N-Q 1 d245528dnq.htm FORM N-Q Form N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-173

DODGE & COX FUNDS

(Exact name of registrant as specified in charter)

555 California Street, 40th Floor

San Francisco, CA 94104

(Address of principal executive offices)

Thomas M. Mistele, Esq.

Secretary

555 California Street, 40th Floor

San Francisco, CA 94104

(Name and address of agent for service)

Registrant’s telephone number, including area code: 415-981-1710

Date of fiscal year end: December 31, 2011

Date of reporting period: September 30, 2011

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 


ITEM 1. SCHEDULE OF INVESTMENTS.

The following is the schedule of investments as of September 30, 2011 for the Dodge & Cox Funds, a Delaware statutory trust, consisting of five series: Dodge & Cox Stock Fund, Dodge & Cox Global Stock Fund, Dodge & Cox International Stock Fund, Dodge & Cox Balanced Fund, and Dodge & Cox Income Fund.


STOCK FUND

Portfolio of Investments (unaudited)

    September 30, 2011   

 

COMMON STOCKS: 99.3%  
    SHARES      VALUE  

CONSUMER DISCRETIONARY: 16.2%

  

CONSUMER DURABLES & APPAREL: 1.4%

  

Panasonic Corp. ADR(b) (Japan)

    18,095,474       $ 172,268,912   

Sony Corp. ADR(b) (Japan)

    15,633,650         297,039,350   
    

 

 

 
       469,308,262   

MEDIA: 12.1%

  

Comcast Corp., Class A

    57,830,397         1,208,655,297   

DISH Network Corp., Class A(a)

    8,497,907         212,957,550   

Liberty Global, Inc., Series A(a)

    753,210         27,251,138   

Liberty Global, Inc., Series C(a)

    983,053         34,023,464   

McGraw-Hill Companies, Inc.

    5,000,000         205,000,000   

News Corp., Class A

    59,318,426         917,656,050   

Time Warner Cable, Inc.

    8,811,410         552,211,065   

Time Warner, Inc.

    32,641,732         978,272,708   
    

 

 

 
         4,136,027,272   

RETAILING: 2.7%

  

CarMax, Inc.(a)

    4,729,200         112,791,420   

Home Depot, Inc.

    13,776,870         452,845,717   

Liberty Interactive, Series A(a)

    19,050,875         281,381,424   

Lowe’s Companies, Inc.

    4,600,000         88,964,000   
    

 

 

 
       935,982,561   
    

 

 

 
       5,541,318,095   
CONSUMER STAPLES: 3.0%   

FOOD & STAPLES RETAILING: 2.4%

  

Wal-Mart Stores, Inc.

    15,607,850         810,047,415   

FOOD, BEVERAGE & TOBACCO: 0.6%

  

Unilever PLC ADR(b) (United Kingdom)

    7,150,000         223,008,500   
    

 

 

 
       1,033,055,915   

ENERGY: 7.7%

    

Baker Hughes, Inc.

    10,380,750         479,175,420   

Chevron Corp.

    6,342,580         586,815,501   

Occidental Petroleum Corp.

    10,111,100         722,943,650   

Schlumberger, Ltd. (Curacao/United States)(b)

    14,067,445         840,248,490   
    

 

 

 
       2,629,183,061   
FINANCIALS: 18.6%   

BANKS: 6.0%

  

BB&T Corp.

    17,084,044         364,402,659   

HSBC Holdings PLC ADR(b) (United Kingdom)

    5,745,529         218,559,923   

SunTrust Banks, Inc.

    11,256,433         202,052,972   

Wells Fargo & Co.

    52,224,541         1,259,655,929   
    

 

 

 
       2,044,671,483   

DIVERSIFIED FINANCIALS: 10.8%

  

Bank of America Corp.

    77,600,000         474,912,000   

Bank of New York Mellon Corp.

    35,320,824         656,614,118   

Capital One Financial Corp.(c)

    30,180,911         1,196,069,503   

Charles Schwab Corp.

    47,011,200         529,816,224   

Credit Suisse Group AG ADR(b) (Switzerland)

    4,248,000         111,467,520   

Goldman Sachs Group, Inc.

    6,838,700         646,599,085   

Legg Mason, Inc.

    1,926,452         49,529,081   

SLM Corp.(c)

    1,925,919         23,977,692   
    

 

 

 
       3,688,985,223   

INSURANCE: 1.8%

    

AEGON NV(a),(b) (Netherlands)

    55,934,972         226,536,637   

Genworth Financial, Inc., Class A(a)

    22,302,457         128,016,103   

The Travelers Companies, Inc.

    5,546,450         270,278,508   
    

 

 

 
       624,831,248   
    

 

 

 
       6,358,487,954   
HEALTH CARE: 22.1%   

HEALTH CARE EQUIPMENT & SERVICES: 1.7%

  

Boston Scientific Corp.(a)

    62,465,500         369,171,105   

Medtronic, Inc.

    6,182,400         205,502,976   
    

 

 

 
       574,674,081   
    SHARES      VALUE  

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES: 20.4%

   

Amgen, Inc.

    18,070,700       $ 992,984,965   

Gilead Sciences, Inc.(a)

    2,719,048         105,499,062   

GlaxoSmithKline PLC ADR(b) (United Kingdom)

    24,290,800         1,002,967,132   

Merck & Co., Inc.

    37,226,100         1,217,665,731   

Novartis AG ADR(b) (Switzerland)

    18,314,600         1,021,405,242   

Pfizer, Inc.

    49,994,564         883,903,892   

Roche Holding AG ADR(b) (Switzerland)

    18,200,000         732,004,000   

Sanofi ADR(b) (France)

    31,697,129         1,039,665,831   
    

 

 

 
         6,996,095,855   
    

 

 

 
       7,570,769,936   
INDUSTRIALS: 6.4%   

CAPITAL GOODS: 3.6%

  

General Electric Co.

    64,796,075         987,492,183   

Tyco International, Ltd.(b) (Switzerland)

    5,892,275         240,110,206   
    

 

 

 
       1,227,602,389   

COMMERCIAL & PROFESSIONAL SERVICES: 0.6%

  

Dun & Bradstreet Corp.

    824,535         50,511,014   

Pitney Bowes, Inc.(c)

    8,308,800         156,205,440   
    

 

 

 
       206,716,454   

TRANSPORTATION: 2.2%

  

FedEx Corp.

    10,973,899         742,713,485   
    

 

 

 
       2,177,032,328   
INFORMATION TECHNOLOGY: 19.8%   

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 1.3%

  

Maxim Integrated Products, Inc.(c)

    19,266,400         449,485,112   

SOFTWARE & SERVICES: 10.3%

  

Adobe Systems, Inc.(a)

    6,400,000         154,688,000   

AOL, Inc.(a),(c)

    8,439,054         101,268,648   

BMC Software, Inc.(a)

    6,583,440         253,857,446   

Cadence Design Systems, Inc.(a),(c)

    19,448,500         179,704,140   

Computer Sciences Corp.(c)

    8,836,552         237,261,421   

Compuware Corp.(a),(c)

    15,838,112         121,319,938   

eBay, Inc.(a)

    24,279,100         715,990,659   

Electronic Arts, Inc.(a),(c)

    100,807         2,061,503   

Equinix, Inc.(a)

    705,200         62,642,916   

Microsoft Corp.

    31,900,000         793,991,000   

Symantec Corp.(a)

    34,109,200         555,979,960   

Synopsys, Inc.(a),(c)

    13,895,769         338,500,933   
    

 

 

 
       3,517,266,564   

TECHNOLOGY, HARDWARE & EQUIPMENT: 8.2%

  

Hewlett-Packard Co.

    58,113,295         1,304,643,473   

Molex, Inc.

    2,511,000         51,149,070   

Molex, Inc., Class A

    9,099,230         153,595,002   

Motorola Solutions, Inc.

    3,976,373         166,610,029   

Nokia Corp. ADR(b) (Finland)

    53,513,300         302,885,278   

TE Connectivity, Ltd.(b) (Switzerland)

    13,822,475         388,964,446   

Xerox Corp.

    62,009,582         432,206,787   
    

 

 

 
       2,800,054,085   
    

 

 

 
       6,766,805,761   

MATERIALS: 2.6%

  

Celanese Corp., Series A

    4,602,003         149,703,158   

Cemex SAB de CV ADR(a),(b) (Mexico)

    22,171,088         70,060,638   

Domtar Corp.

    685,249         46,713,424   

Dow Chemical Co.

    18,439,345         414,147,689   

Vulcan Materials Co.(c)

    7,942,625         218,898,745   
    

 

 

 
       899,523,654   
 

 

1 / Dodge & Cox Stock Fund  


Portfolio of Investments (unaudited)     September 30, 2011   

 

COMMON STOCKS (continued)  
    SHARES     VALUE  

TELECOMMUNICATION SERVICES: 2.9%

  

Sprint Nextel Corp.(a)

    135,934,139      $ 413,239,783   

Vodafone Group PLC ADR(b) (United Kingdom)

    23,053,900        591,332,535   
   

 

 

 
      1,004,572,318   
   

 

 

 

TOTAL COMMON STOCKS
(Cost $36,785,584,056)

      33,980,749,022   
SHORT-TERM INVESTMENTS: 0.9%  
    PAR VALUE     VALUE  

MONEY MARKET FUND: 0.1%

  

SSgA U.S. Treasury Money Market Fund

  $ 35,448,915      $ 35,448,915   

REPURCHASE AGREEMENT: 0.8%

  

Fixed Income Clearing Corporation(d)
0.01%, 10/3/11, maturity value $280,972,234

    280,972,000        280,972,000   
   

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $316,420,915)

   

    316,420,915   
   

 

 

 

TOTAL INVESTMENTS
(Cost $37,102,004,971)

    100.2     34,297,169,937   
   

 

 

 

OTHER ASSETS LESS LIABILITIES

    (0.2 %)      (51,857,484
 

 

 

   

 

 

 
NET ASSETS     100.0   $ 34,245,312,453   
 

 

 

   

 

 

 

 

(a)

Non-income producing

(b)

Security denominated in U.S. dollars

(c)

See Notes to Portfolio of Investments regarding holdings of 5% voting securities

(d)

Repurchase agreement is collateralized by Federal Farm Credit Bank 2.31%, 5/25/16; Freddie Mac 5.50%, 7/18/16; and U.S. Treasury Note 1.375%, 11/30/15. Total collateral value is $286,592,350.

In determining a company’s country designation, the Fund generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes, the Fund uses the country designation of an appropriate broad-based market index. In that circumstance, two countries are listed - the country of incorporation and the country designated by an appropriate index, respectively.

ADR: American Depositary Receipt

 

 

  Dodge & Cox Stock Fund / 2


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Security valuation. The Fund’s net assets are valued as of the close of trading on the New York Stock Exchange (NYSE), generally 4:00 p.m. Eastern Time, each day that the NYSE is open for business. Stocks are valued at the official quoted close price or the last sale of the day at the close of the NYSE or, if not available, at the mean between the exchange listed bid and ask prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Security values are not discounted based on the size of the Fund’s position. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees. Short-term securities are valued at amortized cost which approximates current value. All securities held by the Fund are denominated in U.S. dollars.

