Kristi Rowsell - September 30, 2016
We are pleased to announce that the Oakmark Funds have initiated the registration process to add two new share classes to our lineup: an Advisor share class and an Institutional share class. The Advisor and Institutional share classes will have higher investment minimums than our current share classes and are expected to have lower expense ratios. As part of the launch of these new share classes, our Class I will be renamed Investor class and our Class II will be renamed Service class. The features of our Investor and Service classes will be unchanged from today. The launch of the new share classes and the Class I and Class II name changes are expected to occur on November 30, 2016.
What are the new share classes?
We are adding two new share classes that will allow shareholders more flexibility in how they incur and pay fees for financial advice and shareholder services. A newly created Advisor share class, as its name suggests, will be primarily available through financial advisors and on the major intermediary platforms. We expect the Advisor share class to have a lower expense structure than our current share classes. Shareholders registered directly with the Oakmark Funds with balances of $100,000 or more in a single Fund will be eligible to purchase the Advisor shares of that Fund.
The newly created Institutional share class is targeted to retirement plans and large institutions seeking a minimal amount of shareholder services. We expect the Institutional share class to have an even lower expense structure than the Advisor share class. Shareholders registered directly with the Oakmark Funds with balances of $1,000,000 or more in a single Fund will be eligible to purchase the Institutional shares of that Fund.
Additional details may be found on the Securities and Exchange Commission’s Edgar database here.
How do I buy the new share classes?
Subject to satisfying the eligibility requirement of a class, shareholders will be able to exchange their shares within the same Fund from one class to another without recognizing taxable gains or losses on the exchange. We plan to notify certain qualifying shareholders registered directly with the Funds about their eligibility status and, shortly thereafter, convert their Class I (Investor) shares to the class for which they are newly eligible.
We believe that adding share classes with a range of shareholder service fees helps provide shareholders with better options to meet their investment needs. Please contact us directly at 1-800-OAKMARK or at Oakmark.com with any questions you may have on how our new share classes may be beneficial to you.
Early year-end distribution
In order to facilitate the launch of our new share classes, the Oakmark Funds will pay their annual distributions in the last week of November. We will post distribution estimates to our Oakmark.com site in mid-November to assist in your year-end tax planning.
We hope that you will find our new share classes beneficial in meeting your financial needs. We appreciate your confidence and partnership, and remain committed to improving your Oakmark experience.
President of The Oakmark Funds
President of Harris Associates
We may not sell shares of the Adviser class or Institutional class until the registration statement filed with the Securities and Exchange Commission is effective. This is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state in which the offer or sale is not permitted.
The discussion of the Funds’ investments and investment strategy (including current investment themes, the portfolio managers' research and investment process, and portfolio characteristics) represents the Funds’ investments and the views of the portfolio managers and Harris Associates L.P., the Funds' investment adviser, at the time of this letter, and are subject to change without notice.