Oppenheimer Capital Income Fund seeks investor participation in rising equity markets while providing downside mitigation in times of volatility and draw¬downs in the broad equity markets. The Fund seeks to achieve these results by investing across three strategies: the Equity, High Grade Fixed Income, and Opportunistic Strategies.
The Opportunistic Strategy plays a critical role in seeking to deliver these outcomes. It seeks to invest in securities with asymmetric return profiles, diversifying characteristics, and those that fulfill the Fund’s investment objectives of providing investors with attractive risk/reward opportunities.
The Fund goes beyond traditional methods of diversification with a multi-asset approach that seeks to invest in securities with superior risk-adjusted return profiles. Its Opportunistic Strategy focuses on improving the Fund’s risk/reward ratio. Its ability to invest across asset classes increases diversification and enhances volatility management. Its ability to invest throughout the capital structure allows it to optimize risk/reward potential. Its fundamental approach and long-term view is designed to uncover opportunities that may help investors achieve their long-term investment goals.
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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. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Value investing involves the risk that undervalued securities may not appreciate as anticipated. Mortgage-backed securities are subject to prepayment risk. Derivative instruments entail higher volatility and risk of loss compared to traditional stock or bond investments. Asset-backed securities are subject to prepayment 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 Fund may also invest through a wholly-owned Cayman Islands subsidiary, which involves the risk that changes to the laws of the Cayman Islands could negatively affect the Fund. Diversification does not guarantee profit or protect against loss.
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 subject to change based on subsequent developments.