Valuation measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

§  

Level 1: Quoted prices in active markets for identical securities

§  

Level 2: Other significant observable inputs (including quoted prices for similar securities, market indices, interest rates, credit risk, etc.)

§  

Level 3: Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s holdings as of September 30, 2011:

 

Security Classification   LEVEL 1
(Quoted Prices)
       LEVEL 2
(Other Significant
Observable Inputs)
       LEVEL 3
(Significant
Unobservable Inputs)
 

Common Stocks(a)

  $ 33,980,749,022         $         $   

Short-term Investments

           

Money Market Fund

    35,448,915                       

Repurchase Agreement

              280,972,000             
 

 

 

      

 

 

      

 

 

 

Total

  $ 34,016,197,937         $ 280,972,000         $   
 

 

 

      

 

 

      

 

 

 
   

 

 

      

 

 

      

 

 

 
(a) 

All common stocks held in the Fund are Level 1 securities. For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments.

Security transactions. Security transactions are recorded on the trade date.

Income tax matters. At September 30, 2011, the cost of investments for federal income tax purposes was $37,157,121,761. Net unrealized depreciation aggregated $2,859,951,824, of which $3,791,974,582 represented appreciated securities and $6,651,926,406 represented depreciated securities.

 

 

3 / Dodge & Cox Stock Fund  


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Holdings of 5% voting securities. Each of the companies listed below is considered to be an affiliate of the Fund because the Fund owned 5% or more of the company’s voting securities during the nine-month period ended September 30, 2011. Transactions during the period in securities of affiliated companies were as follows:

 

     

Shares at

Beginning of Period

     Additions      Reductions    

Shares at 

End of Period

     Dividend
Income(a)
   

Value at

End of Period

 

AOL, Inc.

     7,585,522         893,132         (39,600     8,439,054         —  (b)      101,268,648   

Cadence Design Systems, Inc.

     23,069,000                 (3,620,500     19,448,500         —  (b)      179,704,140   

Capital One Financial Corp.

     31,947,811                 (1,766,900     30,180,911         4,672,137        1,196,069,503   

Computer Sciences Corp.

     6,661,900         2,220,052         (45,400     8,836,552         4,971,011        237,261,421   

Compuware Corp.

     20,885,512                 (5,047,400     15,838,112         —  (b)      121,319,938   

Electronic Arts, Inc.

     21,066,077                 (20,965,270     100,807         —  (b)      —  (c) 

Maxim Integrated Products, Inc.

     22,634,600                 (3,368,200     19,266,400         13,082,496        449,485,112   

Motorola Mobility Holdings Inc.(d)

             15,863,901         (15,863,901     —          —  (b)      —    

Pitney Bowes, Inc.

     10,192,550                 (1,883,750     8,308,800         10,607,179        —  (c) 

SLM Corp.

     25,945,682                 (24,019,763     1,925,919         3,791,931        —  (c) 

Synopsys, Inc.

     14,270,269                 (374,500     13,895,769         —  (b)      338,500,933   

Vulcan Materials Co.

     3,259,625         4,700,000         (17,000     7,942,625         4,738,709        218,898,745   
             

 

 

   

 

 

 
              $ 41,863,463      $ 2,842,508,440   
             

 

 

   

 

 

 
                                                     
(a) 

Net of foreign taxes, if any

(b) 

Non-income producing

(c) 

Company was not an affiliate at period end

(d) 

Spun-off from Motorola, Inc. on January 4, 2011.

Other. For more information please see the Fund’s most recent prospectus, summary prospectus, and annual report on the Fund’s website at www.dodgeandcox.com.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment 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 www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

 

 

  Dodge & Cox Stock Fund / 4


GLOBAL STOCK FUND

Portfolio of Investments (unaudited)

   
September 30, 2011
  

 

COMMON STOCKS: 95.9%  
     SHARES      VALUE  
CONSUMER DISCRETIONARY: 12.3%   

AUTOMOBILES & COMPONENTS: 1.9%

  

Bayerische Motoren Werke AG (Germany)

     102,400       $ 6,785,053   

Mahindra & Mahindra, Ltd. (India)

     400,300         6,527,353   

Yamaha Motor Co., Ltd.(a) (Japan)

     1,472,400         19,283,724   
     

 

 

 
        32,596,130   
CONSUMER DURABLES & APPAREL: 2.0%   

LG Electronics, Inc. (South Korea)

     184,800         10,569,460   

Li Ning Co., Ltd. (Cayman Islands/China)

     3,684,000         3,687,496   

Panasonic Corp. (Japan)

     1,568,700         15,161,751   

Sony Corp. (Japan)

     319,100         6,123,945   
     

 

 

 
        35,542,652   
MEDIA: 7.2%      

Comcast Corp., Class A (United States)

     1,130,600         23,629,540   

DISH Network Corp., Class A(a) (United States)

     326,300         8,177,078   

Grupo Televisa SA ADR (Mexico)

     934,100         17,178,099   

Naspers, Ltd. (South Africa)

     743,600         32,188,145   

News Corp., Class A (United States)

     642,445         9,938,624   

Television Broadcasts, Ltd. (Hong Kong)

     2,523,100         13,755,847   

Time Warner Cable, Inc. (United States)

     153,171         9,599,227   

Time Warner, Inc. (United States)

     412,466         12,361,606   
     

 

 

 
        126,828,166   

RETAILING: 1.2%

     

Home Depot, Inc. (United States)

     345,600         11,359,872   

Liberty Interactive, Series A(a) (United States)

     626,657         9,255,724   
     

 

 

 
        20,615,596   
     

 

 

 
        215,582,544   
CONSUMER STAPLES: 4.3%   

FOOD & STAPLES RETAILING: 1.5%

  

Wal-Mart Stores, Inc. (United States)

     522,400         27,112,560   

FOOD, BEVERAGE & TOBACCO: 2.8%

  

Anadolu Efes Biracilik ve Malt Sanayii AS (Turkey)

     1,602,600         18,454,190   

Diageo PLC ADR (United Kingdom)

     219,600         16,674,228   

Unilever PLC (United Kingdom)

     445,300         13,949,362   
     

 

 

 
        49,077,780   
     

 

 

 
        76,190,340   

ENERGY: 4.4%

     

Baker Hughes, Inc. (United States)

     128,387         5,926,344   

Chevron Corp. (United States)

     97,700         9,039,204   

OAO Lukoil ADR (Russia)

     31,600         1,590,791   

Occidental Petroleum Corp. (United States)

     209,525         14,981,038   

Royal Dutch Shell PLC ADR (United Kingdom)

     289,734         17,824,436   

Schlumberger, Ltd. (Curacao/United States)

     467,900         27,947,667   
     

 

 

 
        77,309,480   
FINANCIALS: 23.9%   

BANKS: 9.2%

  

Banco Santander SA (Spain)

     2,057,973         16,824,014   

Barclays PLC (United Kingdom)

     11,003,400         27,011,429   

BB&T Corp. (United States)

     736,700         15,713,811   

HSBC Holdings PLC (United Kingdom)

     2,568,162         19,572,844   

Mitsubishi UFJ Financial Group, Inc. (Japan)

     1,525,000         6,854,219   

Standard Bank Group, Ltd. (South Africa)

     649,200         7,439,947   

Standard Chartered PLC (United Kingdom)

     514,722         10,273,535   
     SHARES      VALUE  

SunTrust Banks, Inc. (United States)

     413,795       $ 7,427,620   

Unicredit SPA (Italy)

     9,182,333         9,771,588   

Wells Fargo & Co. (United States)

     1,717,773         41,432,685   
     

 

 

 
        162,321,692   

DIVERSIFIED FINANCIALS: 9.9%

  

Bank of America Corp. (United States)

     3,345,500         20,474,460   

Bank of New York Mellon Corp. (United States)

     1,648,700         30,649,333   

Capital One Financial Corp. (United States)

     731,900         29,005,197   

Charles Schwab Corp. (United States)

     2,362,900         26,629,883   

Credit Suisse Group AG (Switzerland)

     1,272,200         33,012,546   

Goldman Sachs Group, Inc. (United States)

     227,700         21,529,035   

Haci Omer Sabanci Holding AS (Turkey)

     3,344,188         11,635,553   
     

 

 

 
        172,936,007   

INSURANCE: 3.9%

     

AEGON NV(a) (Netherlands)

     6,354,374         25,617,668   

Dai-ichi Life Insurance Co., Ltd. (Japan)

     9,585         9,902,740   

Swiss Life Holding AG (Switzerland)

     70,600         7,716,828   

Swiss Re AG (Switzerland)

     545,300         25,379,376   
     

 

 

 
        68,616,612   

REAL ESTATE: 0.9%

     

BR Malls Participacoes SA (Brazil)

     963,600         9,844,838   

Hang Lung Group, Ltd. (Hong Kong)

     1,327,500         6,750,450   
     

 

 

 
        16,595,288   
     

 

 

 
        420,469,599   
HEALTH CARE: 18.9%   

HEALTH CARE EQUIPMENT & SERVICES: 0.8%

  

Boston Scientific Corp.(a) (United States)

     1,120,200         6,620,382   

Medtronic, Inc. (United States)

     221,200         7,352,688   
     

 

 

 
        13,973,070   

PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES: 18.1%

   

Amgen, Inc. (United States)

     606,100         33,305,195   

Bayer AG (Germany)

     494,520         27,176,831   

Gilead Sciences, Inc.(a) (United States)

     230,000         8,924,000   

GlaxoSmithKline PLC ADR (United Kingdom)

     883,100         36,463,199   

GlaxoSmithKline PLC (United Kingdom)

     194,800         4,021,934   

Merck & Co., Inc. (United States)

     1,434,600         46,925,766   

Novartis AG ADR (Switzerland)

     609,700         34,002,969   

Novartis AG (Switzerland)

     98,800         5,513,984   

Pfizer, Inc. (United States)

     856,300         15,139,384   

Roche Holding AG (Switzerland)

     338,800         54,506,720   

Sanofi (France)

     784,862         51,533,301   
     

 

 

 
        317,513,283   
     

 

 

 
        331,486,353   
INDUSTRIALS: 6.3%   

CAPITAL GOODS: 5.1%

  

General Electric Co. (United States)

     2,200,300         33,532,572   

Koninklijke Philips Electronics NV (Netherlands)

     983,719         17,609,252   

Mitsubishi Electric Corp. (Japan)

     1,628,700         14,424,430   

Schneider Electric SA (France)

     154,778         8,333,022   

Tyco International, Ltd. (Switzerland)

     189,900         7,738,425   

Wienerberger AG (Austria)

     639,480         7,478,316   
     

 

 

 
        89,116,017   

TRANSPORTATION: 1.2%

  

FedEx Corp. (United States)

