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.

View JRB Investment Returns Sheet

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.

View JRB Investment Returns Sheet

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.


Updated August 2021