Balanced Fund ESTABLISHED 1931

D ODGE &COX F UNDS® 2015

Annual Report December 31, 2015

TICKER: DODBX

12/15 BF AR Printed on recycled paper TO OUR SHAREHOLDERS

The Dodge & Cox Balanced Fund had a total return of –2.9% for the equity portfolio, outperformed significantly. In addition, some year ending December 31, 2015, compared to 1.3% for the Combined individual holdings (e.g., HP Inc.(f), Time Warner, Wal-Mart) Index(a) (a 60/40 blend of stocks and fixed income securities). significantly detracted from results for the year, and the portfolio’s Energy holdings were negatively impacted by falling oil prices. MARKET COMMENTARY We continue to be optimistic about the long-term outlook for U.S. equity markets were volatile in 2015: after a significant selloff the equity portfolio. Our value-oriented approach has led us to in August and September, the S&P 500 rebounded during the invest in companies where we believe the long-term potential is fourth quarter to finish the year up just over 1%. Global oil prices not reflected in the current valuation. Two examples of such declined 35% during the year, which aided U.S. household companies—American Express and Hewlett Packard Enterprise— purchasing power and hindered the profitability of oil and gas are discussed below.(g) companies. Consumer Discretionary was the strongest sector (up 10%) of the S&P 500, while Energy was the worst-performing American Express sector (down 21%). American Express—the largest new purchase in the equity portfolio In the United States, economic activity expanded at a during 2015—provides charge and credit card products and travel- moderate pace: household spending and business investment related services to consumers and businesses worldwide. The increased, and the housing market strengthened. Labor market company is the number one credit/charge card issuer and merchant conditions continued to improve, with solid job gains and reduced acquirer in the United States measured by billed business, and its unemployment. Growth was tempered by the stronger U.S. dollar network is the second largest after Visa. Historically, American and weaker demand for U.S. exports. In December, the U.S. Express has generated attractive returns due to its vertical integration Federal Reserve (Fed) raised its target federal funds rate for the first and strong value proposition for high-spending customers. time in nine years. At that time, Fed Chair Janet Yellen reiterated In 2015, American Express’ stock price declined 24% due to the Fed’s intent to normalize monetary policy gradually; the timing concerns that the company’s business model is under pressure: Costco and size of future adjustments will be based on economic U.S. and JetBlue terminated their exclusive relationships with the conditions in relation to the Fed’s goals of maximum employment card company and the Department of Justice questioned American and 2% inflation. Express’ ability to enforce rules prohibiting merchants from steering Rising interest rates and wider credit yield premiums(b) resulted customers to other credit cards. As a result, American Express’ in a small positive return for the U.S. bond market in 2015. Some of valuation relative to the market is at a historically low level (13 times the prominent factors affecting bond prices included changing forward estimated earnings(h)). We initiated a position in the expectations regarding Fed policy, diverging global economic company because we believe these near-term concerns have obscured conditions and monetary policy, and concerns about the effect of a long-term investment opportunity. The company has an attractive China’s decelerating economy. Investment-grade corporate bonds business model that produces high returns on capital by encouraging returned –0.7%(c) for 2015, underperforming comparable-duration(d) more affluent and creditworthy customers to use the company’s credit Treasuries by 1.6 percentage points in the sector’s poorest relative and charge cards. American Express’ highly perceived rewards result since 2011. Agency-guaranteed(e) mortgage-backed securities program, customer service, and strong brand recognition help attract (MBS) returned 1.5% for the year, roughly in line with comparable- and retain wealthier customers. The company should benefit from a duration Treasuries. continued industry shift from paper to plastic payments and growth in its third-party issued cards business. We believe American Express INVESTMENT STRATEGY will be able to maintain its strong return on equity and improve We continue to set the Fund’s asset allocation based on our long- profitability in the long run. On December 31, American Express was term outlook for the Fund’s common stock, preferred stock, and a 1.4% position in the equity portfolio. fixed income holdings. We increased the allocation to preferred stock by 2.3 percentage points during the year due to attractive Hewlett Packard Enterprise valuations and decreased our common stock and fixed income After providing strong returns in 2013 and 2014, Hewlett-Packard weightings by 0.8 percentage points and 1.6 percentage points, was the portfolio’s largest detractor from results during 2015. respectively. Hewlett-Packard recently split into two entities—Hewlett Packard Enterprise and HP Inc.—which should result in greater focus and Equity Strategy flexibility for each company to achieve its strategic goals. To assess As a value-oriented manager, 2015 was a challenging year for secular challenges and evaluate the risks and opportunities of each absolute and relative performance. Across equities, value stocks (the stand-alone business, we met numerous times with their lower valuation portion of the market) underperformed growth stocks management teams and competitors and spoke with industry (the higher valuation portion of the market) by one of the widest consultants. As a result, we added to the portfolio’s positions in spreads since the global financial crisis. The equity portfolio of the both companies. On December 31, Hewlett Packard Enterprise was Fund was significantly affected by this performance divergence. Many a 2.4% position and HP Inc. was a 1.8% position in the equity of the S&P 500’s higher-valuation growth companies, not held in the portfolio.

PAGE 2 ▪ D ODGE &COX B ALANCED F UND Hewlett Packard Enterprise, one of the largest vendors in underperformed substantially in 2015), based in part on potential information technology (IT), consists of the enterprise technology downside protection provided by strong government relationships infrastructure, software, and services segments of the old Hewlett- and other sources of financial flexibility. Packard. We acknowledge the company faces headwinds: the shift We continue to maintain a substantial position in to the cloud has negatively impacted all on-premise IT vendors, subordinated securities issued by large U.S. and UK banks. 2015 continued public cloud adoption will likely erode the company’s presented opportunities to broaden these investments to include market share, and competition is keen. Despite these risks, we industrial hybrids, which are subordinated securities that are given believe Hewlett Packard Enterprise is an attractive investment due partial equity treatment by the rating agencies. Examples include to its strong market positions across its portfolio (e.g., top provider hybrid securities issued by TransCanada, a midstream energy of servers, number two position in IT services), scale advantages, company whose stability is supported by the long-term contractual and opportunities to improve its margin structure. Meg Whitman— nature of its business, and BHP Billiton, the world’s largest mining the CEO of Hewlett Packard Enterprise—has overseen sound company with a strong balance sheet and attractive cost positions acquisitions (e.g., 3Par), new product launches, and cost reduction in its operations. programs during her tenures at Hewlett-Packard and eBay. We remain constructive on the Fund’s credit holdings, which Management is actively cutting costs and retooling its product/ generally are diversified across market sectors, trade at attractive service offerings to improve the company’s competitiveness. prices, and maintain financial flexibility to weather the current Margins in the Enterprise Services segment should expand as the challenged environment. While we recognize that recent increases company optimizes its contract mix and delivery models. The in corporate leverage and shareholder remuneration could result in company trades at a compelling valuation (eight times forward weaker credit profiles, we believe that valuations provide adequate estimated earnings), which is among the lowest in the S&P 500. compensation for the current risks. Turning to the portfolio’s Agency MBS, currently a 33% Fixed Income Strategy weighting, we shifted both the weighting and the mix of We increased the fixed income portfolio weighting in credit underlying holdings throughout the year in response to changing investments to 55% in 2015 due to wider credit premiums and valuations. We likewise reduced the portfolio’s holdings of shorter- reduced our weighting in Treasuries to 8%. Most of the higher duration AAA-rated ABS to purchase relatively more attractive allocation to credit occurred in corporate bonds where the corporate bonds. We continue to view the portfolio’s MBS weighting rose to 46% from 44% at the end of 2014. A 36% favorably in terms of their ability to generate regular income, allocation to structured products—Agency-guaranteed MBS (at provide an important source of liquidity, and add an element of 33%) and more traditional, AAA-rated asset-backed securities defensiveness in a volatile market environment for credit markets. (3%)—rounds out the fixed income portfolio’s non-U.S. Treasury With respect to interest rate risk, we believe it is prudent to sector exposures. mitigate the effect of price declines associated with rising interest Most of the increase in the credit position occurred in the rates through a shorter portfolio duration (roughly 70% of that of third quarter, in part due to high levels of new issuance in the Barclays U.S. Agg). We see a clear disconnect between the connection with M&A financing. These transactions generally slow pace of rate increases implied by current U.S. Treasury resulted in higher leverage and more attractive entry points for valuations and the faster pace indicated by Fed expectations, investors due to wider credit premiums at new issue. Much of the particularly in the context of a modestly expanding economy recent increase in investment-grade corporate leverage has been (more than 2% growth is expected over the next several years) and concentrated in highly-rated issuers engaging in strategic an inflation rate likely to rise as energy and import prices increase. transactions that build scale and are expected to result in It is our view that interest rates will rise more quickly than the meaningful synergies. Examples of new or growing positions in the levels implied by the market’s very modest expectations. portfolio during 2015 related to strategic actions by corporate issuers included Allergan, Charter Communications, Hewlett IN CLOSING Packard Enterprise, and Imperial Tobacco Group. On December 31, the Fund’s equity portfolio of 63 companies We have also found opportunities to invest in market sectors traded at 13.8 times forward estimated earnings, a significant experiencing heightened volatility. In 2015, these segments were discount to the S&P 500 (17.4 times forward estimated earnings). primarily the commodities sectors and the emerging markets, with We remain confident in the prospects for the equity portfolio over the hardest-hit issuers exposed to both. Our analysis has focused on our three- to five-year investment horizon and believe it is issuers whose securities appear undervalued relative to credit positioned to benefit from long-term global growth opportunities. fundamentals, and has included in-depth assessments of the value The fixed income portfolio, with its defensive duration posture and of an issuer’s assets over a market cycle, as well as the issuer’s higher yield than the Barclays U.S. Agg, is positioned to soften the ability to survive a prolonged period of commodity price weakness. effects of increases in interest rates that could reduce fixed income The result of this analysis has been new or increased exposures to asset values. BHP Billiton, Cemex, Codelco, Kinder Morgan, Teck Resources, Our experienced and stable team has weathered past periods and TransCanada. We have also maintained the Fund’s positions of market turbulence by remaining steadfast in our investment in Petrobras, Rio Oil Finance Trust, and Pemex (all of which philosophy and process. Our approach—constructing a diversified

D ODGE &COX B ALANCED F UND ▪ PAGE 3 portfolio through in-depth, independent research, a three- to five- year investment horizon, and a focus on valuation relative to underlying fundamentals—continues to guide us through this period 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. As always, we welcome your comments and questions.

For the Board of Trustees,

Charles F. Pohl, Dana M. Emery, Chairman 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-weighted index of 500 large capitalization stocks commonly used to represent the U.S. equity market, and 40% of the Barclays U.S. Aggregate Bond Index (Barclays U.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. Narrowing yield premiums result in a higher valuation. Widening yield premiums result in 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, Fannie Mae, or Freddie Mac) does not eliminate market risk. (f) After Hewlett-Packard Co. split into two companies, HP Inc. retained the HPQ 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 attractive investments than the Fund’s other holdings. (h) Unless otherwise specified, all weightings and characteristics are as of December 31, 2015.

PAGE 4 ▪ D ODGE &COX B ALANCED F UND ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the Combined Index by 4.2 Independent Organization percentage points in 2015. The Fund’s higher weighting in Dodge & Cox is one of the largest privately owned investment equities had a negative impact on results. Preferred equities managers in the world. We remain committed to independence, were especially strong and contributed meaningfully. with a goal of providing the highest quality investment management service to our existing clients. Equity Portfolio Over 85 Years of Investment Experience ▪ The portfolio’s holdings in the Consumer Discretionary Dodge & Cox was founded in 1930. We have a stable and well- sector (down 6% compared to up 10% for the S&P 500 qualified team of investment professionals, most of whom have sector) hindered performance. Media holdings Twenty-First spent their entire careers at Dodge & Cox. Century Fox (down 29%) and Time Warner (down 23%) were particularly weak. Experienced Investment Team ▪ Wal-Mart, the portfolio’s only holding in the Consumer The Investment Policy Committee, which is the decision- Staples sector (down 27% compared to up 7% for the S&P making body for the equity portion of the Balanced Fund, is a 500 sector), hurt returns. nine-member committee with an average tenure at ▪ The portfolio’s holdings in the Information Technology Dodge & Cox of 27 years. The Fixed Income Investment Policy sector (flat compared to up 6% for the S&P 500 sector) Committee, which is the decision-making body for the Fixed detracted from results. HP Inc. (down 37%) and NetApp Income portion of the Balanced Fund, is an eight-member (down 35%) performed poorly. committee with an average tenure of 20 years. ▪ The portfolio’s average overweight position (5% versus 3%) One Business with a Single Research Office and holdings in the Health Care Providers & Services Dodge & Cox manages equity (domestic, international, and industry (up 18% compared to up 12% for the S&P 500 global), fixed income (domestic and global), and balanced industry) helped returns. Cigna (up 42%) and UnitedHealth investments, operating from one office in San Francisco. Group (up 18%) were particularly strong. Consistent Investment Approach Fixed Income Portfolio Our team decision-making process involves thorough, bottom- ▪ Certain emerging market-related credit holdings underperformed up fundamental analysis of each investment. for the year, including Pemex, Petrobras, and Rio Oil Finance Long-Term Focus and Low Expenses Trust. We invest with a three- to five-year investment horizon, which ▪ The portfolio’s overweight to the Industrial sub-sector (27% has historically resulted in low turnover relative to our peers. versus 14% for the Barclays U.S. Agg) and underweight to We manage Funds that maintain low expense ratios. U.S. Treasuries (9% versus 36% for the Barclays U.S. Agg) detracted from relative returns. ▪ Risks: The Fund is subject to market risk, meaning holdings in Corporate security selection was slightly negative as a the Fund may decline in value for extended periods due to the number of industrial issuers performed poorly. financial prospects of individual companies or due to general ▪ The portfolio’s shorter relative duration (approximately 72% market and economic conditions. The Fund also invests in of the Barclays U.S. Agg’s duration) added to relative individual bonds whose yields and market values fluctuate, so returns. that an investment may be worth more or less than its original cost. Debt securities are subject to interest rate risk, credit risk, Unless otherwise noted, figures cited in this section denote portfolio and prepayment and call risk, all of which could have adverse positioning at the beginning of the period. effects on the value of the Fund. A low interest rate environment creates an elevated risk of future negative returns. Financial intermediaries may restrict their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such securities. Please read the prospectus and summary prospectus for specific details regarding the Fund’s risk profile.

D ODGE &COX B ALANCED F UND ▪ PAGE 5 GROWTH OF $10,000 OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2005

$30,000 Returns represent past performance and do not guarantee future Dodge & Cox Balanced Fund $17,493 S&P 500 Index $20,251 results. Investment return and share price will fluctuate with 20,000 Combined Barclays Index(a) $18,747 U.S. Agg $15,562 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is updated and published monthly. Visit the Fund’s website at 10,000 dodgeandcox.com or call 800-621-3979 for current performance figures. The Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any 5,000 income taxes payable by shareholders on these distributions or on 12/31/05 12/31/07 12/31/0912/31/11 12/31/13 12/31/15 Fund share redemptions. Index returns include dividends and/or interest income but, unlike Fund returns, do not reflect fees or AVERAGE ANNUAL TOTAL RETURN expenses. FOR PERIODS ENDED DECEMBER 31, 2015 Standard & Poor’s, Standard & Poor’s 500, and S&P 500® are 1 Year 5 Years 10 Years 20 Years trademarks of McGraw Hill Financial. Barclays® is a trademark of Dodge & Cox Balanced Fund –2.88% 9.58% 5.76% 8.78% Barclays Bank PLC. Combined Index(a) 1.31 8.95 6.49 7.36 S&P 500 Index 1.41 12.58 7.31 8.19 (a) The Combined Index reflects an unmanaged portfolio (rebalanced Barclays U.S. Aggregate Bond Index monthly) of 60% of the S&P 500 Index, which is a market capitalization- (Barclays U.S. Agg) 0.57 3.26 4.52 5.34 weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market, and 40% of the Barclays U.S. Aggregate Bond Index (Barclays U.S. Agg), which is a widely recognized, unmanaged index of U.S. dollar-denominated, investment-grade, taxable fixed income securities. The Fund may, however, invest up to 75% of its total assets in equity securities.

FUND EXPENSE EXAMPLE As 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 understand these 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 The first line of the table below provides information about actual account values and expenses based on the Fund’s actual returns. You may use the information in this line, together with your account balance, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first 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 the Fund’s actual return). The amount under the heading “Expenses Paid During Period” shows the hypothetical expenses your account would have incurred under this scenario. You can compare this figure with the 5% hypothetical examples that appear in shareholder reports of other mutual funds.

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 960.70 $2.57 Based 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 the one-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, sales loads) or universal account maintenance fees (e.g., small account fees).

PAGE 6 ▪ D ODGE &COX B ALANCED F UND FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $94.42 Common Total Net Assets (billions) $14.3 Debt Stocks: 65.9% Securities: 28.2% Expense Ratio 0.53% Portfolio Turnover Rate 20% 30-Day SEC Yield(a) 2.17% Fund Inception 1931 Net Cash No sales charges or distribution fees & Other:(f) 1.6% Investment Manager: Dodge & Cox, San Francisco. Managed by Preferred Stocks: 4.3% the Investment Policy Committee, whose nine members’ average tenure at Dodge & Cox is 27 years, and by the Fixed Income Investment Policy Committee, whose eight members’ average tenure is 20 years.

EQUITY PORTFOLIO (70.2%) Fund FIXED INCOME PORTFOLIO (28.2%) Fund Number of Common Stocks 63 Number of Credit Issuers 60 Number of Preferred Stocks 5 Effective Duration (years) 4.0 Median Market Capitalization (billions)(b) $38 SECTOR DIVERSIFICATION (%) Price-to-Earnings Ratio(b)(c) 13.8x (g) Foreign Securities not in the S&P 500(d) 6.2% U.S. Treasury 2.2 Government-Related 2.0 SECTOR DIVERSIFICATION (%) Mortgage-Related(h) 9.5 (FIVE LARGEST) Common Preferred Total Corporate 13.2 Financials 17.9 3.9 21.8 Asset-Backed 1.3 Information Technology 16.5 — 16.5 (i) Health Care 11.1 — 11.1 CREDIT QUALITY (%) Consumer Discretionary 10.1 0.4 10.5 U.S. Treasury/Agency/GSE(g) 11.7 Energy 4.9 — 4.9 Aaa 0.9 Aa 0.8 TEN LARGEST EQUITY A 1.3 SECURITIES (%)(e) Common Preferred Total Baa 10.1 Wells Fargo & Co. 2.8 1.7 4.5 Ba 2.8 JPMorgan Chase & Co. 1.3 1.8 3.1 B 0.6 Microsoft Corp. 2.7 — 2.7 Capital One Financial Corp. 2.6 — 2.6 FIVE LARGEST CREDIT ISSUERS (%)(e) Charles Schwab Corp. 2.6 — 2.6 Telecom Italia SPA 0.6 Time Warner Cable, Inc. 2.6 — 2.6 Verizon Communications, Inc. 0.6 Alphabet, Inc. 2.3 — 2.3 State of Illinois GO 0.5 Bank of America Corp. 2.3 — 2.3 State of California GO 0.5 Novartis AG (Switzerland) 2.0 — 2.0 Kinder Morgan, Inc. 0.5 EMC Corp. 1.8 — 1.8

(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) 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 Barclaysin 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 not apply to the stability or safety of the Fund or its shares.

D ODGE &COX B ALANCED F UND ▪ PAGE 7 PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS: 65.9%

SHARES VALUE SHARES VALUE CONSUMER DISCRETIONARY: 10.1% Roche Holding AG ADR(b) (Switzerland) 5,980,000 $ 206,130,600 AUTOMOBILES & COMPONENTS: 0.3% Sanofi ADR(b) (France) 5,515,165 235,221,787 Harley-Davidson, Inc. 860,000 $ 39,035,400 Thermo Fisher Scientific, Inc. 24,500 3,475,325

CONSUMER DURABLES & APPAREL: 0.4% 907,884,107 Coach, Inc. 1,655,036 54,169,328 1,585,999,552 INDUSTRIALS: 2.9% MEDIA: 7.9% Comcast Corp., Class A 4,564,774 257,590,197 CAPITAL GOODS: 0.6% Danaher Corp. 826,400 76,756,032 DISH Network Corp., Class A(a) 1,165,032 66,616,530 (a) News Corp., Class A 688,050 9,192,348 NOW, Inc. 340,950 5,393,829 Time Warner Cable, Inc. 1,982,383 367,910,461 82,149,861 Time Warner, Inc. 3,817,066 246,849,658 COMMERCIAL & PROFESSIONAL SERVICES: 1.0% Twenty-First Century Fox, Inc., Class A 4,882,200 132,600,552 ADT Corp. 2,017,717 66,544,307 Twenty-First Century Fox, Inc., Class B 1,600,000 43,568,000 Tyco International PLC(b) (Ireland) 2,365,434 75,433,690 1,124,327,746 141,977,997 RETAILING: 1.5% TRANSPORTATION: 1.3% Liberty Interactive Corp. QVC Group, FedEx Corp. 1,242,254 185,083,423 Series A(a) 2,284,650 62,416,638 409,211,281 Target Corp. 985,400 71,549,894 INFORMATION TECHNOLOGY: 16.5% The Priceline Group, Inc.(a) 67,000 85,421,650 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 0.6% 219,388,182 Maxim Integrated Products, Inc. 2,377,091 90,329,458

1,436,920,656 SOFTWARE & SERVICES: 7.3% CONSUMER STAPLES: 1.4% Alphabet, Inc., Class A(a) 116,700 90,793,767 FOOD & STAPLES RETAILING: 1.4% Alphabet, Inc., Class C(a) 326,895 248,074,078 Wal-Mart Stores, Inc. 3,201,900 196,276,470 Cadence Design Systems, Inc.(a) 1,170,700 24,362,267 eBay, Inc.(a) 320,592 8,809,868 ENERGY: 4.9% Microsoft Corp. 6,901,700 382,906,316 Apache Corp. 2,710,017 120,514,456 Symantec Corp. 9,214,000 193,494,000 Baker Hughes, Inc. 3,547,579 163,720,771 Synopsys, Inc.(a) 1,614,700 73,646,467 Concho Resources, Inc.(a) 560,900 52,085,174 (a) National Oilwell Varco, Inc. 2,210,000 74,012,900 VMware, Inc. 326,300 18,458,791 Schlumberger, Ltd.(b) (Curacao/United States) 3,674,021 256,262,964 1,040,545,554 Weatherford International PLC(a)(b) (Ireland) 4,250,000 35,657,500 TECHNOLOGY, HARDWARE & EQUIPMENT: 8.6% 702,253,765 Cisco Systems, Inc. 6,991,100 189,843,321 Corning, Inc. 5,761,700 105,323,876 FINANCIALS: 17.9% EMC Corp. 10,174,000 261,268,320 BANKS: 7.1% Hewlett Packard Enterprise Co. 15,984,712 242,967,622 Bank of America Corp. 19,257,100 324,096,993 HP, Inc. 14,934,712 176,826,990 BB&T Corp. 2,714,584 102,638,421 Juniper Networks, Inc. 620,645 17,129,802 JPMorgan Chase & Co. 2,929,900 193,461,297 NetApp, Inc. 3,826,491 101,516,806 Wells Fargo & Co. 7,408,506 402,726,386 TE Connectivity, Ltd.(b) (Switzerland) 2,080,536 134,423,431 1,022,923,097 1,229,300,168 DIVERSIFIED FINANCIALS: 9.3% American Express Co. 1,905,000 132,492,750 2,360,175,180 Bank of New York Mellon Corp. 5,702,600 235,061,172 MATERIALS: 0.6% Capital One Financial Corp. 5,169,959 373,167,641 Celanese Corp., Series A 1,330,960 89,613,537 Charles Schwab Corp. 11,232,900 369,899,397 Goldman Sachs Group, Inc. 1,182,000 213,031,860 TELECOMMUNICATION SERVICES: 0.5% Sprint Corp.(a) 18,742,971 67,849,555 1,323,652,820 INSURANCE: 1.5% TOTAL COMMON STOCKS AEGON NV(b) (Netherlands) 12,084,994 68,521,916 (Cost $6,846,235,719) $9,411,739,999 MetLife, Inc. 3,077,000 148,342,170 PREFERRED STOCKS: 4.3% 216,864,086 CONSUMER DISCRETIONARY: 0.4% 2,563,440,003 MEDIA: 0.4% HEALTH CARE: 11.1% NBCUniversal Enterprise, Inc. 5.25%(d) 53,210 56,402,600 HEALTH CARE EQUIPMENT & SERVICES: 4.7% Anthem, Inc. 260,980 36,391,051 FINANCIALS: 3.9% Cigna Corp. 1,361,216 199,186,737 BANKS: 3.9% Express Scripts Holding Co.(a) 2,599,568 227,228,239 Citigroup, Inc. 5.95% Medtronic PLC(b) (Ireland) 660,200 50,782,584 12/31/49 60,975 58,688,438 UnitedHealth Group, Inc. 1,398,562 164,526,834 7/29/49 5,175 5,063,738 JPMorgan Chase & Co. 6.10% 254,565 255,863,281 678,115,445 Wells Fargo & Co. 5.875% 227,645 239,596,362 PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 6.4% AstraZeneca PLC ADR(b) (United Kingdom) 1,270,100 43,119,895 559,211,819 Merck & Co., Inc. 2,583,175 136,443,304 TOTAL PREFERRED STOCKS Novartis AG ADR(b) (Switzerland) 3,294,900 283,493,196 (Cost $601,634,518) $ 615,614,419

PAGE 8 ▪ D ODGE &COX B ALANCED F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES: 28.2%

PAR VALUE VALUE PAR VALUE VALUE U.S. TREASURY: 2.2% MORTGAGE-RELATED: 9.5% U.S. Treasury Note/Bond FEDERAL AGENCY CMO & REMIC: 2.1% 0.50%, 3/31/17 $ 50,600,000 $ 50,368,758 Dept. of Veterans Affairs 0.875%, 1/15/18 148,000,000 147,343,768 Series 1995-1 1, 7.243%, 2/15/25 $ 395,926 $ 445,411 1.00%, 3/15/18 81,500,000 81,225,590 Series 1995-2C 3A, 8.793%, 6/15/25 179,364 217,524 1.625%, 7/31/19 13,315,000 13,363,839 Series 2002-1 2J, 6.50%, 8/15/31 10,723,089 12,247,566 1.625%, 11/30/20 23,000,000 22,869,659 Fannie Mae 315,171,614 Trust 2002-33 A1, 7.00%, 6/25/32 2,099,246 2,351,752 Trust 2009-66 ET, 6.00%, 5/25/39 4,796,186 5,160,867 GOVERNMENT-RELATED: 2.0% Trust 2009-30 AG, 6.50%, 5/25/39 3,302,517 3,576,862 FEDERAL AGENCY: 0.1% Small Business Admin. — 504 Program Trust 2001-T7 A1, 7.50%, 2/25/41 1,718,556 2,008,262 Series 1996-20L 1, 6.70%, 12/1/16 71,193 72,524 Trust 2001-T5 A3, 7.50%, 6/19/41 682,256 811,245 Series 1997-20F 1, 7.20%, 6/1/17 159,461 163,598 Trust 2001-T8 A1, 7.50%, 7/25/41 1,692,666 1,957,987 Series 1997-20I 1, 6.90%, 9/1/17 232,115 238,998 Trust 2001-T4 A1, 7.50%, 7/25/41 1,712,600 2,025,133 Series 1998-20D 1, 6.15%, 4/1/18 262,195 275,691 Trust 2001-W3 A, 6.808%, 9/25/41 1,160,859 1,302,228 Series 1998-20I 1, 6.00%, 9/1/18 239,941 251,340 Trust 2001-T10 A2, 7.50%, 12/25/41 1,489,256 1,778,734 Series 1999-20F 1, 6.80%, 6/1/19 261,313 271,606 Trust 2013-106 MA, 4.00%, 2/25/42 11,563,313 12,242,707 Series 2000-20D 1, 7.47%, 4/1/20 933,276 990,642 Trust 2002-W6 2A1, 6.321%, 6/25/42 1,718,690 2,001,011 Series 2000-20E 1, 8.03%, 5/1/20 198,626 212,663 Trust 2002-W8 A2, 7.00%, 6/25/42 2,234,030 2,545,373 Series 2000-20G 1, 7.39%, 7/1/20 418,605 442,963 Trust 2003-W2 1A1, 6.50%, 7/25/42 3,487,032 3,980,360 Series 2000-20I 1, 7.21%, 9/1/20 286,407 303,850 Trust 2003-W2 1A2, 7.00%, 7/25/42 1,341,223 1,557,434 Series 2001-20E 1, 6.34%, 5/1/21 916,069 994,336 Trust 2003-W4 4A, 7.028%, 10/25/42 1,803,821 2,070,685 Series 2001-20G 1, 6.625%, 7/1/21 804,090 873,338 Trust 2012-121 NB, 7.00%, 11/25/42 3,164,256 3,648,919 Series 2003-20J 1, 4.92%, 10/1/23 3,385,536 3,641,847 Trust 2013-98 FA, 0.972%, 9/25/43 10,693,645 10,818,562 Series 2007-20F 1, 5.71%, 6/1/27 3,874,995 4,332,510 Trust 2013-92 FA, 0.972%, 9/25/43 46,687,279 46,951,706 Trust 2004-T1 1A2, 6.50%, 1/25/44 2,211,506 2,469,037 13,065,906 Trust 2004-W2 5A, 7.50%, 3/25/44 4,324,224 4,930,797 FOREIGN AGENCY: 0.6% Trust 2004-W8 3A, 7.50%, 6/25/44 723,254 841,494 Corp. Nacional del Cobre de Chile(b) (Chile) 11,100,000 10,452,604 Trust 2005-W4 1A2, 6.50%, 8/25/45 6,459,234 7,647,394 4.50%, 9/16/25(d) Trust 2009-11 MP, 7.00%, 3/25/49 6,673,247 7,588,629 Petroleo Brasileiro SA(b) (Brazil) Freddie Mac 4.375%, 5/20/23 29,800,000 19,668,000 Series 1078 GZ, 6.50%, 5/15/21 134,068 138,901 6.25%, 3/17/24 4,225,000 3,031,437 Series 16 PK, 7.00%, 8/25/23 2,444,672 2,705,203 Petroleos Mexicanos(b) (Mexico) Series T-48 1A4, 5.538%, 7/25/33 31,624,028 34,855,962 4.25%, 1/15/25(d) 22,685,000 19,849,375 Series 314 F2, 0.941%, 9/15/43 22,307,420 22,317,611 6.625%, 6/15/35 9,425,000 8,423,594 Series T-51 1A, 6.50%, 9/25/43 214,076 249,417 6.375%, 1/23/45 17,125,000 14,552,277 Series T-59 1A1, 6.50%, 10/25/43 11,105,448 12,756,046 5.625%, 1/23/46(d) 16,675,000 12,759,710 Series 4281 BC, 4.786%, 12/15/43 76,760,905 82,819,605 88,736,997 299,020,424 LOCAL AUTHORITY: 1.2% FEDERAL AGENCY MORTGAGE PASS-THROUGH: 7.4% New Jersey Turnpike Authority RB Fannie Mae, 15 Year 7.414%, 1/1/40 3,350,000 4,757,837 3.50%, 12/1/29 11,970,331 12,545,691 7.102%, 1/1/41 12,436,000 17,092,785 4.00%, 2/1/27-5/1/27 73,221,983 77,654,673 State of California GO 4.50%, 1/1/25-1/1/27 19,067,881 20,499,531 7.50%, 4/1/34 13,470,000 18,795,634 6.00%, 7/1/16-3/1/22 2,681,738 2,764,039 7.55%, 4/1/39 16,525,000 24,002,728 6.50%, 9/1/16-11/1/18 2,289,141 2,336,331 7.30%, 10/1/39 13,730,000 19,216,371 7.00%, 11/1/18 151,009 153,966 7.625%, 3/1/40 8,790,000 12,800,613 7.50%, 12/1/16-8/1/17 166,511 168,910 State of Illinois GO Fannie Mae, 20 Year 5.365%, 3/1/17 37,215,000 38,596,793 4.00%, 11/1/30-12/1/34 197,825,165 211,580,702 5.665%, 3/1/18 26,160,000 27,699,516 4.50%, 1/1/31-5/1/32 61,706,443 67,109,133 5.10%, 6/1/33 11,565,000 10,936,442 Fannie Mae, 30 Year 173,898,719 4.50%, 1/1/39-2/1/45 75,323,091 81,860,896 SOVEREIGN: 0.1% 5.50%, 7/1/33-8/1/37 18,624,348 20,951,246 Spain Government International(b) (Spain) 6.00%, 9/1/36-8/1/37 24,376,674 27,807,279 4.00%, 3/6/18(d) 11,850,000 12,360,522 6.50%, 12/1/28-8/1/39 27,831,830 32,020,692 7.00%, 4/1/37-8/1/37 8,954,789 10,377,448 288,062,144 Fannie Mae, Hybrid ARM 2.00%, 1/1/35 3,146,535 3,276,777 2.246%, 12/1/34 2,396,886 2,495,717 2.266%, 9/1/34 1,643,186 1,751,991 2.272%, 1/1/35 1,596,759 1,690,113 2.319%, 8/1/35 1,820,017 1,911,963 2.436%, 8/1/38 4,655,366 4,943,460 2.525%, 11/1/43 8,927,599 9,165,918 2.707%, 4/1/44 20,208,801 20,876,530

See accompanying Notes to Financial Statements D ODGE &COX B ALANCED F UND ▪ PAGE 9 PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE 2.817%, 12/1/44 $19,774,634 $ 20,236,265 OTHER: 0.5% 2.837%, 11/1/44 33,113,696 33,900,264 Rio Oil Finance Trust(b) (Brazil) 2.843%, 12/1/45 31,025,839 31,690,646 9.25%, 7/6/24(d) $49,425,000 $ 36,574,500 2.947%, 9/1/45 7,215,008 7,395,642 9.75%, 1/6/27(d) 42,925,000 31,549,875 3.284%, 6/1/41 17,461,196 18,333,013 68,124,375 3.569%, 12/1/40 6,752,555 7,043,894 STUDENT LOAN: 0.2% 3.757%, 11/1/40 2,781,454 2,909,755 SLM Student Loan Trust (Private Loans) 4.27%, 7/1/39 3,194,145 3,406,023 Series 2014-A A2A, 2.59%, 1/15/26(d) 5,250,000 5,223,136 5.566%, 5/1/37 1,781,996 1,890,037 Series 2012-B A2, 3.48%, 10/15/30(d) 9,358,036 9,486,544 6.35%, 9/1/36 422,015 445,578 Series 2012-E A2A, 2.09%, 6/15/45(d) 13,775,000 13,661,272 Fannie Mae, Multifamily DUS Series 2012-C A2, 3.31%, 10/15/46(d) 10,100,000 10,227,070 Trust 2014-M9 ASQ2, 1.462%, 4/25/17 6,492,485 6,500,988 38,598,022 Freddie Mac, Hybrid ARM 2.216%, 4/1/37 2,849,537 3,010,044 190,808,977 2.447%, 10/1/38 2,517,714 2,659,540 CORPORATE: 13.2% 2.535%, 9/1/37 1,435,803 1,526,716 FINANCIALS: 4.2% 2.558%, 10/1/35 3,206,679 3,387,835 Bank of America Corp. 2.623%, 8/1/42 13,917,232 14,321,510 7.625%, 6/1/19 6,800,000 7,868,810 2.678%, 5/1/34 3,169,406 3,387,139 5.625%, 7/1/20 5,030,000 5,589,210 2.69%, 2/1/38 7,150,632 7,602,865 4.20%, 8/26/24 5,825,000 5,833,458 2.784%, 10/1/45 16,972,680 17,287,286 6.625%, 5/23/36(c) 37,275,000 42,454,249 2.939%, 5/1/44 3,082,081 3,164,477 Barclays PLC(b) (United Kingdom) 2.952%, 6/1/44 5,691,194 5,837,153 4.375%, 9/11/24 23,275,000 22,758,784 (b) 2.97%, 5/1/44 23,078,551 23,727,620 BNP Paribas SA (France) 3.141%, 6/1/44 8,211,836 8,459,960 4.25%, 10/15/24 31,175,000 30,899,756 (d) 3.609%, 10/1/41 2,135,177 2,222,316 4.375%, 9/28/25 10,100,000 9,892,778 5.857%, 7/1/38 552,655 589,911 Boston Properties, Inc. 6.103%, 1/1/38 703,454 746,787 3.85%, 2/1/23 7,800,000 7,963,215 Freddie Mac Gold, 15 Year 3.125%, 9/1/23 17,550,000 17,095,543 3.80%, 2/1/24 11,175,000 11,368,205 4.00%, 3/1/25-11/1/26 48,627,233 51,359,897 Capital One Financial Corp. 4.50%, 9/1/24-9/1/26 13,296,565 14,246,687 3.50%, 6/15/23 42,579,000 42,342,857 6.00%, 2/1/18 325,603 332,847 4.20%, 10/29/25 6,175,000 6,100,066 6.50%, 5/1/16-9/1/18 1,022,622 1,041,584 Cigna Corp. Freddie Mac Gold, 20 Year 7.65%, 3/1/23 9,705,000 11,771,777 4.50%, 4/1/31-6/1/31 14,328,880 15,560,529 7.875%, 5/15/27 21,888,000 28,780,706 6.50%, 10/1/26 5,265,986 5,996,930 8.30%, 1/15/33 8,845,000 11,617,775 Freddie Mac Gold, 30 Year Citigroup, Inc. 4.50%, 9/1/41-1/1/44 85,366,522 92,170,526 6.692%, 10/30/40(c) 43,080,925 45,131,577 5.50%, 12/1/37 1,135,012 1,273,791 Equity Residential 6.00%, 2/1/39 2,948,130 3,357,630 4.625%, 12/15/21 14,054,000 15,259,552 6.50%, 12/1/32-4/1/33 7,928,552 9,202,337 3.00%, 4/15/23 14,775,000 14,514,074 7.00%, 11/1/37-9/1/38 7,339,801 8,428,452 Health Net, Inc. 7.47%, 3/17/23 115,396 126,666 6.375%, 6/1/17 13,275,000 13,806,000 7.75%, 7/25/21 328,322 354,645 HSBC Holdings PLC(b) (United Kingdom) Ginnie Mae, 30 Year 5.10%, 4/5/21 3,625,000 4,030,271 7.50%, 11/15/24-10/15/25 921,752 1,043,115 6.50%, 5/2/36 23,190,000 27,661,867 7.97%, 4/15/20-1/15/21 412,946 443,203 6.50%, 9/15/37 15,315,000 18,375,075 1,050,565,109 JPMorgan Chase & Co. 8.75%, 9/1/30(c) 23,042,000 32,999,047 1,349,585,533 Lloyds Banking Group PLC(b) ASSET-BACKED: 1.3% (United Kingdom) AUTO LOAN: 0.3% 4.50%, 11/4/24 19,575,000 19,873,480 Ford Credit Auto Owner Trust Navient Corp. Series 2014-C A3, 1.06%, 5/15/19 23,000,000 22,944,850 6.00%, 1/25/17 14,285,000 14,642,125 Series 2015-1 A, 2.12%, 7/15/26(d) 16,450,000 16,245,696 4.625%, 9/25/17 9,550,000 9,406,750 39,190,546 8.45%, 6/15/18 15,755,000 16,582,137 CREDIT CARD: 0.3% Royal Bank of Scotland Group PLC(b) American Express Master Trust (United Kingdom) Series 2014-3 A, 1.49%, 4/15/20 16,025,000 16,029,651 6.125%, 12/15/22 48,416,000 52,710,935 Chase Issuance Trust 6.00%, 12/19/23 3,250,000 3,500,270 Series 2013-A8 A8, 1.01%, 10/15/18 14,000,000 13,987,047 Unum Group Series 2014-A1 A1, 1.15%, 1/15/19 8,400,000 8,393,246 7.19%, 2/1/28 8,305,000 9,754,048 Series 2014-A6 A6, 1.26%, 7/15/19 6,500,000 6,486,090 7.25%, 3/15/28 2,030,000 2,361,507 6.75%, 12/15/28 11,368,000 13,341,587 44,896,034 Wells Fargo & Co. 4.30%, 7/22/27 20,710,000 21,158,268 597,445,759

PAGE 10 ▪ D ODGE &COX B ALANCED F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE INDUSTRIALS: 8.6% Macy’s, Inc. Allergan PLC(b) (Ireland) 6.90%, 1/15/32 $ 49,699,000 $ 54,850,351 3.00%, 3/12/20 $ 19,550,000 $ 19,534,419 6.70%, 7/15/34 2,890,000 3,002,626 3.45%, 3/15/22 11,130,000 11,147,775 Naspers, Ltd. (b) (South Africa) 3.80%, 3/15/25 10,870,000 10,815,487 6.00%, 7/18/20(d) 21,900,000 23,300,067 AT&T, Inc. 5.50%, 7/21/25(d) 17,575,000 16,907,712 3.40%, 5/15/25 6,725,000 6,464,171 Norfolk Southern Corp. 6.55%, 2/15/39 7,675,000 8,621,028 9.75%, 6/15/20 7,224,000 9,220,403 5.35%, 9/1/40 27,575,000 27,235,552 RELX PLC(b) (United Kingdom) 4.75%, 5/15/46 7,000,000 6,407,968 8.625%, 1/15/19 4,901,000 5,716,316 Becton, Dickinson and Co. 3.125%, 10/15/22 22,133,000 21,508,274 3.734%, 12/15/24 5,725,000 5,777,544 Sprint Corp. BHP Billiton, Ltd.(b) (Australia) 6.00%, 12/1/16 24,367,000 24,245,165 6.75%, 10/19/75(c)(d) 19,800,000 19,107,000 Teck Resources, Ltd.(b) (Canada) Burlington Northern Santa Fe LLC(f) 5.20%, 3/1/42 17,773,000 7,464,660 8.251%, 1/15/21 664,677 748,300 Telecom Italia SPA(b) (Italy) 3.85%, 9/1/23 2,150,000 2,234,633 6.999%, 6/4/18 17,100,000 18,468,000 5.72%, 1/15/24 9,037,276 9,948,974 7.175%, 6/18/19 27,527,000 30,349,068 5.342%, 4/1/24 9,407,801 10,166,540 5.303%, 5/30/24(d) 11,500,000 11,356,250 5.629%, 4/1/24 14,244,488 15,581,690 7.20%, 7/18/36 11,596,000 11,711,960 Cemex SAB de CV(b) (Mexico) 7.721%, 6/4/38 7,062,000 7,362,135 6.50%, 12/10/19(d) 22,500,000 21,712,500 The Kraft Heinz Co. 6.00%, 4/1/24(d) 10,575,000 9,068,062 3.95%, 7/15/25(d) 4,000,000 4,038,724 5.70%, 1/11/25(d) 22,475,000 18,794,719 Time Warner Cable, Inc. 6.125%, 5/5/25(d) 8,100,000 6,925,500 8.75%, 2/14/19 13,840,000 16,059,202 Charter Communications, Inc. 8.25%, 4/1/19 33,815,000 38,861,483 4.908%, 7/23/25(d) 11,600,000 11,588,597 6.55%, 5/1/37 11,000,000 11,125,840 6.484%, 10/23/45(d) 8,150,000 8,152,893 6.75%, 6/15/39 2,110,000 2,117,503 Cox Enterprises, Inc. Time Warner, Inc. 3.25%, 12/15/22(d) 15,740,000 14,307,550 7.625%, 4/15/31 31,348,000 38,787,727 2.95%, 6/30/23(d) 37,166,000 32,742,651 7.70%, 5/1/32 14,374,000 17,944,415 3.85%, 2/1/25(d) 19,625,000 17,993,868 TransCanada Corp.(b) (Canada) CRH PLC(b) (Ireland) 5.625%, 5/20/75(c) 20,570,000 19,018,693 3.875%, 5/18/25(d) 17,100,000 16,991,740 Twenty-First Century Fox, Inc. CSX Corp. 6.15%, 3/1/37 15,000,000 16,713,435 9.75%, 6/15/20 5,231,000 6,646,169 6.65%, 11/15/37 1,638,000 1,903,456 Dillard’s, Inc. Union Pacific Corp. 7.13%, 8/1/18 3,606,000 3,968,681 5.866%, 7/2/30 26,119,175 29,814,027 7.875%, 1/1/23 8,660,000 10,205,273 6.176%, 1/2/31 9,262,594 10,532,209 7.75%, 7/15/26 50,000 57,831 Verizon Communications, Inc. 7.75%, 5/15/27 540,000 628,421 4.15%, 3/15/24 12,750,000 13,110,838 7.00%, 12/1/28 15,135,000 16,775,271 4.272%, 1/15/36 11,847,000 10,693,173 Dow Chemical Co. 6.55%, 9/15/43 46,476,000 55,175,238 8.55%, 5/15/19 12,775,000 15,061,342 Vulcan Materials Co. 7.375%, 11/1/29 17,000,000 21,006,764 7.50%, 6/15/21 20,340,000 23,696,100 9.40%, 5/15/39 9,677,000 13,906,023 Xerox Corp. FedEx Corp. 6.35%, 5/15/18 20,585,000 22,009,708 8.00%, 1/15/19 6,965,000 8,108,848 4.50%, 5/15/21 19,161,000 19,347,973 6.72%, 7/15/23 5,156,509 5,813,964 Zoetis, Inc. Ford Motor Credit Co. LLC(f) 3.45%, 11/13/20 8,960,000 8,970,743 5.75%, 2/1/21 12,700,000 14,036,865 4.50%, 11/13/25 7,985,000 8,097,365 5.875%, 8/2/21 11,350,000 12,657,270 1,225,239,642 4.25%, 9/20/22 9,593,000 9,814,790 UTILITIES: 0.4% 4.375%, 8/6/23 14,575,000 14,981,599 Dominion Resources, Inc. Hewlett Packard Enterprise Co. 5.75%, 10/1/54(c) 22,950,000 22,486,410 3.60%, 10/15/20(d) 33,600,000 33,680,640 Enel SPA(b) (Italy) Imperial Tobacco Group PLC(b) 6.80%, 9/15/37(d) 18,700,000 22,833,598 (United Kingdom) 6.00%, 10/7/39(d) 8,550,000 9,560,627 3.75%, 7/21/22(d) 10,475,000 10,518,126 4.25%, 7/21/25(d) 31,825,000 32,300,020 54,880,635 Kinder Morgan, Inc. 1,877,566,036 4.30%, 6/1/25 36,515,000 31,565,647 5.50%, 3/1/44 33,730,000 26,307,646 TOTAL DEBT SECURITIES 5.40%, 9/1/44 15,414,000 11,648,452 (Cost $3,929,370,365) $ 4,021,194,304

See accompanying Notes to Financial Statements D ODGE &COX B ALANCED F UND ▪ PAGE 11 PORTFOLIO OF INVESTMENTS December 31, 2015

(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, all such securities in total represented $586,566,526 or 4.1% of net assets. These securities have been deemed liquid by Dodge & Cox, investment manager, 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 generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes or in other limited circumstances, the Fund uses the country designation of an appropriate broad-based market index. In those cases, two countries are listed — the country of incorporation and the country 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 its subsidiaries.

ADR: American Depositary Receipt ARM: Adjustable Rate Mortgage CMO: Collateralized Mortgage Obligation DUS: Delegated Underwriting and Servicing GO: General Obligation RB: Revenue Bond REMIC: Real Estate Mortgage Investment Conduit

PAGE 12 ▪ D ODGE &COX B ALANCED F UND See accompanying Notes to Financial Statements STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended December 31, 2015 December 31, 2015 December 31, 2014 ASSETS: OPERATIONS: Investments, at value (cost $11,576,339,212) $14,247,647,332 Net investment income $ 307,788,487 $ 298,744,812 Cash held at broker 6,770,388 Net realized gain 492,597,968 399,919,057 Receivable for investments sold 5,801,740 Net change in unrealized Receivable for Fund shares sold 8,024,925 appreciation/depreciation (1,229,772,659) 567,009,703 Dividends and interest receivable 52,275,035 (429,386,204) 1,265,673,572 Prepaid expenses and other assets 93,831

14,320,613,251 DISTRIBUTIONS TO LIABILITIES: SHAREHOLDERS FROM: Payable to broker for variation margin 1,533,992 Net investment income (308,037,610) (298,877,158) Payable for investments purchased 5,288,661 Net realized gain (455,897,559) (359,115,663) Payable for Fund shares redeemed 37,488,385 Total distributions (763,935,169) (657,992,821) Management fees payable 6,113,609 Accrued expenses 859,561 FUND SHARE 51,284,208 TRANSACTIONS: Proceeds from sale of shares 1,416,791,531 1,944,425,723 NET ASSETS $14,269,329,043 Reinvestment of distributions 725,183,002 624,013,075 NET ASSETS CONSIST OF: Cost of shares redeemed (2,144,401,683) (2,114,967,089) Paid in capital $11,444,166,191 Undistributed net investment income 3,251,258 Net increase/(decrease) from Undistributed net realized gain 150,347,585 Fund share transactions (2,427,150) 453,471,709 Net unrealized appreciation 2,671,564,009 Total increase/(decrease) in $14,269,329,043 net assets (1,195,748,523) 1,061,152,460 Fund shares outstanding (par value $0.01 each, NET ASSETS: unlimited shares authorized) 151,122,480 Beginning of year 15,465,077,566 14,403,925,106 Net asset value per share $ 94.42 End of year (including undistributed net investment income of $3,251,258 and STATEMENT OF OPERATIONS $3,500,381, respectively) $14,269,329,043 $15,465,077,566 Year Ended December 31, 2015 INVESTMENT INCOME: SHARE INFORMATION: Dividends (net of foreign taxes of $3,724,034) $ 197,425,260 Shares sold 14,047,663 19,199,410 Interest 190,225,233 Distributions reinvested 7,539,830 6,142,973 387,650,493 Shares redeemed (21,376,698) (20,958,749) Net increase in shares outstanding 210,795 4,383,634 EXPENSES: Management fees 75,758,904 Custody and fund accounting fees 302,185 Transfer agent fees 1,780,717 Professional services 204,059 Shareholder reports 339,208 Registration fees 174,198 Trustees’ fees 237,500 Miscellaneous 1,065,235 79,862,006 NET INVESTMENT INCOME 307,788,487

REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) Investments 501,033,067 Treasury futures contracts (8,435,099) Net change in unrealized appreciation/depreciation Investments (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)

See accompanying Notes to Financial Statements D ODGE &COX B ALANCED F UND ▪ PAGE 13 NOTES TO FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT (“Valuation Policies”), subject to Board oversight. Dodge & Cox ACCOUNTING POLICIES has established a Pricing Committee that is comprised of Dodge & Cox Balanced Fund (the “Fund”) is one of the series representatives from Treasury, Legal, Compliance, and Operations. constituting the Dodge & Cox Funds (the “Trust” or the “Funds”). The Pricing Committee is responsible for implementing the The Trust is organized as a Delaware statutory trust and is Valuation Policies, including determining the fair value of registered under the Investment Company Act of 1940, as securities when market quotations or market-based valuations are amended, as an open-end management investment company. The not readily available or are deemed unreliable. The Pricing Fund commenced operations on June 26, 1931, and seeks regular Committee considers relevant indications of value that are income, conservation of principal, and an opportunity for long- reasonably available to it in determining the fair value assigned to a term growth of principal and income. Risk considerations and particular security, such as the value of similar financial investment strategies of the Fund are discussed in the Fund’s instruments, trading volumes, contractual restrictions on Prospectus. disposition, related corporate actions, and changes in economic The financial statements have been prepared in conformity conditions. In doing so, the Pricing Committee employs various with accounting principles generally accepted in the United States methods for calibrating fair valuation approaches, including a of America, which require the use of estimates and assumptions by regular review of key inputs and assumptions, back-testing, and management. Actual results may differ from those estimates. review of any related market activity. Significant accounting policies are as follows: Valuing securities through a fair value determination involves Security valuation The Fund’s net assets are valued as of the greater reliance on judgment than valuation of securities based on close of trading on the New York Stock Exchange (NYSE), readily available market quotations. In some instances, lack of generally 4:00 p.m. Eastern Time, each day that the NYSE is open information and uncertainty as to the significance of information for business. If the NYSE is closed due to inclement weather, may lead to a conclusion that a prior valuation is the best technology problems, or for any other reason on a day it would indication of a security’s value. When fair value pricing is normally be open for business, or the NYSE has an unscheduled employed, the prices of securities used by the Fund to calculate its early closing on a day it has opened for business, the Fund reserves NAV may differ from quoted or published prices for the same the right to calculate the Fund’s NAV as of the normally scheduled securities. close of regular trading on the NYSE for that day, provided that Security transactions, investment income, expenses, Dodge & Cox believes that it can obtain reliable market quotes or and distributions Security transactions are recorded on the trade valuations. Portfolio securities and other financial instruments for date. Realized gains and losses on securities sold are determined on which market quotes are readily available are valued at market the basis of identified cost. value. Listed securities are generally valued using the official quoted Dividend income and corporate action transactions are close price or the last sale on the exchange that is determined to be recorded on the ex-dividend date, or when the Fund first learns of the primary market for the security. the dividend/corporate action if the ex-dividend date has passed. Debt securities (including certain preferred stocks) and non- Withholding taxes on foreign dividends have been provided for in exchange traded derivatives are valued based on prices received accordance with the Fund’s understanding of the applicable from independent pricing services which utilize both country’s tax rules and rates. Non-cash dividends included in dealer-supplied valuations and pricing models. Pricing models may dividend income, if any, are recorded at the fair market value of consider quoted prices for similar securities, interest rates, the securities received. Dividends characterized as return of capital prepayment speeds, and credit risk. Exchange-traded derivatives are for U.S. tax purposes are recorded as a reduction of cost of valued at the settlement price determined by the relevant investments and/or realized gain. exchange. Security values are not discounted based on the size of Interest income is recorded on the accrual basis. Interest the Fund’s position. Short-term securities less than 60 days to income includes coupon interest, amortization of premium and maturity may be valued at amortized cost if amortized cost accretion of discount on debt securities, and gain/loss on approximates current value. Mutual funds are valued at their paydowns. The ability of the issuers of the debt securities held by respective net asset values. All securities held by the Fund are the Fund to meet their obligations may be affected by economic denominated in U.S. dollars. developments in a specific industry, state, or region. Debt If market quotations are not readily available or if a security’s obligations may be placed on non-accrual status and related value is believed to have materially changed after the close of the interest income may be reduced by ceasing current accruals and security’s primary market but before the close of trading on the writing off interest receivables when the collection of all or a NYSE, the security is valued at fair value as determined in good portion of interest has become doubtful. A debt obligation is faith by or under the direction of the Fund’s Board of Trustees. The removed from non-accrual status when the issuer resumes interest Board of Trustees has appointed Dodge & Cox, the Fund’s payments or when collectibility of interest is reasonably assured. investment manager, to make fair value determinations in Expenses are recorded on the accrual basis. Some expenses of accordance with the Dodge & Cox Funds Valuation Policies the Trust can be directly attributed to a specific series. Expenses

PAGE 14 ▪ D ODGE &COX B ALANCED F UND NOTES TO FINANCIAL STATEMENTS which cannot be directly attributed are allocated among the Funds NOTE 2—VALUATION MEASUREMENTS in the Trust based on relative net assets or other expense Various inputs are used in determining the value of the Fund’s methodologies determined by the nature of the expense. investments. These inputs are summarized in the three broad levels Distributions to shareholders are recorded on the ex-dividend listed below. date. ▪ Level 1: Quoted prices in active markets for identical securities Repurchase agreements The Fund enters into repurchase ▪ Level 2: Other significant observable inputs (including quoted agreements, secured by U.S. government or agency securities, prices for similar securities, market indices, interest rates, credit which involve the purchase of securities from a counterparty with risk, etc.) a simultaneous commitment to resell the securities at an agreed- ▪ Level 3: Significant unobservable inputs (including Fund upon date and price. It is the Fund’s policy that its custodian take management’s assumptions in determining the fair value of possession of the underlying collateral securities, the fair value of investments) which exceeds the principal amount of the repurchase transaction, The inputs or methodology used for valuing securities are not including accrued interest, at all times. In the event of default by necessarily an indication of the risk associated with investing in the counterparty, the Fund has the contractual right to liquidate those securities. the collateral securities and to apply the proceeds in satisfaction of The following is a summary of the inputs used to value the the obligation. Fund’s holdings at December 31, 2015: Futures Contracts Futures contracts involve an obligation to LEVEL 2 purchase or sell (depending on whether the Fund has entered a long LEVEL 1 (Other Significant or short futures contract, respectively) an asset at a future date, at a Classification(a) (Quoted Prices) Observable Inputs) price set at the time of the contract. Upon entering into a futures Securities contract, the Fund is required to deposit an amount of cash or liquid Common Stocks(b) $9,411,739,999 — assets (referred to as initial margin) in a segregated account with the Preferred Stocks — 615,614,419 Debt Securities clearing broker. Subsequent payments (referred to as variation U.S. Treasury — 315,171,614 margin) to and from the clearing broker are made on a daily basis Government-Related — 288,062,144 based on changes in the market value of futures contracts. Futures Mortgage-Related — 1,349,585,533 contracts are traded publiclyand theirmarket valuechanges daily. Asset-Backed — 190,808,977 Changes in the market value of open futures contracts are recorded as Corporate — 1,877,566,036 Short-term Investments unrealized appreciation or depreciation in the Statement of Money Market Fund 14,374,610 — Operations. Realized gains and losses on futures contracts are Repurchase Agreement — 184,724,000 recorded in the Statement of Operations at the closing or expiration Total Securities $9,426,114,609 $4,821,532,723 of the contracts. Cash deposited with a broker as initial margin is Other Financial Instruments(c) recorded on the Statement of Assets and Liabilities. A receivable Treasury Futures Contracts and/or payable to brokers for daily variation margin is also recorded Appreciation $ 781,542 $ — on the Statement of Assets and Liabilities. Depreciation (525,653) — Investments in futures contracts may include certain risks, which may be different from, and potentially greater than, those of (a) U.S. Treasury securities were transferred from Level 1 to Level 2 during the year. There were no Level 3 securities at December 31, 2015 and 2014, and the underlying securities. To the extent the Fund uses futures, it is there were no transfers to Level 3 during the year. exposed to additional volatility and potential losses resulting from (b) All common stocks held in the Fund are Level 1 securities. For a detailed leverage. break-out of common stocks by major industry classification, please refer to the Portfolio of Investments. The Fund has maintained short Treasury futures contracts to (c) Represents unrealized appreciation/(depreciation). assist with the management of the portfolio’s interest rate exposure. During the year ended December 31, 2015, these NOTE 3—RELATED PARTY TRANSACTIONS Treasury futures contracts had notional values ranging from 1% to Management fees Under a written agreement approved by a 3% of net assets. unanimous vote of the Board of Trustees, the Fund pays an annual Indemnification Under the Trust’s organizational documents, management fee of 0.50% of the Fund’s average daily net assets to its officers and trustees are indemnified against certain liabilities Dodge & Cox, investment manager of the Fund. arising out of the performance of their duties to the Trust. In Fund officers and trustees All officers and two of the addition, in the normal course of business the Trust enters into trustees of the Trust are officers or employees of Dodge & Cox. contracts that provide general indemnities to other parties. The The Trust pays a fee only to those trustees who are not affiliated Trust’s maximum exposure under these arrangements is unknown as with Dodge & Cox. this would involve future claims that may be made against the Trust Cross trades Cross trading is the buying or selling of that have not yet occurred. portfolio securities between funds to which Dodge & Cox serves as investment manager. At its regularly scheduled quarterly meetings,

D ODGE &COX B ALANCED F UND ▪ PAGE 15 NOTES TO FINANCIAL STATEMENTS the Board of Trustees reviews such transactions as of the most NOTE 5—LOAN FACILITIES recent calendar quarter for compliance with the requirements and Pursuant to an exemptive order issued by the Securities and restrictions set forth by Rule 17a-7 under the Investment Exchange Commission (SEC), the Fund may participate in an Company Act of 1940. During the year ending interfund lending facility (Facility). The Facility allows the Fund December 31, 2015, the Fund executed cross trades with the to borrow money from or loan money to the Funds. Loans under Dodge & Cox Income Fund pursuant to Rule 17a-7 under the the Facility are made for temporary or emergency purposes, such as Investment Company Act of 1940. to fund shareholder redemption requests. Interest on borrowings is the average of the current repurchase agreement rate and the bank NOTE 4—INCOME TAX INFORMATION AND loan rate. There was no activity in the Facility during the year. DISTRIBUTIONS TO SHAREHOLDERS All Funds in the Trust participate in a $500 million A provision for federal income taxes is not required since the Fund committed credit facility (Line of Credit) with State Street Bank intends to continue to qualify as a regulated investment company and Trust Company, to be utilized for temporary or emergency under Subchapter M of the Internal Revenue Code and distribute purposes to fund shareholder redemptions or for other short-term all of its taxable income to shareholders. Distributions are liquidity purposes. The maximum amount available to the Fund is determined in accordance with income tax regulations, and such $250 million. Each Fund pays an annual commitment fee on its amounts may differ from net investment income and realized gains pro-rata portion of the Line of Credit. For the year ended for financial reporting purposes. Financial reporting records are December 31, 2015, the Fund’s commitment fee amounted to adjusted for permanent book to tax differences at year end to reflect $46,840 and is reflected as a Miscellaneous Expense in the tax character. Statement of Operations. Interest on borrowings is charged at the Book to tax differences are primarily due to differing treatments prevailing rate. There were no borrowings on the Line of Credit of wash sales, net short-term realized gain (loss), and Treasury futures during the year. contracts. At December 31, 2015, the cost of investments for federal income tax purposes was $11,577,698,098. NOTE 6—PURCHASES AND SALES OF INVESTMENTS Distributions during the years noted below were characterized as For the year ended December 31, 2015, purchases and sales of follows for federal income tax purposes: securities, other than short-term securities and U.S. government securities, aggregated $2,404,105,515 and $2,555,199,624, respectively. Year Ended Year Ended December 31, 2015 December 31, 2014 For the year ended December 31, 2015, purchases and sales of U.S. Ordinary income $311,803,137 $357,296,853 government securities aggregated $592,405,701 and $862,581,661, ($2.085 per share) ($2.417 per share) respectively. Long-term capital gain $452,132,032 $300,695,968 ($3.049 per share) ($2.020 per share) NOTE 7—SUBSEQUENT EVENTS Fund management has determined that no material events or At December 31, 2015, the tax basis components of transactions occurred subsequent to December 31, 2015, and distributable earnings were as follows: through the date of the Fund’s financial statements issuance, which require additional disclosure in the Fund’s financial statements. Unrealized appreciation $3,115,795,334 Unrealized depreciation (445,846,100) Net unrealized appreciation 2,669,949,234 Undistributed ordinary income 3,197,590 Undistributed long-term capital gain 152,016,028

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

PAGE 16 ▪ D ODGE &COX B ALANCED F UND 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 $70.22 Income from investment operations: Net investment income 2.06 2.03 1.66 1.65 1.62 Net 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 $12,220 Ratio 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

D ODGE &COX B ALANCED F UND ▪ PAGE 17 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 of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dodge & Cox Balanced Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) 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 in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

PAGE 18 ▪ D ODGE &COX B ALANCED F UND SPECIAL 2015 TAX INFORMATION other things, Dodge & Cox’s services to the Funds; how Dodge & (unaudited) Cox Funds’ fees compare to fees of peer group funds; the different The following information is provided pursuant to provisions of fees, services, costs, and risks associated with other accounts the Internal Revenue Code: managed by Dodge & Cox as compared to the Dodge & Cox The Fund designates $197,654,566 of its distributions paid to Funds; and the ways in which the Funds realize economies of scale. shareholders in 2015 as qualified dividends (treated for federal Throughout the process of reviewing the services provided by income tax purposes in the hands of shareholders as taxable at a Dodge & Cox and preparing for the meeting, the Independent maximum rate of 20%). Trustees found Dodge & Cox to be open, forthright, detailed, and For shareholders that are corporations, the Fund designates very helpful in answering questions about all issues. The Board 50% of its ordinary dividends paid to shareholders in 2015 as received copies of the Agreements and a memorandum from the dividends from domestic corporations eligible for the corporate independent legal counsel to the Independent Trustees discussing dividends received deduction, provided that the shareholder the factors generally regarded as appropriate to consider in otherwise satisfies applicable requirements to claim that deduction. evaluating advisory arrangements. The Trust’s Contract Review Committee, consisting solely of Independent Trustees, met with BOARD APPROVAL OF FUNDS’ INVESTMENT the independent legal counsel on November 11, 2015, and again MANAGEMENT AGREEMENTS AND MANAGEMENT FEES on December 16, 2015, to discuss whether to renew the (unaudited) Agreements. The Board, including the Independent Trustees, The Board of Trustees is responsible for overseeing the subsequently concluded that the existing Agreements are fair and performance of the Dodge & Cox Funds’ investment manager and reasonable and voted to approve the Agreements. In considering determining whether to continue the Investment Management the Agreements, the Board, including the Independent Trustees, Agreements between the Funds and Dodge & Cox each year (the did not identify any single factor or particular information as all- “Agreements”). At a meeting of the Board of Trustees of the Trust important or controlling. In reaching the decision to approve the held on December 16, 2015, the Trustees, by a unanimous vote Agreements, the Board considered several factors, discussed below, (including a separate vote of those Trustees who are not to be key factors and reached the conclusions described below. “interested persons” (as defined in the Investment Company Act of 1940) (the “Independent Trustees”)), approved the renewal of NATURE, QUALITY, AND EXTENT OF THE SERVICES the Agreements for an additional one-year term through The Board considered that Dodge & Cox provides a wide range of December 31, 2016 with respect to each Fund. During the course services to the Funds in addition to portfolio management and that of the year, the Board received a wide variety of materials relating the quality of these services has been excellent in all respects. The to the investment management and administrative services extensive nature of services provided by Dodge & Cox has been provided by Dodge & Cox and the performance of each of the documented in materials provided to the Board and in Funds. presentations made to the Board throughout the year. In particular, the Board considered the nature, quality, and extent of

INFORMATION RECEIVED portfolio management, administrative, and shareholder services In advance of the meeting, the Board, including each of the performed by Dodge & Cox. With regard to portfolio management Independent Trustees, requested, received, and reviewed materials services, the Board considered Dodge & Cox’s established long- relating to the Agreements and the services provided by term history of care and conscientiousness in the management of Dodge & Cox. The Independent Trustees retained Morningstar® the Funds; its demonstrated consistency in investment approach to prepare an independent expense and performance summary for and depth; the background and experience of the Dodge & Cox each Fund and comparable funds managed by other advisers Investment Policy Committee, International Investment Policy identified by Morningstar. The Morningstar materials included Committee, Global Stock Investment Policy Committee, Fixed information regarding advisory fee rates, expense ratios, and Income Investment Policy Committee, and Global Bond transfer agency, custodial, and distribution expenses, as well as Investment Policy Committee, and research analysts responsible appropriate performance comparisons to each Fund’s peer group for managing the Funds; its methods for assessing the regulatory and an index or combination of indices. The Morningstar and investment climate in various jurisdictions; Dodge & Cox’s materials also included a comparison of expenses of various share overall high level of attention to its core investment management classes offered by comparable funds. The materials reviewed by the function; and its commitment to the Funds and their shareholders. Board contained information concerning, among other things, In the area of administrative and shareholder services, the Board Dodge & Cox’s profitability, financial results and condition, considered the excellent quality of Dodge & Cox’s work in areas advisory fee revenue, and separate account and sub-adviser fund such as compliance, legal services, trading, proxy voting, fee schedules. The Board additionally considered the Funds’ technology, oversight of the Funds’ transfer agent and custodian, brokerage commissions, turnover rates, sales and redemption data tax compliance, and shareholder communication through its and the significant investment that Dodge & Cox makes in website and other means. The Board also noted Dodge & Cox’s research used in managing the Funds. The Board received and diligent disclosure policy, its favorable compliance record, and its reviewed memoranda and related materials addressing, among reputation as a trusted, shareholder-friendly mutual fund family. In

D ODGE &COX B ALANCED F UND ▪ PAGE 19 addition, the Board considered that Dodge & Cox manages The Board noted that expenses are well below industry approximately $185 billion in Fund assets with fewer professionals averages. When compared to peer group funds, the Funds are in than most comparable funds, and that on average these the quartile with the lowest expense ratios. The Board also professionals have more experience and longer tenure than considered that the Funds receive numerous administrative, investment professionals at comparable funds. The Board also regulatory compliance, legal, technology and shareholder support noted that Dodge & Cox is an investment research-oriented firm services from Dodge & Cox without any additional administrative with no other business endeavors to distract management’s fee and the fact that the Funds have relatively low transaction attention from its research efforts, and that its investment costs and portfolio turnover rates. The Board noted the Funds’ professionals adhere to a consistent investment approach across unusual single-share-class structure and reviewed Morningstar data the Funds. The Board further considered the favorable stewardship showing that the few peer group funds with lower expense ratios grades given by Morningstar to each of the Funds and the “Gold” often have other share classes with significantly higher expense analyst rating awarded by Morningstar to all of the Funds except ratios. In this regard, the Board considered that many of the Funds’ the Global Bond Fund. The Board concluded that it was satisfied shareholders would not be eligible to purchase comparably-priced with the nature, extent, and quality of investment management shares of many peer group funds, which typically make their lower- and other services provided to the Funds by Dodge & Cox. priced share classes available only to institutional investors. The Board determined that the Funds provide access for small investors INVESTMENT PERFORMANCE to high quality investment management at a relatively low cost. The Board considered short-term and long-term investment The Board reviewed information regarding the fee rates performance for each Fund (including periods of outperformance or Dodge & Cox charges to separate accounts and subadvised funds underperformance) as compared to both relevant indices and the that have investment programs similar to those of the Funds, performance of such Fund’s peer group. The Board noted that the including instances where separate account and sub-advised fund Funds had weak absolute and relative performance in 2015, but fees are lower than Fund fees. The Board considered differences in remained solid performers over longer periods. The Board the nature and scope of services Dodge & Cox provides to the determined after extensive review and inquiry that Dodge & Cox’s Funds as compared to other client accounts, differences in historic, long-term, team-oriented, bottom-up investment approach regulatory, litigation, and other risks as between Dodge & Cox remains consistent and that Dodge & Cox continues to be Funds and other types of clients. The Board also noted that distinguished by its integrity, transparency, and independence. The different markets exist for mutual fund and institutional separate Board considered that the performance of the Funds is the result of account management services. With respect to non-U.S. funds a team-oriented investment management process that emphasizes a sponsored and managed by Dodge & Cox that are comparable to long-term investment horizon, comprehensive independent the Funds in many respects, the Board noted that the fee rates research, price discipline, low cost and low portfolio turnover. The charged by Dodge & Cox are the same as or higher than the fee Board also considered that the investment performance delivered rates charged to the Funds. After consideration of these matters, the by Dodge & Cox to the Funds appeared to be consistent with the Board concluded that the overall costs incurred by the Funds for relevant performance delivered for other clients of Dodge & Cox. the services they receive (including the management fee paid to The Board concluded that Dodge & Cox has delivered favorable Dodge & Cox) are reasonable and that the fees are acceptable based long-term performance for Fund investors consistent with the long- upon the qualifications, experience, reputation, and performance of term investment strategies being pursued by the Funds. Dodge & Cox and the low overall expense ratios of the Funds. Profitability and Costs of Services to Dodge & Cox; COSTS AND ANCILLARY BENEFITS “Fall-out” Benefits. The Board reviewed reports of Costs of Services to Funds: Fees and Expenses. The Board Dodge & Cox’s financial position, profitability, and estimated considered each Fund’s management fee rate and expense ratio overall value, and considered Dodge & Cox’s overall profitability relative to each Fund’s peer group and relative to management fees within its context as a private, employee-owned S-Corporation charged by Dodge & Cox to other clients. In particular, the Board and relative to the favorable services provided. The Board noted in considered that the Funds continue to be substantially below their particular that Dodge & Cox’s profits are not generated by high fee peer group median in expense ratios and that many media and rates, but reflect an extraordinarily streamlined, efficient, and industry reports specifically comment on the low expense ratios of focused business approach toward investment management. The the Funds, which have been a defining characteristic of the Funds Board recognized the importance of Dodge & Cox’s profitability— for many years. The Board also evaluated the operating structures which is derived solely from management fees and does not of the Funds and Dodge & Cox, noting that the Funds do not include other business ventures—to maintain its independence, charge front-end sales commissions or distribution fees, and stability, company culture and ethics, and management continuity. The Board also considered that the compensation/profit structure Dodge & Cox bears, among other things, the significant cost of at Dodge & Cox includes a return on shareholder employees’ third party research, reimbursement for recordkeeping and investment in the firm, which is vital for remaining independent administrative costs to third-party retirement plan administrators, and facilitating retention of management and investment and administrative and office overhead. professionals. The Board considered independent research

PAGE 20 ▪ D ODGE &COX B ALANCED F UND indicating that firms that grow organically, rather than through The Board considered that Dodge & Cox has a history of acquisition, tend to have better performance. Key to organic voluntarily limiting asset growth in several Funds that experienced growth is the ability to retain talented and experienced analysts, significant inflows by closing them to new investors in order to portfolio managers and other professionals. protect the Funds’ ability to achieve good investment returns for The Board also considered that in January 2015, shareholders. The Board also observed that, even without fee Dodge & Cox closed the International Stock Fund to new breakpoints, the Funds are competitively priced in a very investors to pro-actively manage the growth of the Fund. The competitive market and that having a low fee from inception is Stock Fund and Balanced Fund were similarly closed to new better for shareholders than starting with a higher fee and adding investors during periods of significant growth in the past. While breakpoints. The Board concluded that the current Dodge & Cox these actions are intended to benefit existing shareholders, the fee structure is fair and reasonable and adequately shares effect is to reduce potential revenues to Dodge & Cox from new economies of scale that may exist. shareholders. The Board also considered potential “fall-out” benefits (including the receipt of research from unaffiliated brokers CONCLUSION and reputational benefits to non-U.S. funds sponsored and Based on their evaluation of all material factors and assisted by the managed by Dodge & Cox) that Dodge & Cox might receive as a advice of independent legal counsel to the Independent Trustees, result of its association with the Funds and determined that they the Board, including the Independent Trustees, concluded that the are acceptable. The Board also noted that Dodge & Cox continues advisory fee structure was fair and reasonable, that each Fund was to invest substantial sums in its business in order to provide paying a competitive fee for the services provided, that the scope enhanced services, systems and research capabilities, all of which and quality of Dodge & Cox’s services has provided substantial benefit the Funds. The Board concluded that Dodge & Cox’s value for Fund shareholders over the long term, and that approval profitability is the keystone of its independence, stability and long- of the Agreements was in the best interests of each Fund and its term investment performance and that the profitability of shareholders. Dodge & Cox’s relationship with the Funds (including fall-out benefits) is fair and reasonable. FUND HOLDINGS The Fund provides a complete list of its holdings four times each ECONOMIES OF SCALE fiscal year, as of the end of each quarter. The Fund files the lists The Board considered whether there have been economies of scale with the SEC on Form N-CSR (second and fourth quarters) and with respect to the management of each Fund, whether the Funds Form N-Q (first and third quarters). Shareholders may view the have appropriately benefited from any economies of scale, and Fund’s Forms N-CSR and N-Q on the SEC’s website at sec.gov. whether the management fee rate is reasonable in relation to the Forms N-CSR and N-Q may also be reviewed and copied at the Fund assets and any economies of scale that may exist. In the SEC’s Public Reference Room in Washington, DC. Information Board’s view, any consideration of economies of scale must take regarding the operations of the Public Reference Room may be account of the Funds’ low fee structure and the considerable obtained by calling 202-551-8090 (direct) or 800-732-0330 efficiencies of the Funds’ organization and fee structure that has (general SEC number). A list of the Fund’s quarter-end holdings is been realized by shareholders from the time of each Fund’s inception also available at dodgeandcox.com on or about 15 days following (i.e., from the first dollar). An assessment of economies of scale must each quarter end and remains available on the website until the also take into account that Dodge & Cox invests significant time list is updated in the subsequent quarter. and resources in each new Fund for months (and sometimes years) prior to launch; in addition, expenses are capped, which means that PROXY VOTING Dodge & Cox earns no revenue and subsidizes the operations of a For a free copy of the Fund’s proxy voting policies and procedures, new Fund for a period of time until it reaches scale. please call 800-621-3979, visit the Fund’s website at In addition, the Board noted that Dodge & Cox has shared dodgeandcox.com, or visit the SEC’s website at sec.gov. economies of scale by adding or enhancing services to the Funds Information regarding how the Fund voted proxies relating to over time, and that the internal costs of providing investment portfolio securities during the most recent 12-month period ending management, up-to-date technology, administrative, legal, and June 30 is also available at dodgeandcox.com or at sec.gov. compliance services to the Funds continue to increase. For example, Dodge & Cox has increased its global research staff and HOUSEHOLD MAILINGS investment resources over the years to address the increased The Fund routinely mails shareholder reports and summary complexity of investing in multinational and non-U.S. companies. prospectuses to shareholders and, on occasion, proxy statements. In addition, Dodge & Cox has made substantial expenditures in In order to reduce the volume of mail, when possible, only one other staff, technology, cybersecurity, and infrastructure to enable copy of these documents will be sent to shareholders who are part it to integrate credit and equity analyses and to be able to of the same family and share the same residential address. implement its strategy in a more effective and secure manner. Over If you have a direct account with the Funds and you do not the last ten years, Dodge & Cox has increased its spending on want the mailing of shareholder reports and summary prospectuses third party research, data services, trading systems, technology, and combined with other members in your household, contact the Funds recordkeeping service expenses at a rate that has significantly at 800-621-3979. Your request will be implemented within 30 days. outpaced the Funds’ growth rate during the same period.