     305,100         20,649,168   
     

 

 

 
        109,765,185   
 

 

1/ Dodge & Cox Global Stock Fund  


Portfolio of Investments (unaudited)     September 30, 2011   

 

COMMON STOCKS (continued)  
    SHARES      VALUE  

INFORMATION TECHNOLOGY: 13.1%

  

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 0.4%

  

Maxim Integrated Products, Inc. (United States)

    344,000       $ 8,025,520   

SOFTWARE & SERVICES: 6.3%

    

AOL, Inc.(a) (United States)

    847,869         10,174,428   

EBay, Inc.(a) (United States)

    515,900         15,213,891   

Microsoft Corp. (United States)

    1,699,700         42,305,533   

Nintendo Co., Ltd. (Japan)

    139,300         20,290,192   

Symantec Corp.(a) (United States)

    756,600         12,332,580   

Synopsys, Inc.(a) (United States)

    416,800         10,153,248   
    

 

 

 
     110,469,872   

TECHNOLOGY, HARDWARE & EQUIPMENT: 6.4%

  

Hewlett-Packard Co. (United States)

    2,409,500         54,093,275   

Nokia Oyj (Finland)

    5,250,425         29,740,596   

TE Connectivity, Ltd. (Switzerland)

    484,115         13,622,996   

Telefonaktiebolaget LM Ericsson (Sweden)

    702,188         6,728,096   

Xerox Corp. (United States)

    1,163,000         8,106,110   
    

 

 

 
     112,291,073   
    

 

 

 
     230,786,465   

MATERIALS: 4.6%

    

Akzo Nobel NV (Netherlands)

    250,550         11,076,284   

Celanese Corp., Series A (United States)

    390,200         12,693,206   

Cemex SAB de CV ADR(a) (Mexico)

    2,012,442         6,359,317   

Domtar Corp. (United States)

    138,416         9,435,819   

Dow Chemical Co. (United States)

    367,600         8,256,296   

Duratex SA (Brazil)

    1,816,600         8,318,535   

Lafarge SA (France)

    519,208         17,874,407   

Norsk Hydro ASA (Norway)

    1,417,511         6,440,271   
    

 

 

 
     80,454,135   

TELECOMMUNICATION SERVICES: 8.1%

  

America Movil SAB de CV, Series L (Mexico)

    16,935,400         18,695,743   

MTN Group, Ltd. (South Africa)

    1,455,100         23,806,720   

PT Telekomunikasi Indonesia TBK ADR (Indonesia)

    718,200         23,750,874   

Telecom Italia SPA-RSP (Italy)

    25,855,800         25,119,728   

Telefonica SA (Spain)

    534,300         10,243,227   

Telekom Austria AG (Austria)

    857,533         8,651,267   

Vodafone Group PLC ADR (United Kingdom)

    1,222,700         31,362,255   
    

 

 

 
     141,629,814   
    

 

 

 

TOTAL COMMON STOCKS
(Cost $1,903,835,608)

   

     1,683,673,915   
PREFERRED STOCKS: 1.3%               
ENERGY: 1.3%     

Petroleo Brasileiro SA ADR (Brazil)

    640,500         13,271,160   

Ultrapar Participacoes SA ADR (Brazil)

    591,200         9,358,696   
    

 

 

 

TOTAL PREFERRED STOCKS
(Cost $22,306,117)

   

     22,629,856   
             
SHORT-TERM INVESTMENTS: 3.0%  
    PAR VALUE     VALUE  
MONEY MARKET FUND: 0.1%     

SSgA U.S. Treasury Money Market Fund

  $ 1,804,595      $ 1,804,595   
REPURCHASE AGREEMENT: 2.9%   

Fixed Income Clearing Corporation(b) 0.01%, 10/3/11, maturity value $50,713,042

    50,713,000        50,713,000   
    SHARES     VALUE  

TOTAL SHORT-TERM INVESTMENTS
(Cost $52,517,595)

   

  $ 52,517,595   
   

 

 

 

TOTAL INVESTMENTS
(Cost $1,978,659,320)

    100.2     1,758,821,366   

OTHER ASSETS LESS LIABILITIES

    (0.2 %)      (2,841,120
 

 

 

   

 

 

 
NET ASSETS     100.0   $ 1,755,980,246   
 

 

 

   

 

 

 

 

(a)

Non-income producing

(b)

Repurchase agreement is collateralized by Freddie Mac 1.45-1.50%, 9/2/2016. Total collateral value is $51,730,355.

In determining a company’s country designation, the Fund generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes, the Fund uses the country designation of an appropriate broad-based market index. In that circumstance, two countries are listed - the country of incorporation and the country designated by an appropriate index, respectively.

ADR: American Depositary Receipt

Forward Foreign Currency Contracts

As of September 30, 2011, open forward foreign currency contracts are summarized as follows:

 

        Contract Amount        
Counterparty   Settlement
Date
  Receive
(USD)
    Deliver
(CHF)
    Unrealized
Appreciation
 
Contracts to sell Swiss Franc:       

Deutsche Bank

  11/2/2011     5,085,177        4,000,000      $ 669,699   

Barclays

  11/9/2011     5,124,756        4,000,000        708,663   

UBS

  11/9/2011     5,014,185        3,800,000        818,897   

Citibank

  11/16/2011     4,201,184        3,200,000        667,808   

JPMorgan Chase

  11/16/2011     4,404,437        3,200,000        871,061   

HSBC

  11/30/2011     3,982,130        3,200,000        447,749   
       

 

 

 
        $ 4,183,877   
       

 

 

 
                       

 

 

 

Currency Abbreviations

CHF—Swiss Franc

USD—U.S. Dollar

 

 

  Dodge & Cox Global Stock Fund / 2


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Security valuation. The Fund’s net assets are valued as of the close of trading on the New York Stock Exchange (NYSE), generally 4:00 p.m. Eastern Time, each day that the NYSE is open for business. Listed securities are valued at market, using the official quoted close price or the last sale on the date of determination on the principal exchange on which such securities are traded or, if not available, at the mean between the exchange listed bid and ask prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Security values are not discounted based on the size of the Fund’s position. Short-term securities are valued at amortized cost which approximates current value. Forward foreign currency contracts are valued based on the applicable exchange rate of the underlying currency.

The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date.

If market quotations are not readily available or if a security’s value has materially changed after the close of the security’s primary market but before the close of trading on the NYSE, the security is valued at fair value as determined in good faith by or under the direction of the Board of Trustees. The Fund may use fair value pricing in calculating its net asset value (NAV) when, for example, (i) the primary market for a security is closed or if trading of a security is suspended or limited, (ii) the Fund determines that the price provided by a pricing service is inaccurate or unreliable, or (iii) the Fund determines that a significant event affecting the value of a security has occurred before the close of the NYSE but after the close of the security’s primary market. An event is considered significant if there is both an affirmative expectation that the security’s value will materially change in response to the event and a reasonable basis for quantifying a resulting change in value. Because trading in securities on most foreign exchanges is normally completed before the close of the NYSE, the value of foreign securities can change by the time the Fund calculates its NAV. To address these changes, the Fund may utilize adjustment factors provided by a pricing service to systematically value foreign securities at fair value. These adjustment factors are based on statistical analyses of subsequent movements and changes in securities indices, specific security prices, and exchange rates in foreign markets. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. In addition, fair values may not reflect the price that the Fund could obtain for a security if it were to dispose of that security at the time of pricing.

 

3 / Dodge & Cox Global Stock Fund  


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Valuation measurements. Various inputs are used in determining the value of the Fund’s investments and other financial instruments. These inputs are summarized in the three broad levels listed below.

§  

Level 1: Quoted prices in active markets for identical securities

§  

Level 2: Other significant observable inputs (including quoted prices for similar securities, market indices, interest rates, credit risk, etc.)

§  

Level 3: Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s holdings as of September 30, 2011:

 

Classification(a)   LEVEL 1
(Quoted Prices)
       LEVEL 2
(Other Significant
Observable Inputs)
       LEVEL 3
(Significant
Unobservable Inputs)
 

Securities

           

Common Stocks

           

Consumer Discretionary

  $ 101,499,770         $ 114,082,774         $   

Consumer Staples

    43,786,788           32,403,552             

Energy

    75,718,689           1,590,791             

Financials

    202,706,862           217,762,737             

Health Care

    188,733,583           142,752,770             

Industrials

    61,920,165           47,845,020             

Information Technology

    174,027,581           56,758,884             

Materials

    45,063,173           35,390,962             

Telecommunication Services

    73,808,872           67,820,942             

Preferred Stocks

           

Energy

    22,629,856                       

Short-term Investments

           

Money Market fund

    1,804,595                       

Repurchase Agreement

              50,713,000             
 

 

 

      

 

 

      

 

 

 

Total Securities

  $ 991,699,934         $ 767,121,432         $   
 

 

 

      

 

 

      

 

 

 

Other Financial Instruments

           

Forward Foreign Currency Contracts

  $ 4,183,877 (b)       $         $  —   
 

 

 

      

 

 

      

 

 

 
   

 

 

      

 

 

      

 

 

 
(a) 

Transfers between Level 1 and Level 2 relate to the use of systematic fair valuation. On days when systematic fair valuation is used, securities whose primary market closes before the NYSE move from a Level 1 to Level 2 classification.

(b) 

Represents net unrealized appreciation on forward foreign currency contracts.

Security transactions. Security transactions are recorded on the trade date.

Income tax matters. At September 30, 2011, the cost of investments for federal income tax purposes was $1,981,880,581. Net unrealized depreciation aggregated $223,059,215, of which $113,525,159 represented appreciated securities and $336,584,374 represented depreciated securities.

