investment review for - · pdf fileinvestment review for: i. update on dodge & cox ......

Investment Review for:

I. Update on Dodge & Cox

II. Investment Review

II. Current Strategy and Outlook

III. Supplemental Exhibits

Representing Dodge & Cox:

Deirdre A. Curry, Vice President

This information was prepared at the above-named client’s request in connection with a review of the client’s account. The following information may not be distributed to or shared with any third partythat is not an existing Dodge & Cox client without Dodge & Cox's prior written consent. Dodge & Cox does not guarantee the future performance of any account (including Dodge & Cox Funds) orany specific level of performance, the success of any investment decision or strategy that Dodge & Cox may use, or the success of Dodge & Cox's overall management of an account. Investment decisionsmade for a client's account by Dodge & Cox are subject to various market, currency, economic, political, and business risks (foreign investing, especially in developing countries, has special risks such ascurrency and market volatility and political and social instability), and those investment decisions will not always be profitable. While every effort is made to ensure accuracy, no representation is madethat all information in this presentation is accurate or complete. Neither the information nor any opinion expressed in this presentation constitutes an offer to buy or sell the securities mentioned. Thisinformation is the confidential and proprietary product of Dodge & Cox. Any unauthorized use, reproduction, or disclosure is strictly prohibited.

E-10927-071913-100611 |

October 27, 2015

City of Fresno Employees & Fire & Police Retirement Systems

DODGE & COX Investment Managers | San Francisco

pattiel

Text Box

Timed Item: 2:00 pm Joint Meeting of the Retirement Boards Meeting Date: 10/27/2015

Key Characteristics of Our Organization September 30, 2015

Over 80 Years of Investment Experience

Dodge & Cox was founded in 1930. We have a stable and well-qualified team of investment professionals, most of whom have spent their

entire careers at Dodge & Cox.

Independent Organization

Ownership of Dodge & Cox is limited to active employees of the firm. Currently there are 77 shareholders and 249(a) total employees.

One Business

Dodge & Cox is solely in the business of investing our clients’ assets. We apply a consistent investment approach to managing equity, debt,

and balanced portfolios.

Single Investment Office Location

We maintain close communication among our investment professionals by managing investments from one office in San Francisco.

Independent Research Staff

Thorough fundamental analysis of each investment allows us to make independent, long-term decisions for our clients’ portfolios.

E-325-100915-10611 |

(a)Includes employees of wholly owned subsidiary Dodge & Cox Worldwide Investments Ltd. (UK).

DODGE & COX Investment Managers | San Francisco 1

Stock Fund $53.7

Balanced Fund $14.1

Income Fund$43.7

International Stock Fund$59.1

Global Stock Fund $5.8

Global Bond Fund $68 Million

Dodge & Cox Assets Under Management ($ in Billions)

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus,which contain this and other important information, visit dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

E-353-100815-112211 |

Non-U.S. Funds (Irish UCITS): $2.1 Billion

September 30, 2015

Dodge & Cox Funds: $176.5 Billion Separate Accounts: $81.3 Billion

$259.9 in Total Assets: $153.5 in Equities / $106.4 in Fixed Income

Balanced$4.4

Fixed Income$57.2

Equity $19.7

International Stock$62 Million

Global Stock$1.6 Billion

U.S. Stock$386 Million

Global Bond$38 Million


Lo

Co

edit:

%

C

539 -2%

128 -0% te T

Fixed Income Asset Breakdown ($ in millions)

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September 30, 2015

$106,408 in Total Fixed Income Assets

Long Duration Benchmark TypeFixed Income Strategy Type

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus,which contain this and other important information, visit dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

Other: 0%$23

Long Other: 19% $3,669

Tax-Exempt Municipal: 0%$428

Long Government/Credit: 18%$3,409

Long Credit or Corporate: 63% $12,097

Core: 71%$75,692

Intermediate: 8%$8,446

Long: 18%$19,175

Short: 2%$2,539

Global Bonds: 0%$106


Fixed Income Investment Policy CommitteeDana Emery 32 James Dignan 16 Charles Pohl 31 Lucy Johns 13 Thomas Dugan 21 Adam Rubinson 13Larissa Roesch 18 Anthony Brekke 12

Average Tenure: 20

Global Stock Investment Policy CommitteeCharles Pohl 31 Karol Marcin 15 Diana Strandberg 27 Lily Beischer 14Steven Voorhis 19 Raymond Mertens 12Roger Kuo 17 Average Tenure: 19

Experienced and Stable Investment Team September 30, 2015

Global Industry Analysts and PMs / Years at D&C / CoverageJohn Gunn 43 Former ChairmanBryan Cameron 32 Senior Vice President, Director of ResearchCharles Pohl 31 Chairman, Chief Investment Officer Gregory Serrurier 31 Senior Vice President, Portfolio ManagerWendell Birkhofer 28 Portfolio ManagerLynn Poole 28 Portfolio ManagerDiana Strandberg 27 Senior Vice President, Dir. of Intl. EquityKevin Johnson 26 Portfolio Manager, EnergySteven Cassriel 23 Portfolio ManagerDavid Hoeft 22 Senior Vice President, Assoc. Dir. of Research,

Computer Hardware & SoftwareSteven Voorhis 19 PharmaceuticalsJohn Iannuccillo 18 Aerospace, Electrical Equipment, Paper,

Analytical InstrumentsMario DiPrisco 17 Banks (EMEA, Latin America)Roger Kuo 17 Media, InternetKeiko Horkan 15 Banks (U.S., Japan), Specialty / Consumer

Finance, JapanKarol Marcin 15 InsuranceAmanda Nelson 15 Telecom Equipment, Electric Utilities, Natural

Gas Pipelines, EEMEALily Beischer 14 Telecom (Asia, EM), Retail, Footwear &

Apparel, CosmeticsRichard Callister 13 Machinery, Medical Devices, EM Asia

(ex. China & India)Englebert Bangayan 13 Energy, Oil Services, Commercial Services,

Homebuilders, EM Asia IndustrialRaymond Mertens 12 Commercial Printing, Healthcare Services,

Consumer ProductsPhilippe Barret, Jr. 11 Brokers, Investment Managers & Exchanges,

Banks (Asia ex. Japan, Central Europe, Middle East), Trust Banks

Karim Fakhry 9 Appliances, Building Products & Home Improvement (U.S.), Biotech & Pharma

Joel-Patrick Millsap 9 Telecom Services (South America, Africa, Europe), Autos

Kathleen McCarthy 8 Beverages, Restaurants, EMEA Consumer, Building Products (Int’l.), Tobacco, Latin America

Paritosh Somani 8 Metals & Mining, Computer Services, EM Asia Consumer, India

Tae Yamaura 7 Connectors, Logic Semiconductors, JapanArun Palakurthy 7 Consumer Electronics, Memory

Semiconductors, Telecom Services (Americas), Video Games

Benjamin Garosi 6 Chemicals, TransportationHallie Marshall 6 Portfolio ManagerSalil Phadnis 4 Energy, Oil, REITs, HotelsSophie Chen 3 Greater ChinaRobert Turley 2 Asset Allocation, Economics, Portfolio StrategyRameez Dossa 2 Banks (Europe)Kevin Glowalla 2 Telecom (Europe, Developed Asia)

Fixed Income Analysts and PMs / Years at D&C / CoverageDana Emery 32 Chief Executive Officer, President,

Director of Fixed IncomeShirlee Neil 23 Corporates, Portfolio TransitionsThomas Dugan 21 Senior Vice President, Associate Director of

Fixed Income, Mortgage-Backed SecuritiesStephanie Notowich 20 Mortgage-Backed Securities, Portfolio ManagerKent Radspinner 19 Asset-Backed Securities, TIPS, Treasury

Futures, Portfolio ManagerNancy Kellerman 19 Municipals, Treasury TradingLarissa Roesch 18 Corporates, Portfolio ManagerJames Dignan 16 Mortgage-Backed SecuritiesE. Saul Peña 15 CorporatesThinh Le 14 CorporatesLucy Johns 13 Corporates, Global Bonds, Portfolio ManagerJay Stock 13 Analytics Systems, Treasury FuturesAdam Rubinson 13 Corporates, Portfolio ManagerDamon Blechen 13 Corporates, Global Bonds Anthony Brekke 12 Corporates, Portfolio ManagerNils Reuter 12 Mortgage-Backed SecuritiesLinda Chong 10 Mortgage- and Asset-Backed SecuritiesNicholas Lockwood 8 Municipals, Treasury TradingAllen Feldman 8 Mortgage-Backed Securities, Analytics SystemsMichael Kiedel 7 Corporates, Taxable MunicipalsMatthew Schefer 7 Corporates, Global Bonds, Emerging MarketsMasato Nakagawa 3 Mortgage-Backed SecuritiesMimi Yang 1 Global BondsJose Ursua new Macroeconomics, Currency, Global BondsDavid Strasburg new CorporatesSamir Amso new Global Bonds, Corporates

Investment Policy CommitteeJohn Gunn 43 Diana Strandberg 27Bryan Cameron 32 David Hoeft 22Charles Pohl 31 Steven Voorhis 19Gregory Serrurier 31 Philippe Barret 11Wendell Birkhofer 28 Average Tenure: 27

International Investment Policy CommitteeBryan Cameron 32 Roger Kuo 17Charles Pohl 31 Keiko Horkan 15Gregory Serrurier 31 Richard Callister 13Diana Strandberg 27 Englebert Bangayan 13 Mario DiPrisco 17 Average Tenure: 22

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Years of experience at Dodge & Cox are updated annually in May

Global Bond Investment Policy CommitteeDana Emery 32 James Dignan 16Diana Strandberg 27 Lucy Johns 13Thomas Dugan 21 Adam Rubinson 13

Average Tenure: 20


Retired/Resigned Years with Firm

Retired

2015Robert B. Thompson Fixed Income Portfolio Manager 23 2Q

2014Kenneth E. Olivier Chairman Emeritus 35 4Q

2011Peter C. Lambert Fixed Income Portfolio Manager 23 4Q

Resigned

2015Michele L. Cobble Equity Trader 12 2Q

2014Gabriel Sod Hoffs Fixed Income Analyst 3 2Q

2011Jacob Gofman Global Industry Analyst 16 3Q

Hired

2015Kevin P. Glowalla Global Industry Analyst 3QSamir E. Amso Fixed Income Trader 3QDavid H. Strasburg Fixed Income Analyst 2Q

2014Jose F. Ursua Fixed Income Analyst 4QMimi Yang Global Bond Portfolio Associate 2Q

2013Salil A. Phadnis Global Industry Analyst 3QRameez Dossa Global Industry Analyst 3QMolly K. Myers(a) Portfolio Manager (PCG) 2QRobert S. Turley Portfolio Analyst 2QAllen C. Feldman(a) Fixed Income Analyst 1Q

2012Sophie Chen Global Industry Analyst 4QMasato Nakagawa Fixed Income Analyst/Trader 3Q

2011Hallie W. Marshall Portfolio Manager 3QGabriel Sod Hoffs Fixed Income Analyst 3QMatthew B. Schefer(a) Fixed Income Analyst 3Q

Employee Update – Investment Professionals January 1, 2011 – September 30, 2015

(a)Internally Promoted (b)Includes employees of wholly owned subsidiary Dodge & Cox Worldwide Investments Ltd. (UK).

