You could lose money by investing in the Fund, and the Fund could underperform other investments. You should expect the Fund's share price and total return to fluctuate within a wide range. The Funds's performance could be hurt by:
- Issuer risk. Securities held by the Fund may decline in value because of changes in the financial condition of, or events affecting, the issuers of these securities.
- Management risk. Dodge & Cox's opinion about the intrinsic worth of a company or security may be incorrect, Dodge & Cox may not make timely purchases or sales of securities for the Fund, the Fund's investment objective may not be achieved, and the market may continue to undervalue the Fund's securities.
- Equity risk. Equity securities generally have greater price volatility than fixed income securities.
- Market risk. Stock prices may decline over short or extended periods due to general market conditions.
- Liquidity risk. The Fund may not be able to
purchase or sell a security in a timely manner or at desired prices
or achieve its desired weighting in a security.
- Non-U.S. investment risk. Non-U.S. stock markets may
decline due to conditions unique to an individual
country, including unfavorable economic conditions
relative to the United States. There may be increased
risk of delayed settlement of portfolio transactions or
loss of certificates of portfolio securities.
- Non-U.S. currency risk. Non-U.S. currencies may decline relative to the U.S. dollar, which reduces the unhedged value of securities denominated in those currencies. Dodge & Cox may not hedge or may not be successful in hedging the Fund's currency exposure. The Fund also bears transactions charges for currency exchange.
- Non-U.S. issuer risk. Securities may decline in value
because of political, economic, or market instability;
the absence of accurate information about the
companies; risks of internal and external conflicts; or
unfavorable government actions, including
expropriation and nationalization. These same factors
may cause a decline in the value of foreign currency
derivative instruments. Non-U.S. securities are sometimes less liquid, more volatile, and harder to value
than securities of U.S. issuers. Lack of uniform
accounting, auditing, and financial reporting standards,
with less governmental regulation and oversight than
U.S. companies, may increase risk. Some countries also
may have different legal systems that may make it
difficult for the Fund to vote proxies, exercise
shareholder rights, and pursue legal remedies with
respect to investments. Certain of these risks may also
apply to securities of U.S. companies with significant
- Emerging market risk. Non-U.S. investment and non-
U.S. issuer risk may be particularly high to the extent
the Fund invests in emerging market securities.
Emerging market securities may present issuer, market,
currency, liquidity, legal, political and other risks
different from, and potentially greater than, the risks of
investing in securities and instruments tied to
developed non-U.S. issuers. Emerging market securities
may also be more volatile, less liquid and more difficult
to value than securities economically tied to developed
- Derivatives risk. The Fund’s use of forward currency
contracts and currency futures contracts involves risks
different from, and possibly greater than, the risks
associated with investing directly in securities and other
more traditional investments. These derivatives are
subject to potential changes in value in response to
exchange rate changes, interest rate changes, or other
market developments, or the risk that a derivative
transaction may not have the effect Dodge & Cox
anticipated. Derivatives also involve the risk of
mispricing or improper valuation and poor correlation
between changes in the value of a derivative and the
underlying asset. Derivative transactions may be highly
volatile, and can create investment leverage, which
could cause the Fund to lose more than the amount of
assets initially contributed to the transaction, if any.
There is also the risk that the Fund may be unable to
close out a derivative position at an advantageous time
or price, or that a counterparty may be unable or
unwilling to honor its contractual obligations,
especially during times of financial market distress.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
There are further risk factors described elsewhere in the prospectus and in the SAI.
The following bar chart is intended to help you understand the risks of investing in the Fund. The bar chart shows changes in the Fund’s returns from year to year.
The Fund’s past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Average annual total returns can be viewed on the Performance & Prices page of this website.
|Highest/Lowest quarterly results during the time period were:
Highest: 33.37% (quarter ended June 30, 2009)
Lowest: -26.06% (quarter ended December 31, 2008)