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PAGE 22 ▪ D ODGE &COX B ALANCED F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge &Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

John B. Taylor (69) Trustee Professor of Economics, Stanford University (since 1984); Senior Fellow, — (Since 2005) Hoover Institution (since 1996); Under Secretary for International Affairs, (and 1995-2001) 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 Trustee oversees 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.

D ODGE &COX B ALANCED F UND ▪ PAGE 23 Balanced Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San 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 distribution to 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 any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dodge & Cox Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dodge & Cox Fund. D ODGE &COX F UNDS® 2015

Annual Report December 31, 2015

Global Bond Fund ESTABLISHED 2014

TICKER: DODLX

12/15 GBF AR Printed on recycled paper TO OUR SHAREHOLDERS

The Dodge & Cox Global Bond Fund had a total return of –6.2% worst, while financials were among the strongest performers. for the year ending December 31, 2015, compared to –3.2% for the Supply and demand dynamics were negative, as supply was high Barclays Global Aggregate Bond Index (Barclays Global Agg). due to record levels of M&A financing and demand weakened given accelerating outflows from credit funds in the second half of MARKET COMMENTARY the year. Market volatility increased throughout 2015, particularly in late summer following China’s decision to devalue the renminbi. INVESTMENT STRATEGY Numerous concerns contributed to “risk-off” behavior, including 2015 was a challenging year for the Fund as currency depreciation China’s ongoing structural adjustments, further declines in and widening credit yield premiums drove negative performance. commodity prices, financial and political turmoil in some emerging Declining commodity prices and weakness in several emerging markets, and important policy moves by major central banks. The market economies and credits had a particularly large negative U.S. dollar continued to strengthen against almost all currencies, impact on the Fund. which was the main driver of the Barclays Global Agg’s negative The broad investment themes of the Fund remained largely return, as it overwhelmed the income earned during the year. intact over the course of the year, but positioning shifted, Widening yield premiums(a) also drove price declines for credit substantially in some areas, as our conviction around some existing securities(b). themes grew. The Fund continues to have a defensive posture via Global economic and policy divergence continued during interest rate risk (i.e., low duration(c)), a majority of holdings in 2015. The U.S. economy saw another year of solid growth credit securities, high exposure to the U.S. dollar, and a sizable underpinned by dynamism in consumption, investment, housing, (27%(d)) exposure to emerging market currencies and credits. As and the labor market, which offset weakness in the manufacturing the valuation and economic landscape evolved over the year, we sector. The U.S. Federal Reserve (Fed) increased the federal funds increased the Fund’s credit exposure, decreased foreign currency rate by 0.25 percentage points after seven years at the so-called exposure, and reduced interest rate exposure. zero lower bound, citing progress in the recovery and assessing that inflation should move towards the 2% target over the medium Credit: Identifying Opportunities term. In contrast, the economic outlook in the Eurozone remained The Fund’s large allocation to credit securities was a detractor from challenged by considerable slack and weak inflation. This led the performance, as credit yield premiums rose to levels not seen since European Central Bank to continue easing during the year, taking 2013. Within the Fund’s credit holdings, commodity-related deposit rates further into negative territory, extending its asset issuers such as Kinder Morgan, Rio Oil Finance Trust, and (e) purchase program until at least March 2017, and expanding the Pemex, had the weakest performance. Amid this changing pool of purchasable securities. Facing similar challenges, the Bank valuation backdrop, we found a number of individual opportunities of Japan introduced measures to augment its already large that resulted in an increase in the Fund’s corporate bond Quantitative and Qualitative Easing Program. Despite large intra- weighting, from 51% to 58%. We added to a diverse group of year swings, 10-year yields in the United States, Germany, and issuers by geography, sector, and credit rating category. Japan ended the year nearly unchanged at 2.27%, 0.63%, and One source of credit additions to the Fund was M&A-related 0.27%, respectively. The euro and the Japanese yen depreciated by financing, which created an abundant source of supply for the 10.2% and 0.4%, respectively, against the U.S. dollar. markets to absorb. Many companies seek to delever subsequent to Emerging markets faced significant headwinds during 2015. these transactions, aligning incentives with bondholders. Our China’s growth deceleration below 7%, the slowest yearly pace in global industry analyst team develops a view of the strategic years, dampened the outlook of its main trading partners and put rationale for each M&A transaction and compiles a financial downward pressure on global commodity prices. In particular, oil forecast that enables us to assess issuers’ deleveraging capabilities prices declined to the lowest level since the financial crisis, across a range of outcomes, while our fixed income analyst team affecting growth and fiscal dynamics of exporting countries. focuses on the balance sheet and liquidity implications, Idiosyncratic events also contributed to financial turmoil in some particularly in downside scenarios. Examples of recent M&A- emerging markets, such as Brazil and South Africa. In turn, related investments include Actavis (a pharmaceutical company interest rates rose in several emerging markets and many currencies buying Allergen), CRH (a building materials company buying depreciated against the U.S. dollar—ranging from the Brazilian assets from Lafarge and Holcim), and Imperial Tobacco real’s 32.9% at the higher end, to the Indian rupee’s 4.7% at the (purchasing assets from Reynolds American). lower end. As in 2014, Asian oil importers and countries with We also conducted considerable research on the energy and economic reform momentum fared better than commodity metals & mining sectors, where valuations changed most exporters or countries with political challenges. significantly, seeking credits trading at attractive valuations with Investment-grade corporate bonds performed relatively poorly strong business franchises and the ability to withstand lower as yield premiums widened, especially during the third quarter. commodity prices for a sustained period. We made several Energy, basic materials and/or below-investment grade issuers fared additions to the portfolio including a position in Concho Resources, an independent exploration and production company

PAGE 2 ▪ D ODGE &COX G LOBAL B OND F UND and one of the largest producers in the Permian Basin. Concho Rates: What Happens After “Liftoff”? Resources has one of the lowest break-even oil prices in the Developed market rates ended relatively unchanged over the industry, significant valuable oil reserves, and a strong course of 2015, despite important central bank moves, incessant management team with a conservative approach to leverage. media commentary about U.S. long-term rates, and some intra- Another addition to the portfolio was Chilean state-owned year volatility. The U.S. 10-year rate increased just 0.1 percentage Codelco, the world’s largest copper producer, accounting for points during the year, and Japanese and German 10-year yields around 10% of global copper production. We believe the strong moved even less. AA-rated Chilean sovereign would support Codelco if needed, and Our views regarding interest rate risk have not changed that the long-term supply and demand outlook for copper is materially. We are operating in an environment where the price favorable given limited supply and consumer-driven demand. impact of a rise in rates could easily overwhelm the low yield/ While credit spreads ended the year at levels reflecting a income of most developed market government bonds. As such, the perceived rise in defaults or a potential recession, we do not Fund’s duration is 3.1 years, less than half that of the Barclays believe that either scenario is likely. Leverage levels are Global Agg. We see a clear disconnect between the far slower pace reasonable, interest coverage is robust, and the U.S. economy is of rate increases implied by current U.S. Treasury valuations and growing at a moderate pace. As such, we believe many bonds are the Fed’s stated expectations and, particularly in the context of a trading at attractive levels. The wide dispersion of valuations in modestly expanding economy (more than 2% growth is expected credit today is conducive to our rigorous research process and focus over the next several years) and an inflation rate likely to rise as on security selection. We remain optimistic about the prospects for energy and import prices increase. the Fund’s credit holdings. IN CLOSING Currency: Strong U.S. Dollar Continues The Fund’s recent performance has been disappointing, but we As in 2014, nearly every currency depreciated against the U.S. retain a view that the vast global bond universe provides ample dollar in 2015. These declines hurt the Fund’s performance, opportunity for investors over the long term. We remain confident especially the depreciation of several Latin American currencies in our investment strategy and process, which is based on robust that accelerated in the latter half of the year. However, relative to fundamental research and a focus on relative valuation, and the Barclays Global Agg, on the whole, the Fund’s currency believe the current environment is conducive to our disciplined positioning was slightly additive to performance, largely because of credit and currency selection processes. Acknowledging that bond the Fund’s significant underweight to the euro. prices and currencies can be volatile in the short term, we remain During the year, we significantly increased the Fund’s U.S. focused on the long term. dollar weighting (from 61% to 78%) as the divergence in Thank you for your continued confidence in our firm. As economic strength and monetary policy between the United States always, we welcome your comments and questions. and much of the rest of the world was cemented. Early in the year, we reduced exposure to the euro and other euro-correlated For the Board of Trustees, currencies (e.g., Swedish krona and British pound). These trims were driven by low yield levels and the likelihood that the European Central Bank would take actions that could weaken the euro versus the dollar. Later in the year, in the midst of weakening Chinese growth and a change to the Chinese currency regime, we Charles F. Pohl, Dana M. Emery, reduced the Fund’s exposure to Asian emerging market currencies, Chairman President including the Malaysian ringgit, the Indonesian rupiah, and the South Korean won. Depreciation pressure for these currencies is January 29, 2016 likely to continue as they are exporters to China and/or (a) Yield premiums are one way to measure a security’s valuation. Narrowing competitors with China. One brighter spot in the region is India, yield premiums result in a higher valuation. Widening yield premiums result as it has fewer linkages with China, positive reform momentum, in a lower valuation. (b) accelerating growth, solid macro policies, and is a net beneficiary Credit securities refers to corporate bonds and government-related securities, as classified by Barclays. from lower oil prices. In accordance with this favorable view, we (c) Duration is a measure of a bond’s (or a bond portfolio’s) price sensitivity to increased the Fund’s exposure to the Indian rupee during the year. changes in interest rates. Approximately 13% of the Fund’s holdings are denominated (d) Unless otherwise specified, all weightings and characteristics are as of December 31, 2015. in four Latin American currencies (Mexican peso, Brazilian real, (e) The use of specific examples does not imply that they are more attractive Colombian peso, and Chilean peso), which have been battered by investments than the Fund’s other holdings. a number of forces including commodity price declines, weakening sentiment towards emerging markets, and idiosyncratic challenges in the case of Brazil. Our constructive outlook for these currencies is based on their mix of high yield levels, low valuations, the prospect for a stabilization or recovery of commodity prices, and, in the case of Mexico, the medium-run benefits of structural reforms.

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 3 ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the Barclays Global Agg by 3.0 Independent Organization percentage points in 2015. Dodge & Cox is one of the largest privately owned investment managers in the world. We remain committed to independence, Key Detractors from Relative Results with a goal of providing the highest quality investment ▪ The Fund’s exposure to Latin American currencies (13% management service to our existing clients. versus 0.4% for the Barclays Global Agg), including the Over 85 Years of Investment Experience Brazilian real, Mexican peso, Colombian peso, and Chilean Dodge & Cox was founded in 1930. We have a stable and well- peso, detracted from relative returns as these currencies qualified team of investment professionals, most of whom have depreciated versus the U.S. dollar. spent their entire careers at Dodge & Cox. ▪ The Fund’s commodity-related credit holdings underperformed, led by Kinder Morgan and Teck Resources in North America, Experienced Investment Team as well as Pemex, Petrobras, and Rio Oil Finance Trust in Latin The Global Bond Investment Policy Committee, which is the America. decision-making body for the Global Bond Fund, is a six- ▪ The Fund’s relatively high corporate exposure (51% versus member committee with an average tenure at Dodge & Cox of 17% for the Barclays Global Agg) detracted from relative 20 years. returns as corporate yield premiums rose. One Business with a Single Research Office Dodge & Cox manages equity (domestic, international, and Key Contributors to Relative Results global), fixed income (domestic and global), and balanced ▪ The Fund’s underweight to the euro (6% versus 26% for the investments, operating from one office in San Francisco. Barclays Global Agg) contributed significantly to relative returns as the euro depreciated 10.2% versus the U.S. dollar. Consistent Investment Approach ▪ The Fund’s nominal yield advantage was a positive factor. Our team decision-making process involves thorough, bottom- up fundamental analysis of each investment. Unless otherwise noted, figures cited in this section denote Fund positioning at the beginning of the period. Long-Term Focus and Low Expenses We invest with a three- to five-year investment horizon, which has historically resulted in low turnover relative to our peers. We manage Funds that maintain low expense ratios.

Risks: The yields and market values of the instruments in which the Fund invests may fluctuate. Accordingly, an investment may be worth more or less than its original cost. Debt securities are subject to interest rate risk, credit risk, and prepayment and call risk, all of which could have adverse effects on the value of the Fund. A low interest rate environment creates an elevated risk of future negative returns. Financial intermediaries may restrict their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such securities. Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be increased when investing in emerging markets. The Fund is also subject to currency risk. Please read the prospectus and summary prospectus for specific details regarding the Fund’s risk profile.

PAGE 4 ▪ D ODGE &COX G LOBAL B OND F UND GROWTH OF $10,000 SINCE INCEPTION FOR AN INVESTMENT MADE ON DECEMBER 5, 2012

$20,000 Returns represent past performance and do not guarantee future (a) Dodge & Cox Global Bond Fund $9,801 results. Investment return and share price will fluctuate with Barclays Global Agg $9,416 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is updated and 10,000 published monthly. Visit the Fund’s website at dodgeandcox.com or call 800-621-3979 for current performance figures. A private fund managed and funded by Dodge & Cox (the “Private Fund”) was reorganized into the Fund and the Fund commenced operations on May 1, 2014. The Private Fund commenced 5,000 operations on December 5, 2012 and had an investment objective, 12/5/1212/31/13 12/31/14 12/31/15 policies, and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all AVERAGE ANNUAL TOTAL RETURN material respects, complied with the investment guidelines and restrictions of the Fund. However, the Private Fund was not FOR PERIODS ENDED DECEMBER 31, 2015 registered as an investment company under the Investment Since Company Act of 1940 (the “1940 Act”), and therefore was not Inception subject to certain investment limitations, diversification 1 Year 3 Years (12/5/12) requirements, liquidity requirements, and other restrictions imposed Dodge & Cox Global Bond Fund(a) –6.21% –0.73% –0.65% by the 1940 Act and the Internal Revenue Code, which, if Barclays Global Aggregate Bond Index applicable, may have adversely affected its performance. (Barclays Global Agg) –3.17 –1.74 –1.93 The Fund’s total returns include the reinvestment of dividend and (a) Expense reimbursements have been in effect for the Fund since its inception. capital gain distributions, but have not been adjusted for any income Without the expense reimbursements, returns for the Fund would have been taxes payable by shareholders on these distributions or on Fund share lower. The Fund’s returns from May 1, 2014 to December 31, 2014 and from redemptions. Index returns include interest income but, unlike Fund January 1, 2015 to December 31, 2015 are as presented in the Financial returns, do not reflect fees or expenses. The Barclays Global Highlights. Aggregate 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.

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 958.40 $2.96 Based on Hypothetical 5% Yearly Return 1,000.00 1,022.18 3.06 * 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 reflect the one-half year period).

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 5 FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $9.67 Debt Total Net Assets (millions) $67.7 Securities: 97.2% 30-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 55 Fund Inception May 1, 2014 No sales charges or distribution fees Net Cash & Other:(f) 2.8% Investment Manager: Dodge & Cox, San Francisco. Managed by the Global Bond Investment Policy Committee, whose six members’ average tenure at Dodge & Cox is 20 years.

Barclays Barclays PORTFOLIO CHARACTERISTICS Fund Global Agg SECTOR DIVERSIFICATION (%)(g) Fund Global Agg Effective Duration (years) 3.1 6.6 Government 17.5 54.0 Emerging Markets(c) 27.3% 5.0% Government-Related 8.9 12.4 Securitized 13.3 15.7 FIVE LARGEST CREDIT ISSUERS (%)(d) Fund Corporate 57.5 17.9 Cemex SAB de CV 2.5 Cash Equivalents 2.8 0.0 Millicom International Cellular SA 2.2 Chicago Transit Authority RB 2.2 Naspers, Ltd. 2.2 Imperial Tobacco Group PLC 2.0 Barclays Barclays REGION DIVERSIFICATION (%)(c)(g) Fund Global Agg CREDIT QUALITY (%)(e)(g) Fund Global Agg United States 50.1 38.9 Aaa 12.4 41.0 Latin America 23.1 1.1 Aa 3.6 16.8 Europe (excluding United Kingdom) 8.7 25.9 A 16.0 26.1 United Kingdom 7.9 6.2 Baa 44.8 16.1 Africa/Middle East 3.1 0.8 Ba 16.9 0.0 Canada 2.7 3.1 B 3.5 0.0 Pacific (excluding Japan) 1.6 5.1 Cash Equivalents 2.8 0.0 Japan 0.0 16.5 Other 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 the end 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 on the 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 particular security 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 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 comply with the quality requirements stated in its prospectus. On that basis, the Fund held 13.1% in securities rated 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. (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.

PAGE 6 ▪ D ODGE &COX G LOBAL B OND F UND PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES: 97.2%

PAR VALUE VALUE PAR VALUE VALUE GOVERNMENT: 17.5% Freddie Mac (United States) Brazil Government (Brazil) Series 4283 EW, 4.683%, 12/15/43 USD 241,632 $ 262,029 Series F, 10.00%, 1/1/21 BRL 3,355,000 $ 675,044 Freddie Mac, Hybrid ARM (United States) Series F, 10.00%, 1/1/25 BRL 2,900,000 524,272 3.025%, 10/1/44 USD 504,956 519,292 Chile Government GDN (Chile) 2.752%, 11/1/44 USD 1,272,832 1,300,004 6.00%, 1/1/18(c) CLP 905,000,000 1,323,807 2.731%, 1/1/45 USD 1,319,435 1,345,654 Colombia Government (Colombia) Freddie Mac Gold, 30 Year (United States) 9.85%, 6/28/27 COP 3,900,000,000 1,402,378 6.00%, 2/1/35 USD 121,622 138,843 Mexico Government (Mexico) Navient Student Loan Trust (Private Loans) 4.75%, 6/14/18 MXN 23,200,000 1,352,573 (United States) 2.00%, 6/9/22(a) MXN 71,166,039 3,859,355 Series 2015-CA B, 3.25%, 5/15/40(c) USD 1,350,000 1,306,648 South Korea Government (South Korea) Rio Oil Finance Trust (Brazil) 3.00%, 12/10/16 KRW 880,200,000 760,138 9.25%, 7/6/24(c) USD 1,200,000 888,000 U.S. Treasury Note/Bond 9.75%, 1/6/27(c) USD 475,000 349,125 (United States) 9,013,306 0.875%, 11/30/17 USD 1,950,000 1,944,544 CORPORATE: 57.5% 11,842,111 FINANCIALS: 16.4% GOVERNMENT-RELATED: 8.9% Anthem, Inc. (United States) Brazil Government International (Brazil) 7.00%, 2/15/19 USD 335,000 376,440 4.25%, 1/7/25 USD 850,000 684,250 4.35%, 8/15/20 USD 275,000 291,287 Chicago Transit Authority RB Bank of America Corp. (United States) (United States) 4.25%, 10/22/26 USD 300,000 296,981 6.20%, 12/1/40 USD 50,000 54,249 6.625%, 5/23/36(b) USD 325,000 370,158 6.899%, 12/1/40 USD 1,250,000 1,452,774 Barclays PLC (United Kingdom) Corp. Nacional del Cobre de Chile 4.375%, 9/11/24 USD 600,000 586,693 (Chile) BNP Paribas SA (France) 4.50%, 9/16/25(c) USD 375,000 353,129 5.75%, 1/24/22 GBP 425,000 700,655 Peru Government International (Peru) 4.375%, 9/28/25(c) USD 200,000 195,897 4.125%, 8/25/27 USD 700,000 686,000 Boston Properties, Inc. (United States) Petroleo Brasileiro SA (Brazil) 5.625%, 11/15/20 USD 275,000 306,195 7.25%, 3/17/44 USD 550,000 371,250 4.125%, 5/15/21 USD 325,000 340,568 Petroleos Mexicanos (Mexico) Capital One Financial Corp. 2.75%, 4/21/27 EUR 425,000 339,212 (United States) 5.50%, 6/27/44(c) USD 175,000 131,660 3.75%, 4/24/24 USD 750,000 755,249 6.375%, 1/23/45 USD 485,000 412,137 Citigroup, Inc. (United States) State of California GO (United States) 6.692%, 10/30/40(b) USD 1,030,000 1,079,028 6.20%, 10/1/19 USD 325,000 372,730 Equity Residential (United States) State of Illinois GO (United States) 4.75%, 7/15/20 USD 575,000 621,358 4.961%, 3/1/16 USD 400,000 402,476 Health Net, Inc. (United States) 5.665%, 3/1/18 USD 700,000 741,195 6.375%, 6/1/17 USD 550,000 572,000 6,001,062 HSBC Holdings PLC (United Kingdom) 6.50%, 5/2/36 USD 400,000 477,134 SECURITIZED: 13.3% 6.50%, 9/15/37 USD 525,000 629,900 Chase Issuance Trust (United States) JPMorgan Chase & Co. (United States) Series 2007-A3 A3, 5.23%, 4/15/19 USD 419,000 437,502 3.375%, 5/1/23 USD 700,000 688,360 Fannie Mae, 15 Year (United States) Lloyds Banking Group PLC 5.00%, 7/1/25 USD 35,130 36,976 (United Kingdom) Fannie Mae, 20 Year (United States) 4.50%, 11/4/24 USD 950,000 964,486 4.50%, 6/1/31 USD 267,621 291,359 Navient Corp. (United States) 4.00%, 10/1/34 USD 364,507 389,934 6.00%, 1/25/17 USD 670,000 686,750 Fannie Mae, Hybrid ARM 4.625%, 9/25/17 USD 243,000 239,355 (United States) 8.45%, 6/15/18 USD 125,000 131,562 2.915%, 8/1/44 USD 235,817 242,110 Royal Bank of Scotland Group PLC 2.759%, 9/1/44 USD 422,977 433,242 (United Kingdom) Ford Credit Auto Owner Trust 6.125%, 12/15/22 USD 325,000 353,830 (United States) 6.00%, 12/19/23 USD 400,000 430,802 Series 2012-B A4, 1.00%, 9/15/17 USD 194,682 194,698 Series 2014-C A3, 1.06%, 5/15/19 USD 880,000 877,890 11,094,688

See accompanying Notes to Financial Statements D ODGE &COX G LOBAL B OND F UND ▪ PAGE 7 PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE INDUSTRIALS: 37.7% Telecom Italia SPA (Italy) Allergan PLC (Ireland) 6.375%, 6/24/19 GBP 450,000 $ 720,525 3.00%, 3/12/20 USD 275,000 $ 274,781 7.721%, 6/4/38 USD 575,000 599,437 3.80%, 3/15/25 USD 225,000 223,872 Time Warner Cable, Inc. (United States) AT&T, Inc. (United States) 8.75%, 2/14/19 USD 475,000 551,165 6.55%, 2/15/39 USD 500,000 561,631 6.75%, 6/15/39 USD 750,000 752,667 4.75%, 5/15/46 USD 125,000 114,428 Time Warner, Inc. (United States) BHP Billiton, Ltd. (Australia) 7.625%, 4/15/31 USD 400,000 494,931 6.75%, 10/19/75(b)(c) USD 350,000 337,750 7.70%, 5/1/32 USD 375,000 468,148 Canadian Pacific Railway, Ltd. (Canada) TransCanada Corp. (Canada) 6.25%, 6/1/18 CAD 800,000 634,097 5.625%, 5/20/75(b) USD 1,125,000 1,040,157 Cemex SAB de CV (Mexico) Twenty-First Century Fox, Inc. 7.25%, 1/15/21(c) USD 1,750,000 1,684,375 (United States) Concho Resources, Inc. (United States) 6.15%, 3/1/37 USD 275,000 306,413 6.50%, 1/15/22 USD 1,100,000 1,056,000 6.65%, 11/15/37 USD 625,000 726,288 Cox Enterprises, Inc. (United States) Tyco International PLC (Ireland) 3.25%, 12/15/22(c) USD 715,000 649,930 3.90%, 2/14/26 USD 375,000 376,063 2.95%, 6/30/23(c) USD 400,000 352,394 Verizon Communications, Inc. Ford Motor Credit Co. LLC(d) (United States) (United States) 4.272%, 1/15/36 USD 375,000 338,477 8.125%, 1/15/20 USD 300,000 353,468 6.55%, 9/15/43 USD 525,000 623,268 5.875%, 8/2/21 USD 625,000 696,986 Vulcan Materials Co. (United States) Grupo Televisa SAB (Mexico) 7.50%, 6/15/21 USD 438,000 510,270 8.50%, 3/11/32 USD 500,000 603,071 Zoetis, Inc. (United States) HCA Holdings, Inc. (United States) 3.45%, 11/13/20 USD 100,000 100,120 4.75%, 5/1/23 USD 675,000 668,250 4.50%, 11/13/25 USD 200,000 202,814 Hewlett Packard Enterprise Co. 25,489,699 (United States) UTILITIES: 3.4% (c) 3.60%, 10/15/20 USD 550,000 551,320 Dominion Resources, Inc. (United States) Imperial Tobacco Group PLC 5.75%, 10/1/54(b) USD 1,075,000 1,053,285 (United Kingdom) Enel SPA (Italy) 9.00%, 2/17/22 GBP 305,000 594,802 6.80%, 9/15/37(c) USD 650,000 793,681 4.25%, 7/21/25(c) USD 750,000 761,194 6.00%, 10/7/39(c) USD 425,000 475,236 Kinder Morgan, Inc. (United States) 4.30%, 6/1/25 USD 100,000 86,446 2,322,202 6.95%, 1/15/38 USD 1,325,000 1,177,901 38,906,589 Macy’s, Inc. (United States) 6.70%, 9/15/28 USD 50,000 55,104 TOTAL DEBT SECURITIES 65,763,068 6.90%, 4/1/29 USD 75,000 84,526 (Cost $71,366,669) 6.70%, 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 700,000 744,751 5.50%, 7/21/25(c) USD 750,000 721,524 RELX PLC (United Kingdom) 8.625%, 1/15/19 USD 58,000 67,649 3.125%, 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

PAGE 8 ▪ D ODGE &COX G LOBAL B OND F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

SHORT-TERM INVESTMENTS: 1.4% FUTURES CONTRACTS PAR VALUE VALUE Unrealized MONEY MARKET FUND: 0.1% Number of Expiration Notional Appreciation/ SSgA U.S. Treasury Money Market Fund USD 67,958 $ 67,958 Description Contracts Date Amount (Depreciation) 10 Year U.S. REPURCHASE AGREEMENT: 1.3% Treasury Note— Fixed Income Clearing Corporation(e) Short Position 66 Mar 2016 $(8,309,813) $31,033 0.08%, dated 12/31/15, due 1/4/16, Long-Term U.S. maturity value $905,008 USD 905,000 905,000 Treasury Bond— TOTAL SHORT-TERM INVESTMENTS Short Position 18 Mar 2016 (2,856,375) (8,905) (Cost $972,958) $ 972,958 $22,128 TOTAL INVESTMENTS (Cost $72,339,627) 98.6% $66,736,026 OTHER ASSETS LESS LIABILITIES 1.4% 925,826 CENTRALLY CLEARED INTEREST RATE SWAPS NET ASSETS 100.0% $67,661,852 Contract Amount Unrealized (a) Inflation-linked Notional Expiration Fixed Appreciation/ Amount Date Rate Floating Rate (Depreciation) (b) Hybrid security (c) Security exempt from registration under Rule 144A of the Securities Act of Pay Fixed/Receive Floating: 1933. The security may be resold in transactions exempt from registration, $825,000 5/6/24 2.72% USD LIBOR 3-Month $ (45,704) normally to qualified institutional buyers. As of December 31, 2015, all 825,000 8/22/24 2.57% USD LIBOR 3-Month (39,699) such securities in total represented $14,530,472 or 21.4% of total net assets. 1,750,000 7/29/45 2.774% USD LIBOR 3-Month (79,352) These securities have been deemed liquid by Dodge & Cox, investment $(164,755) manager, 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%, FORWARD CURRENCY CONTRACTS 7/31/20. Total collateral value is $926,156. Contract Amount Debt securities are grouped by parent company unless otherwise noted. Deliver Unrealized Actual securities may be issued by the listed parent company or one of its Settlement Receive Foreign Appreciation/ subsidiaries. In determining a parent company’s country designation, the Counterparty Date U.S. Dollar Currency (Depreciation) Fund generally references the country of incorporation. Contracts to sell EUR: Barclays 3/2/16 1,489,986 1,400,000 $(33,612) ARM: Adjustable Rate Mortgage GO: General Obligation GDN: Global Depositary Note Receive Unrealized RB: Revenue Bond Settlement Deliver Foreign Appreciation/ Counterparty Date U.S. Dollar Currency (Depreciation) BRL: Brazilian Real Contracts to buy EUR: CAD: Canadian Dollar Barclays 3/2/16 1,146,251 1,075,000 23,654 CLP: Chilean Peso Contracts to buy INR: COP: Colombian Peso Barclays 2/17/16 1,272,321 85,500,000 11,134 EUR: Euro Barclays 2/17/16 761,793 52,000,000 18,788 GBP: British Pound INR: Indian Rupee $ 19,964 KRW: South Korean Won MXN: Mexican Peso USD: United States Dollar

See accompanying Notes to Financial Statements D ODGE &COX G LOBAL B OND F UND ▪ PAGE 9 STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS December 31, 2015 Year Ended Period Ended ASSETS: December 31, 2015 December 31, 2014* Investments, at value (cost $72,339,627) $66,736,026 OPERATIONS: Unrealized appreciation on forward currency contracts 53,576 Net investment income $ 2,394,483 $ 746,563 Cash denominated in foreign currency (cost $167) 164 Net realized loss (3,554,990) (339,029) Cash held at broker 359,674 Net change in unrealized Receivable for investments sold 39,172 appreciation/depreciation (3,521,066) (2,222,630) Receivable for Fund shares sold 7,788 (4,681,573) Dividends and interest receivable 971,912 (1,815,096) Prepaid expenses and other assets 19,273 68,187,585 DISTRIBUTIONS TO SHAREHOLDERS FROM: LIABILITIES: Net investment income — (650,780) Unrealized depreciation on forward currency contracts 33,612 Net realized gain — — Payable to broker for variation margin 80,439 Payable for Fund shares redeemed 342,887 Total distributions — (650,780) Expense reimbursement received in advance 17,227 Accrued expenses 51,568 FUND SHARE 525,733 TRANSACTIONS: Proceeds from sale of shares 26,112,074 75,231,468 NET ASSETS $67,661,852 Reinvestment of distributions — 582,706 NET ASSETS CONSIST OF: Cost of shares redeemed (18,458,010) (8,658,937) Paid in capital $74,419,062 Accumulated net investment loss (186,162) Net increase from Fund share transactions 7,654,064 67,155,237 Accumulated net realized loss (827,352) Total increase in net assets 2,972,491 64,689,361 Net unrealized depreciation (5,743,696)

$67,661,852 NET ASSETS: Fund shares outstanding (par value $0.01 each, Beginning of period 64,689,361 — unlimited shares authorized) 6,999,088 End of period (including accumulated net Net asset value per share $ 9.67 investment loss of $(186,162) and $(66,238), respectively) $ 67,661,852 $64,689,361 STATEMENT OF OPERATIONS Year Ended SHARE INFORMATION: December 31, 2015 Shares sold 2,575,716 7,034,774 INVESTMENT INCOME: Distributions reinvested — 55,846 Dividends $ 58,964 Interest (net of foreign taxes of $5,879) 2,759,838 Shares redeemed (1,848,870) (818,378) 2,818,802 Net increase in shares outstanding 726,846 6,272,242 EXPENSES: Management fees 353,517 Custody and fund accounting fees 26,648 Transfer agent fees 21,750 Professional services 223,071 Shareholder reports 15,063 Registration fees 90,581 Trustees’ fees 237,500 Miscellaneous 27,068 Total expenses 995,198 Expenses reimbursed by investment manager (570,879) Net expenses 424,319 NET INVESTMENT INCOME 2,394,483

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/depreciation Investments (3,697,465) Treasury futures contracts 229,905 Interest rate swaps (97,410) Forward currency contracts 37,073 Foreign currency translation 6,831 Net realized and unrealized loss (7,076,056) NET DECREASE IN NET ASSETS FROM OPERATIONS $(4,681,573)

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

PAGE 10 ▪ D ODGE &COX G LOBAL B OND F UND See accompanying Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT Investments initially valued in currencies other than the U.S. ACCOUNTING POLICIES dollar are converted to the U.S. dollar using prevailing exchange Dodge & Cox Global Bond Fund (the “Fund”) is one of the series rates. As a result, the Fund’s net assets may be affected by changes constituting the Dodge & Cox Funds (the “Trust” or the “Funds”). in the value of currencies in relation to the U.S. dollar. The Trust is organized as a Delaware statutory trust and is If market quotations are not readily available or if a security’s registered under the Investment Company Act of 1940, as value is believed to have materially changed after the close of the amended, as an open-end management investment company. The security’s primary market but before the close of trading on the Fund1 seeks a high rate of total return consistent with long-term NYSE, the security is valued at fair value as determined in good preservation of capital. Foreign investing, especially in developing faith by or under the direction of the Fund’s Board of Trustees. countries, has special risks such as currency and market volatility The Board of Trustees has appointed Dodge & Cox, the Fund’s and political and social instability. These and other risk investment manager, to make fair value determinations in accordance with the Dodge & Cox Funds Valuation Policies considerations are discussed in the Fund’s Prospectus. (“Valuation Policies”), subject to Board oversight. Dodge & Cox The financial statements have been prepared in conformity has established a Pricing Committee that is comprised of with accounting principles generally accepted in the United States representatives from Treasury, Legal, Compliance, and Operations. of America, which require the use of estimates and assumptions by The Pricing Committee is responsible for implementing the management. Actual results may differ from those estimates. Valuation Policies, including determining the fair value of Significant accounting policies are as follows: securities when market quotations or market-based valuations are Security valuation The Fund’s net assets are valued as of the not readily available or are deemed unreliable. The Pricing close of trading on the New York Stock Exchange (NYSE), Committee considers relevant indications of value that are generally 4:00 p.m. Eastern Time, each day that the NYSE is open reasonably available to it in determining the fair value assigned to for business. If the NYSE is closed due to inclement weather, a particular security, such as the value of similar financial technology problems, or for any other reason on a day it would instruments, trading volumes, contractual restrictions on normally be open for business, or the NYSE has an unscheduled disposition, related corporate actions, and changes in economic early closing on a day it has opened for business, the Fund reserves conditions. In doing so, the Pricing Committee employs various the right to calculate the Fund’s NAV as of the normally methods for calibrating fair valuation approaches, including a scheduled close of regular trading on the NYSE for that day, regular review of key inputs and assumptions, back-testing, and provided that Dodge & Cox believes that it can obtain reliable review of any related market activity. market quotes or valuations. Valuing securities through a fair value determination involves Debt securities and non-exchange traded derivatives are greater reliance on judgment than valuation of securities based on valued based on prices received from independent pricing services readily available market quotations. In some instances, lack of which utilize both dealer-supplied valuations and pricing models. information and uncertainty as to the significance of information Pricing models may consider quoted prices for similar securities, may lead to a conclusion that a prior valuation is the best interest rates, prepayment speeds, and credit risk. Exchange-traded indication of a security’s value. When fair value pricing is derivatives are valued at the settlement price determined by the employed, the prices of securities used by the Fund to calculate its relevant exchange. Interest rate swaps are valued daily based on NAV may differ from quoted or published prices for the same prices received from independent pricing services, which represent securities. the net present value of all future cash settlement amounts based Security transactions, investment income, expenses, on implied forward interest rates. Other financial instruments for and distributions Security transactions are recorded on the trade which market quotes are readily available are valued at market date. Realized gains and losses on securities sold are determined on value. Security values are not discounted based on the size of the the basis of identified cost. Fund’s position. Short-term securities less than 60 days to maturity Interest income is recorded on the accrual basis. Interest may be valued at amortized cost if amortized cost approximates income includes coupon interest, amortization of premium and current value. Mutual funds are valued at their respective net asset accretion of discount on debt securities, gain/loss on paydowns, and inflation adjustments to the principal amount of inflation- values. indexed securities. The ability of the issuers of the debt securities

1 The Fund’s predecessor, Dodge & Cox Global Bond Fund, L.L.C. (the held by the Fund to meet their obligations may be affected by “Private Fund”), was organized on August 31, 2012 and commenced economic developments in a specific industry, state, region, or operations on December 5, 2012 as a private investment fund that country. Debt obligations may be placed on non-accrual status and reorganized into, and had the same investment manager as, the Fund. The related interest income may be reduced by ceasing current accruals Fund commenced operations on May 1, 2014, upon the transfer of assets from the Private Fund. This transaction was accomplished through a transfer and writing off interest receivables when the collection of all or a of Private Fund net assets valued at $10,725,688 in exchange for 1,000,000 portion of interest has become doubtful. A debt obligation is shares of the Fund. Immediately after the transfer, the shares of the Fund removed from non-accrual status when the issuer resumes interest were distributed to the sole owner of the Private Fund and the investment payments or when collectability of interest is reasonably assured. manager of the Fund, Dodge & Cox, which became the initial shareholder of the Fund. Dividend income is recorded on the ex-dividend date.

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 11 NOTES TO FINANCIAL STATEMENTS

Expenses are recorded on the accrual basis. Some expenses of exposure. During the year ended December 31, 2015, these the Trust can be directly attributed to a specific series. Expenses Treasury futures contracts had notional values ranging from 8% to which cannot be directly attributed are allocated among the Funds 17% of net assets. in the Trust based on relative net assets or other expense Interest rate swaps Interest rate swaps are agreements that methodologies determined by the nature of the expense. obligate two parties to exchange a series of cash flows at specified Distributions to shareholders are recorded on the ex-dividend payment dates calculated by reference to specified interest rates, date. such as an exchange of floating rate payments for fixed rate Foreign taxes The Fund is subject to foreign taxes which payments. Upon entering into a centrally cleared interest rate may be imposed by certain countries in which the Fund invests. swap, the Fund is required to post an amount of cash or liquid The Fund endeavors to record foreign taxes based on applicable assets (referred to as initial margin) in a segregated account with foreign tax law. Withholding taxes are incurred on certain foreign the clearing broker. Subsequent payments (referred to as variation receipts and are accrued at the time the associated interest income margin) to and from the clearing broker are made on a daily basis is recorded. Capital gains taxes are incurred upon disposition of certain based on changes in the market value of each interest rate swap. foreign securities. Capital gains taxes on appreciated securities are Changes in the market value of open interest rate swaps are accrued as unrealized losses and are reflected as realized losses upon recorded as unrealized appreciation or depreciation in the the sale of the related security. Currency taxes may be incurred Statement of Operations. Realized gains and losses on interest rate when the Fund purchases certain foreign currencies related to swaps are recorded in the Statement of Operations, both upon the securities transactions and are recorded as realized losses on foreign exchange of cash flows on each specified payment date and upon currency transactions. the closing or expiration of the swap. Cash deposited with the Repurchase agreements The Fund enters into repurchase clearing broker as initial margin is recorded on the Statement of agreements, secured by U.S. government or agency securities, Assets and Liabilities. A receivable and/or payable to brokers for which involve the purchase of securities from a counterparty with daily variation margin is also recorded on the Statement of Assets a simultaneous commitment to resell the securities at an agreed- and Liabilities. upon date and price. It is the Fund’s policy that its custodian take Investments in interest rate swaps may include certain risks possession of the underlying collateral securities, the fair value of including unfavorable changes in interest rates, or a default or which exceeds the principal amount of the repurchase transaction, failure by the clearing broker or clearinghouse. including accrued interest, at all times. In the event of default by The Fund has maintained interest rate swaps in connection the counterparty, the Fund has the contractual right to liquidate the securities and to apply the proceeds in satisfaction of the with the management of the portfolio’s interest rate exposure. obligation. During the year ended December 31, 2015, these interest rate Futures Contracts Futures contracts involve an obligation swaps had U.S. dollar notional values ranging from 2% to 5% of to purchase or sell (depending on whether the Fund has entered a net assets. long or short futures contract, respectively) an asset at a future Forward currency contracts A forward currency contract date, at a price set at the time of the contract. Upon entering into represents an obligation to purchase or sell a specific foreign a futures contract, the Fund is required to deposit an amount of currency at a future date at a price set at the time of the contract. cash or liquid assets (referred to as initial margin) in a segregated Losses from these transactions may arise from unfavorable changes account with the clearing broker. Subsequent payments (referred in currency values or if the counterparties do not perform under a to as variation margin) to and from the clearing broker are made contract’s terms. on a daily basis based on changes in the market value of futures The values of the forward currency contracts are adjusted contracts. Futures contracts are traded publicly and their market daily based on the prevailing forward exchange rates of the value changes daily. Changes in the market value of open futures underlying currencies. Changes in the value of open contracts are contracts are recorded as unrealized appreciation or depreciation in recorded as unrealized appreciation or depreciation in the the Statement of Operations. Realized gains and losses on futures Statement of Operations. When the forward currency contract is contracts are recorded in the Statement of Operations at the closing or expiration of the contracts. Cash deposited with a closed, the Fund records a realized gain or loss in the Statement of broker as initial margin is recorded on the Statement of Assets and Operations equal to the difference between the value at the time Liabilities. A receivable and/or payable to brokers for daily the contract was opened and the value at the time it was closed. variation margin is also recorded on the Statement of Assets and The Fund has maintained forward currency contracts to Liabilities. increase its portfolio exposure to the Indian rupee. During the year Investments in futures contracts may include certain risks, ended December 31, 2015, these Indian rupee forward currency which may be different from, and potentially greater than, those of contracts had U.S. dollar total values ranging from 1% to 3% of the underlying securities. To the extent the Fund uses futures, it is net assets. exposed to additional volatility and potential losses resulting from The Fund entered into forward currency contracts to hedge leverage. foreign currency risks associated with portfolio investments The Fund has maintained short Treasury futures contracts to denominated in the euro. During the year ended December 31, assist with the management of the portfolio’s interest rate

PAGE 12 ▪ D ODGE &COX G LOBAL B OND F UND NOTES TO FINANCIAL STATEMENTS

2015, these euro forward currency contracts had U.S. dollar total The following is a summary of the inputs used to value the values ranging from 0% to 2% of net assets. Fund’s holdings at December 31, 2015: Foreign currency translation The books and records of the LEVEL 2 Fund are maintained in U.S. dollars. Foreign currency amounts are LEVEL 1 (Other Significant Classification(a) (Quoted Prices) Observable Inputs) translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of Securities Debt Securities investment securities and other assets and liabilities are translated Government $ — $11,842,111 at the exchange rate as of the valuation date. Purchases and sales Government-Related — 6,001,062 of investment securities, income, and expenses are translated at Securitized — 9,013,306 the exchange rate prevailing on the transaction date. Corporate — 38,906,589 Short-term Investments Reported realized and unrealized gain (loss) on investments Money Market Fund 67,958 — includes foreign currency gain (loss) related to investment Repurchase Agreement — 905,000 transactions. Total Securities $67,958 $66,668,068 Reported realized and unrealized gain (loss) on foreign Other Financial Instruments(b) currency transactions and translation include the following: Treasury Futures Contracts holding/disposing of foreign currency, the difference between the Appreciation $31,033 $ — trade and settlement dates on securities transactions, the difference Depreciation (8,905) — between the accrual and payment dates on interest, and currency Interest Rate Swaps losses on the purchase of foreign currency in certain countries that Depreciation — (164,755) Forward Currency Contracts impose taxes on such transactions. Appreciation — 53,576 Indemnification Under the Trust’s organizational Depreciation — (33,612) documents, its officers and trustees are indemnified against certain (a) liabilities arising out of the performance of their duties to the U.S. Treasury securities were transferred from Level 1 to Level 2 during the year. There were no Level 3 securities at December 31, 2015 and 2014, and Trust. In addition, in the normal course of business the Trust there were no transfers to Level 3 during the year. enters into contracts that provide general indemnities to other (b) Represents unrealized appreciation/(depreciation). parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made NOTE 3—ADDITIONAL DERIVATIVES INFORMATION against the Trust that have not yet occurred. The Fund has entered into over-the-counter derivatives, such as forward currency contracts (each, a “Derivative”). Each Derivative NOTE 2—VALUATION MEASUREMENTS is subject to a negotiated master agreement (based on a form Various inputs are used in determining the value of the Fund’s published by the International Swaps and Derivatives Association investments. These inputs are summarized in the three broad levels (“ISDA”)) governing all Derivatives between the Fund and the listed below. relevant dealer counterparty. The master agreements specify ▪ Level 1: Quoted prices in active markets for identical securities (i) events of default and other events permitting a party to ▪ Level 2: Other significant observable inputs (including quoted terminate some or all of the Derivatives thereunder and (ii) the prices for similar securities, market indices, interest rates, credit process by which those Derivatives will be valued for purposes of risk, etc.) determining termination payments. If some or all of the ▪ Level 3: Significant unobservable inputs (including Fund Derivatives under a master agreement are terminated because of an management’s assumptions in determining the fair value event of default or similar event, the values of all terminated of investments) Derivatives must be netted to determine a single payment owed by The inputs or methodology used for valuing securities are not one party to the other. Some master agreements contain collateral necessarily an indication of the risk associated with investing in terms requiring the parties to post collateral in respect of some or those securities. all of the Derivatives thereunder based on the net market value of those Derivatives, subject to a minimum exposure threshold. To the extent amounts owed to the Fund by its counterparties are not collateralized, the Fund is at risk of those counterparties’ non- performance. The Fund attempts to mitigate counterparty credit risk by entering into Derivatives only with counterparties it believes to be of good credit quality and by monitoring the financial stability of those counterparties. At December 31, 2015, all offsetting Derivative positions qualify for netting pursuant to master netting arrangements. For financial reporting purposes, the Fund does not offset financial

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 13 NOTES TO FINANCIAL STATEMENTS assets and liabilities that are subject to a master netting At December 31, 2015, the tax basis components of distributable arrangement in the Statement of Assets and Liabilities. Gross earnings were as follows: assets and liabilities related to Derivatives are presented as Unrealized appreciation $ 104,514 “unrealized appreciation on forward currency contracts” and Unrealized depreciation (5,708,115) “unrealized depreciation on forward currency contracts,” Net unrealized depreciation (5,603,601) respectively, in the Statement of Assets and Liabilities. Derivative Undistributed ordinary income — Capital loss carryforward(a) (775,303) information by counterparty is presented in the Portfolio of Deferred loss(b) (196,120) Investments. At December 31, 2015, no collateral is pledged or (a) Represents accumulated capital loss as of December 31, 2015, which may held by the Fund for Derivatives. be carried forward to offset future capital gains. No expiration Short-term $469,709 NOTE 4—RELATED PARTY TRANSACTIONS Long-term 305,594 Management fees Under a written agreement approved by a $775,303 unanimous vote of the Board of Trustees, the Fund pays an annual (b) Represents net realized specified loss incurred between November 1, 2015 management fee of 0.50% of the Fund’s average daily net assets to and December 31, 2015. As permitted by tax regulations, the Fund has elected to treat this loss as arising in 2016. Dodge & Cox, investment manager of the Fund. Until April 30, Fund management has reviewed the tax positions for the open 2016, Dodge & Cox has contractually agreed to reimburse the period applicable to the Fund, and has determined that no Fund for all ordinary expenses to the extent necessary to maintain provision for income tax is required in the Fund’s financial the ratio of total operating expenses to average net assets at 0.60%. statements. The agreement is renewable annually thereafter and is subject to termination upon 30 days’ written notice by either party. This NOTE 6—LOAN FACILITIES expense reimbursement agreement has been in effect since the Pursuant to an exemptive order issued by the Securities and Fund’s inception. Exchange Commission (SEC), the Fund may participate in an Fund officers and trustees All officers and two of the interfund lending facility (Facility). The Facility allows the Fund trustees of the Trust are officers or employees of Dodge & Cox. to borrow money from or loan money to the Funds. Loans under The Trust pays a fee only to those trustees who are not affiliated the Facility are made for temporary or emergency purposes, such as with Dodge & Cox. to fund shareholder redemption requests. Interest on borrowings is Share ownership At December 31, 2015, Dodge & Cox the average of the current repurchase agreement rate and the bank owned 14% of the Fund’s outstanding shares. loan rate. There was no activity in the Facility during the year. All Funds in the Trust participate in a $500 million NOTE 5—INCOME TAX INFORMATION AND committed credit facility (Line of Credit) with State Street Bank DISTRIBUTIONS TO SHAREHOLDERS and Trust Company, to be utilized for temporary or emergency A provision for federal income taxes is not required since the Fund purposes to fund shareholder redemptions or for other short-term intends to continue to qualify as a regulated investment company liquidity purposes. The maximum amount available to the Fund is under Subchapter M of the Internal Revenue Code and distribute $250 million. Each Fund pays an annual commitment fee on its all of its taxable income to shareholders. Distributions are pro-rata portion of the Line of Credit. For the year ended determined in accordance with income tax regulations, and such December 31, 2015, the Fund’s commitment fee amounted to $250 and is reflected as a Miscellaneous Expense in the Statement of amounts may differ from net investment income and realized gains Operations. Interest on borrowings is charged at the prevailing for financial reporting purposes. Financial reporting records are rate. There were no borrowings on the Line of Credit during the adjusted for permanent book to tax differences at year end to year. reflect tax character.

Book to tax differences are primarily due to differing NOTE 7—PURCHASES AND SALES OF INVESTMENTS treatments of wash sales, net short-term realized gain (loss), foreign For the year ended December 31, 2015, purchases and sales of capital gain taxes, foreign currency realized gain (loss), Treasury securities, other than short-term securities and U.S. government futures contracts, and interest rate swaps. At December 31, 2015, securities, aggregated $38,643,970 and $27,999,196, respectively. the cost of investments for federal income tax purposes was For the year ended December 31, 2015, purchases and sales of U.S. $72,339,627. government securities aggregated $10,835,441 and $9,365,464, Distributions during the periods noted below were respectively. characterized as follows for federal income tax purposes: Year Ended Eight Months Ended NOTE 8—SUBSEQUENT EVENTS December 31, 2015 December 31, 2014 Fund management has determined that no material events or Ordinary income $— $650,780 transactions occurred subsequent to December 31, 2015, and ($0.144 per share) through the date of the Fund’s financial statements issuance, Long-term capital gain — — which require additional disclosure in the Fund’s financial statements.

PAGE 14 ▪ D ODGE &COX G LOBAL B OND F UND FINANCIAL HIGHLIGHTS

Period from May 1, 2014 SELECTED DATA AND RATIOS Year Ended (commencement of Fund operations) (for a share outstanding throughout the period) December 31, 2015 to December 31, 2014 Net asset value, beginning of period $10.31 $10.73 Income from investment operations: Net investment income 0.34 0.16 Net 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 $65 Ratio 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

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 Global Bond Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations 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 generally accepted 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 15 BOARD APPROVAL OF FUNDS’ INVESTMENT whether to renew the Agreements. The Board, including the MANAGEMENT AGREEMENTS AND Independent Trustees, subsequently concluded that the existing MANAGEMENT FEES Agreements are fair and reasonable and voted to approve the (unaudited) Agreements. In considering the Agreements, the Board, including The Board of Trustees is responsible for overseeing the the Independent Trustees, did not identify any single factor or performance of the Dodge & Cox Funds’ investment manager and particular information as all-important or controlling. In reaching determining whether to continue the Investment Management the decision to approve the Agreements, the Board considered Agreements between the Funds and Dodge & Cox each year (the several factors, discussed below, to be key factors and reached the “Agreements”). At a meeting of the Board of Trustees of the Trust conclusions described below. held on December 16, 2015, the Trustees, by a unanimous vote (including a separate vote of those Trustees who are not NATURE, QUALITY, AND EXTENT OF THE SERVICES “interested persons” (as defined in the Investment Company Act The Board considered that Dodge & Cox provides a wide range of of 1940) (the “Independent Trustees”)), approved the renewal of services to the Funds in addition to portfolio management and that the Agreements for an additional one-year term through December the quality of these services has been excellent in all respects. The 31, 2016 with respect to each Fund. During the course of the year, extensive nature of services provided by Dodge & Cox has been the Board received a wide variety of materials relating to the documented in materials provided to the Board and in investment management and administrative services provided by presentations made to the Board throughout the year. In Dodge & Cox and the performance of each of the Funds. particular, the Board considered the nature, quality, and extent of portfolio management, administrative, and shareholder services INFORMATION RECEIVED performed by Dodge & Cox. With regard to portfolio management In advance of the meeting, the Board, including each of the services, the Board considered Dodge & Cox’s established long- Independent Trustees, requested, received, and reviewed materials term history of care and conscientiousness in the management of relating to the Agreements and the services provided by the Funds; its demonstrated consistency in investment approach Dodge & Cox. The Independent Trustees retained Morningstar® to and depth; the background and experience of the Dodge & Cox prepare an independent expense and performance summary for each Investment Policy Committee, International Investment Policy Fund and comparable funds managed by other advisers identified by Committee, Global Stock Investment Policy Committee, Fixed Morningstar. The Morningstar materials included information Income Investment Policy Committee, and Global Bond regarding advisory fee rates, expense ratios, and transfer agency, Investment Policy Committee, and research analysts responsible custodial, and distribution expenses, as well as appropriate for managing the Funds; its methods for assessing the regulatory performance comparisons to each Fund’s peer group and an index or and investment climate in various jurisdictions; Dodge & Cox’s combination of indices. The Morningstar materials also included a overall high level of attention to its core investment management comparison of expenses of various share classes offered by function; and its commitment to the Funds and their shareholders. comparable funds. The materials reviewed by the Board contained In the area of administrative and shareholder services, the Board information concerning, among other things, Dodge & Cox’s considered the excellent quality of Dodge & Cox’s work in areas profitability, financial results and condition, advisory fee revenue, such as compliance, legal services, trading, proxy voting, and separate account and sub-adviser fund fee schedules. The Board technology, oversight of the Funds’ transfer agent and custodian, additionally considered the Funds’ brokerage commissions, turnover tax compliance, and shareholder communication through its rates, sales and redemption data and the significant investment that website and other means. The Board also noted Dodge & Cox’s Dodge & Cox makes in research used in managing the Funds. The diligent disclosure policy, its favorable compliance record, and its Board received and reviewed memoranda and related materials reputation as a trusted, shareholder-friendly mutual fund family. In addressing, among other things, Dodge & Cox’s services to the addition, the Board considered that Dodge & Cox manages Funds; how Dodge & Cox Funds’ fees compare to fees of peer group approximately $185 billion in Fund assets with fewer professionals funds; the different fees, services, costs, and risks associated with than most comparable funds, and that on average these other accounts managed by Dodge & Cox as compared to the professionals have more experience and longer tenure than Dodge & Cox Funds; and the ways in which the Funds realize investment professionals at comparable funds. The Board also economies of scale. Throughout the process of reviewing the noted that Dodge & Cox is an investment research-oriented firm services provided by Dodge & Cox and preparing for the meeting, with no other business endeavors to distract management’s the Independent Trustees found Dodge & Cox to be open, attention from its research efforts, and that its investment forthright, detailed, and very helpful in answering questions about professionals adhere to a consistent investment approach across all issues. The Board received copies of the Agreements and a the Funds. The Board further considered the favorable stewardship memorandum from the independent legal counsel to the grades given by Morningstar to each of the Funds and the “Gold” Independent Trustees discussing the factors generally regarded as analyst rating awarded by Morningstar to all of the Funds except appropriate to consider in evaluating advisory arrangements. The the Global Bond Fund. The Board concluded that it was satisfied Trust’s Contract Review Committee, consisting solely of with the nature, extent, and quality of investment management Independent Trustees, met with the independent legal counsel on and other services provided to the Funds by Dodge & Cox. November 11, 2015, and again on December 16, 2015, to discuss

PAGE 16 ▪ D ODGE &COX G LOBAL B OND F UND INVESTMENT PERFORMANCE The Board reviewed information regarding the fee rates The Board considered short-term and long-term investment Dodge & Cox charges to separate accounts and subadvised funds performance for each Fund (including periods of outperformance or that have investment programs similar to those of the Funds, underperformance) as compared to both relevant indices and the including instances where separate account and sub-advised fund performance of such Fund’s peer group. The Board noted that the fees are lower than Fund fees. The Board considered differences in Funds had weak absolute and relative performance in 2015, but the nature and scope of services Dodge & Cox provides to the remained solid performers over longer periods. The Board Funds as compared to other client accounts, differences in determined after extensive review and inquiry that Dodge & Cox’s regulatory, litigation, and other risks as between Dodge & Cox historic, long-term, team-oriented, bottom-up investment approach Funds and other types of clients. The Board also noted that remains consistent and that Dodge & Cox continues to be different markets exist for mutual fund and institutional separate distinguished by its integrity, transparency, and independence. The account management services. With respect to non-U.S. funds Board considered that the performance of the Funds is the result of sponsored and managed by Dodge & Cox that are comparable to a team-oriented investment management process that emphasizes a the Funds in many respects, the Board noted that the fee rates long-term investment horizon, comprehensive independent charged by Dodge & Cox are the same as or higher than the fee research, price discipline, low cost and low portfolio turnover. The rates charged to the Funds. After consideration of these matters, Board also considered that the investment performance delivered the Board concluded that the overall costs incurred by the Funds by Dodge & Cox to the Funds appeared to be consistent with the for the services they receive (including the management fee paid relevant performance delivered for other clients of Dodge & Cox. to Dodge & Cox) are reasonable and that the fees are acceptable The Board concluded that Dodge & Cox has delivered favorable based upon the qualifications, experience, reputation, and long-term performance for Fund investors consistent with the long- performance of Dodge & Cox and the low overall expense ratios of term investment strategies being pursued by the Funds. the Funds. Profitability and Costs of Services to Dodge & Cox; COSTS AND ANCILLARY BENEFITS “Fall-out” Benefits. The Board reviewed reports of Costs of Services to Funds: Fees and Expenses. The Board Dodge & Cox’s financial position, profitability, and estimated considered each Fund’s management fee rate and expense ratio overall value, and considered Dodge & Cox’s overall profitability relative to each Fund’s peer group and relative to management fees within its context as a private, employee-owned S-Corporation charged by Dodge & Cox to other clients. In particular, the Board and relative to the favorable services provided. The Board noted in considered that the Funds continue to be substantially below their particular that Dodge & Cox’s profits are not generated by high fee peer group median in expense ratios and that many media and rates, but reflect an extraordinarily streamlined, efficient, and industry reports specifically comment on the low expense ratios of focused business approach toward investment management. The the Funds, which have been a defining characteristic of the Funds Board recognized the importance of Dodge & Cox’s profitability— for many years. The Board also evaluated the operating structures which is derived solely from management fees and does not of the Funds and Dodge & Cox, noting that the Funds do not include other business ventures—to maintain its independence, charge front-end sales commissions or distribution fees, and stability, company culture and ethics, and management continuity. Dodge & Cox bears, among other things, the significant cost of The Board also considered that the compensation/profit structure third party research, reimbursement for recordkeeping and at Dodge & Cox includes a return on shareholder employees’ administrative costs to third-party retirement plan administrators, investment in the firm, which is vital for remaining independent and administrative and office overhead. and facilitating retention of management and investment The Board noted that expenses are well below industry professionals. The Board considered independent research averages. When compared to peer group funds, the Funds are in indicating that firms that grow organically, rather than through the quartile with the lowest expense ratios. The Board also acquisition, tend to have better performance. Key to organic considered that the Funds receive numerous administrative, growth is the ability to retain talented and experienced analysts, regulatory compliance, legal, technology and shareholder support portfolio managers and other professionals. services from Dodge & Cox without any additional administrative The Board also considered that in January 2015, fee and the fact that the Funds have relatively low transaction Dodge & Cox closed the International Stock Fund to new costs and portfolio turnover rates. The Board noted the Funds’ investors to pro-actively manage the growth of the Fund. The unusual single-share-class structure and reviewed Morningstar data Stock Fund and Balanced Fund were similarly closed to new showing that the few peer group funds with lower expense ratios investors during periods of significant growth in the past. While often have other share classes with significantly higher expense these actions are intended to benefit existing shareholders, the ratios. In this regard, the Board considered that many of the Funds’ effect is to reduce potential revenues to Dodge & Cox from new shareholders would not be eligible to purchase comparably-priced shareholders. The Board also considered potential “fall-out” shares of many peer group funds, which typically make their lower- benefits (including the receipt of research from unaffiliated brokers priced share classes available only to institutional investors. The and reputational benefits to non-U.S. funds sponsored and Board determined that the Funds provide access for small investors managed by Dodge & Cox) that Dodge & Cox might receive as a to high quality investment management at a relatively low cost.

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 17 result of its association with the Funds and determined that they CONCLUSION are acceptable. The Board also noted that Dodge & Cox continues Based on their evaluation of all material factors and assisted by the to invest substantial sums in its business in order to provide advice of independent legal counsel to the Independent Trustees, enhanced services, systems and research capabilities, all of which the Board, including the Independent Trustees, concluded that the benefit the Funds. The Board concluded that Dodge & Cox’s advisory fee structure was fair and reasonable, that each Fund was profitability is the keystone of its independence, stability and long- paying a competitive fee for the services provided, that the scope term investment performance and that the profitability of Dodge and quality of Dodge & Cox’s services has provided substantial & Cox’s relationship with the Funds (including fall-out benefits) is value for Fund shareholders over the long term, and that approval fair and reasonable. of the Agreements was in the best interests of each Fund and its shareholders. ECONOMIESOFSCALE The Board considered whether there have been economies of scale FUND HOLDINGS with respect to the management of each Fund, whether the Funds The Fund provides a complete list of its holdings four times each have appropriately benefited from any economies of scale, and fiscal year, as of the end of each quarter. The Fund files the lists whether the management fee rate is reasonable in relation to the with the Securities and Exchange Commission (SEC) on Form Fund assets and any economies of scale that may exist. In the N-CSR (second and fourth quarters) and Form N-Q (first and Board’s view, any consideration of economies of scale must take third quarters). Shareholders may view the Fund’s Forms N-CSR account of the Funds’ low fee structure and the considerable and N-Q on the SEC’s website at sec.gov. Forms N-CSR and N-Q efficiencies of the Funds’ organization and fee structure that has may also be reviewed and copied at the SEC’s Public Reference been realized by shareholders from the time of each Fund’s Room in Washington, DC. Information regarding the operations inception (i.e., from the first dollar). An assessment of economies of the Public Reference Room may be obtained by calling of scale must also take into account that Dodge & Cox invests 202-942-8090 (direct) or 800-732-0330 (general SEC number). A significant time and resources in each new Fund for months (and list of the Fund’s quarter-end holdings is also available at sometimes years) prior to launch; in addition, expenses are capped, dodgeandcox.com on or about 15 days following each quarter end which means that Dodge & Cox earns no revenue and subsidizes and remains available on the web site until the list is updated in the operations of a new Fund for a period of time until it reaches the subsequent quarter. scale. In addition, the Board noted that Dodge & Cox has shared PROXY VOTING economies of scale by adding or enhancing services to the Funds For a free copy of the Fund’s proxy voting policies and procedures, over time, and that the internal costs of providing investment please call 800-621-3979, visit the Fund’s website at management, up-to-date technology, administrative, legal, and www.dodgeandcox.com, or visit the SEC’s website at sec.gov. compliance services to the Funds continue to increase. For Information regarding how the Fund voted proxies relating to example, Dodge & Cox has increased its global research staff and portfolio securities during the most recent 2-month period ending investment resources over the years to address the increased June 30 is also available at dodgeandcox.com or at sec.gov. complexity of investing in multinational and non-U.S. companies. HOUSEHOLD MAILINGS In addition, Dodge & Cox has made substantial expenditures in The Fund routinely mails shareholder reports and summary other staff, technology, cybersecurity, and infrastructure to enable prospectuses to shareholders and, on occasion, proxy statements. it to integrate credit and equity analyses and to be able to In order to reduce the volume of mail, when possible, only one implement its strategy in a more effective and secure manner. Over copy of these documents will be sent to shareholders who are part the last ten years, Dodge & Cox has increased its spending on of the same family and share the same residential address. third party research, data services, trading systems, technology, and If you have a direct account with the Funds and you do not recordkeeping service expenses at a rate that has significantly want the mailing of shareholder reports and summary prospectuses outpaced the Funds’ growth rate during the same period. combined with other members in your household, contact the The Board considered that Dodge & Cox has a history of Funds at 800-621-3979. Your request will be implemented within voluntarily limiting asset growth in several Funds that experienced 30 days. significant inflows by closing them to new investors in order to protect the Funds’ ability to achieve good investment returns for shareholders. The Board also observed that, even without fee breakpoints, the Funds are competitively priced in a very competitive market and that having a low fee from inception is better for shareholders than starting with a higher fee and adding breakpoints. The Board concluded that the current Dodge & Cox fee structure is fair and reasonable and adequately shares economies of scale that may exist.

PAGE 18 ▪ D ODGE &COX G LOBAL B OND F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge & Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

D ODGE &COX G LOBAL B OND F UND ▪ PAGE 19 Global Bond Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San Francisco, California 94104 (415) 981-1710

Annual Report December 31, 2015

Global Stock Fund ESTABLISHED 2008

TICKER: DODWX

12/15 GSF AR Printed on recycled paper TO OUR SHAREHOLDERS

The Dodge & Cox Global Stock Fund had a total return of –8.1% analyst assumptions, and conducted further due diligence. In for the year ending December 31, 2015, compared to a return of addition, we conducted macroeconomic reviews to evaluate the –0.9% for the MSCI World Index. key factors affecting a company’s capital structure, end-market demand, and relative competitiveness. Through this MARKET COMMENTARY comprehensive process, we reaffirmed our view that the Fund’s Global growth expectations declined during 2015. Slower growth holdings have attractive valuations relative to their fundamental in China, the largest consumer of raw materials worldwide, was of outlook over our three- to five-year investment horizon. particular significance as it negatively impacted commodity prices, During the year, valuation disparities widened globally: as well as the currencies of commodity-driven economies. Global companies with higher valuations became more expensive relative copper prices plummeted 24% and oil prices plunged 35%. The to companies with lower valuations. As valuations became more Brazilian real and South African rand depreciated 33% and 25%, attractive, we added selectively to existing holdings, including respectively, relative to the U.S. dollar. Prospects for higher U.S. Bank of America, EMC Corp., HP Inc., and Standard Chartered.(b) interest rates, coupled with the U.S. dollar’s sharp appreciation We also identified 6 new investment opportunities (including against major global currencies, further exacerbated conditions for Anthem, Cisco, JD.com, and Priceline) and exited 17 holdings those emerging market economies in need of external financing. (including PayPal and Unilever). As a result, while the MSCI Emerging Markets index was down We continue to be optimistic about the long-term outlook for 6% in local currency for the year, it was down 15% in U.S. dollars. the portfolio. Our value-oriented approach has led us to invest in In Europe, a dampened economic recovery and a weaker companies where we believe the long-term potential is not inflation outlook led the European Central Bank to extend its reflected in the current price. Three examples—Standard asset purchase program aimed at reviving the economy. The Bank Chartered, Hewlett Packard Enterprise, and HP Inc.—are of Japan, in turn, introduced measures to supplement its already discussed below. large Quantitative and Qualitative Easing Program, as economic activity softened and inflation hovered around zero. In contrast, Standard Chartered economic activity in the United States expanded at a moderate Standard Chartered, domiciled in the United Kingdom, provides pace: household spending and business investment increased, the consumer and wholesale banking services to customers in Asia, housing market strengthened, and labor market conditions Africa, and the Middle East. The company has a strong global continued to improve, with solid job gains and reduced franchise with a broad network across the developing world that unemployment. After a significant selloff in August and would be very difficult to replicate. Standard Chartered’s global September, the S&P 500 rebounded during the fourth quarter to payments and trade business is a particular strength: local roots finish the year up just over 1%. from its longstanding presence allow for local currency funding, and cooperation across the network provides integrated wholesale INVESTMENT STRATEGY banking services to clients. During 2015, Standard Chartered’s As a value-oriented manager, 2015 was a challenging year for performance suffered from the slowdown in emerging markets, absolute and relative performance. Across equities, value stocks large fines from legacy issues, rising restructuring costs, and (the lower valuation portion of the market) underperformed deteriorating asset quality. As a result, Standard Chartered’s stock growth stocks (the higher valuation portion of the market) by one was down 39%(c) in U.S. dollars and its valuation fell to 0.6 times of the widest spreads since the global financial crisis. The Fund was tangible book value, a historically low level.(d) significantly affected by this performance divergence. For example, In 2015, we met with Standard Chartered’s new executive in the United States, many higher-valuation growth companies, team on multiple occasions to better understand its strategy and not held by the Fund, outperformed significantly. In addition, priorities. This management team is focused on streamlining the emerging markets collectively underperformed developed markets. organization and prioritizing profitability over growth. They have a The Fund’s investments in individual companies domiciled in a realistic assessment of current balance sheet issues, as evidenced by number of especially weak emerging market countries (including the recent $5.1 billion capital raise that provides ample new Brazil, South Africa, and Turkey) negatively impacted results. capital to fortify the balance sheet, resolve legacy issues, and Finally, several individual holdings—HP Inc(a), MTN Group, accelerate their restructuring plans. The company seeks to cut Petrobras, and Standard Chartered—meaningfully detracted from costs, exit peripheral businesses, and increase investments to results for the year. improve systems and further diversify its geographic footprint. In Throughout 2015, we continued to revisit and retest our addition, Standard Chartered has been able to attract high-caliber thinking on many of the Fund’s holdings. Our equity and fixed talent with some key new hires. Based on the bank’s leading income teams regularly work together to evaluate risk and reward franchise, strong balance sheet, management’s initiatives, and low as we look at investment opportunities around the world. As part valuation, we recently added to the holding. On December 31, of our bottom-up research process, our investment teams Standard Chartered was a 2.1% position in the Fund. thoroughly investigated individual company concerns, challenged

PAGE 2 ▪ D ODGE &COX G LOBAL S TOCK F UND Hewlett Packard Enterprise and HP Inc. attractively valued investments in both developed and emerging After providing strong returns in 2013 and 2014, Hewlett-Packard markets and continue to be optimistic about the long-term outlook was the Fund’s largest detractor from results during 2015. for the portfolio. Hewlett-Packard recently split into two entities—Hewlett Packard Our experienced and stable team has weathered past periods Enterprise and HP Inc.—which should result in greater focus and of market turbulence by remaining steadfast in our investment flexibility for each company to achieve its strategic goals. To assess process and philosophy. Our approach—constructing a diversified secular challenges and evaluate the risks and opportunities of each portfolio through in-depth, independent research, a three- to five- stand-alone business, we met numerous times with their year investment horizon, and a focus on valuation relative to management teams and competitors and spoke with industry underlying fundamentals—continues to guide us through this consultants. As a result, Hewlett Packard Enterprise was a 1.8% period. We remain confident that our enduring value-oriented position and HP Inc. was a 1.4% position in the Fund on approach will benefit the Fund in the years ahead. December 31. Thank you for your continued confidence in our firm. As Hewlett Packard Enterprise, one of the largest vendors in always, we welcome your comments and questions. information technology (IT), consists of the enterprise technology infrastructure, software, and services segments of the old For the Board of Trustees, Hewlett-Packard. We acknowledge the company faces headwinds: the shift to the cloud has negatively impacted all on-premise IT vendors, continued public cloud adoption will likely erode the company’s market share, and competition is keen. Despite these risks, we believe Hewlett Packard Enterprise is an attractive Charles F. Pohl, Dana M. Emery, investment due to its strong market positions across its portfolio Chairman President (e.g., top provider of servers, number two position in IT services), scale advantages, and opportunities to improve its margin January 29, 2016 structure. Meg Whitman—the CEO of Hewlett Packard (a) After Hewlett-Packard Co. split into two companies, HP Inc. retained the Enterprise—has overseen sound acquisitions (e.g., 3Par), new HPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett-Packard product launches, and cost reduction programs during her tenures Co.’s performance through October 2015. at Hewlett-Packard and eBay. Management is actively cutting (b) The use of specific examples does not imply that they are more attractive investments than the Fund’s other holdings. costs and retooling its product and service offerings to improve the (c) All returns are total returns unless otherwise noted. company’s competitiveness. Margins in the Enterprise Services (d) Unless otherwise specified, all weightings and characteristics are as of segment should expand as the company optimizes its contract mix December 31, 2015. and delivery models. The company trades at a compelling valuation (eight times forward estimated 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 the stronger U.S. dollar, consensus estimates have the company’s sales declining approximately 10% in 2016. Many investors believe a shrinking market for hardware and ink may be too difficult to overcome; we believe this view of the company’s prospects is too pessimistic. HP’s management is aggressively cutting costs and has plans to introduce more new products. For example, HP has portions of its printing business (e.g., high-end graphics production) that are currently growing and may increase share in the established copier market and in the more nascent 3D print market. Moreover, the company generates robust free cash flow. Trading at seven times forward estimated earnings, HP remains an attractive investment opportunity with strong business prospects given its large valuation discount to the overall market.

