objective
The Fund seeks long-term growth of principal and income.
Strategy
The Fund invests primarily in a diversified portfolio of equity securities
issued by non-U.S. companies from at least three different countries,
which may include emerging market countries. The Fund is not
required to allocate its investments in set percentages in particular
countries and may invest in emerging markets without limit. Under
normal circumstances, the Fund will invest at least 80% of its total
assets in equity securities of non-U.S. companies, including common
stocks, depositary receipts evidencing ownership of common stocks,
preferred stocks, securities convertible into common stocks, and
securities that carry the right to buy common stocks (e.g., rights and
warrants). The Fund may enter into currency forward contracts,
currency swaps, or currency futures contracts to hedge direct and/or
indirect foreign currency exposure. The Fund may use futures or
options referencing stock indices to hedge against a general downturn
in the equity markets. The Fund also may also use equity index futures
to equitize, or create equity market exposure, approximately equal to
some or all of its non-equity assets.
The Fund typically invests in medium-to-large well-established
companies based on standards of the applicable market. In
selecting investments, the Fund typically invests in companies that,
in Dodge & Cox’s opinion, appear to be temporarily undervalued by
the stock market but have a favorable outlook for long-term growth.
The Fund also focuses on the underlying financial condition and
prospects of individual companies, including future earnings, cash
flow, and dividends. Various other factors, including financial
strength, economic condition, competitive advantage, quality of the
business franchise, and the reputation, experience, and
competence of a company’s management are weighed against
valuation in selecting individual securities. The Fund also considers
the economic and political stability of the country where the issuer
is located and the protections provided to shareholders.
|
