Oppenheimer International Growth Fund invests in high-quality overseas companies that are able to monetize long-term structural growth opportunities—regardless of domicile. All of the portfolio’s sector, industry and country allocations are a result of bottom-up stock selection. Given our focus, we are naturally interested in the growth prospects presented by the emerging markets. However, we gain the bulk of our emerging market exposure through developed market companies who operate in those areas. Looking at the revenue sources of the portfolio’s companies offers a more informative picture.
Why Company Domicile Is Not the Best Way to Assess Geographic Diversification
We believe that, for investors seeking international diversification and the risk management benefits of broad regional economic exposure, revenue measures are simply more efficient indicators than are the locations of corporate headquarters. Our investment discipline-driven sector preferences and aversion to state-owned enterprises result in a portfolio of companies domiciled predominantly in the developed world, but whose revenue sources are geographically diverse—with a quarter of those revenues coming from emerging markets.
An Approach that Has Delivered
Oppenheimer International Growth Fund invests in global franchises that derive revenue from every corner of the world. From the perspective of revenue sources, it is clear that the Fund provides significant exposure to companies that may benefit from the tremendous growth taking place in emerging markets. The Fund’s focus on high-quality companies with pricing power and strong governance principles provides that added benefit of helping to lessen its exposure to the volatility the emerging markets can at times experience.
OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity.
Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. Eurozone investments may be subject to volatility and liquidity issues. Investments in securities of growth companies may be volatile. Mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a mid-sized company, if any gain is realized at all. Diversification does not guarantee profit or protect against loss.>
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.
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