News & Insights from Oakmark

News & Insights

"Talking Stocks with Bill Nygren"

March 29, 2018

The Motley Fool interviewed Portfolio Manager Bill Nygren about the firm’s value investment process, current holdings and stock market valuations, among other topics.

Read the article here.

 

Average Annual Total Returns (as of 03/31/2018)

Fund QTD 1-Year 3-Year 5-Year 10-Year Inception
OAKMX -0.88% 15.34% 11.14% 13.78% 11.76% 12.88%
S&P 500 Total Return -0.76% 13.99% 10.78% 13.31% 9.49% 9.72%

Expense Ratio (as of 09/30/2017): 0.90%
Fund Inception:  08/05/1991

Fund QTD 1-Year 3-Year 5-Year 10-Year Inception
OAKLX -3.89% 7.98% 7.69% 12.62% 11.19% 12.58%
S&P 500 Total Return -0.76% 13.99% 10.78% 13.31% 9.49% 8.39%

Expense Ratio (as of 09/30/2017): 1.03%
Fund Inception:  11/01/1996

Fund QTD 1-Year 3-Year 5-Year 10-Year Inception
OAKWX -3.32% 10.71% 8.60% 10.85% 10.51% 8.60%
MSCI World Index -1.28% 13.59% 7.97% 9.70% 5.90% 5.76%

Expense Ratio (as of 09/30/2017): 1.19%
Fund Inception:  10/02/2006

 

Past performance is no guarantee of future results. The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted. The investment return and principal value vary so that an investor’s shares when redeemed may be worth more or less than the original cost.

The holdings mentioned above comprise the following percentages of the Funds' total net assets as of 03/31/2018:

SECURITY Oakmark Fund Oakmark Select Fund Oakmark Global Select Fund
Ally Financial 2.4% 5.1% 0%
Alphabet Cl A 0.5% 1.2% 0.9%
Alphabet Cl C 3.0% 7.5% 5.2%
Amazon 0% 0% 0%
Apple 2.5% 0% 0%
Automatic Data Process 1.9% 0% 0%
Bank of America 2.8% 3.9% 5.6%
Booking Holdings 1.2% 0% 0%
Capital One Financial 2.5% 3.6% 0%
CBRE Group Cl A 0% 8.1% 0%
Ctrip 0% 0% 0%
Facebook Cl A 1.0% 0% 0%
Intel 2.6% 0% 0%
JPMorgan Chase 0% 0% 0%
LinkedIn 0% 0% 0%
Mastercard Cl A 2.6% 5.0% 5.1%
Moody's 1.4% 0% 0%
Netflix 2.4% 0% 0%
Oracle 2.1% 3.9% 4.0%
PayPal 0% 0% 0%
Square 0% 0% 0%
TE Connectivity 2.5% 7.2% 5.8%
Visa Cl A 2.3% 0% 0%
Wells Fargo 1.9% 0% 0%

 

Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.

Click here to access the full list of holdings for the Oakmark Fund as of the most recent quarter-end.
Click here to access the full list of holdings for the Oakmark Select Fund as of the most recent quarter-end.
Click here to access the full list of holdings for the Oakmark Global Select Fund as of the most recent quarter-end.

The Lipper Fund Awards are presented annually by Lipper, a mutual fund rating and research firm, to honor funds that it believes have excelled in providing superior performance relative to peers around the world. The awards are part of the broader Thomson Reuters Awards for Excellence program. More information about the Lipper Fund Awards is available at http://excellence.thomsonreuters.com/award/lipper

The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. The Oakmark Global Select Fund was ranked number one out of 11 eligible funds for the three-year period and number one out of 10 eligible funds for the five-year period ending November 30, 2017.

The Lipper Fund Award for Best Equity Large Fund Group is designed to recognize fund families with strong track records across all of their funds over a three-year period. In 2016, the Oakmark Funds were selected out of 44 eligible fund groups due to the performance of all seven of its comprising Funds. In 2015, the Oakmark Funds were selected out of 46 eligible fund groups due to the performance of all seven of its comprising Funds. In 2014, the Oakmark Funds were selected out of 46 eligible fund groups due to the performance of all seven of its comprising Funds.

