(PUB) Morningstar FundInvestor

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August 2 014

Morningstar FundInvestor

Data through July 31, 2014 Dodge & Cox Income

Ticker Status Yield SEC Yield Total Assets Mstar Category DODIX Open 3.1% . $27,835 mil Intermediate-Term Bond

Morningstar Analyst Rating 07-22-14

Investment Style Fixed Income Income Rtn %Rank Cat

Historical Profile Return Risk Rating Above Avg Average Above Avg

Manager Change Partial Manager Change

14.0 16.0 18.0

Morningstar Pillars Process Performance

∞ ∞ ∞ ∞ ∞

Positive Positive Positive Positive Positive

Growth of $10,000

NAV Total Return % +/-BC Agg Bnd +/-BC Agg Bnd Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Investment Values of Fund Investment Values of BC Agg Bnd Performance Quartile (within Category) History

12.0

People Parent Price

10.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 07-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

12.92

12.84 3.64 -0.70 -0.70 4.25 -0.61

12.54 1.98 -0.45 -0.45 4.35 -2.37

12.57

12.51 4.68 -2.29 -2.29 5.15 -0.47

11.79 -0.29 -5.53 -5.53 5.51 -5.80

12.96 16.05 10.12 10.12

13.23

13.30 4.76 -3.08 -3.08 4.23 0.53

13.86

13.53 0.64 2.66 2.66 3.03 -2.39

13.86

5.97 1.87 1.87 4.78 1.19 0.60 0.00 0.45 4.81 25

5.30 0.97 0.97 5.00 0.30 0.62 0.00 0.44 4.77 11

7.17 0.63 0.63 5.07 2.10 0.65 0.00 0.43 4.26 57

7.94 3.73 3.73 3.69 4.25 0.48 0.00 0.43 3.52 33

4.33 3.99 3.99 1.56 2.77 0.21 0.04 29

5.86

10.19

Pillar Spectrum Positive ∞

0.54 0.00 0.44 3.61

0.55 0.00 0.44 3.99

0.64 0.00 0.44 5.07

0.68 0.00 0.43 5.40

0.68 0.00 0.43 5.29

0.55 0.00 0.43 4.12

0.42 0.00 0.43 3.00

§ Negative

¶ Neutral

. . .

Performance 07-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total 7.17 4.76 7.94 0.64

24 . .

2010 2011 2012 2013 2014

2.24 1.99 1.36 1.77 2.97 1.29 0.54 -1.84 2.31 2.19 1.09 0.94 2.96 2.67 5.84 5.28 4.39 3.84 5.89 5.15 5.50 3.23 6.24 3.42 Total +/- BC

2.58 0.19 0.19 1.37 2.50 0.97 0.81 1.15

5,697

7,870

28,422 24,654 26,539 24,051 22,381 19,240 13,796 15,895 11,972 9,610

Portfolio Analysis 06-30-14

Rating and Risk Time Load-Adj

Date of Maturity

Amount

Value % Net $000 Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. . .

Period Return % Rtn vs Cat

Total Fixed-Income:692

$000

1 Yr 3 Yr 5 Yr

5.84 4.39 5.89 5.50 7.32

Trailing

+/- BC %Rank Growth of

US Treasury Note 1.5% US Treasury Note 1.5% US Treasury Note 0.625% Verizon Comms 6.55%

08-31-18 500,000 502,539 1.81 02-28-19 496,995 496,063 1.78 02-15-17 450,000 448,875 1.61 09-15-43 314,350 394,940 1.42 08-01-31 341,801 373,617 1.34 07-31-16 350,000 357,246 1.28 03-15-17 350,000 349,945 1.26

