Natixis Oakmark International Fund

Natixis Oakmark International Fund
Value-managed international equity allocation
Most American investors have too much exposure to U.S. equities and not enough to
international stocks. U.S. stocks account for only 53% of world equity markets1 – but
they represent 73% of the equity assets in the average American portfolio.2 Consider
Natixis Oakmark International Fund to help expand your equity diversification. The fund
seeks capital appreciation by investing in mid- and large-cap companies located outside
the U.S.
Class A: NOIAX
Class C: NOICX
Inception: 12/15/10
Disciplined value strategy
Managed for long-term growth
International opportunities
Harris Associates, adviser to The Oakmark
Funds, specializes in value investing.
They’ve earned a reputation for a
consistent and patient value approach over
decades of changing markets, and use the
same investment process to manage each
of their U.S. and international funds (see
side 2).
Harris defines risk as permanent loss of
capital. With that in mind, the managers
build the portfolio one stock at a time,
pursuing value opportunities in mid- and
large-cap international companies outside
the United States. The managers maintain
a steadfast belief that investing in
undervalued companies offers attractive
profit potential, regardless of broad market
trends.
Portfolio managers David Herro and Rob
Taylor use a three-to-five-year time horizon
to manage the fund, allowing them to take
advantage of longer-term strategic
opportunities in world markets. In today’s
global marketplace, many developed and
developing countries are growing at a
faster rate than the United States.
Managed by the same award-winning management
team as the Oakmark International Fund
“The biggest challenge for any professional investor is sticking
to their discipline when their discipline is out of favor. This
is where many people falter. At the very wrong time, they
abandon their core beliefs. We’ve avoided that by remaining
almost stubbornly committed to our philosophy.”
– David Herro
Co-manager
PERFORMANCE ANALYSIS (AVERAGE ANNUALIZED TOTAL RETURNS† AS OF 6/30/16)
Class A at NAV
Class A with 5.75% maximum sales charge
MSCI World ex USA Index (Net)3
3 months
YTD
1 year
-7.92%
-13.20
-1.05
-10.17%
-15.34
-2.98
-19.10%
-23.73
-9.84
3 years
-1.98%
-3.89
1.88
Life of class
12/15/10
1.64%
2.47%
0.45
1.38
1.23
2.22
5 years
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative
of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold.
Current performance may be lower or higher than quoted. For most recent month-end performance, visit
ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees
and sales charges. You may not invest directly in an index. †Performance for periods less than one year is cumulative, not
annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any.
FUND PROFILE
1 MSCI All Country World Index as of 12/31/15. 2 2013
Investment Company Institute Fact Book. 3 MSCI World ex
USA Index (Net) is an unmanaged index that is designed to
measure the equity market performance of developed
markets, excluding the United States. You may not invest
directly in an index.
Gross expense ratio 1.31%. Net expense ratio 1.31%. As of
the most recent prospectus, the investment advisor has
contractually agreed to waive fees and/or reimburse
expenses (with certain exceptions) once the expense cap of
the fund has been exceeded. This arrangement is set to
expire on 4/30/17. When an expense cap has not been
exceeded, the gross and net expense ratios may be the
same. Not all share classes are available for purchase by all
investors. See the prospectus for more details.
Q2/2016
Fund management
The fund is managed by Harris Associates L.P., a Chicago-based investment firm
specializing in value investing. The fund’s portfolio managers are David G. Herro,
CFA® and Robert A. Taylor, CFA®, both of whom also manage the Oakmark
International Fund.
Investment philosophy
• Buy stocks selling at a significant discount to intrinsic value,4 which is the price an
informed buyer would pay for the entire company.
• Focus on companies increasing per-share value over time, which can come from
growing revenues and from sensible deployment of free cash flow.
• Invest in companies with management teams that have a personal investment in
the business and are committed to acting in the best interest of shareholders.
Co-manager David Herro is Morningstar’s
International Manager of the Decade
(2000–2009).
Investment process
Invest
Approved list
Managers select stocks from the approved list for
their specific funds
Approximately 120 to 180 securities
Quantitative and
qualitative research
Rigorous analysis is performed to ensure that the
stock meets strict value standards
Criteria screens
Managers and research team screen for
stocks that are worth further consideration
Universe of thousands
of equity securities
All stocks available for investment
THE BOTTOM-UP INVESTMENT PROCESS
RISKS: Value investing carries the risk that a security can continue to be undervalued by the market for long periods of
time. Equity securities are volatile and can decline significantly in response to broad market and economic conditions.
Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency
and information risks. Foreign securities may be subject to higher volatility than U.S. securities, due to varying degrees of
regulation and limited liquidity. These risks are magnified in emerging markets. Concentrated investments in a
particular region, sector, or industry may be more vulnerable to adverse changes in that industry or the market as a whole.
Currency exchange rates between the U.S. dollar and foreign currencies may cause the value of the fund’s investments
to decline.
Before investing, consider the fund’s investment objectives, risks, charges, and
expenses. Visit ngam.natixis.com or call 800-225-5478 for a prospectus or a
summary prospectus containing this and other information. Read it carefully.
NGAM Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment
companies for which advisory services are provided by affiliates of Natixis Global Asset Management, S.A. • NGAM
Distribution, L.P. is located at 399 Boylston Street, Boston, MA 02116. • 800-862-4863 • ngam.natixis.com
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
1046645.5.1
NOIF55-0616
4 The value of a company, based on the net present
value of forecasted cash flows such as future earnings
or dividends.
CFA® and Chartered Financial Analyst® are registered
trademarks owned by the CFA Institute.
Past performance does not guarantee future
results. The Morningstar Manager of the Decade
Award (2000-2009) is selected by Morningstar Fund
analysts. The awards are decided by evaluating the
risks managers assumed to achieve investment return
taking into account asset size, strength of the manager,
strategy, and firm’s stewardship. There are five
nominees for each award: domestic, foreign, and fixedincome.