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  1. What Oakmark International's Closure Means for Investors

    Oakmark International manager David Herro's closure of the fund is a preemptive move to taper asset flows and put shareholders first, says Morningstar's Shannon Zimmerman.

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Herro Closes Oakmark International to New Investors

In a pre-emptive move, the Gold-rated foreign-large blend behemoth closes. 

Shannon Zimmerman, 10/08/2013

Gold-rated Oakmark International OAKIX, the fifth-largest fund in the foreign large-blend peer group, will close to new investors as of the market's close on Friday, Oct. 4, 2013. With the fund now holding more than $24 billion in assets, that's a prudent decision. Managed by David Herro, the fund has a focus on highly liquid large caps. That focus mitigates the risks of asset bloat, but it doesn't eliminate them. Roughly one third of assets are invested in the fund's top 10 holdings.

Fortunately, Herro's move appears to be pre-emptive. For the 12 months through Oct. 3, 2013, an annualized gain of 40% places the fund in the category's top percentile, a position the fund also holds in the three-, five-, and 10-year periods. Its annualized 15-year showing (12.4%) ranks in the sixth percentile.

Although the fund is closing to new investors, it will remain open to all existing investors and to all retirement plans and certain intermediary-sponsored fee-based programs. The firm also noted that investors may open new accounts by purchasing shares directly from Oakmark.

 

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Shannon Zimmerman is an associate director of fund analysis at Morningstar.
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