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 Oakmark International Fund performed from 1992 to 2017. It highlights that long-term investing in international stocks can deliver about 10% annual returns, even though short-term ups and downs happen. But the last 10 years averaged only 7%, meaning recent markets were tougher. For regular investors, don't get excited by a one-year 29% gain—focus on the 0.95% expense ratio and stay patient for the long haul.
The performance data for the Oakmark International Fund (Investor Class) as of December 31, 2017, shows an average annual total return of 10.40% since its inception on September 30, 1992, with returns of 6.95%, 10.50%, 29.75%, and 2.38% over the past 10 years, 5 years, 1 year, and 3 months, respecti
This section centers on the performance data of the Oakmark International Fund (Investor Class) as of December 31, 2017, showcasing the fund's long-term return track record since its inception in 1992. The report aims to emphasize the value of international investing through historical data and highlight the fund's robust return capabilities over the long, medium, and short terms.
The author's core investment argument is that the Oakmark International Fund has achieved sustained and significant excess returns by holding international stocks over the long term, with particularly strong performance in the past 1 year (29.75%) and past 5 years (10.50%). The counterintuitive point is that, despite the market's general focus on short-term volatility, the fund's average annual return since inception in 1992 (10.40%) contrasts with its return over the past 10 years (6.95%), suggesting that long-term investing can smooth out short-term fluctuations. However, the lower return over the past decade relative to the long-term average implies that the market environment over the last ten years has been more challenging.
The report directly cites the fund's historical return data without providing additional analysis or comparisons. Key data are as follows:
| Time Period | Average Annual Total Return |
|---|---|
| Since Inception (September 30, 1992) | 10.40% |
| Past 10 Years | 6.95% |
| Past 5 Years | 10.50% |
| Past 1 Year | 29.75% |
| Past 3 Months | 2.38% |
Expense Data: Gross expense ratio (as of September 30, 2017) is 1.00%, and net expense ratio is 0.95%.
This section only covers the Oakmark International Fund (Investor Class) as a fund product, without mentioning specific companies or individual stocks. The fund's investment scope is international equities, but the report does not disclose portfolio holdings.
For investors, this data indicates that holding an internationally diversified fund (such as the Oakmark International Fund) over the long term can provide an annualized return of approximately 10%. However, the past 10-year return (6.95%) is below the long-term average, suggesting that international equity markets may have faced slower growth or valuation pressures between 2010 and 2017. Investors should pay attention to the expense ratio (net expense ratio of 0.95%) and assess their own risk tolerance, avoiding excessive optimism driven by short-term high returns (e.g., 29.75% over the past year).