6
Morningstar Analyst Rating
09-25-13
Œ
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
25.89
20.93
16.55
19.41
16.84
10.85
20.95
25.45
22.52
21.13
18.02
13.14
Total Return %
23.70
29.22
-14.07
16.22
56.30
-41.06
-0.51
30.60
14.12
19.09
38.04
-8.46
+/-MSCI EAFE
7.56
11.90
-1.93
8.47
24.52
2.32
-11.68
4.26
0.58
-1.16
-0.55
7.48
+/-MSCI WexUS
13.66
12.39
-0.36
5.07
14.85
4.47
-17.16
3.95
-2.50
-1.82
-2.79
6.49
Income Return %
0.00
2.66
0.65
0.95
1.08
6.64
0.68
1.97
2.81
1.48
0.83
0.87
Capital Return %
23.70
26.56
-14.72
15.27
55.22
-47.70
-1.19
28.63
11.31
17.61
37.21
-9.33
Total Rtn % Rank Cat
1
2
66
2
2
37
94
14
39
74
59
22
Income $
0.00
0.44
0.13
0.16
0.12
1.39
0.17
0.44
0.59
0.27
0.11
0.13
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.10
4.25
3.48
1.00
0.05
0.00
0.00
Expense Ratio %
.
1.06
1.06
1.08
1.17
1.10
1.05
1.10
1.11
1.20
1.25
1.31
Income Ratio %
.
1.90
1.63
1.21
1.32
2.32
1.65
1.80
1.32
1.40
1.03
1.34
Turnover Rate %
.
38
45
51
53
41
50
37
14
21
34
24
Net Assets $mil
23,772
10,796
6,988
6,688
4,393
2,592
7,300
8,005
5,816
4,677
3,509
1,721
Performance
09-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-9.31 33.23 23.95 4.36 56.30
5.70 -10.73 14.41 7.65 16.22
2.27 2.12 -20.42 3.41 -14.07
16.80 -10.14
8.18 13.82 29.22
5.35 3.76 13.16
. .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE WexUS
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
13.16 1.60
3.07
3 11,316
17.41 6.94 10.75
1 11,741
40.79 17.02 24.31
1 14,079
13.93 5.46
7.98
1 14,788
14.42 8.07
8.16
1 19,611
11.63 3.62
2.86
1 30,048
12.16 6.70
.
6 55,920
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
13.49
1
0.38
31
13.14
1
1.11
87
10.17
2
1.31
85
Potential Capital Gain Exposure: 20% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
40.79
3 Yr
13.93
High
High
5 Yr
14.42
High
High
10 Yr
11.63
High
Avg
Incept
11.11
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
MSCI EAFE
Alpha
5.1
5.1
Beta
1.00
1.00
R-Squared
90
90
Standard Deviation
18.35
Mean
13.93
Sharpe Ratio
0.80
Morningstar’s Take
by Shannon Zimmerman 09-25-13
Oakmark International now ranks as the fifth-largest
fund in the foreign large-blend peer group. While its
focus on highly liquid large caps mitigates the risks of
asset bloat, it doesn’t eliminate them. Roughly one
third of assets are invested in the top 10, and the fund
ranks among the largest owners of two European
banks: Lloyds LLOY and Intesa Sanpaolo ISP. Moreover,
while the vast majority of assets are invested in large
caps, the fund’s combined stake in mid- and small-cap
firms hovers near 10%. For those stocks especially, the
fund risks moving prices in the wrong direction should
managers David Herro and Rob Taylor seek to build or
exit the positions.
So far, however, size hasn’t held back
performance. Through Sept. 24, 2013, an annualized
gain of nearly 38.2% places in the category’s top
percentile, a position the fund also holds in the three-,
five, and 10-year periods. Its annualized 15-year
showing (12%) ranks in the sixth percentile.
The fund’s recent and long-haul success owes to a
sensible, clearly repeatable strategy. Like all Oakmark
managers, Herro and Taylor are strict value investors.
