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Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
Natixis global asset management
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Natixis global asset management

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  • 1. Harris Associates – Citywire Event Mike Mangan, CFA, Partner and Portfolio ManagerThis material is provided for information only to Professional or Qualified Investors. It must not be distributed to Retail Investors.
  • 2. Harris Associates L.P.Overview• Harris Associates manages U.S. equity, international equity, global equity and balanced portfolios.• 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.• Managers construct portfolios on a stock-by-stock basis and follow a strict buy/sell discipline.• Headquarters: Chicago• Founded: 1976• Assets Under Management: USD 76.2 billion/EUR 55.9 billion (as of 31/12/2012)2
  • 3. Harris Associates Organizational Overview Harris Associates L.P. USD 76.2 billion total assets under management U.S. strategies Global strategies International strategies established 1976 established 1999 established 1992 USD 42.2 billion USD 13.0 billion USD 21.0 billion Large Cap Global All Cap International Concentrated Global International Small Cap Balanced Global Concentrated Japan Offering in Natixis International Funds (Lux) I Harris Associates U.S. Equity Fund Harris Associates Global Equity Fund Harris Associates Concentrated U.S. Equity FundAs of 31 December 2012 3
  • 4. Why Harris Associates in today’s environment?• The new landscape provides an excellent environment for truly active, fundamental oriented managers such as us − Buy high quality businesses trading at a significant discount to our estimate of intrinsic value − Invest in companies expected to grow intrinsic value over time − Invest with management teams that think and act as owners• Focused Portfolios built with only the most attractive stocks our analysts uncover − Harris Associates Concentrated U.S. Equity Fund: Portfolio of 20 best ideas − Harris Associates U.S. Equity Fund: 40-50 stocks where each position can contribute to the portfolio meaningfully• Time horizon is a key factor − 3-5 year investment horizon allows our investment thesis time to play out − Short term market turbulence creates outstanding investment opportunities 4
  • 5. Investment PhilosophyPaying significantly less than our estimate of intrinsic value helpsgenerate investment returns while preserving capital and reducingportfolio risk Confirm growth in intrinsic value. Growth in value Company’s intrinsic value and closing of Identify a wide price/value gap 100 drive investment gap between stock price and performance. intrinsic business value. 60 Company’s stock price Paying significantly less than our estimate of intrinsic value helps generate investment returns while preserving capital and reducing portfolio risk.5
  • 6. Fundamental ResearchOur research effort is proprietary. Our analysts meet regularly withmanagement teams and industry contacts to develop our valuationestimates• Research analysts are generalists; focus on most attractive ideas − Conduct intensive, fundamental analysis − Assess management ability, objectives and incentives − Potential catalysts for investment: • Missed earnings expectations • Corporate restructurings/spin-offs • Time horizon: Wall Street overly focused on near-term condition • Fallen angels /“New low” list • Mergers & acquisitions • Management changes 6
  • 7. Approved List – Holdings Under Constant ScrutinyThe Stock Selection Group meeting includes all investmentprofessionals so investment ideas receive the broadest input andscrutiny − Stock Selection Group (SSG) • Weekly meeting for all investment professionals • Three voting members • Robert M. Levy, CIO and Portfolio Manager • William C. Nygren, Portfolio Manager • Clyde S. McGregor, Portfolio Manager • Evaluate existing holdings and introduce new ideas − Approved List • Approximately 150 companies on list • Portfolio Managers build customized portfolios from the Approved List • Once sold, stocks are deleted from the list to encourage new ideas and reduce “maintenance” research7
  • 8. Applied Materials (AMAT) Applied Materials 3-Year Price History 02/15/10-02/15/13 $20 Last 13.74 High on 03/03/11 16.85 Low on 10/03/11 9.85 $15 $10 $5 $0• Attractive Business: Semi-capital equipment is a durable technology franchise. AMAT has a dominant share due to technological prowess and economies of scale. Diversified global revenue mix - 25% China, 20% Taiwan, 19% N. America, 12% S. Korea, 11% Europe, 9% Japan and 4% Rest of the world.• Growing Shareholder Value: Solid financial position with no net debt on the balance sheet. Management is focused on shareholder returns and repurchases shares regularly. Cash flow break-even at cyclical trough which will build as this cycle improves.• Discount to Intrinsic Value: Trading at a PE of only 8.5x 2014E EPS.The analyses and opinions referenced herein represent the subjective views of Harris Associates. Data source: Harris Associates L.P. 8 8
