——

MUNICIPAL BOND

Rochester® Short Term Municipal Fund 1 2 

——
Focus: The Strategy typically invests in municipal bonds issued across the United States.
——
a
a
b
c
3 
4 
5 
—— ——
Shares Ticker CUSIP Inception
Date
Priced Price Change 12 Month High 12 Month
Low
A ORSTX 68385Y107 12/6/10 3.73 0.00
C ORSCX 68385Y206 12/6/10 3.73 0.00
Y ORSYX 68385Y305 12/6/10 3.73 0.00

as of 4/17/14

The net expense ratio also takes into account contractual fee waivers and/or expense reimbursements without which performance would have been less. These undertakings may not be amended or withdrawn for one year from the date of the current prospectus, unless approved by the Board.

 

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 also takes into account contractual fee waivers and/or expense reimbursements without which performance would have been less. These undertakings may not be amended or withdrawn for one year from the date of the current prospectus, unless approved by the Board.

 

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. 

 

——

Peer Group

Lipper Category

Short Municipal Debt Funds

——

Fund Management

Management Team

——

Investment Minimums

Initial: $1,000

Total Assets

$383.4 million

(all classes as of 3/31/14)

——

Morningstar
Rating ef

as of 03/31/2014

star star star

——

Lipper Peer Rankingg

Among Short Municipal Debt Funds. Based on Total Return as
of 3/31/14

  1 YR
Percentile 13
Rank # 12/95

——
d
bd

The net expense ratio also takes into account contractual fee waivers and/or expense reimbursements without which performance would have been less. These undertakings may not be amended or withdrawn for one year from the date of the current prospectus, unless approved by the Board.

 

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. 

 

——
——

Lipper Peer Rankingg: Short Municipal Debt Funds

  Percentile Rank #
1 Yr 13 12/95

as of 3/31/14

——
Top Holdings 6  as of 3/31/14
 View More Holdings
  % Net Assets
1 CA Public Works 4.5
2 IL Toll Highway Authority 3.7
3 Orange Cnty, CA COP (Civic Center Facilities) 2.8
4 Michigan Finance Authority 2.7
5  MS Hospital Equipment & Facilities Authority 2.4
6 Barclays Capital Muni Trust Reciepts Various State 2.3
7 Pima Country, AZ Industrial Development Authority 2.1
8 Centerpoint, IL Intermodal Center Program 2.1
9 Puerto Rico Commonwealth GO 1.9
10 Puerto Rico Commonwealth GO 1.9
  Total 26.4
——
7 6 8 
—— ——
——
Portfolio Statistics as of 3/31/14 ——
Turnover
Ratio
Duration
(years)9 
Effective
Average
Maturity
Prerefunded Bonds
16.0% 1.60 1.77 0.61
——
Top States 6  as of 3/31/14
  % Net Assets
1 California 20.2
2 Puerto Rico 13.5
3 Illinois 13.3
4 Michigan 8.2
5 Colorado 3.6
6 Pennsylvania 3.2
7 Florida 3.0
8 Alabama 2.9
9 New York 2.8
10 Arizona 2.8
  Total 73.4
——
Top Sectors 6  as of 3/31/14
  % Net Assets
1 General Obligation 21.0
2 Municipal Leases 12.8
3 Hospital/Healthcare 8.6
4 Highways/Commuter Facilities 7.7
5 Water Utilities 5.6
6 Housing - Multi-Family 5.0
7 Tax Increment Financing (TIF) 4.6
8 Education 4.1
9 Sewer Utilities 3.9
10 Diversified Financial Services 3.1
  Total 76.5
—— —— —— —— Income Dividends ($ per share) 10 h
Dividend/Share ($) 12-Month Distribution ($)
A 0.0060 0.0690
C 0.0039 0.0398
Y 0.0067 0.0784

Frequency: Monthly Pay Date: 3/25/14

——
—— 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 0.0016 0.0000 0.0016 12/28/12 12/28/12 12/28/12
2011
2010
2009
2008
2007
2006
2005
2004

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

 

——

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.
 
Oppenheimer Rochester Short Term Municipal Fund is managed to an average effective maturity of two years or less while imposing strict limitations on investments in bonds rated below A-minus, non-rated bonds and below-investment-grade bonds.  In addition, this fund will not invest in derivatives such as inverse floaters, which can amplify volatility.  
 
Shorter-Term, High-Quality Bonds for More Cautious Investors Shorter-term bonds are less affected by changes in interest rates than longer-term bonds, providing greater price stability in a changing marketplace. Conversely, longer-term and lower-quality bonds can be more volatile. This fund’s limitations on average effective maturity and below-investment-grade securities were put in place in an effort to reduce share-price volatility.
 
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. 
——

Commentary

» Access all commentaries

Title
Content Type
Date

There are no DFI Commentary articles available.

Special Risks Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and the Fund's share prices can fall. May invest up to 5% 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 may expose investors to greater volatility and special risks associated with that sector. May invest substantially in U.S. territories, commonwealths and possessions, and could be exposed to their local political and economic conditions. 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. * Restriction applied at time of purchase and includes unrated securities that are rated internally by the Manager. Market fluctuations or credit rating changes may cause the Fund's holdings of below-investment-grade securities to exceed this restriction, at times significantly, for an extended period of time. The Fund will not invest more than 5% of its total assets in unrated securities. However, this limitation does not apply to unrated debt that has similar characteristics and is comparable to NRSRO rated debt issued by the same issuer or guaranteed by the same guarantor.

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.

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.

The Fund will not invest more than 5% of its total assets in unrated securities. However, this limitation does not apply to unrated debt that has similar characteristics and is comparable to NRSRO rated debt issued by the same issuer or guaranteed by the same guarantor.

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.

For Class A Shares the starting value is $9,775 which takes into account the current maximum initial sales charge (unless 'no sales charge' option is chosen). For portions of this period, sales charges were higher and performance may been less.

"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.

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.

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 Short Term Municipal Fund was rated against the following numbers of U.S.-domiciled Muni National Short over the following time periods ended 3/31/14:  152 funds in the last three years, funds in the last five years, and in the last ten years.  With respect to these Muni National Short funds, Oppenheimer Rochester Short Term Municipal Fund received a Morningstar Rating of 3 stars, — stars and — 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  152  Muni National Short funds for the 3-, 5-, and 10 year period ended 3/31/14 based on risk-adjusted performance.

Lipper ranking is for class A shares and ranking may include more than one share class of funds in the category, including other share classes of this Fund. Ranking is based on total return as of the above date, without considering sales charges. Different share classes may have different expenses and performance characteristics. Past performance does not guarantee future results.

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.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008