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 the latest performance of the Oakmark International Fund. Over the long term (since 1992) it has averaged 7.63% annual returns, but in the past year it lost over 30%, and the past five years are also negative. For everyday investors, this means two things: don't just focus on long-term averages—short-term swings can be brutal; and the fund charges a 1.05% annual fee, which eats into your returns when performance is low. Worth a read because it's a real-world reminder to check fees and prepare for possible losses before investing.
The Oakmark International Fund's report as of September 30, 2022 shows that the fund's long-term returns are acceptable (with an average annual return of 7.63% since its inception in 1992), but recent performance has been under pressure: the 1-year return is -30.72%, the 5-year return is -5.24%, and
This section focuses on the performance and fee structure of the Oakmark International Fund (Investor Class) as of September 30, 2022. By presenting annualized total returns across different time horizons, the report reveals a stark contrast between the fund's long-term performance (since its inception in 1992) and its short-term results (over the past year and three months), providing foundational data for investors to assess its investment value.
The report's central judgment is that the fund's long-term returns are acceptable (an annualized return of 7.63% since inception in 1992), but its recent performance has been under severe pressure, with a one-year return of -30.72%, a five-year return of -5.24%, and a three-month return of -14.85%. The author implicitly suggests that investors should pay attention to the erosion of net returns by the expense ratio (1.05%) and maintain a long-term perspective to navigate cyclical drawdowns.
The report directly presents the fund's annualized total return data across different time intervals, without providing additional analysis. The key data are as follows:
| Time Period | Annualized Total Return |
|---|---|
| Since Inception (09/30/1992) | 7.63% |
| 10 Years | 3.42% |
| 5 Years | -5.24% |
| 1 Year | -30.72% |
| 3 Months | -14.85% |
Additionally, the report discloses the fund's expense ratio of 1.05% (based on an estimate for the current fiscal year; actual expenses may vary).
This section does not mention any specific companies or assets, only the Oakmark International Fund product itself.
For investors, the data suggests:
1. Long-term holding does not necessarily smooth short-term risks: Although the annualized return since inception is positive (7.63%), the loss over the past year exceeds 30%, and the five-year annualized return is negative, indicating that the fund has suffered significant losses in the recent market environment (e.g., the global stock market decline and U.S. dollar strength in 2022).
2. The expense ratio is a hidden cost for long-term returns: The 1.05% expense ratio is moderate among actively managed international funds, but if the fund's long-term return is low (e.g., a 10-year annualized return of only 3.42%), the expense ratio will significantly compress net gains.
3. Be wary of the psychological impact of short-term drawdowns: The three-month decline of -14.85% indicates high volatility. Investors should assess their own risk tolerance to avoid panic redemptions at market lows.