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Emerging Market Growth with Developed Market Firms

Highlights

  • The emerging markets are becoming wealthier
  • Millions of EM citizens are moving into the middle class and spending more on discretionary items
  • Branded goods firms HQ’d in the developed world are increasing their EM sales
  • The International Growth Fund owns several of these consumer brand firms

Investors are looking for opportunities to generate growth in their portfolios. Some key economies are struggling, but favorable demographics and superior growth in certain emerging markets still provide investors with significant opportunities. One option to access this potential growth is by investing in companies that are domiciled in the developed world, but derive revenue from emerging market economies. This is especially true when looking at firms that are positioned to benefit from a growing middle class, a mega-trend that we call Mass Affluence.

Oppenheimer International Growth Fund seeks to provide access to stocks of high quality overseas companies that the Fund’s management believes are positioned for long term growth including firms that derive a significant portion of their revenue from emerging markets.

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Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing market investments may be especially volatile. Due to the recent global economic crisis that caused financial difficulties for many European Union countries, Eurozone investments may be subject to volatility and liquidity issues. Investments in securities of growth companies may be volatile. Small and mid-sized company stock is typically more volatile than that of larger, more established businesses, as these stocks tend to be more sensitive to changes in earnings expectations. It may take a substantial period of time to realize a gain on an investment in a small or mid-sized company, if any gain is realized at all. Diversification does not guarantee profit or protect against loss

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