There are plenty of choices in the Non US - Equity category, but where should you start your research? Well, one fund that might be worth investigating is Oppenheimer Developing Markets A (ODMAX). ODMAX possesses 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
Invesco is based in Kansas City, MO, and is the manager of ODMAX. Since Oppenheimer Developing Markets A made its debut in November of 1996, ODMAX has garnered more than $4.86 billion in assets. The fund is currently managed by Justin Leverenz who has been in charge of the fund since May of 2007.
Performance
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 12.47%, and it sits in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 7.72%, which places it in the middle 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. Compared to the category average of 15.99%, the standard deviation of ODMAX over the past three years is 18.49%. The fund's standard deviation over the past 5 years is 15.64% compared to the category average of 13.58%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 0.82, the fund is likely to be less 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. The fund has produced a negative alpha over the past 5 years of -0.48, which shows that 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 1.22% compared to the category average of 1.19%. From a cost perspective, ODMAX is actually more expensive than its peers.
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 Developing Markets A ( ODMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and higher fees, Oppenheimer Developing Markets A ( ODMAX ) 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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