Annual Total Employees(b)

2010 2011 2012 2013 2014206 216 220 228 237

E-358-101315-10611 | DODGE & COX Investment Managers | San Francisco 5

Investment Review


Portfolio Summary September 30, 2015

City of Fresno Employees & Fire & Police Retirement Systems (3793)

Market Value

9/30/15 % Estimated

Annual IncomeCurrent

Yield

Fixed Income Securities $240,511,691 97.3 % $10,619,114 4.4 %

Cash 4,713,033 1.9 2,357 0.1

Total Under Management $245,224,724 99.2 % $10,621,470 4.3 %

Accrued Income 2,021,101 0.8

Total $247,245,825 100.0 % $10,621,470 4.3 %


Account Summary * 1 Month 3 Months YTD 1 Year 3 Years 5 Years 10 YearsSince

12/31/02Fixed Income Securities 0.16 0.14 0.44 1.86 3.00 4.38 5.48 5.31Total Portfolio 0.15 0.12 0.42 1.83 2.96 4.30 5.41 5.23Total Portfolio (Net of Fees) 0.14 0.08 0.30 1.67 2.79 4.13 5.24 5.06Total Portfolio (Cumulative) 0.15 0.12 0.42 1.83 9.13 23.42 69.38 91.53Total Portfolio (Net of Fees) (Cumulative) 0.14 0.08 0.30 1.67 8.61 22.45 66.70 87.61 Comparative Indices Barclays U.S. Aggregate Bond Index 0.68 1.24 1.14 2.95 1.71 3.11 4.64 4.45Barclays U.S. Aggregate Bond Index (Cumulative) 0.68 1.24 1.14 2.95 5.23 16.52 57.43 74.13

Time Weighted Total Rates of Return September 30, 2015

City of Fresno Employees & Fire & Police Retirement Systems (3793)

NOTE: Performance returns do not reflect the deduction of investment management fees and are annualized for periods greater than one year, unless otherwise noted.

* 6/30 Fiscal Year.


Portfolio (gross of fees): Barclays U.S. Aggregate Bond Index: Difference:2.95% -1.12%1.83%

Performance Attribution One Year Ending September 30, 2015

Sources: Bloomberg LP, Barclays POINT.The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict futureresults or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject tochange without notice and may not represent an account’s entire holdings. Performance figures do not reflect the deduction of investment advisory fees and other expenses. Returns will be reduced byadvisory fees and other expenses incurred in the management of your account. For example, if an annual management fee of .60% were deducted quarterly from your account, a ten-year annualizedcumulative composite return of 10.00% would be reduced by .64% to 9.36%. Information on Dodge & Cox investment advisory fees can be found in its Form ADV Part 2A.

Treasury Yield Changes Relative Contributors

Barclays U.S. Aggregate Bond Index Sector Returns

Relative Detractors

The portfolio’s Agency MBS holdings outperformed the MBS inthe Barclays U.S. Agg after adjusting for duration differences.

The portfolio’s nominal yield advantage benefited returns.


E-na-070915-000000 |

Numerous emerging market-related and commodity-related credit holdings underperformed, including Rio Oil Finance Trust, Pemex, Petrobras, and Kinder Morgan. Additional underperforming issuers included AT&T, HSBC, and Macy’s.

The portfolio’s overweight to the Industrial sub-sector and underweight to U.S. Treasuries detracted from relative returns.

The portfolio’s shorter relative duration detracted from relative returns.

3.8%

1.5%

3.4%

2.4%

3.7%

1.7%

0.7%

2.6%

3.2%

0.8%

0.0%

2.0%

4.0%

U.S.Treasury

Govt-Related

U.S. MBS ABS CMBS Corporate Industrial Utility FinancialInstit.

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0.05 0.26 1.06 3.90 6.05 8.83Tota

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9/30/2014 9/30/2015


U.S. Corporate and MBS Bond Market Conditions September 30, 2015

(20)

-

20

40

60

80

100

120

140

160

180

200

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

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Dec-14

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OA

S(a

)

80

90

100

110

120

130

140

150

160

170

180

1.5%

2.0%

2.5%

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Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

OA

S(a

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s

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%

10 Year U.S. Treasury Yield (LHS)Barclays U.S. Corporate Index OAS (RHS)

(a)

(a)OAS (option-adjusted spread) is the option-adjusted yield differential between stated index and comparable U.S. Treasuries. OAS does not translate into a return.Source: Barclays, Bloomberg. The above information is not a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources consideredreliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. Before investing in any Dodge &Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and otherimportant information, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

E-705-101315-111511 |

Barclays U.S. MBS IndexCorporate OAS(a) Over Time

Barclays U.S. Financial Institutions and Industrials indicesU.S. Treasury Yield vs. Corporate OAS(a)

- 100 200 300 400 500 600 700 800 900

1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

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Dec-09

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Dec-13

Dec-14

Dec-15

Corp AAA Corp A BA/B

OA

S(a)

0

100

200

300

400

500

600

700

800

900

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

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Dec-10

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Dec-12

Dec-13

Dec-14

Dec-15

OA

S(a

)

Financial Institutions Industrials


E-692-093015-12511 |

Fixed Income Philosophy

Research Intensive

Independent Research Staff

Emphasize individual security and market sector selection

Incremental Yield

Seek to build portfolios with higher yields than the overall bond market(a)

Compounding of interest is an important source of total return

Long-Term Investment Horizon

Three-to-five year outlook

Fully invested portfolio

Analyze Portfolio Risk

Diversify portfolio by various investment themes

Maintain high-average-quality portfolio (typically AA- or higher)

Philosophy

Using fundamental research, we construct and manage a high-average-quality, diversified portfolio

with the goal of producing above-market returns over a three-to-five year time period.

(a)Total return (which includes both yield and change in principal value) will fluctuate with market conditions.

The above is not a complete analysis of every material fact concerning any market, industry or investment. Opinions expressed are subject to change without notice. Before investing in any Dodge &Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and otherimportant information, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.


Portfolio Structure September 30, 2015


Weighted-Average Summary Characteristics

Sector Composition Quality Composition

(a)The portfolio’s mortgage-related holdings may include Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency CMBS. (b)Yield and principal value fluctuatewith market conditions. (c)In calculating a portfolio's weighted average quality, Dodge & Cox translates each security's rating from an alpha value to a numerical value (if a security is unrated, Dodge &Cox assigns a rating in accordance with our internal policy), calculates a weighted average numerical rating, and then translates the resulting number back into an alpha value based on the same scale. Allcash and portfolio holdings are included in this calculation. Both Dodge & Cox and the Barclays Index apply a methodology using a linear numerical scoring system. Other methodologies could produce alower weighted-average quality. The portfolio's weighted average quality is not a rating of the portfolio by an independent rating agency and should not be considered an assessment of the stability or safetyof the portfolio.Source: The YieldBook, Inc., Bloomberg LP, Interactive Data’s BondEdge, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry,or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed aresubject to change without notice.

E-649-120814-11308 |

0

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50

U.S.Treasury

Government-Related

Mortgage-Related

Corporate ABS &CMBS

Cash

% A

lloca

tion

City of Fresno Employees & Fire &Police Retirement Systems

Barclays U.S. Aggregate Bond Index

(a)

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45

50

U.S.Treasury

U.S. Agency/GSE

AAA AA A BAA ≤BA Cash

% A

lloca

tion

City of Fresno Employees & Fire &Police Retirement Systems


City of Fresno Employees & Barclays U.S.

Fire & Police Retirement Systems Aggregate Bond Index

Yield-to-Worst(b)3.05% 2.31%

Quality(c) A+ AA

Effective Duration 4.7 Years 5.6 Years


Changes in the PortfolioCity of Fresno Employees & Fire & Police Retirement Systems

E-9718-010313-011011 |

(a)The portfolio’s mortgage-related holdings may include Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency CMBS.Source: The YieldBook, Inc., Bloomberg LP, and Interactive Data’s BondEdge, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market,industry, or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressedare 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 futuretrading activity.


September 30, 2015

0

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U.S. Treasury Government-Related

Mortgage-Related

Industrial FinancialInstitutions

Utility ABS&CMBS Cash

% A

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tion

City of Fresno Employees & Fire & Police Retirement Systemsas of September 30, 2013



(a)

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Barclays U.S. Aggregate Bond Index as of September 30, 2013




Portfolio Composition by Theme September 30, 2015

(a)Except as noted, investments grouped by parent company. Actual securities may be issued by the listed parent company or one of its subsidiaries. (b)Subsidiary.The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict future resultsor profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject to changewithout notice and may not represent an account’s entire holdings.


E-656-032315-110308 |

6.4% ■ Generally maintain a Allergan PLC HSBC Holdings PLC ■ Seek stable-to-improving lower-than-market weighting Anthem, Inc. Imperial Tobacco Group PLC corporate credits to build

■ Used to control portfolio duration AT&T, Inc. JPMorgan Chase & Co. portfolio yield and enhance and yield curve exposure Bank of America Corp. Kinder Morgan, Inc. relative total return potential

■ Currently maintain lower-than- Barclays PLC LafargeHolcim, Ltd. ■ Emphasize non-callable

market duration Becton, Dickinson and Co. Lloyds Banking Group PLC and call-protected ■ Increase portfolio yield through BNP Paribas SA Macy's, Inc. securities for durability

holding off-the-run issues Burlington Northern Santa Fe LLC(b) Naspers, Ltd. of cash flows and to

Capital One Financial Corp. Navient Corp. preserve appreciation Charter Communications, Inc. Nordstrom, Inc. potential

17.7% ■ Predominantly GSE-guaranteed Cigna Corp. Norfolk Southern Corp. 5.7% ■ Yield advantage and total-return Citigroup, Inc. Pitney Bowes, Inc. 0.4% potential vs. similar duration Comcast Corp. RELX PLC 8.0% alternatives Cox Enterprises, Inc. Royal Bank of Scotland Group PLC

■ Emphasize stable average-life CRH PLC Sprint Corp. investments to provide defensive CSX Corp. Teck Resources, Ltd. feature Dillard's, Inc. Telecom Italia SPA Dominion Resources, Inc. Time Warner Cable, Inc.

