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MUNICIPAL BOND

Rochester® High Yield Municipal Fund 1 2 3 a

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Focus: This Strategy typically invests in high-yield municipal bonds issued across the United States.
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c
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Shares Ticker CUSIP Inception
Date
Pricef Price Change 12 Month High 12 Month
Low
A ORNAX 683940308 10/1/93 6.96 0.00 7.76 6.50
Be ORNBX 683940407 10/1/93 6.99 0.00 7.80 6.53
C ORNCX 683940886 8/29/95 6.93 0.00 7.74 6.48
Y ORNYX 683940852 11/29/10 6.95 0.00

as of 4/17/14

The net expense ratio represents the Fund's gross expense ratio less certain interest and related expenses from the Fund's investment in inverse floaters, as reported in the latest prospectus. Under accounting rules, the Fund recognized additional income in an amount that offsets those expenses. the Fund's total returns and net asset values are not affected by those offsets.

 

The net expense ratio is not the result of a fee waiver or expense reimbursement.

 

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance and expense ratios may be lower or higher than the data quoted. All fund returns include change in share price, reinvested distributions and the sales charges as listed below, unless "without sales charge" is indicated. Returns do not consider capital gains or income taxes on an individual's investment. Class A Share returns include a maximum sales charge of 5.75% (equity), 4.75% (most fixed income), 3.5% (Senior Floating Rate Fund, Senior Floating Rate Plus), 2.25% ("limited term" fixed income funds and Currency Opportunities Fund) and 0% (Money Market Funds). Class B Share returns include contingent deferred sales charge as follows:  For years 1 - 6 respectively, charges are 5%, 4%, 3%, 3%, 2%, 1% except for "limited term" fixed income funds (4%, 3%, 2%, 2%, 1%, 0%) and Senior Floating Rate (3%, 2% 1.5%, 1.5%, 1%, 0%). Class C Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.75%. Class N Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.25%. Annual asset-based sales charges are applied as follows: 0.75% on Class B/C; and 0.25%  for Class N shares. Class Y shares are not subject to a sales charge. 

 

The net expense ratio represents the Fund's gross expense ratio less certain interest and related expenses from the Fund's investment in inverse floaters, as reported in the latest prospectus. Under accounting rules, the Fund recognized additional income in an amount that offsets those expenses. the Fund's total returns and net asset values are not affected by those offsets.

 

The net expense ratio is not the result of a fee waiver or expense reimbursement.

 

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance and expense ratios may be lower or higher than the data quoted. All fund returns include change in share price, reinvested distributions and the sales charges as listed below, unless "without sales charge" is indicated. Returns do not consider capital gains or income taxes on an individual's investment. Class A Share returns include a maximum sales charge of 5.75% (equity), 4.75% (most fixed income), 3.5% (Senior Floating Rate Fund, Senior Floating Rate Plus), 2.25% ("limited term" fixed income funds and Currency Opportunities Fund) and 0% (Money Market Funds). Class B Share returns include contingent deferred sales charge as follows:  For years 1 - 6 respectively, charges are 5%, 4%, 3%, 3%, 2%, 1% except for "limited term" fixed income funds (4%, 3%, 2%, 2%, 1%, 0%) and Senior Floating Rate (3%, 2% 1.5%, 1.5%, 1%, 0%). Class C Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.75%. Class N Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.25%. Annual asset-based sales charges are applied as follows: 0.75% on Class B/C; and 0.25%  for Class N shares. Class Y shares are not subject to a sales charge. 

 

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Peer Group

Lipper Category

High Yield Municipal Debt Funds

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Fund Management

Management Team

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Investment Minimums

Initial: $1,000

Total Assets g

$5.5 billion

(all classes as of 3/31/14)

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Morningstar
Rating hi

as of 03/31/2014

star star star

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f
cf
e

The net expense ratio represents the Fund's gross expense ratio less certain interest and related expenses from the Fund's investment in inverse floaters, as reported in the latest prospectus. Under accounting rules, the Fund recognized additional income in an amount that offsets those expenses. the Fund's total returns and net asset values are not affected by those offsets.

 

The net expense ratio is not the result of a fee waiver or expense reimbursement.

