Harris Associates L.P. (Harris|Oakmark), adviser to the Oakmark U.S. Large Cap ETF (NYSE: OAKM), and an affiliate of Natixis Investment Managers, announced the launch of OAKM. OAKM is an active, fully transparent ETF that seeks long-term capital appreciation by investing in a diversified portfolio of common stocks of larger U.S. companies and is the first ETF offered by Harris|Oakmark.
The Oakmark U.S. Large Cap ETF is managed by Bill Nygren, Robert Bierig and Michael Nicolas, all of whom also manage the Oakmark Fund. The ETF employs the firm’s consistent value investment philosophy to identify quality companies priced at a discount to the management team’s estimate of intrinsic value. OAKM, unconstrained by sector and holding typically 30 to 40 U.S. large-cap companies, seeks competitive long-term performance by investing in a focused portfolio grounded in disciplined, bottom-up research.
“We are excited to offer our value-based approach to long-term investing for clients who prefer the convenience of ETFs,” said Bill Nygren.
Mr. Nygren joined Harris|Oakmark in 1983 and is also a co-portfolio manager of the Oakmark Select Fund. He has received many accolades during his investment career, including being named Morningstar’s Domestic Stock Manager of the Year in 2001.* Mr. Bierig joined Harris|Oakmark in 2012 and is also the co-portfolio manager of the Oakmark Select Fund. Mr. Nicolas joined Harris|Oakmark in 2013 and is also a co-portfolio manager of the Oakmark Equity and Income Fund.
“OAKM combines our value investing experience with the benefits of an active ETF, such as transparency, intra-day liquidity and the potential for tax-efficient investing,” said Robert Bierig and Michael Nicolas.
Learn more about OAKM at www.oakmark.com/OAKM.
*According to Morningstar, the Morningstar Manager of the Year award is presented to portfolio managers based on the managers’ (i) “ability to generate exceptional returns;” (ii) “willingness to align their interests with shareholders;” and (iii) “courage to stay with their strategies in order to produce superior risk-adjusted returns in the end.”
Understanding the Risks
Oakmark U.S. Large Cap ETF (OAKM) / Investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objective will be achieved. The Fund is actively managed and does not seek to replicate a specific index. Exchange-Traded Fund (ETFs) are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of ETF’s shares may trade at a premium or discount to its net asset value (NAV), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF’s ability to sell its shares. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Brokerage commissions will reduce returns. The Fund invests primarily in large capitalization securities, which may be unable to respond quickly to new competitive challenges or opportunities, attain the high growth rate of successful smaller companies, or be out of favor under certain market conditions. The Fund tends to be invested in a relatively focused portfolio of securities, thus the appreciation or depreciation of any one security held will have a greater impact on the Fund’s net asset value versus investing in a larger number of securities. Common stocks are subject to special risks. As the Fund is new, there is a limited operating history and there can be no assurance it will grow to an economically viable size, in which case it may cease operations and require investors to liquidate or transfer their investments. These and other risk considerations, such as market, sector or industry, large shareholder, and value style, are described in detail in the Fund’s prospectus.
Oakmark Fund / Tends to be invested in a relatively small number of securities. As a result, the appreciation or depreciation of any one security held will have a greater impact on the net asset value than it would invested in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the volatility.
Oakmark Select Fund / Because the Oakmark Select Fund is non-diversified, the performance of each holding will have a greater impact on total return and may make returns more volatile than a more diversified fund. The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.
Oakmark Equity and Income Fund / Invests in medium- and lower quality debt securities that have higher yield potential but present greater investment and credit risk than higher quality securities, which may result in greater share price volatility. An economic downturn could severely disrupt the market in medium or lower grade debt securities and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest. The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.
Before investing, carefully consider fund investment objectives, risks, charges and other expenses. For this and other information that should be read carefully, please request a prospectus and summary prospectus by calling 1-800-OAKMARK (625-6275) (mutual funds) or 1-800-458-7452 (ETF) or visiting oakmark.com.
Harris Associates L.P. is the Fund’s investment adviser. The Oakmark ETFs are distributed by Foreside Fund Services, LLC. Harris Associates L.P. and Harris Associates Securities L.P. are not affiliated with Foreside Fund Services, LLC.
Natixis Distribution, LLC (Member FINRA | SIPC), is a marketing agent for the Oakmark Funds and Oakmark ETF.
