The tax rates and brackets used here are current but subject to change. Calculations factor in the 3.8% tax on unearned income under the Patient Protection and Affordable Care Act, as applicable, and assume that an investor’s highest tax bracket applies to the change in taxable income resulting from a switch between taxable and tax-free investments, that the investor is not subject to the alternative minimum tax and that state tax payments are fully deductible on the investor’s federal tax return. An investor’s actual tax rate may vary depending on the investor’s income, investments and deductions; in particular, state tax laws regarding municipal bond income can vary considerably for taxpayers in states not listed above. All investors are encouraged to consult a tax advisor regarding current tax legislation and how tax laws affect individual financial situations; These calculations are for illustrative purposes only and are not intended to show the specific performance of any fund.
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 Oppenheimer Rochester’s two AMT-free funds will not increase an investor’s exposure to AMT. Capital gains distributions are taxable as capital gains.
Oppenheimer municipal bond funds include below-investment-grade securities (“junk bonds”) that may be more at risk of default and subject to liquidity risk. Funds can maintain a relatively high portion of their portfolio holdings in particular segments of the municipal securities market, such as tobacco bonds or real-estate-related securities, that are prone to above-average price volatility. Oppenheimer Rochester municipal bond funds may invest substantially in U.S. territories, commonwealths and possessions and could be exposed to their local economic and political conditions. State-specific muni bond funds may also invest in a limited number of issues within a single state, which can further increase volatility and exposure to regional developments. Fund holdings are subject to change.