 

The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance and expense ratios may be lower or higher than the data quoted. All fund returns include change in share price, reinvested distributions and the sales charges as listed below, unless "without sales charge" is indicated. Returns do not consider capital gains or income taxes on an individual's investment. Class A Share returns include a maximum sales charge of 5.75% (equity), 4.75% (most fixed income), 3.5% (Senior Floating Rate Fund, Senior Floating Rate Plus), 2.25% ("limited term" fixed income funds and Currency Opportunities Fund) and 0% (Money Market Funds). Class B Share returns include contingent deferred sales charge as follows:  For years 1 - 6 respectively, charges are 5%, 4%, 3%, 3%, 2%, 1% except for "limited term" fixed income funds (4%, 3%, 2%, 2%, 1%, 0%) and Senior Floating Rate (3%, 2% 1.5%, 1.5%, 1%, 0%). Class C Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.75%. Class N Share returns include a 1% contingent deferred sales charge and are subject to an annual asset-based sales charge of 0.25%. Annual asset-based sales charges are applied as follows: 0.75% on Class B/C; and 0.25%  for Class N shares. Class Y shares are not subject to a sales charge. 

 

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Top Holdings 7  as of 3/31/14
 View More Holdings
  % Net Assets
1 Buckeye, OH Tobacco Settlement Financing Authority 2.6
2 TX Muni Gas Acquisition & Supply Corp. ROLs 2.6
3 NJ Tobacco Settlement Financing Corp. 2.1
4 CA Golden St Tobacco Securitization Corp. ROLs 2.0
5 Commonwealth of Puerto Rico General Obligation Unl 1.7
6 NJ Tobacco Settlement Financing Corp. ROLs 1.5
7 NJ Tobacco Settlement Financing Corp. 1.5
8 Puerto Rico Commonwealth GO 1.3
9 Buckeye, OH Tobacco Settlement Financing Authority 1.2
10 NYC IDA (American Airlines) 1.2
  Total 17.7
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8 7 
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Risk Measurement j as of 3/31/14
Share Class Beta
(3 yr)
Alpha R-squared Sharpe Ratio Standard Deviation (3 yr)
A 1.69 0.42 76.91 1.29 7.7%
Be 1.69 -0.37 76.60 1.19 7.7%
C 1.69 -0.35 76.45 1.19 7.7%
Y 1.69 0.59 77.21 1.32 7.7%
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Portfolio Statistics as of 3/31/14 ——
Turnover
Ratio
Duration
(years)9 
Effective
Average
Maturity
Prerefunded Bonds
18.0% 8.67 14.02
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Top States 7  as of 3/31/14
  % Net Assets
1 California 16.0
2 Florida 11.8
3 Puerto Rico 11.6
4 Texas 10.6
5 Ohio 9.2
6 New York 8.3
7 Illinois 6.6
8 New Jersey 6.3
9 Colorado 4.6
10 Michigan 3.0
  Total 88.0
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Top Sectors 7  as of 3/31/14
  % Net Assets
1 Tobacco Master Settlement Agreement 24.4
2 Hospital/Healthcare 13.1
3 Special Assessment 10.8
4 General Obligation 8.2
5 Airlines 7.9
6 Adult Living Facilities 7.6
7 Tax Increment Financing (TIF) 5.4
8 Sales Tax Revenue 4.3
9 Sewer Utilities 4.1
10 Municipal Leases 3.2
  Total 88.9
—— —— —— —— Income Dividends ($ per share) 10 k
Dividend/Share ($) 12-Month Distribution ($)
A 0.0410 0.4920
Be 0.0369 0.4350
C 0.0370 0.4387
Y 0.0418 0.5021

Frequency: Monthly Pay Date: 3/25/14

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e
—— Capital Gains Distributions ($ per share)as of 4/17/14
  Short-Term ($) Long-Term ($) Total Amount of Distribution ($) Record Date Ex Div Date Pay Date
2013
2012
2011
2010
2009
2008
2007
2006 0.0055 0.0000 0.0055 12/28/06 12/28/06 12/28/06
2005 0.0096 0.0000 0.0096 12/29/05 12/29/05 12/29/05
2004

There is no guarantee of the payment of any dividend or other distributions at any level.

