6
Morningstar Analyst Rating
01-28-14
„
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Positive
Neutral
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
15.87
16.51
12.65
10.42
11.07
9.99
6.53
10.20
10.78
. . .
Total Return %
-3.88
33.80
23.95
-5.87
11.06
53.58
-32.49
-1.16
. . . .
+/-MSCI WexUS
0.66
18.51
7.12
7.84
-0.09
12.13
13.04
-17.81
. . . .
+/-MSCI Ac Wrld ND
0.12
11.00
7.82
1.48
-1.61
18.95
9.70
-12.82
. . . .
Income Return %
0.00
1.07
1.55
0.00
0.25
0.59
3.45
0.22
. . . .
Capital Return %
-3.88
32.73
22.40
-5.87
10.81
52.99
-35.94
-1.38
. . . .
Total Rtn % Rank Cat
62
11
3
33
66
8
11
96
. . . .
Income $
0.00
0.14
0.16
0.00
0.02
0.04
0.35
0.02
0.01
. . .
Capital Gains $
0.00
0.27
0.10
0.00
0.00
0.00
0.00
0.44
0.00
. . .
Expense Ratio %
.
1.15
1.23
1.24
1.29
1.43
1.35
1.31
. . . .
Income Ratio %
.
1.01
0.72
0.33
0.40
0.88
1.41
1.01
. . . .
Turnover Rate %
.
36
36
49
50
41
62
33
. . . .
Net Assets $mil
1,553
1,476
630
443
363
299
198
293
. . . .
Performance
01-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-4.29 26.56 20.61 5.13 53.58
6.41 -13.17
9.97 9.31 11.06
5.15 2.15 -16.23 4.62 -5.87
18.62 -8.74
3.28 10.87 23.95
7.59 5.88
9.02 7.74 33.80
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS Ac Wrld ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
0.99 4.53
1.95
31 10,099
5.64 0.16
-0.44
65 10,564
20.07 14.32
7.37
22 12,007
12.91 9.72
5.22
7 14,395
22.54 8.68
6.50
5 27,631
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.42
6
0.44
40
22.16
5
0.31
32
. . . .
Potential Capital Gain Exposure: 15% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
20.07
3 Yr
12.91
High
+Avg
5 Yr
22.54
High
+Avg
10 Yr
. . . .
Incept
8.70
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI World
Alpha
9.6
3.0
Beta
0.86
1.06
R-Squared
78
83
Standard Deviation
16.25
Mean
12.91
Sharpe Ratio
0.83
Morningstar’s Take
by Shannon Zimmerman 01-28-14
This concentrated world-stock fund just missed the
category’s top decile last year, gaining nearly 34% and
landing in the peer group’s 11th percentile. With just
20 holdings and lopsided sector weights bearing little
resemblance to the those of the MSCI World Index or
the fund’s average rival, managers Bill Nygren and
David Herro delivered those results with an
idiosyncratic portfolio. Its financials exposure nearly
doubles the category norm, and it doesn’t own any
energy, materials, or utilities stocks.
That’s par for the course, however, as is the fund’s
recent success. The fund launched in October 2006,
and between November of that year and December
2013, its cumulative gain of 87% trumps the index by
51 percentage points and the average world-stock fund
by 50 points. In that time frame’s rolling three-year
periods, the fund placed in the category’s top quartile
more than 82% of the time. And while the fund’s
standard deviation has been modestly higher than its
typical peer’s, it has staved off loss better and gained
more in rising markets: Versus the category norm, its
upside capture ratio is 113%; its downside is 97%.
The fund has essentially matched the bogy during
downturns, while enjoying 117% of its upside.
That risk/reward profile owes to a strategy focused
on fundamentals, giving Nygren and Herro freedom to
pursue value wherever they find it. Indeed, roughly
35% of assets are currently invested in stocks residing
in the large-growth square of the Morningstar Style
Box. Provided a company’s share price implies a
discount of at least 40% to estimated intrinsic value,
it’s a candidate for this fund’s portfolio.
With just 20 names, and with assets split roughly
50/50 between domestic and foreign stocks, the fund
is a focused best-ideas vehicle. And while its
since-inception risk profile is attractive,
volatility-averse investors may prefer Nygren and
Herro’s more expansive funds.
For those comfortable with its concentration and
nontraditional approach to value investing, however,
this fund warrants a close look. Over time, investors
have been well compensated for its risks.
Address:
Harris Associates LP
Chicago, IL 60602-3790
800-625-6275
Web Address:
Inception:
10-02-06
Advisor:
Harris Associates L.P.
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$1000
Add: $100 IRA: $1000
Min Auto Inv Plan:
$500
Add: $100
Sales Fees:
No-load
Management Fee:
1.00% mx./0.85% mn.
Actual Fees:
Mgt:0.96% Dist:
.
Expense Projections:
3Yr:$365
5Yr:$633 10Yr:$1398
Income Distribution:
Annually
Data through January 31, 2014
Oakmark Global Select I
Ticker
Status Yield Total Assets
Mstar Category
OAKWX Open
0.8% $1,553 mil
World Stock
94% 99% 97% 93% 96% 98% 94% 95%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 01-14
Historical Profile
Return
Risk
Rating
High
Above Avg
Highest
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
5.0
12.5
15.5
Portfolio Analysis
12-31-13
Share change since 09-13 Total Stocks:20 Sector
Country
% Assets
CNH Industrial NV
Industrl
Netherlands
5.59
Kering
Cnsmr Cyc France
5.37
Daimler AG
Cnsmr Cyc Germany
5.27
Diageo PLC
Cnsmr Def
U.K.
5.08
Canon, Inc.
Industrl
Japan
4.87
K hne & Nagel Internatio
Industrl
Switzerland
4.86
Credit Suisse Group
Finan Svs Switzerland
4.81
Oracle Corporation
Technology United States
4.72
Daiwa Securities Co., Lt
Finan Svs Japan
4.72
Intel Corp
Technology United States
4.66
Bank of America Corporat
Finan Svs United States
4.62
JPMorgan Chase & Co
Finan Svs United States
4.60
TE Connectivity Ltd
Technology Switzerland
4.59
Directv
Comm Svs United States
4.57
Liberty Interactive Corp
Technology United States
4.53
American International G
Finan Svs United States
4.53
Medtronic, Inc.
Hlth care United States
4.52
Capital One Financial Co
Finan Svs United States
4.50
FedEx Corporation
Industrl
United States
4.45
Adecco SA
Industrl
Switzerland
4.05
Current Investment Style
Market Cap %
Giant
45.5
Large
49.8
Mid
4.8
Small
0.0
Micro
0.0
Avg $mil:
47,007
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
United States 48
Switzerland 19
Japan
10
Netherlands 6
France
6
Regional Exposure
% Stock
UK/W. Europe 42
Japan
10
Asia X Japan 0
N. America 48
Latn America 0
Other
0
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 40.46
.
BasicMat 0.00
. . .
CnsmrCyc11.20
.
22 11
FinanSvs 29.26
.
30 14
Real Est 0.00
. . .
Sensitive 49.42
.
CommSrvs 4.81
.
6 5
Energy 0.00
.
5 4
Industrl 25.11
.
27 10
Technlgy 19.50
.
33 18
Defensive10.11
.
CnsmrDef 5.35
.
11 4
Hlthcare 4.76
.
5 4
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
5.1
Stocks
94.9
Bonds
0.0
Other
0.0
Foreign
51.8
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.38
4.20
-11.05
4.03
8.13
1.01
2.03
NMF
5.17
0.17
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.40
1.42
1.46
4.42
1.50
0.91
0.74
1.12
0.62
0.61
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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