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Is Oppenheimer Developing Markets A (ODMAX) a Strong Mutual Fund Pick Right Now?
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Any investors hoping to find a Non US - Equity fund could think about starting with Oppenheimer Developing Markets A (ODMAX - Free Report) . ODMAX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes ODMAX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.
History of Fund/Manager
ODMAX finds itself in the Oppenheimer family, based out of Denver, CO. Oppenheimer Developing Markets A made its debut in November of 1996, and since then, ODMAX has accumulated about $6.74 billion in assets, per the most up-to-date date available. The fund's current manager, Justin Leverenz, has been in charge of the fund since May of 2007.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 6.1%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.68%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of ODMAX over the past three years is 14.53% compared to the category average of 9.26%. The fund's standard deviation over the past 5 years is 14.12% compared to the category average of 11.95%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. ODMAX lost 57.31% in the most recent bear market and outperformed its peer group by 1.07%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Nevertheless, with a 5-year beta of 1.04, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. ODMAX's 5-year performance has produced a negative alpha of -8.62, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ODMAX is a load fund. It has an expense ratio of 1.31% compared to the category average of 1.29%. So, ODMAX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Oppenheimer Developing Markets A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Non US - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Oppenheimer Developing Markets A (ODMAX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find a Non US - Equity fund could think about starting with Oppenheimer Developing Markets A (ODMAX - Free Report) . ODMAX has a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes ODMAX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.
History of Fund/Manager
ODMAX finds itself in the Oppenheimer family, based out of Denver, CO. Oppenheimer Developing Markets A made its debut in November of 1996, and since then, ODMAX has accumulated about $6.74 billion in assets, per the most up-to-date date available. The fund's current manager, Justin Leverenz, has been in charge of the fund since May of 2007.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 6.1%, and it sits in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.68%, which places it in the bottom third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of ODMAX over the past three years is 14.53% compared to the category average of 9.26%. The fund's standard deviation over the past 5 years is 14.12% compared to the category average of 11.95%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. ODMAX lost 57.31% in the most recent bear market and outperformed its peer group by 1.07%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Nevertheless, with a 5-year beta of 1.04, the fund is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. ODMAX's 5-year performance has produced a negative alpha of -8.62, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, ODMAX is a load fund. It has an expense ratio of 1.31% compared to the category average of 1.29%. So, ODMAX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment has no minimum amount.
Bottom Line
Overall, Oppenheimer Developing Markets A has a high Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Non US - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.