IN CLOSING Global equity valuations are attractive: the MSCI World traded at 15.7 times forward estimated earnings (compared to a 20-year average of 16.2 times) with a 2.6% dividend yield at year end. Valuation disparities have widened significantly, creating more opportunities for value-oriented investors. We are identifying

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 3 ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the MSCI World by 7.2 percentage Independent Organization points in 2015. Dodge & Cox is one of the largest privately owned investment managers in the world. We remain committed to independence, Key Detractors from Relative Results with a goal of providing the highest quality investment ▪ The Fund’s average overweight position in emerging markets management service to our existing clients. (17% versus 0% for the MSCI World), a particularly weak Over 85 Years of Investment Experience region of the portfolio (down 21%), significantly detracted Dodge & Cox was founded in 1930. We have a stable and well- from results. qualified team of investment professionals, most of whom have ▪ Relative returns in the Financials sector (down 15% spent their entire careers at Dodge & Cox. compared to down 4% for the MSCI World sector), especially in the emerging markets, hurt performance. BR Experienced Investment Team Malls (down 53%), Kasikornbank (down 39%), Standard The Global Stock Investment Policy Committee, which is the Chartered (down 39%), and ICICI Bank (down 28%) all decision-making body for the Global Stock Fund, is a seven- detracted. member committee with an average tenure at Dodge & Cox of ▪ Weak returns in the Consumer Staples sector (down 18% 19 years. compared to up 6% for the MSCI World sector) hurt results. One Business with a Single Research Office Wal-Mart (down 27%) performed poorly. Dodge & Cox manages equity (domestic, international, and ▪ The Fund’s holdings in the Telecommunication Services global), fixed income (domestic and global), and balanced sector (down 24% compared to up 2% for the MSCI World investments, operating from one office in San Francisco. sector) had a negative impact. MTN Group (down 53%) was Consistent Investment Approach a meaningful detractor. Our team decision-making process involves thorough, bottom- ▪ Additional detractors included Teck Resources (down 69% up fundamental analysis of each investment. since date of purchase), Petrobras (down 55%), HP Inc. (down 37%), and Time Warner (down 23%). Long-Term Focus and Low Expenses We invest with a three- to five-year investment horizon, which Key Contributors to Relative Results has historically resulted in low turnover relative to our peers. ▪ Strong returns from the Fund’s holdings in the Health Care We manage Funds that maintain low expense ratios. Providers and Services industry (up 18% compared to up 12% for the MSCI World industry) contributed to results. Risks: The Fund is subject to market risk, meaning holdings in Cigna (up 42%) and UnitedHealth Group (up 18%) were the Fund may decline in value for extended periods due to the notable performers. financial prospects of individual companies, or due to general ▪ The Fund’s holdings in the Automobiles industry (up 11% market and economic conditions. Investing in non-U.S. compared to up 1% for the MSCI World industry) aided securities may entail risk due to foreign economic and political performance. Nissan Motor (up 24%) and Honda Motor (up developments; this risk may be increased when investing in 13%) performed well. emerging markets. The Fund is also subject to currency risk. ▪ Please read the prospectus and summary prospectus for specific Additional contributors included Nintendo (up 61% to date details regarding the Fund’s risk profile. of sale), New Oriental Education & Technology (up 54%), Alphabet (up 45%), and Time Warner Cable (up 25%).

PAGE 4 ▪ D ODGE &COX G LOBAL S TOCK F UND GROWTH OF $10,000 SINCE INCEPTION FOR AN INVESTMENT MADE ON MAY 1, 2008

$30,000 Returns represent past performance and do not guarantee future Dodge & Cox Global Stock Fund $12,800 results. Investment return and share price will fluctuate with 20,000 MSCI World Index $12,978 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is

10,000 updated and published monthly. Visit the Fund’s website at dodgeandcox.com or call 800-621-3979 for current performance figures. The Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any 4,000 income taxes payable by shareholders on these distributions or on 5/1/08 12/31/09 12/31/11 12/31/13 12/31/15 Fund share redemptions. Index returns include dividends but, unlike Fund returns, do not reflect fees or expenses. The MSCI AVERAGE ANNUAL TOTAL RETURN World Index is a broad-based, unmanaged equity market index FOR PERIODS ENDED DECEMBER 31, 2015 aggregated from 23 developed market country indices, including Since the United States. MSCI makes no express or implied warranties Inception or representations and shall have no liability whatsoever with 1 Year 3 Years 5 Years (5/1/08) respect to any MSCI data contained herein. The MSCI data may Dodge & Cox Global Stock Fund –8.05% 9.41% 7.04% 3.27% not be further redistributed or used as a basis for other indices or MSCI World Index –0.89 9.63 7.59 3.45 any securities or financial products. This report is not approved, reviewed, or produced by MSCI. MSCI World is a service mark of MSCI Barra.

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 899.80 $2.99 Based on Hypothetical 5% Yearly Return 1,000.00 1,022.06 3.18 * Expenses are equal to the Fund’s annualized expense ratio of 0.62%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 5 FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $10.46 Equity Total Net Assets (billions) $5.7 Securities: 97.8% 2014 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 83 Fund Inception 2008 No sales charges or distribution fees Net Cash Investment Manager: Dodge & Cox, San Francisco. Managed by & Other:(d) 2.2% the Global Stock Investment Policy Committee, whose seven members’ average tenure at Dodge & Cox is 19 years.

MSCI MSCI PORTFOLIO CHARACTERISTICS Fund World REGION DIVERSIFICATION (%)(e) Fund World Median Market Capitalization (billions) $31 $10 United States 50.6 58.7 Weighted Average Market Capitalization Europe (excluding United Kingdom) 19.7 17.2 (billions) $94 $93 Pacific (excluding Japan) 10.6 4.3 Price-to-Earnings Ratio(b) 13.3x 15.7x United Kingdom 6.2 7.4 Countries Represented 20 23 Japan 3.4 9.0 Emerging Markets (Brazil, China, India, Africa/Middle East 3.4 0.3 Mexico, South Africa, South Korea, Latin America 3.3 0.0 Thailand, Turkey) 16.9% 0.0% Canada 0.6 3.1

MSCI TEN LARGEST HOLDINGS (%)(c) Fund SECTOR DIVERSIFICATION (%) Fund World Alphabet, Inc. (United States) 3.7 Financials 23.6 20.8 Time Warner Cable, Inc. (United States) 3.1 Consumer Discretionary 21.3 13.3 Samsung Electronics Co., Ltd. (South Korea) 2.9 Information Technology 20.5 14.2 Bank of America Corp. (United States) 2.6 Health Care 14.8 13.5 Naspers, Ltd. (South Africa) 2.6 Energy 6.4 6.1 Roche Holding AG (Switzerland) 2.4 Industrials 3.7 10.7 Novartis AG (Switzerland) 2.3 Materials 3.0 4.4 Sanofi (France) 2.3 Telecommunication Services 2.6 3.4 Time Warner, Inc. (United States) 2.2 Consumer Staples 1.9 10.4 Standard Chartered PLC (United Kingdom) 2.1 Utilities 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.

PAGE 6 ▪ D ODGE &COX G LOBAL S TOCK F UND CONSOLIDATED PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS: 94.2%

SHARES VALUE SHARES VALUE CONSUMER DISCRETIONARY: 21.3% DIVERSIFIED FINANCIALS: 7.7% AUTOMOBILES & COMPONENTS: 5.4% Bank of New York Mellon Corp. Bayerische Motoren Werke AG (Germany) 620,200 $ 65,318,528 (United States) 1,497,200 $ 61,714,584 Honda Motor Co., Ltd. (Japan) 3,109,700 99,639,572 Capital One Financial Corp. (United States) 1,206,900 87,114,042 Mahindra & Mahindra, Ltd. (India) 2,543,374 48,632,867 Charles Schwab Corp. (United States) 3,670,800 120,879,444 Nissan Motor Co., Ltd. (Japan) 5,816,300 60,913,271 Credit Suisse Group AG (Switzerland) 4,566,743 98,702,568 Yamaha Motor Co., Ltd. (Japan) 1,448,400 32,456,868 Goldman Sachs Group, Inc. (United States) 271,900 49,004,537 306,961,106 Haci Omer Sabanci Holding AS (Turkey) 7,957,588 22,592,521 CONSUMER DURABLES & APPAREL: 0.5% 440,007,696 Coach, Inc. (United States) 971,500 31,797,195 INSURANCE: 2.1% AEGON NV (Netherlands) 11,121,459 63,211,053 CONSUMER SERVICES: 0.5% Aviva PLC (United Kingdom) 7,893,600 60,045,606 New Oriental Education & Technology Group, Inc. ADR (Cayman Islands/China) 853,567 26,776,397 123,256,659 REAL ESTATE: 1.6% MEDIA: 12.0% BR Malls Participacoes SA (Brazil) 7,033,500 19,616,305 Comcast Corp., Class A (United States) 1,265,400 71,406,522 Hang Lung Group, Ltd. (Hong Kong) 14,438,300 46,854,310 DISH Network Corp., Class A(a) Hang Lung Properties, Ltd. (Hong Kong) 10,126,100 23,048,161 (United States) 786,300 44,960,634 Grupo Televisa SAB ADR (Mexico) 1,412,300 38,428,683 89,518,776 Liberty Global PLC LiLAC, Series C(a) 1,273,040,782 (United Kingdom) 63,185 2,716,955 HEALTH CARE: 14.8% Liberty Global PLC, Series C(a) HEALTH CARE EQUIPMENT & SERVICES: 6.3% (United Kingdom) 1,566,800 63,878,436 Anthem, Inc. (United States) 341,688 47,644,975 Naspers, Ltd. (South Africa) 1,059,300 145,212,803 Cigna Corp. (United States) 665,000 97,309,450 Television Broadcasts, Ltd. (Hong Kong) 2,599,500 10,716,579 Express Scripts Holding Co.(a) Time Warner Cable, Inc. (United States) 961,171 178,383,726 (United States) 1,286,600 112,461,706 Time Warner, Inc. (United States) 1,964,666 127,054,950 UnitedHealth Group, Inc. (United States) 868,900 102,217,396 682,759,288 359,633,527 RETAILING: 2.9% PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 8.5% JD.com, Inc. ADR(a) (Cayman Islands/China) 1,686,900 54,427,829 Bayer AG (Germany) 379,320 47,589,978 Target Corp. (United States) 615,600 44,698,716 Merck & Co., Inc. (United States) 644,400 34,037,208 The Priceline Group, Inc.(a) (United States) 53,200 67,827,340 Novartis AG (Switzerland) 949,500 81,160,026 166,953,885 Novartis AG ADR (Switzerland) 601,000 51,710,040 Roche Holding AG (Switzerland) 499,800 137,738,947 1,215,247,871 Sanofi (France) 1,549,862 132,386,941 CONSUMER STAPLES: 1.9% 484,623,140 FOOD & STAPLES RETAILING: 1.4% Wal-Mart Stores, Inc. (United States) 1,298,200 79,579,660 844,256,667 INDUSTRIALS: 3.7% FOOD, BEVERAGE & TOBACCO: 0.5% CAPITAL GOODS: 1.5% Anadolu Efes Biracilik ve Malt Sanayii AS Schneider Electric SA (France) 1,531,078 87,454,516 (Turkey) 4,023,248 26,059,236 105,638,896 COMMERCIAL & PROFESSIONAL SERVICES: 1.2% ADT Corp. (United States) 858,800 28,323,224 ENERGY: 5.6% Apache Corp. (United States) 1,028,432 45,734,371 Tyco International PLC (Ireland) 1,279,100 40,790,499 Baker Hughes, Inc. (United States) 1,494,087 68,952,115 69,113,723 National Oilwell Varco, Inc. (United States) 960,200 32,157,098 TRANSPORTATION: 1.0% Saipem SPA(a) (Italy) 4,771,043 38,352,249 FedEx Corp. (United States) 382,400 56,973,776 Schlumberger, Ltd. (Curacao/United States) 1,450,200 101,151,450 213,542,015 Weatherford International PLC(a) (Ireland) 3,779,375 31,708,956 INFORMATION TECHNOLOGY: 19.0% 318,056,239 SOFTWARE & SERVICES: 8.3% FINANCIALS: 22.3% Alphabet, Inc., Class A(a) (United States) 21,500 16,727,215 BANKS: 10.9% Alphabet, Inc., Class C(a) (United States) 253,399 192,299,433 Bank of America Corp. (United States) 8,918,400 150,096,672 Baidu, Inc. ADR(a) (Cayman Islands/China) 457,515 86,488,636 Barclays PLC (United Kingdom) 32,430,600 104,654,320 eBay, Inc.(a) (United States) 164,300 4,514,964 ICICI Bank, Ltd. (India) 19,126,282 75,457,113 Microsoft Corp. (United States) 2,124,100 117,845,068 Kasikornbank PCL- Foreign (Thailand) 12,934,700 53,474,818 Symantec Corp. (United States) 1,641,300 34,467,300 Siam Commercial Bank PCL- Foreign Synopsys, Inc.(a) (United States) 425,100 19,388,811 (Thailand) 5,156,300 17,016,303 471,731,427 Standard Chartered PLC (United Kingdom) 14,588,077 121,227,876 Wells Fargo & Co. (United States) 1,651,573 89,779,508 Yapi ve Kredi Bankasi AS (Turkey) 7,580,017 8,551,041 620,257,651

See accompanying Notes to Consolidated Financial Statements D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 7 CONSOLIDATED PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS (continued) SHORT-TERM INVESTMENTS: 2.7%

SHARES VALUE PAR VALUE VALUE TECHNOLOGY, HARDWARE & EQUIPMENT: 10.7% MONEY MARKET FUND: 0.1% Cisco Systems, Inc. (United States) 3,960,200 $ 107,539,231 SSgA U.S. Treasury Money Market Fund $ 5,773,394 $ 5,773,394 Corning, Inc. (United States) 2,500,900 45,716,452 EMC Corp. (United States) 4,470,200 114,794,736 REPURCHASE AGREEMENT: 0.2% (b) Hewlett Packard Enterprise Co. Fixed Income Clearing Corporation (United States) 6,642,900 100,972,080 0.08%, dated 12/31/15, due 1/4/16, HP, Inc. (United States) 6,760,100 80,039,584 maturity value $12,877,114 12,877,000 12,877,000 NetApp, Inc. (United States) 755,780 20,050,843 TREASURY BILL: 2.4% Samsung Electronics Co., Ltd. (South Korea) 72,517 77,435,944 Canadian Treasury Bill (Canada) 2/11/16 192,000,000 138,689,022 TE Connectivity, Ltd. (Switzerland) 1,022,115 66,038,850 TOTAL SHORT-TERM INVESTMENTS 612,587,720 (Cost $156,844,916) $ 157,339,416 1,084,319,147 TOTAL INVESTMENTS MATERIALS: 3.0% (Cost $5,425,996,198) 100.5% $5,738,858,162 Celanese Corp., Series A (United States) 876,500 59,014,745 OTHER ASSETS LESS LIABILITIES (0.5%) (31,079,480) LafargeHolcim, Ltd. (Switzerland) 656,020 32,871,626 NET ASSETS 100.0% $5,707,778,682 Linde AG (Germany) 327,710 47,568,194 Teck Resources, Ltd., Class B (Canada) 8,396,569 32,410,757 (a) Non-income producing 171,865,322 (b) Repurchase agreement is collateralized by U.S. Treasury Note 1.625%, TELECOMMUNICATION SERVICES: 2.6% America Movil SAB de CV, Series L 7/31/20. Total collateral value is $13,136,400. (Mexico) 12,229,000 8,585,738 Millicom International Cellular SA SDR In determining a company’s country designation, the Fund generally (Luxembourg) 822,900 46,870,485 references the country of incorporation. In cases where the Fund considers MTN Group, Ltd. (South Africa) 5,560,200 47,778,531 the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes or in other limited circumstances, the Fund uses Sprint Corp.(a) (United States) 12,730,600 46,084,772 the country designation of an appropriate broad-based market index. In 149,319,526 those cases, two countries are listed - the country of incorporation and the TOTAL COMMON STOCKS country designated by an appropriate index, respectively. (Cost $4,967,081,960) $5,375,286,465 ADR: American Depositary Receipt SDR: Swedish Depository Receipt PREFERRED STOCKS: 3.6% ENERGY: 0.8% Petroleo Brasileiro SA ADR(a) (Brazil) 14,428,003 49,055,210 FORWARD CURRENCY CONTRACTS Contract Amount FINANCIALS: 1.3% BANKS: 1.3% Deliver Unrealized Itau Unibanco Holding SA (Brazil) 11,092,063 72,481,734 Settlement Receive Foreign Appreciation/ Counterparty Date U.S. Dollar Currency (Depreciation) INFORMATION TECHNOLOGY: 1.5% Contracts to sell CHF: TECHNOLOGY, HARDWARE & EQUIPMENT: 1.5% Goldman Sachs 1/27/16 29,946,922 29,000,000 $ 966,230 Samsung Electronics Co., Ltd. (South Korea) 91,514 84,695,337 Goldman Sachs 2/3/16 30,516,647 30,000,000 527,618 TOTAL PREFERRED STOCKS UBS 2/3/16 30,404,686 30,000,000 415,658 (Cost $302,069,322) $ 206,232,281 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 17,635 HSBC 3/9/16 11,964,590 11,000,000 (8,710) $ 820,902

PAGE 8 ▪ D ODGE &COX G LOBAL S TOCK F UND See accompanying Notes to Consolidated Financial Statements CONSOLIDATED CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS

December 31, 2015 Year Ended Year Ended December 31, 2015 December 31, 2014 ASSETS: OPERATIONS: Investments, at value (cost $5,425,996,198) $5,738,858,162 Net investment income $ 86,138,246 $ 73,280,159 Unrealized appreciation on forward currency contracts 1,927,141 Net realized gain 153,809,472 160,901,823 Cash denominated in foreign currency (cost $739) 731 Net change in unrealized Cash 100 appreciation/depreciation (764,683,319) 67,737,521 Receivable for investments sold 5,858,071 Receivable for Fund shares sold 27,278,177 (524,735,601) 301,919,503 Dividends and interest receivable 11,146,371 Prepaid expenses and other assets 49,675 DISTRIBUTIONS TO 5,785,118,428 SHAREHOLDERS FROM: Net investment income (98,070,160) (72,474,215) LIABILITIES: Net realized gain (119,687,722) (138,830,388) Unrealized depreciation on forward currency contracts 1,106,239 Payable for investments purchased 14,773,671 Total distributions (217,757,882) (211,304,603) Payable for Fund shares redeemed 58,056,720 Management fees payable 2,927,968 FUND SHARE Accrued expenses 475,148 TRANSACTIONS: 77,339,746 Proceeds from sale of shares 1,649,174,317 2,482,518,668 Reinvestment of distributions 211,165,760 204,987,790 NET ASSETS $5,707,778,682 Cost of shares redeemed (1,305,398,436) (806,780,930) NET ASSETS CONSIST OF: Net increase from Fund share transactions 554,941,641 1,880,725,528 Paid in capital $5,342,564,016 Undistributed net investment income 337,857 Total increase/(decrease) in net assets (187,551,842) 1,971,340,428 Undistributed net realized gain 51,920,181 Net unrealized appreciation 312,956,628 NET ASSETS: $5,707,778,682 Beginning of year 5,895,330,524 3,923,990,096 Fund shares outstanding (par value $0.01 each, End of year (including undistributed net unlimited shares authorized) 545,831,312 investment income of $337,857 and Net asset value per share $ 10.46 $(306,245), respectively) $ 5,707,778,682 $5,895,330,524

SHARE INFORMATION: CONSOLIDATED Shares sold 141,279,760 205,490,704 STATEMENT OF OPERATIONS Distributions reinvested 20,441,990 17,283,962 Year Ended Shares redeemed (114,061,371) (66,336,804) December 31, 2015 INVESTMENT INCOME: Net increase in shares outstanding 47,660,379 156,437,862 Dividends (net of foreign taxes of $5,879,065) $ 125,378,250 Interest 15,237 125,393,487 EXPENSES: Management fees 37,258,811 Custody and fund accounting fees 620,606 Transfer agent fees 309,736 Professional services 219,650 Shareholder reports 100,505 Registration fees 196,886 Trustees’ fees 237,500 Miscellaneous 311,547 39,255,241 NET INVESTMENT INCOME 86,138,246 REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) Investments 135,300,729 Forward currency contracts 19,146,059 Foreign currency transactions (637,316) Net change in unrealized appreciation/depreciation Investments (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 ASSETS FROM OPERATIONS $ (524,735,601)

See accompanying Notes to Consolidated Financial Statements D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 9 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT representatives from Treasury, Legal, Compliance, and Operations. ACCOUNTING POLICIES The Pricing Committee is responsible for implementing the Dodge & Cox Global Stock Fund (the “Fund”) is one of the series Valuation Policies, including determining the fair value of constituting the Dodge & Cox Funds (the “Trust” or the “Funds”). securities when market quotations or market-based valuations are The Trust is organized as a Delaware statutory trust and is not readily available or are deemed unreliable. The Pricing registered under the Investment Company Act of 1940, as Committee considers relevant indications of value that are amended, as an open-end management investment company. The reasonably available to it in determining the fair value assigned to Fund commenced operations on May 1, 2008, and seeks long-term a particular security, such as the value of similar financial growth of principal and income. The Fund invests primarily in a instruments, trading volumes, contractual restrictions on diversified portfolio of U.S. and foreign equity securities. Foreign disposition, related corporate actions, and changes in economic investing, especially in developing countries, has special risks such conditions. In doing so, the Pricing Committee employs various as currency and market volatility and political and social methods for calibrating fair valuation approaches, including a instability. These and other risk considerations are discussed in the regular review of key inputs and assumptions, back-testing, and Fund’s Prospectus. review of any related market activity. The financial statements have been prepared in conformity As trading in securities on most foreign exchanges is normally with accounting principles generally accepted in the United States completed before the close of the NYSE, the value of non-U.S. of America, which require the use of estimates and assumptions by securities can change by the time the Fund calculates its NAV. To management. Actual results may differ from those estimates. address these changes, the Fund may utilize adjustment factors Significant accounting policies are as follows: provided by an independent pricing service to systematically value Security valuation The Fund’s net assets are valued as of the non-U.S. securities at fair value. These adjustment factors are close of trading on the New York Stock Exchange (NYSE), based on statistical analyses of subsequent movements and changes generally 4:00 p.m. Eastern Time, each day that the NYSE is open in U.S. markets and financial instruments trading in U.S. markets for business. If the NYSE is closed due to inclement weather, that represent foreign securities or baskets of securities. technology problems, or for any other reason on a day it would Valuing securities through a fair value determination involves normally be open for business, or the NYSE has an unscheduled greater reliance on judgment than valuation of securities based on early closing on a day it has opened for business, the Fund reserves readily available market quotations. In some instances, lack of the right to calculate the Fund’s NAV as of the normally information and uncertainty as to the significance of information scheduled close of regular trading on the NYSE for that day, may lead to a conclusion that a prior valuation is the best provided that Dodge & Cox believes that it can obtain reliable indication of a security’s value. When fair value pricing is market quotes or valuations. employed, the prices of securities used by the Fund to calculate its Portfolio securities and other financial instruments for which NAV may differ from quoted or published prices for the same market quotes are readily available are valued at market value. securities. Listed securities are generally valued using the official quoted close Security transactions, investment income, expenses, price or the last sale on the exchange that is determined to be the and distributions Security transactions are recorded on the trade primary market for the security. Security values are not discounted date. Realized gains and losses on securities sold are determined on based on the size of the Fund’s position. Short-term securities less the basis of identified cost. than 60 days to maturity may be valued at amortized cost if Dividend income and corporate action transactions are amortized cost approximates current value. Mutual funds are recorded on the ex-dividend date, or when the Fund first learns of valued at their respective net asset values. the dividend/corporate action if the ex-dividend date has passed. Investments initially valued in currencies other than the U.S. Non-cash dividends included in dividend income, if any, are dollar are converted to the U.S. dollar using prevailing exchange recorded at the fair market value of the securities received. rates. As a result, the Fund’s net assets may be affected by changes Dividends characterized as return of capital for U.S. tax purposes in the value of currencies in relation to the U.S. dollar. are recorded as a reduction of cost of investments and/or realized If market quotations are not readily available or if a security’s gain. Interest income is recorded on the accrual basis. value is believed to have materially changed after the close of the Expenses are recorded on the accrual basis. Some expenses of security’s primary market but before the close of trading on the the Trust can be directly attributed to a specific series. Expenses NYSE, the security is valued at fair value as determined in good which cannot be directly attributed are allocated among the Funds faith by or under the direction of the Fund’s Board of Trustees. in the Trust based on relative net assets or other expense The Board of Trustees has appointed Dodge & Cox, the Fund’s methodologies determined by the nature of the expense. investment manager, to make fair value determinations in Distributions to shareholders are recorded on the ex-dividend accordance with the Dodge & Cox Funds Valuation Policies date. (“Valuation Policies”), subject to Board oversight. Dodge & Cox Foreign taxes The Fund is subject to foreign taxes which has established a Pricing Committee that is comprised of may be imposed by certain countries in which the Fund invests.

PAGE 10 ▪ D ODGE &COX G LOBAL S TOCK F UND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Fund endeavors to record foreign taxes based on applicable currency contracts had U.S. dollar total values ranging from 1% to foreign tax law. Withholding taxes are incurred on certain foreign 2% of net assets and 0% to 2% of net assets, respectively. dividends and are accrued at the time the associated dividend is Foreign currency translation The books and records of the recorded. The Fund files withholding tax reclaims in certain Fund are maintained in U.S. dollars. Foreign currency amounts are jurisdictions to recover a portion of amounts previously withheld. translated into U.S. dollars at the prevailing exchange rates of The Fund records a reclaim receivable based on, among other such currencies against the U.S. dollar. The market value of things, a jurisdiction’s legal obligation to pay reclaims as well as investment securities and other assets and liabilities are translated payment history and market convention. In consideration of at the exchange rate as of the valuation date. Purchases and sales recent decisions rendered by European courts, the Fund has filed of investment securities, income, and expenses are translated at for additional reclaims related to prior years. A corresponding the exchange rate prevailing on the transaction date. receivable is established when both the amount is known and Reported realized and unrealized gain (loss) on investments significant contingencies or uncertainties regarding collectability include foreign currency gain (loss) related to investment are removed. These amounts are reported in “dividends and transactions. interest receivable” on the Consolidated Statement of Assets and Reported realized and unrealized gain (loss) on foreign Liabilities. currency transactions and translation include the following: Capital gains taxes are incurred upon disposition of certain disposing/holding of foreign currency, the difference between the foreign securities. Capital gains taxes on appreciated securities are trade and settlement dates on securities transactions, the difference accrued as unrealized losses and are reflected as realized losses upon between the accrual and payment dates on dividends, and currency the sale of the related security. Currency taxes may be incurred losses on the purchase of foreign currency in certain countries that when the Fund purchases certain foreign currencies related to impose taxes on such transactions. securities transactions and are recorded as realized losses on foreign Consolidation The Fund may invest in certain securities currency transactions. through its wholly owned subsidiary, Dodge & Cox Global Stock Repurchase agreements The Fund enters into repurchase Fund Cayman, Ltd. (the “Subsidiary”). The Subsidiary is a agreements, secured by U.S. government or agency securities, Cayman Islands exempted company and invests in certain which involve the purchase of securities from a counterparty with securities consistent with the investment objective of the Fund. asimultaneous commitment to resell the securities at an agreed- The Fund’s Consolidated Financial Statements, including the upon date and price. It is the Fund’s policy that its custodian take Consolidated Portfolio of Investments, consist of the holdings and possession of the underlying collateral securities, the fair value of accounts of the Fund and the Subsidiary. All intercompany which exceeds the principal amount of the repurchase transaction, transactions and balances have been eliminated. At December 31, including accrued interest, at all times. In the event of default by 2015, the Subsidiary had net assets of $100, which represented less the counterparty, the Fund has the contractual right to liquidate than 0.01% of the Fund’s consolidated net assets. the collateral securities and to apply the proceeds in satisfaction of Indemnification Under the Trust’s organizational the obligation. documents, its officers and trustees are indemnified against certain Forward currency contracts A forward currency contract liabilities arising out of the performance of their duties to the represents an obligation to purchase or sell a specific foreign Trust. In addition, in the normal course of business the Trust currency at a future date at a price set at the time of the contract. enters into contracts that provide general indemnities to other Losses from these transactions may arise from unfavorable changes parties. The Trust’s maximum exposure under these arrangements in currency values or if the counterparties do not perform under a is unknown as this would involve future claims that may be made contract’s terms. against the Trust that have not yet occurred. The values of the forward currency contracts are adjusted daily based on the prevailing forward exchange rates of the NOTE 2—VALUATION MEASUREMENTS underlying currencies. Changes in the value of open contracts are Various inputs are used in determining the value of the Fund’s recorded as unrealized appreciation or depreciation in the investments and other financial instruments. These inputs are Consolidated Statement of Operations. When the forward summarized in the three broad levels listed below. currency contract is closed, the Fund records a realized gain or loss ▪ Level 1: Quoted prices in active markets for identical securities in the Consolidated Statement of Operations equal to the ▪ Level 2: Other significant observable inputs (including quoted difference between the value at the time the contract was opened prices for similar securities, market indices, interest rates, credit and the value at the time it was closed. risk, etc.) During the year, the Fund maintained forward currency ▪ Level 3: Significant unobservable inputs (including Fund contracts to hedge foreign currency risks associated with portfolio management’s assumptions in determining the fair value of investments denominated in the euro and Swiss franc. During the investments) year ended December 31, 2015, these euro and Swiss franc forward

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 11 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The inputs or methodology used for valuing securities are not the extent amounts owed to the Fund by its counterparties are not necessarily an indication of the risk associated with investing in collateralized, the Fund is at risk of those counterparties’ non- those securities. performance. The Fund attempts to mitigate counterparty credit The following is a summary of the inputs used to value the risk by entering into Derivatives only with counterparties it Fund’s holdings at December 31, 2015: believes to be of good credit quality and by monitoring the financial stability of those counterparties. LEVEL 2 LEVEL 1 (Other Significant At December 31, 2015, no Derivative position subject to a Classification(a) (Quoted Prices) Observable Inputs) master netting arrangement qualifies for netting. For financial Securities reporting purposes, the Fund does not offset financial assets and Common Stocks liabilities that are subject to a master netting arrangement in the Consumer Discretionary $ 956,919,632 $ 258,328,239 Consolidated Statement of Assets and Liabilities. Gross assets and Consumer Staples 105,638,896 — liabilities related to Derivatives are presented as “unrealized Energy 279,703,990 38,352,249 Financials 1,084,230,788 188,809,994 appreciation on forward currency contracts” and “unrealized Health Care 577,767,715 266,488,952 depreciation on forward currency contracts,” respectively, in the Industrials 213,542,015 — Consolidated Statement of Assets and Liabilities. Derivative Information Technology 1,006,883,203 77,435,944 information by counterparty is presented in the Consolidated Materials 91,425,502 80,439,820 Telecommunication Services 102,449,041 46,870,485 Portfolio of Investments. At December 31, 2015, no collateral is Preferred Stocks pledged or held by the Fund for Derivatives. Energy 49,055,210 — Financials — 72,481,734 NOTE 4—RELATED PARTY TRANSACTIONS Information Technology — 84,695,337 Management fees Under a written agreement approved by a Short-term Investments unanimous vote of the Board of Trustees, the Fund pays an annual Money Market Fund 5,773,394 — Repurchase Agreement — 12,877,000 management fee of 0.60% of the Fund’s average daily net assets to Treasury Bill — 138,689,022 Dodge & Cox, investment manager of the Fund. Total Securities $4,473,389,386 $1,265,468,776 Fund officers and trustees All officers and two of the trustees of the Trust are officers or employees of Dodge & Cox. Other Financial Instruments(b) The Trust pays a fee only to those trustees who are not affiliated Forward Currency Contracts with Dodge & Cox. Appreciation $ — $ 1,927,141 Depreciation — (1,106,239) NOTE 5—INCOME TAX INFORMATION AND (a) Transfers during the year between Level 1 and Level 2 relate to the use of DISTRIBUTIONS TO SHAREHOLDERS systematic fair valuation (see Note 1). On days when systematic fair A provision for federal income taxes is not required since the Fund valuation is used, securities whose primary market closes before the NYSE are classified as Level 2. There were no Level 3 securities at December 31, 2015 intends to qualify as a regulated investment company under and 2014, and there were no transfers to Level 3 during the year. Subchapter M of the Internal Revenue Code and distribute all of its (b) Represents unrealized appreciation/(depreciation). taxable income to shareholders. Distributions are determined in accordance with income tax regulations, and such amounts may differ NOTE 3—ADDITIONAL DERIVATIVES INFORMATION from net investment income and realized gains for financial reporting The Fund has entered into over-the-counter derivatives, such as purposes. Financial reporting records are adjusted for permanent book forward currency contracts (each, a “Derivative”). Each Derivative to tax differences at year end to reflect tax character. is subject to a negotiated master agreement (based on a form Book to tax differences are primarily due to differing published by the International Swaps and Derivatives Association treatments of wash sales, net short-term realized gain (loss), (“ISDA”)) governing all Derivatives between the Fund and the investments in passive foreign investment companies, foreign relevant dealer counterparty. The master agreements specify capital gain taxes, and foreign currency realized gain (loss). At (i) events of default and other events permitting a party to December 31, 2015, the cost of investments for federal income tax terminate some or all of the Derivatives thereunder and (ii) the purposes was $5,438,868,248. process by which those Derivatives will be valued for purposes of Distributions during the years noted below were characterized determining termination payments. If some or all of the as follows for federal income tax purposes: Derivatives under a master agreement are terminated because of an event of default or similar event, the values of all terminated Year Ended Year Ended December 31, 2015 December 31, 2014 Derivatives must be netted to determine a single payment owed by Ordinary income $112,306,144 $100,240,292 one party to the other. Some master agreements contain collateral ($0.213 per share) ($0.213 per share) terms requiring the parties to post collateral in respect of some or all of the Derivatives thereunder based on the net market value of Long-term capital gain $105,451,738 $111,064,311 ($0.200 per share) ($0.236 per share) those Derivatives, subject to a minimum exposure threshold. To

PAGE 12 ▪ D ODGE &COX G LOBAL S TOCK F UND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2015, the tax basis components of NOTE 7—PURCHASES AND SALES OF INVESTMENTS distributable earnings were as follows: For the year ended December 31, 2015, purchases and sales of securities, other than short-term securities, aggregated Unrealized appreciation $973,534,707 $1,678,416,983 and $1,181,203,951, respectively. Unrealized depreciation (673,544,793) Net unrealized appreciation 299,989,914 NOTE 8—SUBSEQUENT EVENTS Undistributed ordinary income 337,857 Fund management has determined that no material events or Undistributed long-term capital gain 68,386,040 transactions occurred subsequent to December 31, 2015, and Deferred loss(a) (2,772,907) through the date of the Fund’s financial statements issuance, which (a) Represents net short-term realized loss incurred between November 1, 2015 require additional disclosure in the Fund’s financial statements. and December 31, 2015. As permitted by tax regulations, the Fund has elected to treat this loss as arising in 2016.

NOTE 6—LOAN FACILITIES Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund may participate in an interfund lending facility (Facility). The Facility allows the Fund to borrow money from or loan money to the Funds. Loans under the Facility are made for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest on borrowings is the average of the current repurchase agreement rate and the bank loan rate. There was no activity in the Facility during the year. All Funds in the Trust participate in a $500 million committed credit facility (Line of Credit) with State Street Bank and Trust Company, to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The maximum amount available to the Fund is $250 million. Each Fund pays an annual commitment fee on its pro-rata portion of the Line of Credit. For the year ended December 31, 2015, the Fund’s commitment fee amounted to $19,178 and is reflected as a Miscellaneous Expense in the Consolidated Statement of Operations. Interest on borrowings is charged at the prevailing rate. There were no borrowings on the Line of Credit during the year.

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 13 CONSOLIDATED 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 $11.83 $11.48 $8.99 $7.68 $8.90 Income from investment operations: Net investment income 0.16 0.16 0.16 0.15 0.16 Net realized and unrealized gain (loss) (1.11) 0.64 2.81 1.48 (1.18) Total from investment operations (0.95) 0.80 2.97 1.63 (1.02) 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) Total distributions (0.42) (0.45) (0.48) (0.32) (0.20) Net asset value, end of year $10.46 $11.83 $11.48 $8.99 $7.68 Total return (8.05)% 6.95% 33.17% 21.11% (11.39)% Ratios/supplemental data: Net assets, end of year (millions) $5,708 $5,895 $3,924 $2,695 $1,875 Ratio of expenses to average net assets 0.63% 0.65% 0.65% 0.65% 0.66% Ratio of net investment income to average net assets 1.39% 1.42% 1.58% 1.93% 1.94% Portfolio turnover rate 20% 17% 24% 12% 19%

See accompanying Notes to Consolidated Financial Statements

PAGE 14 ▪ D ODGE &COX G LOBAL S TOCK F UND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of Dodge & Cox Global Stock Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) 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 in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 15 SPECIAL 2015 TAX INFORMATION and the significant investment that Dodge & Cox makes in (unaudited) research used in managing the Funds. The Board received and The following information is provided pursuant to provisions of the reviewed memoranda and related materials addressing, among Internal Revenue Code: other things, Dodge & Cox’s services to the Funds; how In 2015, the Fund elected to pass through to shareholders Dodge & Cox Funds’ fees compare to fees of peer group funds; the foreign source income of $86,033,491 and foreign taxes paid of different fees, services, costs, and risks associated with other $5,878,958. accounts managed by Dodge & Cox as compared to the The Fund designates up to a maximum of $122,119,608 of its Dodge & Cox Funds; and the ways in which the Funds realize distributions paid to shareholders in 2015 as qualified dividends economies of scale. Throughout the process of reviewing the (treated for federal income tax purposes in the hands of shareholders services provided by Dodge & Cox and preparing for the meeting, as taxable at a maximum rate of 20%). the Independent Trustees found Dodge & Cox to be open, For shareholders that are corporations, the Fund designates forthright, detailed, and very helpful in answering questions about 41% of its ordinary dividends paid to shareholders in 2015 as all issues. The Board received copies of the Agreements and a dividends from domestic corporations eligible for the corporate memorandum from the independent legal counsel to the dividends received deduction, provided that the shareholder Independent Trustees discussing the factors generally regarded as otherwise satisfies applicable requirements to claim that deduction. appropriate to consider in evaluating advisory arrangements. The Trust’s Contract Review Committee, consisting solely of BOARD APPROVAL OF FUNDS’ INVESTMENT Independent Trustees, met with the independent legal counsel on MANAGEMENT AGREEMENTS AND November 11, 2015, and again on December 16, 2015, to discuss MANAGEMENT FEES whether to renew the Agreements. The Board, including the (unaudited) Independent Trustees, subsequently concluded that the existing The Board of Trustees is responsible for overseeing the Agreements are fair and reasonable and voted to approve the performance of the Dodge & Cox Funds’ investment manager and Agreements. In considering the Agreements, the Board, including determining whether to continue the Investment Management the Independent Trustees, did not identify any single factor or Agreements between the Funds and Dodge & Cox each year (the particular information as all-important or controlling. In reaching “Agreements”). At a meeting of the Board of Trustees of the Trust the decision to approve the Agreements, the Board considered held on December 16, 2015, the Trustees, by a unanimous vote several factors, discussed below, to be key factors and reached the (including a separate vote of those Trustees who are not conclusions described below. “interested persons” (as defined in the Investment Company Act of 1940) (the “Independent Trustees”)), approved the renewal of NATURE, QUALITY, AND EXTENT OF THE SERVICES the Agreements for an additional one-year term through The Board considered that Dodge & Cox provides a wide range of December 31, 2016 with respect to each Fund. During the course services to the Funds in addition to portfolio management and that of the year, the Board received a wide variety of materials relating the quality of these services has been excellent in all respects. The to the investment management and administrative services extensive nature of services provided by Dodge & Cox has been provided by Dodge & Cox and the performance of each of the documented in materials provided to the Board and in Funds. presentations made to the Board throughout the year. In particular, the Board considered the nature, quality, and extent of INFORMATION RECEIVED portfolio management, administrative, and shareholder services In advance of the meeting, the Board, including each of the performed by Dodge & Cox. With regard to portfolio management Independent Trustees, requested, received, and reviewed materials services, the Board considered Dodge & Cox’s established long- relating to the Agreements and the services provided by term history of care and conscientiousness in the management of Dodge & Cox. The Independent Trustees retained Morningstar® the Funds; its demonstrated consistency in investment approach to prepare an independent expense and performance summary for and depth; the background and experience of the Dodge & Cox each Fund and comparable funds managed by other advisers Investment Policy Committee, International Investment Policy identified by Morningstar. The Morningstar materials included Committee, Global Stock Investment Policy Committee, Fixed information regarding advisory fee rates, expense ratios, and Income Investment Policy Committee, and Global Bond transfer agency, custodial, and distribution expenses, as well as Investment Policy Committee, and research analysts responsible appropriate performance comparisons to each Fund’s peer group for managing the Funds; its methods for assessing the regulatory and an index or combination of indices. The Morningstar and investment climate in various jurisdictions; Dodge & Cox’s materials also included a comparison of expenses of various share overall high level of attention to its core investment management classes offered by comparable funds. The materials reviewed by the function; and its commitment to the Funds and their shareholders. Board contained information concerning, among other things, In the area of administrative and shareholder services, the Board Dodge & Cox’s profitability, financial results and condition, considered the excellent quality of Dodge & Cox’s work in areas advisory fee revenue, and separate account and sub-adviser fund such as compliance, legal services, trading, proxy voting, fee schedules. The Board additionally considered the Funds’ technology, oversight of the Funds’ transfer agent and custodian, brokerage commissions, turnover rates, sales and redemption data tax compliance, and shareholder communication through its

PAGE 16 ▪ D ODGE &COX G LOBAL S TOCK F UND website and other means. The Board also noted Dodge & Cox’s third party research, reimbursement for recordkeeping and diligent disclosure policy, its favorable compliance record, and its administrative costs to third-party retirement plan administrators, reputation as a trusted, shareholder-friendly mutual fund family. In and administrative and office overhead. addition, the Board considered that Dodge & Cox manages The Board noted that expenses are well below industry approximately $185 billion in Fund assets with fewer professionals averages. When compared to peer group funds, the Funds are in than most comparable funds, and that on average these the quartile with the lowest expense ratios. The Board also professionals have more experience and longer tenure than considered that the Funds receive numerous administrative, investment professionals at comparable funds. The Board also regulatory compliance, legal, technology and shareholder support noted that Dodge & Cox is an investment research-oriented firm services from Dodge & Cox without any additional administrative with no other business endeavors to distract management’s fee and the fact that the Funds have relatively low transaction attention from its research efforts, and that its investment costs and portfolio turnover rates. The Board noted the Funds’ professionals adhere to a consistent investment approach across unusual single-share-class structure and reviewed Morningstar data the Funds. The Board further considered the favorable stewardship showing that the few peer group funds with lower expense ratios grades given by Morningstar to each of the Funds and the “Gold” often have other share classes with significantly higher expense analyst rating awarded by Morningstar to all of the Funds except ratios. In this regard, the Board considered that many of the Funds’ the Global Bond Fund. The Board concluded that it was satisfied shareholders would not be eligible to purchase comparably-priced with the nature, extent, and quality of investment management shares of many peer group funds, which typically make their lower- and other services provided to the Funds by Dodge & Cox. priced share classes available only to institutional investors. The Board determined that the Funds provide access for small investors INVESTMENT PERFORMANCE to high quality investment management at a relatively low cost. The Board considered short-term and long-term investment The Board reviewed information regarding the fee rates performance for each Fund (including periods of outperformance Dodge & Cox charges to separate accounts and subadvised funds or underperformance) as compared to both relevant indices and that have investment programs similar to those of the Funds, the performance of such Fund’s peer group. The Board noted that including instances where separate account and sub-advised fund the Funds had weak absolute and relative performance in 2015, but fees are lower than Fund fees. The Board considered differences in remained solid performers over longer periods. The Board the nature and scope of services Dodge & Cox provides to the determined after extensive review and inquiry that Dodge & Cox’s Funds as compared to other client accounts, differences in historic, long-term, team-oriented, bottom-up investment regulatory, litigation, and other risks as between Dodge & Cox approach remains consistent and that Dodge & Cox continues to Funds and other types of clients. The Board also noted that be distinguished by its integrity, transparency, and independence. different markets exist for mutual fund and institutional separate The Board considered that the performance of the Funds is the account management services. With respect to non-U.S. funds result of a team-oriented investment management process that sponsored and managed by Dodge & Cox that are comparable to emphasizes a long-term investment horizon, comprehensive the Funds in many respects, the Board noted that the fee rates independent research, price discipline, low cost and low portfolio charged by Dodge & Cox are the same as or higher than the fee turnover. The Board also considered that the investment rates charged to the Funds. After consideration of these matters, performance delivered by Dodge & Cox to the Funds appeared to the Board concluded that the overall costs incurred by the Funds be consistent with the relevant performance delivered for other for the services they receive (including the management fee paid clients of Dodge & Cox. The Board concluded that Dodge & Cox to Dodge & Cox) are reasonable and that the fees are acceptable has delivered favorable long-term performance for Fund investors based upon the qualifications, experience, reputation, and consistent with the long-term investment strategies being pursued performance of Dodge & Cox and the low overall expense ratios of by the Funds. the Funds. Profitability and Costs of Services to Dodge & Cox; COSTS AND ANCILLARY BENEFITS “Fall-out” Benefits. The Board reviewed reports of Costs of Services to Funds: Fees and Expenses. The Board Dodge & Cox’s financial position, profitability, and estimated considered each Fund’s management fee rate and expense ratio overall value, and considered Dodge & Cox’s overall profitability relative to each Fund’s peer group and relative to management fees within its context as a private, employee-owned S-Corporation charged by Dodge & Cox to other clients. In particular, the Board and relative to the favorable services provided. The Board noted in considered that the Funds continue to be substantially below their particular that Dodge & Cox’s profits are not generated by high fee peer group median in expense ratios and that many media and rates, but reflect an extraordinarily streamlined, efficient, and industry reports specifically comment on the low expense ratios of focused business approach toward investment management. The the Funds, which have been a defining characteristic of the Funds Board recognized the importance of Dodge & Cox’s profitability— for many years. The Board also evaluated the operating structures which is derived solely from management fees and does not of the Funds and Dodge & Cox, noting that the Funds do not include other business ventures—to maintain its independence, charge front-end sales commissions or distribution fees, and stability, company culture and ethics, and management continuity. Dodge & Cox bears, among other things, the significant cost of The Board also considered that the compensation/profit structure

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 17 at Dodge & Cox includes a return on shareholder employees’ third party research, data services, trading systems, technology, and investment in the firm, which is vital for remaining independent and recordkeeping service expenses at a rate that has significantly facilitating retention of management and investment professionals. outpaced the Funds’ growth rate during the same period. The Board considered independent research indicating that firms that The Board considered that Dodge & Cox has a history of grow organically, rather than through acquisition, tend to have better voluntarily limiting asset growth in several Funds that experienced performance. Key to organic growth is the ability to retain talented significant inflows by closing them to new investors in order to protect and experienced analysts, portfolio managers and other professionals. the Funds’ ability to achieve good investment returns for shareholders. The Board also considered that in January 2015, Dodge & Cox The Board also observed that, even without fee breakpoints, the Funds closed the International Stock Fund to new investors to pro-actively are competitively priced in a very competitive market and that having manage the growth of the Fund. The Stock Fund and Balanced Fund a low fee from inception is better for shareholders than starting with a were similarly closed to new investors during periods of significant higher fee and adding breakpoints. The Board concluded that the growth in the past. While these actions are intended to benefit current Dodge & Cox fee structure is fair and reasonable and existing shareholders, the effect is to reduce potential revenues to adequately shares economies of scale that may exist. Dodge & Cox from new shareholders. The Board also considered potential “fall-out” benefits (including the receipt of research from CONCLUSION unaffiliated brokers and reputational benefits to non-U.S. funds Based on their evaluation of all material factors and assisted by the sponsored and managed by Dodge & Cox) that Dodge & Cox might advice of independent legal counsel to the Independent Trustees, the receive as a result of its association with the Funds and determined Board, including the Independent Trustees, concluded that the that they are acceptable. The Board also noted that Dodge & Cox advisory fee structure was fair and reasonable, that each Fund was continues to invest substantial sums in its business in order to provide paying a competitive fee for the services provided, that the scope and enhanced services, systems and research capabilities, all of which quality of Dodge & Cox’s services has provided substantial value for benefit the Funds. The Board concluded that Dodge & Cox’s Fund shareholders over the long term, and that approval of the profitability is the keystone of its independence, stability and long- Agreements was in the best interests of each Fund and its shareholders. term investment performance and that the profitability of Dodge & Cox’s relationship with the Funds (including fall-out FUND HOLDINGS benefits) is fair and reasonable. The Fund provides a complete list of its holdings four times each fiscal year, as of the end of each quarter. The Fund files the lists with

ECONOMIES OF SCALE the Securities and Exchange Commission (SEC) on Form N-CSR The Board considered whether there have been economies of scale (second and fourth quarters) and Form N-Q (first and third quarters). with respect to the management of each Fund, whether the Funds Shareholders may view the Fund’s Forms N-CSR and N-Q on the have appropriately benefited from any economies of scale, and SEC’s website at sec.gov. Forms N-CSR and N-Q may also be whether the management fee rate is reasonable in relation to the reviewed and copied at the SEC’s Public Reference Room in Fund assets and any economies of scale that may exist. In the Board’s Washington, DC. Information regarding the operations of the Public view, any consideration of economies of scale must take account of Reference Room may be obtained by calling 202-942-8090 (direct) the Funds’ low fee structure and the considerable efficiencies of the or 800-732-0330 (general SEC number). A list of the Fund’s quarter- Funds’ organization and fee structure that has been realized by end holdings is also available at dodgeandcox.com on or about 15 shareholders from the time of each Fund’s inception (i.e., from the days following each quarter end and remains available on the website first dollar). An assessment of economies of scale must also take into until the list is updated in the subsequent quarter. account that Dodge & Cox invests significant time and resources in PROXY VOTING each new Fund for months (and sometimes years) prior to launch; in For a free copy of the Fund’s proxy voting policies and procedures, addition, expenses are capped, which means that Dodge & Cox earns please call 800-621-3979, visit the Fund’s website at no revenue and subsidizes the operations of a new Fund for a period dodgeandcox.com, or visit the SEC’s website at sec.gov. of time until it reaches scale. Information regarding how the Fund voted proxies relating to In addition, the Board noted that Dodge & Cox has shared portfolio securities during the most recent 12-month period ending economies of scale by adding or enhancing services to the Funds June 30 is also available at dodgeandcox.com or at sec.gov. over time, and that the internal costs of providing investment management, up-to-date technology, administrative, legal, and HOUSEHOLD MAILINGS compliance services to the Funds continue to increase. For The Fund routinely mails shareholder reports and summary example, Dodge & Cox has increased its global research staff and prospectuses to shareholders and, on occasion, proxy statements. investment resources over the years to address the increased In order to reduce the volume of mail, when possible, only one complexity of investing in multinational and non-U.S. companies. copy of these documents will be sent to shareholders who are part In addition, Dodge & Cox has made substantial expenditures in of the same family and share the same residential address. other staff, technology, cybersecurity, and infrastructure to enable If you have a direct account with the Funds and you do not want it to integrate credit and equity analyses and to be able to the mailing of shareholder reports and summary prospectuses implement its strategy in a more effective and secure manner. Over combined with other members in your household, contact the Funds the last ten years, Dodge & Cox has increased its spending on at 800-621-3979. Your request will be implemented within 30 days.

PAGE 18 ▪ D ODGE &COX G LOBAL S TOCK F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge & Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

D ODGE &COX G LOBAL S TOCK F UND ▪ PAGE 19 Global Stock Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San Francisco, California 94104 (415) 981-1710

Annual Report December 31, 2015

Income Fund ESTABLISHED 1989

TICKER: DODIX

12/15 IF AR Printed on recycled paper TO OUR SHAREHOLDERS

The Dodge & Cox Income Fund had a total return of –0.6% for INVESTMENT STRATEGY the year ending December 31, 2015, compared to a total return of 2015 was an active year in terms of shifts in the Fund’s positioning, 0.6% for the Barclays U.S. Aggregate Bond Index (Barclays U.S. particularly related to the overall size and constituents of the credit Agg). portion(e) of the Fund, as much of that market became more attractively priced. We have positioned the Fund with a substantial MARKET COMMENTARY 46%(f) weighting in corporate bonds, up from 38% at the end of 2014, The U.S. bond market’s low 2015 return reflected price declines and a 7% weighting in government-related securities, which includes associated with rising U.S. Treasury rates and widening credit yield taxable municipal securities and securities of non-U.S. government premiums(a), the combination of which largely offset the relatively entities. Including the Fund’s 1.7% position in Rio Oil (an asset- low level of income earned over the period. Many of the market backed security that we group as a credit investment) brings the themes influencing valuations in 2015 continued from late 2014, Fund’s total credit weighting to 55%, its highest in two years. A 37% including changing expectations regarding U.S. Federal Reserve allocation to structured products—Agency-guaranteed MBS (at (Fed) policy, diverging global economic conditions and monetary 33%) and more traditional, AAA-rated asset-backed securities policy, and concerns about the effect of China’s decelerating (4%)—rounds out the Fund’s non-U.S. Treasury sector exposures. economy on the global growth outlook. We continued to reduce the Fund’s already-low Treasury weighting The U.S. economy continued to expand moderately in 2015. (5% at year end, a decline of six percentage points) to add to the Highlights included robust labor market gains, a declining Fund’s credit holdings; we also maintained a shorter relative duration unemployment rate (to 5.0% by year end), an uptick in housing position, presently 70% of the Barclays U.S. Agg’s duration. market activity, and increases in household and business spending. Most of the increase in the Fund’s credit weighting occurred These factors were offset somewhat by a weak manufacturing in the third quarter, as high levels of new issuance in connection sector and lower export demand. Outside the United States, with M&A financing provided many interesting investment flagging demand in Europe and China contributed to significant opportunities. Examples of new or growing positions in the Fund commodity price declines, causing many commodity-dependent during 2015 included Allergan, Charter Communications, Hewlett emerging market economies to suffer. Packard Enterprise, and Imperial Tobacco, each of which raised After much anticipation, the Fed raised the target federal funds debt to finance transactions. M&A-related debt issuances often rate by 0.25 percentage points in December, marking the first rate result in higher leverage ratios for the issuing entity, and may also increase from the so-called zero lower bound since late 2008. The be priced attractively (wider yield premiums) at new issue. Much Fed cited improving U.S. economic data and reiterated its intent to of the recent increase in investment-grade corporate leverage has normalize monetary policy gradually. Headline inflation remained been concentrated in highly rated issuers willing to incur quite subdued—well below the Fed’s long-term 2% objective—but somewhat higher leverage to implement strategic transactions. core CPI climbed throughout the year. Meanwhile, central bank While the depth and breadth of our research effort enables us to policymakers elsewhere in the world moved in the opposite review nearly every large M&A-related investment-grade new direction, easing monetary policies in Europe, China, and Japan as issuance, we are selective in the Fund’s participation in these ameansofcatalyzinggrowth in those regions. issues. When evaluating acquisition-related financing, our global Investment-grade corporate bonds returned –0.7%(b) for 2015, industry analyst team develops a view of the strategic rationale for underperforming comparable-duration(c) Treasuries by 1.6 percentage each M&A transaction and compiles a financial forecast assessing points in the sector’s poorest relative result since 2011. Almost all of deleveraging potential under a range of scenarios. Meanwhile, our the underperformance occurred in the third quarter, and returns fixed income analyst team focuses on the balance sheet and varied dramatically by corporate sub-sector. Financials produced a liquidity implications, particularly in downside scenarios. When positive absolute return (+1.5%) as earnings were generally positive pricing appears attractive relative to these expectations and we see and capital and liquidity profiles improved. In contrast, Industrial the potential for the issuer to delever over time, we often find it issuers performed poorly (–1.8% return and underperformance of 2.7 compelling to invest subsequent to a leveraging event. percentage points vs. comparable-duration Treasuries), influenced by In addition, we have recently found opportunities within heavy new issuance related to record M&A activity in 2015, lower market sectors experiencing heightened volatility. In 2015, these commodity prices, global growth concerns, and higher levels of segments were primarily the commodities sectors and emerging industrial leverage. Below-investment grade issuers fared even worse markets, with hardest-hit issuers exposed to both. Our analysis has for the year (–4.5% return), with the largest declines in lower-rated, focused on issuers whose securities appear undervalued relative to commodity-sensitive issuers. Agency-guaranteed(d) mortgage-backed credit fundamentals. Our investment team conducts in-depth securities (MBS) returned 1.5% for the year, roughly in line with assessments of the value of an issuer’s assets over a market cycle, as comparable-duration Treasuries. The prepayment environment well as its ability to weather a prolonged period of commodity price remained muted throughout most of 2015. weakness. This analysis has resulted in new or increased exposures to Cemex, Codelco, Kinder Morgan, and Teck Resources. We have also maintained the Fund’s positions in Petrobras, Rio Oil

PAGE 2 ▪ D ODGE &COX I NCOME F UND Finance Trust, and Pemex (all of which underperformed substantially pleased with these returns, we remain confident in our investment in 2015), based in part on potential downside protection provided by strategy and process. We have navigated challenging environments strong government relationships and other sources of financial in the past, and have used these environments to find attractive flexibility. long-term investment opportunities at compelling valuations. We continue to have a favorable view of subordinated Furthermore, we believe that the current environment suits us securities issued by large U.S. and UK banks, where the Fund well, given our long-term orientation and focus on finding retains a modest overweight. 2015 presented opportunities to undervalued securities through a robust research process. We expand this theme to industrial issuers seeking to obtain financing remain optimistic about the Fund’s long-term relative return without significant credit ratings degradation. Industrial hybrid prospects. However, given starting yields, we believe near-term securities are subordinated securities that are given partial equity absolute returns will be modest at best. treatment by the rating agencies. During the year we purchased Thank you for your continued confidence in our firm. As hybrid securities issued by TransCanada, a leading midstream always, we welcome your comments and questions. energy company whose stability is supported by the long-term contractual nature of its business, and BHP Billiton, the world’s For the Board of Trustees, largest mining company with a strong balance sheet and attractive cost positions in its operations. We remain constructive on the Fund’s credit holdings, which generally are diversified across market sectors, trade at attractive prices, and have issuers with financial flexibility to weather the Charles F. Pohl, Dana M. Emery, current challenged environment. While we recognize that recent Chairman President increases in corporate leverage and shareholder remuneration could result in weaker credit profiles, we believe that the U.S. January 29, 2016 economy remains healthy, default rates remain low and fairly concentrated in lower-rated, commodity-related issuers, and (a) Yield premiums are one way to measure a security’s valuation. Narrowing yield premiums result in a higher valuation. Widening yield premiums result valuations provide sufficient compensation for the current risks. in a lower valuation. Turning to the Fund’s Agency MBS, currently a33% (b) Sector returns as calculated and reported by Barclays. weighting, we shifted both the weighting (between 33% and 36%) (c) Duration is a measure of a bond’s (or a bond portfolio’s) price sensitivity to and the mix of underlying holdings throughout the year in response changes in interest rates. (d) The U.S. Government does not guarantee the Fund’s shares, yield, or net to changing valuations. For example, we trimmed the Fund’s CMO asset value. The agency guarantee (by, for example, Ginnie Mae, Fannie floaters, whose valuations became fuller, in favor of MBS with more Mae, or Freddie Mac) does not eliminate market risk. attractive long-term total return potential (e.g., pre-reset hybrid (e) Credit securities refers to corporate bonds and government-related securities, as classified by Barclays. ARM MBS, 15- and 30-year premium MBS). We also sold a (f) Unless otherwise specified, all weightings and characteristics are as of portion of shorter-duration MBS and AAA-rated ABS to purchase December 31, 2015. relatively more attractive corporate bonds. We continue to view the Fund’s MBS favorably in terms of their ability to generate regular income, provide an important source of liquidity, and add an element of defensiveness in a volatile market environment for credit markets. Indeed, they were important contributors to the Fund’s 2015 return. With respect to interest rate risk, we believe it is prudent to mitigate the effect of price declines associated with potentially rising interest rates through a shorter relative Fund duration. We see a clear disconnect between the slow pace of rate increases implied by current U.S. Treasury valuations and the faster pace expected by Fed policymakers, particularly in the context of a modestly expanding economy (more than 2% growth is expected over the next several years) and an inflation rate likely to rise as energy and import prices stabilize. It is our view that interest rates will rise more quickly than the levels implied by the market’s very modest expectations.

IN CLOSING The Fund’s recent relative performance has been disappointing. The headwind of a weak credit sector since mid-2014 has been the primary factor behind this underperformance. While we are not

D ODGE &COX I NCOME F UND ▪ PAGE 3 ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the Barclays U.S. Agg by 1.2 Independent Organization percentage points in 2015. Dodge & Cox is one of the largest privately owned investment managers in the world. We remain committed to independence, Key Detractors from Relative Results with a goal of providing the highest quality investment ▪ Certain emerging market-related credit holdings underperformed management service to our existing clients. for the year, including Pemex, Petrobras, and Rio Oil Finance Over 85 Years of Investment Experience Trust. Dodge & Cox was founded in 1930. We have a stable and well- ▪ The Fund’s overweight to the Industrial sub-sector (23% qualified team of investment professionals, most of whom have versus 14% for the Barclays U.S. Agg) and underweight to spent their entire careers at Dodge & Cox. U.S. Treasuries (11% versus 36% for the Barclays U.S. Agg) Experienced Investment Team detracted from relative returns. The Fixed Income Investment Policy Committee, which is the ▪ Corporate security selection was slightly negative; numerous decision-making body for the Income Fund, is an eight-member industrial issuers performed poorly, including Cemex, Cox committee with an average tenure at Dodge & Cox of 20 years. Communications, Kinder Morgan, Macy’s, and Teck Resources. One Business with a Single Research Office Dodge & Cox manages equity (domestic, international, and Key Contributors to Relative Results global), fixed income (domestic and global), and balanced ▪ The Fund’s shorter relative duration (approximately 70% of investments, operating from one office in San Francisco. the Barclays U.S. Agg’s duration) added to relative returns. Consistent Investment Approach ▪ The Fund’s Agency MBS holdings outperformed the MBS in Our team decision-making process involves thorough, bottom- the Barclays U.S. Agg after adjusting for duration differences. up fundamental analysis of each investment. ▪ The Fund’s nominal yield advantage benefited returns. Long-Term Focus and Low Expenses Unless otherwise noted, figures cited in this section denote Fund We invest with a three- to five-year investment horizon, which positioning at the beginning of the period. has historically resulted in low turnover relative to our peers. We manage Funds that maintain low expense ratios.

Risks: The Fund invests in individual bonds whose yields and market values fluctuate, so that an investment may be worth more or less than its original cost. Debt securities are subject to interest rate risk, credit risk, and prepayment and call risk, all of which could have adverse effects on the value of the Fund. A low interest rate environment creates an elevated risk of future negative returns. Financial intermediaries may restrict their market making activities for certain debt securities, which may reduce the liquidity and increase the volatility of such securities. Please read the prospectus and summary prospectus for specific details regarding the Fund’s risk profile.

PAGE 4 ▪ D ODGE &COX I NCOME F UND GROWTH OF $10,000 OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2005

$30,000 Returns represent past performance and do not guarantee future Dodge & Cox Income Fund $16,314 results. Investment return and share price will fluctuate with 20,000 Barclays U.S. Agg $15,562 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is updated and published monthly. Visit the Fund’s website at 10,000 dodgeandcox.com or call 800-621-3979 for current performance figures. The Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any 5,000 income taxes payable by shareholders on these distributions or on 12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/15 Fund share redemptions. Index returns include interest income but, unlike Fund returns, do not reflect fees or expenses. The AVERAGE ANNUAL TOTAL RETURN Barclays U.S. Aggregate Bond Index (Barclays U.S. Agg) is a FOR PERIODS ENDED DECEMBER 31, 2015 widely recognized, unmanaged index of U.S. dollar-denominated, 1 Year 5 Years 10 Years 20 Years investment-grade, taxable debt securities. Dodge & Cox Income Fund –0.59% 3.60% 5.02% 5.68% Barclays® is a trademark of Barclays Bank PLC. Barclays U.S. Aggregate Bond Index (Barclays U.S. Agg) 0.57 3.26 4.52 5.34

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 993.20 $2.14 Based 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 ODGE &COX I NCOME F UND ▪ PAGE 5 FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $13.29 Debt Total Net Assets (billions) $43.1 Securities: 97.1% 30-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 67 Fund Inception 1989 No sales charges or distribution fees Net Cash Investment Manager: Dodge & Cox, San Francisco. Managed by & Other:(e) 2.9% the Fixed Income Investment Policy Committee, whose eight members’ average tenure at Dodge & Cox is 20 years.

Barclays Barclays PORTFOLIO CHARACTERISTICS Fund U.S. Agg SECTOR DIVERSIFICATION (%) Fund U.S. Agg Effective Duration (years) 4.0 5.7 U.S. Treasury(d) 5.0 36.4 Government-Related 7.4 8.2 FIVE LARGEST CREDIT ISSUERS (%)(b) Fund Mortgage-Related(f) 32.7 28.6 State of California GO 2.2 Corporate 46.3 24.3 Bank of America Corp. 2.0 Asset-Backed/Commercial Mortgage-Backed 5.7 2.5 Verizon Communications, Inc. 2.0 Cash Equivalents 2.9 0.0 Kinder Morgan, Inc. 1.9 Cox Enterprises, Inc. 1.8

Barclays Barclays CREDIT QUALITY (%)(c) Fund U.S. Agg MATURITY DIVERSIFICATION (%)(d) Fund U.S. Agg U.S. Treasury/Agency/GSE(d) 38.0 68.0 0-1 Years to Maturity 4.5 0.0 Aaa 4.0 4.8 1-5 45.9 42.7 Aa 3.1 3.5 5-10 28.9 42.3 A 5.1 10.5 10-15 2.6 2.2 Baa 35.9 13.2 15-20 4.5 1.6 Ba 8.9 0.0 20-25 8.8 3.7 B 2.1 0.0 25 and Over 4.8 7.5 Caa 0.0(g) 0.0 Cash Equivalents 2.9 0.0

(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) 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 of Moody’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 securities rated 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%.

