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 shows how the Oakmark Fund performed by the end of 2017. Since it started in 1991, it averaged 13.04% annual returns, and in the last year it made 21.14%. Its fees are low (0.86% net expense ratio, meaning the yearly cost after discounts). For regular investors, this suggests long-term holding could be good, but high short-term gains might not last. It's worth reading because the numbers are clear and help you decide if the fund fits your needs.
The average annualized total returns of the Oakmark Fund (Investor Class) as of December 31, 2017, are as follows: 13.04% since inception on August 5, 1991, 11.01% over 10 years, 16.09% over 5 years, 21.14% over 1 year, and 5.98% over 3 months. In terms of expenses, the gross expense ratio is 0.90%,
This section presents key performance and expense data for the Oakmark Fund (Investor Class) as of December 31, 2017. The report focuses on the fund's long-term return performance since its inception in 1991, as well as recent short-term gains and fee structure, providing a benchmark for investors to assess its investment value.
The report's implicit core judgment is that the Oakmark Fund has achieved significant positive returns over the long term (since its inception in 1991) and in the short term (1 year, 3 months), with expense ratios maintained at a relatively low level (net expense ratio of 0.86%). This indicates that its investment strategy has demonstrated consistency and cost efficiency over historical cycles. A counterintuitive point is that despite frequent market fluctuations, the fund's 10-year return (11.01%) remains higher than its 5-year return (16.09%), suggesting stronger relative performance in the past five years, yet long-term compound growth has not deviated significantly due to recent volatility.
The report supports its viewpoint with average annual total return data across multiple time horizons, preserving all original figures. The comparative data is shown in the table below:
| Time Horizon | Average Annual Total Return (as of December 31, 2017) |
|---|---|
| Since Inception (August 5, 1991) | 13.04% |
| 10 Years | 11.01% |
| 5 Years | 16.09% |
| 1 Year | 21.14% |
| 3 Months | 5.98% |
In terms of expenses, the gross expense ratio is 0.90%, and the net expense ratio is 0.86%, indicating that the fund has effectively compressed operating costs. The net expense ratio is 0.04 percentage points lower than the gross expense ratio, which may reflect fee reductions or waiver arrangements.
This section only covers the Oakmark Fund (Investor Class) as a fund product and does not mention specific portfolio holdings or assets. The report makes no bullish or bearish judgments on any company or asset, merely providing fund-level performance and expense data.
For investors, the fund's historical return data suggests that long-term holding (since inception in 1991) yields an annualized return of 13.04%. However, the returns over the past 5 years (16.09%) and 1 year (21.14%) are significantly higher than the long-term average, implying that recent market conditions or investment strategies may have generated excess returns. Nevertheless, investors should note that high short-term returns (e.g., 21.14% over 1 year) may not be sustainable, and while the expense ratio (net 0.86%) is low, it should be evaluated in conjunction with individual risk tolerance and investment horizon. It is recommended to monitor whether the fund can maintain similar return levels in the future and to compare its fees and performance with those of peer funds.