermediary will enforce eitherthe Funds’ or its own excessive trading policy. As a general matter,the Funds do not directly monitor the trading activity of beneficialowners of the Funds’ shares who hold those shares through third-party 401(k) and other group retirement plans and other omnibusarrangements maintained by Financial Intermediaries. Althoughthe Funds have entered into information sharing agreements withFinancial Intermediaries, which give the Funds the ability torequest information regarding the trading activity of beneficialowners and to prohibit further purchases by beneficial owners whoviolate the Funds’ excessive trading policy, the ability of the Fundsto monitor, detect, and curtail excessive trading through FinancialIntermediaries’ accounts may be limited, and there is no guaranteethat the Funds will be able to identify shareholders who may haveviolated the Funds’ excessive trading policy. Depending on theportion of Fund shares held through such Financial Intermediaries,excessive trading through Financial Intermediaries could adverselyaffect Fund shareholders. Fund shareholders who invest throughFinancial Intermediaries should contact the Financial Intermediaryregarding its excessive trading policies, which may impose differentstandards and consequences for excessive trading.

O T H E R T R A N S A C T I O N I N F O R M A T I O N

Change in Account Registration and Transfer of SharesChanges in account registrations, such as changing the name(s) onyour account or transferring shares to another person or legalentity, must be submitted in writing and may require a Medallionsignature guarantee. If, subsequent to making a transfer request,market fluctuations cause the value of your account to fall belowthe requested transfer amount, your entire account will betransferred. Please call Client Services at 800-621-3979 or visit theFunds’ website at dodgeandcox.com and request or download theChange of Registration Form, the Gift of Shares Form, or theInheritance Form to effect this change.

E S C H E A T M E N T O F A B A N D O N E D P R O P E R T Y

The following information provides a general summary of U.S.states’ unclaimed or abandoned property laws. A Fund may berequired to escheat (transfer to the state) your assets if they aredeemed abandoned under a state’s unclaimed or abandonedproperty law.

Abandoned Property State unclaimed or abandoned propertylaws generally apply to both:▪ Unclaimed securities, including shares of the Fund; and▪ Uncashed dividends or other distributions from the Fund.

In the event that uncashed dividends or other distributionsare deemed abandoned, the amounts of such dividends ordistributions will be required to be reported and remitted to theapplicable state. The state is required to hold such amounts untilreclaimed by the owner, but will generally not pay interest on anyamounts that are reclaimed.

In the event that your shares of a Fund are deemedabandoned, the Fund will be required to escheat or deliver theshares to the applicable state. The state is then typically permittedto sell or liquidate the shares at the prevailing market price. In theevent that you seek to reclaim the escheated shares after they havebeen liquidated, you will generally be able to recover only theamount received by the state when it sold the shares, and not anyappreciation that may otherwise have been realized had the sharesnot been liquidated. The escheat of shares to the state may alsoresult in tax penalties to you if the shares were held in a tax-deferred account such as an IRA. You should consult your taxadviser for advice about the particular tax consequences associatedwith the escheatment of your shares.

The rules for determining when a security or securitydistribution is required to be reported and delivered to the statevary considerably by state and may depend on the type of accountin which the security is held. Some states require escheatment ifyou have had no contact with the Fund within a specified timeperiod (generally, three or five years). Other states requireescheatment only if mailings sent to you are returned asundeliverable by the United States Postal Service. Other statesmay have different rules.


Please check your state’s unclaimed or abandoned propertydepartment website for specific information.

Reinvestment of Uncashed Checks If a dividend, capitalgains, or redemption check remains uncashed for at least sixmonths, the Fund reserves the right to reinvest the amount of thecheck into your account at the NAV calculated as of the day ofreinvestment. The Fund may also reinvest all subsequent dividendand capital gain distributions in shares of the Fund. Interest willnot accrue on amounts represented by uncashed checks. Thereinvestment of dividends or other distributions to your accountwill not necessarily prevent such amounts or your shares of theFund from being escheated to the state.

Escheatment Prevention In order to prevent your assets frombeing deemed abandoned and escheated to a state, we recommendthat you maintain contact with the Fund in a manner thatdemonstrates activity under the relevant state’s laws. For example,accessing your account through the Funds’ secure website atdodgeandcox.com on at least an annual basis could prevent youraccount from being deemed abandoned under the laws of some, butnot all, states. In some states, calling into Client Services at800-621-3979 and going through the automated security verificationprocess or speaking to a Client Service representative may satisfy theactivity requirements. Additionally, please notify us of any name andaddress changes immediately and cash dividend and redemptionchecks from your account(s) promptly.

P R I C I N G O F S H A R E S

The share price (net asset value per share or NAV) for a Fund iscalculated as of the close of trading on the NYSE (generally 4 p.m.ET) each day the NYSE is open for business. The NAV iscalculated by dividing Fund net assets (i.e. total assets minus totalliabilities) by the number of shares outstanding. For purposes ofdetermining the NAV, security transactions are normally recordedone business day after the trade date.

If a Fund, or its authorized agent or sub-agent, receives yourrequest in good order by the close of trading on the NYSE(generally 4 p.m. ET), your transactions will be priced at that day’sNAV. If your request is received after the NYSE close, it will bepriced at the next business day’s NAV.

A Fund cannot accept orders that request a particular day orprice for your transaction or any other special conditions. The timeat which transactions and shares are priced and the time untilwhich orders are accepted may be changed in case of an emergencyor if the NYSE closes at a time other than 4 p.m. ET.

Some securities may be listed on foreign exchanges that areopen on days (such as U.S. holidays) when the Funds do notcalculate their NAVs. This could cause the value of a Fund’sportfolio investments to be affected by trading on days when youcannot buy or sell shares.

For purposes of calculating the NAV, portfolio securities andother financial instruments for which market quotations arereadily available are valued at market value. Listed securities aregenerally valued using the official quoted close price or the last sale

on the exchange that is determined to be the primary market forthe security. Debt securities and non-exchange traded derivativesare valued based on prices received from independent pricingservices which utilize both dealer-supplied valuations and pricingmodels. Exchange-traded derivatives are valued at the settlementprice determined by the relevant exchange. Mutual funds arevalued at their respective net asset values.

If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Funds’ Board of Trustees.The Board of Trustees has delegated authority to Dodge & Cox,the Fund’s investment manager, to make fair value determinationsin accordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised ofrepresentatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations arenot readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned toa particular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.

As trading in securities on most foreign exchanges is normallycompleted before the close of the NYSE, the value of non-U.S.securities can change by the time the Fund calculates its NAV. Toaddress these changes, the Fund may utilize adjustment factorsprovided by an independent pricing service to systemically valuenon-U.S. securities at fair value. These adjustment factors arebased on statistical analyses of subsequent movements and changesin U.S. markets and financial instruments trading in U.S. marketsthat represent foreign securities or baskets of securities.

Valuing securities through a fair value determination involvesgreater reliance on judgment than valuation of securities based onreadily available market quotations. In some instances, lack ofinformation and uncertainty as to the significance of informationmay lead to a conclusion that a prior valuation is the bestindication of a security’s value. When fair value pricing isemployed, the prices of securities used by a Fund to calculate itsNAV may differ from quoted or published prices for the samesecurities.


I N C O M E D I V I D E N D S A N D C A P I T A L G A I ND I S T R I B U T I O N S

Income dividends and capital gain distributions are reinvestedin additional Fund shares in your account unless you select anotheroption on your Account Application. The advantage of reinvestingarises from compounding; that is, you receive income dividendsand capital gain distributions on an increasing number of shares.Income dividends and capital gains distributions not reinvested arepaid by check or transmitted to your bank account electronicallyusing the ACH network.

Important tax note: A Fund’s income dividends and capitalgains distributions, whether received in cash or reinvested inadditional shares of the Fund, may be subject to federal and stateincome tax.

Income Dividends Dodge & Cox Stock, Balanced, Income, andGlobal Bond Funds declare and pay net investment income dividends(if any) quarterly in March, June, September, and December.Dodge & Cox Global Stock Fund and International Stock Funddeclare and pay dividends (if any) annually in December.

Capital Gain Distributions A capital gain or loss is thedifference between the purchase and sale price of a security. If aFund has net capital gains for the period January through October,those gains are usually declared and paid in December. If a Fundhas additional net capital gains for the period November throughDecember, those additional gains are usually declared and paid inMarch (for the Stock, Balanced, Income, and Global Bond Funds)or December (for the International Stock and Global Stock Funds)of the following year.

Buying a Distribution: Unless you are investing through atax-deferred retirement account (such as an IRA or 401(k)plan), it may not be to your advantage to buy shares of a Fundshortly before the Fund makes a distribution. This is known as“buying a distribution.” Buying a distribution can cost youmoney in taxes as you will receive, in the form of a taxabledistribution, a portion of the money you just invested. To avoidbuying a distribution, check the Fund’s distribution schedule(which can be found at dodgeandcox.com or by calling800-621-3979) before you invest.

In February, you will be sent Form 1099-DIV indicating thetax status of any dividend and capital gain distributions made toyou during the previous year. This information will also bereported to the IRS.

F E D E R A L I N C O M E T A X E S

The following information is meant as a general summary for U.S.taxpayers. Please see the SAI for additional information. Youshould consult your own tax adviser for advice about the particularfederal, state, and local or foreign tax consequences to you ofinvesting in a Fund.

Taxes and Income Dividends and Capital GainsDistributions Each Fund will distribute substantially all of itsincome and capital gains to its shareholders every year.

In general, if your Fund shares are held in a taxable account,you will be taxed on dividends you receive from a Fund, regardlessof whether they are paid to you in cash or reinvested in additionalFund shares. If a Fund declares a dividend in October, November,or December but pays it in January, you may be taxed on thedividend as if you received it in the previous year.

Under current law, a portion of the income dividends paid toyou by a Fund may be qualified dividends subject to a maximum taxrate of either 15% or 20%, depending on whether your incomeexceeds certain threshold amounts. In general, income dividendsfrom domestic corporations and qualified foreign corporations will bepermitted this favored federal tax treatment. Income dividends frominterest earned by a Fund on debt securities and dividends receivedfrom unqualified foreign corporations will continue to be taxed at thehigher ordinary income tax rates. Distributions of qualified dividendswill be eligible for these reduced rates of taxation only if you ownyour shares for at least 61 days during the 121-day period beginning60 days before the ex-dividend date of any dividend.

