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FYI: If you invest, you may have noticed that emerging-market stocks have done badly of late. The MSCI Emerging Markets Index, which did so well in the early 2000s, has been almost unchanged since the global financial crisis. Since this spring, though, the index has tanked.
Many EM countries produce oil or raw materials - both of which which have tanked. The strong dollar is a second blow. Some of the carnage is probably due to investor flight.
I just put a little in OEMAX, Oppenheimer Emerging Market Debt (already owned Class A shares there). It was down over 15% for 1 YR.
What struck me when I looked at the AUM (after investing) is the very low 29M at last report. One wonders how they can keep the fund open with that small a pool of investors.
I think it's around 5 years old, so that explains some of the small AUM. But, I imagine there's been a stampede out as well.
@hank Some fund companies are more willing to subsidize a small fund than others. This is worth knowing before you buy if possible because those shops that liquidate small funds too quickly without really giving them a chance can be a nuisance for investors who suddenly have cash and capital gains taxes to pay instead of an investment. I'm not really sure of Oppenheimer's history on this front, but it may be the case they feel they need to have an emerging debt fund in their lineup as one of their product offerings to financial advisers, whether the fund is currently successful or not. Also, I noticed the fund has a new manager so they probably expressed their impatience with the fund that way instead of via a liquidation.
Ironic that my two least bad today were my emerging market funds, HIEMX down just .11% and MINDX actually up 1.55% (my only green of the day.) MINDX seems to have a negative correlation with the rest of my funds.
Comments
I just put a little in OEMAX, Oppenheimer Emerging Market Debt (already owned Class A shares there). It was down over 15% for 1 YR.
What struck me when I looked at the AUM (after investing) is the very low 29M at last report. One wonders how they can keep the fund open with that small a pool of investors.
I think it's around 5 years old, so that explains some of the small AUM. But, I imagine there's been a stampede out as well.
Yeah - I get that impression of Oppenheimer having had a small sum invested with them for 18 years. That's one thing I appreciate about the firm.
Nothing worse than having the rug pulled out from under you after investing in a depressed fund with the intent of waiting it out.