05/12/2021, 14:44 Positioning Portfolios for the Long Term - Harris Associates

INSIGHTS

Positioning Portfolios for the Long Term

March 11, 2020

Portfolio Manager David Herro shares why the recent market volatility allows the firm to position
portfolios that may provide access to good long-term returns.

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Average Annual Total Returns (as of 09/30/2021):

Fund 3 Month 1 Year 3 Year 5 Year 10 Year Inception

OAKIX -5.02% 41.96% 5.60% 8.27% 9.02% 9.28%

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05/12/2021, 14:44 Positioning Portfolios for the Long Term - Harris Associates

Fund 3 Month 1 Year 3 Year 5 Year 10 Year Inception

MSCI EAFE Index -0.66% 26.50% 7.87% 8.88% 7.88% 6.28%

Gross Expense Ratio: 1.06%

Net Expense Ratio: 1.04%
Fund Inception:  09/30/1992
Expense ratios are based on estimated amounts for the current fiscal year; actual expenses may
vary.
Returns for periods of less than one year are not annualized.
The net expense ratio reflects a contractual advisory fee waiver agreement through January 27,
2022.

3 10
Fund 1 Year 3 Year 5 Year Inception
Month Year

OAKEX -1.82% 48.51% 10.58% 9.77% 9.31% 9.33%

MSCI World ex U.S. Small Cal 0.72% 30.15% 9.50% 10.33% 10.03% N/A
Index

Gross Expense Ratio: 1.39%

Net Expense Ratio: 1.37%
Fund Inception:  11/01/1995
Expense ratios are based on estimated amounts for the current fiscal year; actual expenses may
vary.
Returns for periods of less than one year are not annualized.
The net expense ratio reflects a contractual advisory fee waiver agreement through January 27,
2022.

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Past performance is no guarantee of future results. The performance data quoted represents
past performance. Current performance may be lower or higher than the performance data
quoted. The investment return and principal value vary so that an investor’s shares when
redeemed may be worth more or less than the original cost.

To obtain most recent month-end performance data, view it here.

The holdings mentioned comprise the following percentages of the Fund’s total net assets as of
03/31/2021:

Security Title OAKIX OAKEX

BMW 4.0% 0%

Daimler 4.0% 0%

EXOR 1.8% 0%

FCA 0% 0%

G4S 0% 0%

Liberty Global Cl A 1.7% 0%

Liberty Global Cl C 0.3% 0%

Peugeot 0% 0%

Toyota Motor 1.4% 0%

WPP 1.5% 0%

Portfolio holdings are subject to change without notice and are not intended as
recommendations of individual stocks. Current and future portfolio holdings are subject

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05/12/2021, 14:44 Positioning Portfolios for the Long Term - Harris Associates

to risk. Portfolio holdings represent only securities held in the U.S. domiciled Oakmark Funds
and may not be representative of any other portfolio managed by Harris Associates L.P.

View the full list of Oakmark International Fund holdings as of the most recent quarter-end.
View the full list of Oakmark International Small Cap Fund holdings as of the most recent quarter-
end.

The MSCI EAFE Index (Net) is designed to represent the performance of large and mid-cap
securities across 21 Developed Markets countries in Europe, Australasia and the Far East,
excluding the U.S. and Canada. The Index covers approximately 85% of the free float-adjusted
market capitalization in each of the 21 countries. This benchmark calculates reinvested dividends
net of withholding taxes. This index is unmanaged and investors cannot invest directly in this
index.

The MSCI World ex U.S. Small Cap Index (Net) is designed to measure performance of small-cap
stocks across 22 of 23 Developed Markets (excluding the United States). The index covers
approximately 14% of the free float-adjusted market capitalization in each country. This
benchmark calculates reinvested dividends net of withholding taxes. This index is unmanaged
and investors cannot invest directly in this index.

EBIT refers to earnings before interest and taxes and is a measure of a firm’s profit that includes
all incomes and expenses (operating and non-operating) except interest expenses and income
tax expenses.

The funds’ portfolios tend to be invested in a relatively small number of stocks. As a result,
the appreciation or depreciation of any one security held by the Fund will have a greater
impact on the Fund’s net asset value than it would if the Fund invested in a larger number
of securities. Although that strategy has the potential to generate attractive returns over
time, it also increases the Fund’s volatility.

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The stocks of smaller companies often involve more risk than the stocks of larger
companies. Stocks of small companies tend to be more volatile and have a smaller public
market than stocks of larger companies. Small companies may have a shorter history of
operations than larger companies, may not have as great an ability to raise additional
capital and may have a less diversified product line, making them more susceptible to
market pressure.

Investing in foreign securities presents risks that in some ways may be greater than U.S.
investments. Those risks include: currency fluctuation; different regulation, accounting
standards, trading practices and levels of available information; generally higher
transaction costs; and political risks.

The information, data, analyses, and opinions presented herein (including current investment
themes, the portfolio managers’ research and investment process, and portfolio characteristics)
are for informational purposes only and represent the investments and views of the portfolio
managers and Harris Associates L.P. as of the date written and are subject to change and may
change based on market and other conditions and without notice. This content is not a
recommendation of or an offer to buy or sell a security and is not warranted to be correct,
complete or accurate.

Certain comments herein are based on current expectations and are considered “forward-
looking statements”. These forward looking statements reflect assumptions and analyses made
by the portfolio managers and Harris Associates L.P. based on their experience and perception of
historical trends, current conditions, expected future developments, and other factors they
believe are relevant. Actual future results are subject to a number of investment and other risks
and may prove to be different from expectations. Readers are cautioned not to place undue
reliance on the forward-looking statements.

David G. Herro, CFA

Portfolio Manager
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Read more from David's Commentary

Before investing in any Oakmark Fund, you should carefully consider the Fund’s investment
objectives, risks, management fees and other expenses. This and other important information is
contained in a Fund’s prospectus and summary prospectus. Please read the prospectus and
summary prospectus carefully before investing. For more information, please call 1-800-OAKMARK
(625-6275).
Past performance is no guarantee of future results.
This site is intended for residents of the U.S. only. The information on the website does not constitute
an offer for products or services or a solicitation of an offer to any person outside of the United
States who is prohibited from receiving such information under the laws applicable to their place of
citizenship, domicile or residence.

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