Rate this article

Funds Are Off to a Strong Start This Season


  • The muni market is off to its best start since 2009, rising 3.8% in the first quarter.
  • To us, the world of municipal investing is a long game and the season’s still young.
  • Our 20 funds delivered positive returns during the year’s first 3 months.
  • Big offerings by Puerto Rico and California, we think, buoyed investor confidence.

With three months in and nine to go, 2014 already feels like a good year for muni investors.  The muni market is off to its best start since 2009 – rising 3.8% in the first quarter vs. 4.4% in the same quarter of 2009, according to Bank of America Merrill Lynch data – and that has been a welcomed change after the performance results in 2013.

Given that the first quarter ended on Opening Day, it’s only fitting for muni investors to note that “the season’s still young.”  And, while baseball’s winners and losers sort themselves out during the 162-game season and the playoffs that follow, the world of municipal investing – to switch sports metaphors – is a long game that benefits from a steady hand and the ability to stay calm and focused.  As always, the team at Oppenheimer Rochester did just that in the first quarter of the year. 

Each of our 20 municipal bond funds delivered positive total returns for the first quarter of 2014.

Access our complete Q1 Rochester Muni Market Perspective for more information. 


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 associates 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 oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008