-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FnljWonijlPhoj8ulSmwOz59/5jDSrltxV2oYZQDygBG5UQUMfyWzXPtQZcFg0Bi XnMXk1+JQRsnVgLI+u62sw== 0001047469-99-029571.txt : 19990811 0001047469-99-029571.hdr.sgml : 19990811 ACCESSION NUMBER: 0001047469-99-029571 CONFORMED SUBMISSION TYPE: 497K2 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990803 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARRIS ASSOCIATES INVESTMENT TRUST CENTRAL INDEX KEY: 0000872323 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 497K2 SEC ACT: SEC FILE NUMBER: 033-38953 FILM NUMBER: 99676762 BUSINESS ADDRESS: STREET 1: HARRIS ASSOCIATES LP STREET 2: TWO N LASALLE ST STE 500 CITY: CHICAGO STATE: IL ZIP: 60602-3790 BUSINESS PHONE: 8004769625 MAIL ADDRESS: STREET 1: HARRIS ASSOCIATES LP STREET 2: TWO NORTH LASALLE STREET STE 500 CITY: CHICAGO STATE: IL ZIP: 60602-3790 497K2 1 497K2 [GRAPHIC] ------------------------------------ THE OAKMARK FAMILY OF FUNDS Fund Profiles - August 4, 1999 CLASS I SHARES ------------------------------------ THE OAKMARK FUND THE OAKMARK SELECT FUND THE OAKMARK SMALL CAP FUND THE OAKMARK EQUITY & INCOME FUND THE OAKMARK INTERNATIONAL FUND THE OAKMARK INTERNATIONAL SMALL CAP FUND THE OAKMARK GLOBAL FUND NO-LOAD FUNDS MANAGED BY HARRIS ASSOCIATES L.P. [LOG0] OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- These Profiles summarize key information about the Funds that is included in the Funds' prospectus. The Funds' prospectus includes additional information about the Funds, including a more detailed description of the risks associated with investing in the Funds that you may want to consider before you invest. You may obtain the prospectus and other information about the Funds at no cost by calling us at 1-800-OAKMARK (1-800-625-6275) or accessing our Web site at www.oakmark.com. THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN U.S. EQUITY SECURITIES. INVESTMENT STRATEGY The Oakmark Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. Although the adviser invests the Fund's assets primarily in U.S. stocks, the Fund may invest in securities of non-U.S. companies. Foreign securities may entail additional risks, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory practices similar to those that apply to U.S. issuers. 1 [PHOTO] FUND PORTFOLIO MANAGER Robert J. Sanborn, CFA, is an executive vice president and portfolio manager of The Oakmark Fund. He has been the manager of The Oakmark Fund since its inception in August 1991. Sanborn joined Harris Associates L.P. in 1988. - ------------------------------------------------------------------------------- SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark's Class I shares for each calendar year since the Fund's inception on August 5, 1991. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on August 5, 1991 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right shows the average annual return of the Fund's Class I shares for the periods indicated. The S&P 500 Index, an unmanaged index that reflects no operating costs, is included as a benchmark for long-term performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1992 1993 1994 1995 1996 1997 1998 - ------------------------------------------------------------ 48.90% 30.50% 3.31% 34.42% 16.21% 32.59% 3.74%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 12/31/92 9/30/98 - --------- --------- 15.40% -13.83%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99 [GRAPH}
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - -------------------------------------------------------------------- OAKMARK 8/5/91 7.64% 20.08% 26.04% - -------------------------------------------------------------------- S&P 500 INDEX* 22.76% 27.85% 20.15% - --------------------------------------------------------------------
*THE S&P 500 IS A BROAD MARKET-WEIGHTED AVERAGE DOMINATED BY BLUE-CHIP STOCKS. 2 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK SELECT FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK SELECT FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN A NON-DIVERSIFIED PORTFOLIO OF U.S. EQUITY SECURITIES. INVESTMENT STRATEGY The Oakmark Select Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. The Fund invests in approximately 20-40 stocks. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its estimated worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK SELECT FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may be out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. Although the adviser invests the Fund's assets primarily in U.S. stocks, the Fund may invest in securities of non-U.S. companies. Foreign securities may entail additional risks, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory practices similar to those that apply to U.S. issuers. There are risks associated with investing in a concentrated portfolio that may work to the advantage or disadvantage of the investor. Since the Fund may invest up to 25% of its assets in a single portfolio security, the appreciation or depreciation of such a security will have a greater impact on the Fund's share price, and the Fund's share price can be expected to fluctuate more than the share price of a comparable "diversified" fund. 3 [PHOTO] FUND PORTFOLIO MANAGER William C. Nygren, CFA, is a vice president and portfolio manager of The Oakmark Select Fund. He has been the manager of The Oakmark Select Fund since its inception in November 1996. Prior to managing The Oakmark Select Fund, Nygren was the director of research for Harris Associates L.P. from 1990 to 1998. He joined Harris Associates L.P. in 1983. - -------------------------------------------------------------------------------- SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark Select Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark Select's Class I shares for each calendar year since the Fund's inception on November 1, 1996. