Are You Thinking About Munis?
Have you defined your needs and objectives? At Oppenheimer Rochester, our fund managers are keenly aware that the population of retail and institutional investors seeking tax-free income has varied financial needs and objectives. When high-net-worth investors and millennials consider municipal bonds and municipal bond funds, we believe they may be choosing the asset class for different reasons.
While tax exemption may be the main selling point for high-net-worth investors, among others, younger investors may be motivated by the role that municipals play in community-building.
In certain interest rate cycles, the nominal yield on municipal paper has even been a draw for foreign investors, who do not qualify for the favorable tax treatment available to U.S. taxpayers who invest.
Are You Looking To The Long Term?
We believe investors benefit when they have a clear understanding of which investment categories and products match their long-term goals and their personal tolerance for risk. A knowledgeable financial advisor can sort through the seemingly endless array of investment choices and, for a fee, help you create and implement a comprehensive and sound financial plan. If your advisor recommends municipal bond fund investments, he or she can help you select Oppenheimer Rochester municipal funds. The key is to select funds with objectives that are well aligned with your own.
Are You Investing With Proven Teams?
We bring years of experience to the process of building and shaping the portfolios of the 20 Oppenheimer Rochester municipal bond funds that we manage. Our team traces its roots to the 1983 establishment of The Rochester Funds, a professional money management firm that offered a handful of independent mutual funds. In 1996, OppenheimerFunds, which managed several municipal bond funds itself, acquired the Rochester, New York-based firm.
Now as then, our team believes that investors are more likely to reach their goals for tax-free income from well-designed and carefully researched fixed income products. Today’s muni investors, we note, continue to seek the competitive levels of tax-free income that our value-oriented, research-intensive and security-specific strategies have historically been able to deliver.
We Employ A Proven Approach
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 30 years ago to create significant shareholder value – 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 for scouring the market and searching for individual bond offerings with an appealing set of credit characteristics.
The Rochester team works to identify market inefficiencies and then invests thoughtfully, 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 our portfolios have always been designed to offer attractive 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 solid outcomes and believe that our experience and our research-driven wealth of knowledge make 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 maturity managed, AMT-free, single-state or high yield 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.