Dow Chemical Co. Time Warner, Inc. 0.4% ■ U.S. Agencies add incremental Eaton Corp. PLC TransCanada Corp.

yield with little added credit risk Enel SPA Twenty-First Century Fox, Inc. FedEx Corp. Union Pacific Corp.

1.4% ■ Non-U.S. entities provide Ford Motor Credit Co. LLC(b) Verizon Communications, Inc. diversification and attractive General Electric Co. Vulcan Materials Co. risk/reward HCA Holdings, Inc. Wells Fargo & Co. Health Net, Inc. Whirlpool Corp.

Hewlett-Packard Co. Xerox Corp. 4.9% ■ Taxable munis provide

diversification and compelling risk/reward American Express Master Trust ■ Seek well-structured

Chase Issuance Trust securities with

Ford Credit Auto Owner Trust attractive risk/reward

Rio Oil Finance Trust SLM Student Loan Trust (Private Loans)

State of Illinois GO

Cash 1.9%

L.A. Unified School District GO New Jersey Turnpike Authority RB State of California GO

Petroleo Brasileiro SA Petroleos Mexicanos Spain Government International

Asset-Backed Securities 6.4%

Agency Multifamily "Hybrid" ARMs

Government-Related Securities 6.7% Small Business Admin. - 504 Program

Corp. Nacional del Cobre de Chile

U.S. Treasury Securities 6.4% Corporate Securities 46.7%(a)

Various U.S. Treasury Notes

Mortgage-Related Securities 31.8% Seasoned Pass-Throughs Collateralized Mortgage Obligations


Portfolio Credit Holdings by Sector(a)

City of Fresno Employees & Fire & Police Retirement SystemsBarclays U.S. Aggregate Bond Index (Benchmark)

September 30, 2015

(a)Except as noted, investments grouped by parent company. Actual securities may be issued by the listed parent company or one of its subsidiaries. (b)Subsidiary.The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict future resultsor profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject to changewithout notice and may not represent an account’s entire holdings.

E-12746-102814-121212 |

Corporate: Corporate: Corporate:Financial Institutions Industrial Utility Non-Corporate Credit

Banking 10.1 Basic Industry 1.5 Technology 3.3 Electric 1.3 Sovereign 0.25.4 1.1 1.5 1.7 1.4

Bank of America Corp. Dow Chemical Co. Hewlett-Packard Co. Dominion Resources, Inc. Spain Government International Barclays PLC Teck Resources, Ltd. Pitney Bowes, Inc. Enel SPA BNP Paribas SA Xerox Corp. Supranational 0.0

Capital One Financial Corp. Capital Goods 2.0 Natural Gas 0.0 1.6

Citigroup, Inc. 1.1 Transportation 2.9 0.1

HSBC Holdings PLC CRH PLC 0.5 Foreign Agency 1.2

JPMorgan Chase & Co. Eaton Corp. PLC Burlington Northern Santa Fe LLC(b) 1.5

Lloyds Banking Group PLC LafargeHolcim, Ltd. CSX Corp. Other Utility 0.0 Corp. Nacional del Cobre de Chile Royal Bank of Scotland Group PLC Vulcan Materials Co. FedEx Corp. 0.0 Petroleo Brasileiro SA Wells Fargo & Co. Norfolk Southern Corp. Petroleos Mexicanos

Consumer Cyclical 3.4 Union Pacific Corp.Brokerage 0.0 1.7 Local Government 4.9

0.2 Dillard's, Inc. Communications 13.3 1.2

Ford Motor Credit Co. LLC(b) 2.4 L.A. Unified School District GO Macy's, Inc. AT&T, Inc. New Jersey Turnpike Authority RB

Finance Companies 1.8 Nordstrom, Inc. Charter Communications, Inc. State of California GO0.5 Comcast Corp. State of Illinois GO

General Electric Co. Consumer Non-Cyclical 3.4 Cox Enterprises, Inc. Navient Corp. 3.5 Naspers, Ltd.

Allergan PLC RELX PLCInsurance 1.8 Becton, Dickinson and Co. Sprint Corp.

1.1 HCA Holdings, Inc. Telecom Italia SPA Anthem, Inc. Imperial Tobacco Group PLC Time Warner Cable, Inc. Cigna Corp. Whirlpool Corp. Time Warner, Inc. Health Net, Inc. Twenty-First Century Fox, Inc.

Energy 1.9 Verizon Communications, Inc.REITS 0.0 2.5

0.6 Kinder Morgan, Inc. Other Industrial 0.0

TransCanada Corp. 0.1

Other Financial 0.0

0.0

Portfolio Total 13.6 31.7 1.3 6.4 53.0Benchmark Total 7.8 14.4 1.8 5.7 29.7


E-15089-101415-030515 |

1.5%2.1%

0.8%

2.3%0.4%

1.4%0.2%

0.5%

0%

2%

4%

6%

8%

Dodge & CoxIncome Fund

Barclays U.S. AggregateBond Index

Inco

me

Fund

Wei

ght (

%)

Metals andMining

Asset-Backed

State-ControlledEnergy/ CmdtyCompanies

Midstream

Integrated, E&P,Refining, and OilField Services

Total: 6.0%

Total: 3.3%

0.0

1.0

2.0

3.0

4.0

5.0

$0

$30

$60

$90

$120

$150

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Cop

per P

rice

Per P

ound

Bren

t Cru

de O

il Pr

ice

Per B

arre

l

Brent Crude Oil Price Per Barrel (LHS)Copper Price Per Pound (RHS)

Asset-Backed: We seek structured securities with strong covenants that provide downside protection.Rio Oil: Strong covenants and solid free cash flow generation, but rating is tied to Petrobras production and oil prices, leading to a bond covenant violation in September.

State-Controlled Companies: We seek strong asset coverage and high likelihood of sovereign support. Currently out of favor due to low prices and EM fears.Codelco: 100%-owned by Chile govt. World’s largest copper producer with long reserve life. High capex and rising costs may pressure financials going forward.PEMEX: 100%-owned by Mexico govt. Large, low-cost resource base, but high fiscal burden, declining production, and large unfunded pension.Petrobras: Majority-owned by Brazil govt. Strong resource base and growth prospects, but facing large funding needs, FX mismatch, and corruption scandal.

Midstream: We seek stable cash flows backed by long-term take-or-pay contracts. Currently out of favor due to high leverage and declining growth expectations.TransCanada: Strong commitment to A rating, but large capex plan and 25% of EBITDA from power generation is a risk. We own subordinated securities.Kinder Morgan: Largest natural gas pipeline operator in the U.S., with relatively low direct oil exposure (~15%). Very high leverage and ongoing funding needs.

Metals and Mining: We seek diversified miners with the balance sheet strength to ride out commodity volatility. Currently out of favor due to weak metals prices.Teck Resources: Exposed primarily to met coal and copper, with a robust liquidity position. Currently burning cash and may need to subordinate bondholders.

Current Energy and Commodity Positioning Oil and Copper Price History

September 30, 2015

Dodge & Cox Income Fund

Source: Bloomberg, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sourcesconsidered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information providedis historical and does not predict future results or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. Thesecurities identified are subject to change without notice and may not represent an account’s entire holdings. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’sinvestment objectives, risks, and management fees and other expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit dodgeandcox.comor call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

Energy and Commodity Exposure

We have made select energy and mining investments where we believe the individual issuers have attractive risk/reward and can withstand weak commodity prices for an extended period of time.


Developed Market Issuers OAS(a)Country of

HQ

% Non-U.S.

Revenue(b) Fund Weight

Telecom Italia SPA 353 Italy 100% 1.68%

Enel SPA 254 Italy 100% 0.80%

Lloyds Banking Group PLC 247 UK 100% 0.50%

Kingdom of Spain 79 Spain 100% 0.18%

Imperial Tobacco Group PLC 204 UK 96% 1.18%

Royal Bank of Scotland PLC 317 UK 93% 1.36%

LafargeHolcim, Ltd. 203 Switzerland 92% 0.30%

BNP Paribas SA 246 France 90% 1.01%

HSBC Holdings PLC 253 UK 87% 1.32%

Teck Resources, Ltd. 924 Canada 86% 0.19%

Barclays PLC 291 UK 78% 0.61%TransCanada Corp. 429 Canada 54% 0.52%Reed Elsevier PLC 166 UK 50% 0.40%Eaton Corp. PLC 128 Ireland 48% 0.19%CRH PLC 186 Ireland 47% 0.42%Allergan PLC 117 Ireland 20% 0.87%

11.53%

0%2%4%6%8%

10%12%14%16%18%20%

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

% o

f Tot

al

Dodge & Cox Income Fund


Emerging Market Issuers OAS(a)Country of

HQ

% Non-U.S.


Rio Oil Finance Trust(c) 1512 Brazil 100% 1.36%

Petroleo Brasileiro SA 1076 Brazil 100% 0.58%

Naspers, Ltd. 346 South Africa 100% 1.12%

Export-Import Bank of Korea 108 South Korea 100% 0.05%Corp. Nacional del Cobre de Chile 302 Chile 84% 0.26%Cemex SAB de CV 563 Mexico 77% 1.36%Petroleos Mexicanos 427 Mexico 70% 1.45%

6.17%

Issuer OAS(a)% Non-U.S.


Dow Chemical Co. 243 67% 1.19%

Hewlett-Packard Co. 202 65% 1.02%

The Kraft Heinz Co. 165 61% 0.08%

Becton, Dickinson and Co. 154 60% 0.11%

Citigroup, Inc. -683 58% 1.46%

General Electric Co. 84 52% 1.03%

Boston Scientific Corp. 178 47% 0.04%

Twenty-First Century Fox, Inc. 274 44% 0.57%5.50%

September 30, 2015Non-U.S. Exposure in a U.S. Dollar PortfolioDodge & Cox Income Fund

In recent years, Dodge & Cox has increasingly invested in U.S. dollar-denominated debt in global corporations, quasi-sovereigns, and sovereigns in our core fixed income portfolios. Our global research capabilities, increased market opportunities, and attractive valuations have all contributed to this trend.

