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Oppenheimer Emerging Markets Innovators Fund (EMIYX)

EMinvestor
in Fund Discussions
I have not seen this fund discussed on here. Justin Leverenz, the highly successful manager of Oppenheimer Developing Markets Fund, is one of the managers. There is a co-manager as well named Heidi Heikenfeld. It looks to invest in much smaller EM companies.

At first glance, having Leverenz manage a small fund is very attractive. I wonder though if he will spend enough time on it, and worry that the unknown Heikenfeld will have more responsibility.

Any thoughts?

Comments

  • TedTed
    @EMinvrstor: Whether Leverenz's skill with ODMAX can rub-off on EMIYX remains to be seen. EMIYX is less than six months old, and only time will tell, but now might be an attractive entry point.
    Regards,
    Ted
  • finder
    Interesting fund. Leverenz shares responsibility with Heidi Keikenfeld. Apparently it is her first time that she manages a fund. Leverenz has more than 1M of his money in the fund, and Keikenfeld has from 100 K to 500 K in the fund. The statement of additional info is
    https://www.oppenheimerfunds.com/doc/Emerging_Markets_Innovators_Fund_SAI.pdf
  • EMinvestor
    I can't find it. What page is that on?
  • LLJB
    I like the make-up of the fund so far. Its investments are not just in "emerging" markets, but also frontier markets and even a few developed markets, although I gather those are investments in companies who are registered in a developed country but do most or all of their business in emerging markets. Its overweight consumer cyclicals and healthcare by a good amount and I like that too. I've been watching ODMAX for a while hoping it would open again to no avail, but this might be a nice alternative, especially with the innovation theme.

    @EMinvestor, thanks for pointing this out!
  • finder
    The information about the contribution of Leverenz and Keikenfeld to the fund is at page 48 of the Statement of Additional Information
    https://www.oppenheimerfunds.com/doc/Emerging_Markets_Innovators_Fund_SAI.pdf
  • EMinvestor
    Thanks. I wish I knew how much over $1MM Leverenz has in the fund. $1MM isn't a ton of money for him probably.:)

    I wonder why Oppenheimer isn't promoting this fund more? Leverenz was in Barron's this weekend and this new fund wasn't even mentioned!
  • finder
    edited November 2014
    It could be that Keikenfeld is in the lead, or this is a fund for small ideas which would not move a needle in his huge fund. The last possibility may be good.
  • EMinvestor
    It is a fund for small caps, which is attractive to me. I just want to know whether Leverenz is running the show.
  • LLJB
    I'd consider writing to them and just asking in some politically correct way. My experience with most fund shops has been pretty good when I ask questions and while I doubt they'll minimize Keikenfield's role but I wouldn't be surprised if they'll give you some hints in how they describe Leverenz's role.
  • EMinvestor
    Thanks. Should I write anyone in particular or just click on the "contact us" page?
  • LLJB
    Whenever I write I just use the contact us link. And as to your thought about how much more than $1MM Leverenz has in the fund, I'm sure they won't tell you. But in the SAI also on page 48 it talks about how the managers are compensated. The long-term award is 20% of annual compensation and the managers have to elect whether to receive 20% or 40% of that long-term component in the form of deferred cash investments in the funds managed. I suspect they won't tell you which choice the managers have made, but it seems to me that would be more likely to get an answer than a question about how much more than a million is invested and it has a decent impact on their alignment with shareholders assuming at least Leverenz's total compensation is well into 7 digits.
  • kevindowkevindow
    In the multi-cap EM equity space, I continue to prefer WESNX which continues to be open to new investors at Scottrade for a $2500 minimum + TF in taxable and retirement accounts. And WESNX has outperformed EMIYX since its inception. Disclosure: we like and own WESNX.

    Kevin
  • LLJB
    @kevindow, thanks for the idea. Do you have an idea what helped them do so well last year when emerging markets weren't the place to be? And is there something you prefer about their investment approach or is it other factors that lead you to prefer WESNX? Thanks in advance!
  • AndyJ
    edited November 2014
    Fyi, just did a quick check of WESNX at M* and Fidelity, and they're both showing it as closed to new investors.
  • Old_JoeOld_Joe
    Seems to be open at Schwab, though.
  • finder
    edited November 2014
    WESNX is managed by the same managers that are responsible for several other international and emerging market funds at William Blair, but only this fund is a standout. I wonder what could be the reason, and whether this outperformance may last.
  • Old_JoeOld_Joe
    edited November 2014
    Ain't that the real question! I'm looking at WAFMX: 4.8% YTD and GPROX: 7.4% YTD, both decent funds, and really wondering about WESNX at some 16%. Seems too good to be true.
  • LLJB
    The prospectus says the fund is closed with a handful of exceptions, none of which seem like they would apply to new investments at either Schwab or Scottrade unless you were using a financial advisor and paying an asset based fee. But indeed Schwab's website seems to suggest the fund is open. I didn't try to process an order but maybe it would have stopped me at some point. E*TRADE also says its closed to new investors.
  • Ace
    WESNX has been helped by a big weighting in small cap Indian stocks, almost 25% of the portfolio, and Indian small caps have returned about 50% YTD. The fund was also helped by its overweight (30% vs 17%) in Consumer Discretionary stocks.
  • AndyJ
    Old_Joe said:

    Ain't that the real question! I'm looking at WAFMX: 4.8% YTD and GPROX: 7.4% YTD, both decent funds, and really wondering about WESNX at some 16%. Seems too good to be true.

    Not familiar with WESNX, but here's another maybe similar EM/FM success story: MEASX = +18.8% YTD. Apparent source = India + a relative ton of frontier positions, very much tilted toward the consumer.
  • RedRockHiker
    @LLJB, I made a first time purchase of WESNX around Labor Day of this year in my IRA at Schwab. No problems. At the time M* said it was closed. Very satisfied with the fund so far.
  • kevindowkevindow
    @LLJB, sorry for the delay in my response as I have been consumed by work. The managers of WESNX also manage WBENX and WELNX, and all of these funds have done well since inception, so I have confidence in the managers. Also, these funds do not hug the EM equity indices, which is a good thing. In addition, I like the well-thought-out fund commentaries such as the most recent one for WESNX. And finally, the fund company has limited fund inflows to WBENX and WESNX as assets have increased, which displays responsible fund stewardship, which is also a good thing.

    Kevin
  • finder
    I invested in WBENX since its inception, and I learned my lesson hard way. In the beginning, it was rising super-fast, but then it plunged down even faster, so badly that I could not stand it and sold. From its top down, it has fallen 70%, which was just horrible. How many of us would stay the course? After that, it was doing well on its way up, but nobody knows how fast it will fall when (not if) there is a correction. I do not know whether WESNX is going to behave any better; maybe its managers are wiser now.
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