Oppenheimer Developing Markets Fund

Scorecard
5 / 5 Stars
Lipper
---
Zacks Investment Research
4 (Sell)
Standard & Poor's
3 / 5 Stars
TheStreet.com
---

U.S. News evaluated 213 Diversified Emerging Mkts Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all OppenheimerFunds funds

See full Diversified Emerging Mkts rankings

See more fund rankings

Note: Profile written for different share class.

Performance

The fund has returned 19.92 percent over the past year, 5.23 percent over the past three years, 13.97 percent over the past five years, and 15.92 percent over the past decade.

Trailing Returns Updated 06.30.2014
Year to date 6.1%
1 Year 19.9%
3 Years (Annualized) 5.2%
5 Years (Annualized) 14.0%
10 Years (Annualized) 15.9%

See more ODVIX performance

Summary

Some manager departures make bigger waves than others. When Mark Madden left Oppenheimer’s Developing Markets fund in May 2007 after a short three-year stint that swelled annualized returns above 30 percent, new manager Justin Leverenz needed a metaphorical surf board to escape the breaker.

Morningstar immediately removed the fund from its elite recommendation list of diversified emerging market funds, and the fund lost more than $1 billion in outflows. Still, Leverenz helped the fund achieve a 34 percent gain that year, and it has bested its Morningstar peers by more than 5 percentage points in each of the following years.

As of July 03, 2014, the fund has assets totaling almost $42.97 billion invested in 123 different holdings. Its portfolio consists solely of emerging market equities, especially large-cap growth stocks.

Leverenz’s largest change to the fund has been reducing the fund’s holdings by half. Beside running a more compact portfolio, Leverenz claims to search for market themes, such as his investments in large retailers in Latin America. He also said he endeavors to hold stocks for a longer term than his predecessors. The fund has returned 19.92 percent over the past year and 5.23 percent over the past three years.

The fund launched in 1996 and has undergone a number of management changes over the years, none of which have had negative effects on the fund’s returns. The fund has returned 13.97 percent over the past five years and 15.92 percent over the past decade.

Investment Strategy

Manager Justin Leverenz invests in high-growth large- and mega-cap companies. He has tended to stay underweight in China and Russia, which helped the firm during the 2008 crash, when those markets sold off heavily.

Role in Portfolio

Morningstar recommends that this fund play a specialty role in your portfolio.

Management

After three years as a senior analyst on Oppenheimer Global, Justin Leverenz replaced former manager mark Madden in May 2007. His background as an Asian equity researcher for Goldman Sachs and Barclays de Zoete Wedd and as a fund manager specializing in Taiwan and China for Martin Currie Investment Managers point to a deep familiarity with Asian markets. He has a B.A. in Chinese Studies and a M.A. in International Economics from the University of California, San Diego in addition to his CFA designation.

Fees

Oppenheimer Developing Markets Fund has an expense ratio of 0.87 percent.

See more ODVIX fees

Risk

Investing in the emerging markets, which generally involves countries with less stable governments and economies, is still thought to involve some notion of higher risk, and emerging markets historically tend to be more volatile than developed markets. Additionally, the Oppenheimer Developing Markets fund invests in growth stocks, which often experience higher volatility than value stocks.

See more ODVIX risk

Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 5 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 4 for one year, 4 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-06-11

The fund's Value Line Risk Rank, a measure of volatility, is 4 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-06-11

In the annual Lipper/Barron’s Fund Families Survey of 2009, the Oppenheimer Funds family ranks 7 out of 61 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F. “Low expenses are this fund’s biggest plus. However, insufficient manager investment, among other weaknesses, keeps its grade from being higher,” Morningstar says.

Morningstar 2011-02-02

In the annual Lipper/Barron’s Fund Families Survey of 2009, the Oppenheimer Funds family ranks 7 out of 61 fund families surveyed.

Lipper

Morningstar gives this fund a stewardship rating of C on a scale of A to F. “Low expenses are this fund’s biggest plus. However, insufficient manager investment, among other weaknesses, keeps its grade from being higher,” Morningstar says.

Morningstar 2011-02-02