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 compares two Oakmark international stock funds: one investing in large companies, the other in small companies. Since their start, the large-cap fund has a higher long-term annual return (9.24% vs 8.91%), but over the past 5 years the small-cap fund has done better (7.20% vs 6.92%). The small-cap fund charges higher fees (net expense ratio 1.37% vs 1.04%), and a fee waiver expires in January 2022, which could raise costs. For regular investors, the choice depends on whether you prioritize long-term stability or recent performance, and you should watch how fees eat into returns.
From its inception in September 1992 through December 31, 2020, the Oakmark International Fund (Investor Class) achieved an annualized total return of 9.24%, with returns of 6.20%, 6.92%, 4.92%, and 31.48% over the past 10 years, 5 years, 1 year, and 3 months, respectively. Its gross expense ratio i
This section presents the performance and expense data of the Oakmark International Fund and the Oakmark International Small Cap Fund as of December 31, 2020. The report aims to demonstrate the return performance of these two international equity funds across different time horizons and disclose their fee structures.
The report's central judgment is that both funds have achieved long-term positive returns since inception, with annualized returns ranging from 8.91% to 9.24%. Among them, the Oakmark International Fund has a slightly higher long-term annualized return since its inception in 1992 (9.24%) compared to the small-cap fund (8.91%). However, over the past five years, the small-cap fund's return (7.20%) has outperformed the large-cap fund (6.92%). The small-cap fund has a higher expense ratio, but the net expense ratio is affected by a contractual advisory fee waiver agreement, which is valid until January 27, 2022.
The report supports its views with return data across multiple time horizons and clearly distinguishes between gross and net expense ratios. Key data are as follows:
| Metric | Oakmark International Fund | Oakmark International Small Cap Fund |
|---|---|---|
| Inception Date | September 30, 1992 | November 1, 1995 |
| Annualized Return Since Inception | 9.24% | 8.91% |
| 10-Year Annualized Return | 6.20% | 5.22% |
| 5-Year Annualized Return | 6.92% | 7.20% |
| 1-Year Return | 4.92% | 5.02% |
| 3-Month Return | 31.48% | 25.99% |
| Gross Expense Ratio | 1.06% | 1.39% |
| Net Expense Ratio | 1.04% | 1.37% |
Data Interpretation: