OppenheimerFunds Investment Grade Debt Team Celebrates 10 Years of Strong Risk-Adjusted Returns

NEW YORK, April 3, 2019 /PRNewswire/ -- OppenheimerFunds celebrated the 10-year anniversary of its Investment Grade Debt Team. Established in March 2009, the team is led by Chief Investment Officer and Head of Fixed Income Krishna Memani and Co-team leaders Portfolio Manager Peter Strzalkowski and Director of Research Young-Sup Lee. As of March 31, 2019, the team manages over $6.69 billion in primarily investment grade assets and has a proven history of risk-adjusted outperformance with benchmark-like volatility.

Since April 1, 2009, Oppenheimer Total Return Bond Fund (OPBYX), has been managed by Krishna Memani and Peter Strzalkowski, while Oppenheimer Limited Term Bond Fund (OUSYX) and Oppenheimer Limited-Term Government Fund (OLTYX) have been managed solely by Strzalkowski. The funds have outperformed their respective indexes and peer groups with at or near top percentile and decile risk-adjusted return rankings. The funds' Y shares are rated 4, 5, and 5 stars overall by Morningstar, among their respective Intermediate-Term Bond, Short-Term Bond, and Short-Term Government categories, for the 3-, 5- and 10-year period ended February 28, 2019, based on risk adjusted performance.ⁱ

"We can be proud of the Investment Grade Debt Team's outperformance over the past decade, but specifically the fact that this has been achieved with reasonable risk relative to the broader market. Our commitment to risk management in providing a superior investment experience remains paramount at OppenheimerFunds, and I am confident that this is what will enable our clients' success over time," said Memani in a whitepaper reflecting on the success of the team.

The funds share a common focus on generating consistent income and returns, while serving as ballast in an overall investment portfolio by offering diversification to equities in times of volatility. The funds have a track record of preserving value in volatile equity markets. In the 13 periods where the S&P 500 fell 7% or more over the past decade, the funds returned 0.88%, -0.07%, and 0.40% on average, respectively, while the S&P declined -11.01%.ⁱⁱ 

"Managing these funds with a risk-conscious mentality is core to our investment philosophy," said Strzalkowski. "Our focus on investment-grade appropriate sectors, avoidance of higher-risk sectors, and risk-controlled framework have enabled us to outperform our peers and protect the value of our funds."

About OppenheimerFunds  

OppenheimerFunds, Inc., a leader in global asset management, is dedicated to providing solutions for its partners and end investors. OppenheimerFunds, including its subsidiaries, manages more than $230 billion in assets for over 13 million shareholder accounts, including sub-accounts, as of March 29, 2019. 

Founded in 1959, OppenheimerFunds is an asset manager with a history of providing innovative strategies to its investors. The firm's 16 investment management teams specialize in equity, fixed income, alternative, multi-asset, and factor and revenue-weighted-ETF strategies, including ESG. The firm is a signatory of the UN PRI. OppenheimerFunds