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 covers the Oakmark International Fund's performance for early 2013. Since its launch in 1992, the fund has averaged 10.52% annual returns, showing solid long-term growth. But the 5-year return (7.08%) is lower than the 10-year (13.21%), hinting at tougher recent markets. Short-term, the 1-year return is strong at 16.56%, but the last 3 months only gained 5.35%, suggesting momentum may be slowing. For everyday investors, this means international stock funds can grow wealth over time, but expect bumps. Also, the fund charges 1.06% in fees, which reduces your actual gains—always check net returns.
The average annualized total returns of the Oakmark International Fund (Investor Class) as of March 31, 2013, are as follows: 10.52% since inception on September 30, 1992; 13.21% over the 10-year period; 7.08% over the 5-year period; 16.56% over the 1-year period; and 5.35% over the 3-month period.
This section focuses on the performance of the Oakmark International Fund (Investor Class) as of March 31, 2013. The report evaluates the fund's investment returns over long-term (since its inception in 1992) and short-term (1 year, 3 months) periods by presenting average annualized total returns across different time horizons, and discloses its expense structure.
The author's core investment argument is that the fund has achieved steady compound growth over the long term (since its inception in 1992), with an annualized return of 10.52%, and has maintained positive returns over the 10-year (13.21%) and 5-year (7.08%) periods, demonstrating its ability to navigate market cycles. Short-term performance (1-year return of 16.56%) significantly outperforms the long-term average, while the 3-month return (5.35%) is relatively moderate, suggesting that recent market volatility may present short-term opportunities. A counterintuitive observation is that despite impressive long-term returns, the 5-year return (7.08%) is lower than the 10-year return (13.21%), implying that the market environment over the past five years may have been more challenging, yet the fund still maintained positive gains.
The report supports its views with annualized total return data across the following time horizons:
| Time Horizon | Annualized Total Return |
|---|---|
| Since Inception (September 30, 1992) | 10.52% |
| 10-Year | 13.21% |
| 5-Year | 7.08% |
| 1-Year | 16.56% |
| 3-Month | 5.35% |
Additionally, the fund's gross expense ratio (as of September 30, 2012) is 1.06%, which directly impacts net returns. Data comparisons show that the 1-year return (16.56%) is significantly higher than the 10-year (13.21%) and 5-year (7.08%) returns, indicating a strong recent market rebound; however, the 3-month return (5.35%) is lower than the 1-year return, suggesting that short-term volatility may be intensifying.