Harris Associates U.S. Equity Fund

Fund highlights

• Invests primarily in larger U.S. companies.
• Employs a disciplined value approach and long-term absolute return orientation.
• Seeks to invest in companies whose stocks are trading at a substantial discount to intrinsic value and that have owner-oriented management teams.
• Follows a rigorous, independent, fundamental research process that seeks to identify businesses with growing value.
• Derives estimation of intrinsic value by adopting a private equity approach to public equity markets using cash flow analysis as the main metric.
• Diversifies portfolio across industries as a risk management tool without sacrificing stock selection.

Risks

The Fund invests primarily in shares of U.S. companies. Equity investments may experience large price fluctuations.The Fund is subject to specific risks, including geographic concentration risk, portfolio concentration risk and growth/value equities risk.

• Geographic Concentration risk: Funds that concentrate investments in certain geographic regions may suffer losses, particularly when the economies of those regions experience difficulties or when investing in those regions become less attractive. Moreover, the markets in which the funds' invest may be significantly affected by adverse political, economic or regulatory developments.
• Portfolio Concentration risk: Funds investing in a limited number of securities may increase the fluctuation of such funds' investment performance. If such securities perform poorly, the fund could incur greater losses than if it had invested in a larger number of securities.
• Growth/Value Equities risk: Investments in equities tend to fluctuate more than investments in bonds, but also offer greater potential for growth. The price of equity investments may sometimes fluctuate quite dramatically in response to the activities and results of individual companies, as well as in connection with general market and economic conditions. Additionally, funds may hold equities having either a growth or value bias; prices of the growth bias equities tend to be more sensitive to certain market movements as they are often subject to factors such as future earnings expectations which may vary with changing market conditions; whereas equities with a value bias may continue to be underpriced by the market for sustained periods of time.

An investor's capital will be at risk; you may get back less than you invested. Please refer to the full prospectus for additional details on risks.
 

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Important notice relative to all P share classes
The CPF interest rate for the Ordinary Account ("OA") is based on the 12-month fixed deposit and month-end savings rates of the major local banks. Under the CPF Act, the CPF Board pays a minimum interest of 2.5% per annum when this interest formula yields a lower rate.

The interest rate for the Special and Medisave Accounts (“SMA”) is pegged to either the 12-month average yield of 10-year Singapore Government Securities (“10YSGS”) plus 1% or 4% whichever is the higher, adjusted quarterly. The interest rate to be credited to the Retirement Account (“RA”) will be the weighted average interest rate of the entire portfolio of Special Singapore Government Securities (“SSGS”) the RA savings are invested in which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4% whichever is higher, adjusted yearly. For 2017, the minimum interest rate for the SMA and RA is 4.0% per annum. After 31 December 2017, the 2.5% per annum legislated minimum interest rate, as prescribed by the CPF Act, will apply to the SMA and RA.

In addition, the CPF Board pays an extra interest rate of 1% per annum on the first $60,000 of a CPF member's combined balances, including up to $20,000 in the Ordinary Account. The first $20,000 in the Ordinary Account and the first $40,000 in the CPF Special Account are not allowed to be invested under the CPFIS.

Investors should note that the applicable interest rates for each of the CPF accounts may be varied by the CPF Board from time to time.