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on November 1, 1996 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right shows the average annual return of the Fund's Class I shares for the periods indicated. The S&P 500 Index, an unmanaged index that reflects no operating costs, is included as a benchmark for long-term performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1997 1998 - --------------- 55.02% 16.22%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 12/31/98 9/30/98 - --------- --------- 21.49% -17.23%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99 [GRAPH]
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - -------------------------------------------------------------------- OAKMARK SELECT 11/1/96 19.65% N/A 39.96% - -------------------------------------------------------------------- S&P 500 INDEX* 22.76% n/a 30.50% - --------------------------------------------------------------------
*THE S&P 500 IS A BROAD MARKET-WEIGHTED AVERAGE DOMINATED BY BLUE-CHIP STOCKS. 4 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK SMALL CAP FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK SMALL CAP FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN EQUITY SECURITIES OF U.S. COMPANIES WITH SMALL MARKET CAPITALIZATIONS. INVESTMENT STRATEGY The Oakmark Small Cap Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among small capitalization companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its estimated worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Under normal market conditions, the Fund invests at least 65% of its total assets, valued at the time of investment, in "small cap companies," as defined in the Fund's prospectus. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK SMALL CAP FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Stock prices of small cap companies tend to be more volatile, and there may be fewer buyers for them than for the stocks of large companies. Therefore, an investment in a small cap fund may be more volatile and entail greater risk to capital than an investment in a fund that invests in larger companies. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. Although the adviser invests the Fund's assets primarily in U.S. stocks, the Fund may invest in securities of non-U.S. companies. Foreign securities may entail additional risks, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory practices similar to those that apply to U.S. issuers. 5 [PHOTO] FUND PORTFOLIO MANAGER Steven J. Reid, CFA, is a vice president and portfolio manager of The Oakmark Small Cap Fund. He has been the manager of The Oakmark Small Cap Fund since its inception in November 1995. Prior to managing The Oakmark Small Cap Fund, Reid was a senior research analyst with Harris Associates L.P. from 1985 to 1995. He joined Harris Associates L.P. in 1980. - ------------------------------------------------------------------------------- SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark Small Cap Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark Small Cap's Class I shares for each calendar year since the Fund's inception on November 1, 1995. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on November 1, 1995 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right shows the average annual return of the Fund's Class I shares for the periods indicated. The Russell 2000 Index, an unmanaged index that reflects no operating costs, is included as a benchmark for long-term small cap performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1996 1997 1998 - ------------------------- 39.79% 40.51% -13.16%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 12/31/98 9/30/98 - --------- --------- 17.65% -26.83%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99 [GRAPH]
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - -------------------------------------------------------------------- OAKMARK SMALL CAP 11/1/95 -11.06% N/A 17.75% - -------------------------------------------------------------------- RUSSELL 2000 INDEX* 1.50% n/a 14.14% - --------------------------------------------------------------------
