CIO-U.S. and Portfolio Manager Bill Nygren discussed where he sees value opportunities in a market dominated by mega-cap technology companies during a “Barron’s Roundtable” interview.
Average Annual Total Returns (as of 06/30/2024):
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKMX | -3.98% | 18.01% | 8.60% | 14.68% | 11.17% | 12.72% |
| S&P 500 Index | 4.28% | 24.56% | 10.01% | 15.05% | 12.86% | 10.57% |
Fund Inception: 08/05/1991
Expense Ratio: 0.91%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2024; actual expenses may vary.
Returns for periods of less than one year are not annualized.
To obtain most recent Oakmark Fund month-end performance data, view it here.
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKLX | -6.19% | 14.30% | 5.60% | 11.97% | 7.67% | 11.56% |
| S&P 500 Index | 4.28% | 24.56% | 10.01% | 15.05% | 12.86% | 9.69% |
Fund Inception: 11/01/1996
Expense Ratio: 1.00%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2024; actual expenses may vary.
Returns for periods of less than one year are not annualized.
To obtain most recent Oakmark Select Fund month-end performance data, view it here.
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKBX | -2.19% | 10.71% | 2.93% | 7.99% | 6.45% | 9.51% |
| Lipper Balanced Fund | 1.11% | 12.57% | 2.61% | 7.26% | 6.52% | 6.94% |
Fund Inception: 11/01/1995
Expense Ratio: 0.86%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2024; actual expenses may vary.
Returns for periods of less than one year are not annualized.
To obtain most recent Oakmark Equity and Income Fund month-end performance data, view it here.
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OANCX | 0.74% | 5.95% | -1.22% | n/a | n/a | 0.44% |
| Bloomberg U.S. Aggregate Bond | 0.07% | 2.63% | -3.02% | n/a | n/a | -2.22% |
Fund Inception: 06/10/2020
Gross Expense Ratio: 1.08%
Net Expense Ratio: 0.52%
Expense ratios are from the Fund’s most recent prospectus dated January 28, 2024, as amended and restated July 1, 2024; actual expenses may vary.
Returns for periods of less than one year are not annualized.
The Fund’s Adviser has contractually undertaken to waive and/or reimburse certain fees and expenses so that the total annual operating expenses of each class are limited to 0.74%, 0.54%, 0.52% and 0.44% of average net assets, respectively. Each of these undertakings lasts until 01/27/2025 and may only be modified by mutual agreement of the parties.
To obtain most recent Oakmark Bond Fund month-end performance data, view it here.
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 comprise the following percentages of total net assets as of 08/31/2024:
| Security | Oakmark Fund |
|---|---|
| Alphabet Cl A | 3.1% |
| American Intl Group | 2.4% |
| Corebridge Financial | 1.0% |
| General Motors | 3.0% |
Portfolio holdings are not intended as recommendations of individual stocks and are subject to change. The Funds disclaim any obligation to advise shareholders of such changes. Information about portfolio holdings does not represent a recommendation or an endorsement to Fund shareholders or other members of the public to buy or sell any security contained in the Funds’ portfolios. Portfolio holdings are current to the date listed but are subject to change any time. There are no assurances that the securities will remain in the Funds’ portfolios after the date listed or that the securities that were previously sold may not be repurchased.
Access the full list of holdings for the Oakmark Fund here.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of the date written and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.
Certain comments herein are based on current expectations and are considered “forward-looking statements”. These forward looking statements reflect assumptions and analyses made by the portfolio managers and Harris Associates L.P. based on their experience and perception of historical trends, current conditions, expected future developments, and other factors they believe are relevant. Actual future results are subject to a number of investment and other risks and may prove to be different from expectations. Readers are cautioned not to place undue reliance on the forward-looking statements.
The price to earnings ratio (“P/E”) compares a company’s current share price to its per-share earnings. It may also be known as the “price multiple” or “earnings multiple”, and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.
The Price to Book Ratio is a stock’s capitalization divided by its book value.
Magnificent 7 stocks refer to Alphabet Class A, Amazon.com, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.
The S&P 500 Index is a float-adjusted, capitalization-weighted index of 500 U.S. large-capitalization stocks representing all major industries. It is a widely recognized index of broad, U.S. equity market performance. Returns reflect the reinvestment of dividends. This index is unmanaged and investors cannot invest directly in this index.
The Lipper Balanced Fund Index measures the equal-weighted performance of the 30 largest U.S. balanced funds as defined by Lipper. This index is unmanaged and investors cannot invest directly in this index.
The Bloomberg U.S. Aggregate Bond is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM pass-throughs), asset-backed securities and commercial mortgage-backed securities (agency and non-agency). This index is unmanaged and investors cannot invest directly in this index.
The Oakmark 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.
The Oakmark Equity and Income Fund invests in medium- and lower-quality debt securities that have higher yield potential but present greater investment and credit risk than higher-quality securities. These risks may result in greater share price volatility. An economic downturn could severely disrupt the market in medium or lower grade debt securities and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest.
The Oakmark Equity and Income 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.
The Oakmark Bond Fund invests primarily in a diversified portfolio of bonds and other fixed-income securities. These include, but are not limited to, investment grade corporate bonds; U.S. or non-U.S.-government and government-related obligations (such as, U.S. treasury securities); below investment-grade corporate bonds; agency mortgage backed-securities; commercial mortgage- and asset-backed securities; senior loans (such as, leveraged loans, bank loans, covenant lite loans, and/or floating rate loans); assignments; restricted securities (e.g., Rule 144A securities); and other fixed and floating rate instruments. The Fund may invest up to 20% of its assets in equity securities, such as common stocks and preferred stocks. The Fund may also hold cash or short-term debt securities from time to time and for temporary defensive purposes.
Under normal market conditions, the Fund invests at least 25% of its assets in investment-grade fixed-income securities and may invest up to 35% of its assets in below investment-grade fixed-income securities (commonly known as “high-yield” or “junk bonds”).
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.
Bond values fluctuate in price so the value of your investment can go down depending on market conditions.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during