Other. For more information please see the Fund’s most recent prospectus, summary prospectus, and annual report on the Fund’s website at www.dodgeandcox.com.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment 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 www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

 

  Dodge & Cox Global Stock Fund / 4


INTERNATIONAL STOCK FUND

Portfolio of Investments (unaudited)

    September 30, 2011   

 

COMMON STOCKS: 96.3%  
     SHARES      VALUE  
CONSUMER DISCRETIONARY: 13.6%   

AUTOMOBILES & COMPONENTS: 3.7%

  

Bayerische Motoren Werke AG (Germany)

     7,471,400       $ 495,057,075   

Honda Motor Co., Ltd. ADR (Japan)

     6,808,400         198,464,860   

Mahindra & Mahindra, Ltd. (India)

     3,414,447         55,676,500   

NGK Spark Plug Co., Ltd.(b) (Japan)

     16,720,000         226,362,703   

Yamaha Motor Co., Ltd.(a),(b) (Japan)

     27,230,000         356,625,779   
     

 

 

 
        1,332,186,917   

CONSUMER DURABLES & APPAREL: 2.7%

  

Corporacion Geo SAB de CV, Series B(a),(b) (Mexico)

     50,305,400         65,037,969   

LG Electronics, Inc. (South Korea)

     6,117,487         349,883,843   

Li Ning Co., Ltd. (Cayman Islands/China)

     11,424,900         11,435,742   

Panasonic Corp. (Japan)

     31,193,072         301,486,327   

Sony Corp. (Japan)

     11,142,600         213,841,003   

Woongjin Coway Co., Ltd. (South Korea)

     328,420         10,391,004   
     

 

 

 
        952,075,888   

CONSUMER SERVICES: 0.3%

  

Accor SA (France)

     4,549,901         121,105,033   

MEDIA: 6.9%

     

Grupo Televisa SA ADR (Mexico)

     26,480,592         486,978,087   

Liberty Global, Inc., Series A(a) (United States)

     2,981,805         107,881,705   

Liberty Global, Inc., Series C(a) (United States)

     3,534,971         122,345,347   

Naspers, Ltd.(b) (South Africa)

     27,610,895         1,195,190,283   

News Corp., Class A (United States)

     22,512,792         348,272,892   

Television Broadcasts, Ltd.(b) (Hong Kong)

     35,013,100         190,890,118   
     

 

 

 
        2,451,558,432   
     

 

 

 
        4,856,926,270   

CONSUMER STAPLES: 2.9%

  

FOOD, BEVERAGE & TOBACCO: 2.8%

  

Anadolu Efes Biracilik ve Malt Sanayii AS(b) (Turkey)

     25,888,440         298,109,440   

Diageo PLC ADR (United Kingdom)

     3,571,000         271,146,030   

Unilever PLC (United Kingdom)

     14,050,000         440,126,977   
     

 

 

 
        1,009,382,447   

HOUSEHOLD & PERSONAL PRODUCTS: 0.1%

  

Aderans Co., Ltd.(a),(b) (Japan)

     3,437,000         31,864,564   
     

 

 

 
        1,041,247,011   

ENERGY: 5.1%

  

OAO Lukoil ADR (Russia)

     1,705,424         85,853,602   

Royal Dutch Shell PLC ADR (United Kingdom)

     13,171,339         810,300,775   

Schlumberger, Ltd. (Curacao/United States)

     10,312,217         615,948,722   

Total SA (France)

     7,108,600         313,422,939   
     

 

 

 
        1,825,526,038   

FINANCIALS: 19.6%

  

BANKS: 12.0%

  

Banco Santander SA (Spain)

     41,673,667         340,683,936   

Bank of Yokohama, Ltd. (Japan)

     36,648,500         183,605,498   

Barclays PLC (United Kingdom)

     157,046,985         385,522,978   

Erste Group Bank AG (Austria)

     3,700,000         94,309,174   

Grupo Financiero Banorte SAB de CV (Mexico)

     31,528,000         93,185,087   

HSBC Holdings PLC (United Kingdom)

     106,654,921         812,853,757   

ICICI Bank, Ltd. (India)

     2,844,243         49,988,928   

Kasikornbank PCL Foreign (Thailand)

     94,062,627         353,283,873   

Mitsubishi UFJ Financial Group, Inc. (Japan)

     58,099,900         261,134,066   

Standard Bank Group, Ltd. (South Africa)

     48,129,417         551,571,631   
     SHARES      VALUE  

Standard Chartered PLC (United Kingdom)

     24,852,887       $ 496,048,350   

Unicredit SPA (Italy)

     295,864,430         314,850,843   

Yapi ve Kredi Bankasi AS(a) (Turkey)

     155,779,068         344,329,663   
     

 

 

 
        4,281,367,784   

DIVERSIFIED FINANCIALS: 2.6%

  

Credit Suisse Group AG (Switzerland)

     21,203,000         550,200,446   

Deutsche Boerse AG (Germany)

     2,000,000         100,431,624   

Haci Omer Sabanci Holding AS (Turkey)

     83,789,354         291,531,315   
     

 

 

 
        942,163,385   

INSURANCE: 3.4%

  

AEGON NV(a) (Netherlands)

     80,206,949         323,354,438   

Dai-ichi Life Insurance Co., Ltd. (Japan)

     144,193         148,972,958   

Swiss Life Holding AG (Switzerland)

     1,520,000         166,141,334   

Swiss Re AG (Switzerland)

     12,091,868         562,780,230   
     

 

 

 
        1,201,248,960   

REAL ESTATE: 1.6%

  

BR Malls Participacoes SA(b) (Brazil)

     20,979,100         214,337,727   

Hang Lung Group, Ltd. (Hong Kong)

     52,357,500         266,242,345   

Hang Lung Properties, Ltd. (Hong Kong)

     31,964,000         94,498,426   
     

 

 

 
        575,078,498   
     

 

 

 
        6,999,858,627   

HEALTH CARE: 16.9%

  

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES: 16.9%

   

Bayer AG (Germany)

     15,775,350         866,949,816   

GlaxoSmithKline PLC (United Kingdom)

     11,000,000         227,111,271   

GlaxoSmithKline PLC ADR (United Kingdom)

     26,813,749         1,107,139,696   

Novartis AG (Switzerland)

     1,100,000         61,390,505   

Novartis AG ADR (Switzerland)

     18,650,000         1,040,110,500   

Roche Holding AG (Switzerland)

     9,330,400         1,501,090,605   

Sanofi (France)

     19,054,120         1,251,075,617   
     

 

 

 
        6,054,868,010   

INDUSTRIALS: 8.5%

  

CAPITAL GOODS: 7.3%

  

Koninklijke Philips Electronics NV (Netherlands)

     38,772,099         694,047,469   

Mitsubishi Electric Corp. (Japan)

     88,689,800         785,472,941   

Nexans SA(b) (France)

     1,391,332         80,819,872   

Nidec Corp. (Japan)

     2,707,700         217,818,750   

Schneider Electric SA (France)

     7,321,246         394,165,206   

Tyco International, Ltd. (Switzerland)

     7,589,020         309,252,565   

Wienerberger AG(b) (Austria)

     11,254,341         131,612,438   
     

 

 

 
        2,613,189,241   

COMMERCIAL & PROFESSIONAL SERVICES: 0.7%

  

Edenred SA (France)

     4,637,237         110,250,662   

Experian PLC (United Kingdom)

     12,762,212         143,577,592   
     

 

 

 
        253,828,254   

TRANSPORTATION: 0.5%

  

DP World, Ltd. (United Arab Emirates)

     5,301,590         54,129,234   

PostNL NV(a) (Netherlands)

     7,546,440         33,045,946   

TNT Express NV (Netherlands)

     13,341,376         92,053,596   
     

 

 

 
        179,228,776   
     

 

 

 
        3,046,246,271   

INFORMATION TECHNOLOGY: 13.1%

  

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 1.3%

  

Infineon Technologies AG(b) (Germany)

     63,794,266         469,809,905   

SOFTWARE & SERVICES: 1.5%

  

Nintendo Co., Ltd. (Japan)

     3,630,000         528,739,394   

TECHNOLOGY, HARDWARE & EQUIPMENT: 10.3%

  

Alcatel-Lucent(a) (France)

     32,259,072         92,235,711   

Brother Industries, Ltd.(b) (Japan)

     22,885,100         268,233,603   
 

 

1 / Dodge & Cox International Stock Fund  


Portfolio of Investments (unaudited)     September 30, 2011   

 

COMMON STOCKS (continued)               
    SHARES      VALUE  

Fujifilm Holdings Corp. (Japan)

    17,204,700         399,327,528   

Fujitsu, Ltd.(b) (Japan)

    100,723,000       $ 474,492,608   

Fujifilm Holdings Corp. (Japan)

    17,204,700         399,327,528   

Hewlett-Packard Co. (United States)

    15,380,000         345,281,000   

Kyocera Corp. (Japan)

    6,433,900         537,458,271   

Nokia Oyj (Finland)

    136,229,200         771,658,966   

TE Connectivity, Ltd. (Switzerland)

    10,527,617         296,247,142   

Telefonaktiebolaget LM Ericsson
(Sweden)

    51,322,200         491,749,651   
    

 

 

 
       3,676,684,480   
    

 

 

 
       4,675,233,779   

MATERIALS: 5.3%

    

Akzo Nobel NV (Netherlands)

    1,578,975         69,803,137   

BHP Billiton PLC (United Kingdom)

    18,306,000         485,071,890   

Cemex SAB de CV ADR(a) (Mexico)

    34,101,721         107,761,438   

Duratex SA (Brazil)

    15,860,246         72,626,894   

Lafarge SA(b) (France)

    16,204,291         557,853,659   

Lanxess AG(b) (Germany)

    4,839,784         232,646,623   

Linde AG (Germany)

    1,180,205         157,406,999   

Norsk Hydro ASA (Norway)

    43,768,193         198,854,922   
    

 

 

 
       1,882,025,562   

TELECOMMUNICATION SERVICES: 11.2%

  

America Movil SAB de CV, Series L (Mexico)

    357,500,000         394,660,182   

Bharti Airtel, Ltd. (India)

    22,038,469         167,689,637   

Millicom International Cellular SA SDR (Luxembourg)

    3,077,494         308,204,826   

MTN Group, Ltd. (South Africa)

    39,020,300         638,406,540   

PT Telekomunikasi Indonesia TBK ADR (Indonesia)

    15,472,359         511,670,912   

Telecom Italia SPA (Italy)

    201,500,000         218,799,011   

Telecom Italia SPA-RSP (Italy)

    189,001,309         183,620,755   

Telefonica SA (Spain)

    14,332,200         274,766,950   

Telekom Austria AG (Austria)

    12,767,576         128,806,356   

Vodafone Group PLC ADR (United Kingdom)

    46,830,000         1,201,189,500   
    

 

 

 
       4,027,814,669   

UTILITIES: 0.1%

    

ENN Energy Holdings, Ltd. (Cayman Islands/China)

    7,041,100         22,914,823   
    

 

 

 

TOTAL COMMON STOCKS
(Cost $40,986,936,197)

       34,432,661,060   
PREFERRED STOCKS: 1.8%  

ENERGY: 1.8%

    

Petroleo Brasileiro SA ADR (Brazil)

    13,553,100         280,820,232   

Ultrapar Participacoes SA ADR (Brazil)

    23,059,328         365,029,162   
    

 

 

 

TOTAL PREFERRED STOCKS
(Cost $327,833,892)

       645,849,394   
SHORT-TERM INVESTMENTS: 1.4%  
    PAR VALUE      VALUE  

MONEY MARKET FUND: 0.1%

  

SSgA U.S. Treasury Money Market Fund

  $ 36,715,029         36,715,029   

REPURCHASE AGREEMENT: 1.3%

  

  

Fixed Income Clearing Corporation(c) 0.01%, 10/3/11, maturity value $464,184,387

    464,184,000         464,184,000   

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $500,899,029)

   

    500,899,029   
    

 

 

 

TOTAL INVESTMENTS
(Cost $41,815,669,118)

     99.5     35,579,409,483   

OTHER ASSETS LESS LIABILITIES

     0.5     189,205,438   
  

 

 

   

 

 

 
NET ASSETS      100.0   $ 35,768,614,921   
  

 

 

   

 

 

 

 

(a)

Non-income producing

(b)

See Notes to Portfolio of Investments regarding holdings of 5% voting securities

(c)

Repurchase agreement is collateralized by Fannie Mae 1.25%, 9/28/16; Freddie Mac 1.55%-5.125%, 9/2/16-11/17/17; and U.S. Treasury Note 2.75%, 11/30/16. Total collateral value is $473,467,869.

