5
Morningstar FundInvestor
June 2
013
Morningstar Analyst Rating
05-30-13
„
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
30.92
28.50
27.05
27.74
25.54
21.56
26.88
25.88
24.98
23.50
22.02
17.99
Total Return %
8.49
9.05
0.64
9.50
19.84
-16.18
11.97
10.82
8.60
10.36
23.21
-2.14
+/-M* MdTgRk
2.09
-2.99
0.05
-2.83
-1.93
6.01
3.34
-2.13
1.56
-1.12
0.73
4.55
+/-Mstr Md Ag Rk
-0.42
-5.28
2.57
-5.42
-7.71
14.47
3.03
-5.17
-0.25
-3.71
-5.93
10.16
Income Return %
0.00
1.01
1.35
0.88
1.36
1.44
2.34
2.01
1.45
0.91
0.77
1.30
Capital Return %
8.49
8.04
-0.71
8.62
18.48
-17.62
9.63
8.81
7.15
9.45
22.44
-3.44
Total Rtn % Rank Cat
42
88
39
87
78
4
6
58
6
27
24
3
Income $
0.00
0.27
0.38
0.22
0.29
0.39
0.60
0.50
0.34
0.20
0.14
0.24
Capital Gains $
0.00
0.72
0.47
0.00
0.00
0.57
1.51
1.31
0.20
0.59
0.00
0.00
Expense Ratio %
.
0.78
0.77
0.79
0.85
0.81
0.83
0.86
0.89
0.92
0.93
0.96
Income Ratio %
.
0.84
0.93
1.04
1.59
1.93
2.14
1.88
1.36
0.78
1.07
1.71
Turnover Rate %
.
29
47
91
78
65
67
81
112
72
48
73
Net Assets $mil
17,638
17,461
17,596
18,079
15,609
11,538
12,830
10,851
9,513
8,129
5,172
2,748
Performance
05-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-6.03 10.37 10.55 4.52 19.84
4.70 -8.00
5.81 7.44
9.50
4.69 1.17 -12.80 8.97
0.64
7.91 -3.49
3.27 1.41
9.05
6.18
. . . .
Trailing
Total
+/- M* +/- Mstr
%Rank Growth of
Return% MdTgRk Md Ag Rk
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
4.60 1.58
0.35
39 10,460
9.30 1.68
-1.45
43 10,930
16.04 -0.03
-5.52
64 11,604
9.32 -1.46
-3.32
81 13,065
4.56 -0.42
-0.01
47 12,498
8.21 0.42
-0.44
5 22,013
9.15
. .
2 37,184
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
8.78
69
0.49
27
3.96
34
0.57
24
7.43
4
0.72
21
Potential Capital Gain Exposure: 28% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
16.04
3 Yr
9.32
-Avg
+Avg
5 Yr
4.56
Avg
-Avg
10 Yr
8.21
High
-Avg
Incept
10.75
Other Measures
Standard Index
Best Fit Index
M* MdTgRk Mstar Mid Cap TR
Alpha
-1.9
-1.3
Beta
1.06
0.61
R-Squared
87
95
Standard Deviation
10.33
Mean
9.32
Sharpe Ratio
0.91
Morningstar’s Take
by Shannon Zimmerman 05-30-13
Following the January 2012 retirement of Ed
Studzinski, a comanager on Oakmark Equity & Income
since March 2000, lead manager Clyde McGregor
served as this fund’s sole skipper until April 2013.
That’s when Oakmark parent Harris Associates
promoted two domestic-equity investment analysts,
Colin Hudson and Matt Logan, and the firm’s director
of fixed income, Edward J. Wojciechowski, to serve
alongside McGregor as comanagers.
On average, the fund’s new comanagers have
roughly 12.5 years’ experience; McGregor has more
than three decades. He joined Harris in 1981 and ranks
as the firm’s longest-tenured investment professional.
McGregor, who has led this fund since its November
1995 inception, has no plans to retire. The new
appointments were made with eventual succession in
mind, however, and wisely so. While the fund’s new
comanagers are seasoned, only Wojciechowski has
prior portfolio management experience.
Despite the fund’s new management team, little is
likely to change here. McGregor has worked closely
with his new teammates for several years, and given
that Harris tapped its director of fixed income for a
comanager slot, the fund’s bond exposure likely will
remain focused on government and agency debt.
