Smaller companies drive a surprisingly large share of global equity returns. Yet many equity investors tend to use a single international equity large-cap portfolio for their broad international exposure.
The rapidly growing and attractively priced universe of smaller companies overseas offers the potential for growth with compelling risk-adjusted returns. Oppenheimer International Small-Mid Company Fund seeks to invest in such companies on a long-term basis, and identify leading businesses of the future that currently operate in industries driven by structural growth and high barriers to entry.
The Fund aims to identify companies with meaningful competitive advantages (such as technological leadership, intellectual property, strong brands) and industries that naturally favor monopolies.
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. The Fund may invest a significant portion of assets in a particular region, which may increase volatility and exposure to risks associated with that particular region.