PAGE 6 ▪ D ODGE &COX I NCOME F UND PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES: 97.1%

PAR VALUE VALUE PAR VALUE VALUE U.S. TREASURY: 5.0% LOCAL AUTHORITY: 4.7% U.S. Treasury Note/Bond L.A. Unified School District GO 1.50%, 8/31/18 $250,000,000 $ 251,701,500 5.75%, 7/1/34 $ 6,075,000 $ 7,313,146 0.875%, 10/15/18 300,000,000 296,724,300 6.758%, 7/1/34 185,585,000 244,530,508 1.50%, 2/28/19 496,995,000 498,648,999 New Jersey Turnpike Authority RB 1.625%, 7/31/19 600,000,000 602,200,800 7.414%, 1/1/40 41,065,000 58,322,566 1.625%, 12/31/19 500,000,000 500,125,500 7.102%, 1/1/41 148,277,000 203,800,805 2,149,401,099 New Valley Generation GOVERNMENT-RELATED: 7.4% 4.929%, 1/15/21 340,287 368,052 FEDERAL AGENCY: 0.3% State of California GO Small Business Admin. — 504 Program 7.50%, 4/1/34 203,021,000 283,289,413 Series 1997-20E 1, 7.30%, 5/1/17 24,882 25,648 7.55%, 4/1/39 200,880,000 291,780,209 Series 1997-20H 1, 6.80%, 8/1/17 7,796 7,948 7.30%, 10/1/39 116,735,000 163,381,138 Series 1997-20J 1, 6.55%, 10/1/17 111,816 114,405 7.625%, 3/1/40 103,410,000 150,592,881 Series 1997-20L 1, 6.55%, 12/1/17 5,005 5,124 7.60%, 11/1/40 56,435,000 83,763,649 Series 1998-20B 1, 6.15%, 2/1/18 13,525 14,154 State of Illinois GO Series 1998-20C 1, 6.35%, 3/1/18 435,206 457,822 4.961%, 3/1/16 40,560,000 40,811,066 Series 1998-20H 1, 6.15%, 8/1/18 233,918 246,212 5.365%, 3/1/17 196,360,000 203,650,847 Series 1998-20L 1, 5.80%, 12/1/18 132,203 138,410 5.665%, 3/1/18 173,675,000 183,895,774 Series 1999-20C 1, 6.30%, 3/1/19 129,925 134,730 5.10%, 6/1/33 124,455,000 117,690,871 Series 1999-20E 1, 6.30%, 5/1/19 3,584 3,716 Series 1999-20G 1, 7.00%, 7/1/19 243,730 253,446 2,033,190,925 Series 1999-20I 1, 7.30%, 9/1/19 119,298 124,182 SOVEREIGN: 0.1% Series 2000-20C 1, 7.625%, 3/1/20 7,298 7,742 Spain Government International (c) (Spain) Series 2000-20G 1, 7.39%, 7/1/20 4,441 4,699 4.00%, 3/6/18(b) 55,790,000 58,193,545 Series 2001-20G 1, 6.625%, 7/1/21 969,601 1,053,103 3,186,552,877 Series 2001-20L 1, 5.78%, 12/1/21 2,904,898 3,095,072 MORTGAGE-RELATED: 32.7% Series 2002-20A 1, 6.14%, 1/1/22 22,348 24,155 FEDERAL AGENCY CMO & REMIC: 3.2% Series 2002-20L 1, 5.10%, 12/1/22 862,659 920,246 Dept. of Veterans Affairs Series 2003-20G 1, 4.35%, 7/1/23 56,562 59,378 Series 1995-2D 4A, 9.293%, 5/15/25 145,506 178,423 Series 2004-20L 1, 4.87%, 12/1/24 1,296,779 1,382,839 Series 1997-2 Z, 7.50%, 6/15/27 9,751,483 11,003,619 Series 2005-20B 1, 4.625%, 2/1/25 2,367,752 2,506,263 Series 1998-2 2A, 8.693%, 8/15/27 38,255 44,805 Series 2005-20D 1, 5.11%, 4/1/25 107,053 115,828 Series 1998-1 1A, 8.209%, 3/15/28 219,820 254,336 Series 2005-20E 1, 4.84%, 5/1/25 3,977,227 4,232,604 Series 2005-20G 1, 4.75%, 7/1/25 4,005,706 4,250,920 Fannie Mae Series 2005-20H 1, 5.11%, 8/1/25 52,810 56,941 Trust 1998-58 PX, 6.50%, 9/25/28 427,092 470,195 Series 2005-20I 1, 4.76%, 9/1/25 4,980,293 5,292,317 Trust 1998-58 PC, 6.50%, 10/25/28 2,310,178 2,574,165 Series 2006-20A 1, 5.21%, 1/1/26 4,938,826 5,324,703 Trust 2001-69 PQ, 6.00%, 12/25/31 2,667,209 3,002,085 Series 2006-20B 1, 5.35%, 2/1/26 1,525,995 1,657,611 Trust 2002-33 A1, 7.00%, 6/25/32 2,513,867 2,816,246 Series 2006-20C 1, 5.57%, 3/1/26 7,182,729 7,854,678 Trust 2002-69 Z, 5.50%, 10/25/32 315,970 352,984 Series 2006-20G 1, 6.07%, 7/1/26 13,100,376 14,647,576 Trust 2008-24 GD, 6.50%, 3/25/37 2,424,010 2,684,804 Series 2006-20H 1, 5.70%, 8/1/26 114,131 126,308 Trust 2007-47 PE, 5.00%, 5/25/37 6,239,945 6,692,835 Series 2006-20I 1, 5.54%, 9/1/26 240,274 262,899 Trust 2009-30 AG, 6.50%, 5/25/39 14,068,493 15,237,184 Series 2006-20J 1, 5.37%, 10/1/26 4,518,289 4,923,048 Trust 2009-53 QM, 5.50%, 5/25/39 3,437,366 3,685,011 Series 2006-20L 1, 5.12%, 12/1/26 3,545,363 3,843,033 Trust 2009-40 TB, 6.00%, 6/25/39 6,494,274 7,204,096 Series 2007-20A 1, 5.32%, 1/1/27 8,657,970 9,545,779 Trust 2001-T3 A1, 7.50%, 11/25/40 134,874 157,013 Series 2007-20C 1, 5.23%, 3/1/27 13,297,620 14,590,409 Trust 2010-123 WT, 7.00%, 11/25/40 52,894,063 61,029,609 Series 2007-20D 1, 5.32%, 4/1/27 13,335,560 14,689,595 Trust 2001-T7 A1, 7.50%, 2/25/41 88,383 103,282 Series 2007-20G 1, 5.82%, 7/1/27 9,282,355 10,459,094 Trust 2001-T5 A2, 6.989%, 6/19/41 51,853 58,242 112,452,637 Trust 2001-T5 A3, 7.50%, 6/19/41 260,737 310,032 FOREIGN AGENCY: 2.3% Trust 2001-T4 A1, 7.50%, 7/25/41 2,401,671 2,839,952 Corp. Nacional del Cobre de Chile(c) (Chile) Trust 2011-58 AT, 4.00%, 7/25/41 12,743,491 13,223,814 4.50%, 9/16/25(b) 122,575,000 115,425,936 Trust 2001-T10 A1, 7.00%, 12/25/41 2,710,771 3,179,728 Petroleo Brasileiro SA(c) (Brazil) Trust 2013-106 MA, 4.00%, 2/25/42 25,970,249 27,496,113 5.75%, 1/20/20 43,955,000 34,504,675 Trust 2002-90 A1, 6.50%, 6/25/42 5,514,942 6,244,734 5.375%, 1/27/21 187,220,000 139,478,900 Trust 2002-W6 2A1, 6.321%, 6/25/42 3,148,434 3,665,612 4.375%, 5/20/23 38,625,000 25,492,500 Trust 2002-W8 A2, 7.00%, 6/25/42 1,841,433 2,098,061 6.25%, 3/17/24 80,805,000 57,977,587 Trust 2002-T16 A3, 7.50%, 7/25/42 3,993,802 4,623,202 Petroleos Mexicanos(c) (Mexico) Trust 2003-W2 1A2, 7.00%, 7/25/42 8,407,371 9,762,673 4.875%, 1/18/24 123,065,000 114,758,112 Trust 2003-W4 3A, 6.561%, 10/25/42 2,514,950 2,839,493 4.25%, 1/15/25(b) 97,765,000 85,544,375 Trust 2012-121 NB, 7.00%, 11/25/42 1,687,780 1,946,294 4.50%, 1/23/26(b) 15,065,000 13,234,603 Trust 2003-7 A1, 6.50%, 12/25/42 4,454,329 5,119,161 6.625%, 6/15/35 102,290,000 91,421,687 Trust 2003-W1 2A, 6.392%, 12/25/42 3,240,697 3,729,835 5.50%, 6/27/44 5,900,000 4,438,806 Trust 2012-133 HF, 0.772%, 12/25/42 51,002,673 51,201,890 5.50%, 6/27/44(b) 36,075,000 27,140,666 Trust 2012-134 FD, 0.772%, 12/25/42 1,374,965 1,379,725 6.375%, 1/23/45 149,875,000 127,358,979 Trust 2012-134 FT, 0.772%, 12/25/42 72,211,974 72,106,321 (b) 5.625%, 1/23/46 190,720,000 145,938,944 Trust 2013-98 FA, 0.972%, 9/25/43 48,863,321 49,434,113 982,715,770 Trust 2013-101 CF, 1.022%, 10/25/43 24,492,837 24,719,741

See accompanying Notes to Financial Statements D ODGE &COX I NCOME F UND ▪ PAGE 7 PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE Trust 2013-101 FE, 1.022%, 10/25/43 $ 39,072,948 $ 39,463,822 2.008%, 4/1/35 $ 4,272,020 $ 4,496,576 Trust 2004-T1 1A2, 6.50%, 1/25/44 2,811,476 3,138,873 2.07%, 11/1/35 2,670,407 2,790,372 Trust 2004-W2 2A2, 7.00%, 2/25/44 147,903 167,997 2.128%, 4/1/44 84,904,636 87,949,868 Trust 2004-W2 5A, 7.50%, 3/25/44 6,824,597 7,781,906 2.169%, 7/1/35 1,672,315 1,767,239 Trust 2004-W8 3A, 7.50%, 6/25/44 5,139,443 5,979,654 2.17%, 8/1/35 2,592,642 2,735,746 Trust 2004-W14 1AF, 0.822%, 7/25/44 1,939,751 1,912,776 2.191%, 10/1/34 2,669,567 2,799,698 Trust 2004-W15 1A2, 6.50%, 8/25/44 1,115,003 1,231,412 2.194%, 7/1/35 1,978,426 2,088,827 Trust 2005-W1 1A3, 7.00%, 10/25/44 7,357,811 8,387,652 2.214%, 8/1/35 8,755,321 9,224,085 Trust 2001-79 BA, 7.00%, 3/25/45 873,791 993,601 2.237%, 9/1/34 3,606,884 3,805,095 Trust 2006-W1 1A1, 6.50%, 12/25/45 554,568 623,322 2.281%, 12/1/42 26,082,611 26,250,828 Trust 2006-W1 1A2, 7.00%, 12/25/45 4,066,186 4,692,731 2.289%, 5/1/43 5,512,318 5,546,856 Trust 2006-W1 1A3, 7.50%, 12/25/45 71,084 82,100 2.302%, 7/1/35 2,490,331 2,639,170 Trust 2006-W1 1A4, 8.00%, 12/25/45 4,652,779 5,531,068 2.311%, 10/1/43 66,096,177 67,347,462 Trust 2007-W10 1A, 6.315%, 8/25/47 18,269,753 20,456,277 2.321%, 2/1/44 4,992,102 5,114,862 Trust 2007-W10 2A, 6.324%, 8/25/47 5,244,232 5,860,933 2.35%, 1/1/37 4,386,771 4,611,034 Freddie Mac 2.371%, 9/1/42 15,680,251 16,034,249 Series 2456 CJ, 6.50%, 6/15/32 234,421 264,277 2.393%, 8/1/34 738,464 783,963 Series 3312 AB, 6.50%, 6/15/32 4,450,335 4,990,524 2.397%, 10/1/38 9,822,166 10,397,982 Series T-41 2A, 5.812%, 7/25/32 311,554 356,568 2.398%, 10/1/33 3,149,535 3,339,332 Series 2587 ZU, 5.50%, 3/15/33 7,177,250 8,051,584 2.399%, 12/1/36 3,797,562 4,005,727 Series 2610 UA, 4.00%, 5/15/33 2,603,484 2,704,708 2.412%, 7/1/34 3,376,707 3,563,399 Series T-48 1A, 5.464%, 7/25/33 3,219,620 3,718,306 2.415%, 2/1/43 22,285,757 22,811,114 Series 2708 ZD, 5.50%, 11/15/33 27,253,897 30,214,335 2.416%, 10/1/35 3,747,603 3,964,897 Series 3204 ZM, 5.00%, 8/15/34 9,717,783 10,873,964 2.433%, 6/1/35 1,339,022 1,412,630 Series 3330 GZ, 5.50%, 6/15/37 6,364,269 6,877,120 2.451%, 10/1/38 2,463,990 2,618,071 Series 4091 JF, 0.831%, 6/15/41 34,928,663 35,113,949 2.47%, 1/1/36 5,886,195 6,226,428 Series 4120 YF, 0.681%, 10/15/42 77,374,187 77,742,944 2.471%, 1/1/36 4,541,752 4,806,457 Series 309 F4, 0.861%, 8/15/43 87,134,952 86,077,522 2.474%, 5/1/44 24,095,420 24,666,222 Series 311 F1, 0.881%, 8/15/43 113,397,893 112,025,953 2.475%, 10/1/38 5,587,495 5,869,715 Series T-51 1A, 6.50%, 9/25/43 72,786 84,802 2.476%, 11/1/36 2,954,946 3,136,611 Series 4281 BC, 4.786%, 12/15/43 209,428,788 225,958,898 2.479%, 12/1/35-5/1/38 220,890,585 233,789,469 Series 4283 DW, 4.831%, 12/15/43 126,715,000 137,843,656 2.489%, 10/1/44 11,373,974 11,558,600 Series 4283 EW, 4.683%, 12/15/43 77,420,658 83,955,984 2.50%, 7/1/35 2,193,708 2,327,561 Series 4310 FA, 0.881%, 2/15/44 3,047,562 3,047,548 2.505%, 10/1/35 2,631,963 2,783,987 Series 4319 MA, 5.026%, 3/15/44 38,337,000 42,060,665 2.506%, 11/1/42 15,135,933 15,510,886 1,381,736,859 2.517%, 9/1/35 3,402,851 3,604,305 2.558%, 1/1/36 22,455,501 23,754,119 FEDERAL AGENCY MORTGAGE PASS-THROUGH: 29.5% Fannie Mae, 10 Year 2.561%, 8/1/35 5,070,129 5,394,631 6.00%, 11/1/16 246,089 248,714 2.571%, 4/1/45 10,852,275 11,016,996 Fannie Mae, 15 Year 2.601%, 4/1/42 19,446,107 20,008,241 3.50%, 8/1/26-12/1/29 800,843,886 839,998,715 2.625%, 9/1/38 1,105,905 1,177,271 4.00%, 9/1/25-5/1/29 210,720,621 223,409,135 2.66%, 2/1/43 9,315,226 9,811,094 4.50%, 3/1/29 47,030,431 50,546,304 2.674%, 8/1/45 22,412,131 22,804,576 5.00%, 9/1/25 75,564,467 81,350,479 2.675%, 10/1/44 23,757,282 24,271,339 5.50%, 1/1/18-7/1/25 205,240,634 222,454,729 2.698%, 11/1/43 23,901,698 24,532,516 6.00%, 7/1/16-3/1/23 71,990,929 77,317,094 2.702%, 4/1/44 27,654,815 28,557,438 6.50%, 5/1/16-12/1/19 5,198,921 5,320,478 2.717%, 12/1/44 11,695,367 11,948,652 7.00%, 11/1/17 6,149 6,253 2.719%, 2/1/45 33,558,952 34,261,785 7.50%, 8/1/17 70,340 71,379 2.72%, 12/1/44 7,692,711 7,860,462 Fannie Mae, 20 Year 2.721%, 10/1/44 17,293,969 17,687,676 4.00%, 9/1/30-7/1/35 2,587,757,122 2,767,465,569 2.731%, 9/1/44 17,817,126 18,242,468 4.50%, 3/1/29-1/1/34 736,111,213 798,572,337 2.739%, 2/1/37 10,913,461 11,602,789 Fannie Mae, 30 Year 2.74%, 8/1/45 21,609,630 22,044,970 4.50%, 6/1/36-2/1/45 913,899,731 991,081,657 2.743%, 11/1/44 9,363,226 9,577,359 5.00%, 7/1/37 16,645,776 18,388,688 2.75%, 12/1/44 8,005,738 8,187,041 5.50%, 2/1/33-11/1/39 274,213,435 308,216,177 2.759%, 9/1/44 19,069,689 19,532,453 6.00%, 11/1/28-2/1/39 179,729,016 204,911,049 2.764%, 10/1/44 17,720,770 18,139,395 6.50%, 12/1/32-8/1/39 77,343,880 89,196,415 2.769%, 11/1/44 15,911,672 16,280,583 7.00%, 4/1/32-2/1/39 111,585,383 129,145,893 2.783%, 12/1/44 56,871,308 58,180,953 Fannie Mae, 40 Year 2.787%, 2/1/44 10,278,368 10,554,985 4.50%, 1/1/52 14,324,834 15,340,512 2.80%, 8/1/44-10/1/44 76,544,703 78,387,177 Fannie Mae, Hybrid ARM 2.801%, 1/1/35 1,372,432 1,453,017 1.881%, 8/1/34 2,306,487 2,402,074 2.803%, 12/1/44 26,888,409 27,512,739 1.884%, 6/1/43 6,412,433 6,554,808 2.814%, 10/1/44 33,261,468 34,058,209 1.956%, 9/1/43 14,541,908 14,906,264 2.835%, 8/1/44 48,711,517 49,904,297 1.991%, 1/1/35 3,526,501 3,687,578 2.848%, 10/1/44 20,726,300 21,226,890

PAGE 8 ▪ D ODGE &COX I NCOME F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE 2.85%, 10/1/44 $ 22,200,611 $ 22,728,488 2.452%, 3/1/35 $ 1,783,179 $ 1,888,066 2.86%, 11/1/44 32,169,041 32,958,245 2.455%, 10/1/38 3,565,171 3,773,546 2.864%, 7/1/44 29,631,331 30,396,645 2.487%, 8/1/35 2,219,435 2,340,180 2.867%, 11/1/44 29,915,171 30,651,847 2.489%, 2/1/35 1,297,592 1,375,844 2.88%, 9/1/44 60,821,053 62,416,330 2.494%, 4/1/38 12,001,401 12,763,007 2.889%, 9/1/44-10/1/44 26,569,323 27,251,937 2.529%, 9/1/33 8,619,235 9,168,092 2.894%, 10/1/44 10,435,897 10,700,705 2.546%, 8/1/34 1,423,906 1,514,105 2.896%, 7/1/44 20,446,306 21,004,335 2.552%, 4/1/36 5,693,303 6,035,235 2.915%, 8/1/44 11,332,393 11,634,824 2.582%, 9/1/35 3,273,550 3,457,446 2.918%, 2/1/44 16,269,225 16,760,471 2.617%, 11/1/34 1,859,597 1,959,243 2.928%, 4/1/44 11,052,054 11,373,872 2.62%, 8/1/35 3,378,580 3,597,616 2.93%, 10/1/44 37,875,379 38,881,783 2.643%, 8/1/45 19,128,762 19,404,719 2.932%, 1/1/45 24,416,718 25,059,180 2.731%, 1/1/45 23,828,838 24,302,367 2.933%, 7/1/44 15,059,049 15,484,248 2.738%, 9/1/44 17,092,607 17,458,070 2.934%, 9/1/43 12,457,920 12,841,625 2.741%, 6/1/45 9,466,024 9,625,425 2.935%, 11/1/44 29,559,493 30,343,174 2.752%, 11/1/44 30,955,044 31,615,866 2.938%, 11/1/43 21,763,709 22,312,424 2.771%, 10/1/43 4,512,532 4,637,348 2.944%, 4/1/44 10,868,773 11,187,250 2.798%, 12/1/44 8,241,469 8,415,907 2.954%, 11/1/44 28,329,937 29,105,386 2.818%, 9/1/44 21,311,390 21,789,758 2.965%, 7/1/44 11,203,665 11,526,484 2.832%, 10/1/44 51,301,145 52,360,519 2.976%, 10/1/44 23,055,337 23,705,230 2.835%, 10/1/44 11,310,617 11,565,818 3.002%, 9/1/44 35,269,218 36,313,735 2.84%, 11/1/44 37,962,261 38,816,573 3.023%, 8/1/44 15,385,878 15,850,254 2.843%, 1/1/45 21,196,127 21,661,143 3.05%, 5/1/44 46,658,354 48,167,907 2.856%, 8/1/45 16,963,029 17,311,259 3.203%, 4/1/44 35,247,177 36,368,197 2.873%, 12/1/44 22,632,553 23,154,767 3.444%, 7/1/41 69,632,696 73,237,947 2.891%, 6/1/44 13,313,243 13,650,015 4.127%, 12/1/39 4,141,439 4,373,579 2.897%, 12/1/44 38,464,632 39,378,527 4.831%, 4/1/38 741,995 788,343 2.903%, 11/1/44 22,177,441 22,711,460 5.031%, 5/1/38 2,545,726 2,696,969 2.904%, 2/1/44 18,700,993 19,227,996 5.145%, 8/1/37 719,354 739,053 2.911%, 8/1/44 16,064,737 16,468,759 5.272%, 6/1/39 1,347,451 1,440,177 2.92%, 12/1/44 33,353,250 34,176,111 5.593%, 11/1/37 1,500,371 1,592,281 2.927%, 11/1/44 11,915,819 12,209,997 5.596%, 4/1/37 743,019 795,432 2.928%, 1/1/45-2/1/45 49,079,334 50,277,051 5.621%, 7/1/36 69,417 69,003 2.932%, 1/1/45 29,982,107 30,721,418 5.754%, 8/1/37 3,252,836 3,457,562 2.939%, 1/1/44 10,593,572 10,908,039 5.862%, 12/1/36 1,571,302 1,665,268 2.943%, 11/1/44 18,621,858 19,098,428 Fannie Mae, Multifamily DUS 2.947%, 11/1/44 50,853,178 52,162,911 Trust 2014-M13 ASQ2, 1.637%, 11/25/17 57,955,932 58,136,511 2.953%, 11/1/44 14,899,807 15,290,455 Pool AL6445, 2.405%, 1/1/22 24,893,787 25,412,080 2.959%, 12/1/44 18,850,353 19,339,341 2.966%, 9/1/44-11/1/44 48,601,169 49,900,149 Pool AL6455, 2.552%, 11/1/21 29,305,788 30,160,742 2.991%, 11/1/44 24,302,013 24,958,418 Pool AL6028, 2.934%, 7/1/21 5,004,967 5,144,361 3.015%, 7/1/44 11,243,962 11,562,718 Pool 745629, 5.389%, 1/1/18 109,689 113,041 3.02%, 5/1/44-10/1/44 213,994,107 220,371,790 Pool 888559, 5.487%, 6/1/17 9,976,584 10,404,728 3.022%, 7/1/44 13,668,619 14,065,442 Pool 888015, 5.496%, 11/1/16 20,439,338 20,426,623 3.025%, 10/1/44 24,638,087 25,337,589 Pool 735745, 5.60%, 1/1/17 542 542 3.043%, 8/1/44 17,862,494 18,380,513 Pool 745936, 6.061%, 8/1/16 602,706 612,444 3.058%, 4/1/44 14,158,052 14,581,352 Freddie Mac, Hybrid ARM 3.10%, 6/1/44 40,452,822 41,711,360 1.921%, 1/1/36 3,477,396 3,660,015 3.105%, 8/1/44 19,500,908 20,096,219 2.101%, 8/1/36 4,006,797 4,206,786 3.129%, 1/1/44 9,749,833 10,059,602 2.155%, 1/1/35 1,762,455 1,863,418 3.137%, 4/1/44 6,852,932 7,069,394 2.189%, 3/1/37 5,134,789 5,444,385 3.581%, 6/1/41 10,530,420 11,013,393 2.208%, 2/1/38 11,584,017 12,135,901 3.694%, 9/1/41 13,495,562 14,153,911 2.216%, 4/1/37 1,782,770 1,883,189 4.797%, 6/1/38 1,452,792 1,532,857 2.31%, 1/1/37 3,755,662 3,990,037 5.195%, 5/1/38 4,027,208 4,271,864 2.328%, 5/1/37 3,716,851 3,941,112 5.498%, 11/1/39 4,753,471 5,023,687 2.37%, 7/1/37 10,672,846 11,363,720 5.784%, 1/1/38 1,693,594 1,795,732 2.375%, 4/1/35 1,353,397 1,440,314 6.178%, 12/1/36 2,279,561 2,409,223 2.386%, 10/1/35 4,355,497 4,568,773 6.182%, 10/1/37 643,723 685,119 2.391%, 2/1/34 7,216,321 7,687,023 Freddie Mac Gold, 10 Year 2.394%, 4/1/38 10,044,623 10,669,831 6.00%, 9/1/16 79,918 80,519 2.399%, 4/1/37 2,679,394 2,813,996 Freddie Mac Gold, 15 Year 2.402%, 6/1/38 6,090,733 6,422,494 4.00%, 6/1/26-6/1/27 376,943,736 398,252,479 2.407%, 1/1/36 3,876,895 4,103,560 4.50%, 3/1/25-6/1/26 24,828,127 26,588,195 2.445%, 7/1/43 9,419,624 9,827,308 5.50%, 10/1/20-12/1/24 12,608,880 13,434,951 2.447%, 10/1/38 1,240,045 1,309,898 6.00%, 8/1/16-11/1/23 24,205,400 26,093,264 2.451%, 1/1/36 9,584,063 10,160,381 6.50%, 5/1/16-9/1/18 1,461,315 1,491,791

See accompanying Notes to Financial Statements D ODGE &COX I NCOME F UND ▪ PAGE 9 PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE Freddie Mac Gold, 20 Year CORPORATE: 46.3% 4.00%, 9/1/31-6/1/35 $ 351,048,364 $ 375,362,667 FINANCIALS: 15.5% 4.50%, 5/1/30-1/1/34 180,316,302 195,751,967 Anthem, Inc. 6.00%, 7/1/25-12/1/27 34,264,242 38,463,505 7.00%, 2/15/19 $ 83,470,000 $ 93,795,406 6.50%, 7/1/21-10/1/26 4,398,131 5,008,613 3.70%, 8/15/21 48,839,000 49,943,689 Freddie Mac Gold, 30 Year Bank of America Corp. 4.50%, 3/1/39-7/1/45 1,083,467,253 1,170,822,891 7.625%, 6/1/19 188,582,000 218,222,942 5.50%, 3/1/34-12/1/38 96,598,961 107,402,603 5.625%, 7/1/20 73,416,000 81,578,024 6.00%, 2/1/33-2/1/39 39,549,995 44,971,623 4.20%, 8/26/24 163,140,000 163,376,879 6.50%, 12/1/32-10/1/38 22,498,505 25,653,708 4.25%, 10/22/26 127,024,000 125,745,630 7.00%, 4/1/31-11/1/38 6,578,891 7,653,130 6.625%, 5/23/36(a) 241,528,000 275,087,591 7.90%, 2/17/21 366,298 391,837 Barclays PLC(c) (United Kingdom) Ginnie Mae, 30 Year 4.375%, 9/11/24 275,404,000 269,295,815 7.00%, 5/15/28 433,409 495,778 BNP Paribas SA(c) (France) 7.50%, 9/15/17-5/15/25 1,491,941 1,689,298 7.80%, 6/15/20-1/15/21 334,342 356,428 4.25%, 10/15/24 379,446,000 376,095,871 (b) 7.85%, 1/15/21-10/15/21 6,443 6,485 4.375%, 9/28/25 65,275,000 63,935,753 8.00%, 9/15/20 6,185 6,711 Boston Properties, Inc. 5.875%, 10/15/19 48,079,000 53,374,036 12,739,298,350 5.625%, 11/15/20 79,385,000 88,390,117 (f) PRIVATE LABEL CMO & REMIC: 0.0% 4.125%, 5/15/21 52,852,000 55,383,717 GSMPS Mortgage Loan Trust 3.85%, 2/1/23 99,296,000 101,373,769 Series 2004-4 1A4, 8.50%, 6/25/34 3.125%, 9/1/23 44,040,000 42,899,584 30 Year(b) 5,112,029 5,510,549 3.80%, 2/1/24 88,654,000 90,186,739 14,126,545,758 Capital One Financial Corp. ASSET-BACKED: 5.7% 4.75%, 7/15/21 182,195,000 197,441,989 AUTO LOAN: 0.7% 3.50%, 6/15/23 193,115,000 192,043,984 Ford Credit Auto Owner Trust 3.75%, 4/24/24 36,940,000 37,198,543 Series 2012-B A4, 1.00%, 9/15/17 3,893,649 3,893,953 3.20%, 2/5/25 67,240,000 65,034,259 Series 2014-C A3, 1.06%, 5/15/19 9,025,000 9,003,360 4.20%, 10/29/25 64,960,000 64,171,710 Series 2015-B A3, 1.16%, 11/15/19 57,115,000 56,692,646 Cigna Corp. Series 2015-1 A, 2.12%, 7/15/26(b) 200,480,000 197,990,098 4.00%, 2/15/22 62,964,000 65,095,017 Toyota Auto Receivables Owner Trust 7.65%, 3/1/23 6,317,000 7,662,268 Series 2014-B A3, 0.76%, 3/15/18 13,555,000 13,520,759 7.875%, 5/15/27 33,255,000 43,727,266 Series 2015-A A3, 1.12%, 2/15/19 8,325,000 8,302,381 8.30%, 1/15/33 8,195,000 10,764,010 Series 2014-C A4, 1.44%, 4/15/20 20,975,000 20,940,085 6.15%, 11/15/36 88,097,000 100,330,942 310,343,282 5.875%, 3/15/41 18,489,000 21,266,196 CREDIT CARD: 2.6% 5.375%, 2/15/42 54,405,000 59,595,999 American Express Master Trust Citigroup, Inc. Series 2014-2 A, 1.26%, 1/15/20 10,900,000 10,877,420 2.062%, 5/15/18 120,345,000 122,382,321 Series 2014-3 A, 1.49%, 4/15/20 381,035,481 381,146,057 3.50%, 5/15/23 105,730,000 103,963,569 Chase Issuance Trust 6.692%, 10/30/40(a) 381,543,025 399,704,473 Series 2006-A2 A2, 5.16%, 4/16/18 17,465,000 17,551,382 Equity Residential Series 2013-A8 A8, 1.01%, 10/15/18 11,740,000 11,729,138 4.75%, 7/15/20 5,200,000 5,619,240 Series 2014-A1 A1, 1.15%, 1/15/19 152,146,000 152,023,675 4.625%, 12/15/21 102,744,000 111,557,380 Series 2014-A6 A6, 1.26%, 7/15/19 24,285,000 24,233,030 Series 2014-A7 A7, 1.38%, 11/15/19 250,740,000 250,027,297 3.00%, 4/15/23 47,300,000 46,464,682 Series 2015-A2 A2, 1.59%, 2/18/20 260,397,000 260,391,219 3.375%, 6/1/25 77,890,000 77,090,615 General Electric Co. 1,107,979,218 2.342%, 11/15/20(b) 228,648,000 226,972,696 OTHER: 1.7% Health Net, Inc. Rio Oil Finance Trust(c) (Brazil) 6.375%, 6/1/17 120,854,000 125,688,160 9.25%, 7/6/24(b) 592,816,000 438,683,840 HSBC Holdings PLC(c) (United Kingdom) 9.75%, 1/6/27(b) 382,550,000 281,174,250 5.10%, 4/5/21 85,935,000 95,542,447 719,858,090 9.30%, 6/1/21 100,000 127,338 STUDENT LOAN: 0.7% 6.50%, 5/2/36 179,105,000 213,642,892 Navient Student Loan Trust (Private Loans) 6.50%, 9/15/37 195,591,000 234,671,842 Series 2014-AA A2A, 2.74%, 2/15/29(b) 35,880,000 35,217,698 6.80%, 6/1/38 32,000,000 39,829,920 SLM Student Loan Trust (Private Loans) JPMorgan Chase & Co. (b) Series 2013-A A2A, 1.77%, 5/17/27 58,445,000 57,168,766 3.375%, 5/1/23 92,238,000 90,704,174 (b) Series 2012-B A2, 3.48%, 10/15/30 68,051,448 68,985,950 4.125%, 12/15/26 106,000,000 105,809,306 Series 2013-C A2A, 2.94%, 10/15/31(b) 41,885,000 42,171,506 8.75%, 9/1/30(a) 48,438,000 69,369,319 Series 2012-E A2A, 2.09%, 6/15/45(b) 14,555,000 14,434,832 Lloyds Banking Group PLC(c) Series 2012-C A2, 3.31%, 10/15/46(b) 94,748,000 95,940,044 (United Kingdom) 313,918,796 4.50%, 11/4/24 218,317,000 221,645,898 2,452,099,386

PAGE 10 ▪ D ODGE &COX I NCOME F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE Navient Corp. CRH PLC(c) (Ireland) 6.00%, 1/25/17 $166,603,000 $ 170,768,075 3.875%, 5/18/25(b) $185,239,000 $ 184,066,252 4.625%, 9/25/17 111,437,000 109,765,445 CSX Corp. 8.45%, 6/15/18 192,028,000 202,109,470 9.75%, 6/15/20 10,067,000 12,790,476 Royal Bank of Scotland Group PLC(c) 6.251%, 1/15/23 15,173,398 17,315,396 (United Kingdom) Dillard’s, Inc. 6.125%, 12/15/22 292,243,000 318,167,584 7.13%, 8/1/18 23,565,000 25,935,097 6.00%, 12/19/23 264,320,000 284,674,226 7.875%, 1/1/23 275,000 324,070 Unum Group 7.75%, 7/15/26 21,016,000 24,307,463 7.19%, 2/1/28 11,295,000 13,265,740 7.75%, 5/15/27 12,848,000 14,951,757 7.25%, 3/15/28 25,060,000 29,152,398 7.00%, 12/1/28 28,225,000 31,283,913 6.75%, 12/15/28 8,107,000 9,514,448 Dow Chemical Co. Wells Fargo & Co. 8.55%, 5/15/19 156,085,000 184,019,532 4.30%, 7/22/27 247,864,000 253,229,016 4.25%, 11/15/20 7,726,000 8,090,853 6,694,450,419 3.00%, 11/15/22 24,240,000 23,221,605 INDUSTRIALS: 29.5% 7.375%, 11/1/29 69,100,000 85,386,317 Allergan PLC(c) (Ireland) 9.40%, 5/15/39 135,313,000 194,447,217 3.00%, 3/12/20 181,325,000 181,180,484 5.25%, 11/15/41 12,378,000 12,064,948 3.45%, 3/15/22 56,635,000 56,725,446 Eaton Corp. PLC(c) (Ireland) 3.80%, 3/15/25 204,424,000 203,398,814 2.75%, 11/2/22 61,835,000 59,840,203 AT&T, Inc. FedEx Corp. 3.40%, 5/15/25 124,574,000 119,742,397 8.00%, 1/15/19 18,050,000 21,014,315 8.25%, 11/15/31 190,653,000 255,137,564 7.65%, 7/15/24 1,990,174 2,328,504 6.55%, 2/15/39 59,430,000 66,755,401 Ford Motor Credit Co. LLC(e) 5.35%, 9/1/40 59,744,000 59,008,551 8.125%, 1/15/20 16,910,000 19,923,835 4.75%, 5/15/46 77,670,000 71,100,982 5.75%, 2/1/21 215,710,000 238,416,713 Becton, Dickinson and Co. 5.875%, 8/2/21 153,240,000 170,889,877 3.734%, 12/15/24 46,675,000 47,103,383 3.219%, 1/9/22 39,700,000 38,869,675 BHP Billiton, Ltd.(c) (Australia) 4.25%, 9/20/22 44,075,000 45,094,014 6.75%, 10/19/75(a)(b) 223,972,000 216,132,980 4.375%, 8/6/23 27,875,000 28,652,629 Boston Scientific Corp. General Electric Co. 6.00%, 1/15/20 15,690,000 17,421,784 4.375%, 9/16/20 14,629,000 15,887,665 Burlington Northern Santa Fe LLC(e) 4.625%, 1/7/21 15,139,000 16,628,890 4.70%, 10/1/19 75,445,000 81,617,985 4.65%, 10/17/21 15,937,000 17,622,402 7.57%, 1/2/21 10,496,389 11,589,977 Hewlett Packard Enterprise Co. 8.251%, 1/15/21 4,300,228 4,841,235 3.60%, 10/15/20(b) 354,040,000 354,889,696 4.10%, 6/1/21 5,820,000 6,133,954 Imperial Tobacco Group PLC(c) 3.05%, 9/1/22 39,535,000 39,501,988 (United Kingdom) 5.943%, 1/15/23 57,522 61,726 3.75%, 7/21/22(b) 124,595,000 125,107,958 3.85%, 9/1/23 89,340,000 92,856,780 4.25%, 7/21/25(b) 385,702,000 391,458,988 5.72%, 1/15/24 15,809,857 17,404,787 Kinder Morgan, Inc. 3.75%, 4/1/24 29,682,000 30,415,561 3.45%, 2/15/23 23,425,000 19,460,764 5.342%, 4/1/24 5,223,959 5,645,271 3.50%, 9/1/23 43,211,000 35,847,241 5.629%, 4/1/24 21,148,315 23,133,614 5.625%, 11/15/23(b) 49,500,000 45,278,739 5.996%, 4/1/24 40,392,566 44,916,534 4.15%, 2/1/24 47,997,000 41,435,762 3.442%, 6/16/28(b) 89,043,354 85,967,440 4.25%, 9/1/24 22,635,000 19,268,927 Cemex SAB de CV(c) (Mexico) 4.30%, 6/1/25 196,680,000 170,021,403 6.50%, 12/10/19(b) 138,875,000 134,014,375 6.50%, 2/1/37 50,861,000 43,686,242 7.25%, 1/15/21(b) 163,907,000 157,760,487 6.95%, 1/15/38 92,139,000 81,909,913 6.00%, 4/1/24(b) 113,175,000 97,047,562 6.50%, 9/1/39 72,546,000 59,824,551 5.70%, 1/11/25(b) 202,411,000 169,266,199 5.00%, 8/15/42 57,054,000 42,097,579 6.125%, 5/5/25(b) 78,400,000 67,032,000 5.00%, 3/1/43 71,101,000 52,669,061 Charter Communications, Inc. 5.50%, 3/1/44 90,632,000 70,688,247 4.908%, 7/23/25(b) 122,505,000 122,384,578 5.40%, 9/1/44 64,829,000 48,991,664 6.484%, 10/23/45(b) 92,015,000 92,047,665 5.55%, 6/1/45 40,000,000 31,236,480 Cox Enterprises, Inc. 5.05%, 2/15/46 62,325,000 46,218,475 5.875%, 12/1/16(b) 76,215,000 78,796,859 LafargeHolcim, Ltd.(c) (Switzerland) 9.375%, 1/15/19(b) 145,119,000 168,177,103 6.50%, 7/15/16 75,696,000 77,604,977 3.25%, 12/15/22(b) 147,403,000 133,988,295 2.95%, 6/30/23(b) 241,788,000 213,011,359 3.85%, 2/1/25(b) 197,601,000 181,177,393

See accompanying Notes to Financial Statements D ODGE &COX I NCOME F UND ▪ PAGE 11 PORTFOLIO OF INVESTMENTS December 31, 2015

DEBT SECURITIES (continued)

PAR VALUE VALUE PAR VALUE VALUE Macy’s, Inc. Union Pacific Corp. 6.65%, 7/15/24 $ 52,526,000 $ 59,198,378 6.70%, 2/23/19 $ 2,427,820 $ 2,587,911 7.00%, 2/15/28 27,985,000 32,478,607 7.60%, 1/2/20 1,125,478 1,279,734 6.70%, 9/15/28 34,115,000 37,597,459 6.061%, 1/17/23 6,682,098 7,322,390 6.90%, 4/1/29 67,888,000 76,510,523 4.698%, 1/2/24 3,639,828 3,890,066 6.90%, 1/15/32 60,095,000 66,323,907 3.646%, 2/15/24 35,886,000 37,476,037 6.70%, 7/15/34 130,660,000 135,751,951 3.75%, 3/15/24 9,550,000 10,019,879 4.50%, 12/15/34 154,923,000 129,466,053 5.082%, 1/2/29 8,187,160 8,890,290 6.375%, 3/15/37 101,593,000 102,808,154 5.866%, 7/2/30 43,098,738 49,195,541 Naspers, Ltd.(c) (South Africa) 6.176%, 1/2/31 31,842,455 36,207,069 6.00%, 7/18/20(b) 220,010,000 234,075,239 Verizon Communications, Inc. 5.50%, 7/21/25(b) 257,875,000 248,084,002 4.15%, 3/15/24 66,000,000 67,867,866 Nordstrom, Inc. 3.50%, 11/1/24 169,000,000 167,003,603 6.95%, 3/15/28 20,107,000 24,591,504 4.272%, 1/15/36 163,817,000 147,862,207 Norfolk Southern Corp. 6.55%, 9/15/43 403,637,000 479,188,563 7.70%, 5/15/17 28,585,000 30,895,240 Vulcan Materials Co. 9.75%, 6/15/20 13,813,000 17,630,319 7.50%, 6/15/21 143,984,000 167,741,360 RELX PLC(c) (United Kingdom) Xerox Corp. 8.625%, 1/15/19 28,613,000 33,372,973 6.40%, 3/15/16 72,137,000 72,802,031 3.125%, 10/15/22 144,337,000 140,262,944 7.20%, 4/1/16 25,586,000 25,916,827 Sprint Corp. 6.75%, 2/1/17 62,799,000 65,807,637 6.00%, 12/1/16 303,716,000 302,197,420 2.95%, 3/15/17 1,125,000 1,133,397 Teck Resources, Ltd.(c) (Canada) 6.35%, 5/15/18 106,052,000 113,391,965 4.75%, 1/15/22 13,000,000 6,305,000 5.625%, 12/15/19 87,407,000 92,985,140 3.75%, 2/1/23 26,161,000 12,099,463 4.50%, 5/15/21 63,744,000 64,366,014 6.00%, 8/15/40 17,000,000 7,140,000 Zoetis, Inc. 6.25%, 7/15/41 36,795,000 16,189,800 3.45%, 11/13/20 39,377,000 39,424,213 5.40%, 2/1/43 51,150,000 21,099,375 4.50%, 11/13/25 156,205,000 158,403,117 (c) Telecom Italia SPA (Italy) 12,705,173,014 6.999%, 6/4/18 165,232,000 178,450,560 UTILITIES: 1.3% 7.175%, 6/18/19 200,711,000 221,287,892 Dominion Resources, Inc. 5.303%, 5/30/24(b) 154,656,000 152,722,800 5.75%, 10/1/54(a) 232,036,000 227,348,872 7.20%, 7/18/36 53,458,000 53,992,580 Enel SPA(c) (Italy) 7.721%, 6/4/38 118,140,000 123,160,950 6.80%, 9/15/37(b) 153,664,000 187,631,120 The Kraft Heinz Co. 6.00%, 10/7/39(b) 137,712,000 153,989,834 3.95%, 7/15/25(b) 36,303,000 36,654,449 Time Warner Cable, Inc. 568,969,826 8.75%, 2/14/19 130,460,000 151,378,870 19,968,593,259 8.25%, 4/1/19 237,543,000 272,993,442 TOTAL DEBT SECURITIES 5.00%, 2/1/20 20,700,000 21,911,488 (Cost $41,826,048,489) 41,883,192,379 4.125%, 2/15/21 30,545,000 31,188,705 4.00%, 9/1/21 40,609,000 41,003,313 6.55%, 5/1/37 46,188,000 46,716,391 6.75%, 6/15/39 112,072,000 112,470,528 Time Warner, Inc. 7.625%, 4/15/31 281,417,000 348,204,852 7.70%, 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 16,790,121 6.40%, 12/15/35 49,525,000 57,042,845 6.15%, 3/1/37 31,905,000 35,549,476 6.65%, 11/15/37 79,075,000 91,889,974 6.15%, 2/15/41 40,108,000 45,090,296

PAGE 12 ▪ D ODGE &COX I NCOME F UND See accompanying Notes to Financial Statements PORTFOLIO OF INVESTMENTS December 31, 2015

SHORT-TERM INVESTMENTS: 2.1% FUTURES CONTRACTS PAR VALUE VALUE Unrealized COMMERCIAL PAPER: 0.7% Number of Expiration Notional Appreciation/ Anthem, Inc. Description Contracts Date Amount (Depreciation) 1/20/16(b) $100,000,000 $ 99,959,889 10 Year U.S. UnitedHealth Group, Inc. Treasury Note— 1/7/16(b) 173,000,000 172,980,970 Short Position 18,678 Mar 2016 $(2,351,676,938) $ 8,831,538 272,940,859 Long-Term U.S. MONEY MARKET FUND: 0.1% Treasury Bond— SSgA U.S. Treasury Money Short Position 11,371 Mar 2016 (1,804,435,562) (5,762,192) Market Fund 43,184,920 43,184,920 $ 3,069,346 REPURCHASE AGREEMENT: 1.3% Fixed Income Clearing Corporation(d) 0.08%, dated 12/31/15, due 1/4/16, maturity value $574,252,104 574,247,000 574,247,000 TOTAL SHORT-TERM INVESTMENTS (Cost $890,372,779) $ 890,372,779 TOTAL INVESTMENTS (Cost $42,716,421,268) 99.2% $ 42,773,565,158 OTHER ASSETS LESS LIABILITIES 0.8% 351,687,601 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, all such securities in total represented $6,277,368,282 or 14.7% of net assets. These securities have been deemed liquid by Dodge & Cox, investment manager, 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 its subsidiaries. In determining a parent company’s country designation, the Fund generally references the country of incorporation.

ARM: Adjustable Rate Mortgage CMO: Collateralized Mortgage Obligation DUS: Delegated Underwriting and Servicing GO: General Obligation RB: Revenue Bond REMIC: Real Estate Mortgage Investment Conduit

See accompanying Notes to Financial Statements D ODGE &COX I NCOME F UND ▪ PAGE 13 STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended December 31, 2015 December 31, 2015 December 31, 2014 ASSETS: OPERATIONS: Investments, at value (cost $42,716,421,268) $42,773,565,158 Net investment income $ 1,294,198,890 $ 841,617,395 Cash held at broker 74,679,210 Net realized gain (loss) (89,786,703) 184,870,735 Receivable for investments sold 23,335,462 Net change in unrealized Receivable for Fund shares sold 40,308,548 appreciation/depreciation (1,501,188,107) 408,715,923 Interest receivable 386,215,271 (296,775,920) 1,435,204,053 Prepaid expenses and other assets 223,995 43,298,327,644 DISTRIBUTIONS TO LIABILITIES: SHAREHOLDERS FROM: Payable to broker for variation margin 16,915,938 Net investment income (1,293,890,373) (836,624,131) Payable for Fund shares redeemed 139,049,185 Net realized gain (25,501,766) (232,101,623) Management fees payable 14,800,439 Total distributions (1,319,392,139) (1,068,725,754) Accrued expenses 2,309,323

173,074,885 FUND SHARE NET ASSETS $43,125,252,759 TRANSACTIONS: Proceeds from sale of shares 14,066,640,197 18,587,943,566 NET ASSETS CONSIST OF: Reinvestment of distributions 1,067,877,119 840,852,670 Paid in capital $43,145,771,932 Cost of shares redeemed (9,521,033,129) (5,321,422,005) Undistributed net investment income 12,530,465 Undistributed net realized loss (93,262,874) Net increase from Fund Net unrealized appreciation 60,213,236 share transactions 5,613,484,187 14,107,374,231 $43,125,252,759 Total increase in net assets 3,997,316,128 14,473,852,530 Fund shares outstanding (par value $0.01 each, unlimited shares authorized) 3,244,929,885 NET ASSETS: Net asset value per share $ 13.29 Beginning of year 39,127,936,631 24,654,084,101 End of year (including undistributed net investment income of $12,530,465 and STATEMENT OF OPERATIONS $12,221,948, respectively) $43,125,252,759 $39,127,936,631 Year Ended December 31, 2015 INVESTMENT INCOME: SHARE INFORMATION: Dividends $ 28,970,448 Shares sold 1,023,992,169 1,341,256,318 Interest 1,452,159,615 Distributions reinvested 79,082,204 61,052,395 Shares redeemed (698,078,052) (384,742,642) 1,481,130,063 Net increase in shares outstanding 404,996,321 1,017,566,071 EXPENSES: Management fees 174,080,596 Custody and fund accounting fees 672,473 Transfer agent fees 8,733,946 Professional services 187,581 Shareholder reports 1,513,816 Registration fees 956,756 Trustees’ fees 237,500 Miscellaneous 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/depreciation Investments (1,566,447,658) Treasury futures contracts 65,259,551 Net realized and unrealized loss (1,590,974,810) NET DECREASE IN NET ASSETS FROM OPERATIONS $ (296,775,920)

PAGE 14 ▪ D ODGE &COX I NCOME F UND See accompanying Notes to Financial Statements NOTES TO FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT available or are deemed unreliable. The Pricing Committee ACCOUNTING POLICIES considers relevant indications of value that are reasonably available Dodge & Cox Income Fund (the “Fund”) is one of the series to it in determining the fair value assigned to a particular security, constituting the Dodge & Cox Funds (the “Trust” or the “Funds”). such as the value of similar financial instruments, trading volumes, The Trust is organized as a Delaware statutory trust and is contractual restrictions on disposition, related corporate actions, registered under the Investment Company Act of 1940, as and changes in economic conditions. In doing so, the Pricing amended, as an open-end management investment company. The Committee employs various methods for calibrating fair valuation Fund commenced operations on January 3, 1989, and seeks high approaches, including a regular review of key inputs and and stable current income consistent with long-term preservation assumptions, back-testing, and review of any related market activity. of capital. Risk considerations and investment strategies of the Valuing securities through a fair value determination involves Fund are discussed in the Fund’s Prospectus. greater reliance on judgment than valuation of securities based on The financial statements have been prepared in conformity readily available market quotations. In some instances, lack of with accounting principles generally accepted in the United States information and uncertainty as to the significance of information of America, which require the use of estimates and assumptions by may lead to a conclusion that a prior valuation is the best indication management. Actual results may differ from those estimates. of a security’s value. When fair value pricing is employed, the prices Significant accounting policies are as follows: of securities used by the Fund to calculate its NAV may differ from Security valuation The Fund’s net assets are valued as of the quoted or published prices for the same securities. close of trading on the New York Stock Exchange (NYSE), Security transactions, investment income, expenses, generally 4:00 p.m. Eastern Time, each day that the NYSE is open and distributions Security transactions are recorded on the trade for business. If the NYSE is closed due to inclement weather, date. Realized gains and losses on securities sold are determined on technology problems, or for any other reason on a day it would the basis of identified cost. normally be open for business, or the NYSE has an unscheduled Interest income is recorded on the accrual basis. Interest early closing on a day it has opened for business, the Fund reserves income includes coupon interest, amortization of premium and the right to calculate the Fund’s NAV as of the normally accretion of discount on debt securities, and gain/loss on scheduled close of regular trading on the NYSE for that day, paydowns. The ability of the issuers of the debt securities held by provided that Dodge & Cox believes that it can obtain reliable the Fund to meet their obligations may be affected by economic market quotes or valuations. developments in a specific industry, state, or region. Debt Debt securities and non-exchange traded derivatives are obligations may be placed on non-accrual status and related valued based on prices received from independent pricing services interest income may be reduced by ceasing current accruals and which utilize both dealer-supplied valuations and pricing models. writing off interest receivables when the collection of all or a Pricing models may consider quoted prices for similar securities, portion of interest has become doubtful. A debt obligation is interest rates, prepayment speeds, and credit risk. Exchange-traded removed from non-accrual status when the issuer resumes interest derivatives are valued at the settlement price determined by the payments or when collectibility of interest is reasonably assured. relevant exchange. Security values are not discounted based on the Dividend income is recorded on the ex-dividend date. size of the Fund’s position. Short-term securities less than 60 days Expenses are recorded on the accrual basis. Some expenses of to maturity may be valued at amortized cost if amortized cost the Trust can be directly attributed to a specific series. Expenses approximates current value. Mutual funds are valued at their which cannot be directly attributed are allocated among the Funds respective net asset values. All securities held by the Fund are in the Trust based on relative net assets or other expense denominated in U.S. dollars. methodologies determined by the nature of the expense. If market quotations are not readily available or if a security’s Distributions to shareholders are recorded on the ex-dividend value is believed to have materially changed after the close of the date. security’s primary market but before the close of trading on the Repurchase agreements The Fund enters into repurchase NYSE, the security is valued at fair value as determined in good agreements, secured by U.S. government or agency securities, faith by or under the direction of the Fund’s Board of Trustees. The which involve the purchase of securities from a counterparty with Board of Trustees has appointed Dodge & Cox, the Fund’s a simultaneous commitment to resell the securities at an agreed- investment manager, to make fair value determinations in upon date and price. It is the Fund’s policy that its custodian take accordance with the Dodge & Cox Funds Valuation Policies possession of the underlying collateral securities, the fair value of (“Valuation Policies”), subject to Board oversight. Dodge & Cox which exceeds the principal amount of the repurchase transaction, has established a Pricing Committee that is comprised of including accrued interest, at all times. In the event of default by representatives from Treasury, Legal, Compliance, and Operations. the counterparty, the Fund has the contractual right to liquidate The Pricing Committee is responsible for implementing the the securities and to apply the proceeds in satisfaction of the Valuation Policies, including determining the fair value of securities obligation. when market quotations or market-based valuations are not readily

D ODGE &COX I NCOME F UND ▪ PAGE 15 NOTES TO FINANCIAL STATEMENTS

Futures Contracts Futures contracts involve an obligation The following is a summary of the inputs used to value the to purchase or sell (depending on whether the Fund has entered a Fund’s holdings at December 31, 2015: long or short futures contract, respectively) an asset at a future LEVEL 2 date, at a price set at the time of the contract. Upon entering into LEVEL 1 (Other Significant Classification(a) (Quoted Prices) Observable Inputs) a futures contract, the Fund is required to deposit an amount of cash or liquid assets (referred to as initial margin) in a segregated Securities Debt Securities account with the clearing broker. Subsequent payments (referred U.S. Treasury $ — $ 2,149,401,099 to as variation margin) to and from the clearing broker are made Government-Related — 3,186,552,877 on a daily basis based on changes in the market value of futures Mortgage-Related — 14,126,545,758 contracts. Futures contracts are traded publicly and their market Asset-Backed — 2,452,099,386 value changes daily. Changes in the market value of open futures Corporate — 19,968,593,259 Short-term Investments contracts are recorded as unrealized appreciation or depreciation in Commercial Paper — 272,940,859 the Statement of Operations. Realized gains and losses on futures Money Market Fund 43,184,920 — contracts are recorded in the Statement of Operations at the Repurchase Agreement — 574,247,000 closing or expiration of the contracts. Cash deposited with a Total Securities $ 43,184,920 $ 42,730,380,238 broker as initial margin is recorded on the Statement of Assets and Liabilities. A receivable and/or payable to brokers for daily Other Financial Instruments(b) Treasury Futures Contracts variation margin is also recorded on the Statement of Assets and Appreciation $ 8,831,538 $ — Liabilities. Depreciation (5,762,192) — Investments in futures contracts may include certain risks, which may be different from, and potentially greater than, those of (a) U.S. Treasury securities were transferred from Level 1 to Level 2 during the year. There were no Level 3 securities at December 31, 2015 and 2014 and the underlying securities. To the extent the Fund uses futures, it is there were no transfers to Level 3 during the year. exposed to additional volatility and potential losses resulting from (b) Represents unrealized appreciation/(depreciation). leverage. The Fund has maintained short Treasury futures contracts to NOTE 3—RELATED PARTY TRANSACTIONS assist with the management of the portfolio’s interest rate Management fees Under a written agreement approved by a exposure. During the year ended December 31, 2015, these unanimous vote of the Board of Trustees, the Fund pays an annual Treasury futures contracts had notional values ranging from 5% to management fee of 0.50% of the Fund’s average daily net assets up 10% of net assets. to $100 million and 0.40% of the Fund’s average daily net assets in Indemnification Under the Trust’s organizational documents, excess of $100 million to Dodge & Cox, investment manager of its officers and trustees are indemnified against certain liabilities the Fund. The agreement further provides that Dodge & Cox shall arising out of the performance of their duties to the Trust. In waive its fee to the extent that such fee plus all other ordinary addition, in the normal course of business the Trust enters into operating expenses of the Fund exceed 1% of the average daily net contracts that provide general indemnities to other parties. The assets for the year. Trust’s maximum exposure under these arrangements is unknown as Fund officers and trustees All officers and two of the this would involve future claims that may be made against the Trust trustees of the Trust are officers or employees of Dodge & Cox. that have not yet occurred. The Trust pays a fee only to those trustees who are not affiliated with Dodge & Cox. NOTE 2—VALUATION MEASUREMENTS Cross trades Cross trading is the buying or selling of Various inputs are used in determining the value of the Fund’s portfolio securities between funds to which Dodge & Cox serves as investments. These inputs are summarized in the three broad levels investment manager. At its regularly scheduled quarterly meetings, listed below. the Board of Trustees reviews such transactions as of the most ▪ Level 1: Quoted prices in active markets for identical securities recent calendar quarter for compliance with the requirements and ▪ Level 2: Other significant observable inputs (including quoted restrictions set forth by Rule 17a-7 under the Investment prices for similar securities, market indices, interest rates, credit Company Act of 1940. During the year ending December 31, risk, etc.) 2015, the Fund executed cross trades with the Dodge & Cox ▪ Level 3: Significant unobservable inputs (including Fund Balanced Fund pursuant to Rule 17a-7 under the Investment management’s assumptions in determining the fair value Company Act of 1940. of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

PAGE 16 ▪ D ODGE &COX I NCOME F UND NOTES TO FINANCIAL STATEMENTS

NOTE 4—INCOME TAX INFORMATION AND All Funds in the Trust participate in a $500 million DISTRIBUTIONS TO SHAREHOLDERS committed credit facility (Line of Credit) with State Street Bank A provision for federal income taxes is not required since the Fund and Trust Company, to be utilized for temporary or emergency intends to continue to qualify as a regulated investment company purposes to fund shareholder redemptions or for other short-term under Subchapter M of the Internal Revenue Code and distribute liquidity purposes. The maximum amount available to the Fund is all of its taxable income to shareholders. Distributions are $250 million. Each Fund pays an annual commitment fee on its determined in accordance with income tax regulations, and such pro-rata portion of the Line of Credit. For the year ended amounts may differ from net investment income and realized gains December 31, 2015, the Fund’s commitment fee amounted to for financial reporting purposes. Financial reporting records are $146,884 and is reflected as a Miscellaneous Expense in the adjusted for permanent book to tax differences at year end to reflect Statement of Operations. Interest on borrowings is charged at the tax character. prevailing rate. There were no borrowings on the Line of Credit Book to tax differences are primarily due to differing treatments during the year. of wash sales, net short-term realized gain (loss), and Treasury futures contracts. At December 31, 2015, the cost of investments for federal NOTE 6—PURCHASES AND SALES OF INVESTMENTS income tax purposes was $42,716,465,638. For the year ended December 31, 2015, purchases and sales of Distributions during the years noted below were characterized as securities, other than short-term securities and U.S. government follows for federal income tax purposes: securities, aggregated $9,648,393,292 and $2,894,870,558, respectively. For the year ended December 31, 2015, purchases and Year Ended Year Ended December 31, 2015 December 31, 2014 sales of U.S. government securities aggregated $6,322,132,495 and $7,335,682,500, respectively. Ordinary income $1,300,100,433 $864,273,705 ($0.405 per share) ($0.397 per share) NOTE 7—SUBSEQUENT EVENTS Long-term capital gain $19,291,706 $204,452,049 Fund management has determined that no material events or ($0.006 per share) ($0.088 per share) transactions occurred subsequent to December 31, 2015, and At December 31, 2015, the tax basis components of through the date of the Fund’s financial statements issuance, which distributable earnings were as follows: require additional disclosure in the Fund’s financial statements.

Unrealized appreciation $ 962,670,848 Unrealized depreciation (905,571,328) Net unrealized appreciation 57,099,520 Undistributed ordinary income 12,919,601 Undistributed long-term capital gain 59,927,325 Deferred loss(a) (150,465,619)

(a) Represents net short-term realized loss incurred between November 1, 2015 and December 31, 2015. As permitted by tax regulations, the Fund has elected to treat this loss as arising in 2016.

D ODGE &COX I NCOME F UND ▪ PAGE 17 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 $13.78 $13.53 $13.86 $13.30 $13.23 Income from investment operations: Net investment income 0.40 0.39 0.42 0.48 0.55 Net 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 distributions (0.41) (0.49) (0.42) (0.48) (0.55) Net asset value, end of year $13.29 $13.78 $13.53 $13.86 $13.30 Total return (0.59)% 5.48% 0.64% 7.94% 4.76% Ratios/supplemental data: Net assets, end of year (millions) $43,125 $39,128 $24,654 $26,539 $24,051 Ratio of expenses to average net assets 0.43% 0.44% 0.43% 0.43% 0.43% Ratio of net investment income to average net assets 2.97% 2.89% 3.00% 3.52% 4.12% Portfolio turnover rate 24% 27% 38% 26% 27%

See accompanying Notes to Financial Statements

PAGE 18 ▪ D ODGE &COX I NCOME F UND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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 of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dodge & Cox Income Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) 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 in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

D ODGE &COX I NCOME F UND ▪ PAGE 19 BOARD APPROVAL OF FUNDS’ INVESTMENT counsel on November 11, 2015, and again on December 16, 2015, MANAGEMENT AGREEMENTS AND to discuss whether to renew the Agreements. The Board, including MANAGEMENT FEES the Independent Trustees, subsequently concluded that the (unaudited) existing Agreements are fair and reasonable and voted to approve The Board of Trustees is responsible for overseeing the performance of the Agreements. In considering the Agreements, the Board, the Dodge & Cox Funds’ investment manager and determining including the Independent Trustees, did not identify any single whether to continue the Investment Management Agreements factor or particular information as all-important or controlling. In between the Funds and Dodge & Cox each year (the “Agreements”). reaching the decision to approve the Agreements, the Board At a meeting of the Board of Trustees of the Trust held on December considered several factors, discussed below, to be key factors and 16, 2015, the Trustees, by a unanimous vote (including a separate reached the conclusions described below. vote of those Trustees who are not “interested persons” (as defined in the Investment Company Act of 1940) (the “Independent NATURE, QUALITY, AND EXTENT OF THE SERVICES Trustees”)), approved the renewal of the Agreements for an The Board considered that Dodge & Cox provides a wide range of additional one-year term through December 31, 2016 with respect to services to the Funds in addition to portfolio management and that each Fund. During the course of the year, the Board received a wide the quality of these services has been excellent in all respects. The variety of materials relating to the investment management and extensive nature of services provided by Dodge & Cox has been administrative services provided by Dodge & Cox and the documented in materials provided to the Board and in performance of each of the Funds. presentations made to the Board throughout the year. In particular, the Board considered the nature, quality, and extent of INFORMATION RECEIVED portfolio management, administrative, and shareholder services In advance of the meeting, the Board, including each of the performed by Dodge & Cox. With regard to portfolio management Independent Trustees, requested, received, and reviewed materials services, the Board considered Dodge & Cox’s established long- relating to the Agreements and the services provided by Dodge & term history of care and conscientiousness in the management of Cox. The Independent Trustees retained Morningstar® to prepare the Funds; its demonstrated consistency in investment approach an independent expense and performance summary for each Fund and depth; the background and experience of the Dodge & Cox and comparable funds managed by other advisers identified by Investment Policy Committee, International Investment Policy Morningstar. The Morningstar materials included information Committee, Global Stock Investment Policy Committee, Fixed regarding advisory fee rates, expense ratios, and transfer agency, Income Investment Policy Committee, and Global Bond custodial, and distribution expenses, as well as appropriate Investment Policy Committee, and research analysts responsible performance comparisons to each Fund’s peer group and an index for managing the Funds; its methods for assessing the regulatory or combination of indices. The Morningstar materials also and investment climate in various jurisdictions; Dodge & Cox’s included a comparison of expenses of various share classes offered overall high level of attention to its core investment management by comparable funds. The materials reviewed by the Board function; and its commitment to the Funds and their shareholders. contained information concerning, among other things, Dodge & In the area of administrative and shareholder services, the Board Cox’s profitability, financial results and condition, advisory fee considered the excellent quality of Dodge & Cox’s work in areas revenue, and separate account and sub-adviser fund fee schedules. such as compliance, legal services, trading, proxy voting, The Board additionally considered the Funds’ brokerage technology, oversight of the Funds’ transfer agent and custodian, commissions, turnover rates, sales and redemption data and the tax compliance, and shareholder communication through its significant investment that Dodge & Cox makes in research used website and other means. The Board also noted Dodge & Cox’s in managing the Funds. The Board received and reviewed diligent disclosure policy, its favorable compliance record, and its memoranda and related materials addressing, among other things, reputation as a trusted, shareholder-friendly mutual fund family. In Dodge & Cox’s services to the Funds; how Dodge & Cox Funds’ addition, the Board considered that Dodge & Cox manages fees compare to fees of peer group funds; the different fees, services, approximately $185 billion in Fund assets with fewer professionals costs, and risks associated with other accounts managed by Dodge than most comparable funds, and that on average these & Cox as compared to the Dodge & Cox Funds; and the ways in professionals have more experience and longer tenure than which the Funds realize economies of scale. Throughout the investment professionals at comparable funds. The Board also process of reviewing the services provided by Dodge & Cox and noted that Dodge & Cox is an investment research-oriented firm with no other business endeavors to distract management’s preparing for the meeting, the Independent Trustees found Dodge attention from its research efforts, and that its investment & Cox to be open, forthright, detailed, and very helpful in professionals adhere to a consistent investment approach across answering questions about all issues. The Board received copies of the Funds. The Board further considered the favorable stewardship the Agreements and a memorandum from the independent legal grades given by Morningstar to each of the Funds and the “Gold” counsel to the Independent Trustees discussing the factors analyst rating awarded by Morningstar to all of the Funds except generally regarded as appropriate to consider in evaluating advisory the Global Bond Fund. The Board concluded that it was satisfied arrangements. The Trust’s Contract Review Committee, consisting with the nature, extent, and quality of investment management solely of Independent Trustees, met with the independent legal and other services provided to the Funds by Dodge & Cox.

PAGE 20 ▪ D ODGE &COX I NCOME F UND INVESTMENT PERFORMANCE The Board reviewed information regarding the fee rates Dodge The Board considered short-term and long-term investment & Cox charges to separate accounts and subadvised funds that performance for each Fund (including periods of outperformance have investment programs similar to those of the Funds, including or underperformance) as compared to both relevant indices and instances where separate account and sub-advised fund fees are the performance of such Fund’s peer group. The Board noted that lower than Fund fees. The Board considered differences in the the Funds had weak absolute and relative performance in 2015, but nature and scope of services Dodge & Cox provides to the Funds as remained solid performers over longer periods. The Board compared to other client accounts, differences in regulatory, determined after extensive review and inquiry that Dodge & Cox’s litigation, and other risks as between Dodge & Cox Funds and historic, long-term, team-oriented, bottom-up investment other types of clients. The Board also noted that different markets approach remains consistent and that Dodge & Cox continues to exist for mutual fund and institutional separate account be distinguished by its integrity, transparency, and independence. management services. With respect to non-U.S. funds sponsored The Board considered that the performance of the Funds is the and managed by Dodge & Cox that are comparable to the Funds result of a team-oriented investment management process that in many respects, the Board noted that the fee rates charged by emphasizes a long-term investment horizon, comprehensive Dodge & Cox are the same as or higher than the fee rates charged independent research, price discipline, low cost and low portfolio to the Funds. After consideration of these matters, the Board turnover. The Board also considered that the investment concluded that the overall costs incurred by the Funds for the performance delivered by Dodge & Cox to the Funds appeared to services they receive (including the management fee paid to Dodge be consistent with the relevant performance delivered for other & Cox) are reasonable and that the fees are acceptable based upon clients of Dodge & Cox. The Board concluded that Dodge & Cox the qualifications, experience, reputation, and performance of has delivered favorable long-term performance for Fund investors Dodge & Cox and the low overall expense ratios of the Funds. consistent with the long-term investment strategies being pursued Profitability and Costs of Services to Dodge & Cox; by the Funds. “Fall-out” Benefits. The Board reviewed reports of Dodge & Cox’s financial position, profitability, and estimated overall value, COSTS AND ANCILLARY BENEFITS and considered Dodge & Cox’s overall profitability within its Costs of Services to Funds: Fees and Expenses. The Board context as a private, employee-owned S-Corporation and relative considered each Fund’s management fee rate and expense ratio to the favorable services provided. The Board noted in particular relative to each Fund’s peer group and relative to management fees that Dodge & Cox’s profits are not generated by high fee rates, but charged by Dodge & Cox to other clients. In particular, the Board reflect an extraordinarily streamlined, efficient, and focused considered that the Funds continue to be substantially below their business approach toward investment management. The Board peer group median in expense ratios and that many media and recognized the importance of Dodge & Cox’s profitability—which industry reports specifically comment on the low expense ratios of is derived solely from management fees and does not include other the Funds, which have been a defining characteristic of the Funds business ventures—to maintain its independence, stability, for many years. The Board also evaluated the operating structures company culture and ethics, and management continuity. The of the Funds and Dodge & Cox, noting that the Funds do not Board also considered that the compensation/profit structure at charge front-end sales commissions or distribution fees, and Dodge Dodge & Cox includes a return on shareholder employees’ & Cox bears, among other things, the significant cost of third investment in the firm, which is vital for remaining independent party research, reimbursement for recordkeeping and and facilitating retention of management and investment administrative costs to third-party retirement plan administrators, professionals. The Board considered independent research and administrative and office overhead. indicating that firms that grow organically, rather than through The Board noted that expenses are well below industry acquisition, tend to have better performance. Key to organic averages. When compared to peer group funds, the Funds are in growth is the ability to retain talented and experienced analysts, the quartile with the lowest expense ratios. The Board also portfolio managers and other professionals. considered that the Funds receive numerous administrative, The Board also considered that in January 2015, Dodge & regulatory compliance, legal, technology and shareholder support Cox closed the International Stock Fund to new investors to pro- services from Dodge & Cox without any additional administrative actively manage the growth of the Fund. The Stock Fund and fee and the fact that the Funds have relatively low transaction Balanced Fund were similarly closed to new investors during costs and portfolio turnover rates. The Board noted the Funds’ periods of significant growth in the past. While these actions are unusual single-share-class structure and reviewed Morningstar data intended to benefit existing shareholders, the effect is to reduce showing that the few peer group funds with lower expense ratios potential revenues to Dodge & Cox from new shareholders. The often have other share classes with significantly higher expense Board also considered potential “fall-out” benefits (including the ratios. In this regard, the Board considered that many of the Funds’ receipt of research from unaffiliated brokers and reputational shareholders would not be eligible to purchase comparably-priced benefits to non-U.S. funds sponsored and managed by Dodge & shares of many peer group funds, which typically make their lower- Cox) that Dodge & Cox might receive as a result of its association priced share classes available only to institutional investors. The with the Funds and determined that they are acceptable. The Board determined that the Funds provide access for small investors Board also noted that Dodge & Cox continues to invest substantial to high quality investment management at a relatively low cost.

D ODGE &COX I NCOME F UND ▪ PAGE 21 sums in its business in order to provide enhanced services, systems CONCLUSION and research capabilities, all of which benefit the Funds. The Based on their evaluation of all material factors and assisted by the Board concluded that Dodge & Cox’s profitability is the keystone advice of independent legal counsel to the Independent Trustees, of its independence, stability and long-term investment the Board, including the Independent Trustees, concluded that the performance and that the profitability of Dodge & Cox’s advisory fee structure was fair and reasonable, that each Fund was relationship with the Funds (including fall-out benefits) is fair and paying a competitive fee for the services provided, that the scope reasonable. and quality of Dodge & Cox’s services has provided substantial value for Fund shareholders over the long term, and that approval ECONOMIES OF SCALE of the Agreements was in the best interests of each Fund and its The Board considered whether there have been economies of scale shareholders. with respect to the management of each Fund, whether the Funds have appropriately benefited from any economies of scale, and FUND HOLDINGS whether the management fee rate is reasonable in relation to the The Fund provides a complete list of its holdings four times each Fund assets and any economies of scale that may exist. In the fiscal year, as of the end of each quarter. The Fund files the lists Board’s view, any consideration of economies of scale must take with the Securities and Exchange Commission (SEC) on Form N- account of the Funds’ low fee structure and the considerable CSR (second and fourth quarters) and Form N-Q (first and third efficiencies of the Funds’ organization and fee structure that has quarters). Shareholders may view the Fund’s Forms N-CSR and N- been realized by shareholders from the time of each Fund’s inception Q on the SEC’s website at sec.gov. Forms N-CSR and N-Q may (i.e., from the first dollar). An assessment of economies of scale must also be reviewed and copied at the SEC’s Public Reference Room also take into account that Dodge & Cox invests significant time in Washington, DC. Information regarding the operations of the and resources in each new Fund for months (and sometimes years) Public Reference Room may be obtained by calling 202-551-8090 prior to launch; in addition, expenses are capped, which means that (direct) or 800-732-0330 (general SEC number). A list of the Dodge & Cox earns no revenue and subsidizes the operations of a Fund’s quarter-end holdings is also available at dodgeandcox.com new Fund for a period of time until it reaches scale. on or about 15 days following each quarter end and remains In addition, the Board noted that Dodge & Cox has shared available on the web site until the list is updated in the subsequent economies of scale by adding or enhancing services to the Funds quarter. over time, and that the internal costs of providing investment management, up-to-date technology, administrative, legal, and PROXY VOTING compliance services to the Funds continue to increase. For For a free copy of the Fund’s proxy voting policies and procedures, example, Dodge & Cox has increased its global research staff and please call 800-621-3979, visit the Fund’s website at investment resources over the years to address the increased dodgeandcox.com, or visit the SEC’s website at sec.gov. complexity of investing in multinational and non-U.S. companies. Information regarding how the Fund voted proxies relating to In addition, Dodge & Cox has made substantial expenditures in portfolio securities during the most recent 12-month period ending other staff, technology, cybersecurity, and infrastructure to enable June 30 is also available at dodgeandcox.com or at sec.gov. it to integrate credit and equity analyses and to be able to HOUSEHOLD MAILINGS implement its strategy in a more effective and secure manner. Over The Fund routinely mails shareholder reports and summary the last ten years, Dodge & Cox has increased its spending on prospectuses to shareholders and, on occasion, proxy statements. third party research, data services, trading systems, technology, and In order to reduce the volume of mail, when possible, only one recordkeeping service expenses at a rate that has significantly copy of these documents will be sent to shareholders who are part outpaced the Funds’ growth rate during the same period. of the same family and share the same residential address. The Board considered that Dodge & Cox has a history of If you have a direct account with the Funds and you do not voluntarily limiting asset growth in several Funds that experienced want the mailing of shareholder reports and summary prospectuses significant inflows by closing them to new investors in order to combined with other members in your household, contact the protect the Funds’ ability to achieve good investment returns for Funds at 800-621-3979. Your request will be implemented within shareholders. The Board also observed that, even without fee 30 days. breakpoints, the Funds are competitively priced in a very competitive market and that having a low fee from inception is better for shareholders than starting with a higher fee and adding breakpoints. The Board concluded that the current Dodge & Cox fee structure is fair and reasonable and adequately shares economies of scale that may exist.

PAGE 22 ▪ D ODGE &COX I NCOME F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge &Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

D ODGE &COX I NCOME F UND ▪ PAGE 23 Income Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San Francisco, California 94104 (415) 981-1710

Annual Report December 31, 2015

International Stock Fund ESTABLISHED 2001

TICKER: DODFX

(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 changing macroeconomic conditions and valuations. Our equity –11.4% for the year ending December 31, 2015, compared to a and fixed income teams regularly work together to evaluate risk return of –0.8% for the MSCI EAFE (Europe, Australasia, Far and reward as we look at investment opportunities around the East) Index. world and across the capital structure; this collaboration intensified during 2015. As part of our bottom-up research process, MARKET COMMENTARY a broad cross section of our team thoroughly investigated In 2015, the U.S. dollar’s sharp appreciation against both individual company concerns, vetted investment assumptions, and developed and emerging market currencies was a meaningful conducted further due diligence. For example, groups of portfolio headwind: the MSCI EAFE was up 5% in local currency and down managers and analysts travelled together across the globe to meet 1% in U.S. dollars, while the MSCI Emerging Markets Index was with company managements, government officials, suppliers, down 6% in local currency and down 15% in U.S. dollars. competitors, and consultants. In addition, we conducted Global growth expectations declined and emerging markets macroeconomic reviews to evaluate the key factors affecting a faced significant macroeconomic challenges during the year. Fears company’s access to and cost of capital, end-market demand, and of slowing growth in China were amplified by the government’s relative competitiveness. Through this comprehensive process, we decision to devalue the renminbi. Since China is the world’s reaffirmed our view that the Fund’s holdings have attractive largest consumer of most raw materials, its weaker outlook valuations, strong competitive positions, and favorable growth negatively impacted commodity prices (e.g., global copper prices prospects over our three- to five-year investment horizon. plummeted 24% and oil prices plunged 35%) and commodity- In 2015, companies with higher valuations became more driven economies around the globe. For example, in South Africa, expensive relative to companies with lower valuations. As a result where mining accounts for approximately 50% of its foreign of changing valuations, we initiated 8 new holdings (including exchange earnings,(a) the rand depreciated 25% against the U.S. AstraZeneca, Cemex, Hyundai Motor, and JD.com(c)) and sold 11 dollar. In addition, prospects for higher U.S. interest rates holdings (including Imperial Tobacco Group and Standard Bank negatively affected those economies in need of external financing. of South Africa) during the year. We also added to a number of Facing both fiscal and current account deficits, Brazil’s fiscal and our existing holdings domiciled in and exposed to the developing political struggles intensified, and the Brazilian real depreciated world as their valuations became increasingly attractive. At year 33% against the U.S. dollar during 2015. end, 24.0% of the Fund was invested in companies domiciled in In developed markets, a dampened economic recovery and a emerging markets, while 42.6% of the Fund was invested in weaker inflation outlook in the Eurozone led the European Central companies that derive more than 40% of their revenues from the Bank to extend its asset purchase program aimed at reviving the developing world, regardless of domicile.(d) Itau Unibanco (in economy. The Bank of Japan, in turn, introduced measures to Brazil), Schneider Electric (in France), and Standard Chartered supplement its already large Quantitative and Qualitative Easing (in the United Kingdom)—examples of such adds in the Fund— Program, as economic activity softened and inflation hovered are discussed below. around zero. In contrast, economic activity in the United States expanded at a moderate pace: household spending and business Itau Unibanco investment increased, the housing market strengthened, and labor Itau Unibanco, Brazil’s leading bank, has strong market positions market conditions continued to improve, with solid job gains and in consumer credit and payments and is exposed to under- reduced unemployment. penetrated areas of the financial market that are poised to grow over the next three to five years. Brazil’s struggling economy and INVESTMENT STRATEGY sharp currency depreciation weighed substantially on Itau The Fund’s results in 2015 were disappointing and stemmed from Unibanco’s stock during 2015 (down 41%(e) in U.S. dollars). We three main factors. First, value stocks (the lower valuation portion conducted both on-the-ground and other due diligence with of the market) underperformed growth stocks (the higher company management and government officials to evaluate valuation portion of the market) by one of the widest spreads since economic and company-specific concerns. What we found the global financial crisis. The Fund, which is value-oriented, was reaffirmed our view that Itau’s management has proactively significantly affected by this performance divergence. Second, managed credit risk by reducing exposures and raising provisions. emerging markets collectively underperformed developed markets. Management is focused on enhancing shareholder value and has a The Fund’s investments in individual companies domiciled in a solid track record of capital allocation. Beyond this cycle, number of especially weak emerging market countries (including management is investing for the future and strengthening Itau’s Brazil, South Africa, and Turkey) negatively impacted results. competitive advantage. For example, Itau continues to invest in Third, some individual holdings—HP Inc.(b), MTN Group, online access to better serve the needs of affluent customers and Petrobras, and Standard Chartered—meaningfully detracted from more efficiently handle payments and transactions for its retail results for the year. customer base. At 1.6 times tangible book value, Itau trades at a During 2015, we extensively revisited and retested our 10-year low valuation. While political and macroeconomic thinking on many of the Fund’s holdings in the context of instability has plagued Brazil, we believe Itau is an attractive long-

PAGE 2 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND term investment opportunity and added to the holding. On franchise, strong balance sheet, management’s initiatives, and low December 31, Itau was a 1.7% position in the Fund. valuation, we recently added to the holding. On December 31, Standard Chartered was a 2.4% position in the Fund. Schneider Electric Schneider Electric, a 2.2% position in the Fund, is a global leader IN CLOSING in electrical products, systems, and services such as low- and International equity valuations are attractive: the MSCI EAFE medium-voltage gear, factory automation equipment and systems, traded at 14.7 times forward estimated earnings (compared to a 20- and uninterruptible power supply solutions for data centers. While year average of 15.9 times) with a 3.2% dividend yield at year end. incorporated in France, Schneider derives only 27% of its revenues Valuation disparities have widened significantly, creating more from Western Europe and more than 40% of its sales come from opportunities for value-oriented investors. We are identifying emerging markets. Thus, Schneider is a prime example that a attractively valued investments in both developed and emerging company’s domicile does not always reflect its true revenue markets and continue to be optimistic about the long-term outlook exposure. Schneider’s stock performed poorly in 2015 (down 21% for the portfolio. in U.S. dollars) due to lower than expected construction and Our experienced and stable team has weathered past periods industrial activity, driven in large part by a slowdown in China, of market turbulence by remaining steadfast in our investment Russia, and Brazil. process and philosophy. Our approach—constructing a diversified Despite these end-market headwinds, Schneider has high- portfolio through in-depth, independent research, a three- to five- quality business franchises with number one or two market year investment horizon, and a focus on valuation relative to positions in over 75% of its revenues and attractive returns on underlying fundamentals—continues to guide us through this tangible capital. We believe the company can grow given its period. We remain confident that our enduring value-oriented exposure to megatrends such as global electrification, energy approach will benefit the Fund in the years ahead. efficiency, and factory automation. We have had numerous Thank you for your continued confidence in our firm. As conversations with management and confirmed they are always, we welcome your comments and questions. proactively managing the company’s cost structure, portfolio of businesses, and capital. Management recently initiated a EUR 1.0- For the Board of Trustees, 1.5 billion share buyback program. Schneider has a strong balance sheet and trades at 13 times estimated forward earnings, a discount to its peers and the market.

Standard Chartered Charles F. Pohl, Dana M. Emery, Standard Chartered, domiciled in the United Kingdom, provides Chairman President consumer and wholesale banking services to customers in Asia, Africa, and the Middle East. The company has a strong global January 29, 2016 franchise with a broad network across the developing world that (a) Foreign exchange earnings are the proceeds from exporting goods and would be very difficult to replicate. Standard Chartered’s global services and exchanging currencies in global markets. payments and trade business is a particular strength: local roots (b) After Hewlett-Packard Co. split into two companies, HP Inc. retained the HPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett- from its longstanding presence allow for local currency funding, Packard Co.’s performance through October 2015. and cooperation across the network provides integrated wholesale (c) The use of specific examples does not imply that they are more attractive banking services to clients. During 2015, Standard Chartered’s investments than the Fund’s other holdings. (d) performance suffered from the slowdown in emerging markets, Unless otherwise specified, all weightings and characteristics are as of December 31, 2015. large fines from legacy issues, rising restructuring costs, and (e) All returns are total returns unless otherwise noted. deteriorating asset quality. As a result, Standard Chartered’s stock was down 39% in U.S. dollars and its valuation fell to 0.6 times tangible book value, a historically low level. In 2015, we met with Standard Chartered’s new executive team on multiple occasions to better understand its strategy and priorities. This management team is focused on streamlining the organization and prioritizing profitability over growth. They have a realistic assessment of current balance sheet issues, as evidenced by the recent $5.1 billion capital raise that provides ample new capital to fortify the balance sheet, resolve legacy issues, and accelerate their restructuring plans. The company seeks to cut costs, exit peripheral businesses, and increase investments to improve systems and further diversify its geographic footprint. In addition, Standard Chartered has been able to attract high-caliber talent with some key new hires. Based on the bank’s leading

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 3 ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the MSCI EAFE by 10.5 percentage Independent Organization points in 2015. Dodge & Cox is one of the largest privately owned investment managers in the world. We remain committed to independence, Key Detractors from Relative Results with a goal of providing the highest quality investment ▪ Weak returns from the Fund’s holdings in the Financials management service to our existing clients. sector (down 19% compared to down 3% for the MSCI Over 85 Years of Investment Experience EAFE sector), especially in the developing world, hurt Dodge & Cox was founded in 1930. We have a stable and well- results. Itau Unibanco (down 41%), Kasikornbank (down qualified team of investment professionals, most of whom have 39%), Standard Chartered (down 39%), and ICICI Bank spent their entire careers at Dodge & Cox. (down 28%) performed poorly. Experienced Investment Team ▪ The Fund’s holdings in the Telecommunication Services The International Investment Policy Committee, which is the sector (down 24% compared to up 3% for the MSCI EAFE decision-making body for the International Stock Fund, is a nine- sector) were notable detractors. MTN Group (down 53%) member committee with an average tenure at Dodge & Cox of and America Movil (down 31%), both emerging market 22 years. companies, were particularly weak. One Business with a Single Research Office ▪ The Fund’s holdings in the Industrials sector (down 13% Dodge & Cox manages equity (domestic, international, and compared to flat for the MSCI EAFE sector) negatively global), fixed income (domestic and global), and balanced impacted performance. Tyco International (down 26%) and investments, operating from one office in San Francisco. Schneider Electric (down 21%) lagged. Consistent Investment Approach ▪ Additional detractors included Teck Resources (down 71% Our team decision-making process involves thorough, bottom- since date of purchase), Petrobras (down 55%), HP Inc. up fundamental analysis of each investment. (down 37%), and Schlumberger (down 16%). Long-Term Focus and Low Expenses We invest with a three- to five-year investment horizon, which Key Contributors to Relative Results has historically resulted in low turnover relative to our peers. ▪ The Fund’s average underweight position in the Metals & We manage Funds that maintain low expense ratios. Mining industry (0.4% versus 3% for the MSCI EAFE industry), a weaker area of the market (down 40%), helped Risks: The Fund is subject to market risk, meaning holdings in performance. the Fund may decline in value for extended periods due to the ▪ Strong returns from the Fund’s holdings in the Automobiles financial prospects of individual companies, or due to general industry (up 12% compared to up 2% for the MSCI EAFE market and economic conditions. Investing in non-U.S. industry) aided results. Nissan Motor (up 24%), Yamaha securities may entail risk due to foreign economic and political Motor (up 14%), and Honda Motor (up 13%) performed developments; this risk may be increased when investing in emerging markets. The Fund is also subject to currency risk. well. Please read the prospectus and summary prospectus for specific ▪ Additional contributors included Infineon Technologies (up details regarding the Fund’s risk profile. 40%), Nintendo (up 34%), Imperial Tobacco Group (up 24% to date of sale), and Naspers (up 5%).