In 2015, the Oakmark Global Fund won an award in Lipper’s Global Multi-Cap Core Funds category for the 10-year period. In Lipper’s global multi-cap core funds classification, the Oakmark Global Fund I shares ranked one out of 13 eligible funds for the 10-year period ended November 30, 2014.

According to Morningstar, the Morningstar Manager of the Year award is presented to portfolio managers based on the managers' (i) "ability to generate exceptional returns;" (ii) "willingness to align their interests with shareholders;" and (iii) "courage to stay with their strategies in order to produce superior risk-adjusted returns in the end."

According to Morningstar, the Fund Manager of the Decade award, which is a new award from Morningstar, recognizes fund managers who have achieved superior risk-adjusted results over the past 10 years and have an established record of serving shareholders well. While the awards focus on performance over the past decade, Morningstar takes into consideration other factors, including the fund manager’s strategy, approach to risk, size of the fund, and stewardship. Both individual fund managers and management teams are eligible, and being a previous winner of the Morningstar Fund Manager of the Year award isn’t a prerequisite. Morningstar’s fund analysts select the Fund Manager of the Decade award winners based on Morningstar’s proprietary research and in-depth evaluation.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of 03/31/2018, the Oakmark Fund (OAKMX) was rated against the following numbers of U.S.-domiciled Large Blend funds over the following time periods: 1,204 funds in the last three years, 1,077 funds in the last five years, and 802 funds in the last ten years. With respect to these Large Blend funds, the Oakmark Fund (OAKMX) received a Morningstar Rating of 4 stars, 5 stars and 5 stars for the three-, five- and ten-year periods, respectively. Past performance is no guarantee of future results.

EBIT is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses.

EPS refers to Earnings Per Share and is calculated by dividing total  earnings by the number of shares outstanding.

The Price-Earnings Ratio (“P/E”) is the most common measure of the expensiveness of a stock.

PE-to-Grow (“PEG”) ratio is a stock’s price/earnings ratio divided by its year-over-year earning growth rate.

The Return on Invested Capital (ROIC) is the percentage amount that a company is making for every percentage point over the Cost of Capital/Weighted Average Cost of Capital (WACC). More specifically, the return on investment capital is the percentage return that a company makes over its invested capital.

Enterprise-Value-to-Sales (EV/Sales) is a valuation measure that compares the enterprise value (EV) of a company to the company's sales. EV/Sales gives investors a quantifiable metric of how much it costs to purchase the company's sales.

The S&P 500 Total Return Index is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market.  All returns reflect reinvested dividends and capital gains distributions.  This index is unmanaged and investors cannot invest directly in this index.

Oakmark Fund and Oakmark Global Select:  The Funds' portfolios 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 Funds will have a greater impact on the Funds net asset value than it would if the Funds invested 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 Select Fund: The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.

Because the Oakmark Select Fund and Oakmark Global Select Funds are non-diversified, the performance of each holding will have a greater impact on the Funds’ total return, and may make the Funds’ returns more volatile than a more diversified fund.

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.

The discussion of the Fund’s investments and investment strategy (including current investment themes, the portfolio managers' research and investment process, and portfolio characteristics) represents the Fund’s investments and the views of the portfolio managers and Harris Associates L.P., the Fund’s investment adviser, at the time of this letter, and are subject to change without notice.

The Oakmark Funds are distributed by Harris Associates Securities L.P. Member FINRA. Before investing in any Oakmark Fund, you should carefully consider the Fund's investment objectives, risks, management fees and other expenses. This and other important information is contained in a Fund's prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before investing. For more information, please visit oakmark.com or call 1-800-OAKMARK (625-6275).

Copyright©2018 Harris Associates Securities L.P., Member FINRA.

 
 

 

 

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CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standards and Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service.  The CUSIP Database, © 2011 American Bankers Association.  “CUSIP” is a registered trademark of the American Bankers Association.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.

Before investing in any Oakmark Fund, you should carefully consider the Fund's investment objectives, risks, management fees and other expenses. This and other important information is contained in a Fund's prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before investing. For more information, please call 1-800-OAKMARK (625-6275).

OAKMARK, OAKMARK FUNDS, OAKMARK INTERNATIONAL, and OAKMARK and tree design are trademarks owned or registered by Harris Associates L.P. in the U.S. and/or other countries.

Copyright 2018, Harris Associates Securities L.P., Distributor, Member FINRA.
Date of first use: January 24, 2013.

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