Natixis International Funds (Lux) I Harris Associates U.S. Large Cap Value Fund Harris Associates U.S. Concentrated Value ...
Harris Associates Organizational Overview                                                 Harris Associates L.P.          ...
Investment TeamHarris Associates U.S. Equity strategy                                                                     ...
Investment PhilosophyHarris Associates U.S. Equity strategy• Paying significantly less than our estimate of intrinsic valu...
Portfolio ManagementHarris Associates U.S. Equity strategy• We seek to drive investment performance through stock selectio...
Investment and Risk ManagementHarris Associates U.S. Equity strategy• We define risk as the permanent loss of capital    –...
Why Harris Associates?People• Stable organisation managed by seasoned investment professionalsPhilosophy• Proven value-inv...
Market EnvironmentHarris Associates U.S. Equity strategy• Investors “hiding under rocks,” influenced by poor returns of pa...
Current Portfolio StrategyHarris Associates U.S. Equity strategy• Stocks: Focus on strongest businesses    – Protection in...
OutlookHarris Associates U.S. Equity strategyThe Environment     • Recent data confirm a slowdown in the economic recovery...
Investment Example: Caterpillar (CAT)Business:World’s largest manufacturer of earthmoving equipment. Also makes engines an...
Investment Example: Applied Materials, Inc. (AMAT)Business:Largest manufacturer of semiconductor wafer fabrication equipme...
Investment Example: Visa (V)Business:World’s largest electronic payments network, with credit, debit, prepaid and ATM serv...
Investment Example: Oracle (ORCL)Business:One of the world’s largest software companies- database and application software...
Portfolio Management           Representative Portfolio - Large Cap Value Equity Strategy                                 ...
Large Cap Value Equity Strategy Portfolio structure as of 30 June 2011                                   Top 10 Holdings  ...
Large Cap Value Equity StrategySignificant Portfolio Changes as of 30 June 2011                  New Buys                 ...
Harris Associates U.S. Large Cap Value Fund I/A (USD)          67.2818
Reference InformationHarris Associates U.S. Large Cap Value FundReference information                                     ...
Portfolio Management                Representative Portfolio - Concentrated Value Equity Strategy                         ...
Concentrated Value Equity Strategy Portfolio structure as of June 30, 2011                                   Top 10 Holdin...
Concentrated Value Equity StrategySignificant portfolio changes as of June 30, 2011                 New Buys              ...
Representative PortfolioHarris Associates Concentrated U.S. Value CompositeHistorical gross of fees performance as of 31 A...
Performance Footnotes                                                                                       Harris Associa...
Reference InformationHarris Associates Concentrated U.S. Value FundReference information                                  ...
Appendix: Global Wholesale ContactsFor further information please contact:Derek BranderDirector, UK Wholesale SalesPhone: ...
Additional NotesThis material has been provided for information purposes only to investment service providers or other Pro...
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Natixis

  1. 1. Natixis International Funds (Lux) I Harris Associates U.S. Large Cap Value Fund Harris Associates U.S. Concentrated Value Fund US Equities - Can Active Management Add Value? October 2011 Michael J. Mangan, CFA, CPA Harris Associates L.P.This material is provided for information only to Professional or Qualified Investors. It must not be distributed to Retail Investors.