PAGE 4 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND GROWTH OF $10,000 OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2005

$30,000 Returns represent past performance and do not guarantee future Dodge & Cox International Stock Fund $14,553 results. Investment return and share price will fluctuate with 20,000 MSCI EAFE Index $13,484 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is updated and published monthly. Visit the Fund’s website at dodgeandcox.com

10,000 or call 800-621-3979 for current performance figures. The Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any income taxes payable by shareholders on these distributions or on Fund share 5,000 redemptions. Index returns include dividends but, unlike Fund 12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/15 returns, do not reflect fees or expenses. The MSCI EAFE (Europe, Australasia, Far East) Index is a broad-based, unmanaged equity AVERAGE ANNUAL TOTAL RETURN market index aggregated from 21 developed market country indices, excluding the United States and Canada. MSCI makes no express or FOR PERIODS ENDED DECEMBER 31, 2015 implied warranties or representations and shall have no liability 1 Year 3 Years 5 Years 10 Years whatsoever with respect to any MSCI data contained herein. The Dodge & Cox International MSCI data may not be further redistributed or used as a basis for Stock Fund –11.35% 3.87% 2.65% 3.83% other indices or any securities or financial products. This report is not MSCI EAFE Index –0.82 5.02 3.61 3.03 approved, reviewed, or produced by MSCI. MSCI EAFE is a service mark of MSCI Barra.

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 853.20 $2.96 Based on Hypothetical 5% Yearly Return 1,000.00 1,022.01 3.23 * Expenses are equal to the Fund’s annualized expense ratio of 0.63%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 5 FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $36.48 Equity Total Net Assets (billions) $57.0 Securities: 99.3% Expense Ratio 0.64% Portfolio Turnover Rate 18% 30-Day SEC Yield(a) 1.80% Number of Companies 79 Fund Inception 2001 No sales charges or distribution fees Investment Manager: Dodge & Cox, San Francisco. Managed by Net Cash the International Investment Policy Committee, whose nine & Other:(d) 0.7% members’ average tenure at Dodge & Cox is 22 years.

MSCI MSCI PORTFOLIO CHARACTERISTICS Fund EAFE REGION DIVERSIFICATION (%)(e) Fund EAFE Median Market Capitalization (billions) $25 $9 Europe (excluding United Kingdom) 42.3 45.1 Weighted Average Market Capitalization Japan 13.4 23.4 (billions) $61 $54 Pacific (excluding Japan) 13.0 11.3 Price-to-Earnings Ratio(b) 12.5x 14.7x United Kingdom 12.1 19.4 Countries Represented 23 21 United States 6.7 0.0 Emerging Markets (Brazil, China, India, Africa/Middle East 5.7 0.8 Mexico, South Africa, South Korea, Latin America 5.5 0.0 Thailand, Turkey, United Arab Emirates) 24.0% 0.0% Canada 0.6 0.0

MSCI TEN LARGEST HOLDINGS (%)(c) Fund SECTOR DIVERSIFICATION (%) Fund EAFE Naspers, Ltd. (South Africa) 4.2 Financials 26.1 25.6 Samsung Electronics Co., Ltd. (South Korea) 3.8 Consumer Discretionary 18.8 13.2 Sanofi (France) 3.7 Information Technology 16.1 5.2 Schlumberger, Ltd. (United States) 3.4 Health Care 12.8 11.9 Novartis AG (Switzerland) 3.4 Industrials 8.6 12.6 Roche Holding AG (Switzerland) 3.3 Energy 7.3 4.5 Credit Suisse Group AG (Switzerland) 2.7 Materials 5.2 6.4 Barclays PLC (United Kingdom) 2.5 Telecommunication Services 4.0 4.9 Standard Chartered PLC (United Kingdom) 2.3 Consumer Staples 0.4 11.9 Liberty Global PLC (United Kingdom) 2.3 Utilities 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.

PAGE 6 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND CONSOLIDATED PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS: 95.5%

SHARES VALUE SHARES VALUE CONSUMER DISCRETIONARY: 18.8% DIVERSIFIED FINANCIALS: 4.2% AUTOMOBILES & COMPONENTS: 8.7% Credit Suisse Group AG (Switzerland) 70,622,958 $ 1,526,397,979 Bayerische Motoren Werke AG (Germany) 10,189,100 $ 1,073,100,643 Haci Omer Sabanci Holding AS (Turkey) 82,095,354 233,078,292 Honda Motor Co., Ltd. (Japan) 33,966,400 1,088,335,707 UBS Group AG (Switzerland) 31,278,800 601,926,154 Honda Motor Co., Ltd. ADR (Japan) 5,749,300 183,575,149 2,361,402,425 Hyundai Motor Co. (South Korea) 2,856,012 359,872,991 INSURANCE: 3.4% Mahindra & Mahindra, Ltd. (India) 16,522,808 315,939,191 AEGON NV(b) (Netherlands) 130,337,763 740,800,935 (b) NGK Spark Plug Co., Ltd. (Japan) 10,341,300 272,417,191 Aviva PLC (United Kingdom) 80,919,501 615,544,297 Nissan Motor Co., Ltd. (Japan) 93,132,200 975,360,095 Swiss Re AG (Switzerland) 6,028,968 586,486,877 Yamaha Motor Co., Ltd.(b) (Japan) 31,550,100 706,999,061 1,942,832,109 4,975,600,028 REAL ESTATE: 1.4% CONSUMER DURABLES & APPAREL: 1.4% BR Malls Participacoes SA(b) (Brazil) 54,870,300 153,032,279 Panasonic Corp. (Japan) 76,711,434 778,536,596 Hang Lung Group, Ltd.(b) (Hong Kong) 110,524,300 358,666,866 CONSUMER SERVICES: 0.3% Hang Lung Properties, Ltd. (Hong Kong) 126,187,300 287,216,724 New Oriental Education & Technology 798,915,869 Group, Inc. ADR(b) (Cayman Islands/China) 6,369,328 199,805,819 13,883,866,893 MEDIA: 8.1% HEALTH CARE: 12.8% Grupo Televisa SAB ADR (Mexico) 25,685,392 698,899,516 PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 12.8% Liberty Global PLC LiLAC, Series A(a) AstraZeneca PLC (United Kingdom) 4,793,300 326,214,954 (United Kingdom) 580,950 24,033,902 Bayer AG (Germany) 8,199,050 1,028,663,421 Liberty Global PLC LiLAC, Series C(a) Novartis AG (Switzerland) 8,095,570 691,981,754 (United Kingdom) 874,412 37,599,716 Novartis AG ADR (Switzerland) 14,346,800 1,234,398,672 Liberty Global PLC, Series A(a) Roche Holding AG (Switzerland) 6,942,700 1,913,325,710 (United Kingdom) 11,619,005 492,181,052 Sanofi (France) 24,946,522 2,130,895,350 Liberty Global PLC, Series C(a) 7,325,479,861 (United Kingdom) 19,696,847 803,040,452 INDUSTRIALS: 8.6% Naspers, Ltd. (South Africa) 17,493,100 2,398,019,528 CAPITAL GOODS: 6.9% Television Broadcasts, Ltd.(b) (Hong Kong) 40,022,900 164,996,568 Koninklijke Philips NV (Netherlands) 31,282,995 800,964,341 4,618,770,734 Mitsubishi Electric Corp. (Japan) 100,043,000 1,048,902,987 RETAILING: 0.3% Nidec Corp. (Japan) 5,430,700 393,086,983 JD.com, Inc. ADR(a) (Cayman Islands/China) 5,083,036 164,004,157 Schneider Electric SA (France) 21,750,646 1,242,387,539 Smiths Group PLC(b) (United Kingdom) 33,926,200 469,881,576 10,736,717,334 CONSUMER STAPLES: 0.4% 3,955,223,426 FOOD, BEVERAGE & TOBACCO: 0.4% COMMERCIAL & PROFESSIONAL SERVICES: 1.4% Anadolu Efes Biracilik ve Malt Sanayii AS(b) ADT Corp. (United States) 6,296,960 207,673,741 (Turkey) 32,425,176 210,023,170 Tyco International PLC (Ireland) 18,390,420 586,470,494 794,144,235 ENERGY: 6.2% TRANSPORTATION: 0.3% Royal Dutch Shell PLC ADR DP World, Ltd. (United Arab Emirates) 8,256,304 167,602,971 (United Kingdom) 10,005,355 458,145,205 Saipem SPA(a)(b) (Italy) 46,865,200 376,728,063 4,916,970,632 Schlumberger, Ltd. (Curacao/United States) 27,754,124 1,935,850,149 INFORMATION TECHNOLOGY: 15.1% Total SA (France) 10,745,842 481,894,390 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 1.4% Weatherford International PLC(a) (Ireland) 31,817,592 266,949,597 Infineon Technologies AG(b) (Germany) 55,762,370 816,016,345 3,519,567,404 SOFTWARE & SERVICES: 2.7% FINANCIALS: 24.4% Baidu, Inc. ADR(a) (Cayman Islands/China) 4,903,965 927,045,544 BANKS: 15.4% Nintendo Co., Ltd. (Japan) 4,287,100 590,170,122 Banco Santander SA (Spain) 68,776,836 340,679,565 1,517,215,666 Barclays PLC (United Kingdom) 446,247,998 1,440,052,935 TECHNOLOGY, HARDWARE & EQUIPMENT: 11.0% BNP Paribas SA (France) 17,886,158 1,015,235,180 Brother Industries, Ltd.(b) (Japan) 12,212,000 140,035,217 ICICI Bank, Ltd. (India) 260,427,185 1,027,438,757 Hewlett Packard Enterprise Co. (b) Kasikornbank PCL- Foreign (Thailand) 139,883,027 578,306,373 (United States) 65,989,204 1,003,035,901 Lloyds Banking Group PLC HP, Inc. (United States) 57,407,104 679,700,111 (United Kingdom) 834,782,400 899,225,897 Kyocera Corp.(b) (Japan) 19,122,400 886,308,045 Mitsubishi UFJ Financial Group, Inc. (Japan) 91,382,100 565,554,211 Samsung Electronics Co., Ltd. Siam Commercial Bank PCL- Foreign (South Korea) 1,521,592 1,624,804,017 (Thailand) 78,078,500 257,666,820 TE Connectivity, Ltd. (Switzerland) 13,646,362 881,691,449 Societe Generale SA (France) 9,252,542 428,049,787 Telefonaktiebolaget LM Ericsson (Sweden) 110,232,700 1,067,791,477 Standard Chartered PLC (United Kingdom) 161,949,813 1,345,813,561 UniCredit SPA (Italy) 118,398,593 652,135,217 6,283,366,217 Yapi ve Kredi Bankasi AS(b) (Turkey) 204,376,868 230,558,187 8,616,598,228 8,780,716,490

See accompanying Notes to Consolidated Financial Statements D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 7 CONSOLIDATED PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS (continued) SHORT-TERM INVESTMENTS: 0.2%

SHARES VALUE PAR VALUE VALUE MATERIALS: 5.2% MONEY MARKET FUND: 0.1% Agrium, Inc. (Canada) 2,079,983 $ 185,825,681 SSgA U.S. Treasury Money Market Fund $ 57,731,545 $ 57,731,545 Akzo Nobel NV (Netherlands) 7,688,944 515,395,513 Cemex SAB de CV ADR (Mexico) 43,079,635 239,953,567 REPURCHASE AGREEMENT: 0.1% (c) LafargeHolcim, Ltd. (Switzerland) 18,933,349 948,705,791 Fixed Income Clearing Corporation 0.08%, dated 12/31/15, due 1/4/16, Lanxess AG(b) (Germany) 4,228,334 194,678,351 Linde AG (Germany) 4,987,605 723,967,418 maturity value $72,314,643 72,314,000 72,314,000 Teck Resources, Ltd., Class B (Canada) 46,287,792 178,670,877 TOTAL SHORT-TERM INVESTMENTS $ 130,045,545 2,987,197,198 (Cost $130,045,545) TELECOMMUNICATION SERVICES: 4.0% TOTAL INVESTMENTS America Movil SAB de CV, Series L (Cost $62,304,538,149) 99.5% $56,736,426,128 (Mexico) 618,430,000 434,187,415 OTHER ASSETS LESS LIABILITIES 0.5% 292,177,735 Bharti Airtel, Ltd. (India) 57,768,204 295,144,494 NET ASSETS 100.0% $57,028,603,863 China Mobile, Ltd. (Hong Kong/China) 27,348,200 308,768,008 Millicom International Cellular SA SDR(b) (Luxembourg) 10,088,392 574,611,534 (a) Non-income producing MTN Group, Ltd. (South Africa) 77,635,000 667,113,815 (b) See Note 9 regarding holdings of 5% voting securities (c) Repurchase agreement is collateralized by U.S. Treasury Note 1.75%, 2,279,825,266 12/31/20. Total collateral value is $73,762,681. TOTAL COMMON STOCKS (Cost $58,346,485,140) $54,476,245,986 In determining a company’s country designation, the Fund generally references the country of incorporation. In cases where the Fund considers PREFERRED STOCKS: 3.8% the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes or in other limited circumstances, the Fund uses ENERGY: 1.1% the country designation of an appropriate broad-based market index. In Petroleo Brasileiro SA ADR(a) (Brazil) 178,018,900 605,264,260 those cases, two countries are listed—the country of incorporation and the FINANCIALS: 1.7% country designated by an appropriate index, respectively. BANKS: 1.7% Itau Unibanco Holding SA (Brazil) 150,343,065 982,425,551 ADR: American Depositary Receipt SDR: Swedish Depository Receipt INFORMATION TECHNOLOGY: 1.0% TECHNOLOGY, HARDWARE & EQUIPMENT: 1.0% Samsung Electronics Co., Ltd. FORWARD CURRENCY CONTRACTS (South Korea) 586,116 542,444,786 Contract Amount Deliver Unrealized TOTAL PREFERRED STOCKS Settlement Receive Foreign Appreciation / (Cost $3,828,007,464) $ 2,130,134,597 Counterparty Date U.S. Dollar Currency (Depreciation) Contracts to sell CHF: Goldman Sachs 1/27/16 413,060,988 400,000,000 $ 13,327,311 Goldman Sachs 2/3/16 528,955,212 520,000,000 9,145,375 UBS 2/3/16 471,272,639 465,000,000 6,442,689 Citibank 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 3/9/16 653,646,000 600,000,000 556,905 HSBC 3/9/16 326,307,000 300,000,000 (237,547) $ (4,527,436)

PAGE 8 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND See accompanying Notes to Consolidated Financial Statements CONSOLIDATED CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended December 31, 2015 December 31, 2015 December 31, 2014 ASSETS: OPERATIONS: Investments, at value Net investment income $ 1,230,290,110 $ 1,451,548,384 Unaffiliated issuers (cost $56,299,697,750) $ 52,256,872,593 Net realized gain 1,569,060,418 2,019,551,822 Affiliated issuers (cost $6,004,840,399) 4,479,553,535 Net change in unrealized 56,736,426,128 appreciation/depreciation (10,451,943,877) (3,874,051,496) Unrealized appreciation on forward currency contracts 29,472,280 (7,652,593,349) (402,951,290) Cash denominated in foreign currency (cost $6,826,649) 6,790,936 Cash 100 Receivable for investments sold 218,815,943 DISTRIBUTIONS TO SHAREHOLDERS FROM: Receivable for Fund shares sold 94,685,572 Net investment income (1,304,169,120) (1,440,251,048) Dividends and interest receivable 148,753,606 Net realized gain — — Prepaid expenses and other assets 352,521 Total distributions (1,304,169,120) (1,440,251,048) 57,235,297,086 LIABILITIES: Unrealized depreciation on forward currency contracts 33,999,716 FUND SHARE Payable for Fund shares redeemed 140,460,556 TRANSACTIONS: Management fees payable 29,782,461 Proceeds from sale of shares 12,406,796,087 19,083,592,819 Accrued expenses 2,450,490 Reinvestment of distributions 1,091,460,147 1,176,502,813 Cost of shares redeemed (11,552,646,146) (7,993,354,008) 206,693,223 Net increase from NET ASSETS $ 57,028,603,863 Fund share transactions 1,945,610,088 12,266,741,624 NET ASSETS CONSIST OF: Total increase/(decrease) in net assets (7,011,152,381) 10,423,539,286 Paid in capital $ 64,423,134,152 Distributions in excess of net investment income (5,017,088) Accumulated net realized loss (1,813,517,131) NET ASSETS: Net unrealized depreciation (5,575,996,070) Beginning of year 64,039,756,244 53,616,216,958 $ 57,028,603,863 End of year (including distributions in excess of net investment income of Fund shares outstanding (par value $0.01 each, $(5,017,088) and undistributed net unlimited shares authorized) 1,563,237,054 investment income of $9,485,734, Net asset value per share $ 36.48 respectively) $ 57,028,603,863 $64,039,756,244

CONSOLIDATED SHARE INFORMATION: STATEMENT OF OPERATIONS Shares sold 295,300,198 427,948,359 Year Ended Distributions reinvested 30,234,353 27,741,165 December 31, 2015 Shares redeemed (283,036,306) (180,756,140) INVESTMENT INCOME: Net increase in shares outstanding 42,498,245 274,933,384 Dividends (net of foreign taxes of $94,101,785) Unaffiliated issuers $ 1,426,934,440 Affiliated issuers 226,416,324 Interest 268,570 1,653,619,334 EXPENSES: Management fees 397,371,361 Custody and fund accounting fees 9,026,504 Transfer agent fees 9,712,021 Professional services 353,288 Shareholder reports 1,892,718 Registration fees 473,472 Trustees’ fees 237,500 Miscellaneous 4,262,360 423,329,224 NET INVESTMENT INCOME 1,230,290,110

REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) Investments in unaffiliated issuers 765,542,221 Investments in affiliated issuers 339,270,796 Forward currency contracts 478,324,730 Foreign currency transactions (14,077,329) Net change in unrealized appreciation/depreciation Investments (10,361,707,776) Forward currency contracts (87,123,422) Foreign currency translation (3,112,679) Net realized and unrealized loss (8,882,883,459) NET DECREASE IN NET ASSETS FROM OPERATIONS $ (7,652,593,349)

See accompanying Notes to Consolidated Financial Statements D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 9 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT representatives from Treasury, Legal, Compliance, and Operations. ACCOUNTING POLICIES The Pricing Committee is responsible for implementing the Dodge & Cox International Stock Fund (the “Fund”) is one of the Valuation Policies, including determining the fair value of series constituting the Dodge & Cox Funds (the “Trust” or the securities when market quotations or market-based valuations are “Funds”). The Trust is organized as a Delaware statutory trust and is not readily available or are deemed unreliable. The Pricing registered under the Investment Company Act of 1940, as Committee considers relevant indications of value that are amended, as an open-end management investment company. On reasonably available to it in determining the fair value assigned to January 16th, 2015, the Fund closed to new investors. The Fund a particular security, such as the value of similar financial commenced operations on May 1, 2001, and seeks long-term instruments, trading volumes, contractual restrictions on growth of principal and income. The Fund invests primarily in a disposition, related corporate actions, and changes in economic diversified portfolio of foreign equity securities. Foreign investing, conditions. In doing so, the Pricing Committee employs various especially in developing countries, has special risks such as currency methods for calibrating fair valuation approaches, including a and market volatility and political and social instability. These and regular review of key inputs and assumptions, back-testing, and other risk considerations are discussed in the Fund’s Prospectus. review of any related market activity. The financial statements have been prepared in conformity As trading in securities on most foreign exchanges is normally with accounting principles generally accepted in the United States completed before the close of the NYSE, the value of non-U.S. of America, which require the use of estimates and assumptions by securities can change by the time the Fund calculates its NAV. To management. Actual results may differ from those estimates. address these changes, the Fund may utilize adjustment factors Significant accounting policies are as follows: provided by an independent pricing service to systematically value Security valuation The Fund’s net assets are valued as of the non-U.S. securities at fair value. These adjustment factors are close of trading on the New York Stock Exchange (NYSE), based on statistical analyses of subsequent movements and changes generally 4:00 p.m. Eastern Time, each day that the NYSE is open in U.S. markets and financial instruments trading in U.S. markets for business. If the NYSE is closed due to inclement weather, that represent foreign securities or baskets of securities. technology problems, or for any other reason on a day it would Valuing securities through a fair value determination involves normally be open for business, or the NYSE has an unscheduled greater reliance on judgment than valuation of securities based on early closing on a day it has opened for business, the Fund reserves readily available market quotations. In some instances, lack of the right to calculate the Fund’s NAV as of the normally information and uncertainty as to the significance of information scheduled close of regular trading on the NYSE for that day, may lead to a conclusion that a prior valuation is the best provided that Dodge & Cox believes that it can obtain reliable indication of a security’s value. When fair value pricing is market quotes or valuations. employed, the prices of securities used by the Fund to calculate its Portfolio securities and other financial instruments for which NAV may differ from quoted or published prices for the same market quotes are readily available are valued at market value. securities. Listed securities are generally valued using the official quoted close Security transactions, investment income, expenses, price or the last sale on the exchange that is determined to be the and distributions Security transactions are recorded on the trade primary market for the security. Security values are not discounted date. Realized gains and losses on securities sold are determined on based on the size of the Fund’s position. Short-term securities less the basis of identified cost. than 60 days to maturity may be valued at amortized cost if Dividend income and corporate action transactions are amortized cost approximates current value. Mutual funds are recorded on the ex-dividend date, or when the Fund first learns of valued at their respective net asset values. the dividend/corporate action if the ex-dividend date has passed. Investments initially valued in currencies other than the U.S. Non-cash dividends included in dividend income, if any, are dollar are converted to the U.S. dollar using prevailing exchange recorded at the fair market value of the securities received. rates. As a result, the Fund’s net assets may be affected by changes Dividends characterized as return of capital for U.S. tax purposes in the value of currencies in relation to the U.S. dollar. are recorded as a reduction of cost of investments and/or realized If market quotations are not readily available or if a security’s gain. Interest income is recorded on the accrual basis. value is believed to have materially changed after the close of the Expenses are recorded on the accrual basis. Some expenses of security’s primary market but before the close of trading on the the Trust can be directly attributed to a specific series. Expenses NYSE, the security is valued at fair value as determined in good which cannot be directly attributed are allocated among the Funds faith by or under the direction of the Fund’s Board of Trustees. in the Trust based on relative net assets or other expense The Board of Trustees has appointed Dodge & Cox, the Fund’s methodologies determined by the nature of the expense. investment manager, to make fair value determinations in Distributions to shareholders are recorded on the ex-dividend accordance with the Dodge & Cox Funds Valuation Policies date. (“Valuation Policies”), subject to Board oversight. Dodge & Cox Foreign taxes The Fund is subject to foreign taxes which has established a Pricing Committee that is comprised of may be imposed by certain countries in which the Fund invests.

PAGE 10 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Fund endeavors to record foreign taxes based on applicable contracts had U.S. dollar total values ranging from 3% to 5% of foreign tax law. Withholding taxes are incurred on certain foreign net assets and 0% to 3% of net assets, respectively. dividends and are accrued at the time the associated dividend is Foreign currency translation The books and records of the recorded. The Fund files withholding tax reclaims in certain Fund are maintained in U.S. dollars. Foreign currency amounts are jurisdictions to recover a portion of amounts previously withheld. translated into U.S. dollars at the prevailing exchange rates of The Fund records a reclaim receivable based on, among other such currencies against the U.S. dollar. The market value of things, a jurisdiction’s legal obligation to pay reclaims as well as investment securities and other assets and liabilities are translated payment history and market convention. In consideration of at the exchange rate as of the valuation date. Purchases and sales recent decisions rendered by European courts, the Fund has filed of investment securities, income, and expenses are translated at for additional reclaims related to prior years. A corresponding the exchange rate prevailing on the transaction date. receivable is established when both the amount is known and Reported realized and unrealized gain (loss) on investments significant contingencies or uncertainties regarding collectability include foreign currency gain (loss) related to investment are removed. These amounts are reported in “dividends and transactions. interest receivable” on the Consolidated Statement of Assets and Reported realized and unrealized gain (loss) on foreign Liabilities. currency transactions and translation include the following: Capital gains taxes are incurred upon disposition of certain disposing/holding of foreign currency, the difference between the foreign securities. Capital gains taxes on appreciated securities are trade and settlement dates on securities transactions, the difference accrued as unrealized losses and are reflected as realized losses upon between the accrual and payment dates on dividends, and currency the sale of the related security. Currency taxes may be incurred losses on the purchase of foreign currency in certain countries that when the Fund purchases certain foreign currencies related to impose taxes on such transactions. securities transactions and are recorded as realized losses on foreign Consolidation The Fund may invest in certain securities currency transactions. through its wholly owned subsidiary, Dodge & Cox International Repurchase agreements The Fund enters into repurchase Stock Fund Cayman, Ltd. (the “Subsidiary”). The Subsidiary is a agreements, secured by U.S. government or agency securities, Cayman Islands exempted company and invests in certain which involve the purchase of securities from a counterparty with securities consistent with the investment objective of the Fund. asimultaneous commitment to resell the securities at an agreed- The Fund’s Consolidated Financial Statements, including the upon date and price. It is the Fund’s policy that its custodian take Consolidated Portfolio of Investments, consist of the holdings and possession of the underlying collateral securities, the fair value of accounts of the Fund and the Subsidiary. All intercompany which exceeds the principal amount of the repurchase transaction, transactions and balances have been eliminated. At including accrued interest, at all times. In the event of default by December 31, 2015, the Subsidiary had net assets of $100, which the counterparty, the Fund has the contractual right to liquidate represented less than 0.01% of the Fund’s consolidated net assets. the collateral securities and to apply the proceeds in satisfaction of Indemnification Under the Trust’s organizational the obligation. documents, its officers and trustees are indemnified against certain Forward currency contracts A forward currency contract liabilities arising out of the performance of their duties to the represents an obligation to purchase or sell a specific foreign Trust. In addition, in the normal course of business the Trust currency at a future date at a price set at the time of the contract. enters into contracts that provide general indemnities to other Losses from these transactions may arise from unfavorable changes parties. The Trust’s maximum exposure under these arrangements in currency values or if the counterparties do not perform under a is unknown as this would involve future claims that may be made contract’s terms. against the Trust that have not yet occurred. The values of the forward currency contracts are adjusted daily based on the prevailing forward exchange rates of the NOTE 2—VALUATION MEASUREMENTS underlying currencies. Changes in the value of open contracts are Various inputs are used in determining the value of the Fund’s recorded as unrealized appreciation or depreciation in the investments and other financial instruments. These inputs are Consolidated Statement of Operations. When the forward summarized in the three broad levels listed below. currency contract is closed, the Fund records a realized gain or loss ▪ Level 1: Quoted prices in active markets for identical securities in the Consolidated Statement of Operations equal to the ▪ Level 2: Other significant observable inputs (including quoted difference between the value at the time the contract was opened prices for similar securities, market indices, interest rates, credit and the value at the time it was closed. risk, etc.) The Fund maintained forward currency contracts to hedge ▪ Level 3: Significant unobservable inputs (including Fund foreign currency risks associated with portfolio investments management’s assumptions in determining the fair value of denominated in the euro and Swiss franc. During the year ended investments) December 31, 2015, these euro and Swiss franc forward currency

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 11 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Financial Instruments(b) trustees of the Trust are officers or employees of Dodge & Cox. Forward Currency Contracts The Trust pays a fee only to those trustees who are not affiliated Appreciation $ — $ 29,472,280 with Dodge & Cox. Depreciation — (33,999,716) NOTE 5—INCOME TAX INFORMATION AND (a) Transfers during the year between Level 1 and Level 2 relate to the use of systematic fair valuation (see Note 1). On days when systematic fair DISTRIBUTIONS TO SHAREHOLDERS valuation is used, securities whose primary market closes before the NYSE A provision for federal income taxes is not required since the Fund are classified as Level 2. There were no Level 3 securities at December 31, intends to continue to qualify as a regulated investment company 2015 and 2014, and there were no transfers to Level 3 during the year. (b) Represents unrealized appreciation/(depreciation). under Subchapter M of the Internal Revenue Code and distribute all of its taxable income to shareholders. Distributions are NOTE 3—ADDITIONAL DERIVATIVES INFORMATION determined in accordance with income tax regulations, and such The Fund has entered into over-the-counter derivatives, such as amounts may differ from net investment income and realized gains forward currency contracts (each, a “Derivative”). Each Derivative for financial reporting purposes. Financial reporting records are is subject to a negotiated master agreement (based on a form adjusted for permanent book to tax differences at year end to published by the International Swaps and Derivatives Association reflect tax character. (“ISDA”)) governing all Derivatives between the Fund and the Book to tax differences are primarily due to differing relevant dealer counterparty. The master agreements specify treatments of wash sales, net short-term realized gain (loss), (i) events of default and other events permitting a party to investments in passive foreign investment companies, foreign terminate some or all of the Derivatives thereunder and (ii) the capital gain taxes, and foreign currency realized gain (loss). At process by which those Derivatives will be valued for purposes of December 31, 2015, the cost of investments for federal income tax determining termination payments. If some or all of the purposes was $62,340,216,132. Derivatives under a master agreement are terminated because of an Distributions during the years noted below were characterized event of default or similar event, the values of all terminated as follows for federal income tax purposes.

Derivatives must be netted to determine a single payment owed by Year Ended Year Ended one party to the other. Some master agreements contain collateral December 31, 2015 December 31, 2014 terms requiring the parties to post collateral in respect of some or Ordinary income $1,304,169,120 $1,440,251,048 all of the Derivatives thereunder based on the net market value of ($0.840 per share) ($0.970 per share) those Derivatives, subject to a minimum exposure threshold. To Long-term capital gain — —

PAGE 12 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2015, the tax basis components of NOTE 7—PURCHASES AND SALES OF INVESTMENTS distributable earnings were as follows: For the year ended December 31, 2015, purchases and sales of securities, other than short-term securities, aggregated $14,357,056,088 Unrealized appreciation $6,704,313,452 and $11,503,938,817 respectively. Unrealized depreciation (12,308,103,456) Net unrealized depreciation (5,603,790,004) NOTE 8—SUBSEQUENT EVENTS Undistributed ordinary income 14,057,590 Fund management has determined that no material events or Capital loss carryforward(a) (1,783,220,989) transactions occurred subsequent to December 31, 2015, and Deferred loss(b) (18,220,273) through the date of the Fund’s financial statements issuance, which require additional disclosure in the Fund’s financial statements. (a) Represents accumulated capital loss as of December 31, 2015, which may be carried forward to offset future capital gains. During 2015, the Fund utilized $1,416,343,422 of the capital loss carryforward. If not utilized, the remaining capital loss carryforward will expire as follows: Expiring in 2017 $ 663,100,760 Expiring in 2018 1,120,120,229 $1,783,220,989 (b) Represents net realized specified loss incurred between November 1, 2015 and December 31, 2015. As permitted by tax regulations, the Fund has elected to treat this loss as arising in 2016.

Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Fund after January 1, 2011, are not subject to expiration. In addition, such losses must be utilized prior to the losses incurred in the years preceding enactment. Fund management has reviewed the tax positions for open periods (three years and four years, respectively, from filing the Fund’s Federal and State tax returns) as applicable to the Fund, and has determined that no provision for income tax is required in the Fund’s financial statements.

NOTE 6—LOAN FACILITIES Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund may participate in an interfund lending facility (Facility). The Facility allows the Fund to borrow money from or loan money to the Funds. Loans under the Facility are made for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest on borrowings is the average of the current repurchase agreement rate and the bank loan rate. There was no activity in the Facility during the year. All Funds in the Trust participate in a $500 million committed credit facility (Line of Credit) with State Street Bank and Trust Company, to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The maximum amount available to the Fund is $250 million. Each Fund pays an annual commitment fee on its pro-rata portion of the Line of Credit. For the year ended December 31, 2015, the Fund’s commitment fee amounted to $204,009 and is reflected as a Miscellaneous Expense in the Consolidated Statement of Operations. Interest on borrowings is charged at the prevailing rate. There were no borrowings on the Line of Credit during the year.

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 13 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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’s voting securities during all or part of the year ended December 31, 2015. Purchase and sale transactions and dividend income earned during the year on these securities were as follows:

Shares at Shares at Dividend Value at Beginning of Year Additions Reductions End of Year Income(a) End 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 4,579,929 210,023,170 BR Malls Participacoes SA (Brazil) 54,870,300 — — 54,870,300 8,160,027 153,032,279 Brother 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 11,468,203 358,666,866 Infineon 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 14,472,518 578,306,373 Kyocera Corp. (Japan) 20,248,000 — (1,125,600) 19,122,400 16,628,257 886,308,045 Lafarge 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 22,755,923 574,611,534 New 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) 376,728,063 Smiths Group PLC (United Kingdom) 26,840,600 7,085,600 — 33,926,200 21,009,124 469,881,576 Television Broadcasts, Ltd. (Hong Kong) 40,022,900 — — 40,022,900 25,299,505 164,996,568 Yamaha Motor Co., Ltd. (Japan) 31,550,100 — — 31,550,100 11,417,409 706,999,061 Yapi 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

PAGE 14 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND CONSOLIDATED 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 $42.11 $43.04 $34.64 $29.24 $35.71 Income from investment operations: Net investment income 0.79 0.98 0.70 0.76 0.78 Net realized and unrealized gain (loss) (5.58) (0.94) 8.40 5.39 (6.49) Total from investment operations (4.79) 0.04 9.10 6.15 (5.71) Distributions to shareholders from: Net investment income (0.84) (0.97) (0.70) (0.75) (0.76) Net realized gain ————— Total distributions (0.84) (0.97) (0.70) (0.75) (0.76) Net asset value, end of year $36.48 $42.11 $43.04 $34.64 $29.24 Total return (11.35)% 0.07% 26.31% 21.03% (15.97)% Ratios/supplemental data: Net assets, end of year (millions) $57,029 $64,040 $53,616 $40,556 $35,924 Ratio of expenses to average net assets 0.64% 0.64% 0.64% 0.64% 0.64% Ratio of net investment income to average net assets 1.86% 2.39% 1.85% 2.31% 2.23% Portfolio turnover rate 18% 12% 13% 10% 16%

See accompanying Notes to Consolidated Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of Dodge & Cox International Stock Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) 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 in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 15 SPECIAL 2015 TAX INFORMATION memoranda and related materials addressing, among other things, The following information is provided pursuant to provisions of Dodge & Cox’s services to the Funds; how Dodge & Cox Funds’ the Internal Revenue Code: fees compare to fees of peer group funds; the different fees, services, In 2015, the Fund elected to pass through to shareholders costs, and risks associated with other accounts managed by foreign source income of $1,705,148,285 and foreign taxes paid of Dodge & Cox as compared to the Dodge & Cox Funds; and the $93,902,146. ways in which the Funds realize economies of scale. Throughout The Fund designates up to a maximum of $1,627,860,558 of its the process of reviewing the services provided by Dodge & Cox distributions paid to shareholders in 2015 as qualified dividends and preparing for the meeting, the Independent Trustees found (treated for federal income tax purposes in the hands of shareholders Dodge & Cox to be open, forthright, detailed, and very helpful in as taxable at a maximum rate of 20%). answering questions about all issues. The Board received copies of For shareholders that are corporations, the Fund designates the Agreements and a memorandum from the independent legal 3% of its ordinary dividends paid to shareholders in 2015 as counsel to the Independent Trustees discussing the factors dividends from domestic corporations eligible for the corporate generally regarded as appropriate to consider in evaluating advisory dividends received deduction, provided that the shareholder arrangements. The Trust’s Contract Review Committee, consisting otherwise satisfies applicable requirements to claim that deduction. solely of Independent Trustees, met with the independent legal counsel on November 11, 2015, and again on December 16, 2015, BOARD APPROVAL OF FUNDS’ INVESTMENT to discuss whether to renew the Agreements. The Board, including MANAGEMENT AGREEMENTS AND the Independent Trustees, subsequently concluded that the MANAGEMENT FEES (unaudited) existing Agreements are fair and reasonable and voted to approve The Board of Trustees is responsible for overseeing the performance of the Agreements. In considering the Agreements, the Board, the Dodge & Cox Funds’ investment manager and determining including the Independent Trustees, did not identify any single whether to continue the Investment Management Agreements factor or particular information as all-important or controlling. In between the Funds and Dodge & Cox each year (the “Agreements”). reaching the decision to approve the Agreements, the Board At a meeting of the Board of Trustees of the Trust held on considered several factors, discussed below, to be key factors and December 16, 2015, the Trustees, by a unanimous vote (including a reached the conclusions described below. separate vote of those Trustees who are not “interested persons” (as NATURE, QUALITY, AND EXTENT OF THE SERVICES defined in the Investment Company Act of 1940) (the “Independent The Board considered that Dodge & Cox provides a wide range of Trustees”)), approved the renewal of the Agreements for an additional services to the Funds in addition to portfolio management and that one-year term through December 31, 2016 with respect to each Fund. the quality of these services has been excellent in all respects. The During the course of the year, the Board received a wide variety of extensive nature of services provided by Dodge & Cox has been materials relating to the investment management and administrative documented in materials provided to the Board and in services provided by Dodge & Cox and the performance of each of the presentations made to the Board throughout the year. In Funds. particular, the Board considered the nature, quality, and extent of portfolio management, administrative, and shareholder services INFORMATION RECEIVED In advance of the meeting, the Board, including each of the performed by Dodge & Cox. With regard to portfolio management Independent Trustees, requested, received, and reviewed materials services, the Board considered Dodge & Cox’s established long- relating to the Agreements and the services provided by term history of care and conscientiousness in the management of the Funds; its demonstrated consistency in investment approach Dodge & Cox. The Independent Trustees retained Morningstar® to prepare an independent expense and performance summary for each and depth; the background and experience of the Dodge & Cox Fund and comparable funds managed by other advisers identified by Investment Policy Committee, International Investment Policy Morningstar. The Morningstar materials included information Committee, Global Stock Investment Policy Committee, Fixed regarding advisory fee rates, expense ratios, and transfer agency, Income Investment Policy Committee, and Global Bond custodial, and distribution expenses, as well as appropriate performance Investment Policy Committee, and research analysts responsible comparisons to each Fund’s peer group and an index or combination of for managing the Funds; its methods for assessing the regulatory indices. The Morningstar materials also included a comparison of and investment climate in various jurisdictions; Dodge & Cox’s expenses of various share classes offered by comparable funds. The overall high level of attention to its core investment management materials reviewed by the Board contained information concerning, function; and its commitment to the Funds and their shareholders. among other things, Dodge & Cox’s profitability, financial results and In the area of administrative and shareholder services, the Board condition, advisory fee revenue, and separate account and sub-adviser considered the excellent quality of Dodge & Cox’s work in areas fund fee schedules. The Board additionally considered the Funds’ such as compliance, legal services, trading, proxy voting, brokerage commissions, turnover rates, sales and redemption data and technology, oversight of the Funds’ transfer agent and custodian, the significant investment that Dodge & Cox makes in research used tax compliance, and shareholder communication through its in managing the Funds. The Board received and reviewed website and other means. The Board also noted Dodge & Cox’s diligent disclosure policy, its favorable compliance record, and its

PAGE 16 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND reputation as a trusted, shareholder-friendly mutual fund family. In The Board noted that expenses are well below industry addition, the Board considered that Dodge & Cox manages averages. When compared to peer group funds, the Funds are in approximately $185 billion in Fund assets with fewer professionals the quartile with the lowest expense ratios. The Board also than most comparable funds, and that on average these considered that the Funds receive numerous administrative, professionals have more experience and longer tenure than regulatory compliance, legal, technology and shareholder support investment professionals at comparable funds. The Board also services from Dodge & Cox without any additional administrative noted that Dodge & Cox is an investment research-oriented firm fee and the fact that the Funds have relatively low transaction with no other business endeavors to distract management’s costs and portfolio turnover rates. The Board noted the Funds’ attention from its research efforts, and that its investment unusual single-share-class structure and reviewed Morningstar data professionals adhere to a consistent investment approach across showing that the few peer group funds with lower expense ratios the Funds. The Board further considered the favorable stewardship often have other share classes with significantly higher expense grades given by Morningstar to each of the Funds and the “Gold” ratios. In this regard, the Board considered that many of the Funds’ analyst rating awarded by Morningstar to all of the Funds except shareholders would not be eligible to purchase comparably-priced the Global Bond Fund. The Board concluded that it was satisfied shares of many peer group funds, which typically make their lower- with the nature, extent, and quality of investment management priced share classes available only to institutional investors. The and other services provided to the Funds by Dodge & Cox. Board determined that the Funds provide access for small investors to high quality investment management at a relatively low cost. INVESTMENT PERFORMANCE The Board reviewed information regarding the fee rates The Board considered short-term and long-term investment Dodge & Cox charges to separate accounts and subadvised funds performance for each Fund (including periods of outperformance that have investment programs similar to those of the Funds, or underperformance) as compared to both relevant indices and including instances where separate account and sub-advised fund the performance of such Fund’s peer group. The Board noted that fees are lower than Fund fees. The Board considered differences in the Funds had weak absolute and relative performance in 2015, but the nature and scope of services Dodge & Cox provides to the remained solid performers over longer periods. The Board Funds as compared to other client accounts, differences in determined after extensive review and inquiry that Dodge & Cox’s regulatory, litigation, and other risks as between Dodge & Cox historic, long-term, team-oriented, bottom-up investment Funds and other types of clients. The Board also noted that approach remains consistent and that Dodge & Cox continues to different markets exist for mutual fund and institutional separate be distinguished by its integrity, transparency, and independence. account management services. With respect to non-U.S. funds The Board considered that the performance of the Funds is the sponsored and managed by Dodge & Cox that are comparable to result of a team-oriented investment management process that the Funds in many respects, the Board noted that the fee rates emphasizes a long-term investment horizon, comprehensive charged by Dodge & Cox are the same as or higher than the fee independent research, price discipline, low cost and low portfolio rates charged to the Funds. After consideration of these matters, turnover. The Board also considered that the investment the Board concluded that the overall costs incurred by the Funds performance delivered by Dodge & Cox to the Funds appeared to for the services they receive (including the management fee paid be consistent with the relevant performance delivered for other to Dodge & Cox) are reasonable and that the fees are acceptable clients of Dodge & Cox. The Board concluded that Dodge & Cox based upon the qualifications, experience, reputation, and has delivered favorable long-term performance for Fund investors performance of Dodge & Cox and the low overall expense ratios of consistent with the long-term investment strategies being pursued by the Funds. the Funds. Profitability and Costs of Services to Dodge & Cox;

COSTS AND ANCILLARY BENEFITS “Fall-out” Benefits. The Board reviewed reports of Costs of Services to Funds: Fees and Expenses. The Board Dodge & Cox’s financial position, profitability, and estimated considered each Fund’s management fee rate and expense ratio overall value, and considered Dodge & Cox’s overall profitability relative to each Fund’s peer group and relative to management fees within its context as a private, employee-owned S-Corporation charged by Dodge & Cox to other clients. In particular, the Board and relative to the favorable services provided. The Board noted in considered that the Funds continue to be substantially below their particular that Dodge & Cox’s profits are not generated by high fee peer group median in expense ratios and that many media and rates, but reflect an extraordinarily streamlined, efficient, and industry reports specifically comment on the low expense ratios of focused business approach toward investment management. The the Funds, which have been a defining characteristic of the Funds Board recognized the importance of Dodge & Cox’s profitability— for many years. The Board also evaluated the operating structures which is derived solely from management fees and does not of the Funds and Dodge & Cox, noting that the Funds do not include other business ventures—to maintain its independence, charge front-end sales commissions or distribution fees, and stability, company culture and ethics, and management continuity. Dodge & Cox bears, among other things, the significant cost of The Board also considered that the compensation/profit structure third party research, reimbursement for recordkeeping and at Dodge & Cox includes a return on shareholder employees’ administrative costs to third-party retirement plan administrators, investment in the firm, which is vital for remaining independent and administrative and office overhead. and facilitating retention of management and investment

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 17 professionals. The Board considered independent research The Board considered that Dodge & Cox has a history of indicating that firms that grow organically, rather than through voluntarily limiting asset growth in several Funds that experienced acquisition, tend to have better performance. Key to organic significant inflows by closing them to new investors in order to growth is the ability to retain talented and experienced analysts, protect the Funds’ ability to achieve good investment returns for portfolio managers and other professionals. shareholders. The Board also observed that, even without fee The Board also considered that in January 2015, Dodge & Cox breakpoints, the Funds are competitively priced in a very closed the International Stock Fund to new investors to pro-actively competitive market and that having a low fee from inception is manage the growth of the Fund. The Stock Fund and Balanced Fund better for shareholders than starting with a higher fee and adding were similarly closed to new investors during periods of significant breakpoints. The Board concluded that the current Dodge & Cox growth in the past. While these actions are intended to benefit fee structure is fair and reasonable and adequately shares existing shareholders, the effect is to reduce potential revenues to economies of scale that may exist. Dodge & Cox from new shareholders. The Board also considered potential “fall-out” benefits (including the receipt of research from CONCLUSION unaffiliated brokers and reputational benefits to non-U.S. funds Based on their evaluation of all material factors and assisted by the sponsored and managed by Dodge & Cox) that Dodge & Cox might advice of independent legal counsel to the Independent Trustees, receive as a result of its association with the Funds and determined the Board, including the Independent Trustees, concluded that the that they are acceptable. The Board also noted that Dodge & Cox advisory fee structure was fair and reasonable, that each Fund was continues to invest substantial sums in its business in order to provide paying a competitive fee for the services provided, that the scope enhanced services, systems and research capabilities, all of which and quality of Dodge & Cox’s services has provided substantial benefit the Funds. The Board concluded that Dodge & Cox’s value for Fund shareholders over the long term, and that approval profitability is the keystone of its independence, stability and long- of the Agreements was in the best interests of each Fund and its term investment performance and that the profitability of shareholders. Dodge & Cox’s relationship with the Funds (including fall-out benefits) is fair and reasonable. FUND HOLDINGS The Fund provides a complete list of its holdings four times each ECONOMIES OF SCALE fiscal year, as of the end of each quarter. The Fund files the lists The Board considered whether there have been economies of scale with the Securities and Exchange Commission (SEC) on with respect to the management of each Fund, whether the Funds Form N-CSR (second and fourth quarters) and Form N-Q (first have appropriately benefited from any economies of scale, and and third quarters). Shareholders may view the Fund’s whether the management fee rate is reasonable in relation to the Forms N-CSR and N-Q on the SEC’s website at sec.gov. Forms Fund assets and any economies of scale that may exist. In the Board’s N-CSR and N-Q may also be reviewed and copied at the SEC’s view, any consideration of economies of scale must take account of Public Reference Room in Washington, DC. Information the Funds’ low fee structure and the considerable efficiencies of the regarding the operations of the Public Reference Room may be Funds’ organization and fee structure that has been realized by obtained by calling 202-551-8090 (direct) or 800-732-0330 shareholders from the time of each Fund’s inception (i.e., from the (general SEC number). A list of the Fund’s quarter-end holdings is first dollar). An assessment of economies of scale must also take into also available at dodgeandcox.com on or about 15 days following account that Dodge & Cox invests significant time and resources in each quarter end and remains available on the website until the each new Fund for months (and sometimes years) prior to launch; in list is updated in the subsequent quarter. addition, expenses are capped, which means that Dodge & Cox earns no revenue and subsidizes the operations of a new Fund for a period PROXY VOTING of time until it reaches scale. For a free copy of the Fund’s proxy voting policies and procedures, In addition, the Board noted that Dodge & Cox has shared please call 800-621-3979, visit the Fund’s website at economies of scale by adding or enhancing services to the Funds dodgeandcox.com, or visit the SEC’s website at sec.gov. over time, and that the internal costs of providing investment Information regarding how the Fund voted proxies relating to management, up-to-date technology, administrative, legal, and portfolio securities during the most recent 12-month period ending compliance services to the Funds continue to increase. For June 30 is also available at dodgeandcox.com or at sec.gov. example, Dodge & Cox has increased its global research staff and investment resources over the years to address the increased HOUSEHOLD MAILINGS complexity of investing in multinational and non-U.S. companies. The Fund routinely mails shareholder reports and summary In addition, Dodge & Cox has made substantial expenditures in prospectuses to shareholders and, on occasion, proxy statements. other staff, technology, cybersecurity, and infrastructure to enable In order to reduce the volume of mail, when possible, only one it to integrate credit and equity analyses and to be able to copy of these documents will be sent to shareholders who are part implement its strategy in a more effective and secure manner. Over of the same family and share the same residential address. the last ten years, Dodge & Cox has increased its spending on If you have a direct account with the Funds and you do not want third party research, data services, trading systems, technology, and the mailing of shareholder reports and summary prospectuses recordkeeping service expenses at a rate that has significantly combined with other members in your household, contact the Funds outpaced the Funds’ growth rate during the same period. at 800-621-3979. Your request will be implemented within 30 days.

PAGE 18 ▪ D ODGE &COX I NTERNATIONAL S TOCK F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2013) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge &Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

D ODGE &COX I NTERNATIONAL S TOCK F UND ▪ PAGE 19 International Stock Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San Francisco, California 94104 (415) 981-1710

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 INFORMATION 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. TABLE OF CONTENTS 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

CLASSIFICATION, INVESTMENT RESTRICTIONS, AND RISKS

CLASSIFICATION 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.

INVESTMENT RESTRICTIONS 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.

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.

CHARACTERISTICS AND RISKS OF SECURITIES AND INVESTMENT TECHNIQUES 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 2

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.

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.

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

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

6 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

7 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.

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.

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.

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

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

12 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

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

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

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. 16

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, 17

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

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. 19

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.

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 21 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.

DISCLOSURE OF FUND HOLDINGS 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.

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.

MANAGEMENT OF THE FUNDS TRUSTEES AND OFFICERS 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 23

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

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 Principal Occupation(s) During the Past Five Directorships of Public Companies and Trust, and Year of Election or Years and Other Relevant Experience Other Investment Companies During Appointment as Trustee the Past Five Years Thomas A. Larsen Mr. Larsen has been Senior Counsel of Arnold & None (66) Porter LLP (a law firm) since 2013, prior to Trustee since 2002 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. Ann Mather Ms. Mather has served as the Chief Financial Current Director of Google, Inc. (56) Officer or in other executive financial (internet information services); Glu Trustee since 2011 management positions with numerous public and Mobile, Inc. (multimedia software); private companies, including Polo Ralph Lauren, Netflix, Inc. (internet television); Buena Vista International, Inc., and, most Arista Networks (cloud networking); recently, Pixar Animation Studios where she was and Shutterfly, Inc. (internet CFO from 1999 to 2004. Ms. Mather has also photography services/publishing). served on a variety of public and private Previous Director of Central company boards, including as chair of the audit European Media Enterprises, Ltd. committee for several public company boards. (vertically integrated media services) (until 2009), MoneyGram International, Inc. (business services) (2010-13) Robert B. Morris III Mr. Morris serves as Advisory Director to the None (63) Presidio Group. During his career in the financial Trustee since 2011 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.

Name, (Age), Position with the Principal Occupation(s) During the Past Five Directorships of Public Companies and Trust, and Year of Election or Years and Other Relevant Experience Other Investment Companies During Appointment as Trustee the Past Five Years Gary Roughead Admiral Roughead (Ret.) has served since 2012 Current Director, Northrop (64) as the Annenberg Distinguished Visiting Fellow Grumman Corp. (global security) at the Hoover Institution at Stanford University. Trustee since December 2013 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. Mark E. Smith Mr. Smith served as a consultant from 2012 to None (65) 2013 at Brown Brothers Harriman, an investment management company, and at Trustee since April 2014 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. John B. Taylor Mr. Taylor has been a Professor of Economics at None (69) Stanford University since 1984 and a Senior Trustee since 2005 Fellow at the Hoover Institution since 1996. He (and 1995-2001)* 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. * 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.

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.) Name, (Age), Position with the Principal Occupation(s) During the Past Five Directorships of Public Companies Trust, and Year of Election or Years and Other Relevant Experience and Other Investment Companies Appointment as Trustee During the Past Five Years Charles F. Pohl Chairman (since 2013), Co- President (2011- None (58) 2013), Senior Vice President (until 2011), and Chairman Director of Dodge & Cox; Chief Investment Trustee since 2014 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. Dana M. Emery Chief Executive Officer (since 2013), President None (54) (since 2011), Executive Vice President (2011), President and Director of Dodge & Cox; Director of Fixed Trustee since 1993* Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC). Ms. Emery joined Dodge & Cox in 1983. * 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 Principal Occupation(s) During the Past Five Years (Year of Election or Appointment) John A. Gunn Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), and (72) (Officer since 1998) Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC (until 2016), GSIPC (until 2014), and IIPC (until 2015). Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), (56) (Officer since 2005) 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 Vice President Vice President (since 2011) of Dodge & Cox, Portfolio Manager, (37) (Officer since 2010) Investment Analyst, and member of IIPC (since 2015) Philippe Barret, Jr. Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment (39) (Officer since 2010) Analyst, and member of IPC (since 2013) Lily S. Beischer Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (46) (Officer since 2008) Analyst, and member of GSIPC Wendell W. Birkhofer Vice President Senior Vice President (since February 2016) and Vice President (59) (Officer since 2001) (until February 2016) of Dodge & Cox, Portfolio Manager, and member of IPC Anthony J. Brekke Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (41) (Officer since 2008) Analyst, and member of FIIPC Richard T. Callister Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (44) (Officer since 2010) Analyst, and member of IIPC (since 2012) C. Bryan Cameron Vice President Senior Vice President (since 2011) and Vice President (until (58) (Officer since 2004) 2011) of Dodge & Cox, Director of Research, Portfolio Manager, Investment Analyst, and member of IPC and IIPC 27

Name and (Age) Position(s) with the Trust Principal Occupation(s) During the Past Five Years (Year of Election or Appointment) James H. Dignan Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (46) (Officer since 2004) Analyst, and member of FIIPC and GBIPC (since 2014) Mario C. DiPrisco Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (40) (Officer since 2005) Analyst, and member of IIPC Thomas S. Dugan Vice President Senior Vice President (since 2011), Vice President (until 2011), (51) (Officer since 2001) 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 Vice President Senior Vice President (since 2011), Vice President (until 2011), (48) (Officer since 2004) 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 Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (45) (Officer since 2007) Analyst, and member of IIPC Lucinda I. Johns Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (42) (Officer since 2010) Analyst, and member of FIIPC (since 2012) and GBIPC (since 2014) Roger G. Kuo Vice President Vice President and Director (as of January 2016) of Dodge & Cox, (44) (Officer since 2006) Portfolio Manager, Investment Analyst, and member of IIPC and GSIPC Karol Marcin Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (43) (Officer since 2008) Analyst, and member of GSIPC Kathleen Grey McCarthy Vice President Vice President (since 2012) of Dodge & Cox, Portfolio Manager, (36) (Officer since 2012) Investment Analyst, and member of IPC (as of January 2016) Raymond J. Mertens, Jr. Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (43) (Officer since 2010) Analyst, and member of GSIPC (since 2014) Larissa K. Roesch Vice President Vice President of Dodge & Cox, Portfolio Manager, and member (49) (Officer since 2003) of FIIPC Adam S. Rubinson Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (49) (Officer since 2008) Analyst, and member of FIIPC and GBIPC (since 2014) Steven C. Voorhis Vice President Vice President of Dodge & Cox, Portfolio Manager, Investment (46) (Officer since 2006) Analyst, and member of IPC and GSIPC Matthew A. Beck Assistant Vice President Vice President (since 2012) of Dodge & Cox and Client Service (43) (Officer since 2009) Representative Terrill C. Armstrong Assistant Vice President Client Service Representative of Dodge & Cox (since 2015); (43) (Officer since 2015) Portfolio Manager at Fischer Francis Trees & Watts (2011-2014) Carl Bindoo Assistant Vice President Investment Accounting & Operations Manager of Dodge & Cox (41) (Officer since 2015) (since 2011); Vice President, State Street Corporation (1997- 2011) Damon T. Blechen Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (since (39) (Officer since 2013) 2012); Equity Trader (until 2012) James T. Borden Assistant Vice President Vice President of Dodge & Cox and Portfolio Manager (56) (Officer since 2004) Steven H. Cassriel Assistant Vice President Vice President of Dodge & Cox, Portfolio Manager, and (54) (Officer since 2001) Investment Analyst Alexander J. Chartz Assistant Vice President Client Service Representative of Dodge & Cox (28) (Officer since 2014)

Name and (Age) Position(s) with the Trust Principal Occupation(s) During the Past Five Years (Year of Election or Appointment) Hsin Chau Assistant Vice President Vice President (since 2014), Senior Counsel (since 2014), and (40) (Officer since 2016) Associate Counsel (since 2011) of Dodge & Cox Sophie Chen Assistant Vice President Investment Analyst of Dodge & Cox (since 2012); Stanford (32) (Officer since 2013) Graduate School of Business MBA Program (2010-2012 Linda K. Chong Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (43) (Officer since 2010) Robert T. Curran Assistant Vice President Vice President (since 2012) of Dodge & Cox and Fund (40) (Officer since 2013) Administration and Client Service Representative Deirdre A. Curry Assistant Vice President Vice President (since 2014) and Client Service Representative (49) (Officer since 2011) of Dodge & Cox Shawn G. Dahlem Assistant Vice President Vice President (since 2013) of Dodge & Cox and Portfolio (50) (Officer since 2009) Manager Rameez Dossa Assistant Vice President Investment Analyst of Dodge & Cox (since 2013); Harvard (32) (Officer since 2014) Business School MBA Program (2011-2013) David J. Edwards Assistant Vice President Vice President of Dodge & Cox and Client Service (54) (Officer since 2001) Representative Karim A. Fakhry Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (38) (Officer since 2010) Kathryn O. Fast Assistant Vice President Vice President of Dodge & Cox and Client Service (42) (Officer since 2009) Representative Allen C. Feldman Assistant Vice President Investment Analyst (since 2013) and Research and Trading (30) (Officer since 2013) Associate (until 2013) of Dodge & Cox Benjamin V. Garosi Assistant Vice President Vice President (since 2013) and Investment Analyst of Dodge & (36) (Officer since 2012) Cox Steven T. Gorski Assistant Vice President Vice President of Dodge & Cox and Client Service (46) (Officer since 2001) Representative Amy R. Grandstaff Assistant Vice President Client Service Representative of Dodge & Cox (28) (Officer since 2013) Glen S. Guymon Assistant Vice President Vice President (since 2012), Senior Counsel (since 2013), and (46) (Officer since 2009) Associate Counsel (until 2013) of Dodge & Cox John N. Iannuccillo Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (47) (Officer since 2010) Kevin D. Johnson Assistant Vice President Vice President of Dodge & Cox, Portfolio Manager, and (54) (Officer since 2001) Investment Analyst Roberta R.W. Kameda Assistant Vice President and Vice President , General Counsel of Dodge & Cox (55) Assistant Secretary (Officer since 2006) Nancy A. Kellerman Assistant Vice President Vice President of Dodge & Cox, Portfolio Manager, and (45) (Officer since 2012) Investment Analyst Michael Kiedel Assistant Vice President Vice President (since 2012) and Investment Analyst of Dodge & (40) (Officer since 2011) Cox Mary E. Klabunde Assistant Vice President Vice President of Dodge & Cox and Fund Administration and (57) (Officer since 2013) Client Service Representative Thinh V. Le Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (41) (Officer since 2010) Nicholas V. Lockwood Assistant Vice President Vice President (since 2013) and Investment Analyst (37) (Officer since 2012)

Name and (Age) Position(s) with the Trust Principal Occupation(s) During the Past Five Years (Year of Election or Appointment) Hallie W. Marshall Assistant Vice President Vice President (since 2015), Portfolio Manager, and Investment (37) (Officer since 2012) Analyst of Dodge & Cox; Haas School of Business at the University of California, Berkeley MBA Program (2009-2011) Chad R. Musolf Assistant Vice President Client Service Representative of Dodge & Cox (since 2015); (38) (Officer since 2016) Director, Consultant Relations at INTECH Investment Management (2010-2015) Molly K. Myers Assistant Vice President Portfolio Manager (since 2013) of Dodge & Cox and Portfolio (41) (Officer since 2013) Manager Associate (2009-2013) Joel-Patrick Millsap Assistant Vice President Vice President (since 2011) of Dodge & Cox and Investment (36) (Officer since 2012) Analyst Masato Nakagawa Assistant Vice President Investment Analyst of Dodge & Cox (since 2012); Portfolio (33) (Officer since 2013) Manager at Freddie Mac (2003-2012) Shirlee R. Neil Assistant Vice President Vice President of Dodge & Cox and Portfolio Manager (51) (Officer since 2005) Ria T. Nickens Assistant Vice President Vice President of Dodge & Cox and Client Service (45) (Officer since 2002) Representative Amanda L. Nelson Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (44) (Officer since 2010) Stephanie D. Notowich Assistant Vice President Vice President of Dodge & Cox and Portfolio Manager (50) (Officer since 2005) Arun R. Palakurthy Assistant Vice President Vice President (since 2012) of Dodge & Cox and Investment (35) (Officer since 2011) Analyst E. Saul Pena Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (38) (Officer since 2012) Salil A. Phadnis Assistant Vice President Investment Analyst of Dodge & Cox (since 2013); Wharton (31) (Officer since 2014) School at the University of Pennsylvania MBA Program (2011- 2013); Research Associate, Dodge & Cox (2009-2011) Lynn A. Poole Assistant Vice President Vice President of Dodge & Cox, Portfolio Manager, and (56) (Officer since 2001) Investment Analyst Neha N. Pyle Assistant Vice President Shareholder Services Specialist of Dodge & Cox (since 2016); (40) (Officer since 2016) Executive/Special Projects Assistant, TPG Capital (2014-2016), Director of Client Relations, Phineus Partners (2009-2012) Nils M. Reuter Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (36) (Officer since 2010) Murray J. Rolfe Assistant Vice President Vice President of Dodge & Cox, Operations Manager (since (44) (Officer since 2014) 2013), and Performance and Reporting Manager (until 2013) Matthew B. Schefer Assistant Vice President Vice President (since 2015), Investment Analyst (since 2011) (31) (Officer since 2012) and Research Associate (2008-2011) of Dodge & Cox Rosemarie C. Schembri Assistant Vice President Associate Chief Compliance Officer (since 2013) and (40) (Officer since 2015) Compliance Officer (until 2013) of Dodge & Cox Tara E. Shamia Assistant Vice President Vice President (since 2012) of Dodge & Cox and Client Service (39) (Officer since 2005) Representative Varinia T. Siefker Assistant Vice President Intermediary Operations Relationship Manager of Dodge & Cox (36) (Officer since 2014) (since 2014); Portfolio Strategist and Product Manager, Charles Schwab Investment Management (2011-2013); Marketing Product Manager, Principal Funds Distributor (2009-2011) Doug M. Silverman Assistant Vice President Client Service Representative of Dodge & Cox (since 2015); (33) (Officer since 2016) Officer in the U.S. Navy (2002-2015)

Name and (Age) Position(s) with the Trust Principal Occupation(s) During the Past Five Years (Year of Election or Appointment) Paritosh Somani Assistant Vice President Vice President (since 2012) of Dodge & Cox and Investment (37) (Officer since 2012) Analyst Savvy S. Soun Assistant Vice President Vice President of Dodge & Cox and Equity Trading Manager (43) (Officer since 2013) Jay J. Stock Assistant Vice President Vice President of Dodge & Cox and Investment Analyst (54) (Officer since 2011) Robert S. Turley Assistant Vice President Investment Analyst of Dodge & Cox (since 2013); Harvard (36) (Officer since 2014) University PhD Program in Business Economics (2008-2013) Jose Ursua Assistant Vice President Investment Analyst of Dodge & Cox (since 2014); Global (35) (Officer since 2015) Economics and Markets Analyst at Goldman Sachs (2011- 2014); Harvard University PhD (Economics) (2005-2011) Ryan Utsumi Assistant Vice President Client Service Representative of Dodge & Cox (since 2015); (37) (Officer 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 Assistant Vice President Vice President of Dodge & Cox and Portfolio Manager (54) (Officer since 2006) Tae Yamaura Assistant Vice President Vice President (since 2012) of Dodge & Cox and Investment (43) (Officer since 2012) Analyst Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (62) (Officer since 1998) (since 2011) and General Counsel (until 2011) of Dodge & Cox David H. Longhurst Treasurer Vice President and Assistant Treasurer of Dodge & Cox (58) (Officer since 2006) John M. Loll Assistant Treasurer and Assistant Vice President and Treasurer of Dodge & Cox (50) Secretary (Officer since 2000) Katherine M. Primas Chief Compliance Officer Vice President (since 2011) and Chief Compliance Officer of (41) (Officer since 2009) Dodge & Cox

The Board of Trustees has the five standing committees listed below:

Number of Meetings Held Functions Members During the Last Fiscal Year Audit and Oversee the accounting and financial reporting processes of Thomas A. Larsen 2 Compliance the Trust and each of its series and its internal controls and, Ann Mather Committee as the Committee deems appropriate, inquire into the (Chairperson) internal controls of certain third-party service providers; Robert B. Morris oversee the quality and integrity of the Funds’ financial statements and the independent audit thereof; oversee, or, Gary Roughead as appropriate, assist Board of Trustees’ oversight of, the Mark E. Smith Funds’ compliance with legal and regulatory requirements John B. Taylor 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. Contract Review Consider the renewal of the Investment Management Thomas A. Larsen 2 Committee Agreements between the Funds and Dodge & Cox pursuant (Chairperson) to Section 15(c) of the 1940 Act, and such other material Ann Mather contracts as the Board and Committee deem appropriate. Robert B. Morris Gary Roughead Mark E. Smith John B. Taylor Governance Nominate proposed members of committees of the Board; Thomas A. Larsen 4 Committee evaluate and recommend to the Board the compensation of Ann Mather Trustees and Trustee expense reimbursement policies; Robert B. Morris evaluate the performance of the Board as deemed necessary. Gary Roughead Mark E. Smith John B. Taylor (Chairperson) Nominating Determine such standards or qualifications for nominees to Thomas A. Larsen 0 Committee serve as Trustees, if any, as the Committee deems Ann Mather appropriate; identify possible candidates to become members Robert B. Morris of the Board in the event that a Trustee position is vacated Gary Roughead or created and/or in contemplation of a shareholders’ Mark E. Smith meeting at which one or more Trustees is to be elected; and consider and evaluate such candidates and recommend John B. Taylor Trustee nominees for the Board’s approval. (Chairperson) Valuation Review and approve the Funds’ valuation policies; provide Thomas A. Larsen 1 Committee oversight for pricing of securities and calculation of net asset Ann Mather value; review “fair valuations” and determinations of Robert B. Morris liquidity of the Funds’ securities. (Chairperson) Gary Roughead Mark E. Smith John B. Taylor

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.

Aggregate Dollar Range of Equity Securities in all Registered Name of Dollar Range of Equity Securities in the Funds Investment Companies Overseen Trustee by Trustee in Family of Investment Companies Interested Trustees Charles F. Pohl Dodge & Cox Stock Fund Over $100,000 Over $100,000 Dodge & Cox Global Stock Fund Over $100,000 Dodge & Cox International Stock Fund Over $100,000 Dodge & Cox Balanced Fund Over $100,000 Dodge & Cox Income Fund Over $100,000 Dodge & Cox Global Bond Fund Over $100,000 Dana M. Emery Dodge & Cox Stock Fund Over $100,000 Over $100,000 Dodge & Cox Global Stock Fund Over $100,000 Dodge & Cox International Stock Fund Over $100,000 Dodge & Cox Balanced Fund Over $100,000 Dodge & Cox Income Fund Over $100,000 Dodge & Cox Global Bond Fund Over $100,000 Independent Trustees Thomas A. Larsen Dodge & Cox Stock Fund Over $100,000 Over $100,000 Dodge & Cox Global Stock Fund Over $100,000 Dodge & Cox International Stock Fund Over $100,000 Dodge & Cox Balanced Fund Over $100,000 Dodge & Cox Income Fund $50,001- $100,000 Dodge & Cox Global Bond Fund $1-$10,000

Ann Mather Dodge & Cox Stock Fund Over $100,000 Over $100,000 Dodge & Cox Global Stock Fund Over $100,000 Dodge & Cox International Stock Fund $10,001-$50,000 Dodge & Cox Balanced Fund $50,001-$100,000 Dodge & Cox Income Fund none Dodge & Cox Global Bond Fund none Robert B. Morris Dodge & Cox Stock Fund Over $100,000 Over $100,000 Dodge & Cox Global Stock Fund Over $100,000 Dodge & Cox International Stock Fund Over $100,000 Dodge & Cox Balanced Fund Over $100,000 Dodge & Cox Income Fund none Dodge & Cox Global Bond Fund none Gary Roughead Dodge & Cox Stock Fund $10,001-$50,000 Over $100,000 Dodge & Cox Global Stock Fund $10,001-$50,000 Dodge & Cox International Stock Fund $10,001-$50,000 Dodge & Cox Balanced Fund $10,001-$50,000 Dodge & Cox Income Fund $10,001-$50,000 Dodge & Cox Global Bond Fund none

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

C ODE OF ETHICS 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.

PROXY VOTING POLICIES AND PROCEDURES 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.

PRINCIPAL HOLDERS OF SECURITIES 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.

INVESTMENT MANAGER 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 35

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.

INVESTMENT COMMITTEE MEMBERS 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 36

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 Other Accounts Companies (Other Dodge & Other Pooled (Dodge & Cox Separately Cox Funds) Investment Vehicles 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 Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 71,297,932,906 434,799,874 0 Diana S. Strandberg Number of Other Accounts Managed 4 4 0 Total Assets in Other Accounts Managed 77,073,373,440 2,423,238,369 0 David C. Hoeft Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 19,977,107,725 2,319,188,926 0 Wendell W. Birkhofer Number of Other Accounts Managed 1 1 66 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 Total Assets in Other Accounts Managed 19,977,107,725 2,319,188,926 0 Philippe Barret, Jr. Number of Other Accounts Managed 1 1 0 Total Assets in Other Accounts Managed 14,269,329,043 367,188,564 0 Kathleen G. McCarthy* Number of Other Accounts Managed 1 1 0 Total Assets in Other Accounts Managed 14,269,329,043 367,188,564 0 * Ms. McCarthy was appointed to the IPC effective January 15, 2016.

Dodge & Cox Global Stock Fund (number of accounts and total assets is as of December 31, 2015)

Registered Investment Other Pooled Other Accounts Companies (Other Dodge Investment (Dodge & Cox Separately & Cox Funds) Vehicles Managed Accounts) GSIPC Members Charles F. Pohl Number of Other Accounts Managed 4 3 0 Total Assets in Other Accounts Managed 169,268,310,172 2,386,800,236 0 Diana S. Strandberg Number of Other Accounts Managed 4 4 0 Total Assets in Other Accounts Managed 126,210,719,265 2,423,238,369 0 David C. Hoeft* Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 69,114,453,550 2,319,188,926 0 Roger G. Kuo Number of Other Accounts Managed 1 2 0 Total Assets in Other Accounts Managed 57,028,603,863 2,019,611,672 0 Steven C. Voorhis Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 69,114,453,550 2,319,188,926 0 Karol Marcin Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 1,952,000,362 0 Lily S. Beischer Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 1,952,000,362 0 Raymond J. Mertens Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 1,952,000,362 0 * 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) Registered Investment Other Accounts Companies (Other Dodge Other Pooled (Dodge & Cox Separately & Cox Funds) Investment Vehicles Managed Accounts) IIPC Members Charles F. Pohl Number of Other Accounts Managed 4 3 0 Total Assets in Other Accounts Managed 117,947,484,991 2,386,800,236 0 Diana S. Strandberg Number of Other Accounts Managed 4 4 0 Total Assets in Other Accounts Managed 74,889,894,084 2,423,238,369 0 C. Bryan Cameron Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 69,114,453,550 434,799,874 0

Registered Investment Other Accounts Companies (Other Dodge Other Pooled (Dodge & Cox Separately & Cox Funds) Investment Vehicles Managed Accounts) Roger G. Kuo Number of Other Accounts Managed 1 2 0 Total Assets in Other Accounts Managed 5,707,778,682 2,019,611,672 0 Mario C. DiPrisco Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 67,611,310 0 Keiko Horkan Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 67,611,310 0 Richard T. Callister Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 67,611,310 0 Englebert T. Bangayan Number of Other Accounts Managed 0 1 0 Total Assets in Other Accounts Managed 0 67,611,310 0

Dodge & Cox Balanced Fund (number of accounts and total assets is as of December 31, 2015) Registered Investment Other Accounts Companies (Other Dodge Other Pooled (Dodge & Cox Separately & Cox Funds) Investment Vehicles Managed Accounts) IPC and FIIPC Members Dana M. Emery Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 43,192,914,611 36,438,133 0 Charles F. Pohl Number of Other Accounts Managed 4 3 0 Total Assets in Other Accounts Managed 160,706,759,811 2,386,800,236 0 C. Bryan Cameron Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 111,873,728,370 434,799,874 0 Diana S. Strandberg Number of Other Accounts Managed 4 4 0 Total Assets in Other Accounts Managed 117,649,168,904 2,423,238,369 0 Thomas S. Dugan Number of Other Accounts Managed 2 1 11 Total Assets in Other Accounts Managed 43,192,914,611 36,438,133 7,156,447,587 David C. Hoeft Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 60,552,903,189 2,319,188,926 0 Wendell W. Birkhofer Number of Other Accounts Managed 1 1 66 Total Assets in Other Accounts Managed 54,845,124,507 367,188,564 7,572,186,612

Registered Investment Other Accounts Companies (Other Dodge Other Pooled (Dodge & Cox Separately & Cox Funds) Investment Vehicles Managed Accounts) Steven C. Voorhis Number of Other Accounts Managed 2 2 0 Total Assets in Other Accounts Managed 60,552,903,189 2,319,188,926 0 Larissa K. Roesch Number of Other Accounts Managed 1 0 31 Total Assets in Other Accounts Managed 43,125,252,759 0 12,062,508,894 James H. Dignan Number of Other Accounts Managed 2 1 8 Total Assets in Other Accounts Managed 43,192,914,611 36,438,133 2,783,085,661 Anthony J. Brekke Number of Other Accounts Managed 1 0 5 Total Assets in Other Accounts Managed 43,125,252,759 0 1,394,648,643 Adam S. Rubinson Number of Other Accounts Managed 2 1 5 Total Assets in Other Accounts Managed 43,192,914,611 36,438,133 1,687,172,137 Lucinda I. Johns Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 43,192,914,611 36,438,133 0 Philippe Barret, Jr. Number of Other Accounts Managed 1 1 0 Total Assets in Other Accounts Managed 54,845,124,507 367,188,564 0 Kathleen G. McCarthy* Number of Other Accounts Managed 1 1 0 Total Assets in Other Accounts Managed 54,845,124,507 367,188,564 0 * 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) Registered Investment Other Pooled Other Accounts Companies (Other Dodge Investment (Dodge & Cox Separately & Cox Funds) Vehicles Managed Accounts) FIIPC Members Dana M. Emery Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 14,336,990,895 36,438,133 0 Charles F. Pohl Number of Other Accounts Managed 4 3 0 Total Assets in Other Accounts Managed 131,850,836,095 2,386,800,236 0 Thomas S. Dugan Number of Other Accounts Managed 2 1 11 Total Assets in Other Accounts Managed 14,336,990,895 36,438,133 7,156,447,587 Larissa K. Roesch Number of Other Accounts Managed 1 0 31 Total Assets in Other Accounts Managed 14,269,329,043 0 12,062,508,894

Registered Investment Other Pooled Other Accounts Companies (Other Dodge Investment (Dodge & Cox Separately & Cox Funds) Vehicles Managed Accounts) James H. Dignan Number of Other Accounts Managed 2 1 8 Total Assets in Other Accounts Managed 14,336,990,894 36,438,133 2,783,085,661 Anthony J. Brekke Number of Other Accounts Managed 1 0 5 Total Assets in Other Accounts Managed 14,269,329,043 0 1,394,648,643 Adam S. Rubinson Number of Other Accounts Managed 2 1 5 Total Assets in Other Accounts Managed 14,336,990,895 36,438,133 1,687,172,137 Lucinda I. Johns Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 14,336,990,895 36,438,133 0

Dodge & Cox Global Bond Fund (number of accounts and total assets is as of December 31, 2015) Registered Investment Other Pooled Other Accounts Companies (Other Dodge Investment (Dodge & Cox Separately & Cox Funds) Vehicles Managed Accounts) GBIPC Members Dana M. Emery Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 57,394,581,802 36,438,133 0 Diana S. Strandberg Number of Other Accounts Managed 4 4 0 Total Assets in Other Accounts Managed 131,850,836,095 2,423,238,369 0 Thomas S. Dugan Number of Other Accounts Managed 2 1 11 Total Assets in Other Accounts Managed 57,394,581,802 36,438,133 7,156,447,587 James H. Dignan Number of Other Accounts Managed 2 1 8 Total Assets in Other Accounts Managed 57,394,581,802 36,438,133 2,783,085,661 Adam S. Rubinson Number of Other Accounts Managed 2 1 5 Total Assets in Other Accounts Managed 57,394,581,802 36,438,133 1,687,172,137 Lucinda I. Johns Number of Other Accounts Managed 2 1 0 Total Assets in Other Accounts Managed 57,394,581,802 36,438,133 0

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 41

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

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.

