(PUB) Morningstar FundInvestor

4

Data through June 30, 2013 Dodge & Cox Balanced

Ticker

Status Yield Total Assets

Mstar Category Moderate Allocation

DODBX Open

1.8% $13,295 mil

Morningstar Analyst Rating 06-28-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg High Above Avg

62% 64% 66% 67% 72% 72% 74% 70% 69%

Œ

Manager Change Partial Manager Change

10.0 12.5 15.0 18.0 20.5

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of M* MdTgRk

People Parent Price

NAV Total Return % +/-M* MdTgRk +/-Mstr Md Ag Rk Income Return % Capital Return % Total Rtn % Rank Cat Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 06-13

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 ¨

60.75 -2.94 3.75 9.36 2.91 -5.85

73.04 24.44 1.96 -4.70 2.76 21.68

79.35 13.30 1.82 -0.77 2.21 11.09

81.34 6.59 -0.45 -2.26 2.34 4.25

87.08 13.86 0.91 -2.13 2.73 11.13

81.00

51.26

64.03 28.37

70.22 12.22 -0.11 -2.70

67.45 -1.66 -2.25 0.27 2.33 -3.99

78.06 18.32

87.00 12.60

-33.57 1.73 -11.38 -6.90

6.60 0.82 2.98

6.28 3.99 2.47

8.04 5.82 1.12

-7.21 2.76

-2.92 2.46

2.39 9.83 1.52 0.00 0.53 2.13 43

-36.03 -1.03

25.39

15.85

11.48

4

17

5

23

13

90

89

23

69

1

2

Pillar Spectrum Positive

1.88 0.88 0.53 3.12

1.66 0.67 0.54 2.57

1.60 1.68 0.54 1.97

1.84 1.32 0.53 2.15

2.20 3.20 0.52 2.52

2.37 5.28 0.53 2.59

1.95 1.34 0.53 2.85

1.51 0.00 0.53 2.61

1.62 0.00 0.53 2.26

1.66 0.00 0.53 2.21

0.87 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 06-30-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

25

19

18

18

20

27

27

19

12

19

16

2009 2010 2011 2012 2013

-10.35 18.93 15.97 3.82 28.37 5.56 -9.57 8.48 8.37 12.22 4.92 0.67 -14.14 8.45 -1.66 10.85 -2.23 6.59 2.42 18.32 8.83 3.46 . . .

13,295 12,217 12,220 14,849 15,468 14,700 27,063 27,458 23,611 20,741 13,196 7,885

Rating and Risk Time Load-Adj

Portfolio Analysis 03-31-13 Total Stocks:72

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

P/E

YTD % Net

Period Return % Rtn vs Cat

Share change since 12-31-12

Sectors

Ratio Return % Assets

1 Yr 3 Yr 5 Yr

22.93 15.49

Trailing

Total

+/- M* +/- Mstr

%Rank Growth of

Hewlett-Packard Co Wells Fargo & Co

Technology Finan Svs Finan Svs Comm Svs Comm Svs Cnsmr Cyc Hlth care Hlth care

77.52 2.88

.

Return% MdTgRk Md Ag Rk

Cat

$10,000

High +Avg +Avg

High High High

10.2 22.21 2.68 8.9 11.50 2.59 16.4 10.12 2.45

3 Mo 6 Mo 1 Yr

3.46 4.00 12.60 8.04 22.93 11.83 15.49 4.67 7.17 1.53 7.18 -0.31

3.51 5.82 7.82 2.45 1.63 -1.10

1 10,346 2 11,260 1 12,293 2 15,404 10 14,137 16 20,005 4 30,046

7.17 7.18 9.81

Capital One Financial Cor Comcast Corp Class A Microsoft Corporation

10 Yr Incept

Technology 14.7 28.79 2.22

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

Sprint Nextel Corp Time Warner Inc

26.10 2.20

.

Other Measures

Standard Index

Best Fit Index Russ 1000 Vl

15.5 25.64 2.19 19.2 10.16 2.10 20.4 15.80 2.07

M* MdTgRk

Sanofi ADR

Alpha

1.4

-0.1 0.85

7.61

. .

