DODGE & COX GLOBAL BOND FUND OVERVIEW WHAT IS YOUR APPROACH TO GLOBAL BOND INVESTING? . Total return focus: Goal of generating high total returns over three to five years, consistent with long-term preservation of capital . Opportunistic approach: Identify attractive investments across global credit, currency and interest rate markets . Risk focus: Seek to maximize risk-adjusted total returns and avoid permanent loss of capital rather than to minimize tracking error WHAT IS UNIQUE ABOUT THE GLOBAL BOND FUND? . Greater emphasis on bottom-up credit and security selection versus many of our peers, who are more top- down (e.g., rates, foreign currency) focused and hold mostly government bonds. Long-term investment horizon and strict valuation discipline, which allows us to ride out short-term volatility and invest when others may be wary. Large and experienced research and investment teams that have been investing globally for decades, made up of 60 investment professionals. Our industry analysts cover the entire capital structure of over 600 companies worldwide. The fixed income team supplements the credit analysis and provides primary research on countries, rates, currencies, and structured products. Team decision-making process involving multiple levels of analysis and review. We devote a significant amount of time and resources to each investment decision, which we believe is both a source of opportunity identification and risk control. Many global bond funds are positioned similarly to global bond benchmarks: significant exposure to low-yielding developed market government bonds, high duration, and large exposures to the euro and yen. In the current environment, we don’t believe this positioning will provide attractive returns over longer time periods and have positioned the fund differently. Fund positioning reflects our total return-oriented mindset. Dodge & Cox Global Bloomberg Barclays Global Bond Fund* Aggregate Bond Index* Yield to Worst 3.90% 1.64% Effective Duration 3.7 Years 7.0 Years % Corporates 45% 19% % Government 22% 54% % Euro 0% 23% % Japanese Yen 0% 17% % Emerging Market Currency 15% 3% *All figures as of March 31, 2017. The Bloomberg Barclays Global Aggregate Bond Index is a widely recognized, unmanaged index of multi- currency, investment-grade debt securities. WHAT IS THE FUND’S INVESTABLE UNIVERSE? WHAT IS THE FUND’S BENCHMARK? The Fund invests across a full spectrum of global fixed income markets, leveraging our in-depth, independent research effort across all geographies (developed and emerging) and sectors (corporate, government, securitized). We hold predominantly investment-grade securities, although our prospectus allows us to purchase as much as 20% in below investment-grade securities. D ODGE & C OX® Global Bond Fund | 1 While we are largely benchmark agnostic in managing the Global Bond Fund, we chose the Bloomberg Barclays Global Aggregate Bond Index as the Fund’s benchmark. It is the only major global bond index that includes credit and structured products, which we believe broadly reflects our opportunity set. We chose the unhedged version of the benchmark because we view currency as a source of return. WHO MANAGES THE FUND? As with all Dodge & Cox investment strategies, an Investment Committee serves as the portfolio manager and is ultimately responsible for setting portfolio strategy and overseeing implementation of approved investment decisions. The six-member Global Fixed Income Investment Committee (GFIIC), whose tenure averages 22 years at Dodge & Cox, is the portfolio manager for the Dodge & Cox Global Bond Fund. Global Fixed Income Title/Function/ Industry Firm Education* Investment Committee (GFIIC) Responsibilities Experience Experience (Yrs.) (Yrs.) Dana M. Emery, CFA Chief Executive 34 34 Stanford University ’83 Officer, President, (B.A.) and Director of Fixed Income Diana S. Strandberg, CFA Senior Vice President 31 29 Harvard University ‘86 and Director of International Equity Thomas S. Dugan, CFA Senior Vice President 28 23 University of California, and Associate Berkeley ‘92 Director of Fixed Income James H. Dignan, CFA Vice President and 21 18 Northwestern Fixed Income Analyst University ‘96 New York University ’94 (M.A.) Adam S. Rubinson, CFA Vice President and 20 15 Stanford ‘91 (J.D.) Fixed Income Analyst Lucinda I. Johns, CFA Vice President and 17 15 UCLA ‘04 Fixed Income Analyst *Master’s Degree unless otherwise noted. WHAT IS YOUR INVESTMENT PROCESS? As with all strategies at Dodge & Cox, we employ a team-based decision-making process: Individual analysts conduct initial research on investment ideas for vetting by relevant sector committees and consideration/approval by the relevant Investment Committee. D ODGE & C OX® Global Bond Fund | 2 All research ideas