International and global equities

Oppenheimer International Growth Fund: What we learned from the last year

February 10, 2021
George Evans
George Evans
Chief Investment Officer, Global Equities, Invesco
Oppenheimer International Growth Fund: Learning from 2020

Our consistent focus on structural growth trends served us well

During an extremely volatile year dominated by the COVID-19 pandemic, the consistency of our philosophy and process continued to serve us and our investors well. The pandemic forcefully reminded us that events do not change trends; they only accelerate or decelerate them. Many of the structural trends that accelerated during the year are trends in which we have long been invested, including:

  • Buying online
  • Working remotely
  • Using social media
  • Streaming entertainment at home
  • Employing more technology in medical research, treatment, patient management, and communication

New buying opportunities emerged

The dramatic sell-off that global equity markets experienced in March 2020 provided a once-in-a-decade opportunity to initiate positions at attractive prices in companies that had been on our watchlist for years, including:

  • Classic quality growth compounders with very high market share, growing sales, and stable, high returns on capital
  • Leading edge companies with the potential to succeed by disrupting their industries
  • Companies that we believe will rebound with even a moderate return to normalcy following the pandemic (We know people will return to attending the theater, sporting events, and restaurants, as they have done for hundreds of years.)

2021 and beyond

Looking ahead to 2021, we believe pent-up demand will drive rapid growth and step changes in secular trends will persist. Over the medium term, we believe growth stocks will continue to outperform value stocks. We note that, in many ways, equities are priced for a perfect exit from the COVID-19 crisis and any less positive outcome will lead to disappointment and a possible correction. Regardless of short-term market trends, we will adhere to our discipline of investing in companies that can sustainably monetize our structural investment themes for many years.

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OFI International Growth fund page

OFI International Growth fund page

Special risks: In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions. The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues. Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale. Growth stocks tend to be more sensitive to changes in their earnings and can be more volatile. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

The opinions expressed are those of the Portfolio Managers of the Invesco Oppenheimer International Growth Fund and are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.