  2. 2. Harris Associates Organizational Overview Harris Associates L.P. USD 69.8 billion total assets under management U.S. strategies Global strategies International strategies established 1976 established 1999 established 1992 USD 39.9 billion USD 10.8 billion USD 19.1 billion Large Cap Global All Cap International Concentrated Global Large Cap International Small Cap Balanced Global Concentrated Japan Offering in Natixis International Funds (Lux) I Harris Associates U.S. Large Cap Value Fund Harris Associates Harris Associates Global Value Fund Concentrated U.S. Value FundAs of 30 June 2011 2
  3. 3. Investment TeamHarris Associates U.S. Equity strategy Strategy Team Robert M. Levy, CFA Edward S. Loeb, CFA Michael J. Mangan, CFA, CPA Chairman and CIO Portfolio Manager Portfolio Manager 35 years investment experience 23 years investment experience 23 years investment experience Joined Harris Associates in 1985 Joined Harris Associates in 1989 Joined Harris Associates in 1997 Stock Selection Group (SSG) Robert M. Levy, CFA Clyde S. McGregor, CFA William C. Nygren, CFA Chairman and CIO Portfolio Manager Portfolio Manager 35 years investment experience 34 years investment experience 30 years investment experience Joined Harris Associates in 1985 Joined Harris Associates in 1981 Joined Harris Associates in 1983 U.S. Research Group Henry R. Berghoef, CFA Judson H. Brooks, CFA Anthony P. Coniaris, CFA Kurt C. Funderberg 25 years investment experience 13 years investment experience 12 years investment experience 19 years investment experience Joined Harris Associates in 1994 Joined Harris Associates in 2001 Joined Harris Associates in 1999 Joined Harris Associates in 2000 M. Colin Hudson, CFA Matthew A. Logan, CFA Win Murray Kevin G. Grant, CFA 123years investment experience 6 years investment experience 16 years investment experience 20 years investment experience Joined Harris Associates in 2005 Joined Harris Associates in 2006 Joined Harris Associates in 2003 Joined Harris Associates in 1988 William C. Nygren, CFA John R. Raitt, CFA Edward A. Studzinski, CFA Edward J. Wojciechowski, CFA 30years investment experience 31 years investment experience 26 years investment experience 16 years investment experience Joined Harris Associates in 1983 Joined Harris Associates in 1986 Joined Harris Associates in 1995 Joined Harris Associates in 2005As of 30 June 2011.3
  4. 4. Investment PhilosophyHarris Associates U.S. Equity strategy• Paying significantly less than our estimate of intrinsic value helps generate investment returns while preserving capital and reducing portfolio 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 price4
  5. 5. Portfolio ManagementHarris Associates U.S. Equity strategy• We seek to drive investment performance through stock selection – Construct portfolios stock by stock using a bottom-up investment process • Avoid over-diversification • Large Cap strategy: 40-50 securities • Concentrated strategy: 18-22 securities • Focus: • Large Cap strategy: $5 billion market cap and above • Concentrated strategy: $1 billion market cap and above • Set security weightings to reflect confidence and expected return • Long-term time horizon leads to low portfolio turnover (generally 30-40%) – Conduct weekly portfolio strategy meetings • Includes representation from the Stock Selection Group • Discuss current and potential holdings • Review security weightings5
  6. 6. Investment and Risk ManagementHarris Associates U.S. Equity strategy• 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 7% in one company (10% for the Concentrated strategy) • Perform regular peer reviews to ensure compliance with client guidelines6
  7. 7. Why Harris Associates?People• Stable organisation managed by seasoned investment professionalsPhilosophy• Proven value-investment philosophy with a foundation in fundamental researchProcess• Consistent, disciplined investment processPortfolios• Unlevered with 100% transparency, immediate liquidityPerformance• Focus on capital preservation and long-term growth of capital7
  8. 8. Market EnvironmentHarris Associates U.S. Equity strategy• Investors “hiding under rocks,” influenced by poor returns of past decade – Cash and fixed-income dominate despite low yields – Risk aversion on the rise • Investors unwilling to be exposed to another decline• Despite market recovery since March 2009, stocks still look cheap – Market still 15% below former peak – P/E ratio: 11-12x “trend” earnings – Easy to find safe dividend yields• Stocks face a “wall of worry” – Broad scepticism of future equity-market returns – Macro concerns: double-dip, inflation, foreign crisis – Investors highly stressed 8