(a)OAS (option-adjusted spread) is the option-adjusted yield differential between stated index and comparable U.S. Treasuries. OAS does not translate into a return. (b)Revenues based on year end filings. (c)Asset-backed security.Source: Bloomberg LP, FactSet, Barclays POINT. All holdings are U.S. dollar denominated. (d)Issuers shown are U.S. domiciled and derive over 40% of revenue from outside of the U.S.The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to thecompleteness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict future results or profitability. This is not a recommendation to buy,sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject to change without notice and may not represent an account’s entire holdings. Before investing inany Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information,visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

E-13746-101515-011013 |

Many U.S. domiciled credit holdings have significant non-U.S. sales(d)

Non-U.S. domiciled credit holdings are geographically diversifiedNon-U.S. credit holdings in Income Fund vs. Barclays U.S. Aggregate Bond Index


2%

4%

6%

8%

10%

12%

14%

16%

18%

1993 1998 2003 2008 2013

U6 unemployment rate (total plus persons marginallyattached or part time for economic reasons)Total unemployment rate

Av. 1994-2007

Av. 1994-2007

Gap

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1.5

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Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14

$ Tr

illio

ns

Federal Funds Target Rate (%, LHS)Federal Reserve Banks Total Assets ($tn, RHS)

-9%

-6%

-3%

0%

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6%

1Q06

3Q06

1Q07

3Q07

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3Q16

Potentialgrowth estimate

Survey-basedforecasts(a)

-2%

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0%

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3%

4%

5%

Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15

PCE Headline (yoy)PCE Core (yoy)Wage Growth Proxy (yoy)

Fed InflationTarget (2%)

E-694-100815-070913 |

Economic Environment September 30, 2015

The U.S. economy shows narrowing slack and solid growth, in a context of subdued inflation and still largely accommodative monetary policy.

(a)Bloomberg survey (median). (b)Simple average of Average Hourly Earnings and the Employment Cost Index.Source: U.S. Federal Reserve, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, Bloomberg. The above information is not a complete analysis of every material fact concerning anymarket, industry, or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinionsexpressed are subject to change without notice. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain aFund’s prospectus and summary prospectus, which contain this and other important information, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectuscarefully before investing.

Inflation Still Below Target, Wage Growth Slightly Accelerating Still Largely Accommodative Monetary Policy

Narrowing Labor Market Slack GDP Growth Expected to Remain Above Potential


Supplemental Exhibits


Thoughts on RiskKey Investment Risks How We Seek to Mitigate Risk in Fixed Income Portfolios

Permanent LossThe possibility that you lose money

Loss of Future Purchasing PowerThe possibility that inflation erodespurchasing power over time

Volatility and Relative Underperformance The possibility that the market assigns a higher or lower value to assets at any given time

In-depth Knowledge of Each Investment An important first step is knowing what is in the portfolio, including an in-depth analysis

of the risks and the opportunities at the issuer and security levels Ongoing monitoring by industry analyst, credit analysts, traders, and portfolio managersExperience and Perspective The stability of our team results in significant intellectual capital/institutional knowledge

about bond markets and fixed income securities; team decision-making provides perspective and experience as we evaluate investments

Valuation Discipline Total return potential is highly dependent on initial purchase pricePortfolio Diversification We select securities that are diversified by sector and various investment themes

Defensive Duration Positioning A shorter duration mitigates the risk of relative price declines when rates riseYield Advantage(a)

The reinvestment and compounding of incremental yield can offset price declines over longer time periods

Fully Invested Cash generally does not generate positive real returns, and timing the market can be

hazardous to long-term returnsLow Fees and Low Turnover Reduces the costs of ownership

Long-term Investment Horizon Volatility dampens significantly as holding period lengthensIncremental Buy and Sell Opportunities Short-term price movements provide an opportunity for long-term investors to make

interim adjustments to portfolio holdingsPersistence and Patience The fortitude to stay the course through past periods of underperformance and volatility

enabled us to build many positions that delivered strong subsequent returns(a) Total return (which includes both yield and change in principal value) will fluctuate with market conditions. The above information is not a complete analysis of every material fact concerning anymarket, industry, or investment. Opinions expressed are subject to change without notice. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives,risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit www.dodgeandcox.com or call 800-621-3979. Pleaseread the prospectus and summary prospectus carefully before investing.

September 30, 2015


-

100

200

300

400

500

600

OA

S, b

ps

Barclays U.S. Corporate Index OAS

Barclays U.S. MBS Index OAS

(a)

0

10

20

30

40

50

60

Por

tfolio

Wei

ght,

%

Treasuries + Cash % GSE-MBS %ABS % Corporates %Govt-Related %

(b)

Sector Weightings Over TimeFixed Income Tax-Exempt Composite – Supplemental Exhibit

September 30, 2015

E-997-101615-120811 |

(a)OAS (option-adjusted spread) is the option-adjusted yield differential between stated index and comparable U.S. Treasuries. OAS does not translate into a return. (b) 2010 and later data as presentedincludes the effect of a short position in 10-year Treasury futures contracts.Sources: Barclays, AS400 portfolio system. This exhibit supplements and must be accompanied or preceded by Dodge & Cox's Fixed Income Tax-Exempt Composite. The above information is not acomplete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to thecompleteness or accuracy of such information. Opinions expressed are subject to change without notice.


(a)The portfolio’s mortgage-related holdings may include Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency CMBS. (b)Contribution to Duration =Portfolio weightings (%) x Duration (Years).Source: The YieldBook, Inc., Bloomberg LP, Interactive Data’s BondEdge, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry,or investment. Opinions expressed are subject to change without notice.

Contribution to Duration (by Sector)City of Fresno Employees & Fire & Police Retirement Systems

September 30, 2015

E-659-120814-081508 |

Weight (%) 1.92 0.00 6.43 36.49 6.73 8.62 31.83 28.42 46.66 24.01 6.42 2.46 100.00 100.00Duration (Years) 0.00 0.00 3.47 5.83 8.24 5.34 2.35 4.20 6.56 7.13 1.83 4.26 4.71 5.60

Contribution 0.00 0.00 0.22 2.13 0.55 0.46 0.75 1.19 3.06 1.71 0.12 0.10 4.71 5.60to Duration(b)

0%5%

12% 16%

65%

2%

100%

0%

38%

8%

21%31%

2%

100%

-

1

2

3

4

5

6

Cash U.S. Treasury Government-Related

Mortgage-Related

Corporate ABS/CMBS Total

Con

tribu

tion

to D

urat

ion,

Yea

rs



(a)


Relative Effective Duration vs. 30- Year U.S. Treasury Yield

Fixed Income Tax-Exempt Composite – Supplemental Exhibit

Effective Duration – Quarterly Data December 1987 – September 2015

Source: Barclays POINT and Bloomberg LP. This exhibit supplements and must be accompanied or preceded by Dodge & Cox's Fixed Income Tax-Exempt Composite. The above information is not acomplete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to thecompleteness or accuracy of such information. Opinions expressed are subject to change without notice.

Duration Positioning

E-720-101615-12709 |

September 30, 2015

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Dec-87

Dec-88

Dec-89

Dec-90

Dec-91

Dec-92

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

Effe

ctiv

e D

urat

ion,

Yea

rs

Fixed Income Tax-Exempt Composite Barclays U.S. Aggregate Bond Index

-40%-30%-20%-10%+0%+10%+20%+30%+40%+50%

2%3%4%5%6%7%8%9%

10%

Dec-87

Dec-88

Dec-89

Dec-90

Dec-91

Dec-92

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

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Dec-04

Dec-05

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Dec-12

Dec-13

Dec-14

Dur

atio

n, %

Trea

sury

Yie

ld, %

Relative Duration (RHS)

U.S. Treasury 30-Year Yield (LHS)


(a)The portfolio’s mortgage-related holdings may include Agency multifamily mortgage securities; the Index classifies these securities under CMBS – Agency CMBS. (b)Contribution to Duration =Portfolio weightings (%) x Duration (Years).Source: The YieldBook, Inc., Bloomberg LP, Interactive Data’s BondEdge, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry,or investment. Opinions expressed are subject to change without notice.

Contribution to Duration (by Sector)City of Fresno Employees & Fire & Police Retirement Systems

September 30, 2015

E-659-120814-081508 |

Weight (%) 1.92 0.00 6.43 36.49 6.73 8.62 31.83 28.42 46.66 24.01 6.42 2.46 100.00 100.00Duration (Years) 0.00 0.00 3.47 5.83 8.24 5.34 2.35 4.20 6.56 7.13 1.83 4.26 4.71 5.60

Contribution 0.00 0.00 0.22 2.13 0.55 0.46 0.75 1.19 3.06 1.71 0.12 0.10 4.71 5.60to Duration(b)

0%5%

12% 16%

65%

2%

100%

0%

38%

8%

21%31%

2%

100%

-

1

2

3

4

5

6

Cash U.S. Treasury Government-Related

Mortgage-Related

Corporate ABS/CMBS Total

Con

tribu

tion

to D

urat

ion,

Yea

rs



(a)


Yield Advantage

(a)Yield and Principal value fluctuate with market conditionsSource: Interactive Data’s BondEdge, Barclays POINT and Bloomberg LP. This exhibit supplements and must be accompanied or preceded by Dodge & Cox's Fixed Income Tax-Exempt Composite.The above information is not a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice.

Relative YTW

Yield-to-Worst (YTW) – Quarterly Data March 1989 – September 2015

September 30, 2015


E-11161-101615-01412 |

1.0

2.0

3.0

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6.0

7.0

8.0

9.0

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Dec-89

Dec-90

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Dec-92

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

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Dec-07

Dec-08

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

YTW

, %(a

)

Fixed Income Tax-Exempt Composite YTW

Barclays U.S. Aggregate Bond Index YTW

-100-50

050

100150200250

Dec-89

Dec-90

Dec-91

Dec-92

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

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Rel

ativ

e YT

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ps Relative YTW


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Effe

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e D

urat

ion,

Yea

rs

Dodge & Cox Income Fund MBS PortfolioBarclays U.S. MBS Index

Objective:We conduct ongoing, fundamental research on all types of mortgage-related securities, seeking securities whose total returns may outpace those of similar-duration, alternative investments without sacrificing the duration stability of the portfolio.

