Balanced Fund DODBX - Dodge & Cox

1 December 31, 2021. Balanced fund TICKER SYMBOL. D ODBX. Objectives The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. Strategy The fund invests in a diversified portfolio of equity securities and debt securities. Equity Investments: The fund typically invests in companies that, in Dodge & Cox's opinion, appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth. Under normal circumstances, the fund will invest no less than 25% and no more than 75% of its total assets in equity securities. Debt Investments: The fund invests primarily in investment-grade debt securities including government and government-related obligations, mortgage- and asset- backed securities, corporate and municipal bonds, and other debt securities.

2 To a lesser extent, the fund may also invest in below investment-grade debt securities. Risks The fund is subject to market risk, meaning holdings in the fund may decline in value for extended periods due to the financial prospects of individual companies or due to general market and economic conditions. The fund also invests in individual bonds whose yields and market values fluctuate, so that your investment may be worth more or less than its original cost. Debt securities are subject to interest rate risk, credit risk, and prepayment and call risk, all of which could have adverse effects on the value of the fund . Please read the prospectus for specific details regarding the fund 's risk profile. General Information Asset Allocation Net Asset Value Per Share $ Total Net Assets (billions) $ 2021 Expense Ratio Unhedged Expense Ratio per 5/1/21 Prospectus Equity:(f) Fixed Income: 2021 Portfolio Turnover 49%.

3 30-Day SEC Yield(a) fund Inception 1931. No sales charges or distribution fees Net Cash & Other:(h) Preferred Equity: Investment Manager: Dodge & Cox, San Francisco. Managed by the Equity Investment Committee, whose nine members' average tenure at Dodge & Cox is 23 Hedged Equity:(b) years, and by the Fixed Income Investment Committee, whose eight members'. average tenure is 22 years. Equity Investments ( )(f) fund Fixed Income Investments ( ) fund Number of Companies 73 Number of Credit Issuers 55. Median Market Capitalization (billions)(c) $51 Effective Duration (years) Price-to-Earnings Ratio(c)(d) Securities not in the S&P 500(e) Sector Diversification (%) fund Treasury Government-Related Five Largest Sectors (%) (f). fund Securitized Financials Corporate Health Care Information Technology Credit Quality (%)(i) fund Communication Services Treasury/Agency/GSE Energy AAA AA A Ten Largest Equity Issuers (%)(f)(g) fund BBB Wells Fargo & Co.

4 BB Charles Schwab Corp. B Alphabet, Inc. CCC Sanofi (France) GlaxoSmithKline PLC (United Kingdom) Five Largest Credit Issuers (%)(g) fund Comcast Corp. Charter Communications, Inc. HP, Inc. Petroleos Mexicanos Fiserv, Inc. JPMorgan Chase & Co. Cigna Corp. Ford Motor Credit Co. LLC Capital One Financial Corp. TC Energy Corp. Market values for debt securities and preferred equity securities include accrued interest. (a) SEC Yield is an annualization of the fund 's net investment income for the trailing 30-day period. Dividends paid by the fund may be higher or lower than implied by the SEC Yield. (b) The fund holds a short S&P 500 futures position with a notional value of approximately of the fund 's total net assets. This position is intended to reduce the exposure of the fund 's equity allocation to a general downturn in the equity markets, but if the S&P 500 index increases in value, the position will cause a loss for the fund , which could be in addition to losses suffered in respect to its stock holdings.

5 (c) Excludes the fund 's preferred equity securities. (d) Price-to-earnings (P/E) ratios are calculated using 12-month forward earnings estimates from third-party sources as of the reporting period. Estimates reflect a consensus of sell-side analyst estimates, which may lag as market conditions change. (e) stocks are dollar denominated. (f) Includes direct and synthetic equity investments. (g) The fund 's portfolio holdings are 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 future trading activity. (h) Net Cash & Other includes cash, short-term investments, unrealized gain (loss) on derivatives, receivables, and payables.

6 (i) The credit quality distribution shown for the fund is based on the middle of Moody's, S&P, and Fitch ratings, which is the methodology used by Bloomberg in constructing its indices. If a security is rated by only two agencies, the lower of the two ratings is used. Please note the fund applies the highest of Moody's, S&P, and Fitch ratings to determine compliance with the quality requirements stated in its prospectus. The credit quality of the investments in the portfolio does not apply to the stability or safety of the fund or its shares. Average Annual Total Return1. For periods ended December 31, 2021 1 Yeart 3 Years 5 Years 10 Years 20 Years Dodge & Cox Balanced fund Combined Index Returns represent past performance and do not guarantee future results.

7 Investment return and share price will fluctuate with market conditions, and investors may have a gain or loss when shares are sold. fund performance changes over time and currently may be significantly lower than stated above. Performance is updated and published monthly. Visit the fund 's website at or call 800-621-3979 for current month-end performance figures. t Investors should note that the fund 's short-term performance is highly unusual and unlikely to be sustained. The Dodge & Cox Balanced fund delivered a total return of for the fourth Equity Portfolio8. quarter of 2021, compared to for the Combined Index (a 60/40 blend of stocks Returns from holdings in the Communication Services sector (down 6% versus and fixed income securities).)

8 For the twelve months ended December 31, 2021, the flat for the S&P 500 sector), combined with a higher weighting in the equity fund generated a total return of , compared to for the Combined Index. portfolio, detracted. Charter Communications, Comcast, DISH Network, and Fox Corp. were weak. Investment Commentary In Information Technology, the portfolio's holdings (up 13% compared to up 17%. The broad-based S&P 500 Index posted an exceptionally strong return of 29% for the S&P 500 sector) and lower weighting hindered performance. VMware for 2021. For value versus growth stocks, however, it was a tale of two and Microsoft detracted. During the first half of the year, value stocks appreciated significantly and The portfolio's holdings in the Industrials sector (up 12% versus up 9% for the outperformed growth stocks.

9 In the second half, value stocks underperformed as S&P 500 sector) added to results. FedEx and Johnson Controls International COVID-19 variants disrupted the economic reopening in the United States. performed well. More recently, investors have expressed concerns about rising prices and wages, fading fiscal stimulus, and looming monetary tightening by the Federal Fixed Income Portfolio Reserve. Inflation is now at levels last seen in the 1980s, and the Federal Reserve The portfolio's key rate duration positioning ( , underweight to the 20+ year has accelerated its plans to raise interest rates in 2022. Strong consumer balance key rates) detracted from relative returns. This was partially offset by the sheets and easy access to credit have supported consumer demand, but supply portfolio's below-benchmark duration position (76%9 of the Bloomberg chain bottlenecks and labor market frictions have constrained supply and propelled Agg's duration), which contributed to relative returns.

10 Prices higher. Asset allocation was negative as the portfolio's underweight to Treasuries The equity market appears to be fully valued. The fund 's equity portfolio and overweight to Agency MBS detracted from relative returns. continues to be very different from the market, trading at a meaningful discount to both the broad-based and value indices ( times forward earnings compared to 2021 Performance Review times for the S&P 500 and times for the R1000V).3 With the Russell 1000 The fund outperformed the Combined Index by percentage points in 2021. Growth Index trading at times forward earnings, the valuation gap between While the fund 's lower allocation to fixed income and higher allocation to equities value and growth stocks is exceptional and has widened further.