Harris Associates Global Equity Fund Quarterly portfolio commentary 31-Mar-2021 Portfolio performance The portfolio returned 10.5% (R/A USD share class) for the quarter ending March 31, 2021, and the MSCI World Index returned 4.9% for the same period. Top contributor: General Motors In January, General Motors (GM) launched its BrightDrop brand that is focused on electric delivery vehicles. Later, the company announced a new strategic relationship with Microsoft in an effort to help accelerate the commercialization of self- driving vehicles. As part of the agreement, Microsoft will partner with GM, Honda and others to make a new investment of more than $2 billion in Cruise (GM’s self-driving car company). In our view, GM will benefit not only from the investment, but also from a closer working relationship with Microsoft, which it hopes will accelerate digital transformation efforts and artificial intelligence capabilities. Later, GM issued fourth-quarter results including adjusted earnings that reached $3.71 billion and led to earnings per share of $1.93, which exceeded market forecasts by 24% and 21%, respectively. More importantly, total adjusted earnings advanced 15% year-over-year. Results in North America were especially robust as earnings margins exceeded 12% (excluding vehicle recall impacts), owing to benefits from an attractive product mix and strong pricing aided by solid demand and effective inventory management. Likewise, high used car prices, lower credit costs and lower interest expenses prompted record-level results in GM’s financial segment where adjusted earnings rose 29% from last year. We later spoke with CFO Paul Jacobson and discussed the company’s outlook for 2021. He stated that while GM will encounter some unique pressures in the current year, including a global semiconductor chip shortage that has disrupted new vehicle production, the company anticipates plentiful free cash flow and many exciting new business opportunities available to pursue. In March, Cruise acquired Voyage, an autonomous vehicle technology startup. Bottom detractor: Credit Suisse Group The share price of Credit Suisse Group suffered upon revelations about the company’s exposure to Greensill Capital followed by its association with Archegos Capital. Early in March, the company’s share price decline led to a loss of roughly $2-3 billion in market capitalization. Investors sold shares over concerns that an investment fund run by its asset management division had exposure to the now-insolvent Greensill Capital, which specialized in supply chain finance. The lost market cap far surpassed Credit Suisse’s direct exposure to Greensill and ignored the fact that a large portion of its clients’ exposure was in cash, highly rated securities or insured investments. We do not foresee a material direct liability for Credit Suisse in connection with Greensill. We believe any direct cost will likely be covered by the general litigation provisions that we incorporated in our valuation estimates. At the end of March, Credit Suisse’s share price dropped again as New York-based hedge fund client Archegos Capital defaulted on its margin calls to the company’s prime brokerage business. We are reviewing our valuation assumptions following this news and will continue to monitor the situation closely. In light of both incidents, we are disappointed by Credit Suisse’s risk management implementation and believe it would be appropriate for outgoing Chairman Urs Rohner to forego any further compensation. We are hopeful that incoming Chairman António Horta- Osório will bring a fresh perspective following his tenure as CEO of Lloyds Banking Group. Markets and investment climate Global markets built upon gains achieved in the fourth quarter and moved even higher in the most recent three months as Covid-19 vaccines reached more and more people. Following his inauguration in January, U.S. President Joe Biden signed off on his economic stimulus plan in March. The $1.9 trillion relief package sends $1,400 payments to qualifying Americans and extends unemployment benefits. In response, the Dow Jones Industrial Average and S&P 500 Index soared to record highs. In addition, the unemployment rate in the country sank to 6.2% as a February report from the U.S. Labor Department tallied more than 350,000 new jobs in the month, well in excess of the market’s expectations for about 200,000 new jobs. Global markets later responded favorably to U.S. Federal Reserve Chairman Jerome Powell’s forecast for near-zero interest rates through at least 2023. In the U.K., investors pondered if the country would implement negative interest rates. However, much like the U.S., the Bank of England also held its rates steady and kept its level of asset purchases intact. Similarly, the Bank of Japan left its interest rates unchanged. Moreover, Governor Haruhiko Kuroda projected the country’s economic growth would be “clearly positive” for the fiscal year beginning in April. While the