Fund distributions of short-term capital gains are taxable toyou as ordinary income. Fund distributions of long-term capitalgains are taxable as long-term capital gains no matter how longyou have owned your shares. Long-term capital gain distributionsare currently generally taxed at a maximum rate of either 15% or20%, depending on whether your income exceeds certainthreshold amounts.

An additional 3.8% Medicare tax is imposed on certain netinvestment income (including ordinary dividends and capital gaindistributions received from a Fund and net gains from redemptionsor other taxable dispositions of Fund shares) of U.S. individuals,estates, and trusts to the extent that such person’s “modifiedadjusted gross income” (in the case of an individual) or “adjustedgross income” (in the case of an estate or trust) exceeds certainthreshold amounts.

If you hold your Fund shares in a tax-deferred retirementaccount, such as an IRA, you generally will not have to pay tax ondividends until they are distributed from the account. Theseaccounts are subject to complex tax rules, and you should consultyour tax adviser about investment through a tax-deferred account.

Each Fund you invest in will send you a tax report each year.The report will tell you which dividends must be treated as taxableordinary income, qualified dividends, or long-term capital gains.

Part of Dodge & Cox Stock, Global Stock, InternationalStock, and Balanced Funds’ income dividends may be eligible forthe 70% deduction for dividends received by corporations. Foreigntaxes paid by Dodge & Cox Global Stock Fund and InternationalStock Fund, on its investments may, subject to certain limitations,be passed through to you as a foreign tax credit, assuming the Fundsatisfies certain requirements. State taxation of distributions toshareholders varies from state to state.

As with all mutual funds, a Fund may be required to withholdU.S. federal income (currently at a rate of 28%) on all taxabledistributions payable to you if you fail to provide a Fund with yourcorrect taxpayer identification number or to make requiredcertifications, or if you or a Fund have been notified by the IRSthat you are subject to backup withholding. Backup withholding is


not an additional tax, but is a method by which the IRS ensuresthat it will collect taxes otherwise due. Any amounts withheld maybe credited against your U.S. federal income tax liability.

Cost Basis and Taxes on Sales (Redemptions) andExchanges If your shares are held in a taxable account, you willgenerally have a taxable capital gain or loss if you sell your Fundshares or exchange them for shares of a different Fund. Theamount of the gain or loss and the rate of tax will depend primarilyupon how much you paid for the shares (your “cost basis”), howmuch you sold them for, and how long you held them.

Your total cost basis is generally the original amount paid forFund shares, plus the value of reinvested dividends and capitalgains distributions. If you acquire Fund shares on or afterJanuary 1, 2012, generally referred to as “covered shares,” andsubsequently sell or exchange those shares, the Fund is required toreport cost basis information to you and to the IRS. Unless youspecify an alternate cost basis method, the Funds will default to theaverage cost method when calculating cost basis. If you hold Fundshares in an account held by a broker/dealer, financial institution,or investment adviser, that firm may select a different defaultmethod. In those cases, please contact the firm holding youraccount to obtain information with respect to the cost basiscalculation methods available for your account.

Additional information about cost basis reporting is availableat dodgeandcox.com/cost basis.

F U N D O R G A N I Z A T I O N A N D M A N A G E M E N T

Fund Organization Dodge & Cox Funds, a Delaware statutorytrust, is a family of six no-load mutual funds. Dodge & CoxBalanced Fund was established in 1931; Dodge & Cox Stock Fundin 1965; Dodge & Cox Income Fund in 1989; Dodge & CoxInternational Stock Fund in 2001; Dodge & Cox Global StockFund in 2008; and Dodge & Cox Global Bond Fund in 2014.

Investment Manager Dodge & Cox, a California corporation,has served as investment manager to the Funds and theirpredecessors since inception. Dodge & Cox is one of the oldestprofessional investment management firms in the United States,having acted continuously as investment managers since 1930.Dodge & Cox is located at 555 California Street, 40th Floor,San Francisco, California 94104.

Dodge & Cox’s activities are devoted to investment researchand the supervision of investment accounts for individuals andinstitutions. Dodge & Cox Stock Fund, Dodge & Cox Balanced

Fund, and Dodge & Cox Global Bond Fund each payDodge & Cox a management fee which is payable monthly at theannual rate of 0.50% of the average daily net asset value of theFund. Dodge & Cox Global Stock Fund and Dodge & CoxInternational Stock Fund each pay Dodge & Cox a managementfee which is payable monthly at the annual rate of 0.60% of theaverage daily net asset value of the Fund. Dodge & Cox IncomeFund pays Dodge & Cox a management fee which is payablemonthly at the annual rate of 0.50% of the average daily net assetvalue of the Fund up to $100 million and 0.40% of the averagedaily net asset value of the Fund in excess of $100 million. UntilApril 30, 2016, Dodge & Cox has contractually agreed toreimburse the Dodge & Cox Global Bond Fund for all ordinaryexpenses to the extent necessary to maintain the ratio of totaloperating expenses to average net assets at 0.60%. The agreementis renewable annually thereafter and is subject to termination upon30 days’ written notice by either party. This expensereimbursement agreement has been effect since the Global BondFund’s inception, without which returns for the Fund would havebeen lower.

A discussion regarding the basis for the Board of Trusteesapproving the Funds’ Investment Management Agreements isavailable in each Fund’s Annual Report, which covers the12-month period ending December 31 each year.

Wholly-owned Subsidiaries The Dodge & Cox Global StockFund and Dodge & Cox International Stock Fund may invest inthe Dodge & Cox Global Stock Fund Cayman, Ltd. andDodge & Cox International Stock Fund Cayman, Ltd.,respectively, each of which is a wholly-owned subsidiary of therespective Fund organized under the laws of the Cayman Islands(each a “Subsidiary”). The Dodge & Cox Global Bond Fund mayalso establish a similar wholly-owned subsidiary if deemedadvisable by Dodge & Cox. Each Fund may invest in its Subsidiaryto gain exposure to non-U.S. registered securities. Each Subsidiaryhas entered into a separate Investment Management Agreementwith Dodge & Cox for the management and administration of theSubsidiary’s portfolio. Dodge & Cox is not compensated by aSubsidiary for the services it provides to the Subsidiary. Asdescribed above, Dodge & Cox receives a management fee fromeach Fund based on the average daily net assets of the Fund, whichincludes any amounts invested in a Subsidiary. The Dodge & CoxGlobal Stock Fund, Dodge & Cox International Stock Fund, andDodge & Cox Global Bond Fund will each bear the operatingexpenses of the relevant Subsidiary.


I N V E S T M E N T C O M M I T T E E S

INVESTMENT POLICY COMMITTEE

The Dodge & Cox Stock Fund’s investments and the stock portion of the Dodge & Cox Balanced Fund are managed by Dodge & Cox’sInvestment Policy Committee (IPC), and in general no one IPC member is primarily responsible for making investment recommendationsfor the Stock and Balanced Funds. IPC is also responsible for determining the asset allocation of the Dodge & Cox Balanced Fund. IPCconsists of the following nine members:

Committee Member Position(s) with Funds Business Experience During the Past Five YearsYears withDodge & Cox

John A. Gunn Senior Vice President Chairman Emeritus (2011-2013), Chairman (2007-2011), Chief ExecutiveOfficer (2007-2010), and Director (until 2013) of Dodge & Cox; PortfolioManager, and member of IPC, GSIPC (until 2014), and IIPC (until 2015)

43

Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President (until2011), and Director of Dodge & Cox; Chief Investment Officer, PortfolioManager, Investment Analyst, and member of IPC, GSIPC, IIPC, and FIIPC

31

C. Bryan Cameron Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge &Cox; Director of Research, Portfolio Manager, Investment Analyst, and memberof IPC and IIPC

32

Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Director of International Equity (since 2009),Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, andGBIPC (since 2014)

27

David C. Hoeft Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Associate Director of Research (since 2009),Portfolio Manager, Investment Analyst, and member of IPC

22

Gregory R. Serrurier Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge &Cox; Portfolio Manager and member of IPC and IIPC

31

Wendell W. Birkhofer Vice President Vice President of Dodge & Cox; Portfolio Manager and member of IPC 28

Steven C. Voorhis Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IPC and GSIPC

19

Philippe Barret, Jr. Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, InvestmentAnalyst, and member of IPC (since 2013)

11


GLOBAL STOCK INVESTMENT POLICY COMMITTEE

The Dodge & Cox Global Stock Fund’s investments are managed by Dodge & Cox’s Global Stock Investment Policy Committee (GSIPC),and in general no one GSIPC member is primarily responsible for making investment recommendations for the Fund. GSIPC consists of thefollowing seven members:



31


27

Steven C. Voorhis Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IPC and GSIPC

19

Karol Marcin Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of GSIPC

15

Lily S. Beischer Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of GSIPC

14

Roger G. Kuo Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC and GSIPC (since 2010)

17

Raymond J. Mertens Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of GSIPC (since 2014)

12


INTERNATIONAL INVESTMENT POLICY COMMITTEE

The Dodge & Cox International Stock Fund’s investments are managed by Dodge & Cox’s International Investment Policy Committee(IIPC), and in general no one IIPC member is primarily responsible for making investment recommendations for the Fund. IIPC consists ofthe following nine members:


Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President(until 2011), and Director of Dodge & Cox; Chief Investment Officer,Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, andFIIPC

31


27

C. Bryan Cameron Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge& Cox; Director of Research, Portfolio Manager, Investment Analyst, andmember of IPC and IIPC

32

Gregory R. Serrurier Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge& Cox; Portfolio Manager and member of IPC and IIPC

31

Mario C. DiPrisco Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC

17

Roger G. Kuo Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC and GSIPC (since 2010)

17

Keiko Horkan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC

15

Richard T. Callister Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC (since 2012)

13

Englebert T. Bangayan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of IIPC (since February 2015)

13


FIXED INCOME INVESTMENT POLICY COMMITTEE

The Dodge & Cox Income Fund’s investments and the debt portion of the Dodge & Cox Balanced Fund are managed by Dodge & Cox’sFixed Income Investment Policy Committee (FIIPC), and in general no one FIIPC member is primarily responsible for making investmentrecommendations for the Balanced and Income Funds. FIIPC consists of the following eight members:


Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2013), Co-President(2011-2013), Executive Vice President (until 2011), and Director of Dodge &Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC andGBIPC (since 2014)

32


31

Thomas S. Dugan Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Associate Director of Fixed Income (since 2009),Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC(since 2014)

21

Larissa K. Roesch Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of FIIPC

18

James H. Dignan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of FIIPC and GBIPC (since 2014)

16

Anthony J. Brekke Vice President Vice President (since 2008) of Dodge & Cox; Portfolio Manager, InvestmentAnalyst, and member of FIIPC

12

Adam S. Rubinson Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of FIIPC (since 2010) and GBIPC (since 2014)

13

Lucinda I. Johns Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, InvestmentAnalyst, and member of FIIPC (since 2012) and GBIPC (since 2014)

13


GLOBAL BOND INVESTMENT POLICY COMMITTEE

The Dodge & Cox Global Bond Fund’s investments are managed by Dodge & Cox’s Global Bond Investment Policy Committee (GBIPC),and in general no one GBIPC member is primarily responsible for making investment recommendations for the Fund. The GBIPC consistsof the following six members:


Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2013), Co-President(2011-2013), Executive Vice President (until 2011), and Director of Dodge &Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC andGBIPC (since 2014)

1/32

Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Director of International Equity (since 2009),Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, andGIBPC (since 2014)

1/27

Thomas S. Dugan Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director(since 2011) of Dodge & Cox; Associate Director of Fixed Income (since 2009),Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC(since 2014)

1/21

James H. Dignan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of FIIPC and GBIPC (since 2014)

1/16

Adam S. Rubinson Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, andmember of FIIPC (since 2010) and GBIPC (since 2014)

1/13

Lucinda I. Johns Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, InvestmentAnalyst, and member of FIIPC (since 2012) and GBIPC (since 2014)

1/13

The SAI provides additional information about the Dodge & Cox investment committee members’ compensation, other accountsmanaged by the members, and the members’ ownership of securities in the Funds.


I N V E S T M E N T I N F O R M A T I O N A N D S H A R E H O L D E R S E R V I C E S

S T A T E M E N T S A N D R E P O R T S As a shareholder of the Fund you will receive the following statements and reports:

Confirmation Statement Sent each time you buy, sell, or exchange shares; confirms the trade date and the amount of yourtransaction, except purchases through the Automatic Investment Plan and dividend and capital gaindistributions, which will be confirmed only on your account statement.

Account Statement Mailed quarterly; shows the market value of your account at the close of the statement period, as wellas distributions, purchases, sales, and exchanges for the current calendar year. You should contactClient Services immediately regarding any errors or discrepancies on the statement confirming yourtransaction(s). The statement will be deemed correct if we do not hear from you within 90 days.

Fund Financial Reports Mailed in February and August.Tax Statements Generally mailed by mid-February; reports previous year’s dividend distributions, proceeds from the

sale of shares, and distributions from IRAs.

The Funds offer you the following services: (call Client Servicesat 800-621-3979, write, or visit the Funds’ website atdodgeandcox.com for forms and additional information.)

Electronic Delivery of Reports and Prospectus Your Fundreports and the Funds’ prospectus can be delivered to youelectronically, if you prefer. If you are a registered user ofdodgeandcox.com, you can consent to the electronic delivery ofFund reports by logging on and changing your preferences. Youcan revoke your electronic consent at any time, and we will sendpaper copies of Fund reports within 30 days of receivingyour notice.

Web Access Information on the Funds is available atdodgeandcox.com.

On the site you can:▪ Open a new account;▪ View your account balances and recent transactions;▪ View or download your account statements, confirmation

statements, and tax forms;▪ Purchase, redeem, and exchange Fund shares;▪ Learn more about Dodge & Cox’s approach to investing;▪ Review the objectives, strategies, characteristics, and risks of

the Funds;▪ Review the Funds’ daily NAVs and performance;▪ Download or order the Funds’ prospectus and Account

Applications, shareholder reports, IRA information, and otherforms; and

▪ Sign up for electronic delivery of the Funds’ prospectus,shareholder reports, proxy materials, account statements, andtax forms.

Telephone Services The Funds provide toll-free access(800-621-3979) to Fund and account information 24 hours a day,7 days a week. The system provides total returns, share prices,and price changes for the Funds and gives your account balancesand history (e.g., last transaction, latest dividend distribution).For certain account types, you can purchase, redeem, andexchange Fund shares.

Automatic Investment Plan You may make regularmonthly, quarterly, semi-annual, or annual investments of $100or more through automatic deductions from your bank account.

Systematic Withdrawal Plan If you own $10,000 or more ofa Fund’s shares, you may receive regular monthly, quarterly, semi-annual, or annual payments of $50 or more. Shares will beredeemed automatically at NAV to make the withdrawal payments.

Individual Retirement Account (IRA) If you have earnedincome or are entitled to certain distributions from eligibleretirement plans, you may make or authorize contributions toyour own Individual Retirement Account. The Funds havetraditional IRA and Roth IRA Plans available for shareholders ofthe Funds.

Important Note: The services described may not beavailable through some retirement plans or accounts held byFinancial Intermediaries. If you are investing in such amanner, you should contact your plan administrator/trustee orFinancial Intermediaries about what services are available andwith questions about your account.


F I N A N C I A L H I G H L I G H T S

The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, theperiod of the Fund’s operations). Certain information reflects financial results for a single Fund share. The total returns in the tablerepresent the rate that an investor would have earned (or lost) on an investment in the Fund (before taxes, and assuming reinvestment of alldividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, whose report, along with the Fund’sfinancial statements, are included in the Annual Report, which is available upon request and on the Funds’ web site at dodgeandcox.com.

DODGE & COX STOCK FUND

Year Ended December 31,

2014 2013 2012 2011 2010


Net investment income 2.83 2.11 1.98 1.76 1.23Net realized and unrealized gain (loss) 14.60 46.97 20.26 (6.13) 11.62

Total from investment operations 17.43 49.08 22.24 (4.37) 12.85

Distributions to shareholders from:Net investment income (2.80) (2.11) (1.98) (1.75) (1.23)Net realized gain (2.56) — — — —



Total return 10.43% 40.55% 22.01% (4.08)% 13.48%Ratios/supplemental data:


DODGE & COX GLOBAL STOCK FUND


2014 2013 2012 2011 2010




Distributions to shareholders from:Net investment income (0.15) (0.16) (0.15) (0.15) (0.08)Net realized gain (0.30) (0.32) (0.17) (0.05) —





DODGE & COX INTERNATIONAL STOCK FUND


2014 2013 2012 2011 2010


Net investment income 0.98 0.70 0.76 0.78 0.51Net realized and unrealized gain (loss) (0.94) 8.40 5.39 (6.49) 3.85


Distributions to shareholders from:Net investment income (0.97) (0.70) (0.75) (0.76) (0.50)Net realized gain — — — — —






DODGE & COX BALANCED FUND


2014 2012 2011 2010 2009









DODGE & COX INCOME FUND


2014 2013 2012 2011 2010


Net investment income 0.39 0.42 0.48 0.55 0.57Net realized and unrealized gain (loss) 0.35 (0.33) 0.56 0.07 0.35

Total from investment operations 0.74 0.09 1.04 0.62 0.92

Distributions to shareholders from:Net investment income (0.39) (0.42) (0.48) (0.55) (0.65)Net realized gain (0.10) — — — —



Total return 5.48% 0.64% 7.94% 4.76% 7.17%Ratios/supplemental data:


DODGE & COX GLOBAL BOND FUND

Period from May 1, 2014(commencement of operations)

to December 31, 2014

Net asset value, beginning of period $10.73Income from investment operations:

Net investment income 0.16Net realized and unrealized loss (0.44)

Total from investment operations (0.28)

Distributions to shareholders from:Net investment income (0.14)Net realized gain —

Total distributions (0.14)

Net asset value, end of period $10.31

Total return (2.59)%Ratios/supplemental data:

Net assets, end of period (millions) $65Ratio of expenses to average net assets 0.60%(a)

Ratio of expenses to average net assets, before reimbursement by Investment Manager 2.18%(a)

Ratio of net investment income to average net assets 2.83%(a)

Portfolio turnover rate 36%

(a) Annualized


T R U S T E E S

Charles F. Pohl, Chairman and TrusteeChairman, Dodge & Cox

Dana M. Emery, President and TrusteeChief Executive Officer and President, Dodge & Cox

Thomas A. Larsen, TrusteeSenior Counsel, Arnold & Porter LLP

Ann Mather, TrusteeFormer Executive Vice President, Chief Financial Officer, andCompany Secretary of Pixar Studios

Robert B. Morris III, TrusteeAdvisory Director, The Presidio Group

Gary Roughead, TrusteeAnnenberg Distinguished Visiting Fellow, Hoover Institution andformer U.S. Navy Chief of Naval Operations

Mark E. Smith, TrusteeFormer Executive Vice President, Managing Director - Fixed Income atLoomis Sayles & Company, L.P.

John B. Taylor, TrusteeProfessor of Economics, Stanford University, Senior Fellow, HooverInstitution and former Under Secretary for International Affairs,United States Treasury


NOTES



FOR MORE INFORMATION

For investors who want more information about the Funds, the following documents are available free upon request:

ANNUAL/SEMI-ANNUAL REPORTS

Additional information about the Funds’ investments is available in the Funds’ annual and semi-annual reports to shareholders. In each Fund’sannual report, you will find a discussion of the market conditions and investment strategies that significantly affected the Fund’s performance duringits last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI)

The SAI provides more detailed information about the Funds and is incorporated by reference into (and thus is legally a part of) this prospectus.You can get free copies of a Fund’s annual and semi-annual reports and the SAI, request other information, and discuss your questions about the

Funds by contacting the Funds at:Dodge & Cox Fundsc/o Boston Financial Data ServicesP.O. Box 8422Boston, MA 02266-8422Telephone: 800-621-3979Internet: dodgeandcox.com

You can review and copy information about the Funds (including the SAI) at the SEC’s Public Reference Room in Washington, DC. Tofind out more about this public service, call the SEC at 202-551-8090. Reports and other information about the Funds are also available inthe EDGAR database on the SEC’s website at www.sec.gov, or you can receive copies of this information, for a fee, by electronic request atthe following e-mail address: [email protected], or by writing the SEC’s Public Reference Section, Washington, DC 20549-1520.