Fundamental Research Process What are the unique characteristics of the underlying mortgage borrowers and loans? How will these characteristics influence prepayment behavior? Relative value: does market pricing fully incorporate the benefits/drawbacks of those characteristics?

Focus on Security Selection Emphasize lesser-known programs and sectors within the Agency mortgage-backed security market, e.g., seasoned 15-year pass-throughs,

Hybrid ARMs, “Re-performing” FHA/VA loans and Fannie Mae DUS and Dept. of Veterans Affairs CMOs. Accept marginal reduction in liquidity for better cash flow characteristics and more attractive long-term total return potential.

Portfolio Benefits Incremental portfolio yield, without sacrificing credit quality. Greater portfolio duration stability than Index = reduced whipsaw risk. Stable cash flow MBS add a nice defensive feature to portfolios.

Source: Interactive Data’s BondEdge, Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtainedfrom sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. Theinformation provided is historical and does not predict future results or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current orfuture trading activity. The securities identified are subject to change without notice and may not represent an account’s entire holdings. Before investing in any Dodge & Cox Fund, you should carefullyconsider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visitwww.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

Effective Duration Over Time: Dodge & Cox Income Fund MBS Portfolio vs. Barclays U.S. MBS Index

Approach to MBS InvestingDodge & Cox Income Fund

E-15293-101415-100515 |

September 30, 2015


Ten Largest Credit Holdings(a)

(a)Weighted average statistics. (b)Except as noted, Corporate investments grouped by parent company. Actual securities maybe issued by the listed parent company or one of its subsidiaries. (c)Yield andprincipal value fluctuate with market conditions.Source: The YieldBook, Inc., Bloomberg LP, Interactive Data’s BondEdge. The above information is not a complete analysis of every material fact concerning any market, industry or investment.Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to changewithout notice. The information provided is historical and does not predict future results or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge &Cox’s current or future trading activity. The securities identified are subject to change without notice and may not represent an account’s entire holdings.

September 30, 2015


E-1006-100615-050710 |

Yield-to-

Issuer(b) Worst (%)(c) Moody's S&P Fitch

Verizon Communications, Inc. 2.24 13.3 5.08 Baa1 BBB+ A-

State of California GO 2.22 12.0 4.38 Aa3 AA- A+

Bank of America Corp. 1.93 10.7 4.97 Ba1 BBB- BBB

Cox Enterprises, Inc. 1.89 4.9 3.63 Baa2 BBB BBB+

Time Warner Cable, Inc. 1.65 4.4 3.79 Baa2 BBB BBB

Telecom Italia SPA 1.65 5.6 4.86 Ba1 BB+ BBB-

State of Illinois GO 1.50 1.9 2.64 A3 A- A-

Citigroup, Inc. 1.48 0.1 2.02 Baa3 BBB- BBB

Macy's, Inc. 1.47 9.7 4.85 Baa2 BBB+ BBB+

Kinder Morgan, Inc. 1.42 9.9 6.35 Baa3 BBB- BBB-

Portfolio Weight of Ten Largest Credit Holdings 17.45

Portfolio Duration

% of Ratings


0%

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erio

ds

3-Year Annualized Excess Return

% of 3-Year Periods (1990 - present)

% of 3-Year Periods with a starting OAS of at least 150bps

IG Corporate Bonds UnderperformedDuration-Matched Treasuries

IG Corporate Bonds

Outperformed Duration-Matched

Treasuries

0%

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Dodge & Cox Income Fund Corporate Sector Weighting (LHS)

U.S. Corporate Investment Grade Index OAS as % of Yield (RHS)

Corporate Bond Excess Returns

(a)OAS = Option Adjusted Spread. Excess return = Total return of IG Corporate Bonds minus the total return of a duration-neutral portfolio of Treasury securities. Returns computed monthly.Source: Barclays. The above information is not a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, butDodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. Before investing in any Dodge & Cox Fund, youshould carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information,visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

Historically, corporate bonds have generally provided higher excess returns versus Treasuries when purchased at wider spread levels.

Since 1990, the Barclays U.S. Corporate Investment Grade Index (IG Corporate Bonds) has produced positive excess returns in ~66% of rolling three-year periods.(a)

When starting with an OAS of at least 150 bps, IG Corporate Bonds have generated positive excess returns in every rolling three-year period from 1990 – present.

As of September 30, 2015, the Barclays U.S. Corporate Bond Index had an OAS of 169 bps.

Historically, we have adjusted our exposure to corporate bonds based on our bottom-up credit analysis and relative value compared to fundamentals over our three- to five-year investment horizon.

September 30, 2015

E-11120-101315-112811 |

IG Corporate Bond Excess Returns over Rolling 3-Year Periods Corporate Weighting (LHS) vs. Relative Valuation (RHS)


Below Investment Grade Philosophy: Focus on Fallen Angels

When making investment decisions, we perform our own independent analysis of each issuer’s creditworthiness rather than rely on the credit rating agencies. Within the below investment grade sector, most of our holdings are “Fallen Angels” (i.e. issuers that were previously rated investment grade) rather than original-issue high yield issuers.

Many Fallen Angels offer attractive characteristics that have contributed to their historical outperformance vs. original-issue high yield bonds over longer time periods:

Credit ratings are often lagging indicators. Spreads generally underperform ahead of the downgrade then outperform afterwards.

Fallen Angels have outperformed original-issue high yield bonds in more than 96% of rolling 3-year periods over the last 20 years.

Larger, scale businesses Strategically motivated to return to investment grade

Simpler capital structure / greater financing flexibility Non-callable, longer maturity securities

The chart on the left is based on the median spread difference for Fallen Angels from January 1994 – September 2015. The chart on the right was created by partitioning all the securities comprising theBarclays U.S. HY Index at the beginning of a month into two groups: bonds rated investment grade at issuance and bonds rated below investment grade at issuance. Each group’s constituents are heldconstant during the month and the performance is calculated at month-end. The monthly returns are linked together to calculate rolling three-year annualized total returns.Source: Barclays. The above information is not a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, butDodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. Before investing in any Dodge & Cox Fund,you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other importantinformation, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

E-12790-101415-01213 |

September 30, 2015

0

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-12mo -6mo -3mo -1mo 0 +1mo +3mo +6mo +12mo

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eren

tial (

bps)

Months Before/After Becoming A Fallen Angel

Fallen Angel OAS minus BBB Corporate OAS

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Dec

-95

Dec

-97

Dec

-99

Dec

-01

Dec

-03

Dec

-05

Dec

-07

Dec

-09

Dec

-11

Dec

-13

Rolling 3-Year Annualized Total Return of Fallen Angel Bonds

Rolling 3-Year Annualized Total Return of Original-Issue High Yield Bonds


Below Investment Grade Holdings(a)September 30, 2015

(a)Weighted average statistics. (b)Except as noted, investments grouped by parent company. Actual securities may be issued by the listed parent company or one of its subsidiaries. (c)Yield and principalvalue fluctuate with market conditions.Source: The YieldBook, Inc., Bloomberg LP, Interactive Data’s BondEdge. The above information is not a complete analysis of every material fact concerning any market, industry or investment. Datahas been obtained from sources considered reliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change withoutnotice. The information provided is historical and does not predict future results or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’scurrent or future trading activity. The securities identified are subject to change without notice and may not represent an account’s entire holdings.


E-653-061213-042010 |

Issuer(b) Moody's S&P Fitch

Rio Oil Finance Trust NR BB BB+ 3.7

Teck Resources, Ltd. Ba1 BB BBB- 4.9

Petroleo Brasileiro SA Ba2 BB BBB- 5.4

Sprint Corp. Caa1 B+ B+ 1.1

Naspers, Ltd. Baa3 BBB- BB+ 7.5

Navient Corp. Ba3 BB BB 1.5

Charter Communications, Inc. Ba1 BBB- BBB- 10.2

Bank of America capital securities Ba1 BB+ BBB- 11.9

Royal Bank of Scotland Group sub notes Ba2 BB BBB 6.1

Telecom Italia SPA Ba1 BB+ BBB- 5.6

Barclays sub notes Baa3 BB+ A- 7.4

Vulcan Materials Co. Ba2 BB+ BB+ 4.7

Health Net, Inc. Ba2 BB BB 1.6

HCA Holdings, Inc. B1 B+ BB 0.4

Citigroup capital securities Ba1 BB+ BBB- 0.1

5.1

4.2110.3411.89

Highest (Moody's/S&P/Fitch)Middle (Moody's/S&P/Fitch) Lowest (Moody's/S&P/Fitch)

0.93 2.48

Total Weighted Average 5.89

Total Portfolio Weightings (%)

0.69 4.58

0.30 3.78

0.97 3.41

1.23 4.89

1.65 4.86

0.47 4.81

1.00 5.74

0.45 5.63

1.60 5.33

0.57 11.70

0.70 7.30

0.63 5.76

Portfolio Duration Worst (%)(c)

0.56 16.96

0.16 13.32

Ratings % of Yield-to-


0%

1%

2%

3%

4%

5%

6%

7%

80

130

180

230

280

330

380

430

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Portf

olio

Wei

ght,

%

OAS

(b) ,

bps

Income Fund Energy and Commodities weight (%, RHS) Barclays US Corporate Index OAS Barclays US Energy Index OAS Barclays US Metals Index OAS

-16%-14%-12%-10%

-8%-6%-4%-2%0%

Oil FieldServices

Metals andMining

Midstream IndependentEnergy

Cable Satellite Refining GovernmentOwned, NoGuarantee

Sovereign MediaEntertainment

Chemicals

Ret

urn,

%

Last Twelve Months Excess Return 3Q15 Excess Return

Energy and Commodity Exposure: Recent PerformanceDodge & Cox Income FundExcess Returns(a) for the Ten Worst Performing Barclays Subsectors

Energy and Commodities Index OAS(b) and Income Fund Weight

September 30, 2015

(a)Relative to comparable duration U.S. Treasuries. (b)OAS (option-adjusted spread) is the option-adjusted yield differential between stated index and comparable U.S. Treasuries. OAS does nottranslate into a return.Source: Barclays POINT. The above information is not a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources consideredreliable, but Dodge & Cox makes no representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. Before investing in any Dodge &Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and otherimportant information, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.


E-12786-100615-071013 |

The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict futureresults or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject tochange without notice and may not represent an account’s entire holdings. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and chargesand expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit www.dodgeandcox.com or call 800-621-3979. Please read theprospectus and summary prospectus carefully before investing.

