Harris Associates L.P. Announces the Liquidation of The Oakmark Small Cap Fund

Aug 04, 2004, 01:00 ET from Harris Associates L.P.

    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."
     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.
     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.