Funds’ Investment Company Act file no. 811-173


2015


Stock FundE S T A B L I S H E D 1 9 6 5

T I C K E R : D O D G X

12/15 SF AR Printed on recycled paper

TO OUR SHAREHOLDERS

The Dodge & Cox Stock Fund had a total return of –4.5% for theyear ending December 31, 2015, compared to a return of 1.4% forthe S&P 500 Index.

MARKET COMMENTARY

U.S. equity markets were volatile in 2015: after a significant selloffin August and September, the S&P 500 rebounded during thefourth quarter to finish the year up just over 1%. Global oil pricesdeclined 35% during the year, which aided U.S. householdpurchasing power and hindered the profitability of oil and gascompanies. Consumer Discretionary was the strongest sector (up10%) of the S&P 500, while Energy was the worst-performingsector (down 21%).

In the United States, economic activity expanded at a moderatepace: household spending and business investment increased, and thehousing market strengthened. Labor market conditions continued toimprove, with solid job gains and reduced unemployment. Growthwas tempered by the stronger U.S. dollar and weaker demand forU.S. exports. In December, the U.S. Federal Reserve (Fed) raised thefederal funds rate for the first time in nine years. The 0.25 percentagepoint increase ended a historic seven-year period with the federalfunds rate close to 0%, aimed at stimulating the economy. Fed ChairJanet Yellen reiterated the Fed’s intent to normalize monetary policygradually; the timing and size of future adjustments will be based oneconomic conditions in relation to the Fed’s goals of maximumemployment and 2% inflation.

Global growth expectations declined and emerging marketsfaced significant macroeconomic challenges during the year.China’s slowing economic growth contributed to depressedcommodity prices (e.g., global copper prices plummeted 24%) andweighed on the global economy. The stronger U.S. dollar andprospects for higher U.S. interest rates negatively affectedeconomies in need of external financing, such as Brazil.

INVESTMENT STRATEGY

As a value-oriented manager, 2015 was a challenging year forabsolute and relative performance. Across equities, value stocks(the lower valuation portion of the market) underperformedgrowth stocks (the higher valuation portion of the market) by oneof the widest spreads since the global financial crisis. The Fund wassignificantly affected by this performance divergence. Many of theS&P 500’s higher-valuation growth companies, not held by theFund, outperformed significantly. In addition, some individualFund holdings (e.g., HP Inc.(a), Time Warner, Wal-Mart)significantly detracted from results for the year, and the Fund’sEnergy holdings were negatively impacted by falling oil prices.

We extensively revisited and retested our thinking on many ofthe Fund’s holdings during 2015. Our equity and fixed incometeams regularly work together to evaluate risk and reward as welook at investment opportunities across a company’s capitalstructure, and this collaboration intensified during the year. As apart of our bottom-up research process, our investment teamsthoroughly investigated individual company concerns, challengedanalyst assumptions, and conducted further due diligence. For

example, a group of portfolio managers and analysts travelled toHouston to better understand shale economics and met withcompany management teams, suppliers, competitors, and industryconsultants. In addition, we conducted intensive reviews toevaluate the key factors affecting a company’s capital structure,end-market demand, and relative competitiveness. Through thiscomprehensive process, we reaffirmed our view that the Fund’sholdings have attractive valuations relative to their fundamentaloutlook over our three- to five-year investment horizon.

During the year, U.S. valuation disparities widened overall:companies with higher valuations became more expensive relativeto companies with lower valuations. As valuations became moreattractive, we added selectively to existing holdings, includingBaker Hughes, Bank of America, Cigna, EMC Corp., HP Inc., andMetLife.(b) We also identified 8 new investment opportunities(including American Express, Anthem, Concho Resources, andVMware) and exited 13 holdings (including Chevron, GeneralElectric, and PayPal).

We continue to be optimistic about the long-term outlook forthe portfolio. Our value-oriented approach has led us to invest incompanies where we believe the long-term potential is notreflected in the current price. Three examples—American Express,Hewlett Packard Enterprise, and HP Inc.—are discussed below.

American ExpressAmerican Express—the largest new purchase in the Fund during2015—provides charge and credit card products and travel-relatedservices to consumers and businesses worldwide. The company isthe number one credit/charge card issuer and merchant acquirer inthe United States measured by billed business, and its network isthe second largest after Visa. Historically, American Express hasgenerated attractive returns due to its vertical integration andstrong value proposition for high-spending customers.

In 2015, American Express’ stock declined 24%(c) due toconcerns that the company’s business model is under pressure:Costco U.S. and JetBlue terminated their exclusive relationshipswith the card company and the Department of Justice questionedAmerican Express’ ability to enforce rules prohibiting merchantsfrom steering customers to other credit cards. As a result,American Express’ valuation relative to the market is at ahistorically low level (13 times forward estimated earnings(d)). Weinitiated a position in the company because we believe these near-term concerns have obscured a long-term investment opportunity.The company has an attractive business model that produces highreturns on capital by encouraging more affluent and creditworthycustomers to use the company’s credit and charge cards. AmericanExpress’ highly perceived rewards program, customer service, andstrong brand recognition help attract and retain wealthiercustomers. The company should benefit from a continued industryshift from paper to plastic payments and growth in its third-partyissued cards business. We believe American Express will be able tomaintain its strong return on equity and improve profitability inthe long run. On December 31, American Express was a 1.4%position in the Fund.

P A G E 2 ▪ D O D G E & C O X S T O C K F U N D

Hewlett Packard Enterprise and HP Inc.After providing strong returns in 2013 and 2014, Hewlett-Packardwas the Fund’s largest detractor from results during 2015. Hewlett-Packard recently split into two entities—Hewlett PackardEnterprise and HP Inc.—which should result in greater focus andflexibility for each company to achieve its strategic goals. To assesssecular challenges and evaluate the risks and opportunities of eachstand-alone business, we met numerous times with theirmanagement teams and competitors and spoke with industryconsultants. As a result, we added to the Fund’s positions in bothcompanies. On December 31, Hewlett Packard Enterprise was a2.5% position and HP Inc. was a 1.8% position in the Fund.

Hewlett Packard Enterprise, one of the largest vendors ininformation technology (IT), consists of the enterprise technologyinfrastructure, software, and services segments of the old Hewlett-Packard. We acknowledge the company faces headwinds: the shiftto the cloud has negatively impacted all on-premise IT vendors,continued public cloud adoption will likely erode the company’smarket share, and competition is keen. Despite these risks, webelieve Hewlett Packard Enterprise is an attractive investment dueto its strong market positions across its portfolio (e.g., top providerof servers, number two position in IT services), scale advantages,and opportunities to improve its margin structure. Meg Whitman—the CEO of Hewlett Packard Enterprise—has overseen soundacquisitions (e.g., 3Par), new product launches, and cost reductionprograms during her tenures at Hewlett-Packard and eBay.Management is actively cutting costs and retooling its product andservice offerings to improve the company’s competitiveness.Margins in the Enterprise Services segment should expand as thecompany optimizes its contract mix and delivery models. Thecompany trades at a compelling valuation (eight times forwardestimated earnings), which is among the lowest in the S&P 500.

As the leader in printing and personal computer sales globally,HP Inc.’s key challenge is declining revenues. Partly due to thestronger U.S. dollar, consensus estimates have the company’s salesdeclining approximately 10% in 2016. Many investors believe ashrinking market for hardware and ink may be too difficult toovercome; we believe this view of the company’s prospects is toopessimistic. HP’s management is aggressively cutting costs and hasplans to introduce more new products. For example, HP hasportions of its printing business (e.g., high-end graphicsproduction) that are currently growing and may increase share inthe established copier market and in the more nascent 3D printmarket. Moreover, the company generates robust free cash flow.Trading at seven times forward estimated earnings, HP remains anattractive investment opportunity with strong business prospectsgiven its large valuation discount to the overall market.

IN CLOSING

On December 31, the Fund’s portfolio of 63 companies traded at13.8 times forward estimated earnings, a significant discount to theS&P 500 (17.4 times forward estimated earnings). We remainconfident in the prospects for the portfolio over our three- to five-year investment horizon and believe it is positioned to benefitfrom long-term global growth opportunities.

Our experienced and stable team has weathered past periodsof market turbulence by remaining steadfast in our investmentphilosophy and process. Our approach—constructing a diversifiedportfolio through in-depth, independent research, a long-terminvestment horizon, and a focus on valuation relative tounderlying fundamentals—continues to guide us through thisperiod. We remain confident that our enduring value-orientedapproach will benefit the Fund in the years ahead.





January 29, 2016

(a) After Hewlett-Packard Co. split into two companies, HP Inc. retained theHPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett-Packard Co.’s performance through October 2015.

(b) The use of specific examples does not imply that they are more attractiveinvestments than the Fund’s other holdings.

(c) All returns are total returns unless otherwise noted.(d) Unless otherwise specified, all weightings and characteristics are as of

December 31, 2015.

D O D G E & C O X S T O C K F U N D ▪ P A G E 3

ANNUAL PERFORMANCE REVIEWThe Fund underperformed the S&P 500 by 5.9 percentagepoints in 2015.

Key Detractors from Relat ive Results▪ The Fund’s holdings in the Consumer Discretionary sector

(down 6% compared to up 10% for the S&P 500 sector)hindered performance. Media holdings Twenty-First CenturyFox (down 29%) and Time Warner (down 23%) wereparticularly weak.

▪ Wal-Mart, the Fund’s only holding in the Consumer Staplessector (down 27% compared to up 7% for the S&P 500sector), hurt returns.

▪ The Fund’s holdings in the Information Technology sector(flat compared to up 6% for the S&P 500 sector) detractedfrom results. HP Inc. (down 37%) and NetApp (down 35%)performed poorly.

▪ The Fund’s holdings in the Energy sector (down 26%compared to down 21% for the S&P 500 sector) hurt results.National Oilwell Varco (down 47%), Apache (down 28%),and Schlumberger (down 16%) were key detractors.

▪ Capital One (down 11%) was also a detractor.