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 Dodge & Cox Stock Fund 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 Dodge & Cox Balanced Fund 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 44

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

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.

OTHER SERVICE PROVIDERS 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.

BROKERAGE ALLOCATION AND OTHER PRACTICES 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. 46

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-

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.

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

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.

CAPITAL STOCK 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.

PURCHASE, REDEMPTION, AND PRICING OF SHARES The procedures for purchasing and redeeming shares of a Fund are described in the Funds’ Prospectus, which is incorporated herein by reference.

NET ASSET VALUE PER SHARE 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.

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.

PURCHASES IN- KIND 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.

REDEMPTIONS IN KIND 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.

TAXATION OF THE FUNDS 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.

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.

TAXES ON FUND REDEMPTIONS 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

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 AXES ON FUND DISTRIBUTIONS 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.

PASS- THROUGH OF FOREIGN TAX PAYMENTS (DODGE & COX GLOBAL STOCK FUND AND DODGE & COX INTERNATIONAL STOCK FUND) 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

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.

EFFECT OF FOREIGN CURRENCY GAINS AND LOSSES ON DISTRIBUTIONS (DODGE & COX GLOBAL STOCK FUND , DODGE & COX INTERNATIONAL STOCK FUND, DODGE & COX GLOBAL BOND FUND) 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.

FEDERAL TAX TREATMENT OF FOREIGN CURRENCY TRANSACTIONS AND FUTURES 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.

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.

TRANSACTIONS IN SWAPS AND OTHER DERIVATIVES 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.

PFIC SECURITIES 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

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.

CONSTRUCTIVE SALES 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.

MARKET DISCOUNT 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.”

ORIGINAL ISSUE DISCOUNT 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).

TAX EFFECT OF BUYING SHARES BEFORE A CAPITAL GAIN OR INCOME DISTRIBUTION 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.

BACKUP WITHHOLDING ON DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS, AND REDEMPTIONS 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.

OTHER TAXATION 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.

PRINCIPAL UNDERWRITER The Trust distributes the shares of the Funds and does not have a principal underwriter.

FINANCIAL STATEMENTS 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).

A PPENDICES

APPENDIX A: RATINGS 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

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. 59

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;

. 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.

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.

APPENDIX B: PROXY VOTING POLICIES AND PROCEDURES

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.).

GENERAL POLICY

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.

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. 64

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.

C. Share Repurchase Authorization.

D. Cancel Treasury Shares (in connection with a Share Repurchase Program).

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.

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.

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.

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

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.

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. 71

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.

CONFLICTS OF INTEREST

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

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.

HOW TO OBTAIN DODGE & COX FUNDS PROXY VOTING RECORD

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

73 D ODGE &COX F UNDS®

May 1, 2015

Link to Statement of Additional Information

Prospectus

Stock Fund (DODGX) ESTABLISHED 1965

Global Stock Fund (DODWX) ESTABLISHED 2008

International Stock Fund (DODFX) ESTABLISHED 2001 (Closed to New Investors)

Balanced Fund (DODBX) ESTABLISHED 1931

Income Fund (DODIX) ESTABLISHED 1989

Global Bond Fund (DODLX) ESTABLISHED 2014

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.

05/15 PR Printed on recycled paper TABLE OF CONTENTS

Fund Summaries 1 Dodge & Cox Stock Fund 4 Dodge & Cox Global Stock Fund 7 Dodge & Cox International Stock Fund 10 Dodge & Cox Balanced Fund 14 Dodge & Cox Income Fund 17 Dodge & Cox Global Bond Fund 21 Other Important Information About Fund Shares 22 Investment Objectives, Principal Investment Strategies, Related Risks, and Disclosure of Portfolio Holdings 26 Investment Restrictions Investment Risks 26 Disclosure of Portfolio Holdings 27 Additional Information on Investments 35 How to Purchase Shares 38 How to Redeem or Exchange Shares 40 Transactions Through Financial Intermediaries 41 Excessive Trading Limitations 42 Other Transaction Information 42 Escheatment of Abandoned Property 43 Pricing of Shares 44 Income Dividends and Capital Gain Distributions 44 Federal Income Taxes 45 Fund Organization and Management 46 Investment Committees 51 Investment Information and Shareholder Services 52 Financial Highlights 54 Trustees

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve, or any other government agency, and are subject to investment risks, including possible loss of your investment. DODGE & COX STOCK FUND PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in a diversified portfolio of equity INVESTMENT OBJECTIVES securities. Under normal circumstances, the Fund will invest at The Fund seeks long-term growth of principal and income. A least 80% of its total assets in equity securities, including common secondary objective is to achieve a reasonable current income. stocks, depositary receipts evidencing ownership of common stocks, preferred stocks, securities convertible into common stocks, FEES AND EXPENSES and securities that carry the right to buy common stocks. The This table describes the fees and expenses that you may pay if you Fund may invest up to 20% of its total assets in U.S. dollar- buy and hold shares of the Fund. denominated securities of non-U.S. issuers traded in the United States that are not in the S&P 500 Index. The Fund may enter SHAREHOLDER FEES into forward currency contracts or currency futures contracts to (fees paid directly from your investment) hedge foreign currency exposure. Sales charge (load) imposed on purchases None The Fund typically invests in medium-to-large well Deferred sales charge (load) None established companies based on standards of the applicable market. Sales charge (load) imposed on reinvested distributions None In selecting investments, the Fund typically invests in companies Redemption fee None that, in Dodge & Cox’s opinion, appear to be temporarily Exchange fee None undervalued by the stock market but have a favorable outlook for long-term growth. The Fund focuses on the underlying financial ANNUAL FUND OPERATING EXPENSES condition and prospects of individual companies, including future (expenses that you pay each year as a percentage of the value of your earnings, cash flow, and dividends. Various other factors, including investment) financial strength, economic condition, competitive advantage, Management fees .50% quality of the business franchise, and the reputation, experience, Distribution and/or service (12b-1) fees None and competence of a company’s management are weighed against Other expenses (transfer agent, custody, accounting, valuation in selecting individual securities. The Fund also legal, etc.) .02% considers the economic and political stability of the country where Total Annual Fund Operating Expenses .52% the issuer is located and the protections provided to shareholders.

Example: This example is intended to help you compare the cost PRINCIPAL RISKS OF INVESTING of investing in the Fund with the cost of investing in other You could lose money by investing in the Fund, and the Fund mutual funds. could underperform other investments. You should expect the The example assumes that: Fund’s share price and total return to fluctuate within a wide ▪ You invest $10,000 in the Fund for the time periods indicated range. The Fund’s performance could be hurt by: and then redeem all of your shares at the end of those ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth time periods; of a company or security may be incorrect or the market may ▪ Your investment has a 5% return each year; and continue to undervalue the company or security. Dodge & Cox ▪ The Fund’s operating expenses remain the same. may not make timely purchases or sales of securities for the Fund. Although your actual costs may be higher or lower, under ▪ Equity risk. Equity securities generally have greater price these assumptions your costs would be: volatility than debt securities. Equity securities may decline in value because of changes in the actual or perceived financial 1 Year 3 Years 5 Years 10 Years condition of their issuers or other events affecting their issuers. $53 $167 $291 $653 ▪ Market risk. Prices may increase or decrease, sometimes suddenly and unpredictably, due to general market conditions. PORTFOLIO TURNOVER ▪ Liquidity risk. The Fund may not be able to purchase or sell a The Fund incurs transaction costs, such as commissions, when security in a timely manner or at desired prices or achieve its Dodge & Cox buys and sells securities (or “turns over” the desired weighting in a security. portfolio). A higher portfolio turnover rate may indicate higher ▪ Derivatives risk. Investing with derivatives, such as forward transaction costs and may result in higher taxes when Fund shares currency contracts and equity index futures, involves risks are held in a taxable account. These transaction costs, which are additional to those associated with investing directly in not reflected in annual Fund operating expenses or in the example, securities. The value of a derivative may not correlate to the affect the Fund’s performance. During the most recent fiscal year, value of the underlying instrument to the extent expected. the Fund’s portfolio turnover rate was 17% of the average value of Derivative transactions may be volatile, and can create leverage, its portfolio. which could cause the Fund to lose more than the amount of assets initially contributed to the transaction, if any. The Fund may not be able to close a derivatives position at an advantageous time or price. For over-the-counter derivatives

D ODGE &COX F UNDS ▪ PAGE 1 transactions, the counterparty may be unable or unwilling to AVERAGE ANNUAL TOTAL RETURNS make required payments and deliveries, especially during times FOR THE PERIODS ENDED 12/31/2014 of financial market distress. ▪ Non-U.S. investment risk. Securities of non-U.S. issuers Dodge & Cox Stock Fund 1 Year 5 Years 10 Years (including ADRs) may be less liquid, more volatile, and harder Return before taxes 10.43% 15.56% 7.13% to value than U.S. securities. Non-U.S. issuers may be subject to Return after taxes on distributions 9.63 15.16 6.51 political, economic, or market instability, or unfavorable Return after taxes on distributions and government action in their local jurisdictions. There may be less sale of Fund shares 6.51 12.56 5.79 information publicly available about non-U.S. issuers and their S&P 500 Index (reflects no deduction for securities and those issuers may be subject to lower levels of expenses or taxes) 13.69 15.46 7.68 government regulation and oversight. These risks may be higher when investing in emerging market issuers. Certain of these After-tax returns are calculated using the historical highest risks may also apply to securities of U.S. issuers with significant individual federal marginal income tax rates, but do not reflect the non-U.S. operations. impact of state or local taxes. Actual after-tax returns may differ ▪ Non-U.S. currency risk. Foreign currencies may decline relative depending on your individual circumstances. After-tax return to the U.S. dollar, which reduces the unhedged value of figures do not apply to you if you hold your Fund shares through a securities denominated in or otherwise exposed to those tax-deferred arrangement such as a 401(k) plan or an individual currencies. Dodge & Cox may not hedge or may not be retirement account. successful in hedging the Fund’s currency exposure. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

PERFORMANCE INFORMATION The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows changes in the Fund’s returns from year to year. The table shows how the Fund’s average annual total returns for one, five, and ten years compare to those of a broad measure of market performance. The Fund’s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Visit the Fund’s website at dodgeandcox.com or call 800-621-3979 for current performance figures.

DODGE & COX STOCK FUND Annual total returns 2005-2014 (%) 40.55 31.27 22.01 18.54 13.48 9.36 10.43 0.14

−4.08

−43.31

05 06 07 08 09 10 11 12 13 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)

PAGE 2 ▪ D ODGE &COX F UNDS 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:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox John A. Gunn Portfolio Manager 38/43 Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 23/31 Fixed Income Investment Policy Committee (FIIPC), Global Stock Investment Policy Committee (GSIPC), and International Investment Policy Committee (IIPC) 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, 10/27 and member of GSIPC, IIPC, and Global Bond Investment Policy Committee David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, and 13/22 Investment Analyst 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 to the “Summary of Other Important Information About Fund Shares” section on page 21 of this prospectus.

D ODGE &COX F UNDS ▪ PAGE 3 DODGE & COX GLOBAL STOCK FUND countries, including emerging market countries. The Fund is not required to allocate its investments in set percentages in particular INVESTMENT OBJECTIVE countries and may invest in emerging markets without limit. The Fund seeks long-term growth of principal and income. Under normal circumstances, the Fund will invest at least 40% of its total assets in securities of non-U.S. companies and at least 80% FEES AND EXPENSES of its total assets in equity securities, including common stocks, This table describes the fees and expenses that you may pay if you depositary receipts evidencing ownership of common stocks, buy and hold shares of the Fund. preferred stocks, securities convertible into common stocks, and securities that carry the right to buy common stocks. The Fund SHAREHOLDER FEES may enter into forward currency contracts or currency futures (fees paid directly from your investment) contracts to hedge foreign currency exposure. Sales charge (load) imposed on purchases None The Fund typically invests in medium-to-large well established Deferred sales charge (load) None companies based on standards of the applicable market. In selecting Sales charge (load) imposed on reinvested distributions None investments, the Fund typically invests in companies that, in Redemption fee None Dodge & Cox’s opinion, appear to be temporarily undervalued by Exchange fee None the stock market but have a favorable outlook for long-term growth. The Fund also focuses on the underlying financial ANNUAL FUND OPERATING EXPENSES condition and prospects of individual companies, including future (expenses that you pay each year as a percentage of the value of your earnings, cash flow, and dividends. Various other factors, including investment) financial strength, economic condition, competitive advantage, Management fees .60% quality of the business franchise, and the reputation, experience, Distribution and/or service (12b-1) fees None and competence of a company’s management are weighed against Other expenses (transfer agent, custody, accounting, valuation in selecting individual securities. The Fund also considers legal, etc.) .05% the economic and political stability of the country where the issuer Total Annual Fund Operating Expenses .65% is located and the protections provided to shareholders.

Example: This example is intended to help you compare the cost PRINCIPAL RISKS OF INVESTING of investing in the Fund with the cost of investing in other You could lose money by investing in the Fund, and the Fund mutual funds. could underperform other investments. You should expect the The example assumes that: Fund’s share price and total return to fluctuate within a wide ▪ You invest $10,000 in the Fund for the time periods indicated and range. The Fund’s performance could be hurt by: then redeem all of your shares at the end of those time periods; ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth ▪ Your investment has a 5% return each year; and of a company or security may be incorrect or the market may ▪ The Fund’s operating expenses remain the same. continue to undervalue the company or security. Dodge & Cox Although your actual costs may be higher or lower, under may not make timely purchases or sales of securities for the Fund. these assumptions your costs would be: ▪ Equity risk. Equity securities generally have greater price volatility than debt securities. Equity securities may decline in 1 Year 3 Years 5 Years 10 Years value because of changes in the actual or perceived financial $66 $208 $362 $810 condition of their issuers or other events affecting their issuers. ▪ Market risk. Prices may increase or decrease, sometimes suddenly PORTFOLIO TURNOVER and unpredictably, due to general market conditions. The Fund incurs transaction costs, such as commissions, when ▪ Liquidity risk. The Fund may not be able to purchase or sell a Dodge & Cox buys and sells securities (or “turns over” the security in a timely manner or at desired prices or achieve its portfolio). A higher portfolio turnover rate may indicate higher desired weighting in a security. transaction costs and may result in higher taxes when Fund shares ▪ Non-U.S. investment risk. Securities of non-U.S. issuers are held in a taxable account. These transaction costs, which are (including ADRs) may be less liquid, more volatile, and harder not reflected in annual Fund operating expenses or in the example, to value than U.S. securities. Non-U.S. issuers may be subject to affect the Fund’s performance. During the most recent fiscal year, political, economic, or market instability or unfavorable the Fund’s portfolio turnover rate was 17% of the average value of government action in their local jurisdictions. There may be less its portfolio. information publicly available about non-U.S. issuers and their securities, and those issuers may be subject to lower levels of PRINCIPAL INVESTMENT STRATEGIES government regulation and oversight. Non-U.S. stock markets The Fund invests primarily in a diversified portfolio of equity may decline due to conditions specific to an individual country, securities issued by companies from at least three different including unfavorable economic conditions relative to the

PAGE 4 ▪ D ODGE &COX F UNDS United States. There may be increased risk of delayed DODGE & COX GLOBAL STOCK FUND transaction settlement or security certificate loss. These risks Annual total returns 2009-2014 (%) may be higher when investing in emerging market issuers. Certain of these risks may also apply to securities of U.S. issuers 49.18 with significant non-U.S. operations. ▪ Non-U.S. currency risk. Foreign currencies may decline relative 33.17 to the U.S. dollar, which reduces the unhedged value of securities denominated in or otherwise exposed to those 21.11 currencies. Dodge & Cox may not hedge or may not be 13.51 successful in hedging the Fund’s currency exposure. 6.95 ▪ Emerging market risk. Emerging market securities may present issuer, market, currency, liquidity, volatility, valuation, legal,

political, and other risks different from, and potentially greater −11.39 than, the risks of investing in securities of issuers in more 09 10 11 12 13 14 developed markets. ▪ Derivatives risk. Investing with derivatives, such as forward currency contracts and equity index futures, involves risks Highest/Lowest quarterly results during the time period were: additional to those associated with investing directly in Highest: 33.48% (quarter ended June 30, 2009) Lowest: –20.56% (quarter ended September 30, 2011) securities. The value of a derivative may not correlate to the value of the underlying instrument to the extent expected. AVERAGE ANNUAL TOTAL RETURNS Derivative transactions may be volatile, and can create leverage, FOR THE PERIODS ENDED 12/31/2014 which could cause the Fund to lose more than the amount of assets initially contributed to the transaction, if any. The Fund Since may not be able to close a derivatives position at an Dodge & Cox Inception Global Stock Fund 1 Year 5 Years (5/1/2008) advantageous time or price. For over-the-counter derivatives transactions, the counterparty may be unable or unwilling to Return before taxes 6.95% 11.65% 5.09% make required payments and deliveries, especially during times Return after taxes on distributions 6.11 11.12 4.70 of financial market distress. Return after taxes on distributions and An investment in the Fund is not a deposit of a bank and is sale of Fund shares 4.79 9.43 4.10 not insured or guaranteed by the Federal Deposit Insurance MSCI World Index (Net)* (reflects no Corporation or any other government agency. 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 double PERFORMANCE INFORMATION taxation treaties. Withholding rates applicable to the Fund may be lower. The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows After-tax returns are calculated using the historical highest the Fund’s returns from year to year. The table shows how the Fund’s individual federal marginal income tax rates, but do not reflect the average annual total returns for one year, five years, and since impact of state or local taxes. Actual after-tax returns may differ inception compare to that of a broad measure of market performance. depending on your individual circumstances. After-tax return The Fund’s past performance (before and after taxes) does not figures do not apply to you if you hold your Fund shares through a necessarily indicate how the Fund will perform in the future. Visit tax-deferred arrangement such as a 401(k) plan or an individual the Fund’s website at dodgeandcox.com or call 800-621-3979 for retirement account. current performance figures.

D ODGE &COX F UNDS ▪ PAGE 5 FUND MANAGEMENT Dodge & Cox serves as investment manager to the Global Stock Fund. The Fund is managed by Dodge & Cox’s Global Stock Investment Policy Committee (GSIPC), which consists of the following seven members:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 7/31 Investment Policy Committee (IPC), International Investment Policy Committee (IIPC), and Fixed Income Investment Policy Committee (FIIPC) Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst, 7/27 and member of IPC, IIPC, and Global Bond Investment Policy Committee 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

PAGE 6 ▪ D ODGE &COX F UNDS DODGE & COX INTERNATIONAL PRINCIPAL INVESTMENT STRATEGIES STOCK FUND The Fund invests primarily in a diversified portfolio of equity (Closed to new investors. See “How to Purchase Shares — securities issued by non-U.S. companies from at least three different Information Regarding Purchases of the Dodge & Cox countries, including emerging market countries. The Fund is not International Stock Fund” on page 37 for more information.) required to allocate its investments in set percentages in particular countries and may invest in emerging markets without limit. Under INVESTMENT OBJECTIVE normal circumstances, the Fund will invest at least 80% of its total The Fund seeks long-term growth of principal and income. assets in equity securities of non-U.S. companies, including common stocks, depositary receipts evidencing ownership of FEES AND EXPENSES common stocks, preferred stocks, securities convertible into This table describes the fees and expenses that you may pay if you common stocks, and securities that carry the right to buy common buy and hold shares of the Fund. stocks. The Fund may enter into forward currency contracts or currency futures contracts to hedge foreign currency exposure. SHAREHOLDER FEES The Fund typically invests in medium-to-large well established (fees paid directly from your investment) companies based on standards of the applicable market. In selecting Sales charge (load) imposed on purchases None investments, the Fund typically invests in companies that, in Deferred sales charge (load) None Dodge & Cox’s opinion, appear to be temporarily undervalued by Sales charge (load) imposed on reinvested distributions None the stock market but have a favorable outlook for long-term Redemption fee None growth. The Fund also focuses on the underlying financial Exchange fee None condition and prospects of individual companies, including future earnings, cash flow, and dividends. Various other factors, including ANNUAL FUND OPERATING EXPENSES financial strength, economic condition, competitive advantage, (expenses that you pay each year as a percentage of the value of your quality of the business franchise, and the reputation, experience, investment) and competence of a company’s management are weighed against Management fees .60% valuation in selecting individual securities. The Fund also considers Distribution and/or service (12b-1) fees None the economic and political stability of the country where the issuer Other expenses (transfer agent, custody, accounting, is located and the protections provided to shareholders. legal, etc.) .04%

Total Annual Fund Operating Expenses .64% PRINCIPAL RISKS OF INVESTING You could lose money by investing in the Fund, and the Fund Example: This example is intended to help you compare the cost could underperform other investments. You should expect the of investing in the Fund with the cost of investing in other Fund’s share price and total return to fluctuate within a wide mutual funds. range. The Fund’s performance could be hurt by: The example assumes that: ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth ▪ You invest $10,000 in the Fund for the time periods indicated of a company or security may be incorrect or the market may and then redeem all of your shares at the end of those continue to undervalue the company or security. Dodge & Cox time periods; may not make timely purchases or sales of securities for the Fund. ▪ Your investment has a 5% return each year; and ▪ Equity risk. Equity securities generally have greater price ▪ The Fund’s operating expenses remain the same. volatility than debt securities. Equity securities may decline in Although your actual costs may be higher or lower, under value because of changes in the actual or perceived financial these assumptions your costs would be: condition of their issuers or other events affecting their issuers. ▪ Market risk. Prices may increase or decrease, sometimes suddenly 1 Year 3 Years 5 Years 10 Years and unpredictably, due to general market conditions. $65 $205 $357 $798 ▪ Liquidity risk. The Fund may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its PORTFOLIO TURNOVER desired weighting in a security. The Fund incurs transaction costs, such as commissions, when ▪ Non-U.S. currency risk. Foreign currencies may decline relative Dodge & Cox buys and sells securities (or “turns over” the to the U.S. dollar, which reduces the unhedged value of portfolio). A higher portfolio turnover rate may indicate higher securities denominated in or otherwise exposed to those transaction costs and may result in higher taxes when Fund shares currencies. Dodge & Cox may not hedge or may not be are held in a taxable account. These transaction costs, which are successful in hedging the Fund’s currency exposure. not reflected in annual Fund operating expenses or in the example, ▪ Non-U.S. investment risk. Securities of non-U.S. issuers affect the Fund’s performance. During the most recent fiscal year, (including ADRs) may be less liquid, more volatile, and harder the Fund’s portfolio turnover rate was 12% of the average value of to value than U.S. securities. Non-U.S. issuers may be subject to its portfolio. political, economic, or market instability, or unfavorable

D ODGE &COX F UNDS ▪ PAGE 7 government action in their local jurisdictions. There may be less DODGE & COX INTERNATIONAL STOCK FUND information publicly available about non-U.S. issuers and their Annual total returns 2005-2014 (%) securities, and those issuers may be subject to lower levels of government regulation and oversight. Non-U.S. stock markets 47.46 may decline due to conditions specific to an individual country, 28.00 26.31 including unfavorable economic conditions relative to the 21.03 16.74 United States. There may be increased risk of delayed 11.71 13.69 transaction settlement or security certificate loss. These risks 0.07 may be higher when investing in emerging market issuers. Certain of these risks may also apply to securities of U.S. issuers −15.97 with significant non-U.S. operations. ▪ Emerging market risk. Emerging market securities may present issuer, market, currency, liquidity, volatility, valuation, legal, −46.68 political, and other risks different from, and potentially greater 05 06 07 08 09 10 1112 13 14 than, the risks of investing in securities of issuers in more developed markets. ▪ Derivatives risk. Investing with derivatives, such as forward Highest/Lowest quarterly results during the time period were: currency contracts and equity index futures, involves risks Highest: 33.37% (quarter ended June 30, 2009) Lowest: –26.06% (quarter ended December 31, 2008) additional to those associated with investing directly in securities. The value of a derivative may not correlate to the AVERAGE ANNUAL TOTAL RETURNS value of the underlying instrument to the extent expected. FOR THE PERIODS ENDED 12/31/2014 Derivative transactions may be volatile, and can create leverage, which could cause the Fund to lose more than the amount of Dodge & Cox assets initially contributed to the transaction, if any. The Fund International Stock Fund 1 Year 5 Years 10 Years may not be able to close a derivatives position at an Return before taxes 0.07% 7.89% 6.73% advantageous time or price. For over-the-counter derivatives Return after taxes on distributions –0.32 7.67 6.35 transactions, the counterparty may be unable or unwilling to Return after taxes on distributions and make required payments and deliveries, especially during times sale of Fund shares 0.63 6.44 5.68 of financial market distress. MSCI EAFE (Europe, Australasia, Far An investment in the Fund is not a deposit of a bank and is East) Index (Net)* (reflects no deduction not insured or guaranteed by the Federal Deposit Insurance for expenses or taxes) –4.90 5.34 4.43 Corporation or any other government agency. * MSCI Index (Net) returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties. Withholding rates applicable to the Fund may be lower. PERFORMANCE INFORMATION The following bar chart and table are intended to help you After-tax returns are calculated using the historical highest understand the risks of investing in the Fund. The bar chart shows individual federal marginal income tax rates, but do not reflect the changes in the Fund’s returns from year to year. The table shows impact of state or local taxes. Actual after-tax returns may differ how the Fund’s average annual total returns for one, five, and ten depending on your individual circumstances. After-tax return years compare to that of a broad measure of market performance. figures do not apply to you if you hold your Fund shares through a The Fund’s past performance (before and after taxes) does not tax-deferred arrangement such as a 401(k) plan or an individual necessarily indicate how the Fund will perform in the future. Visit retirement account. the Fund’s website at dodgeandcox.com or call 800-621-3979 for current performance figures.

PAGE 8 ▪ D ODGE &COX F UNDS FUND MANAGEMENT Dodge & Cox serves as investment manager to the International Stock Fund. The Fund is managed by Dodge & Cox’s International Investment Policy Committee (IIPC), which consists of the following nine members:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 8/31 Investment Policy Committee (IPC), Global Stock Investment Policy Committee (GSIPC), and Fixed Income Investment Policy Committee (FIIPC) Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst, 14/27 and member of IPC, GSIPC, and Global Bond Investment Policy Committee 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. Vice President, Portfolio Manager, and Investment Analyst */13 Bangayan

* Mr. Bangayan was appointed to the IIPC effective February 2015.

D ODGE &COX F UNDS ▪ PAGE 9 DODGE & COX BALANCED FUND PRINCIPAL INVESTMENT STRATEGIES The Fund invests in a diversified portfolio of equity securities and INVESTMENT OBJECTIVES debt securities. Under normal circumstances no more than 75% The Fund seeks regular income, conservation of principal, and an and no less than 25% of total assets will be invested in equity opportunity for long-term growth of principal and income. securities. The Fund may invest up to 20% of its total assets in U.S. dollar-denominated securities of non-U.S. issuers traded in FEES AND EXPENSES the United States that are not in the S&P 500 Index. This table describes the fees and expenses that you may pay if you Equity securities in which the Fund may invest include buy and hold shares of the Fund. common stocks, depositary receipts evidencing ownership of common stocks, preferred stocks, certain securities convertible into SHAREHOLDER FEES common stocks, and securities that carry the right to buy common (fees paid directly from your investment) stocks. The Fund’s equity investments are typically in medium-to- Sales charge (load) imposed on purchases None large well established companies based on standards of the Deferred sales charge (load) None applicable market. In selecting equity investments, the Fund Sales charge (load) imposed on reinvested distributions None typically invests in companies that, in Dodge & Cox’s opinion, Redemption fee None appear to be temporarily undervalued by the stock market but have Exchange fee None a favorable outlook for long-term growth. The Fund focuses on the underlying financial condition and prospects of individual ANNUAL FUND OPERATING EXPENSES companies, including future earnings, cash flow, and dividends. (expenses that you pay each year as a percentage of the value of your Various other factors, including financial strength, economic investment) condition, competitive advantage, quality of the business Management fees .50% franchise, and the reputation, experience, and competence of a Distribution and/or service (12b-1) fees None company’s management are weighed against valuation in selecting Other expenses (transfer agent, custody, accounting, individual securities. The Fund also considers the economic and legal, etc.) .03% political stability of the country where the issuer is located and the Total Annual Fund Operating Expenses .53% protections provided to shareholders. The Fund may enter into forward currency contracts or currency futures contracts to hedge Example: This example is intended to help you compare the cost foreign currency exposure. of investing in the Fund with the cost of investing in other Debt securities in which the Fund may invest include mutual funds. investment-grade securities such as government and government- The example assumes that: related obligations, mortgage- and asset-backed securities, ▪ You invest $10,000 in the Fund for the time periods indicated and corporate and municipal bonds, and other debt securities and may then redeem all of your shares at the end of those time periods; include fixed and floating rate instruments. Investment-grade debt ▪ Your investment has a 5% return each year; and securities are securities rated Baa3 or higher by Moody’s Investors ▪ The Fund’s operating expenses remain the same. Service (Moody’s), or BBB- or higher by Standard & Poor’s Although your actual costs may be higher or lower, under Ratings Group (S&P) or Fitch Ratings (Fitch), or equivalently these assumptions your costs would be: rated by any nationally recognized statistical rating organization (NRSRO), including U.S. dollar-denominated foreign issues and 1 Year 3 Years 5 Years 10 Years issues of supranational agencies, or unrated securities if deemed to $54 $170 $296 $665 be of investment-grade quality by Dodge & Cox. A maximum of 20% of the debt portion of the Fund may be invested in debt PORTFOLIO TURNOVER obligations rated below investment grade, commonly referred to as The Fund incurs transaction costs, such as commissions, when high-yield or “junk” bonds, if they have a minimum rating of B3 or Dodge & Cox buys and sells securities (or “turns over” the B- by Moody’s, S&P, or Fitch, or are equivalently rated by any portfolio). A higher portfolio turnover rate may indicate higher NRSRO or, if unrated, are deemed to be of similar quality by transaction costs and may result in higher taxes when Fund shares Dodge & Cox. The Fund may also invest in interest rate are held in a taxable account. These transaction costs, which are derivatives such as U.S. Treasury futures and swap agreements for a not reflected in annual Fund operating expenses or in the example, variety of purposes, including, but not limited to, managing the affect the Fund’s performance. During the most recent fiscal year, Fund’s duration or adjusting the Fund’s exposure to debt securities the Fund’s portfolio turnover rate was 23% of the average value of with different maturities. its portfolio. The proportions held in various debt securities may be revised in light of Dodge & Cox’s appraisal of the economy, the relative yields of securities in the various market sectors, the investment prospects for issuers, and other factors. In selecting debt securities, Dodge & Cox considers many factors, including yield, credit

PAGE 10 ▪ D ODGE &COX F UNDS ratings, liquidity, call risk, duration, structure, and capital derivatives position at an advantageous time or price. For over- appreciation potential. the-counter derivatives transactions, the counterparty may be unable or unwilling to make required payments and deliveries, PRINCIPAL RISKS OF INVESTING especially during times of financial market distress. You could lose money by investing in the Fund, and the Fund ▪ Mortgage- and asset-backed securities risk. Mortgage-related could underperform other investments. You should expect the securities permit early repayment of principal based on Fund’s share price and total return to fluctuate within a wide prepayment of the underlying assets; changes in the rate of range. The Fund’s performance could be hurt by: repayment affect the price and volatility of an investment. If ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth prepayments occur faster than expected, the Fund receives lower of a company or security may be incorrect or the market may interest payments than it expects. If prepayments occur slower continue to undervalue the company or security. Dodge & Cox than expected, it delays the return of principal to the Fund. may not make timely purchases or sales of securities for the Fund. Securities issued by certain U.S. government sponsored entities ▪ Asset allocation risk. The assumptions and theses on which (GSEs) are not issued or guaranteed by the U.S. Treasury; there Dodge & Cox bases its allocation of assets may be wrong. The is no assurance the U.S. government will provide support in the Fund’s balance between equity and debt securities limits its event a GSE issuer cannot meet its obligations. potential for capital appreciation relative to an all-stock fund ▪ Non-U.S. investment risk. Securities of non-U.S. issuers and contributes to greater volatility relative to an all-bond fund. (including ADRs) may be less liquid, more volatile, and harder ▪ Equity risk. Equity securities generally have greater price to value than U.S. securities. Non-U.S. issuers may be subject to volatility than debt securities. Equity securities may decline in political, economic, or market instability or unfavorable value because of changes in the actual or perceived financial government action in their local jurisdictions. There may be less condition of their issuers or other events affecting their issuers. information publicly available about non-U.S. issuers and their ▪ Market risk. Prices may increase or decrease, sometimes suddenly securities, and those issuers may be subject to lower levels of and unpredictably, due to general market conditions. government regulation and oversight. Non-U.S. markets and ▪ Interest rate risk. Debt security prices may decline due to rising securities may decline due to conditions specific to an individual interest rates. The price of debt securities with longer maturities country, including unfavorable economic conditions relative to is typically affected more by rising interest rates than the price of the United States. There may be increased risk of delayed obligations with shorter maturities. transaction settlement or security certificate loss. These risks ▪ Credit risk. An issuer or guarantor of a debt security may be may be higher when investing in emerging market issuers. unable or unwilling to make scheduled payments of interest and Certain of these risks may also apply to securities of U.S. issuers principal. Actual or perceived deterioration in an issuer’s or with significant non-U.S. operations. guarantor’s financial condition may affect a security’s value. ▪ Non-U.S. currency risk. Foreign currencies may decline relative ▪ Below investment-grade securities risk. Debt securities rated below to the U.S. dollar, which reduces the unhedged value of investment-grade, also known as “high-yield” or “junk” securities denominated in or otherwise exposed to those securities generally have greater credit risk, more price volatility, currencies. Dodge & Cox may not hedge or may not be and less liquidity than investment-grade securities. successful in hedging the Fund’s currency exposure. ▪ Call risk. If interest rates fall, issuers of callable bonds may repay ▪ Sovereign debt risk. An issuer of sovereign debt or the securities with higher interest rates before maturity. This could governmental authorities that control the repayment of the debt cause the Fund to lose potential price appreciation and reinvest may be unable or unwilling to repay principal or interest when the proceeds in securities with lower interest rates. due. In the event of a default by a governmental entity on a ▪ Liquidity risk. The Fund may not be able to purchase or sell a sovereign debt obligation, there may be few or no effective legal security in a timely manner or at desired prices or achieve its remedies for collecting on such debt. desired weighting in a security. Liquidity risk may result from An investment in the Fund is not a deposit of a bank and is the lack of an active market or a reduced number and capacity not insured or guaranteed by the Federal Deposit Insurance of traditional market participants to make a market in fixed Corporation or any other government agency. income securities, and may be magnified in a rising interest rate environment or other circumstances that cause increased supply PERFORMANCE INFORMATION in the market due to selling activity. The following bar chart and table are intended to help you ▪ Derivatives risk. Investing with derivatives, such as interest rate understand the risks of investing in the Fund. The bar chart shows swaps and futures, involves risks additional to those associated changes in the Fund’s returns from year to year. The table shows how with investing directly in securities. The value of a derivative the Fund’s average annual total returns for one, five, and ten years may not correlate to the value of the underlying instrument to compare with different broad measures of market performance. the extent expected. Derivative transactions may be volatile, The Fund’s past performance (before and after taxes) does not and can create leverage, which could cause the Fund to lose necessarily indicate how the Fund will perform in the future. Visit more than the amount of assets initially contributed to the the Fund’s website at dodgeandcox.com or call 800-621-3979 for transaction, if any. The Fund may not be able to close a current performance figures.

D ODGE &COX F UNDS ▪ PAGE 11 AVERAGE ANNUAL TOTAL RETURNS DODGE & COX BALANCED FUND Annual total returns 2005-2014 (%) FOR THE PERIODS ENDED 12/31/2014

Dodge & Cox Balanced Fund 1 Year 5 Years 10 Years 28.37 28.37 Return before taxes 8.85% 12.78% 6.75% 18.32 Return after taxes on distributions 7.55 12.07 5.84 13.84 12.23 6.59 8.85 Return after taxes on distributions and 1.74 sale of Fund shares 5.70 10.09 5.25 −1.66 S&P 500 Index (reflects no deduction for expenses or taxes) 13.69 15.46 7.68 Barclays U.S. Aggregate Bond Index −33.57 (BCAG) (reflects no deduction for expenses or taxes) 5.95 4.46 4.71 05 06 07 08 09 10 1112 13 14 Combined Index* (60% S&P 500 & 40% BCAG) (reflects no deduction for Highest/Lowest quarterly results during the time period were: expenses or taxes) 10.62 11.19 6.77 Highest: 18.94% (quarter ended June 30, 2009) * The Combined Index is a composite blend of 60% of the S&P 500 Index Lowest: –16.37% (quarter ended December 31, 2008) and 40% of the Barclays U.S. Aggregate Bond Index and represents a broad measure of the U.S. stock and bond markets, including market sectors in which the fund may invest.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact of state or local taxes. Actual after-tax returns may differ depending on your individual circumstances. After-tax return figures do not apply to you if you hold your Fund shares through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account.

PAGE 12 ▪ D ODGE &COX F UNDS FUND MANAGEMENT Dodge & Cox serves as investment manager to the Balanced Fund. The equity portion of the Balanced Fund is managed by Dodge & Cox’s Investment Policy Committee (IPC), which is also responsible for determining the asset allocation of the Balanced Fund. The debt portion of the Balanced Fund is managed by Dodge & Cox’s Fixed Income Investment Policy Committee (FIIPC). IPC consists of the following nine members:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox John A. Gunn Portfolio Manager 38/43 Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 23/31 FIIPC, Global Stock Investment Policy Committee (GSIPC), and International Investment Policy Committee (IIPC) 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, 10/27 and member of GSIPC, IIPC, and Global Bond Investment Policy Committee (GBIPC) David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, and 13/22 Investment Analyst 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:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and member 29/32 of GBIPC Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 22/31 IPC, GSIPC, and IIPC Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, Investment 21/21 Analyst, and member of GBIPC 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 ODGE &COX F UNDS ▪ PAGE 13 DODGE & COX INCOME FUND PRINCIPAL INVESTMENT STRATEGIES The Fund invests in a diversified portfolio of high-quality bonds INVESTMENT OBJECTIVES and other debt securities. Under normal circumstances, the Fund The Fund seeks a high and stable rate of current income, will invest at least 80% of its total assets in the following consistent with long-term preservation of capital. A secondary categories: (1) debt obligations issued or guaranteed by the U.S. objective is to take advantage of opportunities to realize government, its agencies or government sponsored entities capital appreciation. (GSEs); (2) investment-grade debt securities (securities rated Baa3 or higher by Moody’s Investors Service (Moody’s), or BBB- or FEES AND EXPENSES higher by Standard & Poor’s Ratings Group (S&P) or Fitch This table describes the fees and expenses that you may pay if you Ratings (Fitch), or equivalently rated by any nationally recognized buy and hold shares of the Fund. statistical rating organization (NRSRO)), including U.S. dollar- denominated foreign issues and issues of supranational agencies; SHAREHOLDER FEES (3) unrated securities if deemed to be of investment-grade quality (fees paid directly from your investment) by Dodge & Cox; and (4) bankers’ acceptances, bank certificates Sales charge (load) imposed on purchases None of deposit, repurchase agreements, and commercial paper. The Deferred sales charge (load) None Fund may invest up to 25% of its total assets in U.S. dollar- Sales charge (load) imposed on reinvested distributions None denominated securities of non-U.S. issuers, including emerging Redemption fee None market issuers. Exchange fee None Debt securities in which the Fund may invest include government and government-related obligations, mortgage- and ANNUAL FUND OPERATING EXPENSES asset-backed securities, corporate and municipal bonds, and other (expenses that you pay each year as a percentage of the value of your debt securities, and may include fixed and floating rate investment) instruments. A maximum of 20% of the Fund’s total assets may be Management fees .40% invested in debt obligations rated below investment grade, Distribution and/or service (12b-1) fees None commonly referred to as high-yield or “junk” bonds, if they have a Other expenses (transfer agent, custody, accounting, minimum rating of B3 or B- by Moody’s, S&P, or Fitch, or are legal, etc.) .04% equivalently rated by any NRSRO or, if unrated, are deemed to be Total Annual Fund Operating Expenses .44% of similar quality by Dodge & Cox. The Fund may also invest in interest rate derivatives such as U.S. Treasury futures and swap Example: This example is intended to help you compare the cost agreements for a variety of purposes, including, but not limited to, of investing in the Fund with the cost of investing in other managing the Fund’s duration or adjusting the Fund’s exposure to mutual funds. debt securities with different maturities. The example assumes that: The proportions held in various debt securities will be revised ▪ You invest $10,000 in the Fund for the time periods indicated and in light of Dodge & Cox’s appraisal of the economy, the relative then redeem all of your shares at the end of those time periods; yields of securities in the various market sectors, the investment ▪ Your investment has a 5% return each year; and prospects for issuers, and other factors. In selecting securities, ▪ The Fund’s operating expenses remain the same. Dodge & Cox considers many factors, including yield, credit Although your actual costs may be higher or lower, under ratings, liquidity, call risk, duration, structure, and capital these assumptions your costs would be: appreciation potential.

1 Year 3 Years 5 Years 10 Years PRINCIPAL RISKS OF INVESTING $45 $141 $246 $555 You could lose money by investing in the Fund, and the Fund could underperform other investments. You should expect the PORTFOLIO TURNOVER Fund’s share price and total return to fluctuate. The Fund’s The Fund incurs transaction costs when Dodge & Cox buys and performance could be hurt by: sells securities (or “turns over” the portfolio). A higher portfolio ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth turnover rate may indicate higher transaction costs and may result of a company or security may be incorrect or the market may in higher taxes when Fund shares are held in a taxable account. continue to undervalue a company or security. Dodge & Cox These transaction costs, which are not reflected in annual Fund may not make timely purchases or sales of securities for the Fund. operating expenses or in the example, affect the Fund’s ▪ Interest rate risk. Debt security prices may decline due to rising performance. During the most recent fiscal year, the Fund’s interest rates. The price of debt securities with longer maturities portfolio turnover rate was 27% of the average value of its portfolio. is typically affected more by rising interest rates than the price of obligations with shorter maturities. ▪ Credit risk. An issuer or guarantor of a debt security may be unable or unwilling to make scheduled payments of interest and

PAGE 14 ▪ D ODGE &COX F UNDS principal. Actual or perceived deterioration in an issuer’s or ▪ Emerging market risk. Emerging market securities present issuer, guarantor’s financial condition may affect a security’s value. market, currency, liquidity, volatility, valuation, legal, political, ▪ Below investment grade securities risk. Debt securities rated below and other risks different from, and potentially greater than, the investment-grade, also known as “high-yield” or “junk” risks of investing in securities of issuers in more developed securities, generally have greater credit risk, more price markets. volatility, and less liquidity than investment-grade securities. ▪ Sovereign debt risk. An issuer of sovereign debt or the ▪ Call risk. If interest rates fall, issuers of callable bonds may repay governmental authorities that control the repayment of the debt securities with higher interest rates before maturity. This could may be unable or unwilling to repay principal or interest when cause the Fund to lose potential price appreciation and reinvest due. In the event of a default by a governmental entity on a the proceeds at lower interest rates. sovereign debt obligation, there may be few or no effective legal ▪ Derivatives risk. Investing with derivatives, such as interest rate remedies for collecting on such debt. swaps and futures, involves risks additional to those associated An investment in the Fund is not a deposit of a bank and is with investing directly in securities. The value of a derivative not insured or guaranteed by the Federal Deposit Insurance may not correlate to the value of the underlying instrument to Corporation or any other government agency. the extent expected. Derivative transactions may be volatile, and can create leverage, which could cause the Fund to lose PERFORMANCE INFORMATION more than the amount of assets initially contributed to the The following bar chart and table are intended to help you transaction, if any. The Fund may not be able to close a understand the risks of investing in the Fund. The bar chart shows derivatives position at an advantageous time or price. For over- changes in the Fund’s returns from year to year. The table shows the-counter derivatives transactions, the counterparty may be how the Fund’s average annual total returns for one, five, and ten unable or unwilling to make required payments and deliveries, years compare to those of a broad measure of market performance. especially during times of financial market distress. The Fund’s past performance (before and after taxes) does not ▪ Liquidity risk. The Fund may not be able to purchase or sell a necessarily indicate how the Fund will perform in the future. Visit security in a timely manner or at desired prices or achieve its the Fund’s website at dodgeandcox.com or call 800-621-3979 for desired weighting in a security. Liquidity risk may result from current performance figures. the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed DODGE & COX INCOME FUND income securities, and may be magnified in a rising interest rate Annual total returns 2005-2014 (%) environment or other circumstances that cause increased supply in the market due to selling activity. ▪ Mortgage- and asset-backed securities risk. Mortgage-related securities permit early repayment of principal based on prepayment of the underlying assets; changes in the rate of 16.05 7.94 repayment affect the price and volatility of an investment. If 5.30 4.68 7.17 4.76 5.48 1.98 0.64 prepayments occur faster than expected, the Fund receives lower −0.29 interest payments than it expects. If prepayments occur slower than expected, it delays the return of principal to the Fund. Securities issued by certain GSEs are not issued or guaranteed by the U.S. Treasury; there is no assurance the U.S. government will provide support in the event a GSE issuer cannot meet its obligations. 05 06 07 08 09 10 1112 13 14 ▪ Non-U.S. investment risk. Securities of non-U.S. issuers may be less liquid, more volatile, and harder to value than U.S. Highest/Lowest quarterly results during the time period were: securities. Non-U.S. issuers may be subject to political, Highest: 7.48% (quarter ended June 30, 2009) economic, or market instability, or unfavorable government Lowest: –3.77% (quarter ended September 30, 2008) action in their local jurisdictions. There may be less information publicly available about non-U.S. issuers and their securities, AVERAGE ANNUAL TOTAL RETURNS and those issuers may be subject to lower levels of government FOR THE PERIODS ENDED 12/31/2014 regulation and oversight. Non-U.S. securities may decline in value due to conditions specific to an individual country, Dodge & Cox including unfavorable economic conditions relative to the Income Fund 1 Year 5 Years 10 Years United States. There may be increased risk of delayed Return before taxes 5.48% 5.17% 5.28% transaction settlement or security certificate loss. These risks Return after taxes on distributions 4.02 3.69 3.62 may be higher when investing in emerging market issuers. Return after taxes on distributions and Certain of these risks may also apply to securities of U.S. issuers sale of Fund shares 3.22 3.42 3.45 with significant non-U.S. operations. Barclays U.S. Aggregate Bond Index (reflects no deduction for expenses or taxes) 5.95 4.46 4.71

D ODGE &COX F UNDS ▪ PAGE 15 After-tax returns are calculated using the historical highest individual federal marginal income tax rates, but do not reflect the impact of state or local taxes. Actual after-tax returns may differ depending on your individual circumstances. After-tax return figures do not apply to you 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 Policy Committee (FIIPC), which consists of the following eight members:

Years managing the Fund/ Years with Committee Member Primary Title with Investment Manager Dodge & Cox Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and member of 26/32 Global Bond Investment Policy Committee (GBIPC) Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, and member of 22/31 Investment Policy Committee, Global Stock Investment Policy Committee, and International Investment Policy Committee Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, Investment 21/21 Analyst, and member of GBIPC 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

PAGE 16 ▪ D ODGE &COX F UNDS DODGE & COX GLOBAL BOND FUND operating expenses or in the example, affect the Fund’s performance. From the Fund’s inception on May 1, 2014 to the INVESTMENT OBJECTIVES most recent fiscal year end, the Fund’s portfolio turnover rate was The Fund seeks a high rate of total return consistent with long- 36% of the average value of its portfolio. term preservation of capital. PRINCIPAL INVESTMENT STRATEGIES FEES AND EXPENSES The Fund invests in bonds and other debt instruments of issuers from This table describes the fees and expenses that you may pay if you at least three different countries, including emerging market buy and hold shares of the Fund. countries. The Fund is not required to allocate its investments in set percentages to particular countries and may invest in emerging SHAREHOLDER FEES markets without limit. Under normal circumstances, the Fund invests (fees paid directly from your investment) at least 40% of its total assets in securities of non-U.S. issuers and at Sales charge (load) imposed on purchases None least 80% of its total assets in debt instruments, which may, in each Deferred sales charge (load) None case, be represented by derivatives such as forward contracts, futures Sales charge (load) imposed on reinvested distributions None contracts, swap agreements, or options contracts. Debt instruments in Redemption fee None which the Fund may invest include, but are not limited to, Exchange fee None government and government-related obligations, mortgage- and asset-backed securities, corporate and municipal bonds, and other ANNUAL FUND OPERATING EXPENSES debt securities, and may include fixed and floating rate instruments. (expenses that you pay each year as a percentage of the value of your The Fund invests in both U.S. dollar-denominated and non-U.S. investment) currency-denominated debt instruments. Management fees .50% The Fund invests primarily in investment-grade debt Distribution and/or service (12b-1) fees None instruments (instruments rated Baa3 or higher by Moody’s Other expenses (transfer agent, custody, accounting, Investors Service (Moody’s), BBB- or higher by Standard & Poor’s legal, etc.) 1.68% Ratings Group (S&P) or Fitch Ratings (Fitch), or equivalently Total Annual Fund Operating Expenses 2.18% rated by any nationally recognized statistical rating organization Expense Reimbursement 1.58%* (NRSRO), or, if unrated, are deemed to be of investment-grade Net Expenses .60%* quality by Dodge & Cox). Up to 20% of the Fund’s total assets * Dodge & Cox has contractually agreed to reimburse the Fund for all ordinary may be invested in debt obligations rated below investment grade, expenses to the extent necessary to maintain Total Annual Fund Operating commonly referred to as high-yield or “junk” bonds. The Fund is expenses at 0.60% through April 30, 2016. The term of the agreement renews annually thereafter unless terminated with 30 days’ written notice by non-diversified (as defined in the 1940 Act), which allows it to either party prior to the end of the term. invest a greater percentage of its assets in any one issuer than would otherwise be the case for a diversified fund. Example: This example is intended to help you compare the cost The Fund may enter into various currency- or interest rate- of investing in the Fund with the cost of investing in other related transactions involving derivative instruments, including mutual funds. forwards contracts, futures contracts, swaps agreements, and The example assumes that: options contracts. The Fund may use derivatives to seek to ▪ You invest $10,000 in the Fund for the time periods indicated and minimize the impact of losses to one or more of its investments (as then redeem all of your shares at the end of those time periods; a “hedging technique”) or to implement its investment strategy. ▪ Your investment has a 5% return each year; and For example, the Fund may invest in derivative instruments that ▪ The Fund’s total annual fund operating expenses remain the provide exposure to a specific security or market sector as a same but Dodge & Cox or the Fund terminates the expense substitute for a direct investment in the security or sector itself or reimbursement agreement as of April 30, 2016. to benefit from changes in the relative values of selected Although your actual costs may be higher or lower, under currencies. The Fund may use interest rate derivatives for a variety these assumptions your costs would be: of purposes, including, but not limited to, managing the Fund’s duration or adjusting the Fund’s exposure to debt securities with 1 Year 3 Years 5 Years 10 Years different maturities. $61 $529 $1,024 $2,389 In selecting securities, Dodge & Cox considers many factors, including, without limitation, yield, structure, covenants, credit PORTFOLIO TURNOVER quality, liquidity, call risk, duration, and capital appreciation The Fund incurs transaction costs when Dodge & Cox buys and potential. For all securities that are denominated in a foreign sells securities (or “turns over” the portfolio). A higher portfolio currency, Dodge & Cox analyzes whether to accept or hedge the turnover rate may indicate higher transaction costs and may result associated interest rate and currency risks. Dodge & Cox considers, in higher taxes when Fund shares are held in a taxable account. among other things, a country’s economic outlook and political These transaction costs, which are not reflected in annual Fund stability, the protections provided to foreign investors, relative

D ODGE &COX F UNDS ▪ PAGE 17 interest rates, exchange rates, a country’s monetary and fiscal interest payments than it expects. If prepayments occur slower policies, its debt stock, and its ability to meet its funding needs. than expected, it delays the return of principal to the Fund. The Fund may purchase or sell holdings for a variety of Securities issued by certain U.S. government-sponsored entities reasons such as to alter sector, geographic, or currency exposure or (GSEs) are not issued or guaranteed by the U.S. Treasury; there to shift the overall portfolio’s risk profile. The proportions of the is no assurance the U.S. government will provide support in the Fund’s assets held in various debt instruments will be revised in event a GSE issuer cannot meet its obligations. light of Dodge & Cox’s appraisal of the global economy, the ▪ Non-U.S. investment risk. Securities of non-U.S. issuers may be relative yields of securities in the various market sectors and less liquid, more volatile and harder to value than U.S. countries, the potential for a currency’s appreciation, the securities. Non-U.S. issuers may be subject to political, investment prospects for issuers, the countries’ domestic and economic, or market instability, or unfavorable government political conditions, and other factors. action in their local jurisdictions. There may be less information publicly available about non-U.S. issuers and their securities and PRINCIPAL RISKS OF INVESTING those issuers may be subject to lower levels of government You could lose money by investing in the Fund, and the Fund regulation and oversight. Non-U.S. securities may decline in could underperform other investments. You should expect the value due to conditions specific to an individual country, Fund’s share price and total return to fluctuate within a wide including unfavorable economic conditions relative to the range. The Fund’s performance could be hurt by: United States. There may be increased risk of delayed ▪ Manager risk. Dodge & Cox’s opinion about the intrinsic worth transaction settlement or security certificate loss. These risks of a company or security may be incorrect or the market may may be higher when investing in emerging market issuers. continue to undervalue the company or security. Dodge & Cox Certain of these risks may also apply to securities of U.S. issuers may not make timely purchases or sales of securities for the Fund. with significant non-U.S. operations. ▪ Interest rate risk. Debt security prices may decline due to rising ▪ Emerging market risk. Emerging market securities may present interest rates. The price of debt securities with longer maturities issuer, market, currency, liquidity, volatility, valuation, legal, is typically affected more by rising interest rates than the price of political, and other risks different from, and potentially greater obligations with shorter maturities. than, the risks of investing in securities of issuers in more ▪ Credit risk. An issuer or guarantor of a debt security may be developed markets. unable or unwilling to make scheduled payments of interest and ▪ Non-U.S. currency risk. Foreign currencies may decline relative principal. Actual or perceived deterioration in an issuer’s or to the U.S. dollar, which reduces the unhedged value of guarantor’s financial condition may affect a security’s value. investments denominated in or otherwise exposed to those ▪ Below investment-grade securities risk. Debt securities rated below currencies. Dodge & Cox may not hedge or may not be investment grade, also known as “high-yield” or “junk” securities successful in hedging the Fund’s currency exposure. generally have greater credit risk, more price volatility, and less ▪ Derivatives risk. Investing with derivatives, such as forward liquidity than investment-grade securities. currency contracts, interest rate swaps, and futures contracts ▪ Call risk. If interest rates fall, issuers of callable bonds may repay involves risks additional to those associated with investing securities with higher interest rates before maturity. This could directly in securities. The value of a derivative may not correlate cause the Fund to lose potential price appreciation and reinvest to the value of the underlying instrument to the extent the proceeds at lower interest rates. expected. Derivative transactions may be volatile, and can ▪ Liquidity risk. The Fund may not be able to purchase or sell a create leverage, which could cause the Fund to lose more than security in a timely manner or at desired prices or achieve its the amount of assets initially contributed to the transaction, if desired weighting in a security. Liquidity risk may result from any. The Fund may not be able to close a derivatives position at the lack of an active market or a reduced number and capacity an advantageous time or price. For over-the-counter derivatives of traditional market participants to make a market in fixed transactions, the counterparty may be unable or unwilling to income securities and may be magnified in a rising interest rate make required payments and deliveries, especially during times environment or other circumstances that cause increased supply of financial market distress. in the market due to selling activity. ▪ Sovereign debt risk. An issuer of sovereign debt or the ▪ Non-diversification risk. As a non-diversified fund, the Fund may governmental authorities that control the repayment of the debt invest a larger percentage of its assets in securities of a smaller may be unable or unwilling to repay principal or interest when number of issuers than a diversified fund, which means a single due. In the event of a default by a governmental entity on a issuer’s performance may affect Fund performance more than if sovereign debt obligation, there may be few or no effective legal the Fund were invested in a larger number of issuers. remedies for collecting on such debt. ▪ Mortgage- and asset-backed securities risk. Mortgage-related An investment in the Fund is not a deposit of a bank and is securities permit early repayment of principal based on not insured or guaranteed by the Federal Deposit Insurance prepayment of the underlying assets; changes in the rate of Corporation or any other government agency. repayment affect the price and volatility of an investment. If prepayments occur faster than expected, the Fund receives lower

PAGE 18 ▪ D ODGE &COX F UNDS PERFORMANCE INFORMATION DODGE & COX GLOBAL BOND FUND The following bar chart and table are intended to help you Annual total returns 2013-2014 (%) understand the risks of investing in the Fund. The bar chart shows changes in the Fund’s returns from year to year. The table shows how the Fund’s average annual total returns compare to those of a broad measure of market performance. Dodge & Cox Global Bond Fund, L.L.C., a private fund managed and funded by Dodge & Cox (the “Private Fund”), was 2.59 1.67 reorganized into the Fund and the Fund commenced operations on May 1, 2014. The Private Fund was organized as Delaware limited liability company and was treated as a disregarded entity under the Internal Revenue Code of 1986, as amended (the “Code”). The Private Fund commenced operations on December 5, 2012, and had an investment objective, policies, and strategies that were, in 13 14 all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. However, Highest/Lowest quarterly results during the time period were: the Private Fund was not registered as an investment company Highest: 3.03% (quarter ended June 30, 2014) Lowest: –2.35% (quarter ended September 30, 2014) under the Investment Company Act of 1940 (the “1940 Act”), and therefore was not subject to certain investment limitations, AVERAGE ANNUAL TOTAL RETURNS diversification requirements, liquidity requirements, and other FOR THE PERIODS ENDED 12/31/2014 restrictions imposed by the 1940 Act and the Code, which, if applicable, may have adversely affected its performance. The Since Fund’s performance for periods prior to the commencement of Dodge & Cox Inception Global Bond Fund 1 Year (12/5/2012) operations on May 1, 2014, is that of the Private Fund. The performance of the Private Fund has not been restated because the Return before taxes 1.67% 2.16% net total operating expense ratio of the Private Fund and the Fund Return after taxes on distributions 1.07 1.87 (after the application of the expense reimbursement agreement) Return after taxes on distributions and sale of are the same. A copy of the 2012 and 2013 audited financial Fund shares 0.95 1.52 statements of the Private Fund is available on the SEC’s website at Barclays Global Aggregate Bond Index (reflects http://www/sec.gov.Archives/edgar/data/29440/ no deduction for expenses or taxes) 0.58 –1.32 000119312514133696/d647972dex99q.htm, or by calling the Fund at 800-621-3979. After-tax returns are calculated using the historical highest The Fund’s past performance (before and after taxes) does not individual federal marginal income tax rates, but do not reflect the necessarily indicate how the Fund will perform in the future. Visit impact of state or local taxes. Actual after-tax returns may differ the Fund’s website at dodgeandcox.com or call 800-621-3979 for depending on your individual circumstances. After-tax return current performance figures. figures do not apply to you if you hold your Fund shares through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account.

D ODGE &COX F UNDS ▪ PAGE 19 FUND MANAGEMENT Dodge & Cox serves as investment manager to the Global Bond Fund. The Fund is managed by Dodge & Cox’s Global Bond Investment Policy Committee (GBIPC), which consists of the following six members:

Years managing the Fund/ Years with Committee Member Primary Titles with Investment Manager Dodge & Cox Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, and member of 1/32 Fixed Income Investment Policy (FIIPC) Diana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager, Investment Analyst, 1/27 and member of Investment Policy Committee, Global Stock Investment Policy Committee, and International Investment Policy Committee Thomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, Investment 1/21 Analyst, and member of FIIPC 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

PAGE 20 ▪ D ODGE &COX F UNDS SUMMARY OF OTHER IMPORTANT INFORMATION ABOUT FUND SHARES

PURCHASE AND SALE OF FUND SHARES TAX INFORMATION The Dodge & Cox International Stock Fund is closed to new Each Fund will distribute substantially all of its income and capital investors, with certain limited exceptions. For more information, gains to its shareholders every year. You will be taxed on dividends see the “How to Purchase Shares — Information Regarding you receive from a Fund as ordinary income and/or capital gains Purchases of the Dodge & Cox International Stock Fund” section unless you hold your Fund shares in a tax-deferred retirement of the Prospectus on page 37. account, such as an IRA, or are otherwise tax exempt in which The minimum initial investment for shares of a Fund is case you will generally be taxed only upon withdrawal of monies $2,500 ($1,000 for Individual Retirement Accounts (IRAs)) and from the retirement account. the minimum subsequent investment is $100, except that the minimum investment requirements may be waived for certain PAYMENTS TO FINANCIAL INTERMEDIARIES financial intermediaries that use the Fund as part of an asset If you purchase a Fund through an employee benefit plan, allocation program or for certain retirement plans. Dodge & Cox may make payments to the recordkeeper, broker/ You may withdraw (redeem) any part of your account by dealer, bank, or other financial institution or organization (each a selling shares. The sale price of your shares will be the Fund’s next- “Financial Intermediary”) that provides shareholder recordkeeping determined net asset value after Boston Financial Data Services, or other administrative services to the plan as compensation for Inc. or an authorized agent or sub-agent receives all required those services. These payments may create a conflict of interest by documents in good order. You may sell shares as described below: influencing your Financial Intermediary to make available a Fund ▪ Online: For non-IRAs, visit the Dodge & Cox Funds’ website at over other mutual funds or investments. You should ask your dodgeandcox.com, click on “Account Access” to log into your Financial Intermediary about differing and divergent interests and account and submit your request online. A distribution may not how it is compensated for administering your Fund investment. be processed for an IRA online at this time. ▪ Mail: Visit Dodge & Cox Funds’ website at dodgeandcox.com and click on “Forms and Guides”. Download and complete the Redemption Request Form for a non-IRA and/or the IRA Distribution Request Form for an IRA. Mail the completed form(s) to “Dodge & Cox Funds, c/o Boston Financial Data Services, P.O. Box 8422, Boston, MA 02266-8422” to process your request(s). ▪ Phone: You may call Client Services at 800-621-3979 during business hours to place redemption or distribution requests for either an IRA or a non-IRA.

D ODGE &COX F UNDS ▪ PAGE 21 INVESTMENT OBJECTIVES, RELATED RISKS, AND DISCLOSURE OF PORTFOLIO HOLDINGS

This section takes a closer look at the investment objectives and creditworthiness and any downside protection that exists. At the certain risks of investing in the Dodge & Cox Funds (each a security level, our analysis emphasizes the terms and conditions and “Fund” and, collectively, the “Funds”). This section also provides structural characteristics of each instrument. We also consider information regarding the Funds’ disclosure of portfolio holdings. economic trends and special circumstances that may affect an industry or a specific issuer or issue. While considering factors such as yield, credit quality, liquidity, call risk, duration, structure, and DODGE & COX INVESTMENT MANAGEMENT capital appreciation potential, we seek to construct a fixed income APPROACH portfolio that will generate a relatively high, sustainable income Fundamental bottom-up research, a long-term investment horizon, stream without assuming undue levels of risk. and rigorous valuation discipline are central to Dodge & Cox’s Particularly when investing outside the United States, investment philosophy. Investment decisions are made by a team Dodge & Cox considers a country’s financial strength and the of seasoned investment professionals based on key fundamental rights of foreign creditors. In particular, we evaluate a country’s factors that we believe determine investment value over the long economic outlook and political stability, its monetary and fiscal term. Our investment analysts operate from a single location to policies, its debt stock, its regulatory framework, including its foster communication and collaboration, and each investment idea insolvency regime, and its ability to meet its funding needs. For is subject to committee review for both its merits as a specific securities denominated in a foreign currency, we consider relative investment and its role in the overall portfolio. Our approach interest rates and exchange rates in deciding whether to accept or stresses an evaluation of risk relative to opportunity and we seek hedge those risks. investments that we believe are undervalued by the market. Dodge & Cox normally invests in an array of debt securities with short, intermediate, and long maturities in varying EQUITY INVESTING proportions. The average maturity at any given time of the debt Dodge & Cox’s equity investment strategy is to build a portfolio of securities in the Funds depends, in part, on Dodge & Cox’s individual securities that we believe are undervalued given their assessment of the factors described above and Dodge & Cox’s long-term prospects. Individual company research drives the expectation regarding the future level of inflation and interest rates. selection of stocks for the Funds’ portfolios. We identify Yields on debt securities depend on a variety of factors, including investment opportunities by analyzing the long-term fundamentals the general conditions of the money and debt securities markets, the of a business, including prospective earnings, cash flow, and size of a particular offering, the terms and conditions of the obligation dividends over a three-to-five year period. Various other factors, (e.g., maturity, coupon, and call features), and the credit rating of the including financial strength, economic condition, competitive issue. Debt securities with longer maturities or lower credit ratings advantage, quality of the business franchise, and competence of a tend to have higher yields and are generally subject to greater price company’s management are weighed against valuation in selecting volatility due to their higher interest rate and credit risks. No specific individual securities. The Funds typically invest in medium-to- yield on shares of a Fund can be guaranteed. large well-established companies. It is the general practice of the Funds to invest in equity securities that have liquid secondary markets. Particularly when investing in securities of non-U.S. DODGE & COX STOCK FUND (SF) issuers, Dodge & Cox considers the economic and political Investment Objective: The Fund seeks long-term growth of stability of the country where the issuer is located and the principal and income. A secondary objective is to achieve a protections provided to shareholders. We consider the sale of a reasonable current income. The Fund’s investment objective may holding when we believe the price of a company’s stock reflects not be changed without shareholder approval. more optimistic expectations about the company’s prospects than The Fund seeks to achieve its objective by investing primarily our own expectations, when our assessment of a company’s long- in a diversified portfolio of equity securities. Under normal term fundamentals grows negative or when we identify more circumstances, the Fund will invest at least 80% of its total assets in attractive opportunities elsewhere. equity securities, including common stocks, depositary receipts evidencing ownership of common stocks, preferred stocks, and FIXED INCOME INVESTING securities convertible into common stocks, and securities that carry Dodge & Cox’s fixed income investment strategy is to construct the right to buy common stocks (e.g., rights and warrants). The and manage a high average quality portfolio of securities selected Fund may invest up to 20% of its total assets in U.S. dollar- through bottom-up fundamental analysis and with an emphasis on denominated securities of non-U.S. issuers traded in the United valuation. By combining fundamental research with a long-term States that are not in the S&P 500 Index. The investment policies investment horizon, we seek to uncover and act upon inefficiencies of the Fund as described above may be changed without shareholder in the valuation of individual securities. Our credit research focuses approval; however, these investment policies will not be changed on the factors that can influence an individual issuer’s without 60 days’ prior notice to shareholders.

PAGE 22 ▪ D ODGE &COX F UNDS The Fund may enter into forward currency contracts or approximately equal to, some or all of its available cash. For currency futures contracts to hedge foreign currency exposure. temporary, defensive purposes, the Fund may invest, without While the Fund’s long-term intent is to maintain a fully invested limitation, in U.S. dollar-denominated short-term debt equity fund, the Fund may hold moderate reserves in cash and/or instruments. As a result of taking such a defensive position, the short-term debt securities as Dodge & Cox deems advisable. The Fund Fund may not achieve its investment objectives. may purchase equity index futures contracts, such as S&P 500 futures, In an attempt to minimize unforeseen risks in holding the to equitize, or create equity market exposure approximately equal to, securities of any single issuer, the Fund seeks to provide investment some or all of its available cash. For temporary, defensive purposes, the diversification. Although there is no restriction on the number of Fund may invest, without limitation, in U.S. dollar-denominated changes in the Fund’s security holdings, purchases generally are short-term debt instruments. As a result of taking such a defensive made with a view to holding for the long term and not for short- position, the Fund may not achieve its investment objectives. term trading purposes. (The Fund’s portfolio turnover rate for the In an attempt to minimize unforeseen risks in holding the fiscal year ended December 31, 2014, 2013, and 2012 were 17%, securities of any single issuer, the Fund seeks to provide investment 24%, and 12%, respectively.) However, during rapidly changing diversification. Although there is no restriction on the number of economic, market, and political conditions, portfolio turnover may changes in the Fund’s security holdings, purchases generally are be higher than in a more stable period. A higher turnover rate made with a view to holding for the long term and not for short- might result in increased transaction expenses and the realization of term trading purposes. (The Fund’s portfolio turnover rates for the capital gains and losses, some of which may be short-term capital fiscal years ended December 31, 2014, 2013, and 2012 were 17%, gains taxed as ordinary income (see Federal Income Taxes). 15%, and 11%, respectively.) However, during rapidly changing Further information about specific investments is provided under economic, market, and political conditions, portfolio turnover may Additional Information on Investments and Investment Practices. be higher than in a more stable period. A higher turnover rate might result in increased transaction expenses and the realization of capital gains and losses, some of which may be short-term DODGE & COX INTERNATIONAL capital gains taxed as ordinary income (see Federal Income STOCK FUND (ISF) Taxes). Investment Objective: The Fund seeks long-term growth of Further information about specific investments is provided under principal and income. The Fund’s investment objective may not Additional Information on Investments and Investment Practices. be changed without shareholder approval. The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of equity securities issued by non-U.S. DODGE & COX GLOBAL STOCK FUND (GSF) companies from at least three different countries, including Investment Objective: The Fund seeks long-term growth of emerging market countries. The Fund is not required to allocate its principal and income. The Fund’s investment objective may not investments in set percentages in particular countries and may be changed without shareholder approval. invest in emerging markets without limit. Under normal The Fund seeks to achieve its objective by investing primarily circumstances, the Fund will invest at least 80% of its total assets in a diversified portfolio of equity securities from at least three in equity securities of non-U.S. companies, including common different countries, including emerging market countries. The stocks, depositary receipts evidencing ownership of common Fund is not required to allocate its investments in set percentages stocks, preferred stocks, securities convertible into common stocks, in particular countries and may invest in emerging markets and securities that carry the right to buy common stocks (e.g., without limit. Under normal circumstances, the Fund will invest at rights and warrants). The investment policies of the Fund as least 40% of its total assets in securities of non-U.S. companies and described above may be changed without shareholder approval; at least 80% of its total assets in equity securities, including however, these investment policies will not be changed without 60 common stocks, depositary receipts evidencing ownership of days’ prior notice to shareholders. common stocks, preferred stocks, securities convertible into The Fund may enter into forward currency contracts or common stocks, and securities that carry the right to buy common currency futures contracts to hedge foreign currency exposure. stocks (e.g., rights and warrants). The investment policies of the While the Fund’s long-term intent is to maintain a fully Fund as described above may be changed without shareholder invested equity fund, the Fund may hold moderate reserves in cash approval; however, these investment policies will not be changed or short-term debt securities as Dodge & Cox deems advisable. The without 60 days’ prior notice to shareholders. Fund may purchase equity index futures contracts, such as S&P 500 The Fund may enter into forward currency contracts or futures, to equitize, or create equity market exposure approximately currency futures contracts to hedge foreign currency exposure. equal to, some or all of its available cash. For temporary, defensive While the Fund’s long-term intent is to maintain a fully purposes, the Fund may invest, without limitation, in U.S. dollar- invested equity fund, the Fund may hold moderate reserves in cash denominated short-term debt instruments. or short-term debt securities as Dodge & Cox deems advisable. In an attempt to minimize unforeseen risks in holding the The Fund may purchase equity index futures contracts, such as securities of any single issuer, the Fund seeks to provide investment S&P 500 futures, to equitize, or create equity market exposure diversification. Although there is no restriction on the number of

D ODGE &COX F UNDS ▪ PAGE 23 changes in security holdings, purchases generally are made with a agency or GSE or that are rated at least AA- by S&P, Fitch, or view to holding for the long term and not for short-term trading Moody’s or are equivalently rated by another NRSRO. purposes. (The Fund’s portfolio turnover rates for the fiscal years The Fund may enter into forward currency contracts or ended December 31, 2014, 2013, and 2012 were 12%, 13%, and currency futures contracts to hedge foreign currency exposure. The 10%, respectively.) However, during rapidly changing economic, Fund may invest in interest rate derivatives such as U.S. Treasury market, and political conditions, portfolio turnover may be higher futures and swap agreements for a variety of purposes, including, than in a more stable period. A higher turnover rate might result but not limited to, managing the Fund’s duration or adjusting the in increased transaction expenses and the realization of capital Fund’s exposure to debt securities with different maturities. In gains and losses, some of which may be short-term capital gains addition, the Fund may invest in credit default swaps to increase or taxed as ordinary income (see Federal Income Taxes). decrease credit exposure to a particular issuer or a group of issuers Further information about specific investments is provided under that comprise a particular segment of the debt market Additional Information on Investments and Investment Practices. In seeking to achieve the objectives of the Fund, Dodge & Cox may purchase securities on a when-issued basis and purchase or sell securities for delayed delivery. The Fund may hold DODGE & COX BALANCED FUND (BF) moderate reserves in cash or short-term debt securities and for Investment Objective: The Fund seeks regular income, temporary, defensive purposes, may invest without limitation in conservation of principal, and an opportunity for long-term growth U.S. dollar denominated short-term debt instruments. of principal and income. The Fund’s investment objective may not In an attempt to minimize unforeseen risks in holding the be changed without shareholder approval. securities of any single issuer, the Fund seeks to provide investment Under normal circumstances, the Fund will invest no more diversification. Although there is no restriction on the number of than 75% and no less than 25% of its total assets in equity changes in the Fund’s security holdings, purchases generally are securities. Reasonable appreciation in favorable periods and made with a view to holding for the long term and not for short- conservation of principal in adverse times are objectives that term trading purposes. (The Fund’s portfolio turnover rates for the require flexibility in managing the assets of the Fund under fiscal years ended December 31, 2014, 2013, and 2012 were 23%, constantly changing investment conditions. The proportions of 25%, and 16%, respectively.) However, during rapidly changing Fund assets held in equity and debt securities are revised by economic, market, and political conditions, portfolio turnover may Dodge & Cox based on its appraisal of business and investment be higher than in a more stable period. A higher turnover rate prospects. The Fund may invest up to 20% of its total assets in might result in increased transaction expenses and the realization U.S. dollar-denominated securities of non-U.S. issuers traded in of capital gains and losses, some of which may be short-term the United States (such as ADRs and Yankee bonds) that are not capital gains taxed as ordinary income (see Federal Income in the S&P 500. The investment policies of the Fund as described Taxes). above may be changed without shareholder approval; however, Further information about specific investments is provided under these investment policies will not be changed without 60 days’ Additional Information on Investments and Investment Practices. prior notice to shareholders. Equity securities in which the Fund may invest include common stocks, depositary receipts evidencing ownership of DODGE & COX INCOME FUND (IF) common stocks, preferred stocks, securities convertible into Investment Objective: The Fund seeks a high and stable rate of common stocks, and securities that carry the right to buy common current income, consistent with long-term preservation of capital. stocks (e.g., rights and warrants). The Fund may purchase equity A secondary objective is to take advantage of opportunities to index futures contracts, such as S&P 500 futures, to equitize, or realize capital appreciation. The Fund’s investment objective may create equity market exposure approximately equal to, some or all of not be changed without shareholder approval. its available cash. The Fund seeks to achieve its objectives by investing in a The Fund invests the debt portion of its assets primarily in diversified portfolio of debt securities. Under normal circumstances, debt obligations issued or guaranteed by the U.S. government, its the Fund will invest at least 80% of its total assets in the following agencies or GSEs, and investment-grade debt securities (securities categories: (1) debt obligations issued or guaranteed by the U.S. rated Baa3 or higher by Moody’s, BBB- or higher by S&P or Fitch, government, its agencies, or GSEs; (2) investment-grade debt or equivalently rated by any NRSRO or, if unrated, are deemed to securities (securities rated Baa3 or higher by Moody’s, BBB- or be of investment-grade quality by Dodge & Cox). A maximum of higher by S&P or Fitch, or equivalently rated by any NRSRO), 20% of the debt portion of the Fund may be invested in debt including U.S. dollar-denominated foreign issues and issues of obligations rated below investment grade, commonly referred to as supranational agencies; (3) unrated securities, if deemed to be of high-yield or “junk” bonds, if they have a minimum rating of B3 or investment-grade quality by Dodge & Cox; and (4) bankers’ B- by Moody’s, S&P, or Fitch, or are equivalently rated by any acceptances, bank certificates of deposit, repurchase agreements, NRSRO or if unrated, are deemed to be of similar quality by Dodge and commercial paper. Debt securities in which the Fund may & Cox. The Fund may only purchase collateralized mortgage invest include government and government-related obligations, obligations that are issued or guaranteed by a U.S. government mortgage- and asset-backed securities, corporate and municipal

PAGE 24 ▪ D ODGE &COX F UNDS bonds, and other debt securities, and may include fixed and floating percentages to particular countries and may invest in emerging rate instruments. The Fund may invest up to 25% of its total assets markets without limit. Under normal circumstances, the Fund in U.S. dollar-denominated securities of non-U.S. issuers including invests at least 40% of its total assets in securities of non-U.S. emerging market issuers. The investment policies of the Fund as issuers and at least 80% of its total assets in debt instruments, which described above may be changed without shareholder approval; may, in each case, be represented by derivatives such as forwards however, these investment policies will not be changed without 60 contracts, futures contracts, swap agreements, or options contracts. days’ prior notice to shareholders. The investment policies of the Fund as described above may be The Fund may also invest in securities not included in categories changed without shareholder approval; however, these investment (1) through (4) above, including preferred stocks and convertible policies will not be changed without 60 days’ prior notice to securities. Up to 20% of the Fund’s total assets may be invested in shareholders. debt obligations rated below investment grade, commonly referred to Debt instruments in which the Fund may invest include, but as high-yield or “junk” bonds, if they have a minimum rating of B3 or are not limited to, government and government-related B- by Moody’s, S&P, or Fitch, or are equivalently rated by any obligations, mortgage- and asset-backed securities, corporate and NRSRO or if unrated, are deemed to be of similar quality by municipal bonds, collateralized mortgage obligations, and other Dodge & Cox. The Fund may only purchase collateralized mortgage debt securities, and may include fixed and floating rate obligations that are issued or guaranteed by a U.S. government instruments. The Fund invests in both U.S. dollar-denominated agency or GSE or that are rated at least AA- or the equivalent by an and non-U.S. currency-denominated debt instruments across all NRSRO. The Fund seeks relative price appreciation by selecting sectors. The Fund invests primarily in investment-grade debt securities Dodge & Cox believes to be undervalued based on research instruments (instruments rated Baa3 or higher by Moody’s, BBB- and fundamental analysis and by making gradual adjustments in the or higher by S&P or Fitch, or equivalently rated by any NRSRO, average maturity of the Fund’s portfolio. or, if unrated, are deemed to be of investment-grade quality by The Fund may invest in interest rate derivatives such as U.S. Dodge & Cox). Up to 20% of the Fund’s total assets may be Treasury futures contracts and swap agreements for a variety of invested in below investment-grade debt instruments, commonly purposes, including, but not limited to, managing the Fund’s duration referred to as high-yield or “junk” bonds. The Fund may only or adjusting the Fund’s exposure to debt securities with different purchase CMO bonds that are issued or guaranteed by a U.S. maturities. In addition, the Fund may invest in credit default swaps to government agency or GSE or that are rated at least BBB- or the increase or decrease credit exposure to a particular issuer or a group of equivalent by an NRSRO. The Fund is non-diversified, as defined issuers that comprise a particular segment of the debt market. under the 1940 Act, which allows it to invest a greater percentage In seeking to achieve the objectives of the Fund, Dodge & of its assets in any one issuer than would otherwise be the case. Cox may purchase securities on a when-issued basis and purchase The Fund may purchase or sell holdings for a variety of or sell securities for delayed delivery. The Fund may hold moderate reasons such as to alter sector, geographic, or currency exposure or reserves in cash or short-term debt securities and, for temporary, to shift the overall portfolio’s risk profile. In seeking to achieve the defensive purposes, may invest without limitation in U.S. dollar- objective of the Fund, Dodge & Cox may purchase securities on a denominated short-term debt instruments. when-issued basis and purchase or sell securities for delayed Although there is no restriction on the number of changes in delivery. The Fund may hold moderate reserves in cash or short- the Fund’s security holdings, purchases generally are made with a term debt securities and for temporary, defensive purposes, may view to holding for the long term and not for short-term trading invest without limitation in U.S. dollar-denominated short-term purposes. (The Fund’s portfolio turnover rates for the fiscal years debt instruments. ended December 31, 2014, 2013, and 2012 were 27%, 38%, and The Fund may buy or sell foreign currencies and enter into 26%, respectively.) However, during rapidly changing economic, various currency or interest rate-related transactions involving market, and political conditions, portfolio turnover may be higher derivative instruments, including forwards, futures, swaps, and than in a more stable period. A higher turnover rate might result options. The Fund may use derivatives either to hedge or seek to in increased transaction expenses and the realization of capital minimize risks relating to other investments or to create exposure gains and losses (see Federal Income Taxes). to interest rates, securities, or currencies as a substitute for direct Further information about specific investments is provided under investment. The Fund may use interest rate derivatives for a Additional Information on Investments and Investment Practices. variety of purposes, including, but not limited to, managing the Fund’s duration or adjusting the Fund’s exposure to debt securities with different maturities. In addition, the Fund may invest in DODGE & COX GLOBAL BOND FUND (GBF) credit default swaps to increase or decrease credit exposure to a Investment Objective: The Fund seeks a high rate of total return particular issuer or a group of issuers that comprise a particular consistent with long-term preservation of capital. segment of the debt market. The Fund’s use of derivatives is related The Fund seeks to achieve its investment objective by to the implementation of its overall primary investment strategy of investing in bonds and other debt instruments of issuers from at investing in a portfolio of debt securities. However, the Fund is not least three different countries, including emerging market countries. intended to be a vehicle through which shareholders can invest in, The Fund is not required to allocate its investments in set or otherwise seek exposure to, derivatives.

