Oakmark Equity & Income I (OAKBX) Fund

The next article is Oakmark Equity & Income fund which is Moderate Allocation Balanced Mutual fund. This type of fund is suitable for buy and hold investor. Hence it is a balanced fund; investor can get instant portfolio diversification. This Oakmark balanced fund is investing in bonds and equities and has 5 stars rating from Morningstar. Details about this fund's review are described below.

Oakmark Equity & Income I (OAKBX)

The Oakmark Equity & Income I fund objective is to provide current income, preservation and capital growth. The fund invests majority of its assets in a diversified portfolio of U.S. equity and fixed-income securities. It invests approximately 40-75% of total assets in common stock, convertible, and up to 60% of assets in U.S. government securities and debt securities rated within the two highest grades assigned by rating agencies. It may invest <35% of assets in Foreign securities.

OAKBX Fund Details
Oakmark Equity & Income I (OAKBX)
Oakmark Equity & Income I
  • Fund Inception Date: November 1995
  • Ticker Symbol: OAKBX
  • CUSIP: 413838400
  • Beta (3yr): 0.477
  • Rank in category (YTD): 21
  • Category: Moderate allocation
  • Yield: 0.76%
  • Turnover rate: 91%
  • Total Net Asset: $20.4 billion
  • Capital Gains: N/A
  • Number of Years Up: 13 years
  • Number of Years Down: 2 years
Updated on June 7th, 2011

Clyde S. McGregor has been managing this fund since its inception in 1995. The expense ratio is a bit lower (0.79%) compared to the average in the category (0.99%). As no load fund, there is no sales load for purchasing this OAKBX fund. For bond portion, the fund average duration is 2 years.

The minimum balance to invest in this fund is $1,000 for brokerage account and IRA account. A minimum of $100 is needed for the subsequent investment. OAKBX can be purchased from 97 brokerages, include Merrill Lynch, Vanguard, JP Morgan, T Rowe Price, Bear Stearns, Raymond James, Fidelity Retail Funds Network, TD Ameritrade Inc, E Trade Financial, etc.

Best Balanced Fund

Since its inception in 1995, OAKBX has experienced 13 years positive return and 2 years negative return. The best achievement in 1-year total return was achieved in 1997 (26.56%) whereas the worst performance was in 2008 (-16.18%).  The OAKBX fund has 5-stars rating from Morningstar. As June 2011, the year-to-date return is 6.96% and the 5-year average return is 7.16%. This OAKBX fund has returned 10.91% over the past one year and 8.68% over the past decade. Since OAKBX is limited to new investor, you can select other class. Another class of this fund is Oakmark Equity & Income II (Ticker: OARBX). This OARBX fund also has similar fund characteristic as OAKBX fund.

As of April 2011, the fund asset is allocated as follow: US equities and equivalents (55.94%), government and agencies (22.43%), non US equities and equivalents (11.93%), cash & equivalent (8.83%), corporate bonds (0.48%), sovereign debt obligations (0.32%), and asset backed securities (0.07%). The top ten equities and equivalents of Oakmark Equity and Income Fund represent 26.7% of the total net assets out of 57 holdings. They are Cenovus Energy (4.1%), Nestle ADR (3.1%), General Dynamics (3.0%), Apache (2.9%), Diageo ADR (2.5%), ITT (2.4%), Lab Corp of America (2.2%), UnitedHealth Group (2.2%), Hospira (2.2%) and Sara Lee (2.1%). The top equity sector breakdowns are Industrials (13.5%), Health Care (13.2%), Consumer Staples (12.0%), Energy (10.5%), Consumer Discretionary (7.4%), Information Technology (5.2%), Financials (3.6%) and Materials (2.5%).

Investment risks include market risk, common stock risk, small & mid cap securities risk, debt securities risk, and non US securities risk.

Disclosure: No Position

If you are interested in balanced funds, please check the following article:


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