  • 9. Oracle (ORCL) Oracle 3-Year Price History 02/15/10 - 02/15/13 $40 Last 34.81 High on 05/02/11 36.37 Low on 06/30/10 21.46 $30 $20 $10 $0 • Attractive Business: Oracle is the dominant database provider. High switching costs keep their customer churn low and the maintenance revenue stream leads to a high level of recurring revenue. • Growing Shareholder Value: Management has done a great job creating value for shareholders through M&A which consolidated the industry. 7% of shares outstanding over the last 12 months via share repurchases. • Discount to Intrinsic Value: ORCL trades at a PE of just 11x 2013E EPS.The analyses and opinions referenced herein represent the subjective views of Harris Associates. Data source: Harris Associates L.P. 9 9
  • 10. Harris Associates Concentrated Strategy Price-to-Value December 2000 - 2012 125% P/V = 63% P/V = 75% P/V = 61% P/V = 74% 10 Year Return* 7 Year Return* 5 Year Return* 3 Year Return* Harris = 10.3% Harris = 7.3% Harris = 5.7% Harris = 11.4% S&P 500 = 7.1% S&P 500 = 4.1% S&P 500 = 1.7% S&P 500 = 10.9% 100% 75%Avg = 69% 50% 25% 0% Price-to-Value Average Price-to-Value*Annualized gross-of-fees"Price-to-Value” represents the asset-weighted relative attractiveness of the portfolio as a whole. For each holding, we calculate the ratio by dividing the current stock price by our own internalestimate of the stock’s Expected Price/Intrinsic Value (including expected dividends) over our forecast horizon.SOURCE: Harris Associates Internal Equity Research Database. 10 10
  • 11. Harris Associates U.S. EquitiesAppendix
  • 12. Portfolio ManagementHarris Associates We seek to drive investment performance through stock selection − Construct portfolios stock by stock using a bottom-up investment process • Avoid over-diversification • Set security weightings to reflect confidence and expected return • Long-term time horizon leads to low portfolio turnover (generally 25-50%) − Conduct weekly portfolio strategy meetings • Includes representation from the Stock Selection Group • Discuss current and potential holdings • Review security weightings12
  • 13. Investment and Risk ManagementHarris Associates We define risk as the permanent loss of capital − Philosophy • Buy at a substantial discount to intrinsic value • Invest with owner-oriented management teams − Research Process • Conduct intensive, fundamental analysis • Limit analyst research workload to promote thorough, creative effort • Perform regular company reviews, including Devil’s Advocate − Portfolio Management • Achieve adequate portfolio diversification. In general: • No more than 25% in one industry • No more than 10% in one company – Concentrated U.S. Equity Fund • No more than 7% in one company – U.S. Equity Fund • Perform regular peer reviews to ensure compliance with client guidelines13
  • 14. Harris Associates Concentrated U.S. Equity FundPerformance and Portfolio Profile
  • 15. Portfolio Characteristics Harris Associates Concentrated U.S. Equity Fund Portfolio characteristics as of 31 January 2013 Sector Allocation as of 31 January 2013, % Fund Index Sector GICS Classification Fund Index # of Holdings 20 500 Energy 12.2 11.3 % Asset in Top 10 Holdings 53.0 18.9 Materials - 3.6 Industrials 10.7 10.2 Value Measures Fund Index Price/Earnings 11.7 15.1 Consumer Discretionary 31.3 11.6 Price/Book 1.9 2.2 Consumer Staples - 10.7 Price/Sales 1.6 1.4 HealthCare - 12.3 Dividend Yield 1.5 2.2 Financials 24.7 15.7 Information Technology 21.1 18.4 Telecom Services - 3.0 Utilities - 3.4 Market Capitalization Allocation as of 31 January 2013, % Top 10 Holdings by absolute weight as of 31 January 2013, % Market Capitalization Fund Index Security Fund, % > 50 Bln 40.8 52.6 WELLS FARGO & CO 6.6 25 to 50 Bln 18.5 18.6 JPMORGAN CHASE & CO 6.3 PENN NATIONAL GAMING 5.6 10 to 25 Bln 20.3 20.8 DELPHI AUTOMOTIVE PLC 5.0 5 to 10 Bln 10.4 6.5 APPLIED MATERIALS 5.0 2 to 5 Bln 10.0 1.6 AMERICAN INTL GROUP 5.0 1 to 2 Bln - 0.0 STARWOOD HOT.&RES. WORLD 4.9 INTEL CORP 4.9 TIFFANY & CO 4.8 FRANKLIN RESOURCES 4.8Index: S&P 500 TR. Data source: MSCI, BBH.Please see the Reference Information page for important information. 15
  • 16. Harris Associates Concentrated U.S. Equity Fund I/A (USD)Fund Stats Hypothetical Growth of $100 InvestmentISIN LU0647999084 Share class I/A (USD) 150Inception Date 10/08/2011 Fund Size (USD,m) 283.90 140Reference Index S&P 500 TR USD 130 12018 110 Fund Index 16.0016 15.50 1001412 9010 80 08/2011 11/2011 02/2012 05/2012 08/2012 11/2012 8 6 Fund 128.95 Index 138.16 4 Trailing Returns as of Month End, % 3Y 5Y 7Y 10Y Incep. 2 1M 3M YTD 1Y Ann. Ann. Ann. Ann. Ann. 0 Fund at NAV 4.94 9.26 4.94 16.37 - - - - 18.75 2008 2009 2010 2011 2012 Index 5.18 6.75 5.18 16.78 - - - - 24.42 Risk Measures as of Month End 1Y 3Y 5Y 7Y 10Y Alpha -1.39 - - - - Beta 1.06 - - - - R-Squared 0.71 - - - - Sharpe Ratio 1.28 - - - - Fund Std Dev 12.43 - - - - Index Std Dev 10.77 - - - - Tracking Error 4.95 - - - -PERFORMANCE DATA SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS. All data including performance data is sourced from NGAM S.A. as of the date of this material,except where otherwise indicated. More recent performance may be lower or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) so that shares, when redeemed,will be worth more or less than their original cost. Performance shown is net of all fund expenses, but does not include the effect of sales charges, taxation or paying agent charges, and assumes reinvestment ofdividends. If such charges were included, returns would have been lower. Performance for other share classes will be more or less depending on differences in fees and sales charges. For periods