D ODGE &COX F UNDS ▪ PAGE 25 Although there is no restriction on the number of changes in DISCLOSURE OF PORTFOLIO HOLDINGS the Fund’s security holdings, purchases generally are made with a A complete description of the Funds’ policies and procedures with view to holding for the long term and not for short-term trading respect to the disclosure of the Funds’ portfolio securities is purposes. (The Fund’s portfolio turnover rate for the period from available in the SAI. May 1, 2014 to December 31, 2014 was 36%.) However, during The Funds provide a complete list of their holdings four times rapidly changing economic, market, and political conditions, in each fiscal year, as of the end of each quarter. The Funds file the portfolio turnover may be higher than in a more stable period. A lists with the SEC on Form N-CSR (second and fourth quarters) higher turnover rate might result in increased transaction expenses and Form N-Q (first and third quarters). Shareholders may view and the realization of capital gains and losses (see Federal the Funds’ Forms N-CSR and N-Q on the SEC’s website at Income Taxes). sec.gov. Forms N-CSR and N-Q may also be reviewed and copied Further information about specific investments is provided under at the SEC’s Public Reference Room in Washington, DC. Additional Information on Investments and Investment Practices. Information regarding the operations of the Public Reference Room may be obtained by calling 202-551-8090 (direct) or INVESTMENT RESTRICTIONS 800-SEC-0330 (general SEC number). A list of the Funds’ quarter- The Funds are subject to additional investment restrictions which end holdings is also available at dodgeandcox.com on or about are described in the Statement of Additional Information (SAI). 15 days following each quarter end and remains available on the The percentage limitations included in this prospectus and website until the list is updated for the subsequent quarter. SAI 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.

PAGE 26 ▪ D ODGE &COX F UNDS ADDITIONAL INFORMATION ON INVESTMENTS AND INVESTMENT PRACTICES

The following table identifies investments and investment practices that are likely to be used by the Funds in seeking to achieve their objectives. The table highlights the differences and similarities among the Funds in their use of these techniques and other investment practices and investment instruments. This is not a complete list of every investment type or investment practice that a Fund may use and a Fund may use an investment type or practice even if it is not marked below. More information about these investments and investment practices is provided below; information about these and other investments and investment practices is provided in the Statement of Additional Information.

Investment or Practice SF GSF ISF BF IF GBF Asset-Backed Securities XXX Cash Equivalents X XXXXX Corporate Bonds XXX Covered Bonds XXX Depositary Receipts X X X X X Derivatives X XXXXX Credit Derivatives XXX 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 XXX Equity Securities X X X X Common Stocks X X X X Hybrid Securities X XXXXX Mortgage-Backed Securities XXX Collateralized Mortgage Obligations X X X Mortgage Pass-Through Securities X X X Municipal Bonds XXX Non-U.S. Securities X XXXXX Private Placement Securities X XXXXX Sovereign and Government-Related Debt X X X U.S. Government Obligations X XXXXX When-Issued Securities X XXXXX

Asset-Backed Securities. Asset-backed securities (“ABS”) Corporate Bonds. Corporate bonds are debt securities issued are bonds issued through special purpose vehicles and backed by by corporations and similar entities, including real estate pools of loans or other receivables. ABS are created from many investment trusts or limited partnerships. Bonds pay a specified types of assets, including home equity loans, auto loans, student amount of interest, usually at regular intervals, and repay the loans, and credit card receivables. The credit quality of an ABS amount of their principal investment, usually at maturity. security depends on the quality and performance of the Covered Bonds. Covered bonds are debt securities issued by underlying assets and/or the level of any credit support provided banks and are secured by collateral, typically mortgages. In the to the structure. event of a default, bondholders also have an unsecured claim Cash Equivalents. Cash equivalents are short-dated against the issuing bank if the underlying collateral is insufficient instruments that are readily convertible into cash. They may to repay amounts owing in respect of the bonds. include bank obligations, commercial paper, and repurchase Depositary Receipts. Depositary receipts, including agreements. Bank obligations include certificates of deposit and American Depositary Receipts, Global Depositary Receipts, bankers’ acceptances. Commercial paper is a short-term European Depositary Receipts and Global Depositary Notes, are promissory note issued by a corporation, which may have a certificates evidencing ownership of securities of a foreign issuer. floating or variable rate. Repurchase agreements are transactions The certificates are issued by depositary banks and the underlying under which a Fund purchases a security from a dealer securities are held in trust by a custodian bank or similar counterparty and agrees to resell the security on a specified future institution. Depositary receipts may be purchased on securities date at the same price, plus a specified interest rate. exchanges or directly from dealers.

D ODGE &COX F UNDS ▪ PAGE 27 Derivatives. payments in a different currency. Typically, upon Credit Derivatives. Credit derivatives are swap initiation of a cross-currency swap, the two parties agreements based on the credit risk of one or more referenced exchange principal amounts of the specified currencies. issuers of debt. In a single-name credit default swap, one party During the life of the swap, each party makes payments (the “buyer” of credit protection) pays the other party (the to the other in a specified currency based on applying a “seller” of credit protection) an upfront and/or a periodic specified rate to the principal amount. At the maturity of stream of payments over the term of the contract or until the the swap, the parties reverse the initial exchange of the occurrence of a “credit event,” such as a bankruptcy of the principal amounts in the two currencies. An option is an issuer referenced in the contract. If a credit event occurs, the agreement that gives the option holder the right but not seller pays the buyer the “par value” (full notional value) of the obligation to buy or sell the underlying asset at a the credit default swap in exchange for an equal face amount specified price within a period of time or on a specified of the referenced issuer’s debt securities. If the credit default date in exchange for a premium payment or a fee. The swap is cash settled, the seller is required to make a payment Dodge & Cox Global Bond Fund may invest in privately equal to the difference between the par value and the market negotiated or exchange-traded options to buy or sell value of such securities. An index credit default swap operates currencies at specified prices in the future. similarly except that it refers to a published list of issuers, each Equity Index Futures. Equity index futures contracts representing a pro-rata portion of the total notional amount. can be used to create exposure to a stock index such as the If a credit event occurs with respect to any issuer, the parties S&P 500 or MSCI. The purchaser of an equity index future settle only the portion of the trade related to that issuer, and buys the right to receive a payment corresponding to any the trade continues with respect to the remaining names. increase in the referenced index as of a specified future date Currency Derivatives. Currency derivatives can be used and incurs the obligation to make a payment corresponding to to manage non-U.S. currency exposure or hedge non-U.S. any decrease in the referenced index as of such date. Futures interest rate risk or to take long or short positions with respect contracts are standardized, traded through a national (or to currencies or non-U.S. interest rates. The Funds may use foreign) exchange, and cleared through an affiliate of the currency derivatives to lock in the U.S. dollar purchase price exchange. of a non-U.S. dollar-denominated security or to hedge other Interest Rate Derivatives: Interest Rate Futures and types of exposure to non-U.S. currencies. Currency Interest Rate Swaps. Interest rate futures contracts include derivatives may be used in anticipation of an increase or agreements under which one party agrees to make, and the decrease of the value of one currency relative to another. The other party agrees to accept, delivery of a specified interest- Funds may also exchange currencies on a “spot” basis. The bearing security, at a specified future time and price. Interest Global Bond Fund may take long or short positions in rate derivatives also include futures contracts that relate to a currencies regardless of whether those positions are intended particular reference interest rate (e.g., LIBOR or EURIBOR) to hedge exposure created by other investments. and futures contracts on U.S. or non-U.S. government debt Currency Forwards and Futures. Currency futures (e.g., Treasury or Bund futures contracts). Interest rate futures contracts are agreements under which one party agrees to are standardized, traded through a national (or foreign) make, and the other party agrees to accept, delivery of a exchange and cleared through an affiliate of the exchange. specified currency amount at a specified future time and Interest rate swaps are transactions under which each party price. Futures contracts are standardized, traded through agrees to make payments to the other based on applying a a national (or foreign) exchange, and cleared through an different interest rate to the same notional amount. One of affiliate of the exchange. Currency forward contracts are the rates may be fixed and the other floating, or both rates similar to currency futures contracts, but are individually may be floating. Some interest rate swaps are traded on swap negotiated and privately traded. Although some currency execution facilities, while others are traded directly with futures and forwards contracts by their terms call for dealer counterparties. Some interest rate swaps are cleared actual delivery or acceptance of currency, in many cases through central counterparties. A Fund may enter into the contracts are settled with a cash payment interest rate futures or swaps for a variety of purposes in representing the difference in value between two connection with the management of the interest rate amounts of different currencies. exposure of its portfolio, including adjusting portfolio Currency Swaps, Cross-Currency Swaps and duration hedging against possible increases or decreases in Currency Options. A currency swap (or FX swap) is a rates or increasing or decreasing exposure to interest rates. transaction under which the parties agree to buy and sell Equity Securities. Equity securities represent ownership identical amounts of two currencies on two different shares in a company, and include securities that convey an interest dates. This is typically arranged as a spot currency in, may be converted into or give holders a right to purchase or transaction that will be reversed at a set date through an otherwise acquire such ownership shares in a company. offsetting forward transaction. A cross-currency swap is Common Stocks. Common stocks represent shares of an interest rate swap in which each party makes ownership in a company. After other company obligations are

PAGE 28 ▪ D ODGE &COX F UNDS satisfied, common stockholders participate in company profits pass-through securities. They may be issued by U.S. on a pro-rata basis; profits may be paid out in dividends or government agencies, GSEs, or private issuers. CMOs are reinvested in the company to help it grow. Increases and typically issued in multiple classes, or “tranches,” of bonds, decreases in earnings are usually reflected in a company’s each with a different level of seniority and credit risk. Each stock price, so common stocks generally have the greatest tranche is traded and valued separately. Payments of interest appreciation and depreciation potential of all and principal rely on payments made in respect of the corporate securities. Ownership of common stock of a non- underlying mortgage pass-through securities. Typically, all U.S. company may be represented by depositary receipts payments received are applied first to pay interest on the (which represent an interest in non-U.S. securities held by a various tranches, starting with the most senior, and then to custodian bank). pay down principal on the various tranches, again starting Hybrid Securities. Hybrid securities combine both debt with the most senior. No principal payments are made on a and equity characteristics. Types of hybrid securities include, tranche until the entire principal of the more senior tranches without limitation, capital securities, convertible securities, has been repaid. preferred stock, and warrants. Mortgage Pass-Through Securities. Mortgage pass- Capital Securities. Capital securities may be issued through securities represent ownership in “pools” of mortgage in the form of preferred securities or subordinated debt loans and are called “pass-throughs” because principal and securities. Typically, they are subordinated to an issuer’s interest payments are passed through to security holders senior debt, but senior to the issuer’s common stock. monthly. These securities may be issued and guaranteed by an Capital securities may be long-dated or perpetual (i.e., agency of the U.S. government or GSE, or by a private entity. have no maturity) and typically distribute income on a Security holders receive payments based on scheduled monthly, quarterly or semi-annual basis. Issuers are payments of interest and principal and unscheduled permitted to defer income payments (which may or may prepayments of principal on the underlying mortgage loans. not accumulate for future payment). Capital securities The market value of these securities depends, in part, on may contain call or maturity extension features. expectations about the rate at which the underlying loans will Convertible Securities. Convertible securities are be prepaid or default. preferred stock or debt securities that are convertible Municipal Bonds. Municipal bonds are debt obligations into common stock at a specified price during a specified issued by states, municipalities, and other political subdivisions, period of time or upon the occurrence of a specified agencies, authorities, and instrumentalities of states and multi- event, such as a reduction in the issuer’s capital below a state agencies or authorities, the interest on which may be exempt certain threshold. Traditionally, convertible securities from federal and/or state income tax. Municipal bonds include have paid dividends or interest at rates higher than securities from a variety of sectors. common stock dividend rates but lower than Non-U.S. Securities. Each Fund may invest in U.S. dollar- nonconvertible securities. They generally participate in denominated securities of non-U.S. issuers traded in the United the appreciation or depreciation of the underlying stock States. Some Funds may also invest in foreign currency- into which they are convertible, but to a lesser degree. denominated securities of non-U.S. issuers. For purposes of this Preferred Stock. Preferred stock is typically prospectus, non-U.S. (or foreign) issuers are generally non-U.S. subordinated to an issuer’s senior debt, but senior to the governments or companies organized outside the United States, issuer’s common stock. Typically, preferred stock is but the Funds may make a different designation in structured as a long-dated or perpetual bond that certain circumstances. distributes income on a regular basis. Issuers are Private Placement Securities. The Funds may invest in permitted to skip (“non-cumulative” preferred stock) or securities issued in private placements, including 144A securities. defer (“cumulative” preferred stock) distributions. Such securities are subject to legal or contractual restrictions on Preferred stock may be convertible into common stock resale and may include equity or debt securities of U.S. and non- and may contain call or maturity extension features. U.S. issuers that are issued without registration with the SEC, Warrants. Warrants are options to buy a stated including offerings outside the United States. Private placement or number of shares of common stock at a specified price restricted securities are often less liquid than registered securities anytime during the life of the warrants (generally two or traded on established secondary markets and may be considered more years). They can be highly volatile and may have illiquid. no voting rights, pay no dividends, and have no rights Sovereign and Government-Related Debt. Sovereign debt with respect to the assets of the entity issuing them. includes securities issued or guaranteed by a foreign sovereign Mortgage-Backed Securities. Mortgage-backed securities government or its agencies, authorities, or political subdivisions. (MBS) are a type of ABS secured by mortgage loans. Government-related debt includes securities issued by non-U.S. Collateralized Mortgage Obligations. Collateralized regional or local governmental entities or government-controlled mortgage obligations (CMOs) are a type of MBS backed by entities. In the event an issuer of sovereign debt or government- U.S. government agency- or GSE-guaranteed mortgage related debt is unable or unwilling to make scheduled payments of

D ODGE &COX F UNDS ▪ PAGE 29 interest or principal, holders may be asked to participate in a GSE itself, but are given additional support due to the U.S. restructuring of the debt and to extend further credit to the Treasury’s authority to purchase their outstanding debt issuer. obligations. GSEs include, among others, the Federal National U.S. Government Obligations. A portion of each Fund may Mortgage Association (“Fannie Mae”), Federal Home Loan be invested in obligations issued or guaranteed by the U.S. Mortgage Corporation (“Freddie Mac”), the Federal Home Loan government, its agencies, or government-sponsored enterprises Banks, and the Federal Farm Credit Banks. (“GSEs”). Some obligations purchased by the Funds are backed In September 2008, the U.S. Treasury placed Fannie Mae and by the full faith and credit of the U.S. government and are Freddie Mac into conservatorship and has since increased its support guaranteed as to both principal and interest by the U.S. Treasury. of these two GSEs through substantial capital commitments and Examples of these include direct obligations of the U.S. Treasury, enhanced liquidity measures, which include a line of credit. The U.S. such as U.S. Treasury bills, notes, and bonds, and indirect Treasury also extended a line of credit to the Federal Home Loan obligations of the U.S. Treasury, such as obligations of Banks. No assurance can be given that the U.S. government would Government National Mortgage Association, the Small Business provide continued support to GSEs, and these entities’ securities are Administration, the Maritime Administration, the Farmers neither issued nor guaranteed by the U.S. Treasury. Home Administration, and the Department of Veterans Affairs. When-Issued Securities. When-issued securities are securities While the obligations of many of the agencies of the U.S. that have been authorized, but not yet issued. When-issued government are not direct obligations of the U.S. Treasury, they securities are purchased at a specific price for settlement on a future are generally backed indirectly by the U.S. government. Some of date in order to secure what is considered an advantageous price or the agencies are indirectly backed by their right to borrow from yield at the time of entering into the transaction. A fund that the U.S. government, such as the Federal Financing Bank and purchases a when-issued security assumes all the rights and risks of the U.S. Postal Service. Other agencies and GSEs have ownership, including the risks of price and yield fluctuations and historically been supported solely by the credit of the agency or the 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 the investment objectives of any Fund will be achieved. The following table summarizes some of the principal risks involved in investing in each of the Funds and highlights certain differences and similarities among the Funds in their exposure to various types of risks. This is not a complete 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 may create indirect exposure to a variety of risks to which the issuers of those securities are exposed, which may include interest rate, credit, and currency 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 XXX Counterparty Risk X XXXXX Credit Risk XXX Derivatives Risk X XXXXX Emerging Markets Risk X XXXXX Equity Risk X X X X Hybrid Securities Risk X XXXXX Interest Rate Risk XXX Liquidity Risk X XXXXX Manager Risk X XXXXX Market Risk X XXXXX 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 XXXXX Regulatory Risk X XXXXX Sovereign and Government-Related Debt Risk X X X U.S. Municipal Bond Risk XXX

PAGE 30 ▪ D ODGE &COX F UNDS Asset Allocation Risk. Dodge & Cox’s determination of a guarantor’s financial condition, or in the case of ABS, the Fund’s broad asset allocation mix will affect that Fund’s likelihood that the loans backing a security will be repaid in full. A performance. Dodge & Cox’s evaluations and assumptions Fund could lose money if the issuer or guarantor of a debt security regarding asset classes may not successfully achieve the Fund’s becomes bankrupt or subject to a special resolution regime, or is investment objective in view of actual market trends. A Fund’s otherwise unable or unwilling to make timely interest and/or balance between equity and debt securities limits its potential for principal payments, or honor its obligations. Securities are subject capital appreciation relative to an all-stock fund and contributes to to varying degrees of credit risk, which may be reflected by their greater volatility relative to an all-bond fund. credit ratings; however, such ratings may overestimate or Below Investment-Grade Securities Risk. Debt securities underestimate the likelihood of default. The credit risk associated rated below investment grade, also known as “high-yield” or “junk” with corporate debt securities may change as the result of an event securities, have speculative characteristics. Below investment- such as a large dividend payment, leveraged buyout, debt grade securities are often issued by smaller, less creditworthy restructuring, merger, or recapitalization; such events are companies or by highly levered (indebted) companies, which are unpredictable and may benefit shareholders or new creditors at the generally less able than more financially stable companies to make expense of existing debt holders. Credit risk is likely to increase scheduled payments of interest and principal. These securities during periods of economic uncertainty or downturns. If a debt typically yield a higher level of current income than higher-rated security held by a Fund ceases to be rated or is downgraded below a securities, but generally have greater credit and call risk, more permitted threshold, the Fund may, but is not required to, sell the price volatility, and less liquidity. An economic downturn, rising security. interest rates, or negative development with respect to an issuer Derivatives Risk. Derivatives are financial instruments, may affect the price and/or liquidity of a below investment-grade including futures contracts, forwards contracts and swap security more than an investment-grade security, and may reduce a agreements, the values of which are based on the value of one or Fund’s ability to sell these securities at an advantageous time or more underlying assets, such as stocks, bonds, currencies, interest price. An explanation of Moody’s, Fitch’s, and S&P’s rating rates, and market indexes. Derivatives involve risks different from, categories is included in Appendix A to the SAI. and possibly greater than, the risks associated with investing Call Risk. Issuers of callable bonds are permitted to redeem directly in the underlying assets and other more traditional these bonds before their full maturities. Buying a callable bond investments. The market value of derivatives may be more volatile exposes a Fund to economic risks similar to selling call options. than that of other instruments and can be affected by interest rate Issuers may call outstanding securities before their maturity for a changes or other market developments. The use of derivatives may number of reasons, including decreases in prevailing interest rates accelerate the velocity of possible losses. Each type of derivative or improvements to the issuer’s credit profile. If an issuer calls a instrument may have its own special risks, including the risk of security in which a Fund is invested, that Fund could lose potential mispricing or improper valuation and the possibility that a price appreciation and be forced to reinvest the proceeds in derivative may not correlate perfectly or as expected with its securities that bear a lower interest rate or more credit risk. underlying asset, rate, or index. Derivatives create leverage because Counterparty Risk. Non-cleared derivatives, such as currency the upfront payment required to enter into a derivative is often forwards, and other principal (i.e., non-exchange traded) much smaller than the potential for loss (which may in theory be investments are subject to the risk that a counterparty may not unlimited). A derivative may be subject to liquidity risk, especially make payments or deliveries when required to do so. Deterioration during times of financial market distress; certain types of in the actual or perceived creditworthiness of a counterparty may derivatives may be terminated or modified only with the consent affect the value of a derivative or other transaction with that of their counterparties. Derivatives may require a Fund to post counterparty. Historically, a number of broker-dealers and other collateral to secure outstanding exposure, which may cause the financial institutions have experienced extreme financial Fund to forego other investment opportunities. Derivatives are difficulty, sometimes resulting in bankruptcy. Counterparties may subject to Counterparty Risk, as described above. The use of become subject to special resolution regimes in the United States derivatives may cause a Fund’s investment returns to be impacted and other jurisdictions, which may affect a fund’s ability to by the performance of securities the Fund does not own, resulting terminate and exercise remedies in respect of derivative positions. in the Fund’s total investment exposure exceeding the value of its Although we monitor the creditworthiness of our counterparties, portfolio. there can be no assurance that a Fund’s derivative counterparties Derivatives are specialized instruments that may require or an exchange or clearing house will not experience financial investment techniques and risk analyses different from those difficulties, possibly resulting in losses to that Fund. associated with stocks and bonds. Although the use of derivatives Credit Risk. The value of a debt security may decline if the is intended to enhance a Fund’s performance, it may instead market believes it is less likely that the issuer will make all reduce returns and increase volatility, or have a different effect payments of interest and principal as required. This could occur than Dodge & Cox anticipated, especially in unusual or extreme because of actual or perceived deterioration in the issuer’s or a market conditions. Suitable derivatives transactions may not be available in all circumstances and there can be no assurance that a particular derivative position will be available or used by

D ODGE &COX F UNDS ▪ PAGE 31 Dodge & Cox or that, if used, such strategies will be successful. A Interest Rate Risk. Debt securities that pay interest based on Fund may be required to segregate certain of its assets or buy or sell a fixed rate are subject to the risk that they will decline in value if a security at a disadvantageous time or price because regulations interest rates rise. Interest rate changes may occur suddenly and require Funds to maintain offsetting positions or asset coverage in unexpectedly and a Fund may lose money as a result of such connection with certain derivatives transactions. Use of movements. The longer the remaining maturity of a debt security, derivatives may increase the amount and change the timing of the more its price is likely to be affected by changes in interest taxes payable by shareholders. rates. A Fund may choose not to or be unable to hedge itself fully When a derivative is used for hedging purposes, gains against changes in interest rates. If a Fund uses derivatives to hedge generated by the derivative will generally be substantially offset by against changes in interest rates, those hedges may not work as losses on the hedged investment and vice versa. Hedging can intended and may decrease in value if interest rates move reduce or eliminate gains. differently than anticipated. A wide variety of factors can cause The U.S. government and other foreign governments are in interest rates to rise, such as central bank monetary policies, the process of adopting and implementing regulations governing inflation rates, or general economic conditions. The value of non- derivatives markets, including clearing, execution, margin, fixed rate instruments may also decline when interest rates change. reporting, and registration requirements. The ultimate impact of Interest rates are currently at or near historic lows in many the regulations remains unclear, and additional future regulation of countries, including the United States, which may create derivatives may make derivatives more costly, may limit the heightened risk for a Fund investing in fixed income securities. availability of derivatives, or may otherwise adversely affect the Liquidity Risk. Liquidity risk is the risk that a Fund may not value or performance of derivatives. be able to buy or sell an investment at an advantageous time or Emerging Markets Risk. Non-U.S. Investment Risk price, which could force a Fund to hold a security that is declining (described below) may be particularly high to the extent a Fund in value or forego other investment opportunities. An illiquid invests in emerging market securities. Emerging market securities instrument is harder to value because there may be little or no may present issuer, market, currency, liquidity, legal, political, and market data available based on purchases or sales of the other risks different from, and potentially greater than, the risks of instrument. The liquidity of an issuer’s securities may decrease if its investing in securities and instruments tied to developed non-U.S. credit rating falls, it experiences sudden unexpected cash outflows, issuers. Emerging market securities may also be more volatile, less or some other event causes counterparties to avoid trading with or liquid, and more difficult to value than securities economically tied lending to the institution. Liquidity risk is greater for below- to developed non-U.S. issuers. investment grade securities and restricted securities, especially in Equity Risk. Equity securities represent an ownership interest difficult market conditions. Over the past three decades, bond in an issuer rather than a right to receive a specified future markets have grown more quickly than dealer capacity to engage payment. This makes equity securities more sensitive than debt in fixed income trading. In addition, recent regulatory changes securities to changes in an issuer’s earnings and overall financial applicable to financial intermediaries that make markets in debt conditions; as a result, equity securities are generally more volatile securities have restricted or made it less desirable for those than debt securities. Equity securities may lose value as a result of financial intermediaries to hold large inventories of less liquid debt changes relating to the issuers of those securities, such as securities. Because market makers provide stability to a market management performance, financial leverage, or changes in the through their intermediary services, a reduction in dealer actual or anticipated earnings of a company, or as a result of actual inventory may lead to decreased liquidity and increased volatility or perceived market conditions that are not specific to an issuer. in the fixed income markets. Liquidity risk may intensify during Even when the securities markets are generally performing periods of economic uncertainty. Debt securities with longer strongly, there can be no assurance that equity securities held by a durations may face heightened liquidity risk. Fund will increase in value. Because the rights of all of a company’s Unusually high redemption requests or other unusual market creditors are senior to those of equity securities, holders of equities conditions may make it difficult for a Fund to honor redemption are least likely to receive any value if an issuer files for bankruptcy. requests within the permitted period. Meeting such requests could Hybrid Securities Risk. Hybrid securities are typically require a Fund to sell securities at reduced prices or under subordinated to an issuer’s senior debt instruments; therefore, they unfavorable conditions. Other market participants may be are subject to greater credit risk than those senior debt attempting to liquidate debt holdings at the same time as a Fund, instruments. Many hybrid securities are subject to provisions which could increase supply in the market and contribute to permitting their issuers to skip or defer distributions under liquidity risk and downward pricing pressure. specified circumstances. Hybrid securities may have limited or no Manager Risk. Dodge & Cox’s opinion about the intrinsic voting rights and may be substantially less liquid than many other worth or creditworthiness of a company or security may be securities. Certain types of hybrid securities, such as non- incorrect, Dodge & Cox may not make timely purchases or sales of cumulative perpetual preferred stock, are issued predominantly by securities for a Fund, a Fund’s investment objective may not be companies in the financial services industry and thus may present achieved, or the market may continue to undervalue a Fund’s increased risk during times of financial upheaval, which may affect securities. Dodge & Cox applies investment ideas, including target financial services companies more than other types of issuers. allocations and securities position limits, to all eligible client

PAGE 32 ▪ D ODGE &COX F UNDS portfolios within a particular strategy, including funds and separate Non-Diversification Risk. A non-diversified fund (as defined account clients. This means Dodge & Cox may seek very large by the 1940 Act) has the ability to invest a larger percentage of its amounts of particular securities. As a result, certain investment assets in securities of a smaller number of issuers than a diversified opportunities that might be available to a smaller fund may not be fund. If a non-diversified fund chooses to concentrate its available to the Funds. A Fund may not be able to take significant investments, the performance of a single issuer could affect positions in limited investment opportunities or add significantly performance more than if the Fund were invested in a larger to existing positions. In addition, a Fund may not be able to number of issuers. quickly dispose of certain securities holdings. Non-U.S. Currency Risk. Non-U.S. currencies may decline Market Risk. The market price of a security or other relative to the U.S. dollar and affect a Fund’s investments in non- investment may increase or decrease, sometimes suddenly and U.S. currencies, in securities that are denominated in non-U.S. unpredictably. Investments may decline in value because of factors currencies, in securities of issuers that are exposed to non-U.S. affecting markets generally, such as real or perceived challenges to currencies, or in derivatives that provide exposure to non-U.S. the economy, national or international political events, natural currencies. When a given currency depreciates against the U.S. disasters, changes in interest or currency rates, adverse changes to dollar, the value of securities denominated in that currency credit markets, or general adverse investment sentiment. The price typically declines. A U.S. dollar denominated depositary receipt is of investments may reflect factors affecting one or more industries, exposed to currency risk if the security underlying it is such as the price of specific commodities or consumer trends, or denominated in a non-U.S. currency. Currency depreciation may factors affecting particular issuers. During a general downturn in affect the value of U.S. securities if their issuers have exposure to the markets, multiple asset classes may decline in value non-U.S. currencies. Dodge & Cox may not be able to accurately simultaneously. Market disruptions may prevent a Fund from estimate an issuer’s non-U.S. currency exposure. Dodge & Cox implementing investment decisions in a timely manner. may not hedge or may not be successful in hedging a Fund’s Fluctuations in the value of the Fund’s investments will cause that currency exposure. A Fund bears transaction charges for currency Fund’s share price to fluctuate. An investment in a Fund, exchange and currency hedging activities. therefore, may be more suitable for long-term investors who can Non-U.S. Investment Risk. Non-U.S. securities involve bear the risk of short- and long-term fluctuations in a Fund’s share some special risks such as exposure to potentially adverse foreign price. political and economic developments; market instability; Mortgage and Asset-Backed Securities Risk. Mortgage- and nationalization and exchange controls; potentially lower liquidity other asset-backed securities are subject to various risks, including and higher volatility; possible problems arising from accounting, prepayment risk, extension risk, interest rate risk, and credit risk. disclosure, settlement, and regulatory practices that differ from Prepayment risk is the risk that principal will be repaid earlier than U.S. standards; foreign taxes that could reduce returns; higher expected, which means the security will pay less interest over its transaction costs and foreign brokerage and custodian fees; life. A Fund may have to reinvest early repayments of principal in inability to vote proxies, exercise shareholder or bondholder rights, securities that bear a lower rate of interest or more credit risk. pursue legal remedies, and obtain judgments with respect to foreign Prepayments are more likely at times when interest rates decline. investments in foreign courts; possible insolvency of a sub- Extension risk is the risk that principal will be repaid later than custodian or securities depository; and fluctuations in foreign expected, which delays the return of principal to a Fund and may exchange rates that decrease the investment’s value (although prevent a Fund from investing in securities that bear a higher rate favorable changes can increase its value). Non-U.S. stock markets of interest or less credit risk. Delayed repayment of principal may may decline due to conditions unique to an individual country or increase the duration and volatility of a security. Extension risk is within a region, including unfavorable economic conditions more likely at times when interest rates rise. Mortgage- and other relative to the United States or political and social instability or asset-backed securities can be highly sensitive to rising interest unrest. There may be increased risk of delayed settlement of rates, such that even small movements can cause a Fund to lose portfolio transactions or loss of certificates of portfolio securities. value. Mortgage- and other asset-backed securities are subject to Governments in certain foreign countries participate to a credit risk – the risk that a borrower may not make payments of significant degree, through ownership or regulation, in their interest or principal when scheduled. Credit risk is greater for respective economies. Action by such a government could have a mortgage- and other asset-backed securities that are not directly or significant effect on the market price of securities issued in indirectly guaranteed by a U.S. government-sponsored enterprise its country. Certain of these risks may also apply to securities of (GSE) (such as Fannie Mae, Freddie Mac, the Federal Home Loan U.S. issuers with significant non-U.S. operations. Banks, and the Federal Farm Credit Banks). However, GSEs are Regulatory Risk. New laws and regulations promulgated by not guaranteed by the U.S. Treasury and in the event that a GSE governments and regulatory authorities may affect the value of cannot meet its obligations, there can be no assurance that the securities issued by specific companies, in specific industries or U.S. government will provide support. sectors or in all securities issued in the affected country. In times of political or economic stress or market turmoil, governments and regulators may intervene directly in markets and take actions that

D ODGE &COX F UNDS ▪ PAGE 33 may adversely affect certain industries, securities, or specific default with respect to certain sovereign debt obligations. For companies. Government and/or regulatory intervention may example, bankruptcy, moratorium, and other similar laws reduce the value of debt and equity securities issued by affected applicable to issuers of sovereign debt may be substantially companies and may also severely limit a Fund’s ability to trade different from those applicable to corporate debt issuers. those securities. U.S. Municipal Bond Risk. Like other bonds, U.S. municipal Sovereign and Government-Related Debt Risk. An bonds are subject to credit risk, interest rate risk, liquidity risk, and investment in sovereign or other government-related debt involves call risk. However, the obligations of some municipal issuers may risk, including special risks not present in other types of debt not be enforceable through the exercise of traditional creditors’ obligations. The issuer of the sovereign debt or the governmental rights. The reorganization under federal bankruptcy laws of a authorities that control the repayment of the debt may be unable municipal bond issuer may result in the bonds being cancelled or unwilling to repay principal or interest when due. This may without payment. Lawmakers may seek to extend the time for result from political or social factors, the general economic payment of principal or interest, or both, or to impose other environment of a country, or levels of foreign debt or foreign constraints upon enforcement of such obligations. In addition, a currency exchange rates. Holders of sovereign or other significant restructuring of U.S. federal income tax rates or even government-related debt may be requested to participate in the serious discussion on the topic in Congress could cause municipal rescheduling of such debt and to extend further loans to bond prices to fall. The demand for municipal bonds is strongly governmental or government-related entities. To the extent a influenced by the value of tax-exempt income to investors. Lower Fund invests in sovereign or other government-related debt, that income tax rates could reduce the advantage of owning municipal Fund may be exposed to the direct or indirect consequences of bonds. Similarly, changes to state or federal regulation tied to a political, social, and economic changes in various countries, as specific sector could impact the revenue stream for a given subset well as to changes in local tax, insolvency, or other regulatory of the market. regimes. A Fund may have limited legal recourse in the event of a

PAGE 34 ▪ D ODGE &COX F UNDS HOW TO PURCHASE SHARES

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 priced at 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.

TO OPEN AND MAINTAIN AN ACCOUNT TO ADD TO AN ACCOUNT Minimum Investment* Minimum Investment* $2,500 (regular account) $100 $1,000 (IRA)

BY INTERNET Current shareholders can visit the Funds’ Current shareholders can visit the Funds’ website and log in to “Account Access” to open website and log in to “Account Access” to make additional accounts or to exchange shares from subsequent investments directly from your pre- dodgeandcox.com an existing Dodge & Cox Fund account to a established bank account or exchange from new account with the same registration. New another Dodge & Cox Fund account with the shareholders should visit “Invest with Us” to same registration. open an account.

BY MAIL Complete and sign the Account Application or Mail your check with an Invest-By-Mail form IRA Application with a check for investment. detached from your quarterly statement. Call 800-621-3979 or visit the Funds’ website Regular Mail: at dodgeandcox.com to obtain the appropriate Dodge & Cox Funds forms. c/o Boston Financial Data Services P.O. Box 8422 Boston, MA 02266-8422 Express, Certified or Registered Mail: Dodge & Cox Funds Make your check payable to Dodge & Cox Funds. All checks must be made in U.S. dollars and c/o Boston Financial Data Services drawn on U.S. banks. 30 Dan Road Important note: The Funds will not accept third party checks (checks not made payable to Dodge & Cox Canton, MA 02021-2809 Funds), 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.

D ODGE &COX F UNDS ▪ PAGE 35 HOW TO PURCHASE SHARES (continued)

Important note: Only bank accounts held at domestic financial institutions that are Automated Clearing House (ACH) members may be used for telephone or internet transactions. This option will become effective approximately 15 business days after the Account Application or Account Options form is received by Boston Financial Data Services. The price paid for shares of a Fund will be the next determined NAV after Boston Financial Data Services receives your investment instructions in good order. Your order may be canceled if payment is not received by the third business day after your order is placed.

TO OPEN AND MAINTAIN AN ACCOUNT TO ADD TO AN ACCOUNT BY TELEPHONE Current shareholders may call Client Services Current shareholders may call Client Services 800-621-3979 to open an additional account from a pre- to make subsequent investments directly from established bank account or by exchanging a pre-established bank account or to exchange shares from an existing Dodge & Cox Fund from another Dodge & Cox Fund account account into a new account with the same with the same registration. Client Services registration. Monday–Friday New shareholders may not open an account by 8 a.m.–8 p.m. ET telephone at this time. Automated System Current shareholders may call the automated Current shareholders may call the automated 7 days a week system to open an additional account from a system to make subsequent investments directly 24 hours a day pre-established bank account or by exchanging from a pre-established bank account or to shares from an existing Dodge & Cox Fund exchange shares from another Dodge & Cox account to a new account with the same Fund account with the same registration. registration. New shareholders may not open an account by the automated system at this time.

BY WIRE Prior to making an initial investment by wire, a Call Client Services at 800-621-3979 during completed Account Application or IRA business hours to notify the Funds of your Application must have been received by the incoming wire transaction. Wire to: Fund. Once an account number has been State Street Bank assigned, call 800-621-3979 to notify the Fund and Trust Company of your incoming wire transaction. Boston, MA ABA 0110 0002 8 Deposit DDA 9905-351-4 FFC Dodge & Cox (Fund Name) Fund Fund # / Account # Account Registration

AUTOMATICALLY The Funds offer ways to invest automatically. Call Client Services at 800-621-3979 or visit the Funds’ website at dodgeandcox.com and request or download the Account Options Form or IRA Options 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.

PAGE 36 ▪ D ODGE &COX F UNDS Important Information About Purchases To help the government a dispute between the registered or beneficial account owners or prevent the funding of terrorism and money laundering activities, there is reason to believe a fraudulent transaction may occur; to federal law requires all financial institutions, including the Funds, otherwise modify the conditions of purchase and any services at to obtain, verify, and record information that identifies each any time; or to act on instructions believed to be genuine. person who opens an account, and to determine whether such Information Regarding Purchases of the Dodge & Cox person’s name appears on government lists of known or suspected International Stock Fund. The Dodge & Cox International Stock terrorists and terrorist organizations. For your account to be in Fund closed to new investors on January 16, 2015 (the “Close good order, the Funds must obtain the following information: Date”), with certain limited exceptions. In addition, you may not ▪ Name; exchange shares of other Dodge & Cox Funds for shares of the ▪ Date of birth (for individuals); Dodge & Cox International Stock Fund unless you are an existing ▪ Physical residential address (post office boxes are still permitted shareholder of the International Stock Fund. for mailing); and Purchases of shares of the Dodge & Cox International ▪ Social Security Number, Taxpayer Identification Number, or Stock Fund must qualify under one of the following exceptions: other identifying number. Existing Shareholders — An existing shareholder of the Following receipt of your information, the Funds are required Fund (either directly or through an intermediary) may: to verify your identity. You may be asked to provide certain other (i) add to the shareholder’s account through the purchase documentation (such as a copy of a driver’s license or a passport) of additional Fund shares, either with cash or through in order to verify your identity. Additional information may be the reinvestment of dividends and cash distributions; required to open accounts for corporations and other non- (ii) open a new UGMA/UTMA account for which the natural persons. shareholder is the custodian; or The USA PATRIOT Act prohibits the Funds and other (iii) open a new account that is registered in the financial institutions from opening accounts unless the shareholder’s name or has the same taxpayer minimum identifying information listed above is received and identification or social security number assigned to it, the Funds can verify your identity. If the Funds are unable to including a new account opened in connection with a verify your identity, the Funds are required to not open your distribution or roll-over from an individual retirement account, close your account, or take other steps the Funds account, 401(k) plan or other defined contribution deem reasonable. retirement plan that is invested in the Fund. This All purchases are subject to acceptance by a Fund, and the exception applies only to individuals or institutions price of the shares will be the NAV which is next computed after opening accounts for their own benefit and does not receipt by Boston Financial Data Services, or other authorized apply to institutions opening accounts on behalf of agent or sub-agent, of the purchase in proper form (see Pricing of their clients. Institutions that maintain omnibus Shares). If your payment is not received or you pay with a check or account arrangements with the Fund are not allowed ACH transfer that does not clear, your purchase will be canceled. to purchase shares of the Fund in their omnibus You will be responsible for any losses or expenses (including a $20 accounts for clients who do not currently own shares fee) incurred by a Fund or Boston Financial Data Services, and a of the Fund unless the client is eligible to open an Fund can redeem shares you own in this or another identically account under one of the other criteria listed herein. registered Dodge & Cox Fund account as reimbursement. The Retirement Plans — A defined contribution retirement plan Funds and their agents have the right to reject or cancel any (for example, 401(k) plans, profit sharing plans and money purchase purchase, exchange, or redemption due to nonpayment. All plans), 403(b) plan or 457 plan that offers the Fund may open new purchases will be invested in full and fractional shares, and you participant accounts within the plan. Participants in a plan may not will receive a confirmation statement. open a new account outside of the plan under this exception. The Funds do not offer their shares for sale outside of the Gifts — An individual may receive shares of the Fund as a United States. gift from a family member who is an existing shareholder of If you fail to furnish a Fund with your correct and certified the Fund. Social Security or Taxpayer Identification Number, the Fund may Charities — A charitable foundation or trust may receive be required to withhold federal income tax (backup withholding) shares of the Fund from an existing shareholder of the Fund. from dividends, capital gain distributions, and redemptions. Financial Intermediaries Using a Model Portfolio —A The Funds and their agents reserve the right to accept initial registered investment adviser, broker-dealer, insurance company, purchases by telephone; to cancel or rescind any purchase or or bank and trust company that held the Fund in a model portfolio exchange (for example, if an account has been restricted due to prior to the Close Date may open new accounts within that model excessive trading or fraud); to freeze any account and temporarily for new and existing clients. Approved or recommended lists are suspend services on the account when notice has been received of not considered model portfolios.

D ODGE &COX F UNDS ▪ PAGE 37 Institutions that have Selected the Fund —An the Fund; (ii) reject any investment or refuse any exception, institutional investor that has notified Dodge & Cox in writing including those detailed above, that it believes will adversely that it has selected the Fund for investment by the Close Date affect its ability to manage the Fund; and (iii) close or re-open may invest in the Fund within one year of the Close Date. the Fund to new or existing shareholders at any time. An Certain Dodge & Cox Affiliates — Current trustees or investment is subject to management’s determination of your officers of Dodge & Cox Funds, employees of Dodge & Cox, or a eligibility to buy shares of the Fund and you may be required to member of the immediate family of any of these persons may provide additional documentation or otherwise demonstrate invest in the Fund. eligibility before an investment is accepted. Once an account is closed, additional investments will not The Dodge & Cox International Stock Fund’s closing does be accepted unless you meet one of the specified criteria above. not restrict you from redeeming shares of the Fund. The Management reserves the right to: (i) make additional exceptions Dodge & Cox Stock, Global Stock, Balanced, Income and that, in its judgment, do not adversely affect its ability to manage Global Bond Funds remain open to all investors.

HOW TO REDEEM OR EXCHANGE SHARES

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 after Boston 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 corporate resolution dated within the last six months (or a certified corporate resolution and letter of indemnity) that accompanies the request or is on 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’s NAV. 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.

ACCOUNT TYPE BY INTERNET All Accounts (Except IRAs, retirement plans, corporate, and certain institutional accounts) Visit the Funds’ website at dodgeandcox.com and log in to “Account Access” to place a dodgeandcox.com sell order.

All Accounts including IRAs (except retirement plans, corporate, and certain institutional accounts) You may exchange shares from a Fund to open an account in another Fund or to add to an existing account with an identical registration.

PAGE 38 ▪ D ODGE &COX F UNDS BY MAIL All Accounts Visit the Funds’ website at dodgeandcox.com and download, complete, and mail in the Redemption Request Form for a taxable account or an IRA Distribution Request Form for Regular Mail: an IRA to sell shares. These forms can also be obtained by calling Client Services at Dodge & Cox Funds 800-621-3979. c/o Boston Financial Data Services P.O. Box 8422 Current shareholders may exchange shares into a new account with the same registration Boston, MA 02266-8422 by providing written instructions. To exchange shares into an account with a different registration (including a different name, address, or taxpayer identification number, you Express, Certified or Registered Mail: must provide Boston Financial Data Services with written instructions that include the Dodge & Cox Funds Medallion guaranteed signature of all current account owners. See Medallion Signature c/o Boston Financial Data Services Guarantees and Change in Account Registration and Transfer of Shares. 30 Dan Road Canton, MA 02021-2809

BY TELEPHONE All Accounts 800-621-3979 You may call Client Services during business hours to sell or exchange shares. You can exchange shares from a Fund to open an account in another Fund or to add to an existing Client Services account with an identical registration. Monday–Friday 8 a.m.–8 p.m. ET All Accounts (except IRAs, retirement plans, corporate, and certain institutional accounts) Automated System You may call the automated system at any time to place a sell order. 7 days a week 24 hours a day All Accounts Including IRAs (except certain retirement plans, corporate, and certain institutional accounts) You may exchange shares from a Fund to open an account in another Fund or to add to an 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 800-621-3979 or visit the Funds’ website at dodgeandcox.com and request or download the Account Options Form or IRA Distribution Request Form to establish this service. See Systematic Withdrawal Plan.

REDEMPTION PAYMENTS MAY BE MADE BY CHECK, Medallion Signature Guarantees You will need to have WIRE, OR ACH your signature Medallion guaranteed in certain situations, By Check Checks will be made payable to you and will be sent to such as: your address of record. If the proceeds of the redemption are ▪ Written requests to wire redemption proceeds (if not requested to be sent to other than the address of record or if the previously authorized on the Account Application); address of record has been changed within 30 days of the ▪ Sending redemption proceeds to any person, address, or bank redemption request, the request must be in writing with your account not on record; and signature(s) Medallion guaranteed. ▪ Transferring redemption proceeds to a Dodge & Cox Fund By Wire The Fund will wire redemption proceeds only to account with a different registration (name/ownership) the bank account designated on the Account Application or in from yours. written instructions — with Medallion signature guarantee — A Medallion Signature Guarantee may be obtained from a received with the redemption order. domestic bank or trust company, broker, dealer, clearing By ACH Redemption proceeds can be sent to your bank agency, savings association, or other financial institution account by ACH transfer. You can elect this option by which participates in a Medallion program recognized by the completing the appropriate section of the Account Application. Securities Transfer Association. Signature guarantees from There is a $100 minimum per ACH transfer. financial institutions which do not participate in a Medallion program will not be accepted. A notary public cannot provide Medallion Signature Guarantees.

D ODGE &COX F UNDS ▪ PAGE 39 Redemptions-in-kind The Funds reserve the right, if least $2,500 ($1,000 for an IRA) in order to remain open. The conditions exist which make cash payments undesirable, to honor Funds reserve the right to terminate or materially modify the any request for redemption by making payment in whole or in part exchange privilege upon 60 days’ advance notice to shareholders. in readily marketable securities chosen by a Fund and valued as Telephone and Internet Transactions By using telephone or they are for purposes of computing a Fund’s NAV. If payment is internet purchase, redemption, and/or exchange options, you agree made in securities, a shareholder may incur transaction expenses in to hold the Funds, Dodge & Cox, Boston Financial Data Services, converting these securities to cash. The Funds have elected, and each of their respective directors, trustees, officers, employees, however, to be governed by Rule 18f-1 under the Investment and agents harmless from any losses, expenses, costs, or liability Company Act, as a result of which a Fund is obligated to redeem (including attorney fees) which may be incurred in connection shares, with respect to any one shareholder of record during any with the exercise of these privileges. Generally, all shareholders are 90-day period, solely in cash up to the lesser of $250,000 or 1% of automatically eligible to use these options. However, you may elect the net asset value of the Fund at the beginning of the period. to decline these options. By permitting telephone or internet IRAs Redemption requests for Traditional IRAs must include redemptions for your account, you may be giving up a measure of instructions regarding federal income tax withholding. Unless you security that you might have if you were to redeem your shares in have elected otherwise, your redemptions will be subject to income writing. In addition, interruptions in service may mean that you tax withholding. State withholding may also apply. will be unable to effect a redemption by telephone or internet Important Information About Redemptions Under certain when desired. For any questions regarding telephone or Internet circumstances, Boston Financial Data Services may require transactions please call Client Services (800-621-3979). If a Fund additional documents, including stock powers with signatures does not employ reasonable procedures to confirm that the Medallion guaranteed, trust instruments, death certificates, instructions received from any person with appropriate account appointments as executor, and certificates of corporate authority. If information are genuine, the Fund may be liable for losses due to certificates have been issued for any of the shares to be redeemed, unauthorized or fraudulent instructions. such certificates must be delivered to Boston Financial Data If you are unable to reach a Fund by telephone or via the Services. For any questions regarding documentation or signature internet because of technical difficulties, market conditions, or a requirements for trusts, estates, corporations, etc., please call natural disaster, you should make purchase, redemption, and Client Services (800-621-3979). exchange requests by regular or express mail. You may experience The redemption price will be the NAV which is next delays in exercising telephone redemption privileges, including computed after receipt of a redemption request in good order (see during periods of abnormal market activity. During periods of Pricing of Shares) by Boston Financial Data Services or other volatile economic or market conditions, you may want to consider authorized agent or sub-agent. The redemption price may be more transmitting redemption orders by internet or overnight courier. or less than your cost, depending upon the market value of a If an account has multiple owners, a Fund may rely on the Fund’s investments at the time of redemption. instructions of any one account owner. You should note that If, subsequent to placing a redemption order, market fluctuations purchase and sales orders will not be canceled or modified once cause the value of your account to fall below the requested received in good order. redemption amount, your entire account will be redeemed. Redemption payments are made as soon as practicable, generally within two business days, but under normal TRANSACTIONS THROUGH FINANCIAL circumstances no later than the seventh day after the effective date INTERMEDIARIES for redemption, or within such shorter period as may legally be You may purchase or sell Fund shares through a Financial required. If shares are redeemed within two weeks of purchase, a Intermediary, which may charge you a fee for this service and may Fund may delay payment of the redemption proceeds until your require different minimum initial and subsequent investments than purchase check or ACH purchase has cleared, which may take up the Funds. Financial Intermediaries may also impose other charges to 15 days. There is no such delay when shares being redeemed or restrictions different from those applicable to shareholders who were purchased by wiring Federal funds. The Funds may suspend invest in the Funds directly. A Financial Intermediary may be the your redemption right or postpone payment at times when the shareholder of record of your shares. The Funds, Dodge & Cox, NYSE is closed, trading on the NYSE is restricted, or under any Boston Financial Data Services, and each of their respective emergency or other circumstances as determined by the SEC. directors, trustees, officers, employees, and agents are not Exchanging Shares An exchange is treated as a redemption responsible for the failure of any Financial Intermediary to carry and a purchase; therefore, you may realize a taxable gain or loss. out its obligations to its customers. You should read the current prospectus of the Fund into which the Payments to Financial Intermediaries Dodge & Cox, at its exchange is being made. expense without additional cost to the Funds or their There is a $1,000 minimum for all exchanges. If a new shareholders, may provide additional compensation to certain account is being opened by exchange, the minimum investment Financial Intermediaries with respect to the Funds. These requirements must be met. After the exchange, the account from payments may be made, at the discretion of Dodge & Cox, to which the exchange is made must have a remaining balance of at

PAGE 40 ▪ D ODGE &COX F UNDS Financial Intermediaries for shareholder recordkeeping or other ▪ Required distributions from individual retirement accounts administrative services provided to eligible defined contribution (IRA), pension or other retirement plans, and charitable employee benefit plans holding the Funds. The level of organizations or endowments; payments made to a qualifying Financial Intermediary in any ▪ IRA transfers of assets, Roth IRA conversions, or given year will equal approximately 0.10% of the market value IRA recharacterizations; and of the Stock, Global Stock, International Stock, and Balanced ▪ Shares purchased through certain “fund of funds” and asset Fund accounts and 0.08% of the market value of Income and allocation programs. Global Bond Fund accounts serviced by the Financial Excessive trading may present risks to you or to a Fund in Intermediary. A number of factors will be considered in which you are a shareholder, including: determining whether compensation should be paid to a Financial ▪ Negative impact on a Fund’s performance; Intermediary, including the qualifying Financial Intermediary’s ▪ Dilution in the value of a Fund’s shares; willingness to enter into an Administrative Service Agreement (or ▪ Interference with the efficient management of a Fund’s equivalent), the recordkeeping, reporting, or other services to be portfolio, such as the need to maintain undesirably large cash provided, and the quality of the relationship with such Funds. positions or to buy or sell securities it otherwise would not have Dodge & Cox makes these payments to help defray the costs bought or sold; incurred by qualifying Financial Intermediaries in connection with ▪ Losses on the sale of investments resulting from the need to sell efforts to maintain employee benefit plan accounts for participants securities at less favorable prices; in a cost-efficient manner; however, Dodge & Cox does not audit ▪ Increased taxable gains to a Fund’s remaining shareholders the Financial Intermediaries to verify the extent or nature of resulting from the need to sell securities to meet redemption services provided. Dodge & Cox will, on a periodic basis, requests; and determine the advisability of continuing these payments. These ▪ Increased brokerage and administrative costs. payments may be more or less than the payments received by These risks may be greater to the extent a Fund invests in Financial Intermediaries with respect to other mutual funds and non-U.S. securities, which are believed to be more susceptible to may influence your Financial Intermediary to make available a pricing inefficiencies and time zone arbitrage. Time zone arbitrage Fund over other mutual funds. You should ask your Financial may occur because of time zone differences between the foreign Intermediary about these differing and divergent interests and how markets on which the Funds’ non-U.S. portfolio securities trade it is compensated for administering your Fund investment. and the time as of which the Funds’ NAV is calculated. For example, traders engaging in time zone arbitrage may seek to exploit changes in value of the Funds’ portfolio securities that EXCESSIVE TRADING LIMITATIONS result from events occurring after foreign market prices are established, but before calculation of the Funds’ NAV. The Funds are intended for long-term investment purposes and not Arbitrageurs who are successful may dilute the interests of other for market timing or excessive short-term trading (excessive shareholders by trading shares at prices that do not fully reflect trading). The Funds’ Board of Trustees has approved policies and their fair value. The Funds have pricing and valuation procedures procedures designed to detect and deter excessive trading in that are intended to reduce the potential for dilution and other the Funds. adverse effects that can result from pricing inefficiencies. Although Although there is no generally applied standard in the the Funds’ excessive trading policy and pricing and valuation marketplace as to what level of trading activity is excessive, a Fund procedures are designed to prevent time zone arbitrage, there can may consider that you have violated the excessive trading policy if be no assurances that such policies and procedures will be it determines: completely effective. See Pricing of Shares. ▪ You sell or exchange shares within a short period of time after Trade Activity Monitoring The Funds monitor selected trades the shares were purchased; on a daily basis. Trade activity monitoring may include: ▪ You enter into a series of transactions that is indicative of an ▪ Reviewing accounts where a purchase and sale occurs within a excessive trading pattern or strategy; or short period of time; ▪ The Fund reasonably believes that you have engaged in such ▪ Reviewing transaction amount thresholds; and practices in connection with other mutual funds. ▪ Making comparisons against the Funds’ “known offenders” Certain transactions are exempt from the excessive database which contains information about investors who have trading policy: violated the excessive trading policy. ▪ Shares purchased through reinvested distributions (dividends If the Funds determine that an investor has violated the and capital gains); excessive trading policy, the Funds will temporarily or permanently ▪ Shares purchased through an automatic investment plan; restrict the account from subsequent purchases (including ▪ Shares sold through a systematic withdrawal plan; purchases by exchange). In determining whether to take such ▪ Scheduled retirement plan contributions; actions, the Funds seek to act in a manner that is consistent with the best interests of Fund shareholders.

D ODGE &COX F UNDS ▪ PAGE 41 Whether or not the excessive trading policy has been OTHER TRANSACTION INFORMATION violated, the Funds may determine from the amount, frequency, or pattern of purchases and redemptions that a shareholder is engaged Change in Account Registration and Transfer of Shares in excessive trading that is or could be detrimental to a Fund and Changes in account registrations, such as changing the name(s) on its shareholders and that trading restrictions are warranted. The your account or transferring shares to another person or legal Funds may consider the trading history of accounts under common entity, must be submitted in writing and may require a Medallion ownership or control for the purpose of enforcing the excessive signature guarantee. If, subsequent to making a transfer request, trading policy. If a Fund believes that the excessive trading may be market fluctuations cause the value of your account to fall below for legitimate purposes, the Fund may permit the investor to justify the requested transfer amount, your entire account will be the activity. Transactions placed through the same financial transferred. Please call Client Services at 800-621-3979 or visit the intermediary on an omnibus basis may be deemed part of a group Funds’ website at dodgeandcox.com and request or download the for the purpose of this policy and may be rejected in whole or in Change of Registration Form, the Gift of Shares Form, or the part by a Fund. Inheritance Form to effect this change. The Funds or an authorized agent or sub-agent may reject any purchase order (including exchange purchases) by any investor or group of investors indefinitely, with or without prior notice to the ESCHEATMENT OF ABANDONED PROPERTY investor, for any reason, including, in particular, purchases that they believe are attributable to excessive traders or are otherwise The following information provides a general summary of U.S. excessive or potentially disruptive to a Fund. Such purchase orders states’ unclaimed or abandoned property laws. A Fund may be may be revoked or cancelled by a Fund on the next business day required to escheat (transfer to the state) your assets if they are after receipt of the order. deemed abandoned under a state’s unclaimed or abandoned The implementation of the Funds’ excessive trading policy property law. involves judgments that are inherently subjective and involve Abandoned Property State unclaimed or abandoned property some selectivity in their application. The Funds, however, seek to laws generally apply to both: make judgments that are consistent with the interests of the Funds’ ▪ Unclaimed securities, including shares of the Fund; and shareholders. No matter how the Funds define excessive trading, ▪ Uncashed dividends or other distributions from the Fund. other purchases and sales of Fund shares may have adverse effects In the event that uncashed dividends or other distributions on the management of a Fund’s portfolio and its performance. are deemed abandoned, the amounts of such dividends or Additionally, due to the complexity and subjectivity involved in distributions will be required to be reported and remitted to the identifying excessive trading and the volume of Fund shareholder applicable state. The state is required to hold such amounts until transactions, there can be no guarantee that the Funds will be able reclaimed by the owner, but will generally not pay interest on any to identify violations of the excessive trading policy or to reduce or amounts that are reclaimed. eliminate all detrimental effects of excessive trading. In the event that your shares of a Fund are deemed Financial Intermediaries In general, it is the Funds’ abandoned, the Fund will be required to escheat or deliver the expectation that each Financial Intermediary will enforce either shares to the applicable state. The state is then typically permitted the Funds’ or its own excessive trading policy. As a general matter, to sell or liquidate the shares at the prevailing market price. In the the Funds do not directly monitor the trading activity of beneficial event that you seek to reclaim the escheated shares after they have owners of the Funds’ shares who hold those shares through third- been liquidated, you will generally be able to recover only the party 401(k) and other group retirement plans and other omnibus amount received by the state when it sold the shares, and not any arrangements maintained by Financial Intermediaries. Although appreciation that may otherwise have been realized had the shares the Funds have entered into information sharing agreements with not been liquidated. The escheat of shares to the state may also Financial Intermediaries, which give the Funds the ability to result in tax penalties to you if the shares were held in a tax- request information regarding the trading activity of beneficial deferred account such as an IRA. You should consult your tax owners and to prohibit further purchases by beneficial owners who adviser for advice about the particular tax consequences associated violate the Funds’ excessive trading policy, the ability of the Funds with the escheatment of your shares. to monitor, detect, and curtail excessive trading through Financial The rules for determining when a security or security Intermediaries’ accounts may be limited, and there is no guarantee distribution is required to be reported and delivered to the state that the Funds will be able to identify shareholders who may have vary considerably by state and may depend on the type of account violated the Funds’ excessive trading policy. Depending on the in which the security is held. Some states require escheatment if portion of Fund shares held through such Financial Intermediaries, you have had no contact with the Fund within a specified time excessive trading through Financial Intermediaries could adversely period (generally, three or five years). Other states require affect Fund shareholders. Fund shareholders who invest through escheatment only if mailings sent to you are returned as Financial Intermediaries should contact the Financial Intermediary undeliverable by the United States Postal Service. Other states regarding its excessive trading policies, which may impose different may have different rules. standards and consequences for excessive trading.

