Oakmark Funds Review: Performance, Fees & Investment Strategy

This in-depth review covers everything U.S. investors need to know about Oakmark Funds in 2025: which funds are available, how they have performed historically, what fees you should expect, and whether this value-focused approach is the right fit for your portfolio.

What Are Oakmark Funds?

Oakmark Funds is a family of actively managed mutual funds and
ETFs advised by Harris Associates L.P., which was founded in Chicago in 1976.
The Oakmark brand itself was launched in 1991 with the inaugural Oakmark Fund.
Today, the fund family spans U.S. equity, international equity, balanced, and
fixed-income strategies.

Harris Associates operates as an autonomous subsidiary of
Natixis Investment Managers, L.P., giving it access to broader institutional
resources while maintaining its independent investment culture and philosophy.
As of late 2025, Harris Associates employees, fund officers, trustees, and
their families reportedly had more than $1 billion invested in Oakmark Funds
a notable alignment of interests with ordinary investors.

The Harris Associates Connection

The Oakmark Funds are the public-facing retail arm of Harris
Associates’ broader investment management business. The same value philosophy
that guides its private wealth and institutional mandates is applied
consistently across all Oakmark mutual funds. This alignment means retail
investors benefit from the same research depth and disciplined process as
institutional clients.

Oakmark Funds Investment Philosophy: Value Investing Redefined

The cornerstone of every Oakmark fund is a clearly articulated
value investing philosophy built on three core tenets:

1.
Buy businesses at a significant discount to the team’s estimate of
intrinsic value.

2.
Invest in companies expected to grow their per-share value over time.

3.
Invest with management teams that think and act as business owners.

Harris Associates uses a bottom-up research process in which
generalist analysts evaluate companies across industries and geographies
without sector or regional biases. This generalist approach is intentional it
keeps the team focused on finding the best values regardless of which
industries happen to be in favor at any given time.

The concept of intrinsic value at Oakmark is derived primarily
from discounted cash flow analysis, supplemented by qualitative assessments of
management quality, competitive positioning, and the durability of a company’s
earnings power. Once identified, the most compelling ideas are placed on
approved lists reviewed by experienced investment committees before being
incorporated into individual fund portfolios.

What Makes Oakmark Different from Index Funds?

Unlike passive funds that mirror a benchmark, Oakmark funds
maintain high Active Share scores a measure of how much a portfolio differs
from its benchmark. For example, the Oakmark Fund carries an Active Share of
approximately 90.48% versus the S&P 500, while Oakmark Global Select scores
approximately 96.18% versus the MSCI World Index. This means these funds are
genuinely actively managed and not guilty of ‘closet indexing,’ where active
funds essentially replicate their benchmarks while charging higher fees.

Complete Oakmark Funds Lineup

As of 2025, the Oakmark family includes the following funds.
Expense ratios shown are for the Investor share class and are as of the fund’s
most recent prospectus dated January 28, 2026.

Source: Oakmark.com (prospectus dated January 28, 2026). Past
performance is not a guarantee of future results.

Fund-by-Fund Breakdown

1. Oakmark Fund (OAKMX) – Flagship U.S. Large Cap

The Oakmark Fund is the flagship of the family and one of the
longest-running value funds in the U.S., launched on August 5, 1991. It invests
primarily in large-cap U.S. companies and is benchmarked against the S&P
500. The fund is managed by a seasoned team led by Bill Nygren (who joined
Harris Associates in 1983), Michael Nicolas, and Robert Bierig.

Since inception, the fund has delivered an average annual
return of approximately 12.84%. Over the 10-year period ending September 30,
2025, the Investor Class returned approximately 13.70% annually, and the 5-year
annualized return stood at roughly 19.02%. The portfolio is concentrated
invested in a relatively small number of stocks which increases both
potential return and volatility compared to broader index funds.

Financially, the fund carries an active share of over 90%
relative to the S&P 500, confirming its genuinely active approach. At
approximately $25.7 billion in assets under management, it is also one of the
larger actively managed U.S. equity funds.

2. Oakmark Select Fund (OAKLX) – High-Conviction U.S. Equities

The Select Fund is a non-diversified portfolio of
approximately 20 to 30 U.S. mid- and large-cap stocks. This concentrated
mandate reflects Oakmark’s highest-conviction ideas and typically carries
higher volatility than the broader Oakmark Fund. The fund has delivered a
since-inception return of approximately 11.75% since its November 1996 launch.
Its active share of approximately 94.87% versus the S&P 500 underscores the
high-conviction nature of the portfolio.

3. Oakmark Global Fund (OAKGX) – International Diversification

This fund invests across the market cap spectrum in both U.S.
and non-U.S. companies, applying the same value philosophy globally. The
all-cap mandate gives managers flexibility to find the best ideas worldwide.
The fund carries a net expense ratio of 1.11% and has delivered a
since-inception return of approximately 9.54%.

