Oakmark is the mutual fund family launched in 1991 by Harris Associates, the Chicago deep-value firm founded in 1976 (about $105bn AUM). Bill Nygren runs the flagship Oakmark Fund and David Herro the Oakmark International Fund, buying businesses at large discounts to intrinsic value and holding them like owners — publishing quarterly fund commentaries, market commentaries and insight articles.
This report looks at how Oakmark Fund has performed since 1991. It earned 13.31% per year on average over the long term, and 28.18% in the past year—solid numbers. But it charges a 0.95% annual fee (like a management cost), which eats into your actual returns. For regular investors, the key question is: after fees, is this fund still worth it? If the market slows down, that fee becomes a bigger drag. Worth reading because it reminds you: don't just focus on returns—costs matter too.
The Oakmark Fund (Investor Class) report as of March 31, 2014, shows that since its inception on August 5, 1991, the fund has achieved an average annual total return of 13.31%, with returns of 8.90%, 25.46%, 28.18%, and 2.31% over the past 10 years, 5 years, 1 year, and 3 months, respectively. The c
This section focuses on the long-term and short-term performance of the Oakmark Fund (Investor Class) as of March 31, 2014, and discloses its fee structure. The report aims to demonstrate the fund's sustained return capability since its inception in 1991, while reminding investors of the potential impact of fees on net returns.
The author's core investment argument is that the Oakmark Fund has achieved returns significantly above market averages over the long term (since its inception in 1991) and short term (1 year, 5 years), but investors must pay attention to its total expense ratio of 0.95%, as fees can erode the compounding effect over the long run. The counterintuitive point is that despite recent strong returns (28.18% over 1 year), the author implies that high fees may undermine the sustainability of future gains.
| Time Period | Average Annual Total Return | Notes |
|---|---|---|
| Since Inception (1991/08/05) | 13.31% | Long-term benchmark |
| 10 Years | 8.90% | Medium-term performance |
| 5 Years | 25.46% | Recent high growth |
| 1 Year | 28.18% | Short-term surge |
| 3 Months | 2.31% | Recent trend |
| Expense Ratio (as of 2013/09/30) | 0.95% | Cost indicator |
Investors should prioritize similar funds with expense ratios below 0.95%, or evaluate whether the Oakmark Fund's long-term excess returns are sufficient to cover its costs. If future market returns decline, the 0.95% expense ratio will significantly compress net returns, so attention must be paid to whether the fund continues to outperform its benchmark.