CHICAGO, Dec. 10 /PRNewswire/ -- Harris Associates L.P., Adviser to The
Oakmark Family of Funds, announced today that The Oakmark International Fund
and The Oakmark Global Fund will close to certain broker-dealers and third-
party intermediaries effective as of the close of business on Monday,
December 15, 2003.
This change will affect new investors only; existing shareholders of the
Funds may continue to purchase additional shares. In addition, the Funds will
remain open to new participants of existing retirement plans held through
intermediaries, and financial advisors with existing positions may also
continue to purchase shares. Other interested investors may open new accounts
by purchasing shares directly from Oakmark.
"As a result of the Funds' strong performance and significant cash
inflows, we are limiting the number of new investors. Slowing asset growth
allows us to maintain our investment flexibility," states John Raitt,
President and CEO of Harris Associates L.P. "Our decision is consistent with
steps we've taken in the past regarding asset growth in other Funds in our
"This change helps us protect existing shareholders as assets grow," says
David Herro, portfolio manager of Oakmark International. "We are comfortable
with the current level of assets in the Funds, and appreciate the confidence
our shareholders have in us."
Separately, as of the end of January 2004, The Oakmark Fund and The
Oakmark Equity and Income Fund will impose a 2% redemption fee on shares held
90 days or less -- the same fee as that imposed on the other five Oakmark
Funds in August 1999. "While we had not imposed a redemption fee on these two
funds because they are less susceptible to successful market timing, this
change makes our redemption fee policy consistent across our fund family, and
we believe it is in the best interest of our long-term shareholders," says
When newly issued shares of any Oakmark Funds are sold within 90 days of
purchase, 2% of the proceeds will be paid back to the funds in the form of a
redemption fee. Shares held longer than 90 days will not be charged this fee.
The goal of a redemption fee at Oakmark is two-fold. First, a redemption fee
makes the funds less attractive to frequent traders who may disrupt the daily
management of the funds. Second, a redemption fee charges short-term holders
directly for the costs they impose upon the funds and long-term shareholders.
ABOUT THE OAKMARK INTERNATIONAL AND GLOBAL FUNDS:
Oakmark International, which was started in September 1992, is a
diversified portfolio of undervalued mid- and large-size international
companies. Oakmark Global is an all-cap Fund investing in companies around the
world including the U.S. Both Funds utilize the same disciplined value
The Oakmark International Fund, up 29.84% year-to-date through
November 30, returned 29.97% for the 1-year period ending September 30, 2003,
13.21% annually for the 5-year period, and 10.62% annually since its inception
on September 30, 1992. Oakmark International had total assets of approximately
$3.1 billion as of October 31.
The Oakmark Global Fund, up 41.95% year-to-date through November 30,
returned 50.27% for the 1-year period ending September 30, 2003, and 14.83%
since inception on August 4, 1999. The Global Fund had total assets over
$905 million as of October 31.
THE OAKMARK FUNDS INVESTMENT PHILOSOPHY:
Each Oakmark fund abides by the same disciplined value philosophy and
process: to invest in companies the portfolio managers believe are trading at
significant discounts to underlying business value, with companies that grow
value over time, and that have shareholder-oriented management teams.
ABOUT THE PORTFOLIO MANAGERS:
David Herro is a co-portfolio manager of Oakmark International and Oakmark
International Small Cap Funds, and is Chief Investment Officer of
International Equities at Harris Associates. David has been managing
international portfolios since 1986, previously managing a $700 million
international portfolio for The State of Wisconsin Investment Board. He also
served as a Portfolio Manager for international equity portfolios with The
Principal Financial Group of Des Moines, Iowa. David, who joined Harris
Associates in 1992, has a M.A. in Economics from the University of Wisconsin-
Milwaukee (1985) and a B.S. in Business/Economics from the University of
Wisconsin-Platteville (1983). He has over eighteen years of investment
experience, is a CFA charterholder, and is a member of the Financial Analysts
Clyde McGregor co-manages the Oakmark Equity and Income and Oakmark Global
Funds, in addition to separate accounts for Harris Associates. Prior to
joining Harris Associates in 1981, he was an analyst and portfolio manager
with The Northern Trust Company. Clyde has a M.B.A. in Finance from the
University of Wisconsin-Madison (1977) and a B.A. in Economics and Religion
from Oberlin College (1974). He has over twenty-five years of investment
experience and is a CFA charterholder.
Michael Welsh is a co-portfolio manager for Oakmark International, Oakmark
International Small Cap, and Oakmark Global Funds, and is Director of
International Research for Harris Associates. Prior to joining Harris
Associates in 1992, Michael was a Senior Associate with Coopers & Lybrand in
their Valuation Services group and a Valuation Services Consultant with Price
Waterhouse. He has a M.B.A. in Finance from Northwestern University (1993) and
a B.S. in Accounting from the University of Kansas (1985). Michael has sixteen
years of investment experience. He is a CFA charterholder and holds the
distinctions of Certified Public Accountant.
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 Family of Funds and
manages separate accounts for institutional and high net worth investors.
Harris Associates' total assets under management were over $41 billion as of
October 31, 2003. 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 in the funds, visit
www.oakmark.com or call 1-800-OAKMARK for a prospectus, which should be read
carefully before investing.
SOURCE Harris Associates L.P.