Dodge & Cox Funds Statutoary Prospectus dated May 1, 2013

y non-U.S. companies from at least three differentcountries, including emerging market countries. The Fund isnot required to allocate its investments in set percentages inparticular countries and may invest in emerging marketswithout limit. Under normal circumstances, the Fund willinvest at least 80% of its total assets in common stocks,preferred stocks, securities convertible into common stocks,and securities that carry the right to buy common stocks ofnon-U.S. companies (e.g., rights and warrants). The Fundmay enter into forward currency contracts or currencyfutures contracts to hedge foreign currency exposure. Furtherinformation about specific investments is provided underAdditional Information on Investments.Moderate reserves in cash or short-term debtsecurities may be held from time to time as Dodge & Coxmay deem advisable. For temporary, defensive purposes,the Fund may invest, without limitation, in U.S. dollardenominatedshort-term debt instruments. As a result oftaking this defensive position, the Fund may not achieveits investment objective. Nevertheless, the long-termemphasis is to maintain a fully invested equity fund.Securities selected for the Fund are predominantlythose which, in the view of Dodge & Cox, have positiveprospects for long-term growth of principal and incomenot reflected in the current price. Prospective earnings,cash flow, and dividends are considered in making thesestock selections. Various other factors, including financialstrength, economic condition, competitive advantage,quality of the business franchise, and the reputation,experience, and competence of a company’s managementare weighed against valuation in selecting individualsecurities. The Fund also considers the economic andpolitical stability of a country and the protectionsprovided to foreign shareholders. The Fund investsprimarily in medium-to-large well-established companiesbased on standards of the applicable market.The Fund’s investment policies described above maybe changed without shareholder approval; however, thesepolicies will not be changed without 60 days’ prior noticeto shareholders.In an attempt to minimize unforeseen risks in holdingthe securities of a single issuer, the Fund seeks to provideinvestment diversification. Although there is norestriction on the number of changes in security holdings,purchases generally are made with a view to holding forthe long term and not for short-term trading purposes.(The Fund’s portfolio turnover rates for the fiscal yearsended December 31, 2013, 2012, and 2011 were 13%,10%, and 16%, respectively.) However, during rapidlychanging economic, market, and political conditions,portfolio turnover may be higher than in a more stableperiod. A higher turnover rate might result in increasedtransaction expenses and the realization of capital gainsand losses, some of which may be short-term capital gainstaxed as ordinary income (see Federal Income Taxes). Itis the general practice of the Fund to invest in securities ofnon-U.S. companies with ready markets, mainly issueslisted on U.S. and foreign national securities exchanges.In seeking to achieve the objectives of the Fund,Dodge & Cox may lend the Fund’s portfolio securities.DODGE & COX BALANCED FUNDINVESTMENT OBJECTIVES AND PRINCIPALINVESTMENT STRATEGIESThe Fund’s objectives are to provide shareholders withregular income, conservation of principal, and anopportunity for long-term growth of principal and income.These objectives may not be changed without shareholderapproval. Investors should recognize that the market risksinherent in investing in securities cannot be avoided, andthere is no assurance that the investment objectives of theFund will be achieved. Reasonable appreciation infavorable periods and conservation of principal in adversetimes are objectives that require flexibility in managingthe assets of the Fund under constantly changinginvestment conditions. Therefore, the proportions held inequity and debt are revised by Dodge & Cox whenconsidered advisable in light of Dodge & Cox’s appraisalof business and investment prospects.While the mix of securities will vary according toDodge & Cox’s outlook on the markets, under normalcircumstances, it is the policy of the Fund to maintain nomore than 75% (and no less than 25%) of its total assetsin equity securities. Debt securities are held for theirrelative stability of principal and income, as well as for areserve which can be used to take advantage ofinvestment opportunities. The Fund may invest up toD ODGE & C OX F UNDS ▪ PAGE 29