Is Oppenheimer Global Opportunities A (OPGIX) a Strong Mutual Fund Pick Right Now?
If you have been looking for Mutual Fund Equity Report funds, it would not be wise to start your search with Oppenheimer Global Opportunities A (OPGIX). OPGIX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is responsible for OPGIX, and the company is based out of Kansas City, MO. The Oppenheimer Global Opportunities A made its debut in October of 1990 and OPGIX has managed to accumulate roughly $2.15 billion in assets, as of the most recently available information. The fund is currently managed by Frank Jennings who has been in charge of the fund since October of 1995.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. OPGIX has a 5-year annualized total return of 1.26% and is in the bottom 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 -3.66%, which places it in the bottom 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 17.05%, the standard deviation of OPGIX over the past three years is 25.64%. The standard deviation of the fund over the past 5 years is 24.69% compared to the category average of 15.06%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
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 1.24, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -10.08, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, OPGIX is a load fund. It has an expense ratio of 1.04% compared to the category average of 1.11%. Looking at the fund from a cost perspective, OPGIX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, Oppenheimer Global Opportunities A ( OPGIX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, worse downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
Don't stop here for your research on Mutual Fund Equity Report funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare OPGIX to its peers as well 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.
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