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On the lookout for a Global - Equity fund? Starting with Oppenheimer Global Fund A (OPPAX) should not be a possibility at this time. OPPAX carries a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
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. Since Oppenheimer Global Fund A made its debut in December of 1969, OPPAX has garnered more than $7.33 billion in assets. The fund is currently managed by John Delano who has been in charge of the fund since March of 2017.
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 16.12%, and it sits 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 13.14%, 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. The standard deviation of OPPAX over the past three years is 21.02% compared to the category average of 15.64%. The standard deviation of the fund over the past 5 years is 17.3% compared to the category average of 12.94%. 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. OPPAX has a 5-year beta of 1.09, which means it is likely to be more volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. Over the past 5 years, the fund has a negative alpha of -1.07. This means that managers in this portfolio find it difficult to pick 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, OPPAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 1.14%. Looking at the fund from a cost perspective, OPPAX 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 Fund A ( OPPAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average 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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