*THE RUSSELL 2000 INDEX MEASURES THE PERFORMANCE OF SMALLER COMPANIES, AND REPRESENTS APPROXIMATELY 10% OF THE TOTAL VALUE OF PUBLICLY TRADED COMPANIES IN THE U.S. 6 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK EQUITY AND INCOME FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK EQUITY AND INCOME FUND SEEKS HIGH CURRENT INCOME AND PRESERVATION AND GROWTH OF CAPITAL. THE FUND INVESTS PRIMARILY IN A DIVERSIFIED PORTFOLIO OF U.S. EQUITY AND FIXED INCOME SECURITIES. INVESTMENT STRATEGY The Oakmark Equity and Income Fund's equity investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its estimated worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. The Fund generally invests 50-65% of its total assets in equity securities, 25-50% in U.S. Government securities and other debt securities and up to 20% in unrated or lower rated debt securities. The Fund may invest in debt securities of corporate issuers that meet the adviser's investment criteria, and may invest in U.S. government securities when yields offer an attractive investment alternative or for liquidity reasons. The Fund usually holds the corporate debt securities in which it invests until they mature, but it may sell them earlier if a sale is warranted. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK EQUITY AND INCOME FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. Investment in lower-grade debt securities involves greater investment risk, including the possibility of issuer default or bankruptcy. In addition, lower-quality bonds may be less sensitive to interest rate changes and are generally more sensitive to adverse economic changes or individual corporate developments. Furthermore, the markets for lower-grade debt securities tend to be less liquid than 7 [PHOTO] FUND PORTFOLIO MANAGER Clyde S. McGregor, CFA, is a vice president and portfolio manager of The Oakmark Equity and Income Fund. He has been the manager of The Oakmark Equity and Income Fund since its inception in November 1995. In addition to managing The Oakmark Equity and Income Fund, McGregor has managed separate accounts for individuals and institutions since 1986. He joined Harris Associates L.P. in 1981. - -------------------------------------------------------------------------------- higher-quality debt securities. Therefore, their prices may be volatile and involve greater risk to capital. The Fund's investments in debt securities are also subject to interest rate risk. Interest rate risk is the risk that bonds will decline in value because of changes in the interest rates. Generally, bonds decrease in value as interest rates rise and increase in value as interest rates fall. The Fund is also subject to the risk that its equity/debt allocation may not be at its most advantageous position at all times, and the Fund's performance can be affected by unexpected changes in the equity or debt markets. SUITABILITY Investors seeking current income and preservation and growth of capital should consider an investment in The Oakmark Equity and Income Fund. The Fund is intended to present a balanced investment program between growth and income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark Equity and Income's Class I shares for each calendar year since the Fund's inception on November 1, 1995. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on November 1, 1995 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right table shows the average annual return of the Fund's Class I shares for the periods indicated. The Lipper Balanced Fund Index Composite, an unmanaged composite comprised of 30 balanced funds, is included as a benchmark for long-term balanced performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1996 1997 1998 - ------------------------- 15.29% 26.56% 12.39%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 12/31/98 9/30/98 - --------- --------- 10.54% -6.92%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - -------------------------------------------------------------------- OAKMARK EQUITY AND INCOME 11/1/95 13.09% N/A 18.20% - -------------------------------------------------------------------- LIPPER BALANCED FUND INDEX* 11.56% N/A 16.31% - --------------------------------------------------------------------
*THE LIPPER BALANCED FUND INDEX COMPOSITE IS COMPRISED OF 30 BALANCED FUNDS. 8 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK INTERNATIONAL FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK INTERNATIONAL FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN EQUITY SECURITIES OF NON-U.S. COMPANIES. INVESTMENT STRATEGY The Oakmark International Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. The Fund's investment strategy stresses stock selection rather than primarily focusing on industries or countries. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its estimated worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK INTERNATIONAL FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. An investment in the Fund entails the special risks of foreign investing, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory practices similar to those that apply to U.S. issuers. Foreign securities markets in emerging market countries can be extremely volatile and less liquid. It is expected that these factors will cause the Fund's share price to be more volatile than that of a comparable U.S.