CHICAGO, Aug. 4 /PRNewswire/ -- The Oakmark Board of Trustees and Harris
Associates L.P., adviser to The Oakmark Funds, announced today the decision to
liquidate and close The Oakmark Small Cap Fund at the end of September, 2004.
The Fund has stopped accepting new purchases, and currently the portfolio has
a substantial majority of its assets in cash. In addition, the Fund will pay
approximately $1.00 long-term capital gain distribution to shareholders of
record on August 10, 2004. The NAV per share will be ex-dividend on August 11,
"We are committed to delivering superior investment performance to
shareholders in all of the Oakmark Funds. We haven't been able to accomplish
this goal in the Small Cap Fund and, therefore, after careful deliberation, we
have concluded that it is in the best interests of Fund shareholders to
liquidate the Fund," says John Raitt, President of The Oakmark Funds and CEO
of Harris Associates L.P. "This action reinforces our commitment to act with
integrity and honesty in providing services to our clients and fellow
shareholders." As of July 31, 2004, The Oakmark Small Cap Fund had
approximately $350M in assets under management.
"We are focused on ensuring that the liquidation process goes smoothly,"
adds Bob Levy, Chairman and CIO of Harris Associates L.P. "We appreciate the
commitment and support from our fellow shareholders since the Fund's inception
in November 1995. We hope shareholders continue to invest with us through
other Oakmark funds for many years to come."
OPTIONS FOR OAKMARK SMALL CAP SHAREHOLDERS:
The Fund's liquidation is expected to be complete on or about September
28, 2004. There are two ways Fund shareholders may access their investment
before the liquidation. A shareholder may transfer/exchange into ANY Oakmark
fund (including The Oakmark Select Fund and The Oakmark International Small
Cap Fund) or shareholders may redeem their shares. Beginning August 5, 2004,
The Oakmark Small Cap Fund's redemption fee (2% on shares owned for 90 days or
less) will be waived for shareholders. Shareholders of non-taxable accounts,
such as an IRA, who do not exchange or redeem their shares prior to
liquidation, will have their shares transferred into the Oakmark Units Money
Market Portfolio. Shareholders of taxable accounts who do not exchange or
redeem prior to liquidation will be sent a check for their account's value
when liquidation occurs. Investors who own Fund shares through an intermediary
or retirement plan should contact those companies for transaction information
on their individual account.
ABOUT HARRIS ASSOCIATES L.P.:
Harris Associates L.P., a Chicago-based investment management firm founded
in 1976, serves as the Adviser to The Oakmark Funds and manages separate
accounts for institutional and high net worth investors. Harris Associates'
investment philosophy is distinguished by a disciplined adherence to value
investing. This philosophy has three basic tenets: to invest in companies at
significant discounts to estimated business value, to invest in companies that
consistently grow the value of their assets, and to invest in companies that
have a shareholder-oriented management. Harris Associates' total assets under
management were approximately $54 billion as of June 30, 2004. The Oakmark
Funds are distributed by Harris Associates Securities L. P., member NASD. For
more information including management fees and expenses and the special risks
of investing, visit http://www.oakmark.com or call 1-800-OAKMARK for a
prospectus. An investor should consider a fund's investment objectives, risks,
and charges and expenses carefully before investing. This and other
information are contained in the prospectus.
SOURCE Harris Associates L.P.