JRB International Equity Fund Investment Choices

International equity funds are those mutual funds that invest solely or primarily in non-U.S. companies. Mutual funds that invest in non-U.S. companies may purchase equities from both developed and emerging economies. Examples of international companies include Nestle, Novartis, Samsung, Taiwan Semiconductor Manufacturing and Toyota.

International equities play an important role in a diversified portfolio. Investing in one of the JRB international fund offerings allows you to leverage the potentially higher economic growth that can occur in foreign markets. This advantage can become even more pronounced when the U.S. economy is weak.

While volatility is often higher outside the U.S., the JRB’s international fund offerings reduce volatility by mixing emerging market stocks with those in industrialized nations.

In addition to the risks associated with equity investing in general, international equites are also subject to political risk, currency risk and emerging markets risk.

  • Political risks include the chance that world events, such as the impact of the COVID-19 pandemic or regional conflict, will adversely affect the value of investments.
  • Currency risk is the chance that the value of a foreign investment, measured in U.S dollars, will decrease because of unfavorable changes in currency exchange rates. Conversely, if the dollar declines in value, a foreign investment could increase in value.
  • Emerging markets risk is the chance that the stocks of companies located in emerging markets will be substantially more volatile and less liquid than the stocks of companies located in more developed foreign markets.

Oakmark International Fund (OAKIX)

The Oakmark International Fund is an actively managed fund that uses a value investment philosophy to select stocks in non-U.S. companies in both developed and emerging economies. While there are no geographic limits on where the Fund may invest, it holds equities in at least five foreign countries. The Fund can invest in large-, mid- and small-cap companies. Among the factors Oakmark International considers when selecting investments are where the company is headquartered, the stock market on which it is traded, the country from which most of its revenue comes and the currency in which the company reports financial results.

The benchmark for the Oakmark International Fund is the MSCI World excluding the U.S. Index.

MORNINGSTAR® RATINGS (as of 3/31/2021)

OVERALL RATING1: (compared to other funds in the Morningstar® foreign large-cap value category) ★★★

RETURNS2 (compared to other funds in the Morningstar® foreign large-cap value category)

 

 

 

 

 

Low

 

Average

 

High

EXPENSES3 (compared to other funds in the Morningstar® foreign large-cap value category)

 

 

 

 

 

Low

 

Average

 

High

RISK4 (compared to other funds in the Morningstar® foreign large-cap value category)

 

 

 

 

 

Low

 

Average

 

High

Total Returns (as of 3/31/2021)

1-Year Return3-Year Returns5-Year Returns10-Year Returns
+84.81%+3.81%+9.43%+6.88%

Oakmark International Fund Fact Sheet

Oakmark International Fund Prospectus


Vanguard Total International Stock Index (VTSNX)

The Vanguard Total International Stock Index Fund seeks to mirror the performance of the FTSE Global All Cap excluding U.S. Index. This market capitalization weighted index is designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. The six largest markets covered in the Index are Japan, the United Kingdom, China, Canada, France and Switzerland. Together, companies in these countries represent about 2/3 of the Fund’s investments.

MORNINGSTAR® RATINGS (as of 3/31/2021)

OVERALL RATING1: (compared to other funds in the Morningstar® foreign large-cap blend category) ★★★

RETURNS2 (compared to other funds in the Morningstar® foreign large-cap blend category)

 

 

 

 

 

Low

 

Average

 

High

EXPENSES3 (compared to other funds in the Morningstar® foreign large-cap blend category)

 

 

 

 

 

Low

 

Average

 

High

RISK4 (compared to other funds in the Morningstar® foreign large-cap blend category)

 

 

 

 

 

Low

 

Average

 

High

Total Returns (as of 3/31/2021)

1-Year Return3-Year Returns5-Year Returns10-Year Returns
+52.83%+6.54%+10.00%+5.25%

Vanguard Total International Stock Index Fund Fact Sheet

Vanguard Total International Stock Index Fund Prospectus


Conclusion

International equity investments play an important role in any portfolio. When U.S. markets decline, international equities may provide positive returns. With different investment approaches and strategies, both the Oakmark International Fund and Vanguard Total International Stock Index Fund provide excellent options for those seeking to diversify their investments.

Please contact us at 888-JRB-FREE (572-3733) or send us an email to discuss your asset allocation or any other investment question you have.


May 2021



1 The Morningstar Overall Rating™ for funds, or "star rating," is calculated for funds with at least a three-year history. The Morningstar Rating is calculated from a weighted average of its three-, five- and 10-year (if applicable) Morningstar Rating metrics. The top 10% of products in each product category receive 5 stars.

2 The Morningstar Return Rating is a measure of a fund's risk-adjusted return, relative to similar funds. Funds are rated from 1 to 5 green boxes, with the best performers receiving 5 green boxes and the worst performers receiving a single green box. The 10% of funds in each category with the highest risk-adjusted return receive 5 green boxes, the next 22.5% receive 4, the middle 35% receive 3, the next 22.5% receive 2, and the bottom 10% receive 1 green box.

3 The Morningstar® Expenses Rating compares each fund's net expense ratio to the net expense ratio of all of the other funds within its Morningstar® Category grouping. Funds are rated from 1 to 5 green boxes, with the best performers receiving 5 green boxes and the worst performers receiving a single green box. The 10% of funds in each category with the highest risk-adjusted return receive 5 green boxes, the next 22.5% receive 4, the middle 35% receive 3, the next 22.5% receive 2, and the bottom 10% receive 1 green box.

4 The Morningstar® Risk Rating is based on a fund's past performance compared to other funds in its Morningstar® category. It compares the fund's total return to the risk adjusted return (factoring market volatility into the risk assessment). In the risk rating process, 10% of a category's funds with the lowest measured risk are rated as low risk. The next 22.5% are rated below average, the middle 35% are average, the next 22.5% above average, while the top 10% are rated as high risk. Morningstar measures risk for as many as three periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund.