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Oakmark FundsQuarterly31 Mar 2022Source: oakmark.com

Oakmark International Fund: First Quarter 2022

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

In plain words

This report covers Oakmark International Fund's performance through March 2022. The fund has done well over the long run—about 8.8% annualized since 1992—but it lost nearly 9% in the past year and quarter. That shows even good long-term funds can take short-term hits. For regular investors, don't rely only on past returns; market swings matter. Also, the fund's fee is 1.05% now, but a temporary fee waiver ends in January 2023, so costs could go up.

AI SummaryAI-generated · may contain errors · verify against the original

Oakmark International Fund (Investor Class) performance as of March 31, 2022 shows an annualized return of 8.81% since its inception on September 30, 1992, but recent performance has been weak: a 1-year return of -8.66% and a 3-month return of -8.69%. The report's core view is that despite solid lon

~2 min full read · 5 sections
Deep Analysis

Theme and Background

This section presents the performance and expense data of the Oakmark International Fund (Investor Class) as of March 31, 2022. The report focuses on the fund's long-term performance since its inception in 1992, while also highlighting the significant impact of recent market volatility on short-term returns.

Core Thesis

The author's core judgment is that, although the fund has delivered steady long-term annualized returns (8.81% since inception), its recent performance has been weak, with both one-year and three-month returns turning negative. Counterintuitively, the strong long-term track record has not shielded investors from short-term market downturns, and investors must be wary of the erosion of net asset value caused by short-term risks.

Key Arguments and Data

  • Long-term Returns: Since inception on September 30, 1992, the annualized return stands at 8.81%. The 10-year annualized return is 6.12%, and the 5-year annualized return is 3.33%, indicating a long-term growth trend.
  • Short-term Performance: The one-year return is -8.66%, and the three-month return is -8.69%, suggesting that recent market conditions have exerted significant pressure on the fund.
  • Expense Structure: The gross expense ratio is 1.07%, and the net expense ratio is 1.05%, with the latter reduced due to an advisory fee waiver agreement in effect until January 27, 2023.
Metric Value
Annualized Return Since Inception (from September 30, 1992) 8.81%
10-Year Annualized Return 6.12%
5-Year Annualized Return 3.33%
1-Year Return -8.66%
3-Month Return -8.69%
Gross Expense Ratio 1.07%
Net Expense Ratio 1.05%

Companies/Assets Involved

This section does not mention any specific companies or assets, focusing solely on the performance and expense data of the Oakmark International Fund itself.

Investment Implications

Investors should pay attention to the direct impact of short-term market volatility on the fund's net asset value, especially given that both the one-year and three-month returns are negative, indicating an unfavorable environment for international equity investments. Additionally, the net expense ratio is slightly lower than the gross expense ratio due to the waiver agreement, but this waiver will expire on January 27, 2023, at which point expenses may rise. Investors should assess the potential impact on long-term returns in advance.