These International Stalwarts Are Better Than They Look Right Now
Stylistic headwinds as well as stock selection have hurt Harding Loevner International Equity and Oakmark International.
The investment environment for international-stock funds has changed markedly for the worse in 2020, just as it has for domestic-equity offerings. Indeed, after posting solid gains over the final 9.5 months of 2019, most overseas stock markets gyrated down sharply during the first two and a half months of this year. Consequently, the average funds in all of the international-stock Morningstar Categories were in the red for the 12 months through March 13.
Meanwhile, as normally is the case in tumultuous market conditions as well as in steady market environments, there were several prominent and generally successful international funds that markedly underperformed, including Harding Loevner International Equity (HLMNX) and Oakmark International (OAKIX). These two funds, which were slowed by stylistic headwinds as well as by weak holdings, remain good options for investors who have long time horizons and understand the risks of their processes.
William Samuel Rocco does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.