Oakmark International Fund: Fourth Quarter 2020

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.

Bill Nygren、David Herro · 1991 · 美国芝加哥Deep value / contrarian long-term

Theme and Background

This section presents the performance and fee structure of the Oakmark International Fund (Investor Class) as of December 31, 2020. The report focuses on the fund's long-term return record since its inception in 1992 and discloses the current expense ratios along with an upcoming expiration of an advisory fee waiver agreement.

Core Argument

The author's central argument is that the fund has achieved steady annualized returns (9.24%) over the long term (nearly 30 years since inception), but short-term (1-year) performance has been relatively flat (4.92%), while the most recent quarter (3 months) saw a strong rebound (31.48%). The report implicitly suggests that short-term volatility does not affect long-term value, but investors need to pay attention to the fee structure, particularly the net expense ratio (1.04%), which depends on a waiver agreement expiring on January 27, 2022.

Key Arguments and Data

Long-Term Performance: From inception on September 30, 1992, to December 31, 2020, the annualized return was 9.24%, significantly higher than short-term returns.
Short-Term Performance: The 1-year return was only 4.92%, far below the 31.48% return over the last 3 months, indicating that the quarterly rebound drove recent gains.
Fee Structure: The gross expense ratio is 1.06%, and the net expense ratio is 1.04%, the latter reduced by an advisory fee waiver agreement that expires on January 27, 2022.

Time Period	Annualized Return
Since Inception (1992/09/30)	9.24%
Last 10 Years	6.20%
Last 5 Years	6.92%
Last 1 Year	4.92%
Last 3 Months	31.48%

Expense Type	Ratio
Gross Expense Ratio	1.06%
Net Expense Ratio	1.04%

Companies/Assets Involved

This section does not mention any specific companies or assets, focusing solely on the fund's performance and fee data.

Investment Implications

Long-Term Holding Value: The 9.24% annualized return over nearly 30 years indicates that the fund is competitive for long-term investments, suitable for investors seeking stable growth.
Watch for Fee Changes: The net expense ratio depends on the waiver agreement; after January 27, 2022, it may revert to 1.06%, which would erode future returns. Investors should assess the impact of rising fees on returns.
Short-Term Volatility Risk: The 1-year return of only 4.92%, compared to a 31.48% rebound in the last 3 months, shows the fund is sensitive to market volatility. Investors should monitor whether its holdings are concentrated in highly volatile assets.