The best mutual funds for 2015 are likely to come from one of the largest and most reputable investment management firms in the country. One such firm is OppenheimerFunds.
Oppenheimer has been around for more than half a century. Their most notable product offerings are their mutual funds, which are diversified across asset classes for Equities (Global, Growth, Core and Value), Fixed Income (Global Debt, High Yield Corporate Debt, Investment Grade Debt, and Municipal Bonds) and Alternatives (Commodities and MLPs).
In finding the best Oppenheimer funds for 2015, I began by eliminating fund types and categories that have high relative market risk, such as foreign stock, small-cap stock, and high-yield bonds. These areas are susceptible to steep declines in price in the late stage of a bull market, when investors grow increasingly cautious, and therefore rotate out of these securities.
I also wanted to highlight the strength of active management from Oppenheimer funds, which may prove to be a great asset in 2015.
And with that I give you the best Oppenheimer funds for 2015.
Best Oppenheimer Funds for 2015 — Oppenheimer Active Allocation (OAAAX)
The recent outperformance of passively-managed index funds and ETFs over actively-managed portfolios may end in 2015, which is shaping up to be a transitional, stock- and bond-picker’s year.
Therefore the well-managed, go-anywhere-in-the-world Oppenheimer Active Allocation (OAAAX) may be one of the best funds to hold in 2015.
Managing the fund since 2009, Caleb Wong demonstrates superior asset allocation skills compared to World Allocation category peers. The portfolio’s recent allocation was approximately 75% stocks, 30% of which was foreign stocks, and the remainder in bonds and cash. The equity style is predominantly large-cap, with lesser exposure to mid-cap and small-cap stocks.
Past performance for the 5-year return gives Wong’s management a high rank, besting 92% of all other World Allocation funds.
Therefore Oppenheimer Active Allocation is a wise choice for 2015 because of its demonstrated, superior active management and further flexibility in finding investment opportunities all around the globe.
OAAAX has a net expense ratio of 1.19% and has a 5.75% front load. But there are other share classes offered where investors may qualify to buy shares without a load. The minimum initial purchase is $2,500.
Best Oppenheimer Funds for 2015 — Oppenheimer Core Bond (OPIGX)
The best bond funds in 2015 are likely to be well-managed, intermediate-term bond funds like Oppenheimer Core Bond (OPIGX).
Intermediate-term bond funds with a smart blend of credit quality could prove to be the the ideal balance of bond types that proves successful in 2015, and Oppenheimer Core Bond achieves this balance.
A move to short-term bonds can provide some insulation from interest rate risk and price declines resulting from rising interest rates but yields will remain painfully low for most of 2015. Long-term bonds are likely to get hit with falling prices and high-yield bonds will lose if the economy weakens and investors decide to move to the relative safety of higher credit quality.
If you need hints about potential future performance, take a look at the past: Since taking the helm of OPIGX in 2009, manager Krishna K. Memani has proven his ability to navigate the complexities of the bond market by outperforming 97% of his intermediate-term bond category peers.
OPIGX has a net expense ratio of 0.85% and has a 4.75% front load. But there are other share classes offered where investors may qualify to buy shares without a load. The minimum initial purchase is $2,500.
Best Oppenheimer Funds for 2015 — Oppenheimer Capital Income (OPPEX)
If you are looking to preserve gains from nearly six years of stock market advances, you may want to consider using a conservative allocation fund like Oppenheimer Capital Income (OPPEX) in 2015.
The allocation mix for OPPEX recently included approximately 30% stocks, most of which consist of U.S. large-cap value companies, and less than 4% of the stock allocation is in foreign stocks. This makes for a conservative stock blend ready for 2015, which is sure to see its share of volatility and possibly a rotation out of security types that carry more market risk, such as small-cap stocks and emerging markets.
The management team for OPPEX has been in place since 2009 and has ranked in the top quartile or top half of all conservative allocation funds in the past five years.
Investors wanting a solid core holding for an uncertain 2015 should take a close look at Oppenheimer Capital Income.
OPPEX has a net expense ratio of 1.01% and has a 5.75% front load. But there are other share classes offered where investors may qualify to buy shares without a load. The minimum initial purchase is $2,500.
As of this writing, Kent Thune did not hold a position in any of the aforementioned securities. Under no circumstances does this information represent a recommendation to buy or sell securities.