Sports teams become champions by scoring more points than they give up. Oppenheimer Capital Income Fund aspires to do the same for investors who want to limit their portfolio’s downside risk without sacrificing its upside potential.
By carefully blending a variety of strategies and asset classes, Oppenheimer Capital Income Fund has the potential to deliver high risk-adjusted returns. The equity strategy targets companies whose earnings power may improve as a result of a change in long-term trends, while the fixed income portion seeks competitive returns with low-to-moderate volatility by targeting high quality corporate, mortgage and government fixed income securities. The opportunistic strategy targets investments in asset classes with different types of returns that can help diversify the portfolio.
Over the past five years, these strategies have helped the portfolio capture most of the market’s upside movements, while limiting downside movements to a greater extent than its Morningstar category average.
1. Source: Morningstar Direct. Morningstar Conservative Allocation Category is shown for illustrative purposes only and does not predict or depict the performance of the Fund. Up-Market Capture Ratio is a measure of a manager’s performance in up markets relative to an index. Down-Market Capture Ratio is the direct opposite of the up-market capture ratio, gauging performance of the Fund relative to the index in down markets.
2. Performance data quoted shows specific periods when the S&P 500 has been down relative to Oppenheimer Capital Income Fund and the Morningstar Conservative Allocation Average.
3. Max Drawdown: A percentage of the peak-to-trough decline during a specific record period of an investment, fund or commodity. Sharpe Ratio: A measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.
4. The S&P 500 Index is a free-float capitalization-weighted index of the prices of 500 large-cap common stocks actively traded in the United States.
5. The Barclays U.S. Aggregate Bond Index is an index of U.S. dollar-denominated investment-grade U.S. corporate government and mortgage-backed securities.
Indices are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund.
Oppenheimer Capital Income Fund: 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. May invest up to 40% in below-investment-grade (“high yield” or “junk”) bonds, which 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 whose values depend on the performance of an underlying security, asset, interest rate, index or currency, entail potentially higher volatility and risk of loss compared to traditional stock or bond investments. Convertible bonds are subject to the additional risk that the market value of the equity or other securities into which they are convertible will never be sufficient to justify conversion, rendering the conversion value of the bonds worthless. 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 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 is subject to the laws of the Cayman Islands and involves the risk that changes to those laws could negatively affect the Fund. Diversification does not guarantee profit or protect against loss.
Mutual funds are subject to market risk and volatility. Shares may gain or lose value.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict performance of any investment. These views are subject to change based on subsequent developments.