 

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Strategy

Using a disciplined approach that seeks to maximize tax-free income, the Rochester-based municipal bond fund team focuses on providing highly competitive yields from diverse portfolio of carefully assessed muni bonds. It’s what we call the Rochester Way.
 
The portfolio managers of Oppenheimer Rochester National Municipals have broad discretion in their investment decisions. The Fund may be fully invested in high yield, lower-grade and below-investment-grade, fixed income securities. The Fund’s diversity, which can help reduce the overall risks of owning speculative bonds, helps the Fund generate competitive levels of tax-free yield.
 
High Yield versus Quality – A Tradeoff  The Fund invests primarily in lower-rated, high yield bonds. While these bonds carry a greater risk of default than higher-quality issues, they have the potential to compensate investors with significantly more tax-exempt income and have been far less sensitive to interest rate volatility historically.
 
A Focus on Income This Fund seeks long-term total return that consists primarily of tax-free income – real new investment-generated dollars that shareholders may keep, spend or reinvest as they see fit. The Fund adheres to a yield-driven, security-specific and value-oriented approach to fund management. This focus reflects the fact that the majority of a bond’s return typically comes from income rather than price appreciation.
 
Research and Experience The municipal market can be inefficient. Thus, if you are willing to spend the time – as we are- you can often uncover exceptional opportunities. No matter how large or small the bond issue, we apply our significant experience to the task of researching issuers, creditworthiness and security structures.
 
Turning Over Every Stone We have found some of the best opportunities to pick up added performance in smaller, unrated and lower-rated issues. 
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Commentary

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Special Risks: Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and the Fund's share prices can fall. May invest without limit in below-investment-grade ("high yield" or "junk") bonds, which are more at risk of default and are subject to liquidity risk. Large sector holdings (such as tobacco) may expose investors to greater volatility and special risks associated with that sector. The Fund may invest in the segment of the municipal bond market that is unrated by a Nationally Recognized Statistical Rating Organization ("NRSRO").  The pool of unrated securities includes securities that may be of high or low credit quality. Unrated securities with higher yields relative to market averages may be purchased by the Fund to enhance yield.  Unrated securities may also be offered by highly creditworthy issuers who forgo the time and expense of obtaining a published rating.  Under certain market conditions, some unrated securities may trade less actively than rated securities.

A portion of the Fund's distributions may be subject to tax and may increase taxes for investors subject to Alternative Minimum Tax (AMT).  Capital gains distributions are taxable as capital gains. Tax treatments of the Fund's distributions and capital gains may vary by state; investors should consult a tax advisor to determine if the Fund is appropriate for them.

Prior to 11/27/13, the Fund's name was Oppenheimer Rochester National Municipals.

Access index definitions.

The dividend (or distribution) yield is based on the pay date immediately preceding the nearest month-end or quarter-end. The dividend yield for each share class is calculated by annualizing the dividend distributed by the class on that date and dividing that figure by the class's net asset value on that date. For the Class A dividend yield with sales charge, the annualized Class A dividend distribution is divided by the Class A maximum offering price on that date. Each result is compounded semiannually and annualized. Falling share prices artificially increase yields.

Standardized yield for each share class is based on the Fund's net investment income for the 30-day period ending and including the most recent month-end or quarter-end and either that date's maximum offering price (Class A shares) or net asset value (for other share classes). The month-end figure is typically calculated on the fifth business day of the next month. The result is compounded semiannually and annualized. Falling share prices artificially increase yields.

Holdings are subject to change, and are dollar weighted based on total net assets. Negative weightings may result from the use of leverage. Leverage involves the use of various financial instruments or borrowed capital in an attempt to increase investment return. Leverage risks include potential for higher volatility, greater decline of the fund's net asset value and fluctuations of dividends and distributions paid by the fund.