  9. 9. Current Portfolio StrategyHarris Associates U.S. Equity strategy• Stocks: Focus on strongest businesses – Protection in case we are wrong on the economy – “Strong get stronger” – Financial flexibility = opportunity • Business expansion, dividends, M&A• Focus on opportunities, not rear-view mirror – Odds favour better returns next decade – Broad scepticism favors stock picking9
  10. 10. OutlookHarris Associates U.S. Equity strategyThe Environment • Recent data confirm a slowdown in the economic recovery. Hiring and housing remain weak, although we see some recent encouraging improvements in Japan, energy/commodity prices, bank lending and layoffs. We believe the current fundamental strength of corporations lessens the risk of another meaningful downturn. • The political fight over the debt ceiling/deficit (and similar issues in Europe) directly impact consumer and business confidence, translating into reduced spending and investment. Until resolved, we expect risk aversion to remain a dominant theme. • Our investment philosophy recognises the reality of unanticipated macro risks. For us, risk is mitigated by a long-term time horizon, a focus on company fundamentals and paying a low price for something of great value.The Market • Despite the strong market recovery over the past two years, investment allocations remain overly cautious. Recent surveys show great distrust for equities even among younger investors whose time horizons extend several decades. Given low bond yields, it will be very difficult for these investors to meet their long-term retirement objectives. • The market’s fundamental resilience reflects strong corporate fundamentals and low expectations for equities. We think investors must raise equity allocations as they recognise the risk/reward advantage for stocks. Valuations are low and robust cash flows offer solid total return possibilities under economic scenarios we think worth considering. These are favourable conditions for long-term oriented, disciplined equity investors.10
  11. 11. Investment Example: Caterpillar (CAT)Business:World’s largest manufacturer of earthmoving equipment. Also makes engines and lift trucks, andhas a large dealer network and financing operations.Analysis (2009):Stock down 60%+ from high as economic crisis hits • Rising fears about dealer/customer financing • Uncertainty regarding long-term industry growthBig exposure to emerging markets/mining • Long-term prospects should be solidCAT financial reserves look fine; did not stray from core financing missionRisk: pension/healthcare underfunding; should be manageable given time horizonHALP intrinsic value assessment: $55+Action/Results: • We begin purchases near $30 in July 2009 • Company fundamentals have exceeded our expectations; our estimates and targets rise • 2012 EBIT estimate up 88% since last year; stock down 20.12% ytd (9/23/11) • We started exiting in mid-2011 at $110-115; possible interest in repurchase Data source: Harris Associates, L.P. 11
  12. 12. Investment Example: Applied Materials, Inc. (AMAT)Business:Largest manufacturer of semiconductor wafer fabrication equipment and LCD panels. Alsoproduces equipment to make solar panels.Analysis (2009):Dominant industry player • Economies of scale = competitive advantageSemi-capital equipment/services is a durable technology franchiseSolid financial position • No net debt on balance sheet; repurchases shares regularlyCompany is cash flow break-even at cyclical trough • Cash flow will build as cycle improvesStock down from mid-20s on cyclical (not secular) issuesAction/Results: • Fundamentals improve, stock price down • Begin purchases March 2009 near $12; stock now at $10.59 (9/23/11) • We believe intrinsic value in low $20’s vs. $19 a year ago • 2012 EBIT estimate up 18% since last year; stock down 23.32% ytd (9/23/11) • We have added to our position in 2011 Data source: Harris Associates, L.P. 12