8

9

10

11

12

13

14

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014B

illion

s of

bar

rels

(oil

equi

vale

nt)

Investment ThesisAttractive Upstream Leading producer of oil and gas, accounting for ~90% of Brazil’s oil production. Sizeable reserve base, above-average growth outlook, and good Business position on the cost curve (cash production costs below current level) typically lead to strong cash flow generation and provides downside protection.

Government Support By law, the federal government is required to own a majority of the company’s voting stock. The government, via its public-sector banks, is also the company’s largest creditor (20-25% of debt). If necessary, we believe the government has the willingness and ability to support the company.

Resolving Corruption-Related Resolving the corruption scandal is a priority for management and the federal government. In April, the company published its much-awaited audited 2014 Issues is a Priority financial statements, which included a $2.5B write-off for overpayments related to corruption and ~$17B of asset impairments (primarily refineries).

Degrees of Freedom In the company’s recently released 2015-2019 business plan, it is targeting $130B of capital expenditures (vs. $220B previously) and planning for ~$58B of savings from asset sales & restructuring (vs. $14B previously). Equity issuance remains a possibility, but is not expected in the near-term.

RisksCorruption Scandal The full extent of the corruption scandal is still unknown. Corruption allegations could slow the pace of asset sales or even lead to a political crisis.

Stretched Financial Profile After multiple years of elevated capital spending, net debt/EBITDA ended 2014 at over 4x. The company’s new business plan calls for reducing leverage to with Execution Risk below 3x by 2018 and below 2.5x by 2020. To achieve this, the company must succeed in growing oil production and selling assets, among other things.

Commodity Price While the downstream businesses provide a hedge against lower oil prices, low oil prices are a credit negative over the long-term. Petrobras is engaged in an and Operational Risks operationally and technologically complex business. Cost overruns, project delays, oil spills, or other operational risks may weaken the company’s profile.

Government Interference Although the government is an important source of financing for the company, the government may prioritize social or other goals to the detriment of Petrobras. Prior to the recent decline in oil prices, price controls on gasoline and diesel had significantly reduced the profitability of the downstream segment. Local content rules may slow development plans and/or increase costs.

Petrobras is an integrated oil company that is majority-owned by the Brazilian government and plays an important strategic role in developing Brazil’s oil and gas sector.

Business segments: Upstream: Exploration and production of oil and gas

resources, primarily Brazilian offshore basins. The company has approximately 13 billion barrels of oil equivalent reserves.

Downstream: Operates substantially all of Brazil’s refining capacity and a leading brand of retail service stations

Petróleo Brasileiro S.A. (Petrobras) September 2015

Summary Credit Statistics and ForecastOil and Gas Reserves: 2000 - 2014Company Profile

12/31/14: 13.1 billion barrels (oil equivalent)

Senior Ratings: Ba2/BB/BBB-(Moody’s/S&P/Fitch)

(USD millions) 2012 2013 2014 2015E 2016ERevenue 143,930 141,192 143,280 91,903 99,221EBITDA 27,208 26,915 25,360 21,956 24,088Net Debt 70,959 92,685 104,561 104,822 111,045Net Debt / EBITDA 2.6x 3.4x 4.1x 4.8x 4.6xSource: FactSet


Rio Oil Finance Trust (RIOOIL)

Rio Oil Finance Trust Issuer of the secured notes A statutory trust formed under the laws of the State of Delaware Formed by Rioprevidência, the public pension fund of the State of Rio (Rio), to

borrow against its future oil and gas revenues in order to pay benefits

Collateral Notes are secured by the right to receive royalties and special participations owed by

oil and gas producers operating in Rio, net of priority deductions• Royalties are assessed as 5-10% of gross revenues• For certain larger fields, special participations are assessed at 10-40% of gross

revenues less specified expenses Currently, over 90% of these cash flows are generated by Petrobras

Investment Thesis Attractive resource base, including many of Brazil’s pre-salt fields High quality cash flows: If a producer fails to make royalty and special participation

payments on a timely basis, their concession can be terminated Good debt service coverage over the long-term, assuming rising production & oil prices

• Based on the Brent oil futures curve, available cash flows are expected to cover debt service by ~3.5x through 2026 (a)

Conservatively-calculated covenants provide downside protection• Deal will trap excess cash and/or allow investors to trigger early amortization if

debt service coverage ratio (DSCR) is below 2x or 1.5x, over a 4-quarter period.• As of the most recent covenant calculation date (9/22), the forecasted

DSCR for 2016 breached the 1.5x covenant.

Risks Cash flows depend on oil/gas production and prices High exposure to Petrobras, may be indirectly affected by issues at the company Government (federal or state) may seek to interfere / divert royalties Transaction is complex

• Combination of onshore and offshore bank accounts, NY and Brazilian law

Simplified Flow of Funds DiagramOverview

Rating: NR/BB/BB+

(a) Cash flow forecasts provided by Banco do Brasil, the Bond Administrator for the transaction, as of 9/22/2015.The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict futureresults or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject tochange without notice and may not represent an account’s entire holdings. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and chargesand expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit www.dodgeandcox.com or call 800-621-3979. Please read theprospectus and summary prospectus carefully before investing.

Royalties & Special Participations fromOil/Gas Producers in the State of Rio de Janeiro

Priority Deductions• Certain debts owed by the State

to the federal government• Certain transfers to

municipalities and State funds• New deductions cannot be added

Debt Service on the Notes• Three series of notes

outstanding: 2 in USD and 1 in BRL

Excess Cash• DSCR <2x: Trap 60% excess cash• DSCR <1.5x: Early amort. option• Distribute remaining cash to

Rioprevidência

E-15038-100815-012115 |

September 2015


E-15309-101415-100915 |

(USD bn) 2012 2013 2014 1H'15Revenue 125.3 125.1 118.8 38.9EBITDA 87.3 77.2 66.0 16.5Net Debt 51.5 58.1 69.5 78.8Net Debt / EBITDA 0.6x 0.8x 1.1x 2.4xSource: Company reports. 2015 Net Debt / EBITDA is annualized.

Senior Ratings: A3/BBB+/BBB+ (Moody’s/S&P/Fitch)

(USD billions)

The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makes no representations as to thecompleteness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict future results or profitability. This is not a recommendation to buy,sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject to change without notice and may not represent an account’s entire holdings. Before investingin any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other importantinformation, visit www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

PEMEX is Mexico’s 100% government-owned national oil company. PEMEX accounts for all of Mexico’s oil and gas production, and generates all of its earnings from upstream E&P operations.

Business segments: Upstream E&P: generates over 100% of the company’s pre-tax via production of crude oil.

Downstream refining: generates pre-tax loss of $8-10bn annually via the processing and marketing of refined products such as gasoline and diesel.

September 2015

Summary Credit StatisticsCompany Profile

Investment Thesis

Significant scale and hard asset value

PEMEX is the fifth largest oil producer in the world, with ~2.5M barrels of production per day, and $66B of 2014 EBITDA. The company has approximately 12B barrels-of-oil-equivalent of proved reserves.

Critical entity to an improving Mexican sovereign

PEMEX accounts for ~100% of Mexican oil and gas production. The company generates approximately 20% of the federal government’s revenues, and provides an important contribution to the country's overall balance of trade. Mexico is an attractive, improving credit: low debt-to-GDP, favorable demographics, prudent central bank, beneficiary of U.S. growth, and ongoing structural reforms in energy, telecommunications, and tax policy.

Energy sector reforms Mexico recently commenced energy sector reforms to open the industry to external investment. This will facilitate an improvement in the company’s technical capabilities by allowing joint ventures with international companies in its upstream operations and allowing full private competition in the downstream sector. The reforms also have the potential to boost PEMEX cash flows over the long-term by reducing the government’s reliance on PEMEX funded tax revenues, as more outside operators will contribute to the Mexican energy sector.

Attractive valuation PEMEX provides attractively priced exposure to Mexican sovereign credit risk.

Risks

Operational challenges PEMEX has historically benefited from a legally protected monopoly. This lack of competitive pressure has led to relative operational weaknesses and underinvestment in both upstream and downstream operations, the effects of which we expect to reverse over time via energy sector reform.

High tax rate PEMEX has historically been burdened with a high tax rate that limited its reinvestment ability. Tax rates will decline as part of energy sector reforms.

Declining production PEMEX production levels have declined in recent years due to under-investment and sub-optimal operations. Energy sector reform and the associated knowledge transfers should provide a boost to the company’s operating acumen and asset management.

Other risks PEMEX has been the target of corruption allegations; unions are large and powerful; the company carries a large amount of USD debt and has underfunded pension obligations.

Petróleos Mexicanos (PEMEX)


(USD millions) 2012 2013 2014 2015E 2016ERevenue 9,973 14,070 16,226 15,010 16,757EBITDA 4,335 5,796 6,525 7,384 7,950Net Debt 33,727 35,624 42,558 44,353 46,989Net Debt / EBITDA 7.8x 6.1x 6.5x 6.0x 5.9xSource: CapitalIQ

Senior Ratings: Baa3/BBB-/BBB- (Moody’s/S&P/Fitch)

Gas Pipelines 52%

CO2 17%

Terminals 13%

Other (Refined Products and Canada) 18%

Investment Thesis

Diversified footprint and contracted cash flows

Over 85% of KMI’s EBDA is from contracted cash-flows. KMI’s natural gas transport contracts typically span multiple decades. KMI is geographically positioned to take advantage of strong growth trends in natural gas distribution. The company has significant scale in all major U.S. centers of natural gas supply and demand: 33% of all natural gas consumed in the U.S. travels through KMI’s network.

Scale advantages KMI’s market share and cost-of-capital superiority position the company to take advantage of future opportunities to grow cash flow and enterprise value.

Disciplined management team with prudent financial policies

The company has an owner-operator culture, cost discipline and strict project underwriting processes. Management is committed to maintaining IG ratings in order to preserve balance sheet flexibility and health. KMI has a strong, experienced board and management team, and is thoughtfully executing its succession plan.

Multiple degrees of freedom

The company maintains open access to debt and equity markets. KMI has flexibility in CAPEX budgets. The company’s separable and saleable assets provide some credit downside protection.

Risks

High leverage KMI is currently levered ~6x on a net basis. Leverage is reasonable in the context of 1) management's plans to de-lever via growth in contracted cash flows, and 2) the company’s access to debt and equity capital markets.

Execution risk Management is opportunistic and likely to pursue ongoing growth opportunities through M&A and organic project developments. Flawed M&A strategy, poor integration, and project development mishaps are risks, though management has a successful track-record of execution.

