Oakmark Global Fund (OAKGX)

The following fund is one of the kiplinger’s 25 Best Mutual Funds. This fund received Gold award from Standard & Poor’s 2010 Mutual Fund Excellence Awards in Global Equity category. This fund also has one of the highest Morningstar rating (5-stars). Investing in this fund essentially provide investor an instant portfolio diversification in global stocks (US and Foreign stocks). Since it is a global stock fund, it has an above average Morningstar risk rating.

The Oakmark Global Fund (Ticker: OAKGX)

The Oakmark Global Fund investment is looking for long term capital appreciation. The majority fund asset is invested in common stocks of either U.S. or non-U.S. companies (i.e. foreign countries companies). Depending on the management strategy, this Oakmark Global Fund invests primarily in securities of U.S. companies and non-U.S. companies (between 25-75% each) located in at least three countries. A small amount of the net assets (<15%) is probably invested in securities of emerging market countries.

Oakmark Global Fund (OAKGX)
OAKGX Fund Characteristic
OAKGX Fund Details
  • Fund Inception Date: August 1999
  • Ticker Symbol: OAKGX
  • CUSIP: 413838830
  • Beta (3yr): 0.94
  • Rank in category (YTD): 84
  • Category: World Stock
  • Distribution: 0.37% 
  • Capital Gains: N/A
  • Number of Years Up: 9 years
  • Number of Years Down: 2 years
  • Total Net Assets: $2.67 billion
Updated on 8/5/2011

Robert A. Taylor, the director of International Research and Portfolio Manager, is the fund's manager since 2005. The minimum balance to invest in this fund is $1,000 for both brokerage and IRA account with $100 minimum subsequent investment. To open an account with automatic investment plan, you need to have a minimum of $500 with $100 of monthly investment. This equity fund doesn’t have a 12b1 fee and a sales load fee. OAKGX fund has an annual expense ratio of 1.15%. This Oakmark fund has a yield of 0.37% per year.

For year to date, the fund has returned 6.05%. This international stock fund has returned 13.60% over the past year and 4.85% over the past five years. The fund has the best 1 year total return on 2003 (48.98%) and worst 1 year total return on 2008 (-38.78%). It also has 5 stars rating from Morningstar.

To invest in this world stock fund, you will need to open an account either with your brokerage or IRA account (Roth IRA, traditional IRA, and 401k). The initial investment is $1,000 for regular brokerage and IRA account. Subsequent minimum investment will be $100. This OAKGX fund can be purchased through 85 brokerages like E Trade Financials, T Rowe Price, Merrill Lynch, JP Morgan, Vanguard, Common Wealth PPS, Pershing Fund Center, Fidelity Retail Funds Network, Schwab Retail, Federated Trust Connect, etc. Please check your brokerage for details. The other class of this fund is Class II (Ticker: OARGX).

Note: If you want to compare with other Kip 25 best fund, please check my Kiplinger 25 Best Fund page.

This OAKGX fund has a total of 40 holdings. As of March 2011, the top 10 equities and equivalents are Snap-On (4.8%), Oracle (4.5%), Lab Corp of America (4.2%), Daiwa Securities Group (3.8%), Square Enix Holdings (3.5%), Julius Baer Group (3.4%), Credit Suisse Group (3.2%), Hirose Electric (3.0%), Toyota Motor (3.0%) and Equifax (2.9%). The total percentage of the top 10 holdings out of 40 holdings is 36.3%.

The top 5 sectors of OAKGX are Information Technology (33.7%), Industrials (16.6%), Financials (15.3%), Consumer Discretionary (10.9%), Health Care (9.3%), Materials (5.4%), Consumer Staples (5.3%) and Energy (2.6%).  The geographic distributions of this fund with the percentage of net assets are as follow: United States (40.0%), Europe (33.5%), Asia (20.7%) and Australia (4.8%).

Investing in equity stock fund involve principal investment risks such as
  • Market risk
  • Common stock risk
  • Small cap and mid cap risk
  • Value style risk
  • Foreign stocks risk
If you are interested, Oakmark also offer Oakmark Global Class 2 shares (Ticker: OARGX). This fund does have higher expense fees, 1.54% per year.

Disclosure: No Position


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