Conservative · Stocks to Consider and Updates

Oakmark International Fund

OAKIXToday we will take a look at the Oakmark International Fund (OAKIX: $25.88) which is a member of the conservative portfolio. As a refresher, OAKIX is a large (greater than $10 billion) capitalization-centric mutual fund that engages a strategy that invests in foreign companies that combines both growth and value-oriented stocks. Since it entered thebuttonwoodproject list on November 2, 2010, the fund has advanced 37.6%, net of fees and expenses, for an annual return of approximately 14.5%. The Morningstar Four Star Fund is diversified by country as follows:


The fund’s Top Ten Holdings include (comprising 32.5% of total equities in its portfolio):

 Top 10

The fund is overweight in financials (26.7% of total holdings), consumer discretionary (23.2%) and industrials (16.5%). The remaining companies in its portfolio are represented in the consumer staples, materials, information technology and health care sectors with 9.5%, 8.4%, 8.3% and 3.5%, respectively.  While not without risk, the fund’s portfolio is well diversified, despite its high (71%) concentration in Europe; has a relatively low, tax efficient turnover rate; and the projected average price earnings ratio of its 60 holdings is a reasonable 14.3. Last year the fund paid a dividend equal to $0.4395 per share yielding 1.7% at today’s price. Finally, the expense ratio is a relatively low – for international funds – 1.06%. I believe that Oakmark International makes for an excellent holding in a conservative portfolio as a way to capitalize on a growing word economy. 

Three Year Performance relative to its peers:


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