**A Message to Our Valued Shareholders**
We are thrilled to have received an overwhelming response to our invitation to answer your questions. While we cannot address every inquiry in this commentary, we appreciate your feedback and suggestions. We will respond to additional questions mid-quarter.
Several of you asked about our non-U.S. investments, and our international team will provide insights in a separate article later this quarter. Your suggestions for enhancing the shareholder experience are being reviewed by our operations team. Personal finance and tax questions are best addressed by your financial advisors, who are more familiar with your individual circumstances.
**Frequently Asked Questions**
**Will Oakmark Offer an ETF?**
We have a proposal in registration with the SEC for an Oakmark ETF based on our large-cap investment strategy. We look forward to sharing details once the registration is effective.
**The Upcoming Election**
We believe economic forces are stronger than political forces, and the stock market has historically performed well under both Republican and Democratic administrations. A change in administration could lead to business consolidation, benefiting our holdings with potential acquisitions.
**Tax-Friendly Investing**
Our long-term investment approach is naturally tax-friendly, and we take steps to minimize capital gains distributions. We are pleased to report that our 2024 capital gains distribution will be zero for all our domestic and global funds.
**Oakmark Equity and Income Fund**
This fund has delivered returns close to the S&P 500 with substantially less risk. We believe it offers a convenient way to manage bond and stock investments, with the added benefit of tax efficiency.
**Oakmark Select Fund**
While the fund has underperformed the Oakmark Fund in recent years, we believe our concentrated investment approach will ultimately lead to higher returns over the long term.
**Portfolio Manager Investments**
Our portfolio managers invest their personal assets in the Oakmark Funds, demonstrating their commitment to our investment approach. We believe this alignment of interests is essential for our success.
**Interest Rates and Bond Yields**
With interest rates rising, bonds now offer attractive yields, making them a more viable investment option. Our Oakmark Bond Fund and Oakmark Equity and Income Fund have benefited from these changes.
**Value Investing**
We believe value investing is alive and well, and our approach goes beyond traditional measures like low P/E and P/B ratios. We seek to invest in companies with strong fundamentals and growth potential.
**ESG and Diversity, Equity, and Inclusion**
While we do not offer ESG funds, we believe in investing in companies with good governance and aligning our interests with those of our shareholders. We also strive to maintain a diverse and inclusive workforce.
**Retirement Plans**
I, William Nygren, have no plans to retire soon. Our team of investment professionals is well-equipped to manage the funds, and we have a succession plan in place.
Thank you for your continued support and trust in Oakmark. We are committed to delivering strong investment returns and exceptional service to our shareholders.
Leave a Reply