when certainshare classes were unsubscribed or not yet created (the "inactive share classes"), performance is imputed using the actual performance of the funds active share class which has been determined by themanagement company as having the closest characteristics to such inactive share class and adjusting it based on the difference in TERs and, where applicable, converting the net asset value of the active shareclass into the currency of quotation of the inactive share class. The quoted performance for such inactive share class is the result of an indicative calculation. Please see additional notes for important information.S&P 500® Index measures the performance of 500 stocks chosen for market size, liquidity, and industry group representation. This Index is shown for comparative purposes only. Index Source: Standard & Poors 16 Data Source: NGAM S.A. As of 31/01/2013
  • 17. Reference InformationHarris Associates Concentrated U.S. Value FundReference information Share class information Reference index S&P 500® Index TR Max sales Share class TER, % Minimum initial investment charge, % Fund inception 10 August 2011 USD/EUR/CHF 15 million, Sub-fund of Natixis International Funds (Lux) I organized as an S - Super institutional 0.85 4.00 GBP 7 million, investment company with variable capital under the laws of the Legal structure and domicile Grand Duchy of Luxembourg and authorized by the CSSF as a I - Institutional 1.25 4.00 USD/EUR/CHF 100,000, GBP 50,000 UCITS R - Retail 2.10 4.00 USD/EUR 1,000, GBP 500 Administrator / Custodian Brown Brothers Harriman (Luxembourg) S.C.A. RE - Retail E 2.70 None USD/EUR 1,000 Auditor PricewaterhouseCoopers S.à.r.l. – Luxembourg N - No trail 1.20 4.00 USD/EUR 100,000, GBP 50,000 Management company NGAM S.A. Investment manager Harris Associates L.P. Share class availability by currency of quotation A = Accumulating, D = Distributing, H- = Hedged Portfolio manager Robert Levy, Mike Mangan, Edward Loeb Austria, Finland, France, Italy, Germany, Luxembourg, Share class USD EUR GBP CHF Registrations Netherlands, Norway, Singapore*, Spain, Sweden, Switzerland, U.K. S - Super institutional A, D A, H-A A, H-A A, H-A ISIN, Bloomberg code I/A(USD) - LU0647999084, NATHCVI LX I - Institutional A, D A, H-A A, H-A A, H-A R - Retail A, D A A, D RE - Retail E A A, H-A N - No trail A H-A H-A Dealing frequency Daily Cutoff time D, 13h30 Luxembourg time Settlement Date D+3RISKS The Fund is subject to special risk considerations, including portfolio concentration risk, geographic concentration risk, and growth/value equities risk. Please refer to the fullProspectus for additional details on risks.S&P 500® Index measures the performance of 500 stocks chosen for market size, liquidity, and industry group representation. This Index is shown for comparative purposes only.Index Source: Standard & Poors.Harris Associates L.P., a subsidiary of Natixis Global Asset Management, is an investment adviser registered with the U.S. Securities and Exchange Commission (IARD No. 106960)and is licensed to provide investment management services in the U.S. The company conducts all investment management services in and from the U.S.*The prospectus together with the “Important Information for Singapore Investors” must at all times accompany this document for offers in Singapore under Sections 304 and 305of the Securities and Futures Act, Chapter 289 of Singapore.This material is provided for information purposes only, and its distribution may be restricted in certain countries and to certain types of investors. The Fund may not be offered orsold in the U.S., to citizens or residents of the U.S., or in any other country or jurisdiction where it would be unlawful to offer or sell the Fund.Please read the prospectus and key investor information carefully before investing, available, if registered in your jurisdiction, from Natixis Global Asset Management offices(ngam.natixis.com) and the following Paying Agents/Representatives: France CACEIS Bank France, 1-3, Place Valhubert, 75013 Paris. Germany Rheinland-Pfalz Bank, Große Bleiche54-56, D-55098 Mainz. Italy State Street Bank SpA, Via Ferrante Aporti, 10, 20125 Milano. Switzerland RBC Investor Services Bank S.A. Esch-sur-Alzette, Zurich branch,Badenerstrasse 567, PO Box 101, CH-8066 Zurich.17
  • 18. Concentrated Value Equity Composite Historical gross of fees performance as of December 31, 2012 Annualized CONCENTRATED S&P 500 EXCESS Periods CONCENTRATED S&P 500 EXCESS 2012 17.4 16.0 1.4 1-Year 17.4 16.0 1.4 2011 -1.4 2.1 -3.5 3-Year 11.4 10.9 0.6 2010 19.6 15.1 4.5 5-Year 5.7 1.7 4.0 2009 57.9 26.5 31.5 10-Year 10.3 7.1 3.2 2008 -39.7 -37.0 -2.7 15-Year 10.7 4.5 6.2 2007 5.8 5.5 0.3 Since Inception 14.7 9.1 5.5 2006 17.2 15.8 1.4 (1/1/1991) 2005 1.9 4.9 -3.0 2004 13.4 10.9 2.5 2003 40.8 28.7 12.1 2002 -14.3 -22.1 7.8 2001 32.8 -11.9 44.7 2000 9.6 -9.1 18.7 1999 15.2 21.0 -5.8 1998 19.9 28.6 -8.7 1997 29.1 33.4 -4.3 1996 22.6 23.0 -0.4 1995 31.8 37.6 -5.8 1994 -2.7 1.3 -4.0 1993 25.7 10.1 15.6 1992 30.6 7.6 23.0 1991 32.7 30.5 2.2Past performance is no guarantee of future results. Current performance may be lower or higher than the performancedata quoted. The performance presented does not reflect the deduction of investment advisory fees. The client’s return will bereduced by the advisory fees and other expenses it may incur in the management of its account. The