Dodge & Cox Funds Statutoary Prospectus dated May 1, 2013

securities rated Baa or BBB or below have speculativecharacteristics. These securities may yield a higher level ofcurrent income than higher-rated securities, but generallyhave greater credit risk, more price volatility, and lessliquidity. An explanation of Moody’s, Fitch’s, and S&P’srating categories is included in Appendix A to the SAI.The Fund may enter into various currency or interestrate-related transactions involving derivative instruments,including forwards, futures, swaps, and options. The Fundmay use derivatives to seek to minimize the impact oflosses to one or more of its investments (as a “hedgingtechnique”) or to implement its investment strategy. Forexample, the Fund may invest in derivative instrumentsthat provide exposure to a specific security or marketsector as a substitute for a direct investment in thesecurity or sector itself or to benefit from changes in therelative values of selected currencies. The Fund may useinterest rate derivatives for a variety of purposes,including, but not limited to, managing the Fund’sduration or adjusting the Fund’s exposure to debtsecurities with different maturities. In addition, the Fundmay invest in credit default swaps to increase or decreasecredit exposure to a particular issuer or a group of issuersthat comprise a particular segment of the debt market.The Fund may also enter into options on swaps(swaptions). The Fund’s use of derivatives is related to theimplementation of its overall primary investment strategyof investing in a portfolio of debt securities. However, theFund is not intended to be a vehicle through whichshareholders can invest in, or otherwise seek exposure to,derivatives.Fundamental research (i.e., seeking a security orgroup of securities which Dodge & Cox believes to beundervalued), a long-term investment horizon and avaluation discipline are central to Dodge & Cox’sinvestment philosophy. In selecting securities, Dodge &Cox considers many factors, including, without limitation,yield-to-maturity, covenants, credit quality, liquidity, callrisk, and capital appreciation potential. For all securitiesthat are denominated in a foreign currency, Dodge & Coxanalyzes whether to accept or hedge the associatedinterest rate and currency risks. Dodge & Cox considers,among other things, a country’s economic outlook andpolitical stability, the protections provided to foreigninvestors, relative interest rates, exchange rates, acountry’s monetary and fiscal policies, its debt stock, aswell as its ability to meet its funding needs.The Fund may purchase or sell holdings for a variety ofreasons such as to alter sector, geographic, or currencyexposure or to shift the overall portfolio’s risk profile. Theproportions of the Fund’s assets held in various debtinstruments will be revised in light of Dodge & Cox’sappraisal of the global economy, the relative yields ofsecurities in the various market sectors and countries, thepotential for a currency’s appreciation, the investmentprospects for issuers, the countries’ domestic and politicalconditions and other factors. The Fund may also buy or sellforeign currencies, currency derivatives, and interest ratederivatives in lieu of, or in addition to, direct investmentsin debt securities in order to increase or decrease portfolioexposure to specific interest rate and/or currency markets.The average maturity of the Fund’s portfolio at any giventime depends, in part, on Dodge & Cox’s assessment of theforegoing factors and Dodge & Cox’s expectation regardingthe future level of inflation and interest rates. Dodge &Cox normally invests in an array of securities with short,intermediate, and long maturities in varying proportions.Moderate reserves in cash or short-term debt securitiesmay be held from time to time as Dodge & Cox may deemadvisable. In addition, for temporary, defensive purposes, theFund may invest, without limitation, in short-term debtinstruments. As a result of taking such defensive position, theFund may not achieve its investment objective. Furtherinformation about specific investments is provided underAdditional Information on Investments.In seeking to achieve the objective of the Fund,Dodge & Cox may purchase securities on a when-issuedbasis and purchase or sell securities for delayed delivery.The Fund’s investment objective and its investmentpolicy of investing at least 40% of its total assets insecurities of non-U.S. issuers and at least 80% of its totalassets in debt instruments, described above, may bechanged without shareholder approval; however it will notbe changed without 60 days’ prior notice to shareholders.Although there is no restriction on the number ofchanges in the Fund’s security holdings, purchases generallyaremadewithaviewtoholdingforthelongtermandnotfor short-term trading purposes. However, duringD ODGE & C OX F UNDS ▪ PAGE 33