For investors facing an overwhelming blizzard of financial information, Oppenheimer Rochester’s approach to fund management should feel like a perfectly crisp breeze. That’s because the Rochester team—which set out nearly 30 years ago to create significant shareholder value derived from investments in tax-free municipal bonds—has ventured off the well-worn path others follow.
While others lean on macro-economic computer models, we champion the Rochester Way, a research-intensive approach that has us scouring the market for individual municipal bond offerings with an appealing set of credit characteristics and tax advantages. The Rochester team works to identify market inefficiencies and then invests astutely, always seeking to maintain a diverse set of municipal bond portfolios. Our research process gives us the confidence to accumulate bonds with varying maturities, coupons and quality levels—and historically our portfolios have offered attractive levels of tax-free income with mitigated risk.
Professional investment management, as most investors recognize, remains the greatest advantage of mutual fund investing. At Oppenheimer Rochester, we are committed to transforming this advantage into superior outcomes and believe that our research-driven wealth of knowledge and experience makes all the difference.
We realize that investors seeking tax-free income often have an assortment of needs and/or objectives, and our family of 20 muni bond funds has been designed accordingly. Whether an investor prefers high yield, AMT-free, single-state or maturity managed strategies—or some combination thereof—we believe that our funds have what it takes to support each investor’s unique set of financial goals.
Fixed-income investing entails credit and interest rate risks (when interest rates rise, bond/fund prices generally fall). A portion of a municipal bond fund’s distributions may be subject to tax and may increase taxes for investors subject to federal alternative minimum tax; however, income distributions from Rochester’s two AMT-free funds will not increase an investor’s exposure to AMT. Capital gains distributions are taxable as capital gains.