In determining a company’s country designation, the Fund generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes, the Fund uses the country designation of an appropriate broad-based market index. In that circumstance, two countries are listed - the country of incorporation and the country designated by an appropriate index, respectively.

ADR: American Depositary Receipt

NVDR: Non-Voting Depositary Receipt

SDR: Swedish Depository Receipt

Forward Foreign Currency Contracts

As of September 30, 2011, open forward foreign currency contracts are summarized as follows:

 

             Contract Amount         
Counterparty    Settlement
Date
    

Receive

(USD)

    

Deliver

(CHF)

     Unrealized
Appreciation
 

Contracts to sell Swiss Franc:

  

  

Deutsche Bank

     11/2/2011         114,416,476         90,000,000       $ 15,068,222   

Barclays

     11/9/2011         111,463,438         87,000,000         15,413,419   

UBS

     11/9/2011         112,159,398         85,000,000         18,317,426   

Citibank

     11/16/2011         112,906,826         86,000,000         17,947,337   

JPMorgan Chase

     11/16/2011         97,723,456         71,000,000         19,326,669   

HSBC

     11/30/2011         107,019,749         86,000,000         12,033,261   
           

 

 

 
            $ 98,106,334   
           

 

 

 
                               

 

 

 

Currency Abbreviations

CHF—Swiss Franc

USD—U.S. Dollar

 

 

  Dodge & Cox International Stock Fund / 2


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Security valuation. The Fund’s net assets are valued as of the close of trading on the New York Stock Exchange (NYSE), generally 4:00 p.m. Eastern Time, each day that the NYSE is open for business. Listed securities are valued at market, using the official quoted close price or the last sale on the date of determination on the principal exchange on which such securities are traded or, if not available, at the mean between the exchange listed bid and ask prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Security values are not discounted based on the size of the Fund’s position. Short-term securities are valued at amortized cost which approximates current value. Forward foreign currency contracts are valued based on the applicable exchange rate of the underlying currency.

The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date.

If market quotations are not readily available or if a security’s value has materially changed after the close of the security’s primary market but before the close of trading on the NYSE, the security is valued at fair value as determined in good faith by or under the direction of the Board of Trustees. The Fund may use fair value pricing in calculating its net asset value (NAV) when, for example, (i) the primary market for a security is closed or if trading of a security is suspended or limited, (ii) the Fund determines that the price provided by a pricing service is inaccurate or unreliable, or (iii) the Fund determines that a significant event affecting the value of a security has occurred before the close of the NYSE but after the close of the security’s primary market. An event is considered significant if there is both an affirmative expectation that the security’s value will materially change in response to the event and a reasonable basis for quantifying a resulting change in value. Because trading in securities on most foreign exchanges is normally completed before the close of the NYSE, the value of foreign securities can change by the time the Fund calculates its NAV. To address these changes, the Fund may utilize adjustment factors provided by a pricing service to systematically value foreign securities at fair value. These adjustment factors are based on statistical analyses of subsequent movements and changes in securities indices, specific security prices, and exchange rates in foreign markets. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. In addition, fair values may not reflect the price that the Fund could obtain for a security if it were to dispose of that security at the time of pricing.

 

3 / Dodge & Cox International Stock Fund


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Valuation measurements. Various inputs are used in determining the value of the Fund’s investments and other financial instruments. These inputs are summarized in the three broad levels listed below.

§  

Level 1: Quoted prices in active markets for identical securities

§  

Level 2: Other significant observable inputs (including quoted prices for similar securities, market indices, interest rates, credit risk, etc.)

§  

Level 3: Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s holdings as of September 30, 2011:

 

Classification(a)   LEVEL 1
(Quoted Prices)
       LEVEL 2
(Other Significant
Observable Inputs)
       LEVEL 3
(Significant
Unobservable Inputs)
 

Securities

           

Common Stocks

           

Consumer Discretionary

  $ 1,328,980,860         $ 3,527,945,410             

Consumer Staples

    271,146,030           770,100,981             

Energy

    1,426,249,497           399,276,541             

Financials

    307,522,814           6,692,335,813             

Health Care

    2,147,250,196           3,907,617,814             

Industrials

    363,381,799           2,682,864,472             

Information Technology

    641,528,142           4,033,705,637             

Materials

    180,388,332           1,701,637,230             

Telecommunication Services

    2,107,520,594           1,920,294,075             

Utilities

              22,914,823             

Preferred Stocks

           

Energy

    645,849,394                       

Short-term Investments

           

Money Market Fund

    36,715,029                       

Repurchase Agreement

              464,184,000        
 

 

 

      

 

 

      

 

 

 

Total Securities

  $ 9,456,532,687         $  26,122,876,796         $  —   
 

 

 

      

 

 

      

 

 

 

Other Financial Instruments

                          

Forward Foreign Currency Contracts

  $ 98,106,334 (b)       $         $   
 

 

 

      

 

 

      

 

 

 
   

 

 

      

 

 

      

 

 

 
(a) 

Transfers during the period between Level 1 and Level 2 relate to the use of systematic fair valuation. On days when systematic fair valuation is used, securities whose primary market closes before the NYSE move from a Level 1 to Level 2 classification.

(b) 

Represents net unrealized appreciation on forward foreign currency contracts.

Security transactions. Security transactions are recorded on the trade date.

Income tax matters. At September 30, 2011, the cost of investments for federal income tax purposes was $41,963,397,159. Net unrealized depreciation aggregated $6,383,987,676, of which $3,556,962,096 represented appreciated securities and $9,940,949,772 represented depreciated securities.

 

  Dodge & Cox International Stock Fund / 4


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Holdings of 5% voting securities. Each of the companies listed below is considered to be an affiliate of the Fund because the Fund owned 5% or more of the company’s voting securities during the nine-month period ended September 30, 2011. Transactions during the period in securities of affiliated companies were as follows:

 

     

Shares at
Beginning of Period

     Additions      Reductions    

Shares at

End of Period

     Dividend
Income(a)
   

Value at

End of Period

 

Aderans Co., Ltd(d) (Japan)

     3,437,000                        3,437,000         —  (b)      31,864,564   

Anadolu Efes Biracilik ve Malt Sanayii AS (Turkey)

     26,256,443                 (368,003     25,888,440         6,578,323        298,109,440   

Arkema (France)

     3,066,687                 (3,066,687                      

BR Malls Participacoes SA (Brazil)

     18,000,000         4,829,100         (1,850,000     20,979,100         2,400,433        —  (c) 

Brother Industries, Ltd. (Japan)

     23,001,000                 (115,900     22,885,100         6,455,670        268,233,603   

Corporacion Geo SAB de CV, Series B (Mexico)

     47,305,400         3,000,000                50,305,400         —  (b)      65,037,969   

Fujitsu, Ltd. (Japan)

     88,808,000         14,915,000         (3,000,000     100,723,000         11,625,805        —  (c) 

Infineon Technologies AG (Germany)

     94,036,576                 (30,242,310     63,794,266         12,823,770        469,809,905   

Lafarge SA (France)

     12,774,291         3,430,000                16,204,291         16,152,126        557,853,659   

Lanxess AG (Germany)

     5,745,092                 (905,308     4,839,784         4,332,911        232,646,623   

Naspers, Ltd. (South Africa)

     31,680,895                 (4,070,000     27,610,895         9,677,155        1,195,190,283   

Nexans SA (France)

     1,726,461         46,158         (381,287     1,391,332         2,130,960        —  (c) 

NGK Spark Plug Co., Ltd. (Japan)

     7,306,200         9,413,800                16,720,000         3,790,796        226,362,703   

Television Broadcasts, Ltd. (Hong Kong)

     27,299,300         7,713,800                35,013,100         9,348,893        190,890,118   

Wienerberger AG (Austria)

     12,335,026                 (1,080,685     11,254,341         1,377,134        131,612,438   

Yamaha Motor Co., Ltd. (Japan)

     27,230,000                        27,230,000         —  (b)      356,625,779   
             

 

 

   

 

 

 
              $ 86,693,976      $ 4,024,237,084   
             

 

 

   

 

 

 
                                                     
(a) 

Net of foreign taxes, if any

(b) 

Non-income producing

(c) 

Company was not an affiliate at period end

(d) 

Name changed from Unihair Co., Ltd. on July 1, 2011.

Other. For more information please see the Fund’s most recent prospectus, summary prospectus, and annual report on the Fund’s website at www.dodgeandcox.com.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment 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 www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

 

5 / Dodge & Cox International Stock Fund


BALANCED FUND

Portfolio of Investments (unaudited)

   
September 30,2011
  

 

COMMON STOCKS: 73.4%               
    SHARES      VALUE  
CONSUMER DISCRETIONARY: 11.8%   

CONSUMER DURABLES & APPAREL: 1.0%

  

  

Panasonic Corp. ADR(b) (Japan)

    4,378,128       $ 41,679,779   

Sony Corp. ADR(b) (Japan)

    4,035,325         76,671,175   
    

 

 

 
       118,350,954   

MEDIA: 8.8%

  

Comcast Corp., Class A

    14,843,974         310,239,056   

DISH Network Corp., Class A(a)

    2,383,682         59,735,071   

Liberty Global, Inc., Series A(a)

    158,521         5,735,290   

Liberty Global, Inc., Series C(a)

    232,368         8,042,256   

McGraw-Hill Companies, Inc.

    1,555,337         63,768,817   

News Corp., Class A

    14,688,000         227,223,360   

Time Warner Cable, Inc.

    2,118,883         132,790,398   

Time Warner, Inc.

    7,738,466         231,921,826   
    

 

 

 
       1,039,456,074   

RETAILING: 2.0%

  

CarMax, Inc.(a)

    1,181,000         28,166,850   

Home Depot, Inc.

    3,696,692         121,510,266   

Liberty Interactive, Series A(a)

    4,109,650         60,699,531   

Lowe’s Companies, Inc.

    1,247,804         24,132,529   
    

 

 

 
       234,509,176   
    

 

 

 
       1,392,316,204   
CONSUMER STAPLES: 2.3%   

FOOD & STAPLES RETAILING: 1.8%

  

Wal-Mart Stores, Inc.

    4,195,600         217,751,640   

FOOD, BEVERAGE & TOBACCO: 0.5%

  

  

Unilever PLC ADR(b) (United Kingdom)

    1,837,400         57,308,506   
    

 

 

 
       275,060,146   

ENERGY: 5.5%

  

Baker Hughes, Inc.

    2,612,079         120,573,567   

Chevron Corp.

    1,552,879         143,672,365   

Occidental Petroleum Corp.

