If you’re looking for a Global – Equity fund category, then a potential option is Oppenheimer Global Opportunities A (OPGIX). OPGIX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.
We note that OPGIX 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 OPGIX. Oppenheimer Global Opportunities A made its debut in October of 1990, and since then, OPGIX has accumulated about $4.21 billion in assets, per the most up-to-date date available. The fund’s current manager, Frank Jennings, has been in charge of the fund since October of 1995.
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 19.79%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 13.47%, 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. Over the past three years, OPGIX’s standard deviation comes in at 26.68%, compared to the category average of 16.33%. Over the past 5 years, the standard deviation of the fund is 23.53% compared to the category average of 13.74%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. OPGIX has a 5-year beta of 1.34, which means it 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. OPGIX has generated a positive alpha over the past five years of 0.66, 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, OPGIX is a load fund. It has an expense ratio of 1.09% compared to the category average of 1.16%. From a cost perspective, OPGIX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Overall, Oppenheimer Global Opportunities A ( OPGIX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Global – Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.