That continuity is reassuring in light of the fund’s
outstanding long-term track record: Its trailing 10- and
15-year returns through May 28, 2013, rank near the
moderate-allocation group’s peak. The fund has been
a relative underachiever lately, however. An
annualized gain of 4.8% over the last five years lands
in the middle of the peer-group pack. The one- and
three-year figures are worse, with both buried deep in
the category’s bottom half.
The fund’s soft patch bears watching, particularly
since performance attribution indicates that stock
selection, especially among health-care names, has
been problematic lately. Investors have little reason to
leave the fund, however. Even during its dry spell,
absolute returns have been solid, and the manager
and strategy behind the fund’s long-haul success are
still in place.
Address:
Harris Associates LP
Chicago, IL 60602-3790
800-625-6275
Web Address:
Inception:
11-01-95
Advisor:
Harris Associates L.P.
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$1000
Add: $100 IRA: $1000
Min Auto Inv Plan:
$500
Add: $100
Sales Fees:
No-load
Management Fee:
0.75% mx./0.57% mn.
Actual Fees:
Mgt:0.67% Dist:
.
Expense Projections:
3Yr:$249
5Yr:$433 10Yr:$966
Income Distribution:
Annually
Data through May 31, 2013
Oakmark Equity & Income I
Ticker
Status Yield Total Assets
Mstar Category
OAKBX Open
0.9% $18,894 mil
Moderate Allocation
61% 60% 56% 51% 63% 68% 66% 74% 75%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 05-13
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
M* MdTgRk
Performance Quartile
(within Category)
History
10.0
13.0
16.0
19.0
22.0
Portfolio Analysis
03-31-13
Total Stocks:52
P/E
YTD % Net
Share change since 12-31-12
Sectors
Ratio Return % Assets
UnitedHealth Group Inc
Hlth care
10.3 15.36 3.35
Dover Corporation
Industrl
14.5 21.61 3.19
Nestle SA ADR
Cnsmr Def
17.9 6.12 3.06
Devon Energy Corp
Energy
.
10.40 3.00
General Dynamics
Industrl
.
12.27 3.00
Philip Morris Internation
Cnsmr Def
16.2 10.88 2.92
MasterCard Incorporated C Finan Svs
22.4 15.84 2.76
Flowserve Corporation
Industrl
17.2 13.94 2.64
Diageo PLC ADR
Cnsmr Def
17.9 3.16 2.58
Date of
Amount
Value % Net
Total Fixed-Income:56
Maturity
$000
$000 Assets
US Treasury Note 1.25%
07-15-20 526,273 628,609 3.35
US Treasury Note 1.375% 07-15-18 532,240 623,386 3.32
US Treasury Note 2.125% 01-15-19 213,829 260,805 1.39
US Treasury Note 1%
09-30-16 199,380 203,103 1.08
Kinetic Concepts 10.5%
11-01-18 47,940 51,895 0.28
Canada Govt 4.25%
12-01-21 36,399 50,499 0.27
Ssif Nev Ltd Partnership
04-14-14 45,090 45,359 0.24
FHLMC 2.25%
03-13-20 25,000 25,322 0.13
FHLMC 2%
08-08-17 24,930 25,103 0.13
Equity Style
Fixed-Income Style
Style: Blend
Size: Large-Cap
Duration:
.
Quality:
.
Avg Eff Duration
.
Avg Eff Maturity
.
Avg Credit Quality
.
Avg Wtd Coupon
2.16%
figure provided by fund
1
1
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.12
2.08
1.19
7.92
1.76
1.07
1.10
0.99
1.16
0.73
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.17
3.81
5.74
8.05
7.69
1.10
3.43
2.65
10.45
1.72
Market Cap %
Giant 26.8
Large 30.4
Mid 40.9
Small
1.5
Micro
0.4
Avg $mil:
20,225
Composition - Net
(% of Stock)
Cash 11.6
Stocks 75.0
Bonds 11.8
Other
1.6
Foreign 14.9
Sector
Weightings
% of
Stocks
Rel M*
MdTgRk High
3 Year
Low
Cyclical 21.79 0.57
BasicMat 0.85 0.15 4 1
CnsmrCyc11.62 1.02 14 9
FinanSvs 9.32 0.55 9 3
Real Est 0.00 0.00
. .
Sensitive 50.18 1.30
CommSrvs 0.00 0.00
. .
Energy 17.80 1.91 20 14
Industrl 26.66 2.05 27 18
Technlgy 5.72 0.47 6 3
Defensive28.03 1.21
CnsmrDef13.58 1.51 21 14
Hlthcare 14.45 1.43 23 14
Utilities 0.00 0.00
. .
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2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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