Return% Agg Bnd Agg Bnd

Cat

$10,000

+Avg +Avg +Avg

Avg -Avg Avg

3 Mo 6 Mo 1 Yr

0.94 2.67 5.28 3.84 5.15 3.23 3.42

36 10,109 24 10,296 18 10,584 22 11,376 35 13,313 18 17,081 13 24,793

10 Yr Incept

FNMA 4.5%

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index BC US Credit

US Treasury Note 1.5% US Treasury Note 0.75%

BC Agg Bnd

Alpha

2.3

1.3

FHLMC FRN 05-01-44 287,385 298,160 1.07 Time Warner Cable 8.25% 04-01-19 221,583 280,737 1.01 Petrobras Intl Fin 5.375 01-27-21 266,770 278,036 1.00 Rio Oil Fin Tr 144A 6.25 07-06-24 260,750 273,760 0.98 California St Go Bds 7.5 04-01-39 180,880 271,921 0.98 Bac Cap Tr Xi 6.625% 05-23-36 240,328 271,462 0.98 Chase Issuance Tr 2012-8 10-16-17 262,460 262,653 0.94 Hca 6.5% 02-15-16 235,325 253,269 0.91 US Treasury Note 0.875% 05-15-17 250,000 250,313 0.90 Bk Amer Fdg 7.625% 06-01-19 199,782 246,733 0.89 Citigroup Cap Xiii Pfd 220,333 243,423 0.87 FHLMC CMO 12-15-43 209,429 236,344 0.85 Aol Time Warner 7.625% 04-15-31 162,843 223,481 0.80 Current Investment Style Sector Breakdown % of assets

Beta

0.68

0.61

R-Squared

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 3.00 16 1.33 60 4.37 31 1.44 62 4.14 9 1.29 24 Potential Capital Gain Exposure: 7% of assets Morningstar’s Take by Cara Esser 07-22-14 For Dodge & Cox Income, patience pays off. With a three- to five-year investment time horizon, this fund’s managers have an eye for the long term. This approach leads to low turnover (typically about a third of the portfolio each year), and the team is willing to be patient with its picks. For example, the fund bought Build America Bonds (taxable municipal bonds) from the struggling state of California in 2009 and 2010. Those positions began to pay off as the state turned around its finances and have been top performers for a few years running. Patience also positioned the fund well for 2013’s rocky bond markets. A longtime stance of shorter-than-average duration helped the fund hold up better than most as yields spiked in the aftermath of the spring’s "taper talk." The fund entered 2013 with a duration of about 75% of Barclays US Aggregate Bond Index. Managers increased that duration to about 80% of the index’s in the fall of 2013 but brought duration back to about 75% of the Index s as of June 30, 2014. A focus on income as a component of total returns

Standard Deviation

2.75 4.39 1.56

Mean

Sharpe Ratio

is apparent in the fund’s generally higher-than-average yield (2.5% as of June 30) and its long-standing overweighting to corporates, including a sometimes 10%-plus weighting to junk bonds. As of June 30, the fund held about 10% in junk corporate bonds, but its overall allocation to corporates has dropped over the past year by about 5 percentage points. Within corporates, managers have favored financial names. The fund’s typically high corporate stake can hurt the fund in rough credit markets. For example, in 2011, this fund underperformed the index and 80% of its peers. Over the long haul, though, managers have been more right than wrong. During the trailing 10-year period ended July 15, 2013, the fund’s average annual gain of 5.5% topped the index by 68 basis points per year and beat 80% of its intermediate-term bond peers . Add in a veteran and well-resourced management team and low expenses and this fund is a keeper. The fund earned an Analyst Rating of Gold.

US Treasury

Duration Ltd Mod Ext

Non US Government Government Related

2 1

Quality High Med Low

Corporate 36 Agency MBS Pass-Through 27 Agency MBS ARM 1 Agency MBS CMO 6 Non-Agency Residential MBS 0 Commercial MBS 0 Asset-Backed 3 Municipal 5 Cash & Equivalents 5 Other 0 Composition - Net Cash 5.4 Bonds 93.3 Stocks 0.0 Other 1.3

figure provided by fund

1 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Coupon Range

4.3 Yrs 7.0 Yrs

5.01%

112.24% of par

% of Bonds Rel Cat

0% PIK 0% to 6% 6% to 8% 8% to 10%

0.6 0.2 63.9 0.8 30.7 2.5 4.8 1.5 0.0 0.0

More than 10%

Address:

Dodge & Cox Funds San Francisco, CA 94104 800-621-3979 www.dodgeandcox.com

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $100 IRA: $1000

1.00=Category Average

Add: $100

Credit Analysis

Special Securities Restricted/Illiquid Secs Exotic Mortgage-Backed Emerging-Markets Secs Options/Futures/Warrants

% bonds 06-30-14

Sales Fees:

No-load

AAA

7 0

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

0.50% mx./0.40% mn., 0.08%A Mgt:0.40% Dist: .

B 0 Below B 0 NR/NA 0

01-03-89

Actual Fees:

Dodge & Cox

Expense Projections: Income Distribution:

3Yr:$138 Quarterly

5Yr:$241 10Yr:$542

14 23

Trace

None

BBB

N/A

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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