Three Oakmark Funds Reopen to All Investors
July 29, 2016
The Oakmark Global Fund (OAKGX), the Oakmark International Fund (OAKIX) and the Oakmark International Small Cap Fund (OAKEX) reopened to all investors effective today. The Funds are advised by Harris Associates L.P., which announced the reopening. In addition, Harris Associates announced the retirement of partner, portfolio manager and senior international investment analyst Robert A. (Rob) Taylor, CFA, effective on or about September 30, 2016. Rob will be resigning from his position co-managing the Oakmark International and the Oakmark Global Funds at that time as well.
The three reopened Funds had been closed to most financial intermediaries since October 2013 (OAKIX) and October 2014 (OAKGX and OAKEX). Existing shareholders, all retirement plans and direct investors have been able to purchase shares of the Funds during this period. All seven Oakmark Funds are now open.
“We’re excited about the investment opportunities we’re seeing around the world and believe that restoring the balance between purchases and sales is in the best interest of Fund shareholders,” said David Herro, portfolio manager of the International and International Small Cap Funds.
Rob has co-managed OAKGX and OAKIX since 2005 and 2008, respectively. Upon Rob’s retirement, the Oakmark International Fund will continue to be run by portfolio manager David Herro, who has managed the Fund since its inception. There are no immediate plans to replace Rob as co-manager on the International Fund. David will join portfolio manager Clyde McGregor as co-manager of the Oakmark Global Fund. Clyde has co-managed the Global Fund since 2003.
“Working for Harris Associates for over 20 years and serving on the management team for the Oakmark Funds has been a true honor,” said Rob Taylor. “I will miss my colleagues and I believe that they will continue the tradition of excellence and success for many years to come.”
The Oakmark Global Fund invests primarily in a diversified portfolio of common stocks of U.S. and non-U.S. companies. The Fund’s all-cap mandate allows investment across the market-cap spectrum. The Oakmark International Fund invests in a diversified portfolio of common stocks of non-U.S. companies. The Fund generally focuses on mid- and large-cap companies, though small-cap companies are also eligible for investment. The Oakmark International Small Cap Fund seeks capital appreciation by investing in small-capitalization companies located outside the U.S.
Oakmark Global, Oakmark International and Oakmark International Small Cap Funds: Investing in foreign securities presents risks which in some ways may be greater than U.S. investments. Those risks include: currency fluctuation; different regulation, accounting standards, trading practices and levels of available information; generally higher transaction costs; and political risks.
Oakmark Global, Oakmark International Funds and Oakmark International Small Cap Funds: The Funds’ portfolios tend to be invested in a relatively small number of stocks. As a result, the appreciation or depreciation of any one security held will have a greater impact on the Funds’ net asset value than it would if the Funds invest in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the Funds’ volatility.
Oakmark International Small Cap Fund: The stocks of smaller companies often involve more risk than the stocks of larger companies. Stocks of small companies tend to be more volatile and have a smaller public market than stocks of larger companies. Small companies may have a shorter history of operations than larger companies, may not have as great an ability to raise additional capital and may have a less diversified product line, making them more susceptible to market pressure.