Other risks ~15% of EBDA is directly exposed to commodity price volatility. KMI operates in a highly regulated industry; it is exposed to periodic rate-case processes, project approvals, environmental policy changes, and other regulatory shifts.

The above information is not a complete analysis of every material fact concerning any market, industry or investment. Data has been obtained from sources considered reliable, but Dodge & Cox makesno representations as to the completeness or accuracy of such information. Opinions expressed are subject to change without notice. The information provided is historical and does not predict futureresults or profitability. This is not a recommendation to buy, sell, or hold any security and is not indicative of Dodge & Cox’s current or future trading activity. The securities identified are subject tochange without notice and may not represent an account’s entire holdings. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, and chargesand expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit www.dodgeandcox.com or call 800-621-3979. Please read theprospectus and summary prospectus carefully before investing.

KMI is one of the largest energy midstream companies in the country. The company is diversified by geography and service, with oil and gas pipelines and terminals across the continental U.S.

Business segments: Gas pipelines: transportation, processing, and storage of

natural gas

CO2: production and marketing of CO2 used for oil extraction

Terminals: storage and transport of petrochemicals

Other: transport of refined products and Canada operations

Kinder Morgan Inc. (KMI) September 2015

Summary Credit Statistics and Forecast2014 EBDA MixCompany Profile


(6.00)

(4.00)

(2.00)

-

2.00

4.00

6.00

8.00

10.00

12.00

Tota

l Ret

urn

Diff

eren

ce (%

)

1 Year Difference Composite vs Barclays U.S. Agg

3 Year Difference Composite vs Barclays U.S. Agg

Upside/Downside Capture Ratio(c)

Upside Downside1-Year 58.34 78.693-Year 94.19 60.465-Year 99.89 56.1310-Year 100.52 63.2315-Year 98.88 59.96

Rolling 1- and 3-Year Relative Returns September 30, 2015

Relative Performance vs. Barclays U.S. Aggregate Bond Index(a)(b)

E-993-101615-062912 |


Source: Dodge & Cox Fixed Income Tax-Exempt Composite and Barclays POINT. (a)This information is not covered by the report of independent accountants. (b)Returns are annualized and basedon quarterly, gross of fees data.(c)Upside capture ratios are calculated by taking the Composite’s average monthly returns for positive benchmark return months and dividing them by the averagebenchmark returns during those same months. Downside ratios are similarly calculated for negative benchmark return months. An upside capture ratio above 100 indicates the Composite generallyoutperformed the benchmark in periods of positive benchmark returns. A downside capture ratio below 100 indicates that the Composite lost less than its benchmark in periods of negative benchmarkreturns.This exhibit supplements and must be accompanied or preceded by Dodge & Cox's Fixed Income Tax-Exempt Composite. The above returns represent past performance and do not guarantee futureresults. Dodge & Cox does not seek to replicate the returns of any index. The actual returns of a Dodge & Cox managed portfolio may differ materially from the returns shown above. Performancefigures do not reflect the deduction of investment advisory fees and other expenses. Returns will be reduced by advisory fees and other expenses incurred in the management of your account. Forexample, if an annual management fee of 0.40% were deducted quarterly from each account, a ten year annualized cumulative composite return of 10.00% would be reduced by .43% to 9.57%.Information on Dodge & Cox investment advisory fees can be found in its Form ADV, Part 2A.


Since 1991 Since 2001262 14293% 88%

1.10% 1.14%

238 11895% 91%

1.02% 1.04%

178 5899% 100%

0.91% 1.04%

Number of 3-year periods:Percentage of periods with Dodge & Cox outperformance:

Number of 10-year periods:

Mean return differential (annualized):

Mean return differential (annualized):

Percentage of periods with Dodge & Cox outperformance:Mean return differential (annualized):

Number of 5-year periods:

Percentage of periods with Dodge & Cox outperformance:

0%

5%

10%

15%

20%

25%

30%

35%

Per

cent

age

of 3

-Yea

r Per

iods

September 30, 2015Long-Term RecordFixed Income Tax-Exempt Composite – Supplemental Exhibit

E-11160-101615-01312 |

Source: Barclays. Analysis begins 1/1/91, rolling in monthly increments, with the first 3-year period ending 12/31/93 and the last period ending 9/30/15. “Since 1991” refers to periods beginning 1/1/91and later. “Since 2001” refers to periods beginning 1/1/01 and later.This exhibit supplements and must be accompanied or preceded by Dodge & Cox's Fixed Income Tax-Exempt Composite. Returns represent past performance and do not guarantee future results.Performance figures do not reflect the deduction of investment advisory fees and other expenses. Returns will be reduced by advisory fees and other expenses incurred in the management of your account.For example, if an annual management fee of 0.40% were deducted quarterly from each account, a ten year annualized cumulative composite return of 10.00% would be reduced by .43% to 9.57%.Information on Dodge & Cox investment advisory fees can be found in its Form ADV, Part II.

Distribution of Gross-of-Fee 3-Year Return Differences since 1991: Tax-Exempt Composite Less Barclays U.S. Aggregate Bond Index

Frequency of Dodge & Cox Outperformance (Gross of Fees):

Total Returns from 1/1/1991Tax-Exempt Composite: 7.3%Barclays U.S. Agg : 6.2%

Dodge & Cox outperforming the Barclays U.S. AggDodge & Cox underperforming the Barclays U.S. Agg

For example, during 93% of all 3-yearperiods that started on or after 1/1/1991,the Dodge & Cox Fixed Income Tax-Exempt Composite outperformed theBarclays U.S. Aggregate Bond Index.


Fixed Income Tax-Exempt Composite

(a)This information is not covered by the report of independent accountants. (b) Unannualized rate of return.

Dodge & Cox claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Dodge & Cox has beenindependently verified for annual periods since 12/31/1991. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-widebasis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Fixed Income Tax-Exempt Composite has been examinedfor annual periods since 12/31/1991. The verification and performance examination reports are available upon request.

September 30, 2015

E-616-101515-081508 |

Total Rates of Return (%) (Gross of Fees)

Page 1 of 2

Annual Returns for Years Ended December 31,

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total Composite 2.57 5.80 5.28 0.24 16.11 7.83 5.59 8.33 0.98 6.23

Barclays U.S. Agg Bond Index(a) 2.43 4.33 6.96 5.24 5.93 6.56 7.86 4.23 -2.02 5.95

Since Inception

12/31/90(a) 10 Years 9 Years 8 Years 7 Years 6 Years 5 Years 4 Years 3 Years 2 Years 1 Year YTD.(b)

Total Composite 7.34 5.60 5.72 5.75 6.76 5.09 4.21 4.17 2.71 3.64 1.14 -0.07

Barclays U.S. Agg Bond Index(a) 6.24 4.64 4.75 4.70 4.85 3.93 3.11 2.57 1.71 3.45 2.95 1.14

Statistics ($ millions) at December 31,

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 9/30/15(a)

Number of Accounts 155 136 141 134 125 119 122 116 110 110 114Ending Market Value ($) 25,307 26,486 29,998 25,565 23,667 23,737 24,122 24,244 20,728 22,872 21,743Average Account Size ($) 163 195 213 191 189 199 198 209 188 208 191Median Account Size ($) 93 106 116 107 97 96 98 109 99 111 108Standard Deviation (%) 0.2 0.1 0.2 0.6 1.1 0.3 0.2 0.4 0.2 0.1 0.2Total Firm Assets ($) 166,407 212,314 235,754 143,179 172,461 189,356 174,948 189,510 224,417 269,574 259,877% of Total Firm Assets (%) 15.2 12.5 12.7 17.9 13.7 12.5 13.8 12.8 9.2 8.5 8.4

Annualized Cumulative Returns for Periods Ended September 30, 2015


Fixed Income Tax-Exempt Composite September 30, 2015

Page 2 of 2

Notes to the Composite

E-617-101515-081508 |

1. The Fixed Income Tax-Exempt Composite is comprised of core fixed income accounts that are managed free of tax constraints. The accounts are invested in diversified portfolios consisting primarily of high-

quality bonds and other fixed income securities, including U.S. government obligations, mortgage and asset-backed securities, corporate bonds and collateralized mortgage obligations. The accounts’ objectives

are to seek a high and stable rate of current income, consistent with long-term preservation of capital.

2. This composite was created on January 1, 1993.

3. Dodge & Cox, an independent investment adviser registered under the Investment Advisers Act of 1940, is an autonomous investment firm for purposes of determining the Total Firm Assets under

management and firmwide compliance.

4. Cash reserves and equivalents are included in the Total Composite returns. Segments of multiple-asset portfolios are not included in this composite.

5. Valuations and performance are computed in U.S. dollars.

6. Performance is generally reported gross of withholding tax on dividends, interest income and capital gains.

7. Performance figures do not reflect the deduction of investment advisory fees and other expenses. Returns will be reduced by the advisory fees and other expenses incurred in the management of the accounts.

For example, if an annual management fee of 0.40% were deducted quarterly from each account, a ten year annualized cumulative composite return of 10.00% would be reduced by 0.43% to 9.57%.

Information on Dodge & Cox investment advisory fees can be found in its Form ADV, Part II.

8. The unmanaged index shown for comparative purposes does not reflect the deduction of any fees.

The Barclays U.S. Aggregate Bond Index is a widely recognized, unmanaged index of U.S. dollar-dominated investment-grade fixed income securities.

9. This report may only be presented to prospective clients on a one-on-one basis.

10. The performance data represents past performance; the results shown should not be considered as a representation of gain/loss which may be realized from an investment made today.

11. A complete list and description of all Dodge & Cox composites, as well as additional information regarding policies for valuing portfolios, calculating and reporting returns is available upon request.

12. Accounts with asset size below $4,000,000 prior to October 1, 2001 and $5,000,000 thereafter are excluded from the composite.

13. The Annualized Cumulative Rate of Return is equivalent to the annual rate of return which, if earned in each year of the indicated multi-year period, would produce the actual cumulative rate of return over

the entire period.

14. Total Firm Assets are calculated at a point in time. Internal dispersion is calculated by using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the

composite for the year.

15. Results include accounts present for an entire measurement period, except for accounts subject to material client restrictions. The measurement period is defined as a full quarter prior to January 1, 2000 and

as a full month thereafter.

16. Before January 1, 2005, trade date accounting was utilized except for a maximum of 10% or less of accounts which used settlement date accounting, at the client’s request.

