In our view, passive fixed-income strategies replicating the Bloomberg Barclays U.S. Aggregate Index1 (the “Aggregate”) may be a less-than-optimal investment strategy going forward. This is primarily due to the Aggregate’s sizable exposure to U.S. Treasuries and the material deterioration of its corporate credit quality makeup. By seeking out diversified exposure to what we believe are the most attractive risk-adjusted sector opportunities, active security selection and the use of stop-outs, the OppenheimerFunds’ Investment Grade Debt Team (IGD Team) has historically and consistently solved for this so-called Aggregate problem.
OppenheimerFunds Investment-Grade Debt Offerings
The OppenheimerFunds Investment Grade Debt Team is a well-experienced and tenured team averaging 22 years of industry experience and 10 years at the firm. Since its March 2009 inception, the team has employed a top-down, bottom-up approach predicated on risk control. Historically, this approach has yielded consistent risk-adjusted outperformance—with benchmark-like volatility—in its purpose to serve as the “ballast” of a fixed-income portfolio.
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- ^ The Bloomberg Barclays U.S. Aggregate Bond Index is an index of U.S. dollar denominated, investment-grade U.S. corporate government and mortgage-backed securities. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any Oppenheimer Fund. The index is unmanaged and cannot be purchased directly by investors. Past performance does not guarantee future results.
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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. When interest rates rise, bond prices generally fall, and a fund’s share prices can fall. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile.
The mention of specific securities or sectors does not constitute a recommendation on behalf of any Fund or OppenheimerFunds, Inc.
There can be no assurance that any investment process or strategy will achieve its investment objective.
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.