Oppenheimer Developing Markets Fund (ODMAX) Class A

One of the top emerging markets equity mutual funds is Oppenheimer Developing Markets A (ODMAX) fund. This stock fund is rated as the best fund for the long term investor by Morningstar. One of the top stock holdings is America Movil SAB de CV which is the largest Mexican telecommunication company. Details about the fund review can be found below.

Oppenheimer Developing Markets A (ODMAX)

The investment objective of Oppenheimer Developing Markets fund is to provide capital appreciation aggressively. This Oppenheimer stock fund primarily invests in common stocks of issuers in emerging and developing markets throughout the world. This top stock fund may invest <100% of total assets in foreign securities. It typically invests >80% of net assets, including any borrowing, in equity securities of high growth potential issuers whose principal activities are in >3 developing markets.

Fund Details
ODMAX fund
  • Fund Inception Date: 11/18/1996
  • Ticker Symbol: ODMAX
  • CUSIP: 683974109
  • Beta (3yr): 1.01
  • Rank in category (YTD): 32%
  • Category: Diversified Emerging Markets
  • Distribution: 0.16%
  • Capital Gains: 0%
  • Expense Ratio: 1.30%  
  • Net Assets: $ 21.13 billion
  • Number of Years Up: 9 years
  • Number of Years Down: 5 years
  • Annual Turnover Rate: 34%
Updated on 1/4/2011

As the fund manager, Justin Leverenz has managed this ODMAX fund since May 2007. This fund was first introduced to public in 1996. The fund has dividend yield of 0.16%. The last dividend was distributed in December 2010 ($0.05). This best emerging market stock fund has annual expense ratio of 1.30%. The average annual expense ratio in Diversified Emerging Markets category is 1.64%. The total net assets of this fund are $21.13 billion. The 12b1 fee is 0.25% and the front end sales load fee is 5.75%.

The Class A shares (ODMAX) was rated 5-stars overall by Morningstar. The analysts have ranked this diversified emerging markets stock fund with silver rating. This mean it has one of the best EM stock mutual funds among 314 Diversified Emerging Markets funds for the 3-, 5- and 10-year periods ended in September 30, 2011. Based on load adjusted performance, this top equity fund has returned 24.94% over the past 3-years, 6.02% over the past 5-years and 18.14% over the past 10-years. The fund has 7.29% 5-year average return.

This EM stock mutual fund can be purchased from 118 brokerages like JP Morgan, Merrill Lynch, Raymond James, Royal Alliance, E Trade Financial, Fidelity Retail Funds Network, Schwab Retail, Ameriprise Brokerage, etc. Investors need $1,000 for the initial investment in brokerage account of this fund with $50 minimum subsequent investment. This fund is also available in IRA account.

The other shares of this fund are Class B (ODVBX), Class C (ODVCX), Class N (ODVNX) and Class Y (ODVYX). Among all, the class Y (ODVYX) is the newest in the market (incepted on 2005).

The top 10 holdings of this fund as of November 30, 2011 are America Movil SAB de CV (4.0%), NHN Corp (3.9%), Infosys Ltd (3.4%), Fomento Economico Mexicano SA de CV (2.4%), NovaTek OAO (2.2%), Calrsberg AS (2.0%), Petroleo Brasileiro SA (2.0%), BM&F Bovespa SA (1.9%), Tullow Oil Plc (1.8%), and Fomento Economico Mexicano SA de CV UBD (1.8%). The top 5 countries are Brazil (13.4%), India (13.1%), Mexico (10.9%), China (6.2%) and South Korea (6.2%).

Investment risks

According to the fund prospectus, there are several principal investment risks such as Stock investment risk, Foreign Investing risk, Small-and Mid-Sized Companies risk, Growth Investing style risk, political and currency risk, management risk, etc.

  • It has a good track record and is ranked as the top fund
  • Low initial investment requirement
  • Class A has a steep sales load of 5.75%

Disclosure: No Position

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