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 International Fund performed by the end of 2018. Over 26 years, it averaged about 8.87% annual returns, but in the last year it lost 23.43%, and in the last three months it dropped 16.31%. For regular investors, this means short-term market swings can hurt, but if you hold for a long time (like 10+ years), the fund has historically made money. Fees are low (around 1%), so it's worth a look to see if you can handle the ups and downs.
The Oakmark International Fund (Investor Class) report as of December 31, 2018, shows that since its inception on September 30, 1992, the fund has achieved an average annual total return of 8.87%, a 10-year return of 9.79%, but a 5-year return of -0.50%, a 1-year return that has sharply declined to
This section presents the performance of the Oakmark International Fund (Investor Class) as of December 31, 2018. The report focuses on the fund's annualized total returns across different time horizons and discloses its fee structure, aiming to provide investors with comparative data on the fund's long-term and short-term performance.
The report's core judgment is that the fund has delivered positive long-term returns (since inception in 1992 and over the 10-year period), but its short-term performance (5-year, 1-year, and 3-month) has deteriorated significantly, with the 1-year return plunging to -23.43%. This suggests that recent global market volatility has severely weighed on the fund, though its long-term historical returns remain attractive. Counterintuitively, despite the sharp short-term drawdown, the annualized return over 26 years since inception still stands at 8.87%, indicating that its long-term strategy may demonstrate resilience under extreme market conditions.
The report uses a multi-time-horizon comparison of returns to visually illustrate the divergence in fund performance. All data is sourced from official statistics as of December 31, 2018.
| Time Horizon | Annualized Total Return |
|---|---|
| Since Inception (September 30, 1992) | 8.87% |
| 10-Year | 9.79% |
| 5-Year | -0.50% |
| 1-Year | -23.43% |
| 3-Month | -16.31% |
In terms of fees, the Gross Expense Ratio is 1.01%, and the Net Expense Ratio is 0.96%. The small difference between the two indicates that the fund's fee structure is relatively stable and has not been significantly adjusted due to short-term performance.
This section only covers the Oakmark International Fund (Investor Class) as a single fund product, without mentioning specific holdings or assets. The fund is an international equity fund with an investment scope covering global markets (excluding the U.S.), and its performance is influenced by global macroeconomic conditions, exchange rates, and geopolitical risks.
For investors, the data reveals two key directions:
1. Short-term risks require caution: The substantial losses over the 1-year and 3-month periods (-23.43% and -16.31%) indicate that the fund experienced significant pressure during the global market downturn in 2018. Investors should assess their tolerance for short-term volatility.
2. Long-term value persists: Despite the short-term drawdown, the annualized return of 8.87% since inception (26 years) and 9.79% over the 10-year period demonstrate the fund's ability to generate positive returns over the long term. Investors with a longer holding horizon may consider adding positions at low points, but they must ensure that the fund's investment strategy aligns with their own risk preferences.