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A Memorable Year for Munis

For as long as we have managed municipal bond funds designed to generate competitive levels of yield-driven total return, we have also believed in the importance of sharing market insights with investors and financial advisors. This year’s Overview, like its predecessors, offers a wealth of information about the news developments, market trends and investing strategies that affected fund performance. As we do every year, the team at Oppenheimer-Funds/Rochester aspires to help investors meet their goals for tax-free income while financing a wide variety of civic projects. This Overview explains how we approach these worthy endeavors. Read Now »

Annual Overview 2013 

Table of Contents

    • Like the green stripe that bisects Amélie Matisse's face in Henri Matisse's masterful portrait, municipal bond fund performance in 2013 was memorable, rather unnerving and impossible to ignore. Read now »

    • The Master Settlement Agreement turned 15, but the most significant cause for celebration was the favorable arbitration panel ruling that resolved a 2003 payment dispute. Read now »

    • Yield-rich sectors—including airlines, housing and hospitals/healthcare—continued to help our funds deliver the highly competitive dividends that our investors seek. Read now »

    • What started in 2012 as dark clouds and waves of concern became a surprisingly damaging storm in 2013. While we saw credit fundamentals that were improving, others only saw riptides of potential crises. Read now »

    • By many measures, the "state of the states" improved in 2013, a development that we believe is good for investors in municipal bonds and municipal bond funds. Read now »

    • We are gratified that our funds produce two kinds of dividends: the tax-free ones that investors collect and the figurative dividends that can be felt for years to come across U.S. communities. Read now »

    • Oppenheimer Rochester offers an array of choices with our Maturity Managed, AMT-Free, State-Specific and High Yield municipal bond funds. Read now »


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. The funds may also invest substantially in Puerto Rico and other U.S. territories, commonwealths and possessions, and could be exposed to their local political and economic conditions.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
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