Municipal bonds enable investors to pursue tax-free income. Portfolios that focus on intermediate-term municipals enable investors to pursue more income than short-term bonds deliver without taking on the volatility associated with long-term portfolios.
Oppenheimer Intermediate Term Municipal Fund, launched in 2010, has an established track record for delivering yield-driven total returns.
The fund focuses on investment-grade bonds and seeks to maintain an average effective maturity in the range of 3 to 7 years. It is designed for investors who are seeking a predictable after-tax income stream and a carefully managed exposure to price volatility.
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Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value.
Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates, or an expectation of rising interest rates in the near future, will cause the values of a Fund’s investments to decline. Risks associated with rising interest rates are heightened given that rates in the U.S. are at, or near, historic lows. When interest rates rise, bond prices fall and a fund’s share price can fall. Municipal bonds are subject to default on income and principal payments. Further, a portion of some funds’ distributions may be taxable and may increase alternative minimum tax (AMT) for investors subject to that tax; distributions from net realized capital gains are taxable as capital gains.
The funds invest in below-investment-grade debt securities, which may entail greater credit risks, as described in each fund’s prospectus. These securities (sometimes called “junk bonds”) may be subject to greater price fluctuations and risks of loss of income and principal than investment-grade municipal securities. The funds may invest substantially in municipal securities within a single state or related to similar type projects, which can increase volatility and exposure to regional issues.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.