Oakmark International Fund

Scorecard
5 / 5 Stars
Lipper
5 5 2 2 3
Zacks Investment Research
3 (Hold)
Standard & Poor's
5 / 5 Stars
TheStreet.com
D+ (Sell)

U.S. News evaluated 209 Foreign Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Note: Profile written for different share class.

Performance

The fund has returned 23.63 percent over the past year, 10.73 percent over the past three years, 26.12 percent over the past five years, and 9.80 percent over the past decade. 

Trailing Returns Updated 02.28.2014
Year to date 1.5%
1 Year 23.6%
3 Years (Annualized) 10.7%
5 Years (Annualized) 26.1%
10 Years (Annualized) 9.8%

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Summary

Oakmark International has been a solid long-term performer.

As of March 05, 2014, the fund has assets totaling almost $30.67 billion invested in 68 different holdings. Its portfolio consists primarily of shares of large companies.

As of the end of the first quarter, a quarter of this fund's stock holdings--including four out of its five top-weighted companies--were in Japan. This, of course, has been detrimental in 2011. While Japan's stock market has improved since its punishing plunge on the heels of an earthquake and a nuclear scare, share prices remain relatively weak. Outside of Japan, the fund has little exposure to Asia. Instead, the bulk of its holdings are in Europe. There, its heftiest exposure is to France and Switzerland. Meanwhile, it has very little exposure the PIIGS countries--Portugal, Ireland, Italy, Greece, and Spain--that have been at the center of recent debt-related concerns. As of the end of the first quarter, the fund didn't own any Portuguese or Greek companies. The fund has returned 23.63 percent over the past year and 10.73 percent over the past three years. 

Historically, the fund has put together impressive numbers. As of the end of April, its trailing 10-year returns landed it in the top 3 percent of its Morningstar category. The fund has returned 26.12 percent over the past five years and 9.80 percent over the past decade.  

Investment Strategy

According to the fund's prospectus: "The Fund uses a value investment philosophy in selecting equity securities. This investment philosophy is based upon the belief that, over time, a company's stock price converges with the company's intrinsic or true business value. By 'true business value,' we mean an estimate of the price a knowledgeable buyer would pay to acquire the entire business."

Role in Portfolio

Morningstar calls the fund a "core" holding.

Management

David Herro and Robert Taylor manage the fund.

Fees

Oakmark International Fund has an expense ratio of 1.34 percent. 

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Risk

Like all stock funds, this one comes with some risks.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 3 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

The fund appears on the 2011 Money 70 list of recommended mutual and exchange-traded funds.

Money 70 2011-01-21

This fund received the Bronze award for the International Equity category in Standard & Poor’s 2010 Mutual Fund Excellence Awards.

Standard & Poor's 2010-11-01

"While they have made some mistakes (e.g., owning certain financial stocks during the recent crisis) that cost shareholders’ capital, we continue to see strong evidence of rigorous research and disciplined execution of their investment process. [Fund manager David] Herro remains passionate about investing, maintaining high standards on his team, and is totally focused on long-term performance."

Litman Gregory 2010-06-30

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: "Oakmark's shareholder-aligned corporate culture features managers with ample skin in the game, a prudent approach to launching new products, and a willingness to curb inflows when asset bloat threatens. Fees should be lower, but overall, Oakmark is a responsible steward of its shareholders' wealth."

Morningstar 2011-06-12

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying: "Oakmark's shareholder-aligned corporate culture features managers with ample skin in the game, a prudent approach to launching new products, and a willingness to curb inflows when asset bloat threatens. Fees should be lower, but overall, Oakmark is a responsible steward of its shareholders' wealth."

Morningstar 2011-06-12

See Also:

Top Oakmark Funds