    2,454,600         175,503,900   

Schlumberger, Ltd.(b) (Curacao/United States)

    3,538,221         211,337,940   
    

 

 

 
       651,087,772   
FINANCIALS: 13.8%     

BANKS: 4.5%

    

BB&T Corp.

    4,216,484         89,937,604   

HSBC Holdings PLC ADR(b) (United Kingdom)

    1,470,561         55,940,140   

SunTrust Banks, Inc.

    3,304,490         59,315,595   

Wells Fargo & Co.

    13,706,906         330,610,573   
    

 

 

 
       535,803,912   

DIVERSIFIED FINANCIALS: 7.9%

    

Bank of America Corp.

    20,385,600         124,759,872   

Bank of New York Mellon Corp.

    9,039,800         168,049,882   

Capital One Financial Corp.

    7,532,659         298,519,276   

Charles Schwab Corp.

    11,799,900         132,984,873   

Credit Suisse Group AG ADR(b) (Switzerland)

    1,069,200         28,055,808   

Goldman Sachs Group, Inc.

    1,750,000         165,462,500   

Legg Mason, Inc.

    564,290         14,507,896   

SLM Corp.

    316,400         3,939,180   
    

 

 

 
       936,279,287   

INSURANCE: 1.4%

    

AEGON NV(a),(b) (Netherlands)

    15,104,751         61,174,242   

Genworth Financial, Inc., Class A(a)

    6,904,200         39,630,108   

The Travelers Companies, Inc.

    1,207,119         58,822,909   
    

 

 

 
       159,627,259   
    

 

 

 
       1,631,710,458   
HEALTH CARE: 16.3%   

HEALTH CARE EQUIPMENT & SERVICES: 1.4%

  

Boston Scientific Corp.(a)

    18,638,300         110,152,353   

Medtronic, Inc.

    1,410,200         46,875,048   
    

 

 

 
       157,027,401   
    SHARES      VALUE  

PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES: 14.9%

   

Amgen, Inc.

    4,499,400       $ 247,242,030   

Gilead Sciences, Inc.(a)

    844,468         32,765,358   

GlaxoSmithKline PLC ADR(b) (United Kingdom)

    6,050,600         249,829,274   

Merck & Co., Inc.

    9,060,975         296,384,492   

Novartis AG ADR(b) (Switzerland)

    4,750,000         264,907,500   

Pfizer, Inc.

    11,870,517         209,870,741   

Roche Holding AG ADR(b) (Switzerland)

    4,600,000         185,012,000   

Sanofi ADR(b) (France)

    8,326,265         273,101,492   
    

 

 

 
       1,759,112,887   
    

 

 

 
       1,916,140,288   
INDUSTRIALS: 4.6%     

CAPITAL GOODS: 2.5%

    

General Electric Co.

    15,914,600         242,538,504   

Tyco International, Ltd.(b) (Switzerland)

    1,425,434         58,086,435   
    

 

 

 
       300,624,939   

COMMERCIAL & PROFESSIONAL SERVICES: 0.5%

  

Dun & Bradstreet Corp.

    220,700         13,520,082   

Pitney Bowes, Inc.

    2,132,750         40,095,700   
    

 

 

 
       53,615,782   

TRANSPORTATION: 1.6%

    

FedEx Corp.

    2,844,554         192,519,415   
    

 

 

 
       546,760,136   
INFORMATION TECHNOLOGY: 15.0%   

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT: 1.0%

  

Maxim Integrated Products, Inc.

    4,944,000         115,343,520   

SOFTWARE & SERVICES: 7.9%

    

Adobe Systems, Inc.(a)

    1,865,600         45,091,552   

AOL, Inc.(a)

    2,539,074         30,468,888   

BMC Software, Inc.(a)

    1,912,847         73,759,381   

Cadence Design Systems, Inc.(a)

    5,265,800         48,655,992   

Computer Sciences Corp.

    2,333,232         62,647,279   

Compuware Corp.(a)

    3,975,888         30,455,302   

eBay, Inc.(a)

    5,849,900         172,513,551   

Electronic Arts, Inc.(a)

    30,956         633,050   

Equinix, Inc.(a)

    253,900         22,553,937   

Microsoft Corp.

    8,594,900         213,927,061   

Symantec Corp.(a)

    9,184,000         149,699,200   

Synopsys, Inc.(a)

    3,365,100         81,973,836   
    

 

 

 
       932,379,029   

TECHNOLOGY, HARDWARE & EQUIPMENT: 6.1%

  

Hewlett-Packard Co.

    14,771,812         331,627,179   

Molex, Inc.

    781,600         15,921,192   

Molex, Inc., Class A

    2,569,828         43,378,697   

Motorola Solutions, Inc.

    1,093,414         45,814,047   

Nokia Corp. ADR(b) (Finland)

    14,040,260         79,467,871   

TE Connectivity, Ltd.(b) (Switzerland)

    3,580,536         100,756,283   

Xerox Corp.

    15,645,150         109,046,695   
    

 

 

 
       726,011,964   
    

 

 

 
       1,773,734,513   

MATERIALS: 2.0%

    

Celanese Corp., Series A

    1,375,759         44,753,440   

Cemex SAB de CV ADR(a),(b) (Mexico)

    4,343,470         13,725,365   

Domtar Corp.

    153,391         10,456,665   

Dow Chemical Co.

    4,605,617         103,442,158   

Vulcan Materials Co.

    2,156,189         59,424,569   
    

 

 

 
       231,802,197   

TELECOMMUNICATION SERVICES: 2.1%

  

Sprint Nextel Corp.(a)

    35,874,100         109,057,264   

Vodafone Group PLC ADR(b) (United Kingdom)

    5,176,698         132,782,304   
    

 

 

 
       241,839,568   
    

 

 

 

TOTAL COMMON STOCKS
(Cost $8,995,429,426)

       8,660,451,282   
 

 

1 / Dodge & Cox Balanced Fund  


Portfolio of Investments (unaudited)     September 30, 2011   

 

FIXED INCOME SECURITIES: 24.6%  
     PAR VALUE      VALUE  

U.S. TREASURY AND GOVERNMENT-RELATED: 2.2%

  

U.S. TREASURY: 0.1%

     

U.S. Treasury Note

     

0.875%, 1/31/12

   $ 9,725,000       $ 9,751,209   

0.75%, 5/31/12

     3,900,000         3,915,522   
     

 

 

 
        13,666,731   

GOVERNMENT-RELATED: 2.1%

     

Arkansas Dev. Fin. Auth. GNMA Guaranteed Bonds

     

9.75%, 11/15/14

     522,460         535,433   

California Taxable General Obligation

     

7.50%, 4/1/34

     28,825,000         34,702,994   

7.55%, 4/1/39

     33,350,000         40,862,421   

7.30%, 10/1/39

     17,000,000         20,215,040   

7.625%, 3/1/40

     5,500,000         6,779,960   

Illinois Taxable General Obligation

     

4.961%, 3/1/16

     1,900,000         2,007,274   

5.365%, 3/1/17

     20,675,000         22,116,874   

5.665%, 3/1/18

     19,800,000         21,313,116   

Los Angeles Unified School District Taxable General Obligation

     

6.758%, 7/1/34

     19,000,000         23,640,180   

New Jersey State Turnpike Authority Revenue Bonds

     

7.102%, 1/1/41

     18,450,000         24,698,830   

Small Business Administration - 504 Program

     

Series 96-20L, 6.70%, 12/1/16

     749,132         812,833   

Series 97-20F, 7.20%, 6/1/17

     1,110,425         1,230,550   

Series 97-20I, 6.90%, 9/1/17

     1,305,743         1,429,964   

Series 98-20D, 6.15%, 4/1/18

     1,812,046         1,962,326   

Series 98-20I, 6.00%, 9/1/18

     1,136,950         1,236,816   

Series 99-20F, 6.80%, 6/1/19

     1,483,718         1,633,086   

Series 00-20D, 7.47%, 4/1/20

     3,757,802         4,176,601   

Series 00-20E, 8.03%, 5/1/20

     1,777,860         2,021,380   

Series 00-20G, 7.39%, 7/1/20

     2,367,666         2,676,121   

Series 00-20I, 7.21%, 9/1/20

     1,441,057         1,609,711   

Series 01-20E, 6.34%, 5/1/21

     4,505,787         4,969,049   

Series 01-20G, 6.625%, 7/1/21

     4,067,752         4,515,824   

Series 03-20J, 4.92%, 10/1/23

     12,452,732         13,542,919   

Series 07-20F, 5.71%, 6/1/27

     8,110,556         9,067,735   
     

 

 

 
        247,757,037   
     

 

 

 
        261,423,768   

MORTGAGE-RELATED: 10.0%

  

  

FEDERAL AGENCY CMO & REMIC: 2.3%

  

  

Dept. of Veterans Affairs

     

Trust 1995-1A 1, 7.213%, 2/15/25

     764,277         908,563   

Trust 1995-2C 3A, 8.793%, 6/15/25

     354,543         427,837   

Fannie Mae

     

Trust 2001-T5 A3, 7.50%, 6/19/30

     996,553         1,155,369   

Trust 2002-33 A1, 7.00%, 6/25/32

     3,157,442         3,665,404   

Trust 2002-86, 6.00%, 8/25/32

     7,296,866         7,802,895   

Trust 2005-W4 1A2, 6.50%, 8/25/35

     14,737,862         16,796,557   

Trust 2009-66 ET, 6.00%, 5/25/39

     38,678,174         42,596,180   

Trust 2001-T7 A1, 7.50%, 2/25/41

     2,945,936         3,373,454   

Trust 2001-T8 A1, 7.50%, 7/25/41

     2,930,771         3,309,381   

Trust 2001-T4 A1, 7.50%, 7/25/41

     2,694,965         3,162,999   

Trust 2001-W3 A, 7.00%, 9/25/41

     2,479,364         2,881,558   

Trust 2001-T10 A2, 7.50%, 12/25/41

     2,787,277         3,087,330   

Trust 2002-W6 2A1, 6.675%, 6/25/42

     2,897,399         3,339,838   

Trust 2002-W8 A2, 7.00%, 6/25/42

     3,398,925         3,916,232   

Trust 2003-W2 1A1, 6.50%, 7/25/42

     5,622,430         6,532,141   

Trust 2003-W2 1A2, 7.00%, 7/25/42

     2,278,486         2,733,628   

Trust 2003-W4 4A, 7.29%, 10/25/42

     3,775,775         4,451,253   

Trust 2004-T1 1A2, 6.50%, 1/25/44

     3,957,679         4,470,372   

Trust 2004-W2 5A, 7.50%, 3/25/44

     10,383,425         12,220,521   
     PAR VALUE      VALUE  

Trust 2004-W8 3A, 7.50%, 6/25/44

   $ 1,528,342       $ 1,854,358   

Trust 2009-11 MP, 7.00%, 3/25/49

     43,997,667         50,506,532   

Freddie Mac

     