-equity only fund. 9 [PHOTO] DAVID G. HERRO [PHOTO] MICHAEL J. WELSH FUND PORTFOLIO MANAGERS David G. Herro, CFA, is a vice president and portfolio manager of The Oakmark International Fund. He has been the manager of The Oakmark International Fund since its inception in September 1992. He joined Harris Associates L.P. in 1992. Michael J. Welsh, CFA, CPA, is a vice president and portfolio manager of The Oakmark International Fund. He has been the co-manager of The Oakmark International Fund since September 1995. Previously, he was an analyst with Harris Associates L.P. He joined Harris Associates L.P. in 1992. - -------------------------------------------------------------------------------- SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark International Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark International's Class I shares for each calendar year since the Fund's inception on September 30, 1992. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on September 30, 1992 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right shows the average annual return of the Fund's Class I shares for the periods indicated. The Morgan Stanley World ex U.S. Index, an unmanaged index that reflects no operating costs, is included as a benchmark for long-term international performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1993 1994 1995 1996 1997 1998 - --------------------------------------------------- 53.58% -9.06% 8.32% 28.02% 3.33% -7.01%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 3/31/93 9/30/98 - --------- --------- 18.40% -19.41%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99 [GRAPH]
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - -------------------------------------------------------------------- OAKMARK INTERNATIONAL 9/30/92 27.03% 12.38% 15.03% - -------------------------------------------------------------------- M.S. WORLD EX U.S. INDEX* 7.37% 8.47% 11.34% - --------------------------------------------------------------------
*THE MORGAN STANLEY WORLD EX U.S. INDEX INCLUDES 19 COUNTRY SUB-INDEXES. 10 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK INTERNATIONAL SMALL CAP FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK INTERNATIONAL SMALL CAP FUND SEEKS LONG-TERM CAPITAL APPRECIATION BY INVESTING PRIMARILY IN EQUITY SECURITIES OF NON-U.S. COMPANIES WITH SMALL MARKET CAPITALIZATIONS. INVESTMENT STRATEGY The Oakmark International Small Cap Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among small capitalization companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. The Fund's investment strategy stresses stock selection rather than primarily focusing on industries or countries. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a company's stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its estimated worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK INTERNATIONAL SMALL CAP FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in a Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. An investment in the Fund entails the special risks of foreign investing, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory practices similar to those that apply to U.S. issuers. Foreign securities markets in emerging market countries can be extremely volatile and less liquid. It is expected that these factors will cause the Fund's share price to be more volatile than that of a comparable U.S.-equity only fund. 11 [PHOTO] DAVID G. HERRO [PHOTO] MICHAEL J. WELSH FUND PORTFOLIO MANAGERS David G. Herro, CFA, is a vice president and portfolio manager of The Oakmark International Small Cap Fund. He has been the manager of The Oakmark International Small Cap Fund since its inception in November 1995. Herro has also managed The Oakmark International Fund since September 1992. He joined Harris Associates L.P. in 1992. Michael J. Welsh, CFA, CPA, is a vice president and portfolio manager of The Oakmark International Small Cap Fund. He has been the co-manager of The Oakmark International Small Cap Fund since May 1997. Welsh has also been the co-manager of The Oakmark International Fund since September 1995. Prior to managing the funds, he was an analyst with Harris Associates L.P. Welsh joined Harris Associates L.P. in 1992. - -------------------------------------------------------------------------------- Stock prices of small cap companies tend to be more volatile, and their markets tend to be less liquid than those of large companies. Therefore, an investment in a small cap fund may be more volatile and entail greater risk to capital than an investment in a fund that invests in larger companies. SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark International Small Cap Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE The bar chart to the upper right shows the actual performance of Oakmark International Small Cap's Class I shares for each calendar year since the Fund's inception on November 1, 1995. The bar chart indicates the volatility of the Fund's historical returns from year to year. Neither the bar chart nor the performance information shown is intended to indicate how the Fund will perform in the future. The highest and lowest returns of the Fund's Class I shares for a calendar quarter since the fund's inception on November 1, 1995 are provided in the chart to the right to indicate the fund's historical short-term volatility. The table to the lower right shows the average annual return of the Fund's Class I shares for the periods indicated. The Morgan Stanley World ex U.S. Index, an unmanaged index that reflects no operating costs, is included as a benchmark for long-term international performance comparisons. ANNUALIZED RETURNS FOR THE PERIOD ENDING 12/31/98 [GRAPH]