global economy as a whole shrank 3.5% in 2020, the International Monetary Fund increased its guidance for 2021 and now expects 5.5% global growth for the year as well as 4.2% growth in 2022. FOR INVESTMENT PROFESSIONAL USE ONLY However, the quarter did not go without its macroeconomic distractions. A cargo ship ran aground in the Suez Canal, blocking traffic for hundreds of crude oil tankers, container ships and others for several days. Concerns for the effect on the movement of goods around the world impacted markets and triggered some ships to redirect their paths around the much longer Cape of Good Hope route. However, the troubled ship was ultimately dislodged by the end of March and traffic once again flowed through the canal. Portfolio outlook In our view, movements in share price often exaggerate the underlying movement of the intrinsic value of a business. While the market rides the ups and downs of short-term macroeconomic developments, we instead focus on a company’s ability to produce a stream of cash, its existing balance sheet and the strength of its management team. Our patient approach teaches us to search for opportunities where a quality company’s share price is in distress but its underlying intrinsic value is not. Portfolio positioning As we have said before, our investment process is bottom-up and relies exclusively on stock selection. Therefore, we do not intentionally country-weight equities in the portfolio against any benchmark. Our primary long-term goal is to achieve a high rate of return, and we continue to emphasize higher quality businesses that today sell at little or no premium to their lower- quality peers. • Currently, the portfolio holds 47 securities located in several countries. • We initiated new portfolio positions in Capgemini, Fiserv, General Dynamics, Humana and SAP in the first quarter. In addition, National Oilwell Varco changed its name to NOV. • We eliminated our positions in Rolls-Royce Holdings and Samsung Electronics. • The portfolio is most heavily weighted in the U.S. (46%) and Europe including the U.K. (43%). Africa/Middle East, Asia ex Japan, Australasia, Japan and Latin America account for the remainder. • Stock selection drove relative outperformance, while country weightings also contributed to relative results in the first quarter. Holdings in the U.S. and the U.K. produced the best relative performance. • Holdings in Switzerland and a lack of exposure to Canada weighed on relative performance most for the quarter. FOR INVESTMENT PROFESSIONAL USE ONLY Harris Associates Global Equity Fund R/A (USD) Fund performance and characteristics 31-Mar-2021 Trailing returns – net of fees 3M YTD 1Y 3Y ann. 5Y ann. 10Y ann. Incep. ann. Fund, % 10.52 10.52 82.60 7.67 11.09 6.92 7.27 Index, % 4.92 4.92 54.03 12.84 13.36 9.88 6.94 Fund characteristics Investment objective Achieve long term capital growth Inception date 4-Jul-2001 Reference Index MSCI World NR USD TER, % 2.15 % Maximum sales charge, % 4.00 % Redemption charge / CDSC 0 % / - Minimum initial investment 1,000 USD ISIN LU0130103400 Bloomberg ticker CDCOGVR LX NAV / Share 401.71 USD Management company Natixis Investment Managers S.A. PleaseInvestmentread the managerprospectus and Key InvestorHarrisInformation Associatescarefully before investing. If the fund is registered in your jurisdiction, these documents are also available free of charge from the Natixis Investment Managers offices (im.natixis.com) and the paying agents/representatives listed below. Austria: Erste Bank der österreichischen Sparkassen AG, Am Graben 21, 1010 Vienna. France: CACEIS Bank France, 1-3, Place Valhubert, 75013 Paris. Natixis Investment Managers Distribution, 43 avenue Pierre Mendès France 75648 Paris cedex 13. Germany: Rheinland-Pfalz Bank, Grose Bleiche 54-56, D-55098 Mainz. Italy: State Street Bank GmbH – Succursale Italia, Via Ferrante Aporti, 10, 20125 Milano. Allfunds Bank S.A. Succursale di Milano, Via Santa Margherita 7, 20121 Milano. Société Générale Securities Services S.p.A., Maciachini Center - MAC 2, Via Benigno Crespi, 19/A, 20159 Milano. Luxembourg: Natixis Investment Managers S.A., 2, rue Jean Monnet, L-2180 Luxembourg. Switzerland: RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. Share classes without an NAV are dormant or inactive. Performance data shown represents past performance and is not a guarantee of future results. The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested. The value of investments and the income derived from them may fluctuate and an investor may not receive back the amount originally invested. Principal value and any returns arising from any investment referred to on this Site fluctuate over time, so the shares, when redeemed, will be worth more or less than their original costs. Additionally, international investing involves certain risks, such as currency exchange rate fluctuations, political or regulatory developments, economic instability and lack of information transparency.