(PUB) Investing 2016

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Data through June 30, 2016 FINRA members: For internal or institutional use only.
Oakmark Equity & Income I Ticker
OAKBX
Yield
1.1%
Total Assets
$16,199 mil
Mstar Category
Allocation--50% to 70%
Equity
Benchmark 1: Morningstar Mod Tgt Risk TR USD
Benchmark 2: Morningstar Mod Tgt Risk TR USD
Morningstar Analyst Rating 06-23-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ¶ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
16.0
18.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Average
QQQQ
Above Avg
4 4 7 4 4 4 4 1 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
( & & ) ) * ) & * ) ) Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 06-16 History
25.88 26.88 21.56 25.54 27.74 27.05 28.50 32.65 31.91 28.57 28.67 NAV
10.82 11.97 -16.18 19.84 9.50 0.64 9.05 24.25 6.93 -4.60 0.35 Total Return %
-2.14 3.34 6.01 -1.94 -2.83 0.05 -2.99 9.94 2.04 -2.80 -4.25 +/- Bmark 1
-2.14 3.34 6.01 -1.94 -2.83 0.05 -2.99 9.94 2.04 -2.80 -4.25 +/- Bmark 2
2.01 2.34 1.44 1.36 0.88 1.35 1.01 0.58 0.83 1.06 0.00 Income Return %
8.81 9.64 -17.62 18.47 8.62 -0.71 8.04 23.66 6.10 -5.65 0.35 Capital Return %
58 6 4 78 87 39 88 21 39 89 94 Total Rtn % Rank Cat
0.50 0.60 0.39 0.29 0.22 0.38 0.27 0.17 0.27 0.34 0.00 Income $
1.31 1.51 0.57 0.00 0.00 0.47 0.72 2.55 2.72 1.53 0.00 Capital Gains $
0.86 0.83 0.81 0.85 0.79 0.77 0.78 0.77 0.74 0.75 0.78 Expense Ratio %
1.88 2.14 1.93 1.59 1.04 0.93 0.84 0.89 0.85 1.06 0.95 Income Ratio %
81 67 65 78 91 47 29 25 18 25 . Turnover Rate %
10,851 12,830 11,538 15,609 18,079 17,596 17,461 19,298 19,776 16,841 15,446 Net Assets $mil
Performance 06-30-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 7.91 -3.49 3.27 1.41 9.05
2013 6.18 0.99 8.18 7.11 24.25
2014 1.78 3.19 -1.87 3.75 6.93
2015 0.91 0.06 -6.95 1.55 -4.60
2016 0.77 -0.42 — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -0.42 -2.82 -2.82 99 9,958
6 Mo 0.35 -4.25 -4.25 94 10,035
1 Yr -5.18 -6.74 -6.74 96 9,482
3 Yr Avg 5.86 0.25 0.25 52 11,862
5 Yr Avg 5.68 -0.12 -0.12 61 13,181
10 Yr Avg 6.28 0.53 0.53 16 18,389
15 Yr Avg 7.32 1.07 0.03 2 28,872
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 3.87 55 1.88 72
5 Yr (estimated) 4.24 59 1.37 65
10 Yr (estimated) 5.07 16 1.14 50
Potential Capital Gain Exposure: 21% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -5.18
3 Yr 5.86 Avg High QQQ
5 Yr 5.68 Avg +Avg QQQ
10 Yr 6.28 +Avg -Avg QQQQ
Incept 9.92
Other Measures Standard Index Best Fit Index
Alpha -0.7 0.5
Beta 1.19 0.77
R-Squared 89 92
Standard Deviation 8.84
Mean 5.86
Sharpe Ratio 0.68
Portfolio Analysis 03-31-16
Total Stocks: 46
Share change since 12-31-15 Sector YTD Ret % % Assets
TGeneral Motors Co Cnsmr Cyc -14.55 4.27
YOracle Corp Technology 12.87 4.06
TBank of America Corporati Finan Svcs -20.56 3.82
YNestle SA ADR Cnsmr Def — 3.30
CVS Health Corp Hlth Care -1.21 3.05
TE Connectivity Ltd Technology -10.52 2.79
Foot Locker Inc Cnsmr Cyc -14.91 2.42
Dover Corp Industrl 14.43 2.41
YPhilip Morris Internation Cnsmr Def 18.03 2.13
Total Fixed Income: 144
Date of
Maturity Amount 000
Value
$000
%
Assets
US Treasury TIP 1.25% 07-15-20 456,030 490,220 2.89
US Treasury TIP 07-15-18 412,523 435,227 2.56
US Treasury TIP 2.125% 01-15-19 220,000 237,500 1.40
Equity Style
Style: Value
Size: Large-Cap
Fixed-Income Style
Duration: —
Quality: —
Value Measures Rel Category
Price/Earnings 13.72 0.79
Price/Book 1.70 0.79