Key Contributors to Relat ive Results▪ The Fund’s average overweight position (6% versus 3%) and

holdings in the Health Care Providers & Services industry(up 18% compared to up 12% for the S&P 500 industry)helped returns. Cigna (up 42%) and UnitedHealth Group(up 18%) were particularly strong.

▪ In the Materials sector (up 14% compared to down 9% forthe S&P 500 sector), the Fund’s only holding, Celanese, andlack of holdings in the Metals & Mining industry (down39%) contributed to results.

▪ Additional contributors included Alphabet (up 45%), TimeWarner Cable (up 25%), Maxim Integrated Products (up23%), Microsoft (up 23%), and Charles Schwab (up 10%).



Experienced Investment TeamThe Investment Policy Committee, which is the decision-making body for the Stock Fund, is a nine-member committeewith an average tenure at Dodge & Cox of 27 years.




Risks: The Fund is subject to market risk, meaning holdings inthe Fund may decline in value for extended periods due to thefinancial prospects of individual companies, or due to generalmarket and economic conditions. Please read the prospectus andsummary prospectus for specific details regarding the Fund’s riskprofile.



Dodge & Cox Stock Fund $17,399

S&P 500 Index $20,251

12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/155,000

10,000

$30,000

20,000



Dodge & Cox Stock Fund –4.47% 11.64% 5.69% 10.05%S&P 500 Index 1.41 12.58 7.31 8.19


The Fund’s total returns include the reinvestment of dividend andcapital gain distributions, but have not been adjusted for anyincome taxes payable by shareholders on these distributions or onFund share redemptions. Index returns include dividends but,unlike Fund returns, do not reflect fees or expenses. The S&P 500Index is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equitymarket.

S&P 500® is a trademark of McGraw Hill Financial.


ACTUAL EXPENSES











D O D G E & C O X S T O C K F U N D ▪ P A G E 5


GENERAL INFORMATION

Net Asset Value Per Share $162.77Total Net Assets (billions) $54.8Expense Ratio 0.52%Portfolio Turnover Rate 15%30-Day SEC Yield(a) 1.38%Number of Companies 63Fund Inception 1965No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed bythe Investment Policy Committee, whose nine members’ averagetenure at Dodge & Cox is 27 years.

PORTFOLIO CHARACTERISTICS Fund S&P 500


(billions) $116 $140Price-to-Earnings Ratio(b) 13.8x 17.4xForeign Securities not in the S&P 500(c) 9.1% 0.0%

TEN LARGEST HOLDINGS (%)( d ) Fund

Wells Fargo & Co. 4.1Microsoft Corp. 4.0Capital One Financial Corp. 3.9Time Warner Cable, Inc. 3.9Charles Schwab Corp. 3.7Alphabet, Inc. 3.4Bank of America Corp. 3.4Novartis AG (Switzerland) 2.9EMC Corp. 2.7Schlumberger, Ltd. 2.7

ASSET ALLOCATION

Net Cash& Other:(e) 2.2%


SECTOR DIVERSIFICATION (%) Fund S&P 500

Financials 26.4 16.5Information Technology 24.6 20.7Health Care 16.5 15.2Consumer Discretionary 15.1 13.0Energy 7.3 6.5Industrials 4.2 10.0Consumer Staples 2.1 10.1Materials 0.9 2.6Telecommunication Services 0.7 2.4Utilities 0.0 3.0

(a) SEC Yield is an annualization of the Fund’s total net investment income per share for the 30-day period ended on the last day of the month.(b) Price-to-earnings (P/E) ratios for the equity securities held in the Fund and the S&P 500 are calculated using 12-month forward earnings estimates from third-party

sources.(c) Foreign securities are U.S. dollar denominated.(d) The Fund’s portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell, or hold any particular

security and is not indicative of Dodge & Cox’s current or future trading activity.(e) Net Cash & Other includes short-term investments (e.g., money market funds and repurchase agreements) and other assets less liabilities (e.g., cash, receivables,

payables, and unrealized appreciation/depreciation on certain derivatives). A majority of the short-term investments position is equitized using futures contracts.




SHARES VALUE

CONSUMER DISCRETIONARY: 15.1%AUTOMOBILES & COMPONENTS: 0.4%Harley-Davidson, Inc. 4,886,500 $ 221,798,235

CONSUMER DURABLES & APPAREL: 0.6%Coach, Inc. 10,088,700 330,203,151

MEDIA: 11.8%Comcast Corp., Class A 25,658,797 1,447,925,915DISH Network Corp., Class A(a) 6,691,149 382,599,900News Corp., Class A 4,912,806 65,635,088Time Warner Cable, Inc. 11,437,410 2,122,668,922Time Warner, Inc. 22,227,832 1,437,473,895Twenty-First Century Fox, Inc., Class A 28,934,626 785,864,442Twenty-First Century Fox, Inc., Class B 9,350,000 254,600,500

6,496,768,662RETAILING: 2.3%Liberty Interactive Corp. QVC Group,

Series A(a) 12,317,275 336,507,953Target Corp. 5,760,586 418,276,150The Priceline Group, Inc.(a) 390,900 498,377,955

1,253,162,058

8,301,932,106CONSUMER STAPLES: 2.1%FOOD & STAPLES RETAILING: 2.1%Wal-Mart Stores, Inc. 18,678,550 1,144,995,115

ENERGY: 7.3%Apache Corp.(c) 15,359,845 683,052,307Baker Hughes, Inc. 20,362,050 939,708,607Concho Resources, Inc.(a) 3,115,000 289,258,900National Oilwell Varco, Inc. 12,598,000 421,907,020Schlumberger, Ltd.(b) (Curacao/

United States) 20,848,845 1,454,206,939Weatherford International PLC(a)(b)

(Ireland) 23,907,400 200,583,086

3,988,716,859FINANCIALS: 26.4%BANKS: 10.5%Bank of America Corp. 110,553,200 1,860,610,356BB&T Corp. 14,494,144 548,023,585JPMorgan Chase & Co. 16,665,200 1,100,403,156Wells Fargo & Co. 41,962,641 2,281,089,165

5,790,126,262DIVERSIFIED FINANCIALS: 13.6%American Express Co. 10,720,800 745,631,640Bank of New York Mellon Corp. 31,721,024 1,307,540,609Capital One Financial Corp.(c) 29,786,611 2,149,997,582Charles Schwab Corp. 61,864,400 2,037,194,692Goldman Sachs Group, Inc. 6,694,800 1,206,603,804

7,446,968,327INSURANCE: 2.3%AEGON NV(b) (Netherlands) 69,285,166 392,846,891MetLife, Inc. 17,662,700 851,518,767

1,244,365,658

14,481,460,247HEALTH CARE: 16.5%HEALTH CARE EQUIPMENT & SERVICES: 7.0%Anthem, Inc. 1,288,685 179,694,237Cigna Corp. 8,052,484 1,178,319,984Express Scripts Holding Co.(a) 14,813,071 1,294,810,536Medtronic PLC(b) (Ireland) 3,749,600 288,419,232UnitedHealth Group, Inc. 7,678,063 903,247,331

3,844,491,320

SHARES VALUE

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 9.5%AstraZeneca PLC ADR(b)

(United Kingdom) 7,564,200 $ 256,804,590Merck & Co., Inc. 14,316,800 756,213,376Novartis AG ADR(b) (Switzerland) 18,828,500 1,620,004,140Roche Holding AG ADR(b) (Switzerland) 34,496,900 1,189,108,143Sanofi ADR(b) (France) 31,765,829 1,354,812,607Thermo Fisher Scientific, Inc. 226,010 32,059,518

5,209,002,374

9,053,493,694INDUSTRIALS: 4.2%CAPITAL GOODS: 0.9%Danaher Corp. 4,719,600 438,356,448NOW, Inc.(a) 1,690,218 26,739,249

465,095,697COMMERCIAL & PROFESSIONAL SERVICES: 1.4%ADT Corp.(c) 11,138,437 367,345,652Tyco International PLC(b) (Ireland) 12,974,975 413,771,953

781,117,605TRANSPORTATION: 1.9%FedEx Corp. 7,158,399 1,066,529,867

2,312,743,169INFORMATION TECHNOLOGY: 24.6%SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 0.9%Maxim Integrated Products, Inc.(c) 13,535,740 514,358,120

SOFTWARE & SERVICES: 10.8%Alphabet, Inc., Class A(a) 670,700 521,811,307Alphabet, Inc., Class C(a) 1,837,253 1,394,254,556Cadence Design Systems, Inc.(a) 7,977,200 166,005,532eBay, Inc.(a) 1,838,244 50,514,945Microsoft Corp. 39,336,600 2,182,394,568Symantec Corp.(c) 54,111,000 1,136,331,000Synopsys, Inc.(a)(c) 9,193,469 419,314,121VMware, Inc.(a) 1,309,375 74,071,344

5,944,697,373TECHNOLOGY, HARDWARE & EQUIPMENT: 12.9%Cisco Systems, Inc. 39,857,711 1,082,336,142Corning, Inc. 33,952,000 620,642,560EMC Corp. 57,817,203 1,484,745,773Hewlett Packard Enterprise Co.(c) 90,984,995 1,382,971,924HP, Inc. 84,807,695 1,004,123,109Juniper Networks, Inc. 3,231,546 89,190,670NetApp, Inc.(c) 21,532,731 571,263,353TE Connectivity, Ltd.(b) (Switzerland) 12,541,775 810,324,083

7,045,597,614

13,504,653,107MATERIALS: 0.9%Celanese Corp., Series A(c) 7,219,998 486,122,465

TELECOMMUNICATION SERVICES: 0.7%Sprint Corp.(a) 107,816,127 390,294,380


See accompanying Notes to Financial Statements D O D G E & C O X S T O C K F U N D ▪ P A G E 7



PAR VALUE VALUE


REPURCHASE AGREEMENT: 2.2%Fixed Income Clearing Corporation(d)

0.08%, dated 12/31/15, due 1/4/16,maturity value $1,204,155,704 1,204,145,000 1,204,145,000

TOTAL SHORT-TERM INVESTMENTS(Cost $1,259,567,858) $ 1,259,567,858


OTHER ASSETS LESS LIABILITIES (0.1%) (78,854,493)

NET ASSETS 100.0% $54,845,124,507

(a) Non-income producing(b) Security denominated in U.S. dollars(c) See Note 8 regarding holdings of 5% voting securities(d) Repurchase agreement is collateralized by U.S. Treasury Note 1.750%,

12/31/20. Total collateral value is $1,228,232,788.