Merck & Co Inc

Beta

1.29

Date of Maturity

Amount

Value % Net $000 Assets

R-Squared

94

97

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 14.56 2 0.80 66 6.25 9 0.86 62 6.17 12 0.94 48 Potential Capital Gain Exposure: 13% of assets Morningstar’s Take by Laura Lallos 06-28-13 Dodge & Cox Balanced’s high stock stake is a sign of its measured value approach. This fund can hold between 25% and 75% in equities, and it is near that upper limit. Meanwhile, the average moderate-allocation fund currently has a bit less than the classic 60% allocation to stocks. That does not make this an aggressive offering per se. Dodge & Cox is a die-hard value shop, and the longtime members of the management team run the portfolio with a three- to five-year time horizon. Given relatively low stock valuations and low bond yields, the fund’s asset allocation makes sense. That equity stake has propelled the fund to the top of the category over the past 18 months. However, the fund has been stock-heavy since the financial crisis, and steep losses from late 2007 through early 2009 spurred heavy outflows. The fund has recovered nicely from that bottom, though, despite an above-average loss in 2011. Strong showings from the same financial-services stocks that hurt in 2011 have boosted returns lately, as have fixed-income picks in

Total Fixed-Income:234

$000

Standard Deviation

12.11 15.49

FNMA 4% FHLMC 4%

02-01-27 77,644 83,099 0.65 11-01-26 57,242 60,909 0.47 01-15-32 49,699 59,617 0.46 08-01-37 41,828 46,147 0.36 09-01-36 40,637 45,637 0.35 12-31-49 52 52,424 0.41

Mean

Sharpe Ratio

1.25

May Dept Stores 6.9% Nbcuniversal Entpr 144A 5

FNMA 5.5% FNMA 6% FNMA FRN

06-01-41 42,058 44,390 0.34 Bk Amer Chrlt Nc Mtn 5.3% 03-15-17 37,540 42,063 0.33 California St Go Bds 7.5% 04-01-34 28,825 40,120 0.31

that sector. The fund’s three-, five-, and 10-year trailing returns through May are once again all in the top quartile of its category. Unfortunately, its dollar-weighted Morningstar Investor Returns are considerably lower: a 4.8% annualized 10-year return, for example, compared with an actual 7.3% return. The fund has been much more volatile than the typical moderate-allocation fund, which has no doubt prompted ill-timed redemptions. This is not a classic 60/40 balanced fund, and it may be inappropriate for investors who want a traditional bond ballast. That said, with bond yields inevitably heading up, this fund’s allocation seems quite sensible. What’s more, its bond stake is relatively low duration and heavy on corporates, which capitalizes on Dodge & Cox’s industry research expertise. For value-minded investors who can handle the risks of the managers’ sometimes contrarian approach, this portfolio spells opportunity.

Equity Style

Fixed-Income Style Duration: Moderate Quality: Medium Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon 1

Style: Blend Size: Large-Cap Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs

3.7 Yrs 7.1 Yrs

Rel Category

13.66 1.57 1.14 6.52 2.00

0.96 0.83 0.94 0.95 0.83 0.97 1.43 1.29 0.33 1.88

BBB

5.91%

figure provided by fund as of 03-31-13 1

Sector Weightings

% of Stocks

Rel M* MdTgRk High

3 Year Low

% Rel Category

9.74 1.74 3.13 0.30 7.01

Cyclical 33.60 0.86 BasicMat 2.91 0.51 3 2 CnsmrCyc 8.12 0.69 11 8 FinanSvs 22.57 1.29 24 17 Real Est 0.00 0.00 . . Sensitive 47.44 1.25 CommSrvs 9.98 2.51 10 9 Energy 6.72 0.73 10 7 Industrl 6.30 0.53 10 6 Technlgy 24.44 1.88 24 18 Defensive18.96 0.83 CnsmrDef 0.36 0.04 3 0 Hlthcare 18.60 1.82 22 18 Utilities 0.00 0.00 . .

h r t y u j i o p a k s d f

Market Cap % Giant 47.7 Large 39.1 Mid 12.8

Small Micro

0.4 0.0

Avg $mil:

50,496

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

Composition - Net

Add: $100

Cash 9.8 Stocks 71.2 Bonds 18.6 Other 0.5 Foreign 17.1

Sales Fees:

No-load 0.50% 3Yr:$170 Quarterly

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

Management Fee:

06-26-31

Actual Fees:

Mgt:0.50% Dist: .

Dodge & Cox

Expense Projections: Income Distribution:

5Yr:$296 10Yr:$665

None

(% of Stock)

N/A

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or timely. Past performance isnoguaranteeof future results.Accessupdated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.

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