4. Oakmark Global Select Fund (OAKWX) – Concentrated Global Portfolio

Typically holding around 20 to 30 large-cap securities split
roughly equally between U.S. and international companies, this non-diversified
fund applies a high-conviction global approach. With an active share of 96.18%
versus the MSCI World Index, it is one of the most differentiated funds in the
lineup. Since-inception returns stand at approximately 8.96%.

5. Oakmark International Fund (OAKIX) – International Large Cap

The International Fund focuses on non-U.S. mid- and large-cap
companies, generally targeting businesses with a market cap above $7.5 billion.
The fund may also allocate to emerging market companies. Effective July 2025,
Tony Coniaris replaced Michael Manelli as a portfolio manager on this fund. The
fund carries a net expense ratio of 1.06% for the Investor Class.

6. Oakmark International Small Cap Fund (OAKEX)

Targeting small-cap companies outside the United States, this
fund carries the highest expense ratio in the family at approximately 1.33% for
the Investor Class. It maintains an active share of 96.78% versus the MSCI
World ex U.S. Small Cap Index, reflecting the fund’s highly differentiated
portfolio. The fund received a 2025 LSEG Lipper Fund Award for best
International Small/Mid-Cap Core Fund over five years.

7. Oakmark Equity and Income Fund (OAKBX) – Balanced Approach

This fund seeks both income and the preservation and growth of
capital by combining U.S. equity holdings with fixed-income securities. As of
January 28, 2025, its benchmark comparisons were updated to include the
Bloomberg U.S. Aggregate Bond Index and a custom 60/40 S&P 500/Bloomberg
Aggregate blend. The fund distributes income quarterly and has approximately
$6.2 billion in assets under management.

8. Oakmark Bond Fund (OANCX) – Fixed Income

The newest equity-like entrant in the family, the Oakmark Bond
Fund invests primarily in a diversified portfolio of bonds and other
fixed-income securities. It carries the lowest expense ratio in the family at
approximately 0.41% (net) for the Investor Class. As of September 2025, the
Oakmark Bond Fund Institutional Share Class (OANCX) received a 5-star
Morningstar rating for the 5-year period within the Intermediate Core-Plus Bond
category.

9. Oakmark U.S. Large Cap ETF (OAKM) – The First ETF

In December 2024, Harris Associates launched the Oakmark U.S.
Large Cap ETF (NYSE: OAKM), its first exchange-traded fund. Managed by the same
team as the Oakmark Fund, Bill Nygren, Robert Bierig, and Michael Nicolas
OAKM holds approximately 30 to 40 U.S. large-cap companies and is unconstrained
by sector. As an active, fully transparent ETF, it offers benefits including
intra-day liquidity and potentially greater tax efficiency compared to mutual
funds.

Oakmark Funds Performance Analysis

Past performance does not guarantee future results, and all
the data below should be interpreted accordingly. That said, the Oakmark Fund
family has a multi-decade track record worth examining.

Oakmark Fund (OAKMX) – Historical Returns

Source: Oakmark Funds Q3 2025 Commentary. S&P 500
reference figures are approximate and for context only. Past performance is not
indicative of future results.

Value vs. Growth: Cyclical Performance Considerations

As a value-oriented fund family, Oakmark’s relative
performance tends to be cyclical. During periods when value stocks are in favor typically in economic recoveries or rising interest rate environments the
funds may outperform their growth-oriented peers. Conversely, during extended
growth stock rallies (such as the decade following the 2008 financial crisis),
value funds generally tend to lag.

Oakmark has historically demonstrated long-term outperformance
relative to the S&P 500 since the inception of its flagship fund in 1991.
However, individual years can see meaningful divergence, and investors should
be prepared for periods of underperformance relative to the broader market.

Oakmark Funds Fees and Expense Ratios

Understanding the fee structure is critical to evaluating any
mutual fund. Oakmark offers multiple share classes Investor, Advisor,
Institutional, and R6 with varying expense ratios. The table below summarizes
the Investor Class (the most accessible for individual retail investors) net expense
ratios as of January 2026.

Source: Oakmark prospectus dated January 28, 2026.
Intermediaries may impose their own minimum investment requirements. Always
verify the current prospectus before investing.

Share Class Comparison

Lower-cost share classes are available for larger investors
and institutional buyers. The Advisor, Institutional, and R6 share classes
carry progressively lower expense ratios. For example, the Oakmark Bond Fund’s
Institutional Class (OANCX) carries a net expense ratio capped at approximately
0.52%. Investors placing larger amounts may want to verify share class
eligibility with their broker or financial advisor.

Who Should Consider Investing in Oakmark Funds?

Oakmark Funds May Be Suitable For:

• Long-term investors with a 5-10+ year investment horizon who can
  tolerate cyclical underperformance.
• Investors who believe in the long-term premium of value investing over
  passive indexing.
• Those seeking genuine active management with high Active Share scores
  and distinct portfolio construction.
• Investors comfortable with concentrated portfolios (particularly in the
  Select and Global Select funds).
• Advisors and institutional investors looking for a disciplined,
  repeatable value process with a proven track record.