1996 1997 1998 - ------------------------ 25.01% -19.91% 9.20%
HIGHEST AND LOWEST QUARTERLY RETURNS [GRAPH]
HIGH LOW QTR ENDED QTR ENDED 3/31/93 9/30/98 - --------- --------- 28.22% -23.91%
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDING 6/30/99
SINCE FUND AND INCEPTION DATE 1 YEAR 5 YEARS INCEPTION - ---------------------------------------------------------------------------- OAKMARK INTERNATIONAL SMALL CAP 11/1/95 54.84% N/A 12.33% - ---------------------------------------------------------------------------- M.S. WORLD EX U.S. INDEX* 7.37% N/A 10.65% - ----------------------------------------------------------------------------
*THE MORGAN STANLEY WORLD EX U.S. INDEX INCLUDES 19 COUNTRY SUB-INDEXES. 12 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- THE OAKMARK GLOBAL FUND - ------------------------------------------------------------------------------- INVESTMENT OBJECTIVE THE OAKMARK GLOBAL FUND SEEKS LONG-TERM CAPITAL APPRECIATION. INVESTMENT STRATEGY The Oakmark Global Fund pursues its investment objective by investing in equity securities which are primarily the common stock of U.S. and non-U.S. companies. Under normal market conditions, the Fund invests between 20-60% of its total assets in the securities of U.S. companies, and between 40-80% of its total assets in the securities of non-U.S. companies. The Fund intends to hold approximately 40 to 50 stocks, and invest in the securities of companies located in at least three countries. Although there is no restriction on the size of the companies in which the Fund invests, ordinarily it invests in mid-sized companies with market capitalizations between $1-8 billion. The Oakmark Global Fund's investment strategy emphasizes a disciplined bottom-up stock selection process. Investment decisions are not based on forecasts of macroeconomic variables, such as interest rates or the economy. Rather, the Fund's adviser, Harris Associates L.P., uses a value investment strategy that evaluates individual companies and seeks investment opportunities among companies whose shares trade in the market at significant discounts to what Harris Associates believes is their true business value. Selected companies are subjected to a comprehensive screening process to isolate the primary reasons why each company is undervalued and may be purchased at a discount from its apparent value. Harris Associates' investment professionals analyze each company to determine whether it has the following characteristics, although not all of the companies selected will have these attributes: positive free cash flows; favorable earnings growth potential; competitive return on equity; and high level of manager ownership. Harris Associates' analysts review a company's ability to generate cash because this measure ultimately determines how the firm builds value for its shareholders. Visits and interviews are an integral part of the research process, as the adviser believes that investing with proven, capable managers reduces the risks of equity investing. The adviser also believes that management's interests are strongly aligned with the interests of its stockholders if their compensation and personal wealth are directly tied to the value of the business. Once the analysts determine that a stock sells at a significant discount to its intrinsic value, the adviser will generally buy a stock if it is priced below 60% of its estimated worth and will generally sell it when it approaches 90% of its worth. The adviser continually monitors the portfolio holdings and sells a holding within a reasonable time after it reaches its sell target. Additional information about the Fund's investments will be available in the Fund's annual and semi-annual reports to shareholders. In the Fund's annual report you will find a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year. You may obtain these reports at no cost by calling us at 1-800-OAKMARK. SIGNIFICANT RISKS OF INVESTING IN THE OAKMARK FUND The primary risk factor of equity investing is the fluctuation of value and possible loss of investment. As with all funds, at any given time, the value of your shares may be worth more or less than the price you paid. You can lose money by investing in the Fund. Market performance tends to be cyclical, and in the various cycles, certain investment styles may be in or out of favor. From time to time, the Fund's investment style may fall out of favor. If the market is not favoring the Fund's investment style, the Fund's gains may not be as big as, or their