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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.