advisory fee,compounded over a period of years, will have an adverse effect on the value of the client’s portfolio.TheS&P 500 Total Return Index is ais a broad market-weighted average of 500 large-capitalization stocks commonlyis unmanaged andthe U.S. cannot investThe S&P 500 Total Return Index market capitalization-weighted index U.S. blue-chip companies. This index used to represent investorsdirectly in thisAll returns reflect reinvested dividends and capital gains distributions. This indextaxes. Benchmarkinvestors are not invest directly report of theequity market. index. This benchmark calculates reinvested dividends net of withholding is unmanaged and returns cannot covered by theindependent Benchmark returns are not covered by the report of the independent verifiers.in this index. verifiers.Copies of the verification report and the examination report are available upon request.See accompanying notes to performance.Source: Harris Associates 18
  • 19. Concentrated Value Equity Composite Historical net of fees performance as of December 31, 2012 Annualized CONCENTRATED S&P 500 EXCESS Periods CONCENTRATED S&P 500 EXCESS 2012 16.2 16.0 0.2 1-Year 16.2 16.0 0.2 2011 -2.4 2.1 -4.5 3-Year 10.3 10.9 -0.5 2010 18.4 15.1 3.4 5-Year 4.6 1.7 3.0 2009 56.4 26.5 30.0 10-Year 9.4 7.1 2.3 2008 -40.4 -37.0 -3.4 15-Year 9.9 4.5 5.4 2007 5.3 5.5 -0.2 Since Inception 13.8 9.1 4.7 2006 16.6 15.8 0.8 (1/1/1991) 2005 1.3 4.9 -3.6 2004 12.8 10.9 1.9 2003 40.0 28.7 11.3 2002 -14.8 -22.1 7.3 2001 32.0 -11.9 43.9 2000 8.8 -9.1 17.9 1999 14.4 21.0 -6.6 1998 19.1 28.6 -9.5 1997 28.3 33.4 -5.1 1996 21.7 23.0 -1.3 1995 30.9 37.6 -6.7 1994 -3.4 1.3 -4.7 1993 24.6 10.1 14.5 1992 29.5 7.6 21.9 1991 31.6 30.5 1.1Performance data shown represents past performance and is not a guarantee of future results. More recent performance may belower performance is no guarantee of future results. Current performance may be lower or higher so that shares, whenPast or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) than the performanceredeemed, will be worth more or less than their original cost. Please see Composite Disclosure and Additional Notes for importantdata quoted.informationThe S&P 500 Total Return Index is a broad market-weighted average of U.S. blue-chip companies. This index is unmanaged and investors cannot investThe S&P 500 Total Return Index is a market capitalization-weighted index of 500 large-capitalization stocks commonly used to represent the U.S. equity market. Alldirectly in this index. dividends and capital gains distributions. dividends net of withholding taxes. Benchmark returns this index. Benchmark returns arereturns reflect reinvested This benchmark calculates reinvested This index is unmanaged and investors cannot invest directly inare not covered by the report of theindependent the reportnot covered by verifiers. of the independent verifiers.Copies of the verification report and the examination report are available upon request.See accompanying notes to performance.Source: Harris Associates 19
  • 20. Performance Footnotes Harris Associates L.P. Concentrated Value Equity Composite January 1, 2003 through December 31, 2012 S&P 500 Gross Internal Gross Net Index Composite Benchmark Composite Composite Percentage of Total Firm Return Return Return 3-Yr St Dev 3-Yr St Dev Number of Dispersion Assets Firm Assets Assets Annual Period Ended (%) (%) (%) (%) (%) Accounts (%) ($ 000s) (%) ($ 000s) December 31, 2012 17.4 16.2 16.0 19.5 15.3 36 0.5 1,872,330 2.5 76,197,779 December 31, 2011 -1.4 -2.4 2.1 24.6 19.0 34 0.7 1,478,804 2.3 64,505,053 December 31, 2010 19.6 18.4 15.1 37 0.4 1,583,083 2.6 61,508,850 December 31, 2009 57.9 56.4 26.5 33 0.8 1,473,121 2.9 50,874,779 December 31, 2008 -39.7 -40.4 -37.0 36 0.4 996,412 2.6 37,689,145 December 31, 2007 5.8 5.3 5.5 37 0.7 1,673,529 2.5 65,703,105 December 31, 2006 17.2 16.6 15.8 33 0.4 1,590,399 2.3 68,542,321 December 31, 2005 1.9 1.3 4.9 34 0.2 1,362,660 2.1 63,409,330 December 31, 2004 13.4 12.8 10.9 36 0.5 1,384,163 2.3 60,318,515 December 31, 2003 40.8 40.0 28.7 35 1.3 1,280,146 2.8 46,243,992 I. Harris Associates L.P. (Harris Associates) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Harris Associates has been independently verified for the periods January 1, 1993 through December 31, 2011. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firms policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Concentrated Value Equity Composite has been examined for the periods January 1, 1999 through December 31, 2011. The verification and performance examination reports are available upon request. Harris Associates did not comply with the GIPS standards prior to January 1, 1993. II. Harris Associates is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The general partnership interest in Harris Associates is owned by Harris Associates, Inc., a corporate subsidiary of Natixis Global Asset Management. III. The Concentrated Value Equity Composite was created January 1, 1999. The composite includes all fully discretionary, supervised, institutional, tax-exempt, large/mid cap, concentrated, domestic, equity accounts in excess of $2 million. The reporting currency is U.S. Dollar. A complete list of composite descriptions and policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Both gross and net returns reflect the reinvestment of income and the deduction