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 how two Oakmark international funds performed in early 2022. Both lost money over the past year and three months, but since their start (one in 1992, the other in 1995) they've averaged over 8.7% annual returns. For regular investors, this means don't panic over short-term drops—long-term value investing can still work. But watch out: the small-cap fund is more volatile and has higher fees (1.35% vs 1.05%), and its fee waiver expires soon. Worth a read because it reminds you to focus on the long run and keep costs in check.
The performance report of the Oakmark International Fund and the Oakmark International Small Cap Fund as of March 31, 2022 shows that both funds have recently faced pressure. The International Fund posted a 1-year return of -8.66% and a 3-month return of -8.69%; the Small Cap Fund recorded a 1-year
This section provides performance data and fee structures for the Oakmark International Fund and the Oakmark International Small Cap Fund as of March 31, 2022. The report aims to present the return performance of both funds across different time horizons and disclose expense ratios, offering investors foundational information for evaluating the funds' historical performance and holding costs.
The report's central judgment is that, although both funds posted negative returns in the short term (1 year, 3 months), their annualized returns since inception have exceeded 8.7%, demonstrating the effectiveness of a long-term value investment strategy. A counterintuitive finding is that the small-cap fund's 1-year return (-5.29%) outperformed the international fund (-8.66%), but its 3-month drawdown was larger (-11.31% vs -8.69%), indicating higher recent volatility for the small-cap fund.
The report supports its viewpoint with multi-time-horizon return data, as detailed below:
| Time Horizon | International Fund Return | International Small Cap Fund Return |
|---|---|---|
| Since Inception (Annualized) | 8.81% (since September 1992) | 8.70% (since November 1995) |
| 10-Year (Annualized) | 6.12% | 5.79% |
| 5-Year (Annualized) | 3.33% | 5.13% |
| 1-Year | -8.66% | -5.29% |
| 3-Month | -8.69% | -11.31% |
Fee structure:
This section does not mention specific companies or assets, only the two funds themselves: