If you've been stuck searching for Non US - Equity funds, consider Oppenheimer International Small -Mid Company Y (OSMYX - Free Report) as a possibility. OSMYX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Zacks categorizes OSMYX 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
Oppenheimer is responsible for OSMYX, and the company is based out of Denver, CO. Oppenheimer International Small -Mid Company Y debuted in September of 2005. Since then, OSMYX has accumulated assets of about $4.87 billion, according to the most recently available information. The fund is currently managed by Rezo Kanovich who has been in charge of the fund since January of 2012.
Of course, investors look for strong performance in funds. OSMYX has a 5-year annualized total return of 16.77% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 15.22%, which places it in the top 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 OSMYX over the past three years is 10.63% compared to the category average of 9.45%. Over the past 5 years, the standard deviation of the fund is 10.67% compared to the category average of 9.31%. This makes the fund more volatile than its peers over the past half-decade.
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. OSMYX lost 71.25% in the most recent bear market and underperformed its peer group by 12.84%. This makes the fund a possibly worse choice than its peers during a sliding market environment.
Investors should note that the fund has a 5-year beta of 0.77, so it is likely going to be less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. OSMYX has generated a positive alpha over the past five years of 6.25, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, OSMYX is a no load fund. It has an expense ratio of 1.14% compared to the category average of 1.28%. OSMYX is actually cheaper than its peers when you consider factors like cost.
While the minimum initial investment for the product is $0, investors should also note that there is no minimum for each subsequent investment.
Overall, Oppenheimer International Small -Mid Company Y has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
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