  13. 13. Investment Example: Visa (V)Business:World’s largest electronic payments network, with credit, debit, prepaid and ATM services formillions of merchants in 170 countries. 60% global market share.Analysis (2010):Exceptionally strong business model • “Toll booth” on electronic payments (now 45% of all transactions – and growing) • Earns about $0.20 per $100 transaction with no credit risk • 55-60% gross margins, very profitableCompetitive and regulatory risks overblown • New systems (e.g. PayPal) join network; generally not threats • Debit regulation will hurt a bit, but not a lotAction/Results: • Stock falls 25% from peak as Fin Reg bill passes Congress • We begin purchases in low $70’s in early 2011 • Final Durbin Amendment eases originally proposed regs • Current price $90.08 (9/23/11); stock still looks cheap given growth prospectsData source: Harris Associates, L.P.13
  14. 14. Investment Example: Oracle (ORCL)Business:One of the world’s largest software companies- database and application software and servicesAnalysis (2011):Maintenance income stream exceptionally valuableHigh switching costs keeps customer churn lowStrong balance sheet and excellent cash-flow generation • Issues relatively few options and consistently buys back stockStrong management team with long positive history • Operational skill, good strategic thinking, value creationRisk: emerging technologies/SaaSAction/Results: • We begin purchases around $26.40 in August 2011 • Forward EBIT multiple at 2009 lows 6.75x; same multiple now 6.0x • Stock trading around $29 (9/23/11)Data source: Harris Associates, L.P.14
  15. 15. Portfolio Management Representative Portfolio - Large Cap Value Equity Strategy Sector Allocation CONSUMER DISCRETIONARY 19.8% CONSUMER STAPLES 2.8% INFORM ATION TECHNOLOGY Carnival 4.3% Colgate-Palmolive 1.7% 19.3% vs 8.6% Comcast Special Cl A 3.6% Walgreen 1.0% Omnicom Group 2.2% UTILITIES 0.8% vs 6.8% Marriott International 2.2% HEALTH CARE 6.5% McDonalds 1.8% Baxter International 4.0% Toyota Motor ADR 1.7% Medtronic 2.5% CarMax 1.2% INDUSTRIALS 16.6% vs 9.4% Disney 1.1% INDUSTRIALS 16.6% CONSUM ER Nike 0.9% Boeing 3.5% DISCRETIONARY Starwood Hotels & Resorts 0.9% Illinois Tool Works 3.1% 19.8% vs 9.0% Republic Services 2.7% ENERGY 16.3% FedEx 2.2% Williams 4.2% Rockwell Automation 2.1% Apache 2.9% Northrop Grumman 1.1% Range Resources 2.5% Caterpillar 1.0%HEALTH CARE6.5% vs 12.3% Ultra Petroleum 2.4% General Dynamics 0.9% CONSUM ER STAPLES National Oilwell Varco 2.3% 2.8% vs 7.2% Transocean 2.1% INFORMATION TECHNOLOGY 19.3% Intel 6.0% FINANCIALS 17.9% Applied Materials 3.6% Wells Fargo 4.2% MasterCard 3.5% JPMorgan Chase 3.8% Texas Instruments 3.2% FINANCIALS ENERGY 17.9% vs 26.7% 16.3% vs 12.4% Franklin Resources 3.5% Visa Cl A 3.0% CME Group 3.3% Allstate 2.3% UTILITIES 0.8% Discover Financial 0.9% Calpine 0.8% 1Based on Harris Associates’ 1 fiscal year forward estimates. Harris Associates Large Cap equity-only weight vs. Russell 1000® Value Index weight is presented in the chart above. The Russell 1000® Value Total Return 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. These holdings are representative of Harris Associates’ Large Cap Value portfolio as of 30/06/2011. The investment return and principal value of this portfolio and any particular holding may fluctuate. Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks. 15
  16. 16. Large Cap Value Equity Strategy Portfolio structure as of 30 June 2011 Top 10 Holdings Weight Intel 5.7% Carnival 4.0% Williams 4.0% Wells Fargo 3.9% Baxter International 3.8% JPMorgan Chase 3.6% Applied Materials 3.4% Comcast Special Cl A 3.4% MasterCard Cl A 3.3% Boeing 3.3% Sector Allocation Portfolio S&P 500 Russell 1000 Value Consumer Discretionary 19.8% 10.6% 9.0% Consumer Staples 2.8% 10.7% 7.2% Energy 16.3% 12.6% 12.4% Financials 17.9% 15.2% 26.7% Health Care 6.5% 11.7% 12.3% Industrials 16.6% 11.3% 9.4% Information Technology 19.3% 17.8% 8.6% Materials 0.0% 3.7% 2.9% Telecommunication Services 0.0% 3.1% 4.7% Utilities 0.8% 3.4% 6.8% 100.0% 100.0% 100.0%Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.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.The Russell 1000 Value Total Return Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. This index isunmanaged and investors cannot invest directly in this index. 16
