Oakmark International Fund to Slow Inflows
January 26, 2018
Harris Associates L.P., adviser to the Oakmark Funds and an affiliate of Natixis Investment Managers, announced today that the Oakmark International Fund will close to new investors at most third-party intermediaries, effective immediately.
This change will only affect new investors. Existing shareholders of the Oakmark International Fund may continue to purchase additional shares. The Fund will remain open to all retirement plans and certain intermediary-sponsored fee-based programs. Investors may also open new accounts by purchasing shares directly from Oakmark.
“We believe controlling inflows protects existing shareholders by maximizing our investment flexibility,” said David Herro, portfolio manager of the Oakmark International Fund. “With the soft close of the Fund, we are able to continue to safeguard the assets of our current shareholders.”
“We pride ourselves on our commitment to our long-term investment results and our long-term clients,” said Kristi Rowsell, president of The Oakmark Funds. “This change is consistent with our investment philosophy and high level of customer service.”
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
The Fund’s portfolio tends to be invested in a relatively small number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the Fund’s volatility.
Investing in foreign securities presents risks that 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.