In determining a company’s country designation, the Fund generallyreferences the country of incorporation. In cases where the Fund considersthe country of incorporation to be a “jurisdiction of convenience” chosenprimarily for tax purposes or in other limited circumstances, the Fund usesthe country designation of an appropriate broad-based market index. Inthose cases, two countries are listed - the country of incorporation and thecountry designated by an appropriate index, respectively.

ADR: American Depositary Receipt

FUTURES CONTRACTS


ExpirationDate

NotionalAmount


(Depreciation)

E-mini S&P 500Index—LongPosition 12,023 Mar 2016 $1,223,580,710 $1,713,207

P A G E 8 ▪ D O D G E & C O X S T O C K F U N D See accompanying Notes to Financial Statements


December 31, 2015ASSETS:Investments, at value

Unaffiliated issuers (cost $37,049,990,593) $48,896,755,368Affiliated issuers (cost $5,031,030,547) 6,027,223,632

54,923,979,000Cash held at broker 55,305,169Receivable for investments sold 15,637,977Receivable for Fund shares sold 61,926,918Dividends and interest receivable 60,350,707Prepaid expenses and other assets 309,904

55,117,509,675

LIABILITIES:Payable to broker for variation margin 11,542,080Payable for investments purchased 59,141,766Payable for Fund shares redeemed 176,752,622Management fees payable 23,485,250Accrued expenses 1,463,450

272,385,168

NET ASSETS $54,845,124,507

NET ASSETS CONSIST OF:Paid in capital $41,101,955,700Undistributed net investment income 7,503,253Undistributed net realized gain 890,994,487Net unrealized appreciation 12,844,671,067

$54,845,124,507




December 31, 2015INVESTMENT INCOME:Dividends (net of foreign taxes of $20,876,250)

Unaffiliated issuers $ 954,579,629Affiliated issuers 150,632,113

Interest 72,003

1,105,283,745

EXPENSES:Management fees 293,725,621Custody and fund accounting fees 724,423Transfer agent fees 4,195,938Professional services 231,414Shareholder reports 1,262,127Registration fees 262,297Trustees’ fees 237,500Miscellaneous 3,225,585

303,864,905



Unaffiliated issuers 2,784,965,660Affiliated issuers 212,205,714Index futures contracts (14,553,232)

Net change in unrealized appreciation/depreciationInvestments (6,398,781,160)Index futures contracts 1,713,207


NET DECREASE IN NET ASSETSFROM OPERATIONS $(2,613,030,971)

STATEMENT OF CHANGES IN NET ASSETS



OPERATIONS:Net investment income $ 801,418,840 $ 919,834,389Net realized gain 2,982,618,142 2,333,359,854Net change in unrealized

appreciation/depreciation (6,397,067,953) 2,407,499,870

(2,613,030,971) 5,660,694,113


Net investment income (813,298,971) (908,453,128)Net realized gain (2,475,923,268) (840,004,493)



Proceeds from sale of shares 7,399,154,348 9,175,796,977Reinvestment of distributions 3,094,798,205 1,609,896,035Cost of shares redeemed (10,006,695,861) (9,285,324,011)

Net increase from Fundshare transactions 487,256,692 1,500,369,001

Total increase/(decrease) innet assets (5,414,996,518) 5,412,605,493


End of year (including undistributednet investment income of$7,503,253 and $19,383,384,respectively) $ 54,845,124,507 $60,260,121,025



See accompanying Notes to Financial Statements D O D G E & C O X S T O C K F U N D ▪ P A G E 9



ACCOUNTING POLICIES

Dodge & Cox Stock Fund (the “Fund”) is one of the seriesconstituting the Dodge & Cox Funds (the “Trust” or the “Funds”).The Trust is organized as a Delaware statutory trust and isregistered under the Investment Company Act of 1940, asamended, as an open-end management investment company. TheFund commenced operations on January 4, 1965, and seeks long-term growth of principal and income. Risk considerations andinvestment strategies of the Fund are discussed in the Fund’sProspectus.



Portfolio securities and other financial instruments for whichmarket quotes are readily available are valued at market value.Listed securities are generally valued using the official quoted closeprice or the last sale on the exchange that is determined to be theprimary market for the security. Exchange-traded derivatives arevalued at the settlement price determined by the relevantexchange. Security values are not discounted based on the size ofthe Fund’s position. Short-term securities less than 60 days tomaturity may be valued at amortized cost if amortized costapproximates current value. Mutual funds are valued at theirrespective net asset values. All securities held by the Fund aredenominated in U.S. dollars.

If market quotations are not readily available or if a security’svalue is believed to have materially changed after the close of thesecurity’s primary market but before the close of trading on theNYSE, the security is valued at fair value as determined in goodfaith by or under the direction of the Fund’s Board of Trustees.The Board of Trustees has appointed Dodge & Cox, the Fund’sinvestment manager, to make fair value determinations inaccordance with the Dodge & Cox Funds Valuation Policies(“Valuation Policies”), subject to Board oversight. Dodge & Coxhas established a Pricing Committee that is comprised ofrepresentatives from Treasury, Legal, Compliance, and Operations.The Pricing Committee is responsible for implementing theValuation Policies, including determining the fair value ofsecurities when market quotations or market-based valuations are

not readily available or are deemed unreliable. The PricingCommittee considers relevant indications of value that arereasonably available to it in determining the fair value assigned toa particular security, such as the value of similar financialinstruments, trading volumes, contractual restrictions ondisposition, related corporate actions, and changes in economicconditions. In doing so, the Pricing Committee employs variousmethods for calibrating fair valuation approaches, including aregular review of key inputs and assumptions, back-testing, andreview of any related market activity.



Dividend income and corporate action transactions arerecorded on the ex-dividend date, or when the Fund first learns ofthe dividend/corporate action if the ex-dividend date has passed.Withholding taxes on foreign dividends have been provided for inaccordance with the Fund’s understanding of the applicablecountry’s tax rules and rates. Non-cash dividends included individend income, if any, are recorded at the fair market value ofthe securities received. Dividends characterized as return of capitalfor U.S. tax purposes are recorded as a reduction of cost ofinvestments and/or realized gain. Interest income is recorded onthe accrual basis.




P A G E 1 0 ▪ D O D G E & C O X S T O C K F U N D




The Fund entered into long S&P 500 futures contracts toprovide equity exposure in an amount comparable to the Fund’snet cash position. During the year ended December 31, 2015, theseS&P 500 futures contracts had notional values ranging from 0% to2% of net assets.









(Quoted Prices)


Observable Inputs)

SecuritiesCommon Stocks(b) $53,664,411,142 $ —Short-term Investments

Money Market Fund 55,422,858 —Repurchase Agreement — 1,204,145,000

Total $53,719,834,000 $1,204,145,000

Other Financial Instruments(c)

Index Futures ContractsAppreciation $ 1,713,207 $ —

(a) There were no transfers between Level 1 and Level 2 during the year endedDecember 31, 2015. There were no Level 3 securities at December 31, 2015and 2014, and there were no transfers to Level 3 during the year.

(b) All common stocks held in the Fund are Level 1 securities. For a detailedbreak-out of common stocks by major industry classification, please refer tothe Portfolio of Investments.

(c) Represents unrealized appreciation/(depreciation).


Management fees Under a written agreement approved by aunanimous vote of the Board of Trustees, the Fund pays an annualmanagement fee of 0.50% of the Fund’s average daily net assets toDodge & Cox, investment manager of the Fund. The agreementfurther provides that Dodge & Cox shall waive its fee to the extentthat such fee plus all other ordinary operating expenses of the Fundexceed 0.75% of the average daily net assets for the year.





Book to tax differences are primarily due to differing treatmentsof wash sales, in-kind redemptions, net short-term realized gain (loss),and Index Futures Contracts. During the year, the Fund recognizednet realized gains of $68,854,889 from the delivery of appreciatedsecurities in an in-kind redemption transaction. For federal incometax purposes, this gain is not recognized as taxable income to theFund and therefore will not be distributed to shareholders. AtDecember 31, 2015, the cost of investments for federal income taxpurposes was $42,086,555,899.

D O D G E & C O X S T O C K F U N D ▪ P A G E 1 1






Long-term capital gain $2,475,923,268 $840,004,493($7.577 per share) ($2.560 per share)


Unrealized appreciation $15,260,989,069Unrealized depreciation (2,423,565,968)

Net unrealized appreciation 12,837,423,101Undistributed ordinary income 7,503,253Undistributed long-term capital gain 898,242,453






For the year ended December 31, 2015 purchases and sales ofsecurities, other than short-term securities, aggregated $8,811,129,493and $11,133,446,900, respectively.


Fund management has determined that no material events ortransactions occurred subsequent to December 31, 2015, andthrough the date of the Fund’s financial statements issuance,which require additional disclosure in the Fund’s financialstatements.



NOTE 8—HOLDINGS OF 5% VOTING SECURITIES

Each of the companies listed below was considered to be an affiliate of the Fund because the Fund owned 5% or more of the company’svoting securities during all or part of the year ended December 31, 2015. Purchase and sale transactions and dividend income earned duringthe year on these securities were as follows:

Shares atBeginning of Year Additions Reductions

Shares atEnd of Year

DividendIncome(a)

Value atEnd of Year

ADT Corp. 11,819,337 — (680,900) 11,138,437 $ 9,613,243 $ 367,345,652AOL, Inc. 7,100,754 — (7,100,754) — —(b) —Apache Corp. 18,390,028 918,617 (3,948,800) 15,359,845 17,987,095 —(c)

Capital One Financial Corp. 28,169,211 2,020,000 (402,600) 29,786,611 43,659,793 2,149,997,582Celanese Corp., Series A 9,220,971 — (2,000,973) 7,219,998 9,652,893 —(c)

Hewlett Packard Enterprise Co. — 91,237,195 (252,200) 90,984,995 5,004,175 1,382,971,924Maxim Integrated Products, Inc. 16,326,840 500,000 (3,291,100) 13,535,740 17,840,454 —(c)

NetApp, Inc. 19,794,000 2,800,000 (1,061,269) 21,532,731 14,697,360 571,263,353Symantec Corp. 51,921,000 2,340,000 (150,000) 54,111,000 32,177,100 1,136,331,000Synopsys, Inc. 13,627,969 — (4,434,500) 9,193,469 —(b) 419,314,121

$150,632,113 $6,027,223,632

(a) Net of foreign taxes, if any(b) Non-income producing(c) Company was not an affiliate at year end




2015 2014 2013 2012 2011












To the Trustees of Dodge & Cox Funds and Shareholders of Dodge & Cox Stock Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements ofoperations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position ofDodge & Cox Stock Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) at December 31, 2015, the results of itsoperations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financialhighlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the UnitedStates of America. These financial statements and financial highlights (hereafter referred to as financial statements) are the responsibilityof the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conductedour audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (UnitedStates). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statementsare free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thefinancial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overallfinancial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, bycorrespondence with the custodian and brokers, provide a reasonable basis for our opinion.



