Dodge & Cox Funds Statutoary Prospectus dated May 1, 2013
Dodge & Cox Funds Statutoary Prospectus dated May 1, 2013 Dodge & Cox Funds Statutoary Prospectus dated May 1, 2013
FUND MANAGEMENTDodge & Cox serves as investment manager to the Balanced Fund. The equity portion of the Balanced Fund is managed byDodge & Cox’s Investment Policy Committee (IPC), which is also responsible for determining the asset allocation of theBalanced Fund. The debt portion of the Balanced Fund is managed by Dodge & Cox’s Fixed Income Investment PolicyCommittee (FIIPC). IPC consists of the following nine members:Committee Member Primary Titles with Investment ManagerYears managingthe Fund/Years withDodge & CoxJohn A. Gunn Portfolio Manager and member of International Investment Policy Committee (IIPC) 37/42Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, 22/30and member of FIIPC, Global Stock Investment Policy Committee (GSIPC), and IIPCC. Bryan Cameron Senior Vice President, Director of Research, Portfolio Manager, Investment Analyst, and 22/31member of IIPCDiana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager,Investment Analyst, and member of GSIPC, IIPC, and Global Bond Investment PolicyCommittee (GBIPC)9/26David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, and 12/21Investment AnalystGregory R. Serrurier Senior Vice President, Portfolio Manager, and member of IIPC 18/30Wendell W. Birkhofer Vice President and Portfolio Manager 12/27Steven C. Voorhis Vice President, Portfolio Manager, Investment Analyst, and member of GSIPC 8/18Philippe Barret, Jr. Vice President, Portfolio Manager, and Investment Analyst 1/10FIIPC consists of the following nine members:Committee Member Primary Titles with Investment ManagerYears managingthe Fund/Years withDodge & CoxDana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, 28/31and member of GBIPCCharles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, 21/30and member of IPC, GSIPC, and IIPCThomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, 20/20Investment Analyst, and member of GBIPCKent E. Radspinner Vice President, Portfolio Manager, and Investment Analyst 18/18Larissa K. Roesch Vice President, Portfolio Manager, and Investment Analyst 16/17James H. Dignan Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 12/15Anthony J. Brekke Vice President, Portfolio Manager, and Investment Analyst 6/11Adam S. Rubinson Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 4/12Lucinda I. Johns Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 2/12OTHER IMPORTANT INFORMATION ABOUT FUND SHARESFor important information about purchase and sale of Fund shares, tax information, and payments to financial intermediariesplease turn to the “Summary of Other Important Information About Fund Shares” section on page 26 of this prospectus.PAGE 16 ▪ D ODGE & C OX F UNDS
DODGE & COX INCOME FUNDINVESTMENT OBJECTIVESThe Fund seeks a high and stable rate of current income,consistent with long-term preservation of capital. Asecondary objective is to take advantage of opportunitiesto realize capital appreciation.FEES AND EXPENSESThis table describes the fees and expenses that you maypay if you buy and hold shares of the Fund.SHAREHOLDER FEES(fees paid directly from your investment)Sales charge (load) imposed on purchasesDeferred sales charge (load)Sales charge (load) imposed onreinvested distributionsRedemption feeExchange feeANNUAL FUND OPERATING EXPENSES(expenses that you pay each year as a percentage of the value ofyour investment)NoneNoneNoneNoneNoneManagement fees .40%Distribution and/or service (12b-1) feesNoneOther expenses (transfer agent, custody,accounting, legal, etc.) .03%Total Annual Fund Operating Expenses .43%Example: This example is intended to help you comparethe cost of investing in the Fund with the cost ofinvesting in other mutual funds.The example assumes that:▪ You invest $10,000 in the Fund for the time periodsindicated and then redeem all of your shares at the endof those time periods;▪ Your investment has a 5% return each year; and▪ The Fund’s operating expenses remain the same.Although your actual costs may be higher or lower,under these assumptions your costs would be:1 Year 3 Years 5 Years 10 Years$44 $138 $241 $542PORTFOLIO TURNOVERThe Fund pays transaction costs when it buys and sellssecurities (or “turns over” its portfolio). A higher portfolioturnover rate may indicate higher transaction costs andmay result in higher taxes when Fund shares are held in ataxable account. These transaction costs, which are notreflected in annual Fund operating expenses or in theexample, affect the Fund’s performance. During the mostrecent fiscal year, the Fund’s portfolio turnover rate was38% of the average value of its portfolio.PRINCIPAL INVESTMENT STRATEGIESThe Fund invests in a diversified portfolio of high-qualitybonds and other debt securities. Under normalcircumstances, the Fund will invest at least 80% of itstotal assets in the following categories: (1) debtobligations issued or guaranteed by the U.S. government,its agencies or GSEs; (2) investment-grade debt securities(securities rated Baa or higher by Moody’s InvestorsService (Moody’s), or BBB or higher by Standard &Poor’s Ratings Group (S&P) or Fitch Ratings (Fitch), orequivalently rated by any nationally recognized statisticalrating organization (NRSRO)), including U.S. dollardenominatedforeign issues and issues of supranationalagencies; (3) unrated securities if deemed to be ofinvestment-grade quality by Dodge & Cox; and(4) bankers’ acceptances, bank certificates of deposit,repurchase agreements, and commercial paper. Debtsecurities in which the Fund invests include governmentand government-related obligations, mortgage