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 through September 2017. Since its launch in 1992, it has averaged 10.40% annual returns, but the past year saw a big jump of 34.88%, much higher than its 10-year average of 6.18%. For regular investors, this means short-term gains can be misleading—long-term returns are more modest. It's worth reading because it shows past performance doesn't guarantee future results, and the 1% annual fee can eat into your profits.
The Oakmark International Fund (Investor Class) report as of September 30, 2017, shows that since its inception in September 1992, the fund has achieved an annualized return of 10.40%, with returns of 6.18%, 12.87%, 34.88%, and 9.10% over the past 10 years, 5 years, 1 year, and 3 months, respectivel
This section presents the performance data of the Oakmark International Fund (Investor Class) as of September 30, 2017, covering long-term returns since its inception in 1992 and returns across various recent time periods. The market backdrop is that global equities generally rose in the first three quarters of 2017, and the fund recorded significant excess returns over the short term (1 year).
The author's core investment argument is that the fund has achieved steady annualized returns (10.40%) over the long term (since its inception in 1992), but its returns over the past 1 year (34.88%) and past 5 years (12.87%) are notably higher than the 10-year period (6.18%), indicating strong recent performance but relatively moderate long-term returns. A counterintuitive observation is that despite outstanding short-term performance, the 10-year return (6.18%) is below the long-term annualized average (10.40%), suggesting the fund may have faced pressure from market volatility or style rotation during the 2007–2017 period.
This section supports the thesis with return data across multiple time dimensions, all figures sourced from the original table. The comparative data are as follows:
| Time Period | Return (%) |
|---|---|
| Since Inception (September 1992) | 10.40 |
| 10-Year | 6.18 |
| 5-Year | 12.87 |
| 1-Year | 34.88 |
| 3-Month | 9.10 |
This section does not mention specific companies or assets, focusing solely on the fund's performance metrics. The fund is the Oakmark International Fund, which invests in international equity markets, but the original text does not disclose portfolio holdings.
For investors, this fund is suitable as a core allocation in an internationally diversified portfolio. However, it should be noted that its long-term return (10-year 6.18%) is below the average since inception (10.40%), indicating that historical performance does not guarantee future results. The high short-term (1-year) return may be driven by market cycles or specific style factors. Investors should consider the impact of the expense ratio (1.00%) on net returns and assess their own risk tolerance. It is recommended to combine this fund with other international funds or index funds to balance style exposure.