Fund Description

The fund invests in a diversified mix of equity and debt securities, normally holding 25%-75% of total assets in equities and at least 25% in fixed income. It may invest up to 30% in equity or debt of non-U.S. issuers not in the S&P 500 Index, including emerging markets, with no more than 10% in non-U.S. dollar-denominated securities, and may gain non-U.S. exposure indirectly through another Dodge & Cox-managed fund. Equity holdings may include common stock, depositary receipts, certain preferreds, convertibles, and rights or warrants. Fixed income may include government, mortgage- and asset-backed, corporate and municipal bonds, CMOs, other fixed and floating rate instruments, and cash equivalents; up to 10% may be below investment grade, with up to 5% below B3/B. The fund may invest in hybrid securities, including preferred stock, which may be classified as equity or debt depending on the specific structure and features of each security, and it may use equity options or total return swaps and futures referencing stock indices to create or hedge equity exposure; it may also use interest rate derivatives such as U.S. Treasury futures to manage duration or adjust maturity exposure, and currency forward contracts, currency swaps, or currency futures contracts to hedge currency exposure or currency risk.