losses may be bigger than, other equity funds using different investment styles. The Fund invests in the securities of both U.S. and non-U.S. companies. An investment in the Fund entails the special risks of foreign investing, including fluctuations in currency exchange rates, unstable political and economic structures, reduced availability of public information and the lack of uniform financial reporting and regulatory 13 [PHOTO] GREGORY L. JACKSON [PHOTO] MICHAEL J. WELSH FUND PORTFOLIO MANAGERS Gregory L. Jackson is a vice president and portfolio manager of The Oakmark Global Fund. He joined Harris Associates L.P. in July 1998. Previously, he worked as a portfolio manager/analyst for Yacktman Asset Management. Mr. Jackson is responsible for the day-to-day management of the Fund's domestic portfolio. Michael J. Welsh, CFA, CPA is a vice president and portfolio manager of The Oakmark Global Fund. He joined Harris Associates L.P. in 1992. Mr. Welsh manages the day-to-day affairs of the Fund's foreign portfolio. practices similar to those that apply to U.S. issuers. Foreign securities markets in emerging market countries can be extremely volatile and less liquid. It is expected that these factors will cause the Fund's share price to be more volatile than that of a comparable U.S.-equity only fund. Because the Fund intends to limit its holdings to approximately 40 to 50 stocks, the appreciation or depreciation of any one stock will have a greater impact on the Fund's share price than it would if the Fund invested in a larger number of stocks. In addition, mid-cap stocks tend to be more volatile and less liquid than large-cap stocks. SUITABILITY Investors seeking long-term capital appreciation should consider an investment in The Oakmark Global Fund. Although income is considered in the selection of securities, the Fund is not designed for investors whose primary investment objective is income. The Fund is intended for investors with a long-term investment horizon and is not managed for short-term results. FUND PERFORMANCE From time to time, the Fund may quote total return figures in marketing materials. "Total Return" for a period is the percentage change in value during the period of an investment in Fund shares, including the value of shares acquired through reinvestment of all dividends and capital gains distributions. "Average Annual Total Return" is the average annual compound rate of change in value represented by the Total Return for the period. All of these calculations assume the reinvestment of dividends and distributions in additional shares of the Fund. Income taxes are not taken into account. Because the Fund is new, Total Return and Average Annual Total Return information is not available. 14 THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- FEES AND EXPENSES OF THE OAKMARK FAMILY OF FUNDS - ------------------------------------------------------------------------------- ANNUAL OPERATING EXPENSES
- ----------------------------------------------------------------------------------------------------------------------------- EQUITY AND INTERNATIONAL OAKMARK FUND SELECT FUND SMALL CAP INCOME FUND INTERNATIONAL SMALL CAP FUND GLOBAL FUND CLASS I CLASS I FUND CLASS I CLASS I FUND CLASS I CLASS I CLASS I - ----------------------------------------------------------------------------------------------------------------------------- Management 0.93% 0.98% 1.28% 0.74% 1.03% 1.27% 1.00% fee - ----------------------------------------------------------------------------------------------------------------------------- 12b-1 fees None None None None None None None - ----------------------------------------------------------------------------------------------------------------------------- Other expenses 0.15% 0.24% 0.17% 0.57% 0.29% 0.69% .75%* - ----------------------------------------------------------------------------------------------------------------------------- Total Fund operating 1.08% 1.22% 1.45% 1.31% 1.32% 1.96% 1.75%* expenses - -----------------------------------------------------------------------------------------------------------------------------
* "OTHER-EXPENSES" AND "TOTAL FUND OPERATING EXPENSES" FOR THE OAKMARK GLOBAL FUND REFLECT THE EXPENSES THE FUND EXPECTS TO INCUR DURING ITS INITIAL PARTIAL FISCAL YEAR. THE ADVISER HAS AGREED TO REIMBURSE CLASS I SHARES OF THE FUND IF THE ORDINARY OPERATING EXPENSES OF THAT CLASS EXCEED 1.75% OF ITS AVERAGE ANNUAL NET ASSETS. THE AGREEMENT IS EFFECTIVE UNTIL JANUARY 31, 2000 BUT MAY BE TERMINATED BY THE ADVISER ON 30 DAYS' NOTICE TO THE FUND. PURCHASES To make an initial purchase of Class I shares, complete and sign the New Account Registration Form and mail it to the Funds' transfer agent, State Street Bank & Trust Company, Attention: Oakmark Funds, P.O. Box 8510, Boston, Massachusetts 02266-8510, together with a check for the total purchase amount payable to State Street Bank & Trust Company. The Funds' minimum initial investment requirement is $1,000 or $500 in the case of an Educational IRA or Automatic Investment Plan or Payroll Deduction Plan. The minimum subsequent investment requirement