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Is Oppenheimer Global Fund A (OPPAX) a Strong Mutual Fund Pick Right Now?
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If investors are looking at the Global - Equity fund category, make sure to pass over Oppenheimer Global Fund A (OPPAX - Free Report) . OPPAX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that OPPAX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of OPPAX. Oppenheimer Global Fund A made its debut in December of 1969, and since then, OPPAX has accumulated about $4.90 billion in assets, per the most up-to-date date available. The fund's current manager, John Delano, has been in charge of the fund since March of 2017.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.02%, 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 2.72%, 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 OPPAX over the past three years is 17.52% compared to the category average of 10.52%. Looking at the past 5 years, the fund's standard deviation is 16.17% compared to the category average of 10.39%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. OPPAX lost 53.6% in the most recent bear market and underperformed its peer group by 1%. This might suggest that the fund is a worse choice than its peers during a bear market.
Nevertheless, with a 5-year beta of 1.11, the fund is likely to be more volatile than the market average. 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. OPPAX's 5-year performance has produced a negative alpha of -3.8, 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, OPPAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 1.18%. So, OPPAX is actually cheaper 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 needs to be at $50.
Bottom Line
Overall, Oppenheimer Global Fund A ( OPPAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Oppenheimer Global Fund A ( OPPAX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on OPPAXin the Global - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is Oppenheimer Global Fund A (OPPAX) a Strong Mutual Fund Pick Right Now?
If investors are looking at the Global - Equity fund category, make sure to pass over Oppenheimer Global Fund A (OPPAX - Free Report) . OPPAX holds a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We note that OPPAX is a Global - Equity option, an investment area loaded with different options. While Global - Equity mutual funds invest their assets in large markets--think the U.S., Europe, and Japan--they aren't limited by geography. Their investment technique is one that leverages the global economy in order to offer stable returns.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of OPPAX. Oppenheimer Global Fund A made its debut in December of 1969, and since then, OPPAX has accumulated about $4.90 billion in assets, per the most up-to-date date available. The fund's current manager, John Delano, has been in charge of the fund since March of 2017.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 3.02%, 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 2.72%, 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 OPPAX over the past three years is 17.52% compared to the category average of 10.52%. Looking at the past 5 years, the fund's standard deviation is 16.17% compared to the category average of 10.39%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
It's always important to be aware of the downsides to any future investment, so one should not discount the risks that come with this segment. OPPAX lost 53.6% in the most recent bear market and underperformed its peer group by 1%. This might suggest that the fund is a worse choice than its peers during a bear market.
Nevertheless, with a 5-year beta of 1.11, the fund is likely to be more volatile than the market average. 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. OPPAX's 5-year performance has produced a negative alpha of -3.8, 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, OPPAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 1.18%. So, OPPAX is actually cheaper 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 needs to be at $50.
Bottom Line
Overall, Oppenheimer Global Fund A ( OPPAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, Oppenheimer Global Fund A ( OPPAX ) looks like a somewhat weak choice for investors right now.
This could just be the start of your research on OPPAXin the Global - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.