Bill Nygren, CIO-US, Harris l Oakmark.
Important information
• The Fund invests primarily in large equity securities of U.S. companies and may be more volatile due to concentration risks.
• The Fund is subject to equities and foreign exchange risks.
• The Fund may hold equities having a value bias which may continue to be underpriced by the market for sustained periods of time.
• The Fund may use financial derivative instruments ("FDI") for hedging, efficient portfolio management and investment purposes which may involve counterparty/credit, liquidity, valuation, volatility and over-the-counter transaction risks. In adverse circumstances, the Fund may suffer significant losses in relation to use of FDI.
• This investment involves risks and investors may suffer substantial or total loss of their investment fund.
• Investor should not invest in the Fund solely based on the information provided in this webpage and should read the prospectus for details, including the risk factors.
Where skill meets precision - turn uncertainty into opportunity
Selling your investments when markets appear to be in crisis mode may feel like the right thing to do. However, decades’ worth of market data show that staying invested through volatile times is a better way to achieve your long-term financial goals1. Time in the market is far more important – and fruitful – than trying to time the market. While market volatility is stressful, for well-prepared investors, it can provide an excellent opportunity to pick up high-quality companies at bargain prices.
For Harris | Oakmark, the US stock market already looked attractive for value investors due to the dramatic spread in valuations between those handful of companies that drove the returns of the S&P 500 in 2023 and 2024, and everything else. This latest bout of market volatility has made the opportunity set even more compelling2.
The S&P 500 today sells at a P/E multiple which is nearly twice as high as the P/E level that we have in Harris Oakmark large cap strategies. That spread is unusually wide and we think tilts the odds in favor of the value investor. One of the nice things for a value investor today, because the S&P 500 has been so concentrated in large cap technology companies, the cheap stocks are spread out across most other industries so I think there’s an unusual opportunity to put together a very well diversified portfolio today in low P/E stocks across lots of industries.”
Reasons to invest
The Fund trades at a valuation significantly below that of the S&P 500*, but with comparable EPS growth and a higher free cash flow yield.
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Source: Morningstar, Harris Associates. Past performance is not a guarantee of its future results. S&P 500 TR Index is the reference index of the Fund. The Russell 1000 Value Index, which measures the performance of the large-cap value segment of the US equity market, is included for information only.
- The Investment Team do not rely on any single valuation method. Rather they use a unique in-house valuation methodology which combines a range of valuation techniques including valuing intangibles (unlike traditional GAAP accounting), to calculate a stock’s intrinsic value.
- This methodology can result in any stock qualifying as a value stock (including ‘fallen growth stocks’) as long as they are trading at a discount of at least 30% to their intrinsic value, growing, and run by management teams that act in the best interests of shareholders.
- The investment team is benchmark-agnostic, buying companies based on absolute value, not relative value, without regard to sectors or industries.
- This high-conviction approach creates a portfolio with high active share and 40-60 stocks, often providing diversification benefits for investors with existing passive and active equity exposure.
- The Fund has a medium term investment horizon, as the team patiently waits for stocks’ share prices to rise and reflect their true intrinsic value.
The Fund is ranked in the 1st quartile for performance among its Morningstar Peer Group** for 3, 5 years and since inception and 2nd quartile for 1 year.
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Source: Morningstar, Harris Associates. Past performance is not a guarantee of its future results.
*** *** ^
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The portfolio management team
William C. Nygren, CFA
Partner, Portfolio Manager and Chief Investment Officer – U.S.
Harris | Oakmark
Michael A. Nicolas, CFA
Partner, Portfolio Manager, Investment Analyst
Harris | Oakmark
Robert F. Bierig
Partner, Portfolio Manager and U.S. Investment Analyst
Harris | Oakmark
The firm
Harris | Oakmark, an affiliate of Natixis Investment Managers
Found in 1976, with US$95 billion of assets under management, Harris | Oakmark manages US, global, and international equity strategies. The firm employs an intensive, fundamental in-house research process to identify companies trading at a significant discount to managers' estimates of intrinsic business value.
Source: Harris | Oakmark, as of 31/03/2025.
Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 15 active managers. Ranked among the world’s largest asset managers with more than US$1.3 trillion assets under management, Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.
Source: Natixis Investment Managers, as of 31/12/2024.
Fund details
Learn more about the Harris Associates U.S. Value Equity Fund and its investment approach
Interested in finding out more?
Discuss with your financial advisor or connect with us.
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1 Source: Three reasons to stay invested in volatile times https://www.im.natixis.com/en-intl/insights/portfolio-construction/2023/three-reasons-to-stay-invested-in-volatile-times
2 Source: Factset, Harris Associates, Price to Earnings ratios of S&P 500 from January 1, 2023 - March 31, 2025
* Source: Harris | Oakmark, as of March 31, 2025
** Source: Morningstar, Harris | Oakmark as of March 31, 2025. Past performance is not a guarantee of future results.
*** 2024 Asian Private Banker Asset Management Awards for Excellence were issued by Asian Private Banker, reflecting product performance, asset gathering, service quality and fund selector feedback as at 31 August 2023. For award’s details and methodology, please refer to https://asianprivatebanker.com/awards/asset-management-awards-for-excellence-2024/. The designation “Best Fund Provider” and "Best Commended" are the award name only given by Asian Private Banker and is not indicative of the performance or returns of any funds. Past performance of the manager is not necessarily indicative of its future performance.
^ Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. LSEG Lipper Fund Awards Singapore 2024 is based on the performance of the Harris Associates U.S. Value Equity Fund - R/A (USD) over 3 years as at 31 December 2023. For the award’s details and methodology, please refer to https://www.lipperfundawards.com/methodology. From LSEG Lipper Fund Awards © 2024 LSEG. All rights reserved. Used under license.
This webpage has been issued by Natixis Investment Managers Hong Kong Limited. Information herein is based on sources Natixis Investment Managers Hong Kong Limited believe to be accurate and reliable as at the date it was made. Natixis Investment Managers Hong Kong Limited reserve the right to revise any information herein at any time without notice. The above Fund data is for information only and does not constitute any offer or solicitation to buy or sell securities and no investment advice or recommendation is given in this webpage. Investment involves risks. The Fund presented herein may use financial derivatives instruments for investment, hedging risk management, and/or efficient portfolio management purposes. This involves significant risk and is usually more sensitive to price movements. Investors should read the Fund Prospectus and the Product Key Fact Statement (KFS) for further details including risk factors before investing. Past performance information presented is not indicative of future performance. Positive dividend yield does not imply positive returns. Source: Natixis Investment Managers. If investment returns are not denominated in HKD/USD, USD-/HKD-based investors are exposed to exchange rate fluctuations. The fund presented in this webpage is authorized by the Securities and Futures Commission (“SFC”) for sale to the public in Hong Kong. SFC authorization is not an official recommendation or endorsement of a scheme nor does it guarantee the commercial merits or its performance. It does not mean the fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. This webpage has not been reviewed by the SFC. Natixis Investment Managers may decide to terminate its marketing arrangements for this fund in accordance with the relevant legislation.