of transaction costs. Gross returns do not reflect the deduction of investment advisory fees or any other expenses that may be incurred in the management of the account. Effective June 1, 2009, model net returns are calculated by subtracting the highest fee of the standard fee schedule from the gross composite return. From January 1, 2008 to May 31, 2009, model net returns were calculated by subtracting the highest fee charged to any account on a monthly basis from the gross composite return. Prior to January 1, 2008, net returns were based on actual fees. The standard annual fee schedule currently in effect is as follows: 1.00% on the first $10 million plus .50% on the balance of the portfolio. Fees may be higher for mutual funds included in the composite. Actual advisory fees charged may vary depending on, among other things, the applicable fee schedule and portfolio size. Additional information may be found in Part 2A of Form ADV, which is available upon request. IV. The three-year annualized standard deviation measures the variability of gross composite returns and benchmark returns over the preceding 36-month period. The standard deviation is not presented for periods prior to 2011 because it is not required by the GIPS standards. V. For accounts included in the composite for the full presentation period, the asset-weighted standard deviation of account gross returns is presented as a measure of internal dispersion. Internal dispersion is not presented (n/a) for periods with less than five accounts in the composite for the full year, as it is not considered meaningful. VI. Past performance is no guarantee of future results. The results presented above should not be considered a prediction of future performance. Current performance may be lower or higher than the performance data quoted. Financial consultants to whom Harris Associates provides before-fee performance data may use the data only in one-on-one presentations. Gross performance presented does not reflect the deduction of investment advisory fees. VII. The S&P 500 Total Return Index is a broad market-weighted average of U.S. blue-chip companies. This index is unmanaged and investors cannot invest directly in this index. Benchmark returns are not covered by the report of the independent verifiers. For comparison purposes, the index includes the reinvestment of income and other earnings but does not include any trading expenses, management fees, or other costs.20
  • 21. Harris Associates U.S. Equity FundPerformance and Portfolio Profile
  • 22. Portfolio Characteristics Harris Associates U.S. Equity Fund Portfolio characteristics as of 31 January 2013 Sector Allocation as of 31 January 2013, % Fund Index Sector GICS Classification Fund Index # of Holdings 41 696 Energy 7.0 16.3 % Asset in Top 10 Holdings 38.7 27.2 Materials - 3.8 Industrials 17.8 9.1 Value Measures Fund Index Consumer Discretionary 26.4 8.2 Price/Earnings 12.7 14.1 Consumer Staples - 7.2 Price/Book 2.0 1.6 HealthCare 0.5 11.7 Price/Sales 1.5 1.1 Financials 23.3 27.4 Dividend Yield 1.7 2.4 Information Technology 24.9 6.4 Telecom Services - 3.3 Utilities - 6.5 Market Capitalization Allocation as of 31 January 2013, % Top 10 Holdings by absolute weight as of 31 January 2013, % Security Fund, % Market Capitalization Fund Index WELLS FARGO & CO 4.9 > 50 Bln 43.8 42.1 INTEL CORP 4.7 25 to 50 Bln 21.8 17.4 JPMORGAN CHASE & CO 4.2 10 to 25 Bln 24.2 21.5 MASTERCARD A 4.1 5 to 10 Bln 10.1 9.4 ORACLE CORP 3.8 2 to 5 Bln - 8.6 ILLINOIS TOOL WORKS 3.7 1 to 2 Bln - 0.9 FEDEX CORP 3.6 0.5 to 1 Bln - 0.0 GOLDMAN SACHS GROUP 3.3 < 0.5 Bln - 0.0 FRANKLIN RESOURCES 3.3 APPLIED MATERIALS 3.2Index: Russell 1000® Value Index TR. Data source: MSCI, BBH.Please see the Reference Information page for important information. 22
  • 23. Harris Associates U.S. Equity Fund I/A (USD) Fund Stats Hypothetical Growth of $100 InvestmentISIN LU0130102931 Share class I/A (USD) 200Inception Date 21/06/2001 Fund Size (USD,m) 82.55Reference Index Russell 1000® Value TR USD 150 Calendar Year Returns 10050 41.02 Fund Index4030 50 19.69 17.5120 12.88 15.51 16.7710 0.39 0 0 2001 2003 2005 2007 2009 2011-10 -2.13 Fund 168.32 Index 173.51-20 Trailing Returns as of Month End, %-30 3Y 5Y 7Y 10Y Incep.-40 -33.20 1M 3M YTD 1Y Ann. Ann. Ann. Ann. Ann. -36.85-50 Fund at NAV 5.78 9.23 5.78 16.67 12.21 5.71 5.32 7.11 4.58 2008 2009 2010 2011 2012 Index 6.50 8.65 6.50 20.58 14.26 2.70 3.68 8.32 4.86 Risk Measures as of Month End 1Y 3Y 5Y 7Y 10Y Alpha -4.61 -3.44 2.91 1.57 -1.25 Beta 1.03 1.10 1.05 1.04 1.01 R-Squared 0.73 0.87 0.89 0.89 0.88 Sharpe Ratio 1.31 0.65 0.22 0.17 0.30 Fund Std Dev 12.46 18.23 22.17 19.32 16.80 Index Std Dev 11.24 15.88 20.28 17.75 15.78 Tracking Error 4.49 5.44 6.14 5.68 5.49 PERFORMANCE DATA SHOWN REPRESENTS PAST PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS. All data including performance data is sourced from NGAM S.A. as of the date of this material, except where otherwise indicated. More recent performance may be lower or higher. Principal value and returns fluctuate over time (including as a result of currency fluctuations) so that shares, when redeemed, will be worth more or less than their original cost. Performance shown is net of all fund expenses, but does not include the effect of sales charges, taxation or paying agent charges, and assumes reinvestment of dividends. If such charges were included, returns would have been lower. Performance for other share classes will be more or less depending on differences in fees and sales charges. For periods when certain share classes were unsubscribed or not yet created (the "inactive share classes"), performance is imputed using the actual performance of the funds active share class which has been determined by the management company as having the closest characteristics to such inactive share class and adjusting it based on the difference in TERs and, where applicable, converting the net asset value of the active share class into the currency of quotation of the inactive share class. The quoted performance for such inactive share class is the result of an indicative calculation. Please see additional notes for important information. Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. This Index is shown for comparative purposes only. Index Source: Frank Russell Company. 23 Data Source: NGAM S.A. As of 31/01/2013
  • 24. Large Cap Value Equity Composite Historical gross of fees performance as of December 31, 2012 RUSSELL 1000® Annualized RUSSELL 1000® LARGE CAP VALUE S&P 500 Periods LARGE CAP VALUE S&P 500 2012 18.3 17.5 16.0 1-Year 18.3 17.5 16.0 2011 -0.3 0.4 2.1 3-Year 10.5 10.9 10.9 2010 14.3 15.5 15.1 5-Year 3.7 0.6 1.7 2009 46.7 19.7 26.5 10-Year 7.6 7.4 7.1 2008 -39.5 -36.8 -37.0 Since Inception 6.6 4.6 3.5 2007 -0.5 -0.2 5.5 (7/1/1998) 2006 17.6 22.2 15.8 2005 0.7 7.1 4.9 2004 10.6 16.5 10.9 2003 33.3 30.0 28.7 2002 -14.9 -15.5 -22.1 2001 22.9 -5.6 -11.9 2000 21.1 7.0 -9.1 1999 -2.2 7.3 21.0 1998* -2.4 3.1 9.2Past performance is no guarantee of future results. Current performance may be lower or higher than the performance dataquoted. The performance presented does not reflect the deduction of investment advisory fees. The client’s return will be reducedby the advisory fees and other expenses it may incur in the management of its account. The advisory fee, compounded over aperiod of years, will have an adverse effect on the value of the client’s portfolio. ® ®The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.This index is unmanaged and investors cannot invest directly in this index. This benchmark calculates reinvested dividends net of withholding taxes. Benchmarkreturns are not covered by the report of the independent verifiers.The S&P 500 Total Return Index is a broad market-weighted average of U.S. blue-chip companies. This index is unmanaged and investors cannot invest directlyin this index. This benchmark calculates reinvested dividends net of withholding taxes. Benchmark returns are not covered by the report of the independentverifiers.Copies of the verification report and the examination report are available upon request.*July 1 through December 31, 1998.See accompanying notes to performance. 24Data Source: NGAM S.A. As of 31/01/2013
  • 25. Large Cap Value Equity Composite Historical net of fees performance as of December 31, 2012 RUSSELL 1000® Annualized RUSSELL 1000® LARGE CAP VALUE S&P 500 Periods LARGE CAP VALUE S&P 500 2012 17.4 17.5 16.0 1-Year 17.4 17.5 16.0 2011 -1.0 0.4 2.1 3-Year 9.7 10.9 10.9 2010 13.5 15.5 15.1 5-Year 2.9 0.6 1.7 2009 45.6 19.7 26.5 10-Year 6.8 7.4 7.1 2008 -40.0 -36.8 -37.0 Since Inception 5.8 4.6 3.5 2007 -1.0 -0.2 5.5 (7/1/1998) 2006 16.9 22.2 15.8 2005 0.2 7.1 4.9 2004 9.7 16.5 10.9 2003 31.7 30.0 28.7 2002 -15.7 -15.5 -22.1 2001 21.6 -5.6 -11.9 2000 20.4 7.0 -9.1 1999 -2.6 7.3 21.0 1998* -2.7 3.1 9.2Past performance is no guarantee of future results. Current performance may be lower or higher than the performance dataquoted. ® ®The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growthvalues. This index is unmanaged and investors cannot invest directly in this index. This benchmark calculates reinvested dividends net of withholding taxes.Benchmark returns are not covered by the report of the independent verifiers.The S&P 500 Total Return Index is a broad market-weighted average of U.S. blue-chip companies. This index is unmanaged and investors cannot invest directlyin this index. This benchmark calculates reinvested dividends net of withholding taxes. Benchmark returns are not covered by the report of the independentverifiers.Copies of the verification report and the examination report are available upon request.*July 1 through December 31, 1998.See accompanying notes to performance. 25Data Source: NGAM S.A. As of 31/01/2013
  • 26. Performance Footnotes Harris Associates L.P. Large Cap Value Equity Composite January 1, 2003 through December 31, 2012 ® Russell 1000 Gross Internal Gross Net Value Index Composite Benchmark Composite Composite Percentage of Total Firm Return Return Return 3-Yr St Dev 3-Yr St Dev Number of Dispersion Assets Firm Assets Assets Annual Period Ended (%) (%) (%) (%) (%) Accounts (%) ($ 000s) (%) ($ 000s) December 31, 2012 18.3 17.4 17.5 18.3 15.7 13 0.2 3,760,905 4.9 76,197,779 December 31, 2011 -0.3 -1.0 0.4 23.8 21.0 13 0.2 3,204,287 5.0 64,505,053 December 31, 2010 14.3 13.5 15.5 14 0.3 3,330,877 5.4 61,508,850 December 31, 2009 46.7 45.6 19.7 13 1.0 2,878,674 5.7 50,874,779 December 31, 2008 -39.5 -40.0 -36.8 16 0.2 2,046,830 5.4 37,689,145 December 31, 2007 -0.5 -1.0 -0.2 35 1.1 4,589,117 7.0 65,703,105 December 31, 2006 17.6 16.9 22.2 39 0.5 4,285,963 6.3 68,542,321 December 31, 2005 0.7 0.2 7.1 56 0.5 3,869,939 6.1 63,409,330 December 31, 2004 10.6 9.7 16.5 47 0.4 2,766,621 4.6 60,318,515 December 31, 2003 33.3 31.7 30.0 24 1.1 1,528,861 3.3 46,243,992 I. Harris Associates L.P. (Harris Associates) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Harris Associates has been independently verified for the periods January 1, 1993 through December 31, 2011. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firms policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Large Cap Value Equity Composite has been examined for the periods July 1, 1998 through December 31, 2011. The verification and performance examination reports are available upon request. II. Harris Associates is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The general partnership interest in Harris Associates is owned by Harris Associates, Inc., a corporate subsidiary of Natixis Global Asset Management. III. The Large Cap Value Equity Composite was created on October 31, 2000. The composite includes all fully discretionary, supervised, institutional, large-cap, diversified, domestic, equity accounts in excess of $2 million. The reporting currency is U.S. Dollar. A complete list of composite descriptions and policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Both gross and net returns reflect the reinvestment of income and the deduction of transaction costs. Gross returns do not reflect the deduction of investment advisory fees or any other expenses that may be incurred in the management of the account. Effective June 1, 2009, model net returns are calculated by subtracting the highest fee of the standard fee schedule from the gross composite return. From January 1, 2008 to May 31, 2009, model net returns were calculated by subtracting the highest fee charged to any account on a monthly basis from the gross composite return. Prior to January 1, 2008, net returns were based on actual fees. The standard annual fee schedule currently in effect is as follows: 0.75% on the first $15 million plus 0.45% on the balance of the portfolio. Fees may be higher for mutual funds included in the composite. Actual advisory fees charged may vary depending on, among other things, the applicable fee schedule and portfolio size. Additional information may be found in Part 2A of Form ADV, which is available upon request. IV. The three-year annualized standard deviation measures the variability of gross composite returns and benchmark returns over the preceding 36-month period. The standard deviation is not presented for periods prior to 2011 because it is not required by the GIPS standards. V. For accounts included in the composite for the full presentation period, the asset-weighted standard deviation of account gross returns is presented as a measure of internal dispersion. Internal dispersion is not presented (n/a) for periods with less than five accounts in the composite for the full year, as it is not considered meaningful. VI. Past performance is no guarantee of future results. The results presented above should not be considered a prediction of future performance. Current performance may be lower or higher than the performance data quoted. Financial consultants to whom Harris Associates provides before-fee performance data may use the data only in one-on-one presentations. Gross performance presented does not reflect the deduction of investment advisory fees. VII. The Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. This index is unmanaged and investors cannot invest directly in this index. Benchmark returns are not covered by the report of the independent verifiers. For comparison purposes, the index includes the reinvestment of income and other earnings but does not include any trading expenses, management fees, or other costs. 26Data Source: NGAM S.A. As of 31/01/2013
  • 27. Reference Information Harris Associates U.S. Equity Fund Reference information Share class information Reference index Russell 1000® Value Index TR Max sales Share class TER, % Minimum initial investment charge, % Fund inception 21 June 2001 USD/EUR 15 million, GBP 7 million, Sub-fund of Natixis International Funds (Lux) I organized as an S - Super institutional 0.70 4.00 SGD 20 million investment company with variable capital under the laws of the Legal structure and domicile I - Institutional 1.20 4.00 USD/EUR/SGD 100,000, GBP 50,000 Grand Duchy of Luxembourg and authorized by the CSSF as a UCITS R - Retail 2.00 4.00 None Administrator / Custodian Brown Brothers Harriman (Luxembourg) S.C.A. RE - Retail E 2.60 None None Auditor PricewaterhouseCoopers S.à.r.l. – Luxembourg N - No trail 1.20 4.00 USD/EUR 100,000, GBP 50,000 Management company NGAM S.A. Share class availability by currency of quotation Investment manager Harris Associates L.P. A = Accumulating, D = Distributing, H- = Hedged Portfolio manager Robert Levy, Mike Mangan Share class USD EUR GBP SGD Finland, France, Germany, Italy, Luxembourg, Netherlands, Registrations Norway, Peru*, Singapore, Spain, Sweden, Switzerland, Taiwan, S - Super institutional A, D A, H-A A, D A U.K. I - Institutional A, D A, H-A A, D A ISIN, Bloomberg code I/A(USD) - LU0130102931, CDCOLCI LX R - Retail A, D A A, D A RE - Retail E A A N - No trail A H-A H-A Dealing frequency Daily Cutoff time D, 13h30 Luxembourg time Settlement Date D+3RISKS The Fund is subject to special risk considerations, including geographic concentration risk, portfolio concentration risk and growth/value equities risk. Please refer to the fullProspectus for additional details on risks.Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. This Index is shown forcomparative purposes only. Index Source: Frank Russell Company.Harris Associates L.P., a subsidiary of Natixis Global Asset Management, is an investment adviser registered with the U.S. Securities and Exchange Commission (IARD No. 106960)and is licensed to provide investment management services in the U.S. The company conducts all investment management services in and from the U.S.* The Fund is available for investment in Peru to institutional investors regulated by the Peruvian Banking Law or entities qualified as such by the Securities Exchange Commission.The prospectus together with the “Important Information for Singapore Investors” must at all times accompany this document for offers in Singapore under Sections 304 and 305 ofthe Securities and Futures Act, Chapter 289 of Singapore.This material is provided for information purposes only, and its distribution may be restricted in certain countries and to certain types of investors. The Fund may not be offered orsold in the U.S., to citizens or residents of the U.S., or in any other country or jurisdiction where it would be unlawful to offer or sell the Fund.Please read the prospectus and key investor information carefully before investing, available, if registered in your jurisdiction, from Natixis Global Asset Management offices(ngam.natixis.com) and the following Paying Agents/Representatives: France CACEIS Bank France, 1-3, Place Valhubert, 75013 Paris. Germany Rheinland-Pfalz Bank, Große Bleiche54-56, D-55098 Mainz. Italy State Street Bank SpA, Via Ferrante Aporti, 10, 20125 Milano. Luxembourg NGAM S.A., 51, avenue J.F. Kennedy, L-1855 Luxembourg. SwitzerlandRBC Investor Services Bank S.A. Esch-sur-Alzette, Zurich branch, Badenerstrasse 567, PO Box 101, CH-8066 Zurich. 27
  • 28. Additional NotesThis material has been provided for information purposes only to investment service providers or other Professional Clients or Qualified Investors. It is the responsibility of each investment serviceprovider to ensure that the offering or sale of fund shares or third party investment services to its clients complies with the relevant national law.In the UK: This material is provided by NGAM UK Limited which is authorised and regulated by the UK Financial Services Authority (register no. 190258). This material is intended to becommunicated to and/or directed at persons (1) in the United Kingdom, and should not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell securities in any otherjurisdiction than the United Kingdom; and (2) who are authorised under the Financial Services and Markets Act 2000 (FSMA 2000); or are high net worth businesses with called up share capital ornet assets of at least £5 million or in the case of a trust assets of at least £10 million; or any other person to whom the material may otherwise lawfully be distributed in accordance with the FSMA2000 (Financial Promotion) Order 2005 or the FSMA 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (the "Intended Recipients"). To the extent that this material isissued by NGAM UK Limited, the fund, services or opinions referred to in this material are only available to the Intended Recipients and this material must not be relied nor acted upon by anyother persons. Registered Office: NGAM UK Limited, Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.The above referenced entity is a business development unit of Natixis Global Asset Management, the holding company of a diverse line-up of specialised investment management and distributionentities worldwide. The investment management and distribution subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which theyare licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions.Although Natixis Global Asset Management believes the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy, or completeness of such information.Performance data shown represents past performance and is not a guarantee of future results. More recent performance may be lower or higher. Principal value and returns fluctuate over time(including as a result of currency fluctuations) so that shares, when redeemed, will be worth more or less than their original cost. Please see Composite Disclosure and Additional Notes forimportant informationThe provision of this material and/or reference to specific securities, sectors, or markets within this material does not constitute investment advice, or a recommendation or an offer to buy or to sellany security, or an offer of services. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. The analyses, opinions, and certain ofthe investment themes and processes referenced herein represent the views of the portfolio manager(s) as of the date indicated. These, as well as the portfolio holdings and characteristicsshown, are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.This material may not be distributed, published, or reproduced, in whole or in part.All amounts shown are expressed in USD unless otherwise indicated.
  • 29. NGAM UK Sales ContactsDerek BranderEmail: Derek.Brander@ngam.natixis.comPhone: +44 (0) 20 3405 2181James WalkinEmail: James.Walkin@ngam.natixis.comPhone: +44 (0) 20 3405 215629

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