start with individual advocacies by members of our research team. Dodge & Cox’s 28 global industry analysts are a shared resource across its fixed income and equity strategies, leveraging their depth of company and industry knowledge to offer credit insight and make equity recommendations. Analysts conduct rigorous fundamental analysis to develop long-term investment views, preparing detailed reports (for companies or countries) and models to support their advocacies, which are presented to sector committees for further discussion. For the Global Bond Fund, the relevant sector committees are the Credit Sector Committee, Global Bond Macro Committee, and Structured Products Sector Committee. Credit Sector Committee (CSC) . Our Credit Sector Committee vets new credit investment ideas and regularly reviews existing holdings. Industry analysts and credit team members work collaboratively in conducting research and developing investment recommendations to present at regular CSC meetings. Global industry analysts are responsible for in-depth company and industry research. This includes meeting with company management teams, competitors, suppliers, and industry experts. They forecast company financial statements over several years and over a range of reasonable scenarios, and they explore key downside risks and fallback options that may exist. Credit analysts are responsible for assessing relative value, liquidity, structural features, and security availability across the universe of credit opportunities. They also work closely with the industry analysts to construct credible “downside” cases. Global Bond Macro Committee (GBMC) . Our Global Bond Macro Committee develops views and vets ideas for credit, currency, and interest rate investments (both developed and emerging markets). These views drive the Fund’s positioning and are also leveraged across Dodge & Cox’s other investment strategies as the team discusses both equity and debt investments. Analysts covering countries are responsible for in-depth analysis of economic and political opportunities and risks and identifying key drivers of currency and interest rates. The research D ODGE & C OX® Global Bond Fund | 3 process incorporates a broad range of macroeconomic data and on- and off-site meetings with government officials, policy makers, and other experts. They also utilize quantitative tools and internally developed models to assess the likely longer-term path of interest rates and currencies. We spend significant time understanding the specific risks associated with investing in each emerging market, since such markets often have less stable political and institutional frameworks and weaker governance structures. Structured Products Sector Committee (SPG) . Our Structured Products Sector Committee reviews investments in the global securitized products sector including mortgage backed securities (MBS), asset-backed securities (ABS), covered bonds, and other structured security types. The research process emphasizes fundamental analysis on loan/borrower characteristics of the underlying loans, structural and underwriting features, cash flow variability under various interest rate and prepayment scenarios, and relative valuations. Global Fixed Income Investment Committee (GFIIC): . The Global Fixed Income Investment Committee is responsible for providing portfolio-level oversight within our bottom-up investing framework. In this role as the Portfolio Manager for the Fund, it sets portfolio strategy and oversees the implementation process. This includes considering suitability of new ideas relative to the Fund’s investment objective and risk tolerance; reviewing issuer, sector, country, and currency weightings; and analyzing relative value across sectors. The GFIIC also has responsibility for overseeing portfolio-level risks, regularly reviewing risk reports, running scenario analyses on various portfolio risk factors, and ensuring adequate diversification. HOW DO YOU APPROACH RISK MANAGEMENT FOR THE GLOBAL BOND FUND? Our approach to risk management starts at the security level and extends to the portfolio level. Key elements include an in-depth knowledge of each individual investment, a focus on valuation, and diversification along several dimensions (e.g., sector, country, currency, market theme), with the goal of avoiding permanent loss of capital. We use quantitative risk models, notably the POINT Global Risk Model*, which help us monitor and evaluate portfolio exposures (absolute and relative) to various factors. These models estimate portfolio volatility and tracking error based on the portfolio’s exposure to systemic risk factors and the variance/covariance between risk factors. We use these models to substantiate our own understanding of these risks to try