SPECIAL 2015 TAX INFORMATION(unaudited)The following information is provided pursuant to provisions ofthe Internal Revenue Code:

The Fund designates up to a maximum amount of$1,125,715,182 of its distributions paid to shareholders in 2015 asqualified dividends (treated for federal income tax purposes in thehands of shareholders as taxable at a maximum rate of 20%).


BOARD APPROVAL OF FUNDS’ INVESTMENTMANAGEMENT AGREEMENTS ANDMANAGEMENT FEES(unaudited)The Board of Trustees is responsible for overseeing the performanceof the Dodge & Cox Funds’ investment manager and determiningwhether to continue the Investment Management Agreementsbetween the Funds and Dodge & Cox each year (the“Agreements”). At a meeting of the Board of Trustees of the Trustheld on December 16, 2015, the Trustees, by a unanimous vote(including a separate vote of those Trustees who are not “interestedpersons” (as defined in the Investment Company Act of 1940) (the“Independent Trustees”)), approved the renewal of the Agreementsfor an additional one-year term through December 31, 2016 withrespect to each Fund. During the course of the year, the Boardreceived a wide variety of materials relating to the investmentmanagement and administrative services provided by Dodge & Coxand the performance of each of the Funds.


In advance of the meeting, the Board, including each of theIndependent Trustees, requested, received, and reviewed materialsrelating to the Agreements and the services provided byDodge & Cox. The Independent Trustees retained Morningstar® toprepare an independent expense and performance summary for eachFund and comparable funds managed by other advisers identified byMorningstar. The Morningstar materials included informationregarding advisory fee rates, expense ratios, and transfer agency,custodial, and distribution expenses, as well as appropriateperformance comparisons to each Fund’s peer group and an index orcombination of indices. The Morningstar materials also included acomparison of expenses of various share classes offered bycomparable funds. The materials reviewed by the Board containedinformation concerning, among other things, Dodge & Cox’sprofitability, financial results and condition, advisory fee revenue,and separate account and sub-adviser fund fee schedules. The Boardadditionally considered the Funds’ brokerage commissions, turnoverrates, sales and redemption data and the significant investment thatDodge & Cox makes in research used in managing the Funds. TheBoard received and reviewed memoranda and related materialsaddressing, among other things, Dodge & Cox’s services to theFunds; how Dodge & Cox Funds’ fees compare to fees of peer groupfunds; the different fees, services, costs, and risks associated with

other accounts managed by Dodge & Cox as compared to theDodge & Cox Funds; and the ways in which the Funds realizeeconomies of scale. Throughout the process of reviewing theservices provided by Dodge & Cox and preparing for the meeting,the Independent Trustees found Dodge & Cox to be open,forthright, detailed, and very helpful in answering questions aboutall issues. The Board received copies of the Agreements and amemorandum from the independent legal counsel to theIndependent Trustees discussing the factors generally regarded asappropriate to consider in evaluating advisory arrangements. TheTrust’s Contract Review Committee, consisting solely ofIndependent Trustees, met with the independent legal counsel onNovember 11, 2015, and again on December 16, 2015, to discusswhether to renew the Agreements. The Board, including theIndependent Trustees, subsequently concluded that the existingAgreements are fair and reasonable and voted to approve theAgreements. In considering the Agreements, the Board, includingthe Independent Trustees, did not identify any single factor orparticular information as all-important or controlling. In reachingthe decision to approve the Agreements, the Board consideredseveral factors, discussed below, to be key factors and reached theconclusions described below.


The Board considered that Dodge & Cox provides a wide range ofservices to the Funds in addition to portfolio management and thatthe quality of these services has been excellent in all respects. Theextensive nature of services provided by Dodge & Cox has beendocumented in materials provided to the Board and inpresentations made to the Board throughout the year. Inparticular, the Board considered the nature, quality, and extent ofportfolio management, administrative, and shareholder servicesperformed by Dodge & Cox. With regard to portfolio managementservices, the Board considered Dodge & Cox’s established long-term history of care and conscientiousness in the management ofthe Funds; its demonstrated consistency in investment approachand depth; the background and experience of the Dodge & CoxInvestment Policy Committee, International Investment PolicyCommittee, Global Stock Investment Policy Committee, FixedIncome Investment Policy Committee, and Global BondInvestment Policy Committee, and research analysts responsiblefor managing the Funds; its methods for assessing the regulatoryand investment climate in various jurisdictions; Dodge & Cox’soverall high level of attention to its core investment managementfunction; and its commitment to the Funds and their shareholders.In the area of administrative and shareholder services, the Boardconsidered the excellent quality of Dodge & Cox’s work in areassuch as compliance, legal services, trading, proxy voting,technology, oversight of the Funds’ transfer agent and custodian,tax compliance, and shareholder communication through itswebsite and other means. The Board also noted Dodge & Cox’sdiligent disclosure policy, its favorable compliance record, and itsreputation as a trusted, shareholder-friendly mutual fund family. Inaddition, the Board considered that Dodge & Cox managesapproximately $185 billion in Fund assets with fewer professionals


than most comparable funds, and that on average theseprofessionals have more experience and longer tenure thaninvestment professionals at comparable funds. The Board alsonoted that Dodge & Cox is an investment research-oriented firmwith no other business endeavors to distract management’sattention from its research efforts, and that its investmentprofessionals adhere to a consistent investment approach acrossthe Funds. The Board further considered the favorable stewardshipgrades given by Morningstar to each of the Funds and the “Gold”analyst rating awarded by Morningstar to all of the Funds exceptthe Global Bond Fund. The Board concluded that it was satisfiedwith the nature, extent, and quality of investment managementand other services provided to the Funds by Dodge & Cox.





The Board noted that expenses are well below industryaverages. When compared to peer group funds, the Funds are inthe quartile with the lowest expense ratios. The Board also

considered that the Funds receive numerous administrative,regulatory compliance, legal, technology and shareholder supportservices from Dodge & Cox without any additional administrativefee and the fact that the Funds have relatively low transactioncosts and portfolio turnover rates. The Board noted the Funds’unusual single-share-class structure and reviewed Morningstar datashowing that the few peer group funds with lower expense ratiosoften have other share classes with significantly higher expenseratios. In this regard, the Board considered that many of the Funds’shareholders would not be eligible to purchase comparably-pricedshares of many peer group funds, which typically make their lower-priced share classes available only to institutional investors. TheBoard determined that the Funds provide access for small investorsto high quality investment management at a relatively low cost.

The Board reviewed information regarding the fee ratesDodge & Cox charges to separate accounts and subadvised fundsthat have investment programs similar to those of the Funds,including instances where separate account and sub-advised fundfees are lower than Fund fees. The Board considered differences inthe nature and scope of services Dodge & Cox provides to theFunds as compared to other client accounts, differences inregulatory, litigation, and other risks as between Dodge & CoxFunds and other types of clients. The Board also noted thatdifferent markets exist for mutual fund and institutional separateaccount management services. With respect to non-U.S. fundssponsored and managed by Dodge & Cox that are comparable tothe Funds in many respects, the Board noted that the fee ratescharged by Dodge & Cox are the same as or higher than the feerates charged to the Funds. After consideration of these matters, theBoard concluded that the overall costs incurred by the Funds forthe services they receive (including the management fee paid toDodge & Cox) are reasonable and that the fees are acceptable basedupon the qualifications, experience, reputation, and performance ofDodge & Cox and the low overall expense ratios of the Funds.

Profitability and Costs of Services to Dodge & Cox;“Fall-out” Benefits. The Board reviewed reports ofDodge & Cox’s financial position, profitability, and estimatedoverall value, and considered Dodge & Cox’s overall profitabilitywithin its context as a private, employee-owned S-Corporationand relative to the favorable services provided. The Board noted inparticular that Dodge & Cox’s profits are not generated by high feerates, but reflect an extraordinarily streamlined, efficient, andfocused business approach toward investment management. TheBoard recognized the importance of Dodge & Cox’s profitability—which is derived solely from management fees and does notinclude other business ventures—to maintain its independence,stability, company culture and ethics, and management continuity.The Board also considered that the compensation/profit structureat Dodge & Cox includes a return on shareholder employees’investment in the firm, which is vital for remaining independentand facilitating retention of management and investmentprofessionals. The Board considered independent researchindicating that firms that grow organically, rather than throughacquisition, tend to have better performance. Key to organicgrowth is the ability to retain talented and experienced analysts,portfolio managers and other professionals.


The Board also considered that in January 2015,Dodge & Cox closed the International Stock Fund to newinvestors to pro-actively manage the growth of the Fund. TheStock Fund and Balanced Fund were similarly closed to newinvestors during periods of significant growth in the past. Whilethese actions are intended to benefit existing shareholders, theeffect is to reduce potential revenues to Dodge & Cox from newshareholders. The Board also considered potential “fall-out”benefits (including the receipt of research from unaffiliated brokersand reputational benefits to non-U.S. funds sponsored andmanaged by Dodge & Cox) that Dodge & Cox might receive as aresult of its association with the Funds and determined that theyare acceptable. The Board also noted that Dodge & Cox continuesto invest substantial sums in its business in order to provideenhanced services, systems and research capabilities, all of whichbenefit the Funds. The Board concluded that Dodge & Cox’sprofitability is the keystone of its independence, stability and long-term investment performance and that the profitability ofDodge & Cox’s relationship with the Funds (including fall-outbenefits) is fair and reasonable.