They cull picks from the approved-for-purchase list
maintained by Oakmark’s research analysts, and,
along with financial health, shareholder-aligned
management teams, and solid growth prospects, they
require a discount of at least 40% to their estimate of
intrinsic value. As holdings approach those estimates,
the pair pares position sizes, allocating assets to firms
trading at deeper discounts to the team’s view of the
businesses’ actual worth.
That strategy explains its sharply reduced exposure
to Japan. At the close of 2012, nearly 25% of assets
were invested in companies domiciled there.
Following dramatic gains for Japanese equities, the
fund’s stake now stands at just more than 15%.
Burgeoning assets here raise red flags that bear
watching closely. But owing to deft execution of a
sound strategy, Oakmark’s history of closing funds
before size impedes performance, and the managers’
own substantial investment here, this fund remains a
best-in-class option.
Address:
Harris Associates LP
Chicago, IL 60602-3790
800-625-6275
Web Address:
Inception:
09-30-92
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:
1.00% mx./0.80% mn.
Actual Fees:
Mgt:0.88% Dist:
.
Expense Projections:
3Yr:$337
5Yr:$585 10Yr:$1294
Income Distribution:
Annually
Data through September 30, 2013
Oakmark International I
Ticker
Status Yield Total Assets
Mstar Category
OAKIX Open
1.7% $24,157 mil
Foreign Large Blend
96% 98% 98% 98% 96% 95% 96% 95% 92%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 09-13
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 EAFE
Performance Quartile
(within Category)
History
10.0
15.0
20.0
26.0
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:58 Sector
Country
% Assets
Credit Suisse Group
Finan Svs Switzerland
4.88
Daimler AG
Cnsmr Cyc Germany
4.10
Intesa Sanpaolo
Finan Svs Italy
3.65
BNP Paribas
Finan Svs France
3.46
Lloyds Banking Group PLC
Finan Svs U.K.
3.07
Allianz SE
Finan Svs Germany
2.76
Fiat Industrial SpA
Industrl
Italy
2.70
Orica Ltd.
Basic Mat
Australia
2.65
Daiwa Securities Co., Lt
Finan Svs Japan
2.62
Bayerische Motoren Werke
Cnsmr Cyc Germany
2.58
Canon, Inc.
Industrl
Japan
2.53
Willis Group Holdings PL
Finan Svs United States
2.45
K hne & Nagel Internatio
Industrl
Switzerland
2.36
Adecco SA
Industrl
Switzerland
2.36
Check Point Software Tec
Technology Israel
2.08
AMP Limited
Finan Svs Australia
2.06
Kering
Cnsmr Cyc France
2.02
Hennes & Mauritz AB
Cnsmr Cyc Sweden
2.02
Honda Motor Co Ltd
Cnsmr Cyc Japan
2.02
Holcim Ltd
Basic Mat
Switzerland
1.99
Current Investment Style
Market Cap %
Giant
47.9
Large
42.4
Mid
7.6
Small
2.1
Micro
0.0
Avg $mil:
24,361
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
Switzerland 19
Japan
15
U.K.
14
France
12
Germany
12
Regional Exposure
% Stock
UK/W. Europe 71
Japan
15
Asia X Japan 6
N. America 5
Latn America 0
Other
3
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 63.67
.
BasicMat 8.42
.
13 7
CnsmrCyc26.05
.
26 18
FinanSvs 29.20
.
31 23
Real Est 0.00
. . .
Sensitive 22.90
.
CommSrvs 0.00
. . .
Energy 0.00
. . .
Industrl 17.07
.
22 15
Technlgy 5.83
.
12 6
Defensive13.42
.
CnsmrDef 9.83
.
14 5
Hlthcare 3.59
.
8 3
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
4.7
Stocks
92.3
Bonds
0.0
Other
3.0
Foreign
96.8
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.39
-5.78
-0.27
-18.90
-1.75
1.03
NMF
NMF
NMF
NMF
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.06
1.46
0.96
5.32
2.06
0.99
0.92
0.98
0.98
0.74
©
2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or
timely. Past performance isnoguaranteeof future results.Accessupdated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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