  17. 17. Large Cap Value Equity StrategySignificant Portfolio Changes as of 30 June 2011 New Buys Increases Final Sales Decreases 3Q 2010 Northrop Grumman CME Group Abbott Labs MasterCard Boston Scientific Johnson & Johnson Lockheed Martin 4Q 2010 Cisco Systems Best Buy Caterpillar Range Resources General Mills Northrop Grumman Republic Services Kroger Ultra Petroleum Safeway Wells Fargo 1Q 2011 Huntington Ingalls* Cisco Systems Hewlett-Packard Caterpillar Toyota Motor ADR CME Group Discover Financial Visa Cl A FedEx Marriott International McDonalds National Oilwell Varco Range Resources Starwood Hotels & Resorts Republic Services Walgreen Wells Fargo 2Q 2011 CarMax CME Group Cl A Bank of New York Mellon Discover Financial Marriott International Cisco Systems National Oilwell Varco Huntington Ingalls Texas Instruments Microsoft Toyota Motor ADR Wells Fargo *Denotes result of a corporate action Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.17
  18. 18. Harris Associates U.S. Large Cap Value Fund I/A (USD) 67.2818
  19. 19. Reference InformationHarris Associates U.S. Large Cap Value FundReference 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 Management company Natixis Global Associates S.A. Share class availability by currency of quotation A = Accumulating, D = Distributing, H- = Hedged Investment manager Harris Associates L.P. Portfolio manager Robert Levy, Mike Mangan Share class USD EUR GBP SGD Finland, France, Germany, Italy, Luxembourg, Netherlands, S - Super institutional A, D A, H-A A, D A Registrations Norway, Peru*, Spain, Sweden, Switzerland, Taiwan, 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 Dealing frequency Daily Cutoff time D, 13h30 Luxembourg timeRussell 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.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 provideinvestment 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 withthe “Important Information for Singapore Investors” must at all times accompany this document for offers in Singapore under Sections 304 and 305 of the Securities and Futures Act, Chapter 289 of Singapore.Distribution of this document may be restricted in certain countries. The Fund is not authorized for sale in all jurisdictions and its offering and sale may be limited by the local regulator to certain types ofinvestors. Please ask your financial advisor if you have any questions. It is the responsibility of your financial advisor to ensure that the offering and sale of Fund shares complies with the relevant national law.The Fund may not be offered or sold 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.This material is distributed for information purposes only. It is not a prospectus and does not constitute an offering of shares. If you would like further information about this Fund, including charges, expenses,and risk considerations, contact your financial advisor for a free prospectus, simplified prospectus, copy of the Articles of Incorporation, the semi and annual reports, and/or other materials and translations thatare relevant to your jurisdiction. For assistance locating a financial advisor in your jurisdiction please call +44 203 405 2154. If the Fund is registered in your jurisdiction, these documents are also available freeof charge from the Natixis Global Associates offices (www.intl.ga.natixis.com) and the paying agents/representatives listed below. Please read the prospectus carefully before investing.Risks Value investing involves risk related to investments in companies experiencing market or financial weakness that may or may not achieve their expected aggressive goals, which may cause the Fund to losemoney. Investment in fewer issuers or concentrating investments by region or sector involves more risk than a fund that invests more broadly. These and other risks of the Fund are described in greater detail inthe Prospectus.19
  20. 20. Portfolio Management Representative Portfolio - Concentrated Value Equity Strategy Sector Allocation INFORM ATION CONSUMER DISCRETIONARY 21.5% HEALTH CARE 5.8% TECHNOLOGY 18.5% vs 17.8% Carnival 6.0% Baxter International 5.8% UTILITIES Comcast Special Cl A 5.4% 3.2% vs 3.4% Penn National Gaming 5.4% INDUSTRIALS 13.7% Starwood Hotels & Resorts 2.7% Boeing 5.3% Tiffany 2.1% Illinois Tool Works 4.6% INDUSTRIALS Robert Half International 2.9% 13.7% vs 11.3% ENERGY 18.2% Caterpillar 0.9% CONSUM ER National Oilwell Varco 4.5% DISCRETIONARY 21.5% vs 10.6% Apache 4.2% INFORMATION TECHNOLOGY 18.5% Range Resources 3.7% Visa Cl A 6.3% Ultra Petroleum 2.9% Intel 6.3%HEALTH CARE Transocean 2.8% Applied Materials 5.9%5.8% vs 11.7% FINANCIALS 19.1% UTILITIES 3.2% Wells Fargo 6.4% Calpine 3.2% JPMorgan Chase 5.7% Franklin Resources 5.2% Discover Financial 1.7% FINANCIALS 19.1% vs 15.2% ENERGY 18.2% vs 12.6% 1 Based on Harris Associates’ 1 fiscal year forward estimates. Harris Associates Concentrated weight vs. S&P 500 Index weight is presented in the chart above. 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. These holdings are representative of Harris Associates’ Concentrated Equity Value portfolio as of 30/06/2011. The investment return and principal value of this portfolio and any particular holding may fluctuate. Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks. 20