Series 2100 GS, 6.50%, 12/15/13

     1,139,758         1,180,402   

Series 1078 GZ, 6.50%, 5/15/21

     510,502         559,154   

Series (GN) 16 PK, 7.00%, 8/25/23

     6,143,696         6,704,118   

Series T-48 1A4, 5.538%, 7/25/33

     48,580,832         53,993,038   

Series T-051 1A, 6.50%, 9/25/43

     321,557         369,719   

Series T-59 1A1, 6.50%, 10/25/43

     18,615,309         21,687,857   
     

 

 

 
        263,686,690   

FEDERAL AGENCY MORTGAGE PASS-THROUGH: 7.7%

  

Fannie Mae, 10 Year

     

6.00%, 1/1/12 - 4/1/12

     725,183         736,156   

Fannie Mae, 15 Year

     

6.00%, 7/1/16 - 3/1/22

     26,769,709         29,120,766   

6.50%, 1/1/13 - 11/1/18

     37,100,373         40,324,607   

7.00%, 11/1/18

     2,808,799         3,057,820   

7.50%, 9/1/15 - 8/1/17

     13,981,485         15,235,830   

Fannie Mae, 20 Year

     

6.50%, 1/1/22 - 10/1/26

     10,721,974         11,946,857   

Fannie Mae, 30 Year

     

5.50%, 7/1/33

     7,001,140         7,652,465   

6.00%, 9/1/36 - 1/1/39

     223,774,913         246,698,627   

6.50%, 12/1/28 - 11/1/37

     130,502,358         145,064,670   

7.00%, 4/1/37 - 8/1/37

     41,253,904         47,367,092   

Fannie Mae, Hybrid ARM

     

1.942%, 1/1/35

     5,762,915         6,016,768   

2.104%, 12/1/34

     5,208,404         5,334,499   

2.121%, 9/1/34

     3,911,287         4,135,561   

2.305%, 8/1/35

     4,370,189         4,593,610   

2.45%, 1/1/35

     2,853,873         3,003,900   

Fannie Mae, Multifamily DUS

     

Pool 555728, 4.02%, 8/1/13

     304,412         317,049   

Pool 555162, 4.826%, 1/1/13

     13,681,986         14,101,610   

Pool 760762, 4.89%, 4/1/12

     15,745,000         15,801,057   

Pool 735387, 4.893%, 4/1/15

     7,010,910         7,702,945   

Pool 555316, 4.962%, 2/1/13

     2,939,980         3,014,487   

Pool 555148, 4.969%, 1/1/13

     1,798,590         1,844,425   

Pool 555806, 5.159%, 10/1/13

     2,196,674         2,329,346   

Pool 461628, 5.32%, 4/1/14

     9,463,217         10,194,045   

Pool 462086, 5.355%, 11/1/15

     19,509,638         21,627,633   

Pool 545316, 5.624%, 12/1/11

     985,110         984,488   

Pool 545685, 5.723%, 4/1/12

     8,019,746         8,100,238   

Pool 545387, 5.915%, 1/1/12

     3,630,913         3,628,173   

Pool 545258, 5.932%, 11/1/11

     247,739         247,549   

Freddie Mac, 30 Year

     

6.00%, 2/1/39

     22,273,117         24,553,537   

Freddie Mac, Hybrid ARM

     

2.711%, 5/1/34

     6,744,046         7,149,388   

5.362%, 4/1/37

     9,328,189         9,916,955   

5.57%, 2/1/38

     20,471,552         21,864,499   

Freddie Mac Gold, 15 Year

     

6.00%, 2/1/18

     3,842,320         4,174,569   

6.50%, 7/1/14-3/1/18

     16,546,636         17,925,116   

7.00%, 4/1/15

     13,629         14,169   

7.75%, 7/25/21

     854,832         995,937   

Freddie Mac Gold, 20 Year

     

6.50%, 10/1/26

     17,305,455         19,141,275   

Freddie Mac Gold, 30 Year

     

6.00%, 2/1/38 - 11/1/39

     57,203,485         62,923,814   

6.50%, 9/1/18 - 4/1/33

     25,046,050         28,308,071   

7.00%, 11/1/37 - 9/1/38

     37,716,409         43,330,744   

7.47%, 3/17/23

     181,772         210,678   

Ginnie Mae, 30 Year

     

7.50%, 11/15/24 - 10/15/25

     2,238,309         2,655,289   

7.97%, 4/15/20 - 1/15/21

     1,224,343         1,409,224   
     

 

 

 
        904,755,538   

PRIVATE LABEL CMO & REMIC: 0.0%(e)

  

Union Planters Mortgage Finance Corp. Series 2000-1 A1, 7.70%, 12/25/24

     1,864,314         2,026,751   
     

 

 

 
        1,170,468,979   
 

 

  Dodge & Cox Balanced Fund / 2


Portfolio of Investments (unaudited)     September 30, 2011   

 

 

FIXED INCOME SECURITIES (continued)  
    PAR VALUE      VALUE  

CORPORATE: 12.4%

  

FINANCIALS: 4.9%

    

Ally Financial, Inc.
4.50%, 2/11/14

  $ 38,375,000       $ 35,113,125   

American International Group, Inc.

    

4.25%, 9/15/14

    4,750,000         4,619,541   

8.25%, 8/15/18

    16,335,000         18,106,482   

Bank of America Corp.

    

5.30%, 3/15/17

    41,040,000         37,065,645   

7.625%, 6/1/19

    6,000,000         6,302,502   

8.00%, 12/15/26(c)

    16,960,000         15,094,400   

6.625%, 5/23/36(c)

    33,500,000         25,198,834   

Barclays PLC(b) (United Kingdom)
5.125%, 1/8/20

    22,435,000         21,985,447   

Boston Properties, Inc.
5.625%, 4/15/15

    28,825,000         31,503,477   

Capital One Financial Corp.
6.75%, 9/15/17

    44,585,000         50,564,696   

CIGNA Corp.

    

7.65%, 3/1/23

    9,525,000         11,522,697   

7.875%, 5/15/27

    12,675,000         16,139,255   

8.30%, 1/15/33

    8,845,000         11,388,420   

Citigroup, Inc.

    

7.875%, 10/30/40(c)

    14,252,500         14,982,969   

6.125%, 11/21/17

    53,880,000         57,574,659   

General Electric Co.

    

5.50%, 1/8/20

    32,095,000         35,007,108   

4.375%, 9/16/20

    8,475,000         8,623,745   

4.625%, 1/7/21

    3,350,000         3,476,808   

Health Net, Inc.

    

6.375%, 6/1/17

    10,250,000         10,583,125   

HSBC Holdings PLC(b) (United Kingdom)

    

5.10%, 4/5/21

    3,625,000         3,732,844   

6.50%, 5/2/36

    18,955,000         19,023,257   

6.50%, 9/15/37

    8,940,000         8,774,816   

JPMorgan Chase & Co.(c)

    

8.75%, 9/1/30

    23,042,000         29,131,694   

Royal Bank of Scotland Group PLC(b) (United Kingdom)

    

4.375%, 3/16/16

    7,900,000         7,553,948   

5.625%, 8/24/20

    13,250,000         12,797,526   

6.125%, 1/11/21

    17,500,000         17,299,887   

SLM Corp.
8.45%, 6/15/18

    15,550,000         16,174,612   

Unum Group

    

7.19%, 2/1/28

    8,305,000         9,314,440   

7.25%, 3/15/28

    2,030,000         2,339,187   

6.75%, 12/15/28

    11,368,000         11,599,043   

Wells Fargo & Co.
6.00%, 11/15/17

    23,695,000         26,256,880   
    

 

 

 
       578,851,069   

INDUSTRIALS: 7.5%

    

Boston Scientific Corp.

    

5.45%, 6/15/14

    2,510,000         2,700,456   

6.25%, 11/15/15

    1,055,000         1,173,775   

6.40%, 6/15/16

    21,405,000         23,924,026   

Burlington Northern Santa Fe  Corp.(g)

    

8.251%, 1/15/21

    1,047,421         1,311,643   

4.967%, 4/1/23

    9,833,684         11,087,478   

5.72%, 1/15/24

    17,995,071         20,709,453   

5.629%, 4/1/24

    21,304,467         24,270,859   

5.342%, 4/1/24

    13,843,903         15,669,629   

Comcast Corp.

    

5.85%, 11/15/15

    12,520,000         14,202,049   

6.30%, 11/15/17

    5,865,000         6,856,777   

5.875%, 2/15/18

    1,900,000         2,201,241   

6.45%, 3/15/37

    4,998,000         5,749,594   

6.95%, 8/15/37

    1,700,000         2,037,850   
    PAR VALUE      VALUE  

Cox Communications, Inc.

    

5.50%, 10/1/15

  $ 4,705,000       $ 5,247,543   

5.875%, 12/1/16(d)

    24,570,000         27,859,554   

CSX Corp.
9.75%, 6/15/20

    5,231,000         7,503,153   

Dillard’s, Inc.

    

7.85%, 10/1/12

    13,680,000         14,090,400   

7.13%, 8/1/18

    10,586,000         10,586,000   

7.875%, 1/1/23

    8,660,000         8,530,100   

7.75%, 7/15/26

    50,000         47,500   

7.75%, 5/15/27

    540,000         499,500   

7.00%, 12/1/28

    15,135,000         13,470,150   

Dow Chemical Co.

    

8.55%, 5/15/19

    21,553,000         27,608,531   

7.375%, 11/1/29

    17,755,000         21,811,361   

9.40%, 5/15/39

    4,890,000         7,552,688   

FedEx Corp.

    

8.00%, 1/15/19

    6,965,000         9,089,137   

6.72%, 7/15/23

    13,522,912         15,686,047   

Ford Motor Credit Co.(g)

    

5.625%, 9/15/15

    23,250,000         23,387,524   

5.75%, 2/1/21

    25,200,000         24,935,375   

HCA, Inc.

    

6.95%, 5/1/12

    48,940,000         49,612,925   

6.30%, 10/1/12

    8,210,000         8,292,100   

6.25%, 2/15/13

    18,390,000         18,642,862   

6.75%, 7/15/13

    4,600,000         4,669,000   

Lafarge SA(b) (France)

    

6.20%, 7/9/15(d)

    4,600,000         4,576,982   

6.50%, 7/15/16

    32,945,000         33,010,297   

Liberty Media Corp.

    

8.50%, 7/15/29

    9,462,000         9,036,210   

8.25%, 2/1/30

    7,291,000         6,908,223   

Macy’s, Inc.

    

7.45%, 10/15/16

    11,410,000         13,272,363   

6.90%, 1/15/32

    49,699,000         53,676,908   

News Corp.

    

6.15%, 3/1/37

    11,000,000         11,751,850   

6.65%, 11/15/37

    1,638,000         1,800,463   

Norfolk Southern Corp.
9.75%, 6/15/20

    7,224,000         10,625,088   

Reed Elsevier PLC(b) (United Kingdom)

    

8.625%, 1/15/19

    22,475,000         28,689,225   

Sprint Nextel Corp.