ECONOMIES OF SCALE

The Board considered whether there have been economies of scalewith respect to the management of each Fund, whether the Fundshave appropriately benefited from any economies of scale, andwhether the management fee rate is reasonable in relation to theFund assets and any economies of scale that may exist. In theBoard’s view, any consideration of economies of scale must takeaccount of the Funds’ low fee structure and the considerableefficiencies of the Funds’ organization and fee structure that hasbeen realized by shareholders from the time of each Fund’sinception (i.e., from the first dollar). An assessment of economiesof scale must also take into account that Dodge & Cox investssignificant time and resources in each new Fund for months (andsometimes years) prior to launch; in addition, expenses are capped,which means that Dodge & Cox earns no revenue and subsidizesthe operations of a new Fund for a period of time until it reachesscale.



CONCLUSION


FUND HOLDINGSThe Fund provides a complete list of its holdings four times eachfiscal year, as of the end of each quarter. The Fund files the listswith the Securities and Exchange Commission (SEC) onForm N-CSR (second and fourth quarters) and Form N-Q (firstand third quarters). Shareholders may view the Fund’sForms N-CSR and N-Q on the SEC’s website at sec.gov. FormsN-CSR and N-Q may also be reviewed and copied at the SEC’sPublic Reference Room in Washington, DC. Informationregarding the operations of the Public Reference Room may beobtained by calling 202-551-8090 (direct) or 800-732-0330(general SEC number). A list of the Fund’s quarter-end holdings isalso available at dodgeandcox.com on or about 15 days followingeach quarter end and remains available on the website until thelist is updated in the subsequent quarter.











—

Dana M. Emery(54)



—



—




—







—





Trustee(Since 2002)


—




Trustee(Since 2011)







—



—




Stock Fund

dodgeandcox.com


or write or call:

DODGE & COX FUNDS


INVESTMENT MANAGER




2015 DISCLOSURE DOCUMENT FOR FORM 5500, SCHEDULE C

The disclosure herein relates to the DODGE & COX FUNDS (the “Funds”), an open-end mutual fund comprised of the following five series (each series is referred to individually as a “Fund”): Dodge & Cox Stock Fund (ticker: DODGX /CUSIP: 256219106) Dodge & Cox Global Stock Fund (ticker: DODWX /CUSIP: 256206202) Dodge & Cox International Stock Fund (ticker: DODFX /CUSIP: 256206103) Dodge & Cox Balanced Fund (ticker: DODBX /CUSIP: 256201104) Dodge & Cox Income Fund (ticker: DODIX /CUSIP: 256210105) Dodge & Cox Global Bond Fund (ticker: DODLX /CUSIP: 256206301)

This disclosure provides information regarding direct and indirect compensation received by Dodge & Cox in 2015 relating to the investment by your employee benefit plan (the “Plan”) in the Funds, which are managed by Dodge & Cox. This information may be used for purposes of completing Schedule C (Service Provider Information) to Form 5500. Although the plan administrator is responsible for completing Form 5500, including Schedule C, we are pleased to provide the following fee and expense information relating to the Funds to assist you in preparing the direct or indirect compensation disclosure required in Schedule C. We believe that all of the compensation received by Dodge & Cox that is required to be reported on Schedule C should constitute “eligible indirect compensation” (“EIC”) for purposes of Schedule C. To the extent such compensation constitutes EIC, the Plan should be able to rely on the alternative reporting option in Part I, item 1 of Schedule C. The alternative reporting option requires that the Plan administrator receive the following information:

The existence of the eligible indirect compensation; The services provided for the indirect compensation or the purpose for the payment of the indirect

compensation; The amount (or estimate) of the compensation or a description of the formula used to calculate or

determine the compensation (or, in the case of soft dollars, if a formula or estimated value cannot be provided, the plan may be given a description of the eligibility conditions sufficient to allow a plan fiduciary to evaluate them for reasonableness and potential conflicts of interest); and

The identity of the party or parties paying and receiving the compensation. Except as otherwise indicated below, all of this information is available in the Fund’s prospectus. For total assets and expenses of each Fund as of the fiscal year ending 12/31/15 please see the 2015 Annual Report for each Fund, which is available at dodgeandcox.com. Dodge & Cox’s address is: 555 California St., 40th Floor, San Francisco, CA 94104. Dodge & Cox’s EIN is: 94-1441976. Note: No Dodge & Cox affiliate earned any compensation from any Fund or Plan.

April 2016

Investment Management Fees Dodge & Cox performs investment management services for, and receives investment management fees that are paid by, each of the Funds. The dollar amount of investment management fees paid to Dodge & Cox by each Fund is set forth in that Fund’s Annual Report. The investment management fee is equal to a percentage of the applicable Fund’s assets; the specific percentage is set forth under “Annual Fund Operating Expenses” section of the prospectus applicable to the Fund, which is available at dodgeandcox.com. The investment management fee applies to all Fund assets, including assets of the Plan that are invested in the Fund. Soft Dollars Dodge & Cox may consider the value of research and brokerage services provided by broker-dealers in selecting broker-dealers to execute securities transactions for the Funds. Further information about Dodge & Cox’s soft dollar policy and practices, including a description of the services received, is set forth in Dodge & Cox’s Form ADV Part 2A, which is available by contacting Timothy N. Mahoney at [email protected]. In general, it is not practicable to determine or estimate the cash value of all the research services received by Dodge & Cox. Instead, research is deemed of value if (a) it is provided by a broker-dealer and qualifies as eligible research for purposes of Section 28(e) under the Securities Exchange Act of 1934, as amended; and (b) Dodge & Cox research analysts determine that the research is likely to assist them in their investment analysis and investment decision making process. Further, Dodge & Cox does not allocate the relative costs or benefits of research obtained with soft dollars to particular client accounts as it believes that such research, in the aggregate, assists it in fulfilling its overall responsibilities to client accounts, including the Funds. In 2015, Dodge & Cox received research from the broker-dealers listed in Attachment A. To the extent Dodge & Cox received research from broker-dealers not listed in the attachment, such research was not deemed to be of material value. More information on each Fund’s trading policies and procedures is available in the Fund’s Statement of Additional Information, available at www.dodgeandcox.com under the heading Brokerage Allocation and Other Practices. Gifts and Entertainment It is the policy of Dodge & Cox that Access Persons (e.g., directors, trustees, officers, and employees of the Dodge & Cox Group) should not accept or solicit anything of value that is intended or designed to cause, or would be reasonably judged to have the likely effect of causing, such Access Person to act in a manner that is inconsistent with the best interest of Dodge & Cox clients. Similarly, Access Persons are not permitted to offer gifts, favors, entertainment or other things of value that could be viewed as overly generous or aimed at influencing decision-making or making a client feel beholden to the firm. Access Persons are generally not permitted to keep any gifts valued at $50 or more or to accept lavish or extensive business entertainment in connection with his or her employment at or work with Dodge & Cox from any broker/dealer, consultant, bank, corporation, or other supplier of goods or services to Dodge & Cox or client accounts or from any client of Dodge & Cox or from a client's estate. Dodge & Cox believes that any gifts and entertainment received by Access Persons are received in the context of a general business relationship and should not be viewed as attributable or allocable to any particular Fund or to any particular investor in our Funds (including the Plan) or other account. In any event, if the value of gifts and entertainment received by Access Persons during the relevant calendar year were allocated by Dodge & Cox pro

rata based on the value of each investor in our Funds or other account, in relation to total assets under management, the value allocated to any Plan would be beneath the reporting thresholds for non-monetary compensation set forth in the Form 5500 Schedule C instructions. For questions regarding the information contained herein, please contact Timothy N. Mahoney at [email protected]. THIS DISCLOSURE DOCUMENT DOES NOT CONSTITUTE LEGAL ADVICE TO PLANS SUBJECT TO FORM 5500 SCHEDULE C REPORTING OBLIGATIONS REGARDING COMPLIANCE WITH THOSE REPORTING REQUIREMENTS. THIS DISCLOSURE DOCUMENT IS NOT AN OFFER TO SELL SECURITIES AND IS NOT INTENDED TO PROVIDE ANY DISCLOSURE REQUIRED BY FEDERAL OR STATE SECURITIES LAWS. IT HAS BEEN PREPARED SOLELY TO ASSIST PLANS IN COMPLYING WITH THEIR FORM 5500 SCHEDULE C REPORTING OBLIGATIONS.

ATTACHMENT A

2015 PROVIDERS OF RESEARCH & TRADING SERVICES TO DODGE & COX

These broker-dealers provide research which we believe add value to our investment analysis and block trading capability. Research services do not involve specific commission expectations and are not contractual obligations. Brokers are selected on their perceived ability to provide best execution on a trade which may include but is not limited to their ability 1) to provide competitive electronic trading platforms, 2) to commit capital to facilitate block trades, 3) to provide natural order flow, 4) to execute at competitive commission rates, and/or 5) to preserve confidentiality/anonymity. Commissions paid to these brokers are considered bundled commissions that cover trading and research services.

BARCLAYS CAPITAL INC BMO CAPITAL MARKETS BNP PARIBAS BTIG, LLC CANTOR FITZGERALD & CO INC CITIGROUP GLOBAL MARKETS INC. COWEN & CO CREDIT SUISSE SECURITIES DAIWA SECURITIES DEUTSCHE BANK SECURITIES GOLDMAN SACHS & CO HSBC SECURITIES ISI CAPITAL LLC JEFFERIES & CO JP MORGAN KEEFE BRUYETTE & WOODS KOTAK SECURITES LTD MACQUARIE CAPITAL (USA) INC. MERRILL LYNCH (BANK OF AMERICA) MITSUBISHI UFJ SECURITIES (USA) MIZUHO SECURITIES USA INC. MORGAN STANLEY NOMURA SECURITIES INTL INC PIPER JAFFRAY RAYMOND JAMES & ASSOCIATES INC. RBC CAPITAL MARKETS CORP SANFORD C BERNSTEIN & CO TRADITION UBS WARBURG LLC

Balanced Fund - ADP · 2017-04-24 · TO OUR SHAREHOLDERS The Dodge & Cox Balanced Fund had a total...

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Transcript of Balanced Fund - ADP · 2017-04-24 · TO OUR SHAREHOLDERS The Dodge & Cox Balanced Fund had a total...