Oakmark Funds May Be Less Suitable For:

• Investors with a short time horizon or low risk tolerance, as the
  concentrated approach can produce meaningful short-term volatility.
• Cost-sensitive investors who prioritize minimizing fees above all else
  passive index funds from Vanguard or Fidelity typically offer lower expense
  ratios.
• Investors seeking consistent outperformance in all market environments,
  particularly during extended growth stock rallies.
• Those who prefer momentum or growth investing strategies.

Oakmark Funds vs. Key Competitors

Source: Fund websites and public prospectuses. Data is
approximate and subject to change. Always consult the most recent fund
prospectus before investing.

ESG Integration at Oakmark Funds

Harris|Oakmark integrates environmental, social, and
governance (ESG) factors into its investment process, though not as standalone
screening criteria. Rather, material ESG factors are evaluated alongside
traditional financial metrics as part of the broader intrinsic value
assessment. The firm’s stated view is that ESG factors can be financially
material and should be considered by any long-term business owner a framing
consistent with its value investing philosophy.

Oakmark participates in the Principles for Responsible
Investment (PRI), the Asian Corporate Governance Association (ACGA), and the
Transition Pathway Initiative, among other responsible investment frameworks.
Active engagement with portfolio company management teams is a key component of
the ESG approach.

Key Risks to Consider

All investing involves risk, and the Oakmark Funds carry
specific risks investors should understand before committing capital.

• Value Trap Risk: Value stocks may remain out of favor for extended
  periods if the market continues to prefer growth-oriented companies.
• Concentration Risk: Funds that invest in a relatively small number of
  securities (particularly the Select, Global Select, and International Small Cap
  funds) will experience greater volatility when individual holdings move
  sharply.
• International and Currency Risk: Funds investing outside the U.S. face
  foreign currency fluctuation, political risk, and different regulatory
  environments.
• Small-Cap Risk: The International Small Cap fund may be more volatile
  and less liquid than funds focused on larger companies.
• Active Management Risk: There is always the possibility that portfolio
  managers’ selections do not perform as expected, leading to underperformance
  versus the benchmark.
• Interest Rate Risk: The Oakmark Bond Fund is subject to bond price
  sensitivity rising interest rates generally reduce bond prices.

Frequently Asked Questions (FAQs)

What is the minimum investment for Oakmark Funds?

The minimum initial investment is generally around $1,000 for
Investor Class shares when investing directly through Harris Associates.
However, intermediaries such as brokers may impose their own minimums
sometimes lower or higher. Always check with your specific brokerage platform
for their applicable minimums.

Is Oakmark Funds a good investment in 2025?

Whether Oakmark Funds is a good fit depends largely on your
investment goals, time horizon, and tolerance for value-style cyclicality. The
funds have a strong long-term track record, genuine active management
credentials, and a disciplined philosophy. However, value investing can
underperform over shorter time periods, particularly when growth stocks
dominate the market. A financial advisor can help determine whether Oakmark
funds align with your overall portfolio strategy.

How does the Oakmark Fund compare to the S&P 500?

Since its 1991 inception, the Oakmark Fund has generally
delivered comparable or slightly higher long-term returns than the S&P 500.
Over the 5-year period ending September 30, 2025, the fund delivered approximately
19.02% annualized returns. However, individual periods can diverge
significantly. The fund carries a higher expense ratio than a passive S&P
500 index fund, so investors should weigh cost against the potential for
outperformance over their chosen time horizon.

Does Oakmark offer an ETF?

Yes. In December 2024, Harris Associates launched the Oakmark
U.S. Large Cap ETF (NYSE: OAKM), the firm’s first exchange-traded fund. It
applies the same value investing philosophy as the Oakmark Fund but in an ETF
format with the potential for greater tax efficiency and intra-day trading
flexibility.

What is the expense ratio of the Oakmark Fund (OAKMX)?

The Oakmark Fund’s net expense ratio for the Investor Class is
0.89% as of the prospectus dated January 28, 2026. Lower-cost share classes are
available for Advisor, Institutional, and R6 investors.

Who manages the Oakmark Funds?

The Oakmark Funds are managed by portfolio managers at Harris
Associates L.P., an autonomous subsidiary of Natixis Investment Managers. Key
figures include Bill Nygren (CIO-U.S. Equities and Portfolio Manager, joined
1983), Michael Nicolas, Robert Bierig, David Herro (international), Tony
Coniaris, and other experienced investment professionals.

Are there any sales loads on Oakmark Funds?

Oakmark Funds are generally offered as no-load funds when
purchased directly through Harris Associates. However, certain intermediaries
or distribution platforms may impose transaction fees. Always review the fund’s
current prospectus and your broker’s fee schedule before purchasing.