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Is Oakmark International Investor (OAKIX) a Strong Mutual Fund Pick Right Now?

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If you've been stuck searching for Non US - Equity funds, consider Oakmark International Investor (OAKIX - Free Report) as a possibility. OAKIX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

OAKIX is classified in the Non US - Equity area by Zacks, and this segment is full of potential. Non US - Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.

History of Fund/Manager

Oakmark is based in Kansas City, MO, and is the manager of OAKIX. The Oakmark International Investor made its debut in September of 1992 and OAKIX has managed to accumulate roughly $9.14 billion in assets, as of the most recently available information. David G. Herro is the fund's current manager and has held that role since September of 1992.

Performance

Of course, investors look for strong performance in funds. OAKIX has a 5-year annualized total return of 10% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 5.42%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 16.34%, the standard deviation of OAKIX over the past three years is 29.73%. Over the past 5 years, the standard deviation of the fund is 23.9% compared to the category average of 13.51%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 1.3, the fund is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -9.3. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, OAKIX is a no load fund. It has an expense ratio of 1% compared to the category average of 1.18%. Looking at the fund from a cost perspective, OAKIX is actually cheaper than its peers.

While the minimum initial investment for the product is $1,000, investors should also note that there is no minimum for each subsequent investment.

Bottom Line

Overall, Oakmark International Investor ( OAKIX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a good potential choice for investors right now.

For additional information on the Non US - Equity area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into OAKIX too for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.


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