is $100. The Trust will not accept cash, drafts, "starter" checks, third party checks, or checks drawn on banks outside the United States. Subsequent purchase options include wire transfer, automatic electronic investment, payroll deduction investment and telephone investment. Call 1-800-OAKMARK, then choose menu option 2. The Funds may also be purchased through brokers and banks. REDEMPTIONS You may redeem shares by written request to State Street Bank & Trust, Attention: Oakmark Funds at its address stated above. The request must: 1. identify the account number; 2. specify shares or dollar amounts to be redeemed; 3. be signed in ink by all account owners exactly as their names appear on the account registration; and 4. a signature guarantee may be required. You may also redeem by calling the Funds' Voice Response System at 1-800-OAKMARK and following the verbal instructions or by exchanging shares into another Fund by calling 1-800-OAKMARK and choosing menu option 2. NOTE: The Oakmark Global Fund imposes a redemption fee equal to 2% of the proceeds of the sale if you sell your Class I shares within 90 days after you buy them. Effective August 16, 1999, the same redemption fee will apply to the Class I shares of the Oakmark Select Fund, The Oakmark Small Cap Fund, The Oakmark International Fund and The Oakmark International Small Cap Fund. DISTRIBUTIONS Distributions, if any, are paid at least annually and may consist of long-term capital gains, short-term capital gains and income dividends. Distributions are reinvested in additional shares unless otherwise specified. 15 The table to the right is intended to help you understand the costs and expenses that an investor in the Fund may bear on a $10,000 investment over various time periods assuming: 1. a 5% annual rate of return, 2. the operating expense percentages shown to the left remain constant, 3. reinvestment of all distributions, and 4. redemption at the end of each time period (see chart).
- ---------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------- OAKMARK FUND CLASS I $110 $340 $590 $1310 - ---------------------------------------------------------------------------- SELECT FUND CLASS I $120 $380 $660 $1470 - ---------------------------------------------------------------------------- SMALL CAP FUND CLASS I $150 $460 $790 $1740 - ---------------------------------------------------------------------------- EQUITY AND INCOME FUND CLASS I $130 $410 $710 $1570 - ---------------------------------------------------------------------------- INTERNATIONAL FUND CLASS I $130 $410 $720 $1590 - ---------------------------------------------------------------------------- INTERNATIONAL SMALL CAP FUND CLASS I $200 $620 $1060 $2290 - ---------------------------------------------------------------------------- GLOBAL FUND CLASS I $180 $550 $950 $2070 - ----------------------------------------------------------------------------
OF COURSE, ACTUAL COSTS MAY BE HIGHER OR LOWER. USE THIS EXAMPLE TO COMPARE COSTS OF INVESTING IN OTHER FUNDS. TAXES Each Fund intends to make distributions that are taxable either as ordinary income or as capital gains. Dividends from investment income and net short-term capital gains are taxable as ordinary income. Distributions of long-term capital gains are taxable as long-term gains regardless of the length of time you have held your Fund shares. Distributions will be taxable to you whether received in cash or reinvested in Fund shares. YEAR 2000 As you may know, some computer systems used today will be unable to process date related information because they are not programmed to distinguish between the year 2000 and the year 1900. Harris Associates, like many other businesses, is taking steps, such as testing internal and external systems, to ensure that the computer systems on which the smooth operation of the Funds depends will continue to function properly. Based on the information currently available, the adviser does not anticipate any material impact on the delivery of services currently provided, but there can be no guarantee that the adviser's preparations will be sufficient to avoid any adverse impact on the Funds. In addition, Year 2000 issues may affect the business results and prospects of companies, domestic or foreign, whose stocks are held by a Fund, as well as the ability of issuers of bonds held by a Fund to meet their interest and principal payment obligations to their bond holders. Although the adviser considers the status of companies' preparations for Year 2000, such considerations have not had a material effect on the adviser's, decision to buy or sell securities for the Funds thus far. INVESTMENT ADVISER Harris Associates L.P., a Chicago-based investment management firm, is the adviser to The Oakmark Family of Funds. In addition to managing The Oakmark Funds, the firm manages equity, balanced and international portfolios for individuals and institutions nationwide. OTHER SERVICES The Funds offer investments through Traditional, Roth, Education, SIMPLE and SEP IRA Plans. 16 [GRAPHIC] [LOGO] P.O. Box 8510 Boston, MA 02266-8510 -----END PRIVACY-ENHANCED MESSAGE-----