    

6.00%, 12/1/16

    25,000,000         21,500,000   

6.875%, 11/15/28

    9,855,000         7,317,338   

Telecom Italia SpA(b) (Italy)

    

6.999%, 6/4/18

    2,000,000         2,004,050   

7.175%, 6/18/19

    15,450,000         15,490,139   

Time Warner Cable, Inc.

    

8.75%, 2/14/19

    20,265,000         25,932,573   

8.25%, 4/1/19

    16,145,000         20,217,173   

Time Warner, Inc.

    

7.625%, 4/15/31

    31,950,000         39,881,492   

7.70%, 5/1/32

    13,055,000         16,565,829   

Union Pacific Corp.

    

6.33%, 1/2/20

    18,873,523         21,349,993   

5.866%, 7/2/30

    31,559,287         37,354,323   

6.176%, 1/2/31

    11,115,778         13,618,977   

Vulcan Materials Co.

    

6.50%, 12/1/16

    5,250,000         4,839,272   

7.50%, 6/15/21

    10,825,000         10,098,783   

Xerox Corp.

    

6.35%, 5/15/18

    28,585,000         32,491,169   

5.625%, 12/15/19

    11,115,000         11,996,464   
    

 

 

 
       885,021,464   
    

 

 

 
       1,463,872,533   
    

 

 

 

TOTAL FIXED INCOME SECURITIES
(Cost $2,696,881,038)

       2,895,765,280   
 

 

3 / Dodge & Cox Balanced Fund  


Portfolio of Investments (unaudited)     September 30, 2011   

 

 

SHORT-TERM INVESTMENTS: 4.3%  
     PAR VALUE     VALUE  

MONEY MARKET FUND: 0.1%

  

SSgA U.S. Treasury Money Market Fund

   $ 12,331,551      $ 12,331,551   

REPURCHASE AGREEMENT: 4.2%

  

Fixed Income Clearing Corporation(f) 0.01%, 10/3/11, maturity value $493,660,411

     493,660,000        493,660,000   
    

 

 

 

TOTAL SHORT-TERM INVESTMENTS
(Cost $505,991,551)

   

    505,991,551   
    

 

 

 

TOTAL INVESTMENTS
(Cost $12,198,302,015)

     102.3     12,062,208,113   

OTHER ASSETS LESS LIABILITIES

     (2.3 %)      (265,734,145
  

 

 

   

 

 

 
NET ASSETS      100.0   $ 11,796,473,968   
  

 

 

   

 

 

 

 

(a)

Non-income producing

(b)

Security denominated in U.S. dollars

(c)

Cumulative preferred security

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. The security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of September 30, 2011, all such securities in total represented $32,436,536 or 0.3% of net assets. These securities have been deemed liquid by Dodge & Cox, investment manager, pursuant to procedures approved by the Fund’s Board of Trustees.

(e)

Rounds to 0.0%

(f)

Repurchase agreement is collateralized by Freddie Mac 1.45%-1.55%, 9/2/16. Total collateral value is $503,533,820.

(g)

Subsidiary (see below)

In determining a company’s country designation, the Fund generally references the country of incorporation. In cases where the Fund considers the country of incorporation to be a “jurisdiction of convenience” chosen primarily for tax purposes, the Fund uses the country designation of an appropriate broad-based market index. In that circumstance, two countries are listed - the country of incorporation and the country designated by an appropriate index, respectively.

Fixed income securities are grouped by parent company unless otherwise noted. Actual securities may be issued by the listed parent company or one of its subsidiaries.

ADR: American Depositary Receipt

ARM: Adjustable Rate Mortgage

CMO: Collateralized Mortgage Obligation

DUS: Delegated Underwriting and Servicing

REMIC: Real Estate Mortgage Investment Conduit

FUTURES CONTRACTS

 

Description    Number of
Contracts
     Expiration
Date
  Notional
Amount
  Unrealized
Depreciation
10 Year U.S. Treasury Note-Short Position      3,527       Dec 2011   $(458,840,656)   $(2,777,230)
 

 

  Dodge & Cox Balanced Fund / 4


NOTES TO PORTFOLIO OF INVESTMENTS (unaudited)

 

Security valuation. The Fund’s net assets are valued as of the close of trading on the New York Stock Exchange (NYSE), generally 4:00 p.m. Eastern Time, each day that the NYSE is open for business. Stocks are valued at the official quoted close price or the last sale of the day at the close of the NYSE or, if not available, at the mean between the exchange-listed bid and ask prices. A security that is listed or traded on more than one exchange is valued at the quotation on the exchange determined to be the primary market for such security. Fixed income securities are priced on the basis of valuations furnished by independent pricing services which utilize both dealer-supplied valuations and pricing models. Under certain circumstances, fixed income securities that are not valued by pricing services are temporarily valued by the investment manager utilizing both dealer-supplied valuations and pricing models. Pricing models may consider quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. Treasury futures contracts are valued daily at the closing settlement price on the exchange. Security values are not discounted based on the size of the Fund’s position. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees. Short-term securities are valued at amortized cost which approximates current value. All securities held by the Fund are denominated in U.S. dollars.

Valuation measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

§  

Level 1: Quoted prices in active markets for identical securities

§  

Level 2: Other significant observable inputs (including quoted prices for similar securities, market indices, interest rates, credit risk, etc.)

§  

Level 3: Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s holdings as of September 30, 2011:

 

Classification   LEVEL 1
(Quoted
Prices)
    LEVEL 2
(Other Significant
Observable Inputs)
    LEVEL 3
(Significant
Unobservable Inputs)
 

Securities

     

Common Stocks(a)

  $ 8,660,451,282      $      $   

Fixed Income Securities

     

U.S. Treasury

    13,666,731                 

Government-Related

           247,757,037          

Mortgage-Related

           1,170,468,979          

Corporate

           1,463,872,533          

Short-term Investments

     

Money Market Fund

    12,331,551                 

Repurchase Agreement

           493,660,000          
 

 

 

   

 

 

   

 

 

 

Total Securities

  $ 8,686,449,564      $ 3,375,758,549      $   
 

 

 

   

 

 

   

 

 

 

Other Financial Instruments

     

Treasury Futures Contracts

  $ (2,777,230 )(b)    $      $   
 

 

 

   

 

 

   

 

 

 
   

 

 

   

 

 

   

 

 

 
(a) 

All common stocks held in the Fund are Level 1 securities. For a detailed break-out of common stocks by major industry classification, please refer to the Portfolio of Investments.

(b)

Represents unrealized depreciation on futures contracts.

Security transactions. Security transactions are recorded on the trade date.

Income tax matters. At September 30, 2011, the cost of investments for federal income tax purposes was $12,206,208,374. Net unrealized depreciation aggregated $144,000,261, of which $1,319,187,525 represented appreciated securities and $1,463,187,786 represented depreciated securities.

Other. For more information please see the Fund’s most recent prospectus, summary prospectus, and annual report on the Fund’s website at www.dodgeandcox.com.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Before investing in any Dodge & Cox Fund, you should carefully consider the Fund’s investment 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 www.dodgeandcox.com or call 800-621-3979. Please read the prospectus and summary prospectus carefully before investing.

 

5 / Dodge & Cox Balanced Fund  


INCOME FUND

Portfolio of Investments (unaudited)

    September 30, 2011   

 

FIXED INCOME SECURITIES: 98.8%          
    PAR VALUE      VALUE  

U.S. TREASURY AND GOVERNMENT-RELATED: 9.2%

  

U.S. TREASURY: 1.8%

  

U.S. Treasury Note

    

0.875%, 2/29/12

  $ 150,000,000       $ 150,486,000   

1.00%, 4/30/12

    225,000,000         226,143,000   

0.625%, 7/31/12

    50,000,000         50,191,500   
    

 

 

 
     426,820,500   

GOVERNMENT-RELATED: 7.4%

    

Arkansas Dev. Fin. Auth. GNMA Guaranteed Bonds

    

9.75%, 11/15/14

    21,679         22,217   

California Taxable General Obligation

    

5.25%, 4/1/14

    35,800,000         38,911,736   

6.20%, 3/1/19

    6,435,000         7,350,121   

6.20%, 10/1/19

    20,285,000         23,112,120   

7.50%, 4/1/34

    146,850,000         176,795,652   

7.55%, 4/1/39

    262,103,000         321,144,322   

5.65%, 4/1/39 (mandatory put 4/1/13)

    18,785,000         19,879,790   

7.30%, 10/1/39

    113,880,000         135,416,986   

7.625%, 3/1/40

    55,395,000         68,286,524   

7.60%, 11/1/40

    25,775,000         31,888,572   

Illinois Taxable General Obligation

    

4.961%, 3/1/16

    27,950,000         29,528,057   

5.365%, 3/1/17

    179,840,000         192,382,042   

5.665%, 3/1/18

    128,120,000         137,910,930   

Los Angeles Unified School District Taxable General Obligation

    

6.758%, 7/1/34

    103,895,000         129,268,237   

New Jersey State Turnpike Authority Revenue Bonds

    

7.102%, 1/1/41

    106,730,000         142,878,384   

New Valley Generation V

    

4.929%, 1/15/21

    317,571         360,990   

Small Business Administration - 504 Program

    

Series 91-20K, 8.25%, 11/1/11

    19,663         19,795   

Series 92-20B, 8.10%, 2/1/12

    30,078         30,742   

Series 92-20C, 8.20%, 3/1/12

    41,488         42,577   

Series 92-20D, 8.20%, 4/1/12

    22,705         22,978   

Series 92-20G, 7.60%, 7/1/12

    105,218         107,832   

Series 92-20H, 7.40%, 8/1/12

    64,020         65,958   

Series 92-20I, 7.05%, 9/1/12

    80,132         82,241   

Series 92-20J, 7.00%, 10/1/12

    124,884         127,485   

Series 92-20K, 7.55%, 11/1/12

    186,352         191,017   

Series 92-20L, 7.45%, 12/1/12

    53,948         55,410   

Series 93-20B, 7.00%, 2/1/13

    128,704         133,551   

Series 93-20C, 6.50%, 3/1/13

    470,764         484,174   

Series 93-20D, 6.75%, 4/1/13

    137,805         141,009   

Series 93-20E, 6.55%, 5/1/13

    789,546         810,914   

Series 93-20F, 6.65%, 6/1/13

    250,752         258,696   

Series 93-20L, 6.30%, 12/1/13

    467,460         482,555   

Series 94-20A, 6.50%, 1/1/14

    461,031         477,063   

Series 94-20D, 7.70%, 4/1/14

    145,033         151,116   

Series 94-20E, 7.75%, 5/1/14

    622,935         647,397   

Series 94-20F, 7.60%, 6/1/14

    293,417         306,809   

Series 94-20G, 8.00%, 7/1/14

    258,037         272,670   

Series 94-20H, 7.95%, 8/1/14

    166,581         175,091   

Series 94-20I, 7.85%, 9/1/14

    137,675