PAGE 42 ▪ D ODGE &COX F UNDS Please check your state’s unclaimed or abandoned property on the exchange that is determined to be the primary market for department website for specific information. the security. Debt securities and non-exchange traded derivatives Reinvestment of Uncashed Checks If a dividend, capital are valued based on prices received from independent pricing gains, or redemption check remains uncashed for at least six services which utilize both dealer-supplied valuations and pricing months, the Fund reserves the right to reinvest the amount of the models. Exchange-traded derivatives are valued at the settlement check into your account at the NAV calculated as of the day of price determined by the relevant exchange. Mutual funds are reinvestment. The Fund may also reinvest all subsequent dividend valued at their respective net asset values. and capital gain distributions in shares of the Fund. Interest will If market quotations are not readily available or if a security’s not accrue on amounts represented by uncashed checks. The value is believed to have materially changed after the close of the reinvestment of dividends or other distributions to your account security’s primary market but before the close of trading on the will not necessarily prevent such amounts or your shares of the NYSE, the security is valued at fair value as determined in good Fund from being escheated to the state. faith by or under the direction of the Funds’ Board of Trustees. Escheatment Prevention In order to prevent your assets from The Board of Trustees has delegated authority to Dodge & Cox, being deemed abandoned and escheated to a state, we recommend the Fund’s investment manager, to make fair value determinations that you maintain contact with the Fund in a manner that in accordance with the Dodge & Cox Funds Valuation Policies demonstrates activity under the relevant state’s laws. For example, (“Valuation Policies”), subject to Board oversight. Dodge & Cox accessing your account through the Funds’ secure website at has established a Pricing Committee that is comprised of dodgeandcox.com on at least an annual basis could prevent your representatives from Treasury, Legal, Compliance, and Operations. account from being deemed abandoned under the laws of some, but The Pricing Committee is responsible for implementing the not all, states. In some states, calling into Client Services at Valuation Policies, including determining the fair value of 800-621-3979 and going through the automated security verification securities when market quotations or market-based valuations are process or speaking to a Client Service representative may satisfy the not readily available or are deemed unreliable. The Pricing activity requirements. Additionally, please notify us of any name and Committee considers relevant indications of value that are address changes immediately and cash dividend and redemption reasonably available to it in determining the fair value assigned to checks from your account(s) promptly. a particular security, such as the value of similar financial instruments, trading volumes, contractual restrictions on disposition, related corporate actions, and changes in economic PRICING OF SHARES conditions. In doing so, the Pricing Committee employs various methods for calibrating fair valuation approaches, including a The share price (net asset value per share or NAV) for a Fund is regular review of key inputs and assumptions, back-testing, and calculated as of the close of trading on the NYSE (generally 4 p.m. review of any related market activity. ET) each day the NYSE is open for business. The NAV is As trading in securities on most foreign exchanges is normally calculated by dividing Fund net assets (i.e. total assets minus total completed before the close of the NYSE, the value of non-U.S. liabilities) by the number of shares outstanding. For purposes of securities can change by the time the Fund calculates its NAV. To determining the NAV, security transactions are normally recorded address these changes, the Fund may utilize adjustment factors one business day after the trade date. provided by an independent pricing service to systemically value If a Fund, or its authorized agent or sub-agent, receives your non-U.S. securities at fair value. These adjustment factors are request in good order by the close of trading on the NYSE based on statistical analyses of subsequent movements and changes (generally 4 p.m. ET), your transactions will be priced at that day’s in U.S. markets and financial instruments trading in U.S. markets NAV. If your request is received after the NYSE close, it will be that represent foreign securities or baskets of securities. priced at the next business day’s NAV. Valuing securities through a fair value determination involves A Fund cannot accept orders that request a particular day or greater reliance on judgment than valuation of securities based on price for your transaction or any other special conditions. The time readily available market quotations. In some instances, lack of at which transactions and shares are priced and the time until information and uncertainty as to the significance of information which orders are accepted may be changed in case of an emergency may lead to a conclusion that a prior valuation is the best or if the NYSE closes at a time other than 4 p.m. ET. indication of a security’s value. When fair value pricing is Some securities may be listed on foreign exchanges that are employed, the prices of securities used by a Fund to calculate its open on days (such as U.S. holidays) when the Funds do not NAV may differ from quoted or published prices for the same calculate their NAVs. This could cause the value of a Fund’s securities. portfolio investments to be affected by trading on days when you cannot buy or sell shares. For purposes of calculating the NAV, portfolio securities and other financial instruments for which market quotations are readily available are valued at market value. Listed securities are generally valued using the official quoted close price or the last sale

D ODGE &COX F UNDS ▪ PAGE 43 INCOME DIVIDENDS AND CAPITAL GAIN In general, if your Fund shares are held in a taxable account, DISTRIBUTIONS you will be taxed on dividends you receive from a Fund, regardless of whether they are paid to you in cash or reinvested in additional Income dividends and capital gain distributions are reinvested Fund shares. If a Fund declares a dividend in October, November, in additional Fund shares in your account unless you select another or December but pays it in January, you may be taxed on the option on your Account Application. The advantage of reinvesting dividend as if you received it in the previous year. arises from compounding; that is, you receive income dividends Under current law, a portion of the income dividends paid to and capital gain distributions on an increasing number of shares. you by a Fund may be qualified dividends subject to a maximum tax Income dividends and capital gains distributions not reinvested are rate of either 15% or 20%, depending on whether your income paid by check or transmitted to your bank account electronically exceeds certain threshold amounts. In general, income dividends using the ACH network. from domestic corporations and qualified foreign corporations will be Important tax note: A Fund’s income dividends and capital permitted this favored federal tax treatment. Income dividends from gains distributions, whether received in cash or reinvested in interest earned by a Fund on debt securities and dividends received additional shares of the Fund, may be subject to federal and state from unqualified foreign corporations will continue to be taxed at the income tax. higher ordinary income tax rates. Distributions of qualified dividends Income Dividends Dodge & Cox Stock, Balanced, Income, and will be eligible for these reduced rates of taxation only if you own Global Bond Funds declare and pay net investment income dividends your shares for at least 61 days during the 121-day period beginning (if any) quarterly in March, June, September, and December. 60 days before the ex-dividend date of any dividend. Dodge & Cox Global Stock Fund and International Stock Fund Fund distributions of short-term capital gains are taxable to declare and pay dividends (if any) annually in December. you as ordinary income. Fund distributions of long-term capital Capital Gain Distributions A capital gain or loss is the gains are taxable as long-term capital gains no matter how long difference between the purchase and sale price of a security. If a you have owned your shares. Long-term capital gain distributions Fund has net capital gains for the period January through October, are currently generally taxed at a maximum rate of either 15% or those gains are usually declared and paid in December. If a Fund 20%, depending on whether your income exceeds certain has additional net capital gains for the period November through threshold amounts. December, those additional gains are usually declared and paid in An additional 3.8% Medicare tax is imposed on certain net March (for the Stock, Balanced, Income, and Global Bond Funds) investment income (including ordinary dividends and capital gain or December (for the International Stock and Global Stock Funds) distributions received from a Fund and net gains from redemptions of the following year. or other taxable dispositions of Fund shares) of U.S. individuals, Buying a Distribution: Unless you are investing through a estates, and trusts to the extent that such person’s “modified tax-deferred retirement account (such as an IRA or 401(k) adjusted gross income” (in the case of an individual) or “adjusted plan), it may not be to your advantage to buy shares of a Fund gross income” (in the case of an estate or trust) exceeds certain shortly before the Fund makes a distribution. This is known as threshold amounts. “buying a distribution.” Buying a distribution can cost you If you hold your Fund shares in a tax-deferred retirement money in taxes as you will receive, in the form of a taxable account, such as an IRA, you generally will not have to pay tax on distribution, a portion of the money you just invested. To avoid dividends until they are distributed from the account. These buying a distribution, check the Fund’s distribution schedule accounts are subject to complex tax rules, and you should consult (which can be found at dodgeandcox.com or by calling your tax adviser about investment through a tax-deferred account. 800-621-3979) before you invest. Each Fund you invest in will send you a tax report each year. In February, you will be sent Form 1099-DIV indicating the The report will tell you which dividends must be treated as taxable tax status of any dividend and capital gain distributions made to ordinary income, qualified dividends, or long-term capital gains. you during the previous year. This information will also be Part of Dodge & Cox Stock, Global Stock, International reported to the IRS. Stock, and Balanced Funds’ income dividends may be eligible for the 70% deduction for dividends received by corporations. Foreign taxes paid by Dodge & Cox Global Stock Fund and International FEDERAL INCOME TAXES Stock Fund, on its investments may, subject to certain limitations, be passed through to you as a foreign tax credit, assuming the Fund The following information is meant as a general summary for U.S. satisfies certain requirements. State taxation of distributions to taxpayers. Please see the SAI for additional information. You shareholders varies from state to state. should consult your own tax adviser for advice about the particular As with all mutual funds, a Fund may be required to withhold federal, state, and local or foreign tax consequences to you of U.S. federal income (currently at a rate of 28%) on all taxable investing in a Fund. distributions payable to you if you fail to provide a Fund with your Taxes and Income Dividends and Capital Gains correct taxpayer identification number or to make required Distributions Each Fund will distribute substantially all of its certifications, or if you or a Fund have been notified by the IRS income and capital gains to its shareholders every year. that you are subject to backup withholding. Backup withholding is

PAGE 44 ▪ D ODGE &COX F UNDS not an additional tax, but is a method by which the IRS ensures Fund, and Dodge & Cox Global Bond Fund each pay that it will collect taxes otherwise due. Any amounts withheld may Dodge & Cox a management fee which is payable monthly at the be credited against your U.S. federal income tax liability. annual rate of 0.50% of the average daily net asset value of the Cost Basis and Taxes on Sales (Redemptions) and Fund. Dodge & Cox Global Stock Fund and Dodge & Cox Exchanges If your shares are held in a taxable account, you will International Stock Fund each pay Dodge & Cox a management generally have a taxable capital gain or loss if you sell your Fund fee which is payable monthly at the annual rate of 0.60% of the shares or exchange them for shares of a different Fund. The average daily net asset value of the Fund. Dodge & Cox Income amount of the gain or loss and the rate of tax will depend primarily Fund pays Dodge & Cox a management fee which is payable upon how much you paid for the shares (your “cost basis”), how monthly at the annual rate of 0.50% of the average daily net asset much you sold them for, and how long you held them. value of the Fund up to $100 million and 0.40% of the average Your total cost basis is generally the original amount paid for daily net asset value of the Fund in excess of $100 million. Until Fund shares, plus the value of reinvested dividends and capital April 30, 2016, Dodge & Cox has contractually agreed to gains distributions. If you acquire Fund shares on or after reimburse the Dodge & Cox Global Bond Fund for all ordinary January 1, 2012, generally referred to as “covered shares,” and expenses to the extent necessary to maintain the ratio of total subsequently sell or exchange those shares, the Fund is required to operating expenses to average net assets at 0.60%. The agreement report cost basis information to you and to the IRS. Unless you is renewable annually thereafter and is subject to termination upon specify an alternate cost basis method, the Funds will default to the 30 days’ written notice by either party. This expense average cost method when calculating cost basis. If you hold Fund reimbursement agreement has been effect since the Global Bond shares in an account held by a broker/dealer, financial institution, Fund’s inception, without which returns for the Fund would have or investment adviser, that firm may select a different default been lower. method. In those cases, please contact the firm holding your A discussion regarding the basis for the Board of Trustees account to obtain information with respect to the cost basis approving the Funds’ Investment Management Agreements is calculation methods available for your account. available in each Fund’s Annual Report, which covers the Additional information about cost basis reporting is available 12-month period ending December 31 each year. at dodgeandcox.com/cost basis. Wholly-owned Subsidiaries The Dodge & Cox Global Stock Fund and Dodge & Cox International Stock Fund may invest in the Dodge & Cox Global Stock Fund Cayman, Ltd. and FUND ORGANIZATION AND MANAGEMENT Dodge & Cox International Stock Fund Cayman, Ltd., respectively, each of which is a wholly-owned subsidiary of the Fund Organization Dodge & Cox Funds, a Delaware statutory respective Fund organized under the laws of the Cayman Islands trust, is a family of six no-load mutual funds. Dodge & Cox (each a “Subsidiary”). The Dodge & Cox Global Bond Fund may Balanced Fund was established in 1931; Dodge & Cox Stock Fund also establish a similar wholly-owned subsidiary if deemed in 1965; Dodge & Cox Income Fund in 1989; Dodge & Cox advisable by Dodge & Cox. Each Fund may invest in its Subsidiary International Stock Fund in 2001; Dodge & Cox Global Stock to gain exposure to non-U.S. registered securities. Each Subsidiary Fund in 2008; and Dodge & Cox Global Bond Fund in 2014. has entered into a separate Investment Management Agreement Investment Manager Dodge & Cox, a California corporation, with Dodge & Cox for the management and administration of the has served as investment manager to the Funds and their Subsidiary’s portfolio. Dodge & Cox is not compensated by a predecessors since inception. Dodge & Cox is one of the oldest Subsidiary for the services it provides to the Subsidiary. As professional investment management firms in the United States, described above, Dodge & Cox receives a management fee from having acted continuously as investment managers since 1930. each Fund based on the average daily net assets of the Fund, which Dodge & Cox is located at 555 California Street, 40th Floor, includes any amounts invested in a Subsidiary. The Dodge & Cox San Francisco, California 94104. Global Stock Fund, Dodge & Cox International Stock Fund, and Dodge & Cox’s activities are devoted to investment research Dodge & Cox Global Bond Fund will each bear the operating and the supervision of investment accounts for individuals and expenses of the relevant Subsidiary. institutions. Dodge & Cox Stock Fund, Dodge & Cox Balanced

D ODGE &COX F UNDS ▪ PAGE 45 INVESTMENT COMMITTEES

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’s Investment Policy Committee (IPC), and in general no one IPC member is primarily responsible for making investment recommendations for the Stock and Balanced Funds. IPC is also responsible for determining the asset allocation of the Dodge & Cox Balanced Fund. IPC consists of the following nine members:

Years with Committee Member Position(s) with Funds Business Experience During the Past Five Years Dodge & Cox John A. Gunn Senior Vice President Chairman Emeritus (2011-2013), Chairman (2007-2011), Chief Executive 43 Officer (2007-2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager, and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President (until 31 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and FIIPC C. Bryan Cameron Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge & 32 Cox; Director of Research, Portfolio Manager, Investment Analyst, and member of IPC and IIPC Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 27 (since 2011) of Dodge & Cox; Director of International Equity (since 2009), Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and GBIPC (since 2014) David C. Hoeft Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 22 (since 2011) of Dodge & Cox; Associate Director of Research (since 2009), Portfolio Manager, Investment Analyst, and member of IPC Gregory R. Serrurier Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge & 31 Cox; Portfolio Manager and member of IPC and IIPC 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, and 19 member of IPC and GSIPC Philippe Barret, Jr. Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, Investment 11 Analyst, and member of IPC (since 2013)

PAGE 46 ▪ D ODGE &COX F UNDS 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 the following seven members:

Years with Committee Member Position(s) with Funds Business Experience During the Past Five Years Dodge & Cox Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President (until 31 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and FIIPC Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 27 (since 2011) of Dodge & Cox; Director of International Equity (since 2009), Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and GBIPC (since 2014) Steven C. Voorhis Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 19 member of IPC and GSIPC Karol Marcin Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 15 member of GSIPC Lily S. Beischer Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 14 member of GSIPC Roger G. Kuo Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 17 member of IIPC and GSIPC (since 2010) Raymond J. Mertens Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 12 member of GSIPC (since 2014)

D ODGE &COX F UNDS ▪ PAGE 47 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 of the following nine members:

Years with Committee Member Position(s) with Funds Business Experience During the Past Five Years Dodge & Cox Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President 31 (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and FIIPC Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 27 (since 2011) of Dodge & Cox; Director of International Equity (since 2009), Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and GBIPC (since 2014) C. Bryan Cameron Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge 32 & Cox; Director of Research, Portfolio Manager, Investment Analyst, and member of IPC and IIPC Gregory R. Serrurier Vice President Senior Vice President (since 2011) and Vice President (until 2011) of Dodge 31 & Cox; Portfolio Manager and member of IPC and IIPC Mario C. DiPrisco Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 17 member of IIPC Roger G. Kuo Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 17 member of IIPC and GSIPC (since 2010) Keiko Horkan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 15 member of IIPC Richard T. Callister Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 13 member of IIPC (since 2012) Englebert T. Bangayan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 13 member of IIPC (since February 2015)

PAGE 48 ▪ D ODGE &COX F UNDS 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’s Fixed Income Investment Policy Committee (FIIPC), and in general no one FIIPC member is primarily responsible for making investment recommendations for the Balanced and Income Funds. FIIPC consists of the following eight members:

Years with Committee Member Position(s) with Funds Business Experience During the Past Five Years Dodge & Cox Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2013), Co-President 32 (2011-2013), Executive Vice President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and GBIPC (since 2014) Charles F. Pohl Chairman and Trustee Chairman (since 2013), Co-President (2011-2013), Senior Vice President (until 31 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and FIIPC Thomas S. Dugan Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 21 (since 2011) of Dodge & Cox; Associate Director of Fixed Income (since 2009), Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC (since 2014) Larissa K. Roesch Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 18 member of FIIPC James H. Dignan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 16 member of FIIPC and GBIPC (since 2014) Anthony J. Brekke Vice President Vice President (since 2008) of Dodge & Cox; Portfolio Manager, Investment 12 Analyst, and member of FIIPC Adam S. Rubinson Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 13 member of FIIPC (since 2010) and GBIPC (since 2014) Lucinda I. Johns Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, Investment 13 Analyst, and member of FIIPC (since 2012) and GBIPC (since 2014)

D ODGE &COX F UNDS ▪ PAGE 49 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 consists of the following six members:

Years with Committee Member Position(s) with Funds Business Experience During the Past Five Years Dodge & Cox Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2013), Co-President 1/32 (2011-2013), Executive Vice President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and GBIPC (since 2014) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 1/27 (since 2011) of Dodge & Cox; Director of International Equity (since 2009), Portfolio Manager, Investment Analyst, and member of IPC, GSIPC, IIPC, and GIBPC (since 2014) Thomas S. Dugan Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director 1/21 (since 2011) of Dodge & Cox; Associate Director of Fixed Income (since 2009), Portfolio Manager, Investment Analyst, and member of FIIPC and GBIPC (since 2014) James H. Dignan Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 1/16 member of FIIPC and GBIPC (since 2014) Adam S. Rubinson Vice President Vice President of Dodge & Cox; Portfolio Manager, Investment Analyst, and 1/13 member of FIIPC (since 2010) and GBIPC (since 2014) Lucinda I. Johns Vice President Vice President (since 2009) of Dodge & Cox; Portfolio Manager, Investment 1/13 Analyst, and member of FIIPC (since 2012) and GBIPC (since 2014)

The SAI provides additional information about the Dodge & Cox investment committee members’ compensation, other accounts managed by the members, and the members’ ownership of securities in the Funds.

PAGE 50 ▪ D ODGE &COX F UNDS INVESTMENT INFORMATION AND SHAREHOLDER SERVICES

STATEMENTS AND REPORTS 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 your transaction, except purchases through the Automatic Investment Plan and dividend and capital gain distributions, 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 well as distributions, purchases, sales, and exchanges for the current calendar year. You should contact Client Services immediately regarding any errors or discrepancies on the statement confirming your transaction(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 Services Telephone Services The Funds provide toll-free access at 800-621-3979, write, or visit the Funds’ website at (800-621-3979) to Fund and account information 24 hours a day, dodgeandcox.com for forms and additional information.) 7 days a week. The system provides total returns, share prices, Electronic Delivery of Reports and Prospectus Your Fund and price changes for the Funds and gives your account balances reports and the Funds’ prospectus can be delivered to you and history (e.g., last transaction, latest dividend distribution). electronically, if you prefer. If you are a registered user of For certain account types, you can purchase, redeem, and dodgeandcox.com, you can consent to the electronic delivery of exchange Fund shares. Fund reports by logging on and changing your preferences. You Automatic Investment Plan You may make regular can revoke your electronic consent at any time, and we will send monthly, quarterly, semi-annual, or annual investments of $100 paper copies of Fund reports within 30 days of receiving or more through automatic deductions from your bank account. your notice. Systematic Withdrawal Plan If you own $10,000 or more of Web Access Information on the Funds is available at a Fund’s shares, you may receive regular monthly, quarterly, semi- dodgeandcox.com. annual, or annual payments of $50 or more. Shares will be On the site you can: redeemed automatically at NAV to make the withdrawal payments. ▪ Open a new account; Individual Retirement Account (IRA) If you have earned ▪ View your account balances and recent transactions; income or are entitled to certain distributions from eligible ▪ View or download your account statements, confirmation retirement plans, you may make or authorize contributions to statements, and tax forms; your own Individual Retirement Account. The Funds have ▪ Purchase, redeem, and exchange Fund shares; traditional IRA and Roth IRA Plans available for shareholders of ▪ Learn more about Dodge & Cox’s approach to investing; the Funds. ▪ Review the objectives, strategies, characteristics, and risks of Important Note: The services described may not be the Funds; available through some retirement plans or accounts held by ▪ Review the Funds’ daily NAVs and performance; Financial Intermediaries. If you are investing in such a ▪ Download or order the Funds’ prospectus and Account manner, you should contact your plan administrator/trustee or Applications, shareholder reports, IRA information, and other Financial Intermediaries about what services are available and forms; and with questions about your account. ▪ Sign up for electronic delivery of the Funds’ prospectus, shareholder reports, proxy materials, account statements, and tax forms.

D ODGE &COX F UNDS ▪ PAGE 51 FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, the period of the Fund’s operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (before taxes, and assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, whose report, along with the Fund’s financial statements, are included in the Annual Report, which is available upon request and on the Funds’ web site at dodgeandcox.com.

Year Ended December 31, DODGE & COX STOCK FUND 2014 2013 2012 2011 2010 Net asset value, beginning of year $168.87 $121.90 $101.64 $107.76 $96.14 Income from investment operations: Net investment income 2.83 2.11 1.98 1.76 1.23 Net 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 distributions (5.36) (2.11) (1.98) (1.75) (1.23) Net asset value, end of year $180.94 $168.87 $121.90 $101.64 $107.76 Total return 10.43% 40.55% 22.01% (4.08)% 13.48% Ratios/supplemental data: Net assets, end of year (millions) $60,260 $54,848 $39,841 $36,562 $43,038 Ratio of expenses to average net assets 0.52% 0.52% 0.52% 0.52% 0.52% Ratio of net investment income to average net assets 1.62% 1.45% 1.72% 1.62% 1.25% Portfolio turnover rate 17% 15% 11% 16% 12%

Year Ended December 31, DODGE & COX GLOBAL STOCK FUND 2014 2013 2012 2011 2010 Net asset value, beginning of year $11.48 $8.99 $7.68 $8.90 $7.91 Income from investment operations: Net investment income 0.16 0.16 0.15 0.16 0.08 Net realized and unrealized gain (loss) 0.64 2.81 1.48 (1.18) 0.99 Total from investment operations 0.80 2.97 1.63 (1.02) 1.07 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) — Total distributions (0.45) (0.48) (0.32) (0.20) (0.08) Net asset value, end of year $11.83 $11.48 $8.99 $7.68 $8.90 Total return 6.95% 33.17% 21.11% (11.39)% 13.51% Ratios/supplemental data: Net assets, end of year (millions) $5,895 $3,924 $2,695 $1,875 $1,817 Ratio of expenses to average net assets 0.65% 0.65% 0.65% 0.66% 0.69% Ratio of net investment income to average net assets 1.42% 1.58% 1.93% 1.94% 1.19% Portfolio turnover rate 17% 24% 12% 19% 14%

Year Ended December 31, DODGE & COX INTERNATIONAL STOCK FUND 2014 2013 2012 2011 2010 Net asset value, beginning of year $43.04 $34.64 $29.24 $35.71 $31.85 Income from investment operations: Net investment income 0.98 0.70 0.76 0.78 0.51 Net realized and unrealized gain (loss) (0.94) 8.40 5.39 (6.49) 3.85 Total from investment operations 0.04 9.10 6.15 (5.71) 4.36 Distributions to shareholders from: Net investment income (0.97) (0.70) (0.75) (0.76) (0.50) Net realized gain ————— Total distributions (0.97) (0.70) (0.75) (0.76) (0.50) Net asset value, end of year $42.11 $43.04 $34.64 $29.24 $35.71 Total return 0.07% 26.31% 21.03% (15.97)% 13.69% Ratios/supplemental data: Net assets, end of year (millions) $64,040 $53,616 $40,556 $35,924 $43,406 Ratio of expenses to average net assets 0.64% 0.64% 0.64% 0.64% 0.65% Ratio of net investment income to average net assets 2.39% 1.85% 2.31% 2.23% 1.58% Portfolio turnover rate 12% 13% 10% 16% 15%

PAGE 52 ▪ D ODGE &COX F UNDS Year Ended December 31, DODGE & COX BALANCED FUND 2014 2012 2011 2010 2009 Net asset value, beginning of year $98.30 $78.06 $67.45 $70.22 $64.03 Income from investment operations: Net investment income 2.03 1.66 1.65 1.62 1.41 Net realized and unrealized gain (loss) 6.59 20.30 10.62 (2.77) 6.30 Total from investment operations 8.62 21.96 12.27 (1.15) 7.71 Distributions to shareholders from: Net investment income (2.03) (1.65) (1.66) (1.62) (1.52) Net realized gain (2.41) (0.07) — — — Total distributions (4.44) (1.72) (1.66) (1.62) (1.52) Net asset value, end of year $102.48 $98.30 $78.06 $67.45 $70.22 Total return 8.85% 28.37% 18.32% (1.66)% 12.23% Ratios/supplemental data: Net assets, end of year (millions) $15,465 $14,404 $12,217 $12,220 $14,849 Ratio 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 2.00% 1.85% 2.21% 2.26% 2.13% Portfolio turnover rate 23% 25% 16% 19% 12%

Year Ended December 31, DODGE & COX INCOME FUND 2014 2013 2012 2011 2010 Net asset value, beginning of year $13.53 $13.86 $13.30 $13.23 $12.96 Income from investment operations: Net investment income 0.39 0.42 0.48 0.55 0.57 Net 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 distributions (0.49) (0.42) (0.48) (0.55) (0.65) Net asset value, end of year $13.78 $13.53 $13.86 $13.30 $13.23 Total return 5.48% 0.64% 7.94% 4.76% 7.17% Ratios/supplemental data: Net assets, end of year (millions) $39,128 $24,654 $26,539 $24,051 $22,381 Ratio of expenses to average net assets 0.44% 0.43% 0.43% 0.43% 0.43% Ratio of net investment income to average net assets 2.89% 3.00% 3.52% 4.12% 4.26% Portfolio turnover rate 27% 38% 26% 27% 28%

Period from May 1, 2014 (commencement of operations) DODGE & COX GLOBAL BOND FUND to December 31, 2014 Net asset value, beginning of period $10.73 Income from investment operations: Net investment income 0.16 Net 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) $65 Ratio 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

D ODGE &COX F UNDS ▪ PAGE 53 TRUSTEES

Charles F. Pohl, Chairman and Trustee Robert B. Morris III, Trustee Chairman, Dodge & Cox Advisory Director, The Presidio Group Dana M. Emery, President and Trustee Gary Roughead, Trustee Chief Executive Officer and President, Dodge & Cox Annenberg Distinguished Visiting Fellow, Hoover Institution and Thomas A. Larsen, Trustee former U.S. Navy Chief of Naval Operations Senior Counsel, Arnold & Porter LLP Mark E. Smith, Trustee Ann Mather, Trustee Former Executive Vice President, Managing Director - Fixed Income at Former Executive Vice President, Chief Financial Officer, and Loomis Sayles & Company, L.P. Company Secretary of Pixar Studios John B. Taylor, Trustee Professor of Economics, Stanford University, Senior Fellow, Hoover Institution and former Under Secretary for International Affairs, United States Treasury

PAGE 54 ▪ D ODGE &COX F UNDS NOTES

D ODGE &COX F UNDS ▪ PAGE 55 NOTES

PAGE 56 ▪ D ODGE &COX F UNDS

D ODGE &COX F UNDS®

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’s annual report, you will find a discussion of the market conditions and investment strategies that significantly affected the Fund’s performance during its 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 Funds c/o Boston Financial Data Services P.O. Box 8422 Boston, MA 02266-8422 Telephone: 800-621-3979 Internet: dodgeandcox.com

You can review and copy information about the Funds (including the SAI) at the SEC’s Public Reference Room in Washington, DC. To find out more about this public service, call the SEC at 202-551-8090. Reports and other information about the Funds are also available in the 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 at the 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 D ODGE &COX F UNDS® 2015

Annual Report December 31, 2015

Stock Fund ESTABLISHED 1965

TICKER: DODGX

12/15 SF AR Printed on recycled paper TO OUR SHAREHOLDERS

The Dodge & Cox Stock Fund had a total return of –4.5% for the example, a group of portfolio managers and analysts travelled to year ending December 31, 2015, compared to a return of 1.4% for Houston to better understand shale economics and met with the S&P 500 Index. company management teams, suppliers, competitors, and industry consultants. In addition, we conducted intensive reviews to MARKET COMMENTARY evaluate the key factors affecting a company’s capital structure, U.S. equity markets were volatile in 2015: after a significant selloff end-market demand, and relative competitiveness. Through this in August and September, the S&P 500 rebounded during the comprehensive process, we reaffirmed our view that the Fund’s fourth quarter to finish the year up just over 1%. Global oil prices holdings have attractive valuations relative to their fundamental declined 35% during the year, which aided U.S. household outlook over our three- to five-year investment horizon. purchasing power and hindered the profitability of oil and gas During the year, U.S. valuation disparities widened overall: companies. Consumer Discretionary was the strongest sector (up companies with higher valuations became more expensive relative 10%) of the S&P 500, while Energy was the worst-performing to companies with lower valuations. As valuations became more sector (down 21%). attractive, we added selectively to existing holdings, including In the United States, economic activity expanded at a moderate Baker Hughes, Bank of America, Cigna, EMC Corp., HP Inc., and pace: household spending and business investment increased, and the MetLife.(b) We also identified 8 new investment opportunities housing market strengthened. Labor market conditions continued to (including American Express, Anthem, Concho Resources, and improve, with solid job gains and reduced unemployment. Growth VMware) and exited 13 holdings (including Chevron, General was tempered by the stronger U.S. dollar and weaker demand for Electric, and PayPal). U.S. exports. In December, the U.S. Federal Reserve (Fed) raised the We continue to be optimistic about the long-term outlook for federal funds rate for the first time in nine years. The 0.25 percentage the portfolio. Our value-oriented approach has led us to invest in point increase ended a historic seven-year period with the federal companies where we believe the long-term potential is not funds rate close to 0%, aimed at stimulating the economy. Fed Chair reflected in the current price. Three examples—American Express, Janet Yellen reiterated the Fed’s intent to normalize monetary policy Hewlett Packard Enterprise, and HP Inc.—are discussed below. gradually; the timing and size of future adjustments will be based on economic conditions in relation to the Fed’s goals of maximum American Express employment and 2% inflation. American Express—the largest new purchase in the Fund during Global growth expectations declined and emerging markets 2015—provides charge and credit card products and travel-related faced significant macroeconomic challenges during the year. services to consumers and businesses worldwide. The company is China’s slowing economic growth contributed to depressed the number one credit/charge card issuer and merchant acquirer in commodity prices (e.g., global copper prices plummeted 24%) and the United States measured by billed business, and its network is weighed on the global economy. The stronger U.S. dollar and the second largest after Visa. Historically, American Express has prospects for higher U.S. interest rates negatively affected generated attractive returns due to its vertical integration and economies in need of external financing, such as Brazil. strong value proposition for high-spending customers. In 2015, American Express’ stock declined 24%(c) due to INVESTMENT STRATEGY concerns that the company’s business model is under pressure: As a value-oriented manager, 2015 was a challenging year for Costco U.S. and JetBlue terminated their exclusive relationships absolute and relative performance. Across equities, value stocks with the card company and the Department of Justice questioned (the lower valuation portion of the market) underperformed American Express’ ability to enforce rules prohibiting merchants growth stocks (the higher valuation portion of the market) by one from steering customers to other credit cards. As a result, of the widest spreads since the global financial crisis. The Fund was American Express’ valuation relative to the market is at a significantly affected by this performance divergence. Many of the historically low level (13 times forward estimated earnings(d)). We S&P 500’s higher-valuation growth companies, not held by the initiated a position in the company because we believe these near- Fund, outperformed significantly. In addition, some individual term concerns have obscured a long-term investment opportunity. Fund holdings (e.g., HP Inc.(a), Time Warner, Wal-Mart) The company has an attractive business model that produces high significantly detracted from results for the year, and the Fund’s returns on capital by encouraging more affluent and creditworthy Energy holdings were negatively impacted by falling oil prices. customers to use the company’s credit and charge cards. American We extensively revisited and retested our thinking on many of Express’ highly perceived rewards program, customer service, and the Fund’s holdings during 2015. Our equity and fixed income strong brand recognition help attract and retain wealthier teams regularly work together to evaluate risk and reward as we customers. The company should benefit from a continued industry look at investment opportunities across a company’s capital shift from paper to plastic payments and growth in its third-party structure, and this collaboration intensified during the year. As a issued cards business. We believe American Express will be able to part of our bottom-up research process, our investment teams maintain its strong return on equity and improve profitability in thoroughly investigated individual company concerns, challenged the long run. On December 31, American Express was a 1.4% analyst assumptions, and conducted further due diligence. For position in the Fund.

PAGE 2 ▪ D ODGE &COX S TOCK F UND Hewlett Packard Enterprise and HP Inc. Our experienced and stable team has weathered past periods After providing strong returns in 2013 and 2014, Hewlett-Packard of market turbulence by remaining steadfast in our investment was the Fund’s largest detractor from results during 2015. Hewlett- philosophy and process. Our approach—constructing a diversified Packard recently split into two entities—Hewlett Packard portfolio through in-depth, independent research, a long-term Enterprise and HP Inc.—which should result in greater focus and investment horizon, and a focus on valuation relative to flexibility for each company to achieve its strategic goals. To assess underlying fundamentals—continues to guide us through this secular challenges and evaluate the risks and opportunities of each period. We remain confident that our enduring value-oriented stand-alone business, we met numerous times with their approach will benefit the Fund in the years ahead. management teams and competitors and spoke with industry Thank you for your continued confidence in our firm. As consultants. As a result, we added to the Fund’s positions in both always, we welcome your comments and questions. companies. On December 31, Hewlett Packard Enterprise was a 2.5% position and HP Inc. was a 1.8% position in the Fund. For the Board of Trustees, Hewlett Packard Enterprise, one of the largest vendors in information technology (IT), consists of the enterprise technology infrastructure, software, and services segments of the old Hewlett- Packard. We acknowledge the company faces headwinds: the shift to the cloud has negatively impacted all on-premise IT vendors, Charles F. Pohl, Dana M. Emery, continued public cloud adoption will likely erode the company’s Chairman President market share, and competition is keen. Despite these risks, we believe Hewlett Packard Enterprise is an attractive investment due January 29, 2016 to its strong market positions across its portfolio (e.g., top provider (a) After Hewlett-Packard Co. split into two companies, HP Inc. retained the of servers, number two position in IT services), scale advantages, HPQ ticker symbol. HP Inc.’s –37% return in 2015 includes Hewlett- and opportunities to improve its margin structure. Meg Whitman— Packard Co.’s performance through October 2015. the CEO of Hewlett Packard Enterprise—has overseen sound (b) The use of specific examples does not imply that they are more attractive investments than the Fund’s other holdings. acquisitions (e.g., 3Par), new product launches, and cost reduction (c) All returns are total returns unless otherwise noted. programs during her tenures at Hewlett-Packard and eBay. (d) Unless otherwise specified, all weightings and characteristics are as of Management is activelycuttingcostsand retooling itsproduct and December 31, 2015. service offerings to improve the company’s competitiveness. Margins in the Enterprise Services segment should expand as the company optimizes its contract mix and delivery models. The company trades at a compelling valuation (eight times forward estimated 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 the stronger U.S. dollar, consensus estimates have the company’s sales declining approximately 10% in 2016. Many investors believe a shrinking market for hardware and ink may be too difficult to overcome; we believe this view of the company’s prospects is too pessimistic. HP’s management is aggressively cutting costs and has plans to introduce more new products. For example, HP has portions of its printing business (e.g., high-end graphics production) that are currently growing and may increase share in the established copier market and in the more nascent 3D print market. Moreover, the company generates robust free cash flow. Trading at seven times forward estimated earnings, HP remains an attractive investment opportunity with strong business prospects given its large valuation discount to the overall market.

IN CLOSING On December 31, the Fund’s portfolio of 63 companies traded at 13.8 times forward estimated earnings, a significant discount to the S&P 500 (17.4 times forward estimated earnings). We remain confident in the prospects for the portfolio over our three- to five- year investment horizon and believe it is positioned to benefit from long-term global growth opportunities.

D ODGE &COX S TOCK F UND ▪ PAGE 3 ANNUAL PERFORMANCE REVIEW KEY CHARACTERISTICS OF DODGE & COX The Fund underperformed the S&P 500 by 5.9 percentage Independent Organization points in 2015. Dodge & Cox is one of the largest privately owned investment managers in the world. We remain committed to independence, Key Detractors from Relative Results with a goal of providing the highest quality investment ▪ The Fund’s holdings in the Consumer Discretionary sector management service to our existing clients. (down 6% compared to up 10% for the S&P 500 sector) Over 85 Years of Investment Experience hindered performance. Media holdings Twenty-First Century Dodge & Cox was founded in 1930. We have a stable and well- Fox (down 29%) and Time Warner (down 23%) were qualified team of investment professionals, most of whom have particularly weak. spent their entire careers at Dodge & Cox. ▪ Wal-Mart, the Fund’s only holding in the Consumer Staples sector (down 27% compared to up 7% for the S&P 500 Experienced Investment Team sector), hurt returns. The Investment Policy Committee, which is the decision- ▪ The Fund’s holdings in the Information Technology sector making body for the Stock Fund, is a nine-member committee (flat compared to up 6% for the S&P 500 sector) detracted with an average tenure at Dodge & Cox of 27 years. from results. HP Inc. (down 37%) and NetApp (down 35%) One Business with a Single Research Office performed poorly. Dodge & Cox manages equity (domestic, international, and ▪ The Fund’s holdings in the Energy sector (down 26% global), fixed income (domestic and global), and balanced compared to down 21% for the S&P 500 sector) hurt results. investments, operating from one office in San Francisco. National Oilwell Varco (down 47%), Apache (down 28%), Consistent Investment Approach and Schlumberger (down 16%) were key detractors. Our team decision-making process involves thorough, bottom- ▪ Capital One (down 11%) was also a detractor. up fundamental analysis of each investment. Key Contributors to Relative Results Long-Term Focus and Low Expenses ▪ The Fund’s average overweight position (6% versus 3%) and We invest with a three- to five-year investment horizon, which holdings in the Health Care Providers & Services industry has historically resulted in low turnover relative to our peers. (up 18% compared to up 12% for the S&P 500 industry) We manage Funds that maintain low expense ratios. helped returns. Cigna (up 42%) and UnitedHealth Group (up 18%) were particularly strong. Risks: The Fund is subject to market risk, meaning holdings in ▪ In the Materials sector (up 14% compared to down 9% for the Fund may decline in value for extended periods due to the the S&P 500 sector), the Fund’s only holding, Celanese, and financial prospects of individual companies, or due to general lack of holdings in the Metals & Mining industry (down market and economic conditions. Please read the prospectus and 39%) contributed to results. summary prospectus for specific details regarding the Fund’s risk ▪ Additional contributors included Alphabet (up 45%), Time profile. Warner Cable (up 25%), Maxim Integrated Products (up 23%), Microsoft (up 23%), and Charles Schwab (up 10%).

PAGE 4 ▪ D ODGE &COX S TOCK F UND GROWTH OF $10,000 OVER 10 YEARS FOR AN INVESTMENT MADE ON DECEMBER 31, 2005

$30,000 Returns represent past performance and do not guarantee future Dodge & Cox Stock Fund $17,399 results. Investment return and share price will fluctuate with S&P 500 Index $20,251 20,000 market conditions, and investors may have a gain or loss when shares are sold. Fund performance changes over time and currently may be significantly lower than stated. Performance is updated and published monthly. Visit the Fund’s website at 10,000 dodgeandcox.com or call 800-621-3979 for current performance figures. The Fund’s total returns include the reinvestment of dividend and capital gain distributions, but have not been adjusted for any 5,000 income taxes payable by shareholders on these distributions or on 12/31/05 12/31/07 12/31/09 12/31/11 12/31/13 12/31/15 Fund share redemptions. Index returns include dividends but, unlike Fund returns, do not reflect fees or expenses. The S&P 500 AVERAGE ANNUAL TOTAL RETURN Index is a market capitalization-weighted index of 500 large- FOR PERIODS ENDED DECEMBER 31, 2015 capitalization stocks commonly used to represent the U.S. equity 1 Year 5 Years 10 Years 20 Years market. Dodge & Cox Stock Fund –4.47% 11.64% 5.69% 10.05% S&P 500® is a trademark of McGraw Hill Financial. S&P 500 Index 1.41 12.58 7.31 8.19

Six Months Ended Beginning Account Value Ending Account Value Expenses Paid December 31, 2015 7/1/2015 12/31/2015 During Period* Based on Actual Fund Return $1,000.00 $ 942.40 $2.51 Based on Hypothetical 5% Yearly Return 1,000.00 1,022.63 2.61 * Expenses are equal to the Fund’s annualized expense ratio of 0.51%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

D ODGE &COX S TOCK F UND ▪ PAGE 5 FUND INFORMATION (unaudited) December 31, 2015

GENERAL INFORMATION ASSET ALLOCATION Net Asset Value Per Share $162.77 Equity Total Net Assets (billions) $54.8 Securities: 97.8% Expense Ratio 0.52% Portfolio Turnover Rate 15% 30-Day SEC Yield(a) 1.38% Number of Companies 63 Fund Inception 1965 No sales charges or distribution fees

Investment Manager: Dodge & Cox, San Francisco. Managed by Net Cash the Investment Policy Committee, whose nine members’ average & Other:(e) 2.2% tenure at Dodge & Cox is 27 years.

PORTFOLIO CHARACTERISTICS Fund S&P 500 SECTOR DIVERSIFICATION (%) Fund S&P 500 Median Market Capitalization (billions) $38 $18 Financials 26.4 16.5 Weighted Average Market Capitalization Information Technology 24.6 20.7 (billions) $116 $140 Health Care 16.5 15.2 Price-to-Earnings Ratio(b) 13.8x 17.4x Consumer Discretionary 15.1 13.0 Foreign Securities not in the S&P 500(c) 9.1% 0.0% Energy 7.3 6.5 Industrials 4.2 10.0

TEN LARGEST HOLDINGS (%)(d) Fund Consumer Staples 2.1 10.1 Materials 0.9 2.6 Wells Fargo & Co. 4.1 Telecommunication Services 0.7 2.4 Microsoft Corp. 4.0 Utilities 0.0 3.0 Capital One Financial Corp. 3.9 Time Warner Cable, Inc. 3.9 Charles Schwab Corp. 3.7 Alphabet, Inc. 3.4 Bank of America Corp. 3.4 Novartis AG (Switzerland) 2.9 EMC Corp. 2.7 Schlumberger, Ltd. 2.7

(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.

PAGE 6 ▪ D ODGE &COX S TOCK F UND PORTFOLIO OF INVESTMENTS December 31, 2015

COMMON STOCKS: 97.8%

SHARES VALUE SHARES VALUE CONSUMER DISCRETIONARY: 15.1% PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 9.5% AUTOMOBILES & COMPONENTS: 0.4% AstraZeneca PLC ADR(b) Harley-Davidson, Inc. 4,886,500 $ 221,798,235 (United Kingdom) 7,564,200 $ 256,804,590 Merck & Co., Inc. 14,316,800 756,213,376 CONSUMER DURABLES & APPAREL: 0.6% Novartis AG ADR(b) Coach, Inc. 10,088,700 330,203,151 (Switzerland) 18,828,500 1,620,004,140 Roche Holding AG ADR(b) (Switzerland) 34,496,900 1,189,108,143 MEDIA: 11.8% Sanofi ADR(b) (France) 31,765,829 1,354,812,607 Comcast Corp., Class A 25,658,797 1,447,925,915 Thermo Fisher Scientific, Inc. 226,010 32,059,518 DISH Network Corp., Class A(a) 6,691,149 382,599,900 5,209,002,374 News Corp., Class A 4,912,806 65,635,088 Time Warner Cable, Inc. 11,437,410 2,122,668,922 9,053,493,694 Time Warner, Inc. 22,227,832 1,437,473,895 INDUSTRIALS: 4.2% Twenty-First Century Fox, Inc., Class A 28,934,626 785,864,442 CAPITAL GOODS: 0.9% Twenty-First Century Fox, Inc., Class B 9,350,000 254,600,500 Danaher Corp. 4,719,600 438,356,448 6,496,768,662 NOW, Inc.(a) 1,690,218 26,739,249 RETAILING: 2.3% 465,095,697 Liberty Interactive Corp. QVC Group, COMMERCIAL & PROFESSIONAL SERVICES: 1.4% (a) Series A 12,317,275 336,507,953 ADT Corp.(c) 11,138,437 367,345,652 Target Corp. 5,760,586 418,276,150 Tyco International PLC(b) (Ireland) 12,974,975 413,771,953 The Priceline Group, Inc.(a) 390,900 498,377,955 781,117,605 1,253,162,058 TRANSPORTATION: 1.9% 8,301,932,106 FedEx Corp. 7,158,399 1,066,529,867 CONSUMER STAPLES: 2.1% 2,312,743,169 FOOD & STAPLES RETAILING: 2.1% INFORMATION TECHNOLOGY: 24.6% Wal-Mart Stores, Inc. 18,678,550 1,144,995,115 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 0.9% ENERGY: 7.3% Maxim Integrated Products, Inc.(c) 13,535,740 514,358,120 Apache Corp.(c) 15,359,845 683,052,307 Baker Hughes, Inc. 20,362,050 939,708,607 SOFTWARE & SERVICES: 10.8% (a) Concho Resources, Inc.(a) 3,115,000 289,258,900 Alphabet, Inc., Class A 670,700 521,811,307 National Oilwell Varco, Inc. 12,598,000 421,907,020 Alphabet, Inc., Class C(a) 1,837,253 1,394,254,556 Schlumberger, Ltd.(b) (Curacao/ Cadence Design Systems, Inc.(a) 7,977,200 166,005,532 United States) 20,848,845 1,454,206,939 eBay, Inc.(a) 1,838,244 50,514,945 Weatherford International PLC(a)(b) Microsoft Corp. 39,336,600 2,182,394,568 (Ireland) 23,907,400 200,583,086 Symantec Corp.(c) 54,111,000 1,136,331,000 Synopsys, Inc.(a)(c) 9,193,469 419,314,121 3,988,716,859 VMware, Inc.(a) 1,309,375 74,071,344 FINANCIALS: 26.4% BANKS: 10.5% 5,944,697,373 Bank of America Corp. 110,553,200 1,860,610,356 TECHNOLOGY, HARDWARE & EQUIPMENT: 12.9% BB&T Corp. 14,494,144 548,023,585 Cisco Systems, Inc. 39,857,711 1,082,336,142 JPMorgan Chase & Co. 16,665,200 1,100,403,156 Corning, Inc. 33,952,000 620,642,560 Wells Fargo & Co. 41,962,641 2,281,089,165 EMC Corp. 57,817,203 1,484,745,773 5,790,126,262 Hewlett Packard Enterprise Co.(c) 90,984,995 1,382,971,924 DIVERSIFIED FINANCIALS: 13.6% HP, Inc. 84,807,695 1,004,123,109 American Express Co. 10,720,800 745,631,640 Juniper Networks, Inc. 3,231,546 89,190,670 Bank of New York Mellon Corp. 31,721,024 1,307,540,609 NetApp, Inc.(c) 21,532,731 571,263,353 Capital One Financial Corp.(c) 29,786,611 2,149,997,582 TE Connectivity, Ltd.(b) (Switzerland) 12,541,775 810,324,083 Charles Schwab Corp. 61,864,400 2,037,194,692 7,045,597,614 Goldman Sachs Group, Inc. 6,694,800 1,206,603,804 13,504,653,107 7,446,968,327 MATERIALS: 0.9% INSURANCE: 2.3% Celanese Corp., Series A(c) 7,219,998 486,122,465 AEGON NV(b) (Netherlands) 69,285,166 392,846,891 MetLife, Inc. 17,662,700 851,518,767 TELECOMMUNICATION SERVICES: 0.7% 1,244,365,658 Sprint Corp.(a) 107,816,127 390,294,380 14,481,460,247 TOTAL COMMON STOCKS HEALTH CARE: 16.5% (Cost $40,821,453,282) $53,664,411,142 HEALTH CARE EQUIPMENT & SERVICES: 7.0% Anthem, Inc. 1,288,685 179,694,237 Cigna Corp. 8,052,484 1,178,319,984 Express Scripts Holding Co.(a) 14,813,071 1,294,810,536 Medtronic PLC(b) (Ireland) 3,749,600 288,419,232 UnitedHealth Group, Inc. 7,678,063 903,247,331 3,844,491,320

See accompanying Notes to Financial Statements D ODGE &COX S TOCK F UND ▪ PAGE 7 PORTFOLIO OF INVESTMENTS December 31, 2015

SHORT-TERM INVESTMENTS: 2.3% FUTURES CONTRACTS PAR VALUE VALUE Unrealized MONEY MARKET FUND: 0.1% Number of Expiration Notional Appreciation/ SSgA U.S. Treasury Money Market Fund $ 55,422,858 $ 55,422,858 Description Contracts Date Amount (Depreciation) E-mini S&P 500 REPURCHASE AGREEMENT: 2.2% Index—Long Fixed Income Clearing Corporation(d) Position 12,023 Mar 2016 $1,223,580,710 $1,713,207 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 TOTAL INVESTMENTS (Cost $42,081,021,140) 100.1% $54,923,979,000 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 generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes or in other limited circumstances, the Fund uses the country designation of an appropriate broad-based market index. In those cases, two countries are listed - the country of incorporation and the country designated by an appropriate index, respectively.

ADR: American Depositary Receipt

PAGE 8 ▪ D ODGE &COX S TOCK F UND See accompanying Notes to Financial Statements STATEMENT OF ASSETS AND LIABILITIES STATEMENT OF CHANGES IN NET ASSETS

Year Ended Year Ended December 31, 2015 December 31, 2015 December 31, 2014 ASSETS: OPERATIONS: Investments, at value Net investment income $ 801,418,840 $ 919,834,389 Unaffiliated issuers (cost $37,049,990,593) $48,896,755,368 Net realized gain 2,982,618,142 2,333,359,854 Affiliated issuers (cost $5,031,030,547) 6,027,223,632 Net change in unrealized 54,923,979,000 appreciation/depreciation (6,397,067,953) 2,407,499,870 Cash held at broker 55,305,169 (2,613,030,971) 5,660,694,113 Receivable for investments sold 15,637,977 Receivable for Fund shares sold 61,926,918 Dividends and interest receivable 60,350,707 DISTRIBUTIONS TO Prepaid expenses and other assets 309,904 SHAREHOLDERS FROM: 55,117,509,675 Net investment income (813,298,971) (908,453,128) Net realized gain (2,475,923,268) (840,004,493) LIABILITIES: Payable to broker for variation margin 11,542,080 Total distributions (3,289,222,239) (1,748,457,621) Payable for investments purchased 59,141,766 Payable for Fund shares redeemed 176,752,622 FUND SHARE Management fees payable 23,485,250 TRANSACTIONS: Accrued expenses 1,463,450 Proceeds from sale of shares 7,399,154,348 9,175,796,977 272,385,168 Reinvestment of distributions 3,094,798,205 1,609,896,035 NET ASSETS $54,845,124,507 Cost of shares redeemed (10,006,695,861) (9,285,324,011) NET ASSETS CONSIST OF: Net increase from Fund Paid in capital $41,101,955,700 share transactions 487,256,692 1,500,369,001 Undistributed net investment income 7,503,253 Total increase/(decrease) in Undistributed net realized gain 890,994,487 net assets (5,414,996,518) 5,412,605,493 Net unrealized appreciation 12,844,671,067

$54,845,124,507 NET ASSETS: Fund shares outstanding (par value $0.01 each, Beginning of year 60,260,121,025 54,847,515,532 unlimited shares authorized) 336,950,058 End of year (including undistributed Net asset value per share $ 162.77 net investment income of $7,503,253 and $19,383,384, STATEMENT OF OPERATIONS respectively) $ 54,845,124,507 $60,260,121,025 Year Ended December 31, 2015 SHARE INFORMATION: INVESTMENT INCOME: Shares sold 41,883,366 52,472,086 Dividends (net of foreign taxes of $20,876,250) Distributions reinvested 18,759,974 9,034,682 Unaffiliated issuers $ 954,579,629 Shares redeemed (56,738,159) (53,255,380) Affiliated issuers 150,632,113 Interest 72,003 Net increase in shares outstanding 3,905,181 8,251,388 1,105,283,745 EXPENSES: Management fees 293,725,621 Custody and fund accounting fees 724,423 Transfer agent fees 4,195,938 Professional services 231,414 Shareholder reports 1,262,127 Registration fees 262,297 Trustees’ fees 237,500 Miscellaneous 3,225,585 303,864,905 NET INVESTMENT INCOME 801,418,840 REALIZED AND UNREALIZED GAIN (LOSS): Net realized gain (loss) Unaffiliated issuers 2,784,965,660 Affiliated issuers 212,205,714 Index futures contracts (14,553,232) Net change in unrealized appreciation/depreciation Investments (6,398,781,160) Index futures contracts 1,713,207 Net realized and unrealized loss (3,414,449,811) NET DECREASE IN NET ASSETS FROM OPERATIONS $(2,613,030,971)

See accompanying Notes to Financial Statements D ODGE &COX S TOCK F UND ▪ PAGE 9 NOTES TO FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION AND SIGNIFICANT not readily available or are deemed unreliable. The Pricing ACCOUNTING POLICIES Committee considers relevant indications of value that are Dodge & Cox Stock Fund (the “Fund”) is one of the series reasonably available to it in determining the fair value assigned to constituting the Dodge & Cox Funds (the “Trust” or the “Funds”). a particular security, such as the value of similar financial The Trust is organized as a Delaware statutory trust and is instruments, trading volumes, contractual restrictions on registered under the Investment Company Act of 1940, as disposition, related corporate actions, and changes in economic amended, as an open-end management investment company. The conditions. In doing so, the Pricing Committee employs various Fund commenced operations on January 4, 1965, and seeks long- methods for calibrating fair valuation approaches, including a term growth of principal and income. Risk considerations and regular review of key inputs and assumptions, back-testing, and investment strategies of the Fund are discussed in the Fund’s review of any related market activity. Prospectus. Valuing securities through a fair value determination involves The financial statements have been prepared in conformity greater reliance on judgment than valuation of securities based on with accounting principles generally accepted in the United States readily available market quotations. In some instances, lack of of America, which require the use of estimates and assumptions by information and uncertainty as to the significance of information management. Actual results may differ from those estimates. may lead to a conclusion that a prior valuation is the best Significant accounting policies are as follows: indication of a security’s value. When fair value pricing is Security valuation The Fund’s net assets are valued as of the employed, the prices of securities used by the Fund to calculate its close of trading on the New York Stock Exchange (NYSE), NAV may differ from quoted or published prices for the same generally 4:00 p.m. Eastern Time, each day that the NYSE is open securities. for business. If the NYSE is closed due to inclement weather, Security transactions, investment income, expenses, technology problems, or for any other reason on a day it would and distributions Security transactions are recorded on the trade normally be open for business, or the NYSE has an unscheduled date. Realized gains and losses on securities sold are determined on early closing on a day it has opened for business, the Fund reserves the basis of identified cost. the right to calculate the Fund’s NAV as of the normally Dividend income and corporate action transactions are scheduled close of regular trading on the NYSE for that day, recorded on the ex-dividend date, or when the Fund first learns of provided that Dodge & Cox believes that it can obtain reliable the dividend/corporate action if the ex-dividend date has passed. market quotes or valuations. Withholding taxes on foreign dividends have been provided for in Portfolio securities and other financial instruments for which accordance with the Fund’s understanding of the applicable market quotes are readily available are valued at market value. country’s tax rules and rates. Non-cash dividends included in Listed securities are generally valued using the official quoted close dividend income, if any, are recorded at the fair market value of price or the last sale on the exchange that is determined to be the the securities received. Dividends characterized as return of capital primary market for the security. Exchange-traded derivatives are for U.S. tax purposes are recorded as a reduction of cost of valued at the settlement price determined by the relevant investments and/or realized gain. Interest income is recorded on exchange. Security values are not discounted based on the size of the accrual basis. the Fund’s position. Short-term securities less than 60 days to Expenses are recorded on the accrual basis. Some expenses of maturity may be valued at amortized cost if amortized cost the Trust can be directly attributed to a specific series. Expenses approximates current value. Mutual funds are valued at their which cannot be directly attributed are allocated among the Funds respective net asset values. All securities held by the Fund are in the Trust based on relative net assets or other expense denominated in U.S. dollars. methodologies determined by the nature of the expense. If market quotations are not readily available or if a security’s Distributions to shareholders are recorded on the ex-dividend value is believed to have materially changed after the close of the date. security’s primary market but before the close of trading on the Repurchase agreements The Fund enters into repurchase NYSE, the security is valued at fair value as determined in good agreements, secured by U.S. government or agency securities, faith by or under the direction of the Fund’s Board of Trustees. which involve the purchase of securities from a counterparty with The Board of Trustees has appointed Dodge & Cox, the Fund’s a simultaneous commitment to resell the securities at an agreed- investment manager, to make fair value determinations in upon date and price. It is the Fund’s policy that its custodian take accordance with the Dodge & Cox Funds Valuation Policies possession of the underlying collateral securities, the fair value of (“Valuation Policies”), subject to Board oversight. Dodge & Cox which exceeds the principal amount of the repurchase transaction, has established a Pricing Committee that is comprised of including accrued interest, at all times. In the event of default by representatives from Treasury, Legal, Compliance, and Operations. the counterparty, the Fund has the contractual right to liquidate The Pricing Committee is responsible for implementing the the collateral securities and to apply the proceeds in satisfaction of Valuation Policies, including determining the fair value of the obligation. securities when market quotations or market-based valuations are

PAGE 10 ▪ D ODGE &COX S TOCK F UND NOTES TO FINANCIAL STATEMENTS

Futures Contracts Futures contracts involve an obligation The following is a summary of the inputs used to value the to purchase or sell (depending on whether the Fund has entered a Fund’s holdings at December 31, 2015: long or short futures contract, respectively) an asset at a future LEVEL 2 date, at a price set at the time of the contract. Upon entering into LEVEL 1 (Other Significant a futures contract, the Fund is required to deposit an amount of Classification(a) (Quoted Prices) Observable Inputs) cash or liquid assets (referred to as initial margin) in a segregated Securities account with the clearing broker. Subsequent payments (referred Common Stocks(b) $53,664,411,142 $ — Short-term Investments to as variation margin) to and from the clearing broker are made Money Market Fund 55,422,858 — on a daily basis based on changes in the market value of futures Repurchase Agreement — 1,204,145,000 contracts. Futures contracts are traded publicly and their market Total $53,719,834,000 $1,204,145,000 value changes daily. Changes in the market value of open futures (c) contracts are recorded as unrealized appreciation or depreciation in Other Financial Instruments Index Futures Contracts the Statement of Operations. Realized gains and losses on futures Appreciation $ 1,713,207 $ — contracts are recorded in the Statement of Operations at the closing or expiration of the contracts. Cash deposited with a (a) There were no transfers between Level 1 and Level 2 during the year ended broker as initial margin is recorded on the Statement of Assets and December 31, 2015. There were no Level 3 securities at December 31, 2015 and 2014, and there were no transfers to Level 3 during the year. Liabilities. A receivable and/or payable to brokers for daily (b) All common stocks held in the Fund are Level 1 securities. For a detailed variation margin is also recorded on the Statement of Assets and break-out of common stocks by major industry classification, please refer to Liabilities. the Portfolio of Investments. (c) Represents unrealized appreciation/(depreciation). Investments in futures contracts may include certain risks, which may be different from, and potentially greater than, those of NOTE 3—RELATED PARTY TRANSACTIONS the underlying securities. To the extent the Fund uses futures, it is Management fees Under a written agreement approved by a exposed to additional volatility and potential losses resulting from unanimous vote of the Board of Trustees, the Fund pays an annual leverage. management fee of 0.50% of the Fund’s average daily net assets to The Fund entered into long S&P 500 futures contracts to Dodge & Cox, investment manager of the Fund. The agreement provide equity exposure in an amount comparable to the Fund’s further provides that Dodge & Cox shall waive its fee to the extent net cash position. During the year ended December 31, 2015, these that such fee plus all other ordinary operating expenses of the Fund S&P 500 futures contracts had notional values ranging from 0% to exceed 0.75% of the average daily net assets for the year. 2% of net assets. Fund officers and trustees All officers and two of the Indemnification Under the Trust’s organizational documents, trustees of the Trust are officers or employees of Dodge & Cox. its officers and trustees are indemnified against certain liabilities The Trust pays a fee only to those trustees who are not affiliated arising out of the performance of their duties to the Trust. In with Dodge & Cox. addition, in the normal course of business the Trust enters into contracts that provide general indemnities to other parties. The NOTE 4—INCOME TAX INFORMATION AND Trust’s maximum exposure under these arrangements is unknown as DISTRIBUTIONS TO SHAREHOLDERS this would involve future claims that may be made against the Trust A provision for federal income taxes is not required since the Fund that have not yet occurred. intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute NOTE 2—VALUATION MEASUREMENTS all of its taxable income to shareholders. Distributions are Various inputs are used in determining the value of the Fund’s determined in accordance with income tax regulations, and such investments. These inputs are summarized in the three broad levels amounts may differ from net investment income and realized gains listed below. for financial reporting purposes. Financial reporting records are ▪ Level 1: Quoted prices in active markets for identical securities adjusted for permanent book to tax differences at year end to reflect ▪ Level 2: Other significant observable inputs (including quoted tax character. prices for similar securities, market indices, interest rates, credit Book to tax differences are primarily due to differing treatments risk, etc.) of wash sales, in-kind redemptions, net short-term realized gain (loss), ▪ Level 3: Significant unobservable inputs (including Fund and Index Futures Contracts. During the year, the Fund recognized management’s assumptions in determining the fair value of net realized gains of $68,854,889 from the delivery of appreciated investments) securities in an in-kind redemption transaction. For federal income The inputs or methodology used for valuing securities are not tax purposes, this gain is not recognized as taxable income to the necessarily an indication of the risk associated with investing in Fund and therefore will not be distributed to shareholders. At those securities. December 31, 2015, the cost of investments for federal income tax purposes was $42,086,555,899.

D ODGE &COX S TOCK F UND ▪ PAGE 11 NOTES TO FINANCIAL STATEMENTS

Distributions during the years noted below were characterized as NOTE 6—PURCHASES AND SALES OF INVESTMENTS follows for federal income tax purposes: For the year ended December 31, 2015 purchases and sales of securities, other than short-term securities, aggregated $8,811,129,493 Year Ended Year Ended December 31, 2015 December 31, 2014 and $11,133,446,900, respectively. Ordinary income $813,298,971 $908,453,128 ($2.460 per share) ($2.800 per share) NOTE 7—SUBSEQUENT EVENTS Fund management has determined that no material events or Long-term capital gain $2,475,923,268 $840,004,493 transactions occurred subsequent to December 31, 2015, and ($7.577 per share) ($2.560 per share) through the date of the Fund’s financial statements issuance, At December 31, 2015, the tax basis components of which require additional disclosure in the Fund’s financial distributable earnings were as follows: statements.

Unrealized appreciation $15,260,989,069 Unrealized depreciation (2,423,565,968) Net unrealized appreciation 12,837,423,101 Undistributed ordinary income 7,503,253 Undistributed long-term capital gain 898,242,453

NOTE 5—LOAN FACILITIES Pursuant to an exemptive order issued by the Securities and Exchange Commission (SEC), the Fund may participate in an interfund lending facility (Facility). The Facility allows the Fund to borrow money from or loan money to the Funds. Loans under the Facility are made for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest on borrowings is the average of the current repurchase agreement rate and the bank loan rate. There was no activity in the Facility during the year. All Funds in the Trust participate in a $500 million committed credit facility (Line of Credit) with State Street Bank and Trust Company, to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The maximum amount available to the Fund is $250 million. Each Fund pays an annual commitment fee on its pro-rata portion of the Line of Credit. For the year ended December 31, 2015, the Fund’s commitment fee amounted to $178,907 and is reflected as a Miscellaneous Expense in the Statement of Operations. Interest on borrowings is charged at the prevailing rate. There were no borrowings on the Line of Credit during the year.

PAGE 12 ▪ D ODGE &COX S TOCK F UND NOTES TO FINANCIAL STATEMENTS

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’s voting securities during all or part of the year ended December 31, 2015. Purchase and sale transactions and dividend income earned during the year on these securities were as follows:

Shares at Shares at Dividend Value at Beginning of Year Additions Reductions End of Year Income(a) End of Year ADT Corp. 11,819,337 — (680,900) 11,138,437 $ 9,613,243 $ 367,345,652 AOL, 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 2,149,997,582 Celanese 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 1,382,971,924 Maxim 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 14,697,360 571,263,353 Symantec Corp. 51,921,000 2,340,000 (150,000) 54,111,000 32,177,100 1,136,331,000 Synopsys, 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

D ODGE &COX S TOCK F UND ▪ PAGE 13 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 $180.94 $168.87 $121.90 $101.64 $107.76 Income from investment operations: Net investment income 2.42 2.83 2.11 1.98 1.76 Net realized and unrealized gain (loss) (10.55) 14.60 46.97 20.26 (6.13) Total from investment operations (8.13) 17.43 49.08 22.24 (4.37) Distributions to shareholders from: Net investment income (2.46) (2.80) (2.11) (1.98) (1.75) Net realized gain (7.58) (2.56) — — — Total distributions (10.04) (5.36) (2.11) (1.98) (1.75) Net asset value, end of year $162.77 $180.94 $168.87 $121.90 $101.64 Total return (4.47)% 10.43% 40.55% 22.01% (4.08)% Ratios/supplemental data: Net assets, end of year (millions) $54,845 $60,260 $54,848 $39,841 $36,562 Ratio of expenses to average net assets 0.52% 0.52% 0.52% 0.52% 0.52% Ratio of net investment income to average net assets 1.36% 1.62% 1.45% 1.72% 1.62% Portfolio turnover rate 15% 17% 15% 11% 16%

See accompanying Notes to Financial Statements

PAGE 14 ▪ D ODGE &COX S TOCK F UND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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 of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Dodge & Cox Stock Fund (the “Fund”, one of the series constituting Dodge & Cox Funds) 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 in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015, by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP San Francisco, California February 25, 2016

D ODGE &COX S TOCK F UND ▪ PAGE 15 SPECIAL 2015 TAX INFORMATION other accounts managed by Dodge & Cox as compared to the (unaudited) Dodge & Cox Funds; and the ways in which the Funds realize The following information is provided pursuant to provisions of economies of scale. Throughout the process of reviewing the the Internal Revenue Code: services provided by Dodge & Cox and preparing for the meeting, The Fund designates up to a maximum amount of the Independent Trustees found Dodge & Cox to be open, $1,125,715,182 of its distributions paid to shareholders in 2015 as forthright, detailed, and very helpful in answering questions about qualified dividends (treated for federal income tax purposes in the all issues. The Board received copies of the Agreements and a hands of shareholders as taxable at a maximum rate of 20%). memorandum from the independent legal counsel to the For shareholders that are corporations, the Fund designates 100% of its ordinary dividends paid to shareholders in 2015 as Independent Trustees discussing the factors generally regarded as dividends from domestic corporations eligible for the corporate appropriate to consider in evaluating advisory arrangements. The dividends received deduction, provided that the shareholder Trust’s Contract Review Committee, consisting solely of otherwise satisfies applicable requirements to claim that deduction. Independent Trustees, met with the independent legal counsel on November 11, 2015, and again on December 16, 2015, to discuss BOARD APPROVAL OF FUNDS’ INVESTMENT whether to renew the Agreements. The Board, including the MANAGEMENT AGREEMENTS AND Independent Trustees, subsequently concluded that the existing MANAGEMENT FEES Agreements are fair and reasonable and voted to approve the (unaudited) Agreements. In considering the Agreements, the Board, including The Board of Trustees is responsible for overseeing the performance the Independent Trustees, did not identify any single factor or of the Dodge & Cox Funds’ investment manager and determining particular information as all-important or controlling. In reaching whether to continue the Investment Management Agreements the decision to approve the Agreements, the Board considered between the Funds and Dodge & Cox each year (the several factors, discussed below, to be key factors and reached the “Agreements”). At a meeting of the Board of Trustees of the Trust conclusions described below. held on December 16, 2015, the Trustees, by a unanimous vote (including a separate vote of those Trustees who are not “interested NATURE, QUALITY, AND EXTENT OF THE SERVICES persons” (as defined in the Investment Company Act of 1940) (the The Board considered that Dodge & Cox provides a wide range of “Independent Trustees”)), approved the renewal of the Agreements services to the Funds in addition to portfolio management and that for an additional one-year term through December 31, 2016 with the quality of these services has been excellent in all respects. The respect to each Fund. During the course of the year, the Board extensive nature of services provided by Dodge & Cox has been received a wide variety of materials relating to the investment documented in materials provided to the Board and in management and administrative services provided by Dodge & Cox presentations made to the Board throughout the year. In and the performance of each of the Funds. particular, the Board considered the nature, quality, and extent of portfolio management, administrative, and shareholder services INFORMATION RECEIVED performed by Dodge & Cox. With regard to portfolio management In advance of the meeting, the Board, including each of the services, the Board considered Dodge & Cox’s established long- Independent Trustees, requested, received, and reviewed materials relating to the Agreements and the services provided by term history of care and conscientiousness in the management of the Funds; its demonstrated consistency in investment approach Dodge & Cox. The Independent Trustees retained Morningstar® to prepare an independent expense and performance summary for each and depth; the background and experience of the Dodge & Cox Fund and comparable funds managed by other advisers identified by Investment Policy Committee, International Investment Policy Morningstar. The Morningstar materials included information Committee, Global Stock Investment Policy Committee, Fixed regarding advisory fee rates, expense ratios, and transfer agency, Income Investment Policy Committee, and Global Bond custodial, and distribution expenses, as well as appropriate Investment Policy Committee, and research analysts responsible performance comparisons to each Fund’s peer group and an index or for managing the Funds; its methods for assessing the regulatory combination of indices. The Morningstar materials also included a and investment climate in various jurisdictions; Dodge & Cox’s comparison of expenses of various share classes offered by overall high level of attention to its core investment management comparable funds. The materials reviewed by the Board contained function; and its commitment to the Funds and their shareholders. information concerning, among other things, Dodge & Cox’s In the area of administrative and shareholder services, the Board profitability, financial results and condition, advisory fee revenue, considered the excellent quality of Dodge & Cox’s work in areas and separate account and sub-adviser fund fee schedules. The Board such as compliance, legal services, trading, proxy voting, additionally considered the Funds’ brokerage commissions, turnover technology, oversight of the Funds’ transfer agent and custodian, rates, sales and redemption data and the significant investment that tax compliance, and shareholder communication through its Dodge & Cox makes in research used in managing the Funds. The website and other means. The Board also noted Dodge & Cox’s Board received and reviewed memoranda and related materials diligent disclosure policy, its favorable compliance record, and its addressing, among other things, Dodge & Cox’s services to the reputation as a trusted, shareholder-friendly mutual fund family. In Funds; how Dodge & Cox Funds’ fees compare to fees of peer group addition, the Board considered that Dodge & Cox manages funds; the different fees, services, costs, and risks associated with approximately $185 billion in Fund assets with fewer professionals

PAGE 16 ▪ D ODGE &COX S TOCK F UND than most comparable funds, and that on average these considered that the Funds receive numerous administrative, professionals have more experience and longer tenure than regulatory compliance, legal, technology and shareholder support investment professionals at comparable funds. The Board also services from Dodge & Cox without any additional administrative noted that Dodge & Cox is an investment research-oriented firm fee and the fact that the Funds have relatively low transaction with no other business endeavors to distract management’s costs and portfolio turnover rates. The Board noted the Funds’ attention from its research efforts, and that its investment unusual single-share-class structure and reviewed Morningstar data professionals adhere to a consistent investment approach across showing that the few peer group funds with lower expense ratios the Funds. The Board further considered the favorable stewardship often have other share classes with significantly higher expense grades given by Morningstar to each of the Funds and the “Gold” ratios. In this regard, the Board considered that many of the Funds’ analyst rating awarded by Morningstar to all of the Funds except shareholders would not be eligible to purchase comparably-priced the Global Bond Fund. The Board concluded that it was satisfied shares of many peer group funds, which typically make their lower- with the nature, extent, and quality of investment management priced share classes available only to institutional investors. The and other services provided to the Funds by Dodge & Cox. Board determined that the Funds provide access for small investors to high quality investment management at a relatively low cost. INVESTMENT PERFORMANCE The Board reviewed information regarding the fee rates The Board considered short-term and long-term investment Dodge & Cox charges to separate accounts and subadvised funds performance for each Fund (including periods of outperformance or that have investment programs similar to those of the Funds, underperformance) as compared to both relevant indices and the including instances where separate account and sub-advised fund performance of such Fund’s peer group. The Board noted that the fees are lower than Fund fees. The Board considered differences in Funds had weak absolute and relative performance in 2015, but the nature and scope of services Dodge & Cox provides to the remained solid performers over longer periods. The Board Funds as compared to other client accounts, differences in determined after extensive review and inquiry that Dodge & Cox’s regulatory, litigation, and other risks as between Dodge & Cox historic, long-term, team-oriented, bottom-up investment approach Funds and other types of clients. The Board also noted that remains consistent and that Dodge & Cox continues to be different markets exist for mutual fund and institutional separate distinguished by its integrity, transparency, and independence. The account management services. With respect to non-U.S. funds Board considered that the performance of the Funds is the result of sponsored and managed by Dodge & Cox that are comparable to a team-oriented investment management process that emphasizes a the Funds in many respects, the Board noted that the fee rates long-term investment horizon, comprehensive independent charged by Dodge & Cox are the same as or higher than the fee rates charged to the Funds. After consideration of these matters, the research, price discipline, low cost and low portfolio turnover. The Board concluded that the overall costs incurred by the Funds for Board also considered that the investment performance delivered the services they receive (including the management fee paid to by Dodge & Cox to the Funds appeared to be consistent with the Dodge & Cox) are reasonable and that the fees are acceptable based relevant performance delivered for other clients of Dodge & Cox. upon the qualifications, experience, reputation, and performance of The Board concluded that Dodge & Cox has delivered favorable Dodge & Cox and the low overall expense ratios of the Funds. long-term performance for Fund investors consistent with the long- Profitability and Costs of Services to Dodge & Cox; term investment strategies being pursued by the Funds. “Fall-out” Benefits. The Board reviewed reports of Dodge & Cox’s financial position, profitability, and estimated COSTS AND ANCILLARY BENEFITS overall value, and considered Dodge & Cox’s overall profitability Costs of Services to Funds: Fees and Expenses. The Board within its context as a private, employee-owned S-Corporation considered each Fund’s management fee rate and expense ratio and relative to the favorable services provided. The Board noted in relative to each Fund’s peer group and relative to management fees particular that Dodge & Cox’s profits are not generated by high fee charged by Dodge & Cox to other clients. In particular, the Board rates, but reflect an extraordinarily streamlined, efficient, and considered that the Funds continue to be substantially below their focused business approach toward investment management. The peer group median in expense ratios and that many media and Board recognized the importance of Dodge & Cox’s profitability— industry reports specifically comment on the low expense ratios of which is derived solely from management fees and does not the Funds, which have been a defining characteristic of the Funds include other business ventures—to maintain its independence, for many years. The Board also evaluated the operating structures stability, company culture and ethics, and management continuity. of the Funds and Dodge & Cox, noting that the Funds do not The Board also considered that the compensation/profit structure charge front-end sales commissions or distribution fees, and at Dodge & Cox includes a return on shareholder employees’ Dodge & Cox bears, among other things, the significant cost of investment in the firm, which is vital for remaining independent third party research, reimbursement for recordkeeping and and facilitating retention of management and investment administrative costs to third-party retirement plan administrators, professionals. The Board considered independent research and administrative and office overhead. indicating that firms that grow organically, rather than through The Board noted that expenses are well below industry acquisition, tend to have better performance. Key to organic averages. When compared to peer group funds, the Funds are in growth is the ability to retain talented and experienced analysts, the quartile with the lowest expense ratios. The Board also portfolio managers and other professionals.

D ODGE &COX S TOCK F UND ▪ PAGE 17 The Board also considered that in January 2015, The Board considered that Dodge & Cox has a history of Dodge & Cox closed the International Stock Fund to new voluntarily limiting asset growth in several Funds that experienced investors to pro-actively manage the growth of the Fund. The significant inflows by closing them to new investors in order to Stock Fund and Balanced Fund were similarly closed to new protect the Funds’ ability to achieve good investment returns for investors during periods of significant growth in the past. While shareholders. The Board also observed that, even without fee these actions are intended to benefit existing shareholders, the breakpoints, the Funds are competitively priced in a very competitive market and that having a low fee from inception is effect is to reduce potential revenues to Dodge & Cox from new better for shareholders than starting with a higher fee and adding shareholders. The Board also considered potential “fall-out” breakpoints. The Board concluded that the current Dodge & Cox benefits (including the receipt of research from unaffiliated brokers fee structure is fair and reasonable and adequately shares and reputational benefits to non-U.S. funds sponsored and economies of scale that may exist. managed by Dodge & Cox) that Dodge & Cox might receive as a result of its association with the Funds and determined that they CONCLUSION are acceptable. The Board also noted that Dodge & Cox continues Based on their evaluation of all material factors and assisted by the to invest substantial sums in its business in order to provide advice of independent legal counsel to the Independent Trustees, enhanced services, systems and research capabilities, all of which the Board, including the Independent Trustees, concluded that the benefit the Funds. The Board concluded that Dodge & Cox’s advisory fee structure was fair and reasonable, that each Fund was profitability is the keystone of its independence, stability and long- paying a competitive fee for the services provided, that the scope term investment performance and that the profitability of and quality of Dodge & Cox’s services has provided substantial Dodge & Cox’s relationship with the Funds (including fall-out value for Fund shareholders over the long term, and that approval benefits) is fair and reasonable. of the Agreements was in the best interests of each Fund and its shareholders. ECONOMIES OF SCALE The Board considered whether there have been economies of scale FUND HOLDINGS with respect to the management of each Fund, whether the Funds The Fund provides a complete list of its holdings four times each have appropriately benefited from any economies of scale, and fiscal year, as of the end of each quarter. The Fund files the lists whether the management fee rate is reasonable in relation to the with the Securities and Exchange Commission (SEC) on Fund assets and any economies of scale that may exist. In the Form N-CSR (second and fourth quarters) and Form N-Q (first Board’s view, any consideration of economies of scale must take and third quarters). Shareholders may view the Fund’s account of the Funds’ low fee structure and the considerable Forms N-CSR and N-Q on the SEC’s website at sec.gov. Forms efficiencies of the Funds’ organization and fee structure that has N-CSR and N-Q may also be reviewed and copied at the SEC’s been realized by shareholders from the time of each Fund’s Public Reference Room in Washington, DC. Information inception (i.e., from the first dollar). An assessment of economies regarding the operations of the Public Reference Room may be obtained by calling 202-551-8090 (direct) or 800-732-0330 of scale must also take into account that Dodge & Cox invests (general SEC number). A list of the Fund’s quarter-end holdings is significant time and resources in each new Fund for months (and also available at dodgeandcox.com on or about 15 days following sometimes years) prior to launch; in addition, expenses are capped, each quarter end and remains available on the website until the which means that Dodge & Cox earns no revenue and subsidizes list is updated in the subsequent quarter. the operations of a new Fund for a period of time until it reaches scale. PROXY VOTING In addition, the Board noted that Dodge & Cox has shared For a free copy of the Fund’s proxy voting policies and procedures, economies of scale by adding or enhancing services to the Funds please call 800-621-3979, visit the Fund’s website at over time, and that the internal costs of providing investment dodgeandcox.com, or visit the SEC’s website at sec.gov. management, up-to-date technology, administrative, legal, and Information regarding how the Fund voted proxies relating to compliance services to the Funds continue to increase. For portfolio securities during the most recent 12-month period ending example, Dodge & Cox has increased its global research staff and June 30 is also available at dodgeandcox.com or at sec.gov. investment resources over the years to address the increased complexity of investing in multinational and non-U.S. companies. HOUSEHOLD MAILINGS In addition, Dodge & Cox has made substantial expenditures in The Fund routinely mails shareholder reports and summary other staff, technology, cybersecurity, and infrastructure to enable prospectuses to shareholders and, on occasion, proxy statements. it to integrate credit and equity analyses and to be able to In order to reduce the volume of mail, when possible, only one copy of these documents will be sent to shareholders who are part implement its strategy in a more effective and secure manner. Over of the same family and share the same residential address. the last ten years, Dodge & Cox has increased its spending on If you have a direct account with the Funds and you do not third party research, data services, trading systems, technology, and want the mailing of shareholder reports and summary prospectuses recordkeeping service expenses at a rate that has significantly combined with other members in your household, contact the outpaced the Funds’ growth rate during the same period. Funds at 800-621-3979. Your request will be implemented within 30 days.

PAGE 18 ▪ D ODGE &COX S TOCK F UND DODGE & COX FUNDS—EXECUTIVE OFFICER & TRUSTEE INFORMATION Position with Trust Name (Age) and (Year of Election or Address* Appointment) Principal Occupation During Past 5 Years Other Directorships Held by Trustees INTERESTED TRUSTEES AND EXECUTIVE OFFICERS Charles F. Pohl (57) Chairman and Chairman (since 2013), Co-President (2011-2013), Senior Vice President — Trustee (until 2011), and Director of Dodge & Cox; Chief Investment Officer, Portfolio (Officer since 2004) 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) Dana M. Emery President and Trustee Chief Executive Officer (since 2013), President (since 2011), Executive Vice — (54) (Trustee since 1993) President (until 2011), and Director of Dodge & Cox; Director of Fixed Income, Portfolio Manager, and member of FIIPC and Global Bond Investment Policy Committee (GBIPC) John A. Gunn (72) Senior Vice President Chairman Emeritus (2011-2013), Chairman (until 2011), Chief Executive — (Officer since 1998) Officer (until 2010), and Director (until 2013) of Dodge & Cox; Portfolio Manager and member of IPC, GSIPC (until 2014), and IIPC (until 2015) Diana S. Strandberg Senior Vice President Senior Vice President (since 2011), Vice President (until 2011), and Director — (56) (Officer since 2006) (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 Treasurer Vice President and Assistant Treasurer of Dodge & Cox — (58) (Officer since 2006) Thomas M. Mistele Secretary Chief Operating Officer, Director, Secretary, Senior Counsel (since 2011), — (62) (Officer since 1998) and General Counsel (until 2011) of Dodge & Cox Katherine M. Primas Chief Compliance Vice President (since 2011) and Chief Compliance Officer of Dodge &Cox — (41) Officer (Officer since 2009) INDEPENDENT TRUSTEES Thomas A. Larsen Trustee Senior Counsel of Arnold & Porter LLP (law firm) (since 2013); Partner of — (66) (Since 2002) Arnold & Porter LLP (until 2012); Director of Howard, Rice, Nemerovski, Canady, Falk & Rabkin (1977-2011) Ann Mather (55) Trustee CFO, Pixar Animation Studios (1999-2004) Director, Google, Inc. (internet information (Since 2011) services) (since 2005); Director, Glu Mobile, Inc. (multimedia software) (since 2005); Director, Netflix, Inc. (internet television) (since 2010); Director, Arista Networks (cloud networking) (since 2013); Director, Shutterfly, Inc. (internet photography services/publishing) (since 2013) Robert B. Morris III Trustee Advisory Director, The Presidio Group (since 2005) — (63) (Since 2011) Gary Roughead (64) Trustee Annenberg Distinguished Visiting Fellow, Hoover Institution (since 2012); Director, Northrop Grumman Corp. (global (Since 2013) Admiral, United States Navy (Ret.); U.S. Navy Chief of Naval Operations security) (since 2012) (2008-2011) Mark E. Smith (64) Trustee Executive Vice President, Managing Director—Fixed Income at Loomis Sayles — (Since 2014) & Company, L.P. (2003-2011)

D ODGE &COX S TOCK F UND ▪ PAGE 19 Stock Fund

dodgeandcox.com For Fund literature, transactions, and account information, please visit the Funds’ website. or write or call:

DODGE & COX FUNDS c/o Boston Financial Data Services P.O. Box 8422 Boston, Massachusetts 02266-8422 (800) 621-3979

INVESTMENT MANAGER Dodge & Cox 555 California Street, 40th Floor San Francisco, California 94104 (415) 981-1710

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.

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