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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, you might want to consider passing on by Oakmark International Investor (OAKIX) as a possibility. OAKIX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes OAKIX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.

History of Fund/Manager

Oakmark is based in Kansas City, MO, and is the manager of OAKIX. Since Oakmark International Investor made its debut in September of 1992, OAKIX has garnered more than $16.27 billion in assets. The fund's current manager, David G. Herro, has been in charge of the fund since September of 1992.

Performance

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 1.9%, and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 8.6%, which places it in the bottom 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. OAKIX's standard deviation over the past three years is 15.41% compared to the category average of 10.08%. The fund's standard deviation over the past 5 years is 15.28% compared to the category average of 10.02%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors cannot discount the risks to this segment though, as it is always important to remember the downside for any potential investment. OAKIX lost 54.93% in the most recent bear market and outperformed its peer group by 3.52%. These results could imply that the fund is a better choice than its peers during a sliding market environment.

Investors should note that the fund has a 5-year beta of 1.04, so it is likely going to be more volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. OAKIX has generated a negative alpha over the past five years of -8.1, demonstrating 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 0.96% compared to the category average of 1.21%. From a cost perspective, OAKIX is actually cheaper than its peers.

Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.

Bottom Line

Overall, Oakmark International Investor ( OAKIX ) has a low Zacks Mutual Fund rank, weak performance, worse downside risk, and lower fees compared to its peers.

Want even more information about OAKIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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