Over the last few years, emerging markets have been volatile and underperformed their developed market counterparts. As a result, investors are beginning to allocate away from emerging market equities until a sustainable recovery is seen. By doing so, investors may be missing out on maximizing their return potential.
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1 Source: Bloomberg, as of 12/31/16. Daily gross returns history available from 12/31/98. Latest data available. Past performance does not guarantee future results.↩
2 Source: Morningstar as of 12/31/16. Monthly Returns. The MSCI Emerging Markets Quality Index is based on its parent index, MSCI Emerging Markets Index and includes large- and mid-cap stocks across 23 emerging market (EM) countries. The index tracks the performance of quality growth stocks. These stocks are identified by their high quality scores that include the following three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage. The MSCI Emerging Markets Index is designed to measure equity market performance of emerging markets. Indices are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund. Latest data available. Past performance does not guarantee future results.↩
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. Investing significantly in a particular region, industry, sector or issuer may increase volatility and risk.
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.