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Mutual Fund Spotlight: Oakmark Equity and Income Fund [OAKBX]

By: Ted Black, CFP©
Fall 2023 (Vol. 41, No. 3)

Oakmark Equity and Income Fund seeks income and preservation and growth of capital. The Fund invests primarily in a diversified portfolio of U.S. stock and bond securities (although the Fund may invest up to 35% of its total assets in stock and bond securities of non-U.S. issuers). The Fund is intended to present a balanced investment program between growth and income by investing approximately 40-75% of its total assets in common stock, including securities convertible into common stock, and up to 60% of its total assets in debt securities issued by the U.S. government or any of its agencies, non-U.S. governments, and corporate entities rated at the time of purchase within the two highest ratings assigned by Moody’s Investors Service, Inc. or by S&P Global Ratings. The Fund may invest up to 20% of its total assets in unrated or below investment grade rated debt securities, commonly called junk bonds. The Fund may invest in the securities of large-, mid-, and small-capitalization companies.

This $4 billion plus fund is managed by a long tenured team of analysts/managers. The following are some of the key management guidelines established by the fund: Management looks to buy businesses that are trading at a significant discount to management’s estimate of the company’s intrinsic value, aiming to purchase a company’s stock when they believe it to be inexpensive relative to what it believes the entire business is worth; Invest with companies expected to grow shareholder value over time. Management looks for businesses that are expected to achieve a combination of dividend yield and per-share growth in business value that is above- average; Invest with management teams that think and act as owners. The fund seeks out companies with management teams that understand the dynamics of per share value growth and are focused on achieving such growth. Stock ownership and incentives that align managements’ interests with those of shareholders are key components of this analysis.

Some of the top stock holdings include familiar names such as Alphabet, Inc. (Google), Amazon, Bank of America, General Motors, and Charter Communications.

Keep in mind that as stated earlier, this is a “balanced” fund, investing in both the domestic and foreign stock and bond markets.

Performance annualized and updated through 09/30/2023:
1-Year: +14.40%; 3-Year: +9.45%; 5-Year: +5.86%
The gross annual expense ratio is 0.83%
The current annualized yield is 2.13%

If you’re interested in this fund, or would like a portfolio review to determine if this fund might be an appropriate addition to your portfolio, please call Ted Black, CFP© at 888-878-0001, extension 3.

Statistics and information provided by Morningstar and Oakmark Funds. Please visit the Oakmark Funds website at for the most recent performance information. The principal value and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Returns shown, unless otherwise indicated, are total returns, including any capital gains or losses and all dividend and capital gains distributions. The performance data quoted represents past performance and in no way guarantees future results. Mutual funds are not FDIC insured.

Mutual funds are sold by prospectus. An investor should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. Please contact our office at 888-878-0001 to obtain a prospectus. Please read the prospectus carefully before you invest or send money.

Advisory services offered through Royal Palm Investment Advisors, Inc., a Registered Investment Advisor.