All securities except for those labeled "unrated" have been rated by at least one Nationally Recognized Statistical Rating Organization ("NRSRO"), such as Standard & Poor's ("S&P"). For securities rated only by an NRSRO other than S&P, OppenheimerFunds, Inc. converts that rating to the equivalent S&P rating. If two or more NRSROs have assigned a rating to a security, the highest rating is used. Unrated securities do not necessarily indicate low credit quality. The credit rating table values may not total 100% due to rounding. "Investment-grade" securities are securities rated within the NRSROs four highest rating categories (AAA, AA, A and BBB.) Securities not rated by an NRSRO may or may not be equivalent of investment grade. For further details, please consult the Fund's Prospectus or Statement of Additional Information.

Duration measures interest-rate sensitivity; the longer the duration, the greater the expected volatility as rates change.

While the Dividend/Share column is updated the next business day after a dividend payment (as stated in the date below the table), the 12-Month Distribution ($) column is updated monthly. Therefore, there may be a time where the 12-Month Yield data is inconsistent with the Dividend/Share data.

Prior to October 1, 2001, this Fund was a non-diversified municipal bond fund that focused primarily on tax-exempt, investment-grade obligations of the State of Florida and its subdivisions and municipalities.  Therefore, performance before October 1, 2001, is not indicative of performance for any subsequent period.

For Class A Shares the starting value is $9,525 which takes into account the current maximum initial sales charge (unless 'no sales charge' option is chosen).

"Year to Date" returns are cumulative, not annualized, and do not reflect sales charges.  These returns would be lower if sales charges were taken into consideration.  Short-term returns may not be indicative of longer-term performance, which should also be considered when making investment decisions.

Index performance will be available approximately five days after each month-end.

Class B shares convert to Class A shares 72 months after purchase; therefore "since inception", "10-year" and "15-year" returns for Class B (if applicable) use Class A performance for period after conversion.

Daily net asset value and dollar change of the fund is as of the previous business day's closing. Fund net asset values are updated at approximately 7 p.m. ET daily.

When considering the effects of leverage from inverse floaters, the Fund's total assets are increased by 16.61%.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance.  The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star with some adjustments for multiple share class portfolios.   The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five and ten-year (if applicable) Morningstar Rating Metrics.  Oppenheimer Rochester High Yield Municipal Fund was rated against the following numbers of U.S.-domiciled High Yield Muni over the following time periods ended 3/31/14:  153 funds in the last three years, 123 funds in the last five years, and 91 in the last ten years.  With respect to these High Yield Muni funds, Oppenheimer Rochester High Yield Municipal Fund received a Morningstar Rating of 4 stars, 5 stars and 1 stars for the three-, five-, and ten-year periods, respectively.  Morningstar Rating is for the A share class only and rating may include more than one share class of funds in the category, including other share classes of this Fund. Different share classes may have different expenses, performance characteristics and Morningstar ratings.  Past performance is no guarantee of future results.

Class A shares rated 3 stars overall by Morningstar among  153  High Yield Muni funds for the 3-, 5-, and 10 year period ended 3/31/14 based on risk-adjusted performance.

Beta (3-yr): is a measure of a fund's sensitivity to market movements. The beta of a market is 1.00 by definition.

Alpha (3-yr): measures the difference between a fund's actual and expected returns, based on beta, and is generally used as a measure of a manager's added value over a passive strategy.

R-squared (3-yr): is a measurement of how closely a portfolio's performance correlates with the performance of a benchmark index, and thus a measurement of what portion of its performance can be explained by the performance of the index. Values for R-squared range from 0 to 100, where 0 indicates no correlation and 100 indicates perfect correlation.  

Sharpe Ratio (3-yr): is a risk-adjusted measure that measures reward per unit of risk. the higher the Sharpe Ratio, the better. The numerator is the difference between the portfolio's annualized return and the annualized return of a risk-free instrument, the denominator is the portfolio's annualized standard deviation (population).

Standard Deviation (3-yr): is a statistical measure of the degree to which the performance of a portfolio varies from its average performance during a specified period. the higher the standard deviation, the greater the volatility of the portfolio's performance returns relative to its average return.

Alpha, Beta and R-Squared were measured against the fund's benchmark: . Access index definitions.

Source: Morningstar, Inc. Although this data has been gathered from sources Morningstar believes to be reliable, its completeness and accuracy cannot be guaranteed.

There is no guarantee of the payment of any dividend or other distributions at any level.

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.
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