Oakmark International Fund: Second 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

Theme and Background

This section presents the performance and fee data of the Oakmark International Fund (Investor Class) as of June 30, 2022. The report aims to showcase the fund's long-term return performance since its inception in 1992 and explain the current fee structure, providing a basis for investors to evaluate the fund's historical performance and costs.

Core Viewpoint

The report implicitly argues that, despite the fund's significantly negative recent performance (1-year and 5-year), its long-term annualized return since inception remains positive (8.28%), indicating that its long-term investment strategy can still create value across full market cycles. The expense ratio (net 1.05%) is at an industry mid-level, and the existence of a fee waiver agreement helps reduce investor costs.

Key Arguments and Data

Positive Long-Term Returns: Since its inception in September 1992, the annualized total return is 8.28%, achieving positive returns over a 30-year cycle.
Recent Performance Under Pressure: The 1-year return is -22.73%, and the 5-year return is -0.42%, indicating that market conditions over the past one and five years have been unfavorable for the fund.
Fee Structure: The gross expense ratio is 1.07%, and the net expense ratio is 1.05%, with the difference stemming from an advisory fee waiver agreement effective until January 27, 2023.

Time Period	Annualized Total Return
Since Inception (09/30/1992)	8.28%
10-Year	5.92%
5-Year	-0.42%
1-Year	-22.73%
3-Month	-11.77%

Companies/Assets Involved

Oakmark International Fund (Investor Class): The core fund analyzed in the report, with no specific holdings mentioned. The fund itself is the investment vehicle, and the report does not provide a clear bullish or bearish judgment, only offering historical performance data.

Investment Insights

Long-Term Holders May Benefit: The 30-year positive return (8.28%) suggests that if investors can withstand short-term volatility, the fund may provide reasonable returns over the long term.
Beware of Recent Risks: The negative 1-year and 5-year returns indicate that the current market environment (e.g., the global stock market decline in 2022) has significantly impacted international equity funds, and short-term investors should exercise caution.
Limited Fee Advantage: The net expense ratio of 1.05% is below the industry average, but the fee waiver agreement only lasts until January 2023, after which fees may rise. Investors should monitor fee changes for their impact on net returns.