Securities issued in Puerto Rico have historically helped Oppenheimer Rochester deliver high levels of tax-free income to the shareholders in many of our 20 muni bond funds. Our funds hold a large and diverse set of bonds from Puerto Rico, many of which offer very attractive yields and all of which are exempt from federal, state and local income taxes for individual investors.
Much has been written about political, economic and fiscal developments in the Commonwealth of Puerto Rico, and some analysts and journalists have raised questions about the securities issued on island. Credit rating agencies have also weighed in, recently with downgrades. In turn, the market has reacted.
Over the years, however, we have seen the Puerto Rico securities held by our funds deliver highly competitive levels of tax-free income and what we believe to be high value relative to the risk they incur. We hope our shareholders have seen this, too.
As part of our commitment to our shareholders, our team believes in providing frequent updates on news and market developments that may affect our holdings. You may want to bookmark this page, which will feature our latest thinking about Puerto Rico. We know that many different opinions exist and thus encourage investors to consider all the opinions and facts before making any investment decision.
The latest installments in our series “Current News on the Commonwealth of Puerto Rico”
|Beyond the 2016 Headlines, Some Positive News||February 7, 2017|
|Rochester Conference Call Highlights 12/7/16||December 14, 2016|
|Rochester Conference Call Highlights 9/7/16||October 3, 2016|
|Now in Place: A Powerful Federal Oversight Board||September 2, 2016|
|Rochester Conference Call Highlights 7/22/16||July 5, 2016|
|Why We Are Hopeful About PROMESA||July 20, 2016|
|Supreme Court Affirms Prior Recovery Act Rulings||June 14, 2016|
Municipal bonds are subject to default on income and principal payments. Deterioration of the Puerto Rican economy could have an adverse impact on Puerto Rican bonds and the performance of the Rochester municipal funds that hold them. A portion of some funds’ distributions may be taxable and may increase alternative minimum tax (AMT) for investors subject to that tax; distributions from net realized capital gains are taxable as capital gains.