As U.S. equity markets continue to surpass nominal highs in 2013, investors may be wondering how international markets — which account for nearly half of global equity market cap these days — are faring. International markets have rebounded off their 2009 lows, and several markets have even posted double-digit positive returns over the past 12 months. [1. Source: FactSet, 5/24/13. Past performance does not guarantee future results.]
But, as you can see in the chart below, it would take fairly sizeable average annual returns in order for the broad European and Emerging Markets indices to retest their 2007 highs. We view this as encouraging news for investors. It suggests that these markets still have room to run, which in turn may translate into growth for investors’ portfolios. We believe that there are several long-term growth themes that are shaping the future of the global economy and markets. And, given our focus on who and where the customers are, not just where a company is headquartered, we see several compelling investment opportunities in Europe and the emerging markets that we believe are well positioned to capitalize on these growth themes.
The Morgan Stanley Capital International (MSCI) Europe Index measures equity market performance in Europe. The MSCI Emerging Markets Index is designed to measure global emerging market equity performance. Each index is 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 any investment. Past performance does not guarantee future results.
Mutual funds are subject to market risk and volatility. Shares may gain or lose value. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and political and economic factors. Investments in emerging and developing markets may be especially volatile.
Diversification does not guarantee profit or protect against loss.
These views represent the opinions of OppenheimerFunds and are not intended as investment advice or to predict or depict the performance of any investment. These views are subject to change based on subsequent developments.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008
© 2013 OppenheimerFunds Distributor, Inc. All rights reserved.
RPL0000.146 June 5, 2013