Grab Your Passport Whether you want growth or income, international investments may be just the ticket.
Opinions expressed by BIZ Experiences contributors are their own.
There's plenty of money to be made investing outside theUnited States. Provided, of course, you know where tolook . . . and what to buy.
Frank Jennings, portfolio manager of the Oppenheimer GlobalGrowth & Income Fund since 1995, has the ability to invest hisfund's assets anywhere in the world. And he's not limitedto investing in only one asset class.
That means Jennings has to be pretty good at a lot of differentthings, including seeing what the big picture has to offer and thenferreting out the best investment ideas. "I believe thecustomer understands that I have a great degree of discretion [inmanaging the fund]," says Jennings. "I could be 10percent in Asia or have zero percent invested in Asia. Or I canhave 60 percent in the United States or 20 percent. In other words,you don't know what I'm going to do next."
Although that may be unsettling to those who want to knowprecisely where their fund's assets are placed, allowing aportfolio manager to do what he does best--professionally managemoney--can pay off. Shareholders of the Oppenheimer Global Growth& Income Fund are likely to have few regrets indeed. Since thefund's inception in October 1990, its average annual totalreturn has been 16.67 percent (through the end of October 1999). Atpress time, it was ahead nearly 59 percent for the year.
Jennings' investment style is to look for assets heconsiders undervalued--in the growth arena and inhigh-profit-margin businesses. Because his investing nature tendsto be eclectic, portfolio holdings don't typically follow anyparticular theme. Instead, Jennings says it's kind of a"rifle shot--one idea at a time" fund.
Right now the fund holds about 63 securities, mostly from Europeand the United States. Earlier in 1999, Jennings sold down hisemerging-markets positions in favor of European holdings. At presstime, two of his favorite holdings were Hasbro, the U.S. toymanufacturer, and Thorntons, an English candy maker.
Hasbro caught his eye for a number of reasons. First, it's abig company that owns brand names we know, like Playschool, Kenner,Tonka and Milton Bradley. Another draw was the stock's price.It was selling at what Jennings considered an attractive price. Ontop of that, he saw plenty of foreign growth opportunities in thetoy business as companies like Wal-Mart start opening storesworldwide. And finally, profit margins are high. Next time you buya toy or game for your kids or for kids of friends, take a look athow much stuff is in the box, then at its price, and you'll seewhere Jennings is coming from.
About 13 percent of the fund's assets were invested in bondsas September came to a close. The bulk, 11 percent, were in U.S.Treasury bonds.
Although it might be hard to keep a handle on the changingcomplexion of the holdings within the Oppenheimer Global Growth& Income Fund's portfolio, several things about itaren't likely to change much. The fund will always beinternationally diverse and provide income from dividend-payingstocks as well as bonds. And it will always be volatile. Thenagain, these days, what isn't?
Dian Vujovich is a nationally syndicated mutual fundcolumnist and author of 101 Mutual Fund FAQs (Chandler HousePress). For free educational mutual fund information, visit her Website, http://www.diansfundfreebies.com
At A Glance
Fund name: Oppenheimer Global Growth & Income Fund(OPGIX)
Managed by: OppenheimerFunds Inc.
Portfolio manager: Frank Jennings
Total assets: $965 million
Top holdings: Allied Domecq PLC, Coherent Inc., NationalSemiconductor Corp., Qualcomm Inc. and Sybase Inc.
Average annual Return: 16.67% (since its inception in1990)
Maximum Load: 17.9% on Class A shares (Class B and Cshares available).
Total expense ratio: 1.36% (includes 12b-1 fees of0.24%)
Minimum initial investment: $1,000
Management fee: .79%
Phone: (800) 525-7048
Web site: http://www.oppenheimerfunds.com