17. On January 1, 2006, 29 accounts were removed from the Fixed Income Tax-Exempt composite, as they were determined to have sufficiently restrictive credit quality guidelines to warrant their removal. A

new composite has been created for accounts with more restrictive credit quality guidelines.

18. Current annual fees for Core Fixed Income Accounts are:

0.35% on the next $25 million



0.12% thereafter

19. 3 year annualized standard deviation at:

9/30/2015 9/30/2014 9/30/2013 9/30/2012 9/30/2011Total Composite 2.4 2.6 2.7 2.3 4.7

Barclays U.S. Aggregate Bond Index 2.9(a) 2.7(a) 2.8(a) 2.7(a) 4.0(a)


Dodge & Cox Investment Vehicles

(a)For defined contribution plan assets, when a record keeper’s aggregate client assets in the Dodge & Cox Funds reach $5 million, a service fee may be paid by Dodge & Cox to the record keeper at theannual rate of 10 basis points for the Stock Fund, Global Stock Fund, International Stock Fund and Balanced Fund, and 8 basis points for the Income Fund and Global Bond Fund. (b)Prospectiveseparate account relationships are considered on a case-by-case basis. Institutional fixed income accounts are subject to a minimum quarterly fee of $37,500. (c)Dodge & Cox also manages stable valuefixed income portfolios. (d)Private Client accounts are subject to a minimum quarterly fee of $10,000. (e)Dodge & Cox has contractually agreed to reimburse the Fund for all ordinary expenses to theextent 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’ writtennotice by either party prior to the end of the term. (f)Dodge & Cox has agreed to reimburse expenses to the extent necessary to maintain the total expense ratio at 0.70% (0.60% for the Global Bondstrategy), and may terminate or modify the agreement upon 30 days written notice. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, risks, andcharges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, visit dodgeandcox.com or call 800-621-3979. Please read theprospectus and summary prospectus carefully before investing.

Institutional Separately Managed Accounts(b)

Domestic Equity and Balanced Open $60 million .60% on the first $25 million.40% thereafter

Core Fixed Income Open $200 million .35% on the first $25 million.25% on the next $75 million.15% on the next $150 million.12% thereafter

Long Duration Fixed Income Open $100 million .35% on the first $25 million.25% on the next $75 million.15% on the next $150 million.13% thereafter

Intermediate Fixed Income(c) Open $100 million .30% on the first $50 million.25% on the next $50 million.14% on the next $100 million.11% thereafter

Private Client Accounts(d)

Individuals, Local Foundations and EndowmentsDomestic Equity and Balanced Open Based on client circumstances .60% on the first $25 million

.40% thereafter

Tax-Exempt Municipal Bond Open $10 million .35% on the first $10 million.25% on the next $20 million.20% on the next $20 million.15% thereafter

Non-U.S. Dodge & Cox Funds (Irish UCITS)Global Stock Fund Open .70%(f)

International Stock Fund Open $50,000 outside the U.S. only .70%(f)

U.S. Stock Fund Open (all Funds) .70%(f)

Global Bond Fund Open .60%(f)

Dodge & Cox Funds(a) Status Account Minimum Annual Expense Ratio / Fee Schedule

Stock Fund (DODGX) Open .52%Global Stock Fund (DODWX) Open .65%International Stock Fund (DODFX) Closed to New Investors $2,500 (all Funds) .64%Balanced Fund (DODBX) Open .53%Income Fund (DODIX) Open .44%Global Bond Fund (DODLX) Open .60%(e)

September 30, 2015


3 Months Ended(a) YTD(a) 1 Year 3 Years 5 Years 10 Years 20 Years

Stock Fund -9.85% -8.62% -6.62% 13.40% 13.03% 5.53% 10.01% S&P 500 Index -6.43% -5.27% -0.60% 12.41% 13.35% 6.80% 8.14% Russell 1000 Value Index -8.40% -8.97% -4.44% 11.60% 12.28% 5.71% 8.57%

Global Stock Fund -13.07% -11.16% -12.32% 9.84% 8.20% N.A.(b) N.A. MSCI World Index -8.45% -6.04% -5.10% 8.58% 8.29% N.A.(b) N.A. MSCI ACWI Index -9.45% -7.03% -6.65% 6.96% 6.83% N.A.(b) N.A.

International Stock Fund -15.38% -12.09% -16.19% 6.62% 4.06% 4.21% N.A.(c)

MSCI EAFE Index -10.24% -5.27% -8.65% 5.64% 3.98% 2.97% N.A.(c)

MSCI ACWI ex-US -12.17% -8.63% -12.17% 2.34% 1.82% 3.03% N.A.(c)

Balanced Fund -6.87% -5.85% -4.19% 10.46% 10.66% 5.65% 8.83% Combined Index -3.37% -2.60% 0.98% 8.15% 9.33% 6.23% 7.43%

Income Fund -0.81% -0.72% 0.16% 2.09% 3.61% 5.06% 5.90% Barclays U.S. Aggregate Bond Index 1.24% 1.14% 2.95% 1.71% 3.11% 4.64% 5.59%

Global Bond Fund(e) -4.16% -6.21% -7.90% N.A.(d) N.A. N.A. N.A.Barclays Global Aggregate Bond Index 0.85% -2.26% -3.28% N.A.(d) N.A. N.A. N.A.

Average Annual Total Returns for periods ending September 30, 2015

Dodge & Cox Funds Performance Results

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 Fundshare redemptions. Index returns include dividends and/or interest income but, unlike Fund returns, do not reflect fees or expenses. Returns represent past performance and do not guarantee futureresults. Investment return and share price will fluctuate with market conditions, and investors may have a gain or loss when shares are sold. Mutual fund performance changes over time and currentlymay be significantly lower than stated above. Performance is updated and published monthly. Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives,risks, and charges and expenses. To obtain a Fund’s prospectus and summary prospectus, which contain this and other important information, or for current month-end performance figures, visitdodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

(a)Unannualized rate of total return. (b)Since Global Stock Fund’s inception on May 1, 2008 through September 30, 2015: 2.91% compared to 2.83% for the MSCI World Index and 2.15% for theMSCI ACWI Index. (c)Since International Stock Fund’s inception on May 1, 2001 through September 30, 2015: 7.12% compared to 3.93% for the MSCI EAFE Index and 4.52% for the MSCIACWI free ex-US. (d)Since Global Bond Fund’s inception on December 5, 2012 through September 30, 2015: -0.70% compared to -1.78% for the Barclays Global Aggregate Bond Index. (e)A privatefund managed by Dodge & Cox with proprietary assets was reorganized into the Dodge & Cox Global Bond Fund on April 30, 2014. Any Fund portfolio characteristics, performance, or attributioninformation for periods prior to May 1, 2014, are those of the private fund.

E-1775-100615-061814 |

September 30, 2015


Source Citations

E-12823-050114-011013 |

BarclaysBarclays U.S. Aggregate Index: The Barclays U.S. Aggregate Bond Index is awidely recognized, unmanaged index of U.S. dollar-denominated, investment-grade, taxable fixed income securities.Barclays Global Aggregate Index: The Barclays Global Aggregate Bond Index is awidely recognized, unmanaged index of multi-currency, investment-grade fixedincome securities.Barclays POINT is a portfolio analytics platform.Barclays® is a trademark of Barclays Bank PLC. POINT® is a trademark ofBarclays Capital Inc.

GICSThe Global Industry Classification Standard (“GICS”) classifies securities intoasset classes by assigning each company—based on its principal businessactivity—to a sub-industry, industry, industry group, and sector. GICS wasdeveloped by and is the exclusive property and a service mark of MSCI Inc.(“MSC’’) and Standard & Poor’s, a division of The McGraw-Hill Companies,Inc. (“S&P”) and is licensed for use by Dodge & Cox. Neither MSCI, S&P norany other party involved in making or compiling the GICS or any GICSclassifications makes any express or implied warranties or representations withrespect to such standard or classification (or the results to be obtained by the usethereof), and all such parties hereby expressly disclaim all warranties oforiginality, accuracy, completeness, merchantability and fitness for a particularpurpose with respect to any of such standard or classification. Without limitingany of the foregoing, in no event shall MSCI, S&P, any of their affiliates or anythird party involved in making or compiling the GICS or any GICSclassifications have any liability for any direct, indirect, special, punitive,consequential or any other damages (including lost profits) even if notified of thepossibility of such damages.

RussellRussell 1000 Value Index: The Russell 1000 Value Index is a broad-based,unmanaged equity market index composed of those Russell 1000 companies withlower price-to-book ratios and lower forecasted growth values.Russell 1000® is a trademark of Frank Russell Company.

Standard & Poor’sS&P 500: The S&P 500 Index is a market capitalization-weighted index of 500large-capitalization stocks commonly used to represent the U.S. equity market.S&P 500® is a trademark of The McGraw-Hill Companies.

MSCIMSCI EAFE: The MSCI EAFE (Europe, Australasia, Far East) Index is abroad-based, unmanaged equity market index aggregated from 22 developedmarket country indices, excluding the United States.MSCI World: The MSCI World Index is a broad-based, unmanaged equitymarket index aggregated from 24 developed market country indices, includingthe United States.MSCI ACWI: The MSCI ACWI (All Country World Index) Index is a broad-based, unmanaged equity market index aggregated from 45 developed andemerging market country indices.MSCI ACWI ex US: The MSCI ACWI (All Country World Index) ex USIndex is a broad-based, unmanaged equity market index aggregated from 44developed and emerging market country indices, excluding the United States.The MSCI information in this presentation may only be used for your internaluse, may not be reproduced or redisseminated in any form and may not be usedas a basis for or a component of any financial instruments or products orindices. None of the MSCI information is intended to constitute investmentadvice or a recommendation to make (or refrain from making) any kind ofinvestment decision and may not be relied on as such. Historical data andanalysis should not be taken as an indication or guarantee of any futureperformance analysis, forecast or prediction. The MSCI information is providedon an “as is” basis and the user of this information assumes the entire risk of anyuse made of this information. MSCI, each of its affiliates and each other personinvolved in or related to compiling, computing or creating any MSCIinformation (collectively, the “MSCI Parties”) expressly disclaims all warranties(including, without limitation, any warranties of originality, accuracy.completeness. timeliness, non-infringement, merchantability and fitness for aparticular purpose) with respect to this information. Without limiting any ofthe foregoing, in no event shall any MSCI Party have any liability for anydirect, indirect, special, incidental, punitive, consequential (including, withoutlimitation, lost profits) or any other damages. (www.msci.com)MSCI,

® EAFE,® and ACWI® are trademarks of MSCI, Inc.


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