  21. 21. Concentrated Value Equity Strategy Portfolio structure as of June 30, 2011 Top 10 Holdings Weight Wells Fargo 6.1% Visa Cl A 6.0% Intel 6.0% Carnival 5.7% Applied Materials 5.6% Baxter International 5.6% JPMorgan Chase 5.4% Comcast Special Cl A 5.1% Penn National Gaming 5.1% Boeing 5.1% Sector Allocation Portfolio S&P 500 Russell 1000 Value Consumer Discretionary 21.5% 10.6% 9.0% Consumer Staples 0.0% 10.7% 7.2% Energy 18.2% 12.6% 12.4% Financials 19.1% 15.2% 26.7% Health Care 5.8% 11.7% 12.3% Industrials 13.7% 11.3% 9.4% Information Technology 18.5% 17.8% 8.6% Materials 0.0% 3.7% 2.9% Telecommunication Services 0.0% 3.1% 4.7% Utilities 3.2% 3.4% 6.8% 100.0% 100.0% 100.0%Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks. 21
  22. 22. Concentrated Value Equity StrategySignificant portfolio changes as of June 30, 2011 New Buys Increases Final Sales Decreases 3Q 2010 Penn National Gaming Dr Pepper Snapple Group 4Q 2010 Range Resources JPMorgan Chase Best Buy Caterpillar Ultra Petroleum Penn National Gaming Kroger Hewlett-Packard Wells Fargo National Oilwell Varco Starwood Hotels & Resorts Tiffany 1Q 2011 Visa Cl A Range Resources Hewlett-Packard Caterpillar Wells Fargo Discover Financial 2Q 2011 Comcast Special Cl A Bank of New York Mellon Discover Financial Tiffany Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.22
  23. 23. Representative PortfolioHarris Associates Concentrated U.S. Value CompositeHistorical gross of fees performance as of 31 August 2011 Annualized CONCENTRATED S&P 500 EXCESS Periods CONCENTRATED S&P 500 EXCESS YTD 2011 -3.6 -1.8 -1.8 1-Year 23.2 18.5 4.7 2010 19.6 15.1 4.5 3-Year 7.5 0.5 7.0 2009 57.9 26.5 31.5 5-Year 5.8 0.8 5.1 2008 -39.7 -37.0 -2.7 10-Year 7.5 2.7 4.8 2007 5.8 5.5 0.3 15-Year 12.2 6.1 6.1 2006 17.2 15.8 1.4 Since Inception 14.7 8.7 5.9 2005 1.9 4.9 -3.0 (1/1/1991) 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 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 a periodof years, will have an adverse effect on the value of the client’s portfolio.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.See accompanying notes to performance.23
  24. 24. Performance Footnotes Harris Associates L.P. Concentrated Value Equity Composite January 1, 2001 through August 31, 2011 S&P 500 Internal Gross Net Index Composite Composite Percentage of Total Firm Return Return Return Number of Dispersion Assets Firm Assets Assets Annual Period Ended (%) (%) (%) Accounts (%) ($ 000s) (%) ($ 000s) August 31, 2011 -3.6 -4.2 -1.8 34 n/a 1,382,500 2.2 63,932,627 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 December 31, 2002 -14.3 -14.8 -22.1 26 1.1 667,862 2.2 30,110,311 December 31, 2001 32.8 32.0 -11.9 21 1.2 581,282 2.8 20,815,650 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, 2010. 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, 2010. 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 valuating 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. 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. V. 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. VI. 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.24
  25. 25. Reference InformationHarris Associates Concentrated U.S. Value FundReference information Share class information Reference index S&P 500 Index Max sales Share class TER, % Minimum initial investment charge, % Fund inception 10 August 2011 USD/EUR/CHF 15 million, GBP 7 Sub-fund of Natixis International Funds (Lux) I organized as an S - Super institutional 0.85 4.00 million investment company with variable capital under the laws of the Legal structure and domicile I - Institutional 1.25 4.00 USD/EUR/CHF 100,000, GBP 50,000 Grand Duchy of Luxembourg and authorized by the CSSF as a 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 Management company Natixis Global Associates S.A. Share class availability by currency of quotation A = Accumulating, D = Distributing, H- = Hedged Investment manager Harris Associates L.P. Portfolio manager Robert Levy, Ed Loeb, Mike Mangan Share class USD EUR GBP CHF S - Super Registrations Luxembourg A, D A, H-A A, H-A A, H-A institutional 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 Dealing frequency Daily Cutoff time D, 13h30 Luxembourg timeRussell 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.