Price/Sales 1.09 0.71
Price/Cash Flow 5.56 0.67
Dividend Yield % 2.68 1.00
Growth Measures % Rel Category
Long-Term Erngs 9.38 1.00
Book Value 2.10 0.85
Sales -0.30 0.22
Cash Flow 10.50 120.00
Historical Erngs 13.51 -4.37
Market Cap %
Giant 39.1 Small 5.5
Large 22.6 Micro 0.4
Mid 32.4 Avg $mil: 34,739
Composition - Net
Cash 9.8
Stocks 63.5
Bonds 17.0
Other 9.7
Foreign 9.1
(% of Stock)
Avg Eff Duration1 —
Avg Eff Maturity —
Avg Credit Quality —
Avg Wtd Coupon 3.22%
1 figure provided by fund as of 03-31-16
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 51.36 1.30
r BasicMat 1.46 0.28
t CnsmrCyc 17.73 1.59
y FinanSvcs 30.39 1.80
u Real Est 1.78 0.28
j Sensitive 29.92 0.83
i CommSrvs 0.00 0.00
o Energy 3.38 0.51
p Industrl 15.76 1.35
a Technlgy 10.78 0.78
k Defensive 18.72 0.77
s CnsmrDef 10.99 1.16
d Hlthcare 7.73 0.72
f Utilities 0.00 0.00
Morningstar's Take by Greg Carlson 06-23-16
While it just lost a promising comanager and has slumped
recently, Oakmark Equity & Income’s veteran skipper and
proven approach continue to merit a Morningstar Analyst
Rating of Silver. On May 6, 2016, Harris Associates, the
fund’s advisor, announced that Matt Logan (a comanager
of this fund since April 2013) was leaving on May 15 to
start his own firm. Logan had joined the firm straight out
of college in 2006 as a research associate and was
promoted to analyst in 2009. Although his departure
represents a loss, the fund remains in good hands. Clyde
McGregor has served as the lead manager since its 1995
inception. He’s 63, but he has not announced any plans
to retire and has comanagers Colin Hudson and Ed
Wojciechowski—both in their 40s and promoted to
comanagersalongwithLogan in2013—onboardaswell.
The fund trailed more than 80% of its category peers
in 2015, and is on pace to do so again in 2016 through
June 20. (It moved to the new allocation 50% to 70%
equity Morningstar Category, which essentially replaces
the moderate allocation category, earlier this year.) Its
recent struggles owe in part to a hefty stake in financials,
which composed 30% of the equity portfolio (double the
category norm) in March 2016. McGregor, like many of
his colleagues at Harris, believes that a number of banks
are trading far too cheaply given their improved balance
sheets and the potential to benefit when interest rates
finally rise. As a result of this slump, the fund’s five-year
return through June 20 is just middling. However, it’s
trounced its typical peer since inception on both a total-
return and risk-adjusted basis, and has also posted an
impressive record since stocks’ October 2007 peak
(arguably a full market cycle).
The fund’s fixed-incomeportfoliohasnormallyplaced
a heavy emphasis on U.S. government- and agency-
backed bonds, but has lately boosted its stake in
corporate debt due to a recent sell-off combined with the
late 2014 hiring of a fixed-income analyst. However, we
don’t expect the fund’s risk profile to change much. It
remains a strong core holding.
Address: Harris Associates LP Minimum Purchase: $1000 Add: $100 IRA: $1000
Chicago, IL 60602-3790 Min Auto Inv Plan: $500 Add: $100
800-625-6275 Sales Fees: No-load
Web Address: Management Fee: 0.75% mx./0.57% mn.
Inception: 11-01-95 Actual Fees: Mgt:0.66% Dist:—
Advisor: Harris Associates L.P. Expense Projections: 3Yr:$240 5Yr:$417 10Yr:$930
Subadvisor: None Income Distribution: Annually
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