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 Oakmark International Fund's performance through June 2018. Since its launch in 1992, the fund has averaged nearly 10% annual returns, showing solid long-term growth. But it lost 5% in the last three months, highlighting short-term market swings. The annual fee is under 1% (0.95% net), which doesn't eat much into long-term gains. For regular investors, the takeaway is to stay calm during short-term drops and focus on holding for the long run, not trading frequently.
Oakmark International Fund (Investor Class) performance data as of June 30, 2018 shows an annualized return of 9.85% since inception on September 30, 1992, with 10-year, 5-year, 1-year, and 3-month returns of 8.36%, 6.83%, 3.13%, and -5.04%, respectively. The fund's gross expense ratio (as of Septem
This section presents the performance data and fee structure of the Oakmark International Fund (Investor Class) as of June 30, 2018. The report focuses on the fund's long-term return performance since its inception in 1992, compares returns across different time horizons, and discloses the impact of expense ratios on net returns.
The report's core investment argument is that the fund has delivered a long-term (since inception) annualized return of nearly 10%, demonstrating robust long-term value appreciation. However, the short-term (3-month) return of -5.04% indicates that market volatility significantly impacts short-term performance. The expense ratio is controlled within 1% (net expense ratio of 0.95%), resulting in relatively limited erosion of long-term compounding returns.
The report supports its thesis with annualized return data across multiple time horizons and clearly states the expense ratios. Key data are as follows:
| Time Horizon | Annualized Return |
|---|---|
| Since Inception (09/30/1992) | 9.85% |
| 10-Year | 8.36% |
| 5-Year | 6.83% |
| 1-Year | 3.13% |
| 3-Month | -5.04% |
Expense Data:
Investors should focus on the balance between long-term compounding returns (nearly 10% annualized) and short-term volatility risk (3-month -5.04%). The expense ratio (net 0.95%) is at a moderate level among peer funds, and its erosion of long-term returns warrants consideration. The short-term negative return highlights market timing risk, suggesting a long-term holding strategy as the primary approach to avoid frequent trading driven by short-term fluctuations.