and assetbackedsecurities, corporate and municipal bonds,collateralized mortgage obligations, and other debtsecurities, and may include fixed and floating rateinstruments. Up to 20% of the Fund’s total assets may beinvested in below investment-grade debt securities,commonly referred to as high-yield or “junk” bonds, ifthey have a minimum rating of B by Moody’s, Fitch, orS&P, are equivalently rated by any NRSRO, or, ifunrated, are deemed to be of similar quality by Dodge &Cox. The Fund may invest up to 25% of its total assets inU.S. dollar-denominated securities of non-U.S. issuers,including emerging market issuers. The Fund may alsoinvest in interest rate derivatives such as U.S. Treasuryfutures and swap agreements for a variety of purposes,including, but not limited to, managing the Fund’sduration or adjusting the Fund’s exposure to debtD ODGE & C OX F UNDS ▪ PAGE 17
- Page 1 and 2: D ODGE & COX F UNDS ®May 1, 2014Li
- Page 3 and 4: DODGE & COX STOCK FUNDINVESTMENT OB
- Page 5 and 6: do not reflect the impact of state
- Page 7 and 8: should expect the Fund’s share pr
- Page 9 and 10: FUND MANAGEMENTDodge & Cox serves a
- Page 11 and 12: PRINCIPAL RISKS OF INVESTINGYou cou
- Page 13 and 14: FUND MANAGEMENTDodge & Cox serves a
- Page 15 and 16: may be invested in below investment
- Page 17: An investment in the Fund is not a
- Page 21 and 22: was anticipated, delaying the retur
- Page 23 and 24: DODGE & COX GLOBAL BOND FUNDINVESTM
- Page 25 and 26: “junk” securities, have specula
- Page 27 and 28: The Fund’s past performance (befo
- Page 29 and 30: INVESTMENT OBJECTIVES, PRINCIPAL IN
- Page 31 and 32: y non-U.S. companies from at least
- Page 33 and 34: apidly changing economic, market, a
- Page 35 and 36: securities rated Baa or BBB or belo
- Page 37 and 38: lower interest rates, resulting in
- Page 39 and 40: DISCLOSURE OF PORTFOLIO HOLDINGSA c
- Page 41 and 42: successful, hedging strategies may
- Page 43 and 44: also include futures contracts that
- Page 45 and 46: HOW TO PURCHASE SHARES (continued)I
- Page 47 and 48: authorized signatory named on a cer
- Page 49 and 50: If, subsequent to placing a redempt
- Page 51 and 52: fully reflect their fair value. The
- Page 53 and 54: PRICING OF SHARESThe share price (n
- Page 55 and 56: from the account. These accounts ar
- Page 57 and 58: GLOBAL STOCK INVESTMENT POLICY COMM
- Page 59 and 60: FIXED INCOME INVESTMENT POLICY COMM
- Page 61 and 62: Code of Ethics Dodge & Cox has adop
- Page 63 and 64: Important Note: The services descri
- Page 65 and 66: DODGE & COX BALANCED FUNDYear Ended
FUND MANAGEMENT<strong>Dodge</strong> & <strong>Cox</strong> serves as investment manager to the Balanced Fund. The equity portion of the Balanced Fund is managed by<strong>Dodge</strong> & <strong>Cox</strong>’s Investment Policy Committee (IPC), which is also responsible for determining the asset allocation of theBalanced Fund. The debt portion of the Balanced Fund is managed by <strong>Dodge</strong> & <strong>Cox</strong>’s Fixed Income Investment PolicyCommittee (FIIPC). IPC consists of the following nine members:Committee Member Primary Titles with Investment ManagerYears managingthe Fund/Years with<strong>Dodge</strong> & <strong>Cox</strong>John A. Gunn Portfolio Manager and member of International Investment Policy Committee (IIPC) 37/42Charles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, 22/30and member of FIIPC, Global Stock Investment Policy Committee (GSIPC), and IIPCC. Bryan Cameron Senior Vice President, Director of Research, Portfolio Manager, Investment Analyst, and 22/31member of IIPCDiana S. Strandberg Senior Vice President, Director of International Equity, Director, Portfolio Manager,Investment Analyst, and member of GSIPC, IIPC, and Global Bond Investment PolicyCommittee (GBIPC)9/26David C. Hoeft Senior Vice President, Associate Director of Research, Director, Portfolio Manager, and 12/21Investment AnalystGregory R. Serrurier Senior Vice President, Portfolio Manager, and member of IIPC 18/30Wendell W. Birkhofer Vice President and Portfolio Manager 12/27Steven C. Voorhis Vice President, Portfolio Manager, Investment Analyst, and member of GSIPC 8/18Philippe Barret, Jr. Vice President, Portfolio Manager, and Investment Analyst 1/10FIIPC consists of the following nine members:Committee Member Primary Titles with Investment ManagerYears managingthe Fund/Years with<strong>Dodge</strong> & <strong>Cox</strong>Dana M. Emery Chief Executive Officer, President, Director of Fixed Income, Director, Portfolio Manager, 28/31and member of GBIPCCharles F. Pohl Chairman, Chief Investment Officer, Director, Portfolio Manager, Investment Analyst, 21/30and member of IPC, GSIPC, and IIPCThomas S. Dugan Senior Vice President, Associate Director of Fixed Income, Director, Portfolio Manager, 20/20Investment Analyst, and member of GBIPCKent E. Radspinner Vice President, Portfolio Manager, and Investment Analyst 18/18Larissa K. Roesch Vice President, Portfolio Manager, and Investment Analyst 16/17James H. Dignan Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 12/15Anthony J. Brekke Vice President, Portfolio Manager, and Investment Analyst 6/11Adam S. Rubinson Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 4/12Lucinda I. Johns Vice President, Portfolio Manager, Investment Analyst, and member of GBIPC 2/12OTHER IMPORTANT INFORMATION ABOUT FUND SHARESFor important information about purchase and sale of Fund shares, tax information, and payments to financial intermediariesplease turn to the “Summary of Other Important Information About Fund Shares” section on page 26 of this prospectus.PAGE 16 ▪ D ODGE & C OX F UNDS
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