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 provideinvestment 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 withthe “Important Information for Singapore Investors” must at all times accompany this document for offers in Singapore under Sections 304 and 305 of 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 or sold in the U.S., to citizens orresidents 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 carefully before investing, available, if registered in your jurisdiction, from Natixis Global Associates offices (ga.natixis.com).Risks The Fund is subject to special risk considerations, including portfolio concentration risk, geographic concentration risk and growth/value equities risk. Please refer to the full Prospectus for additional detailson risks.25
  26. 26. Appendix: Global Wholesale ContactsFor further information please contact:Derek BranderDirector, UK Wholesale SalesPhone: 44 (0) 203 405 2181Email: derek.brander@ga.natixis.comNick HindsDirector, Global Key AccountsPhone: 44 (0) 203 405 2154Email: nick.hinds@ga.natixis.com26
  27. 27. Additional NotesThis material has been provided for information purposes only to investment service providers or other Professional Clients or QualifiedInvestors. It is the responsibility of each investment service provider to ensure that the offering or sale of fund shares or third partyinvestment services to its clients complies with the relevant national law.In the U.K. This material is provided by Natixis Global Associates UK Limited which is authorised and regulated by the UK Financial ServicesAuthority (register no. 190258). This material is intended to be communicated to and/or directed at persons (1) in the United Kingdom, andshould not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell securities in any other jurisdiction than theUnited Kingdom; and (2) who are authorised under the Financial Services and Markets Act 2000 (FSMA 2000); or are high net worthbusinesses with called up share capital or net assets of at least £5 million or in the case of a trust assets of at least £10 million; or any otherperson to whom the material may otherwise lawfully be distributed in accordance with the FSMA 2000 (Financial Promotion) Order 2005 or theFSMA 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001 (the "Intended Recipients"). To the extent that thismaterial is issued by Natixis Global Associates UK Limited, the fund, services or opinions referred to in this material are only available to theIntended Recipients and this material must not be relied nor acted upon by any other persons. Registered Office: Natixis Global Associates UKLimited, Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.Natixis Global Associates UK Limited is a development Unit of Natixis Global Associates and a subsidiary of Natixis Global Asset Management,the holding company of a diverse line-up of specialised investment management and distribution entities worldwide. The investmentmanagement and distribution subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from thejurisdictions in which they are licensed or authorised. Their services and the products they manage are not available to all investors in alljurisdictions.Although Natixis Global Associates believes the information provided in this material to be reliable, it does not guarantee the accuracy,adequacy, or completeness of such information.The provision of this material and/or reference to specific securities, sectors, or markets within this material does not constitute investmentadvice, or a recommendation or an offer to buy or to sell any security, or an offer of services. Investors should consider the investmentobjectives, risks and expenses of any investment carefully before investing. The analyses, opinions, and certain of the investment themes andprocesses referenced herein represent the views of the portfolio manager as of the date indicated. These, as well as the portfolio holdings andcharacteristics shown, are subject to change. There can be no assurance that developments will transpire as may be forecasted in thismaterial.This material may not be distributed, published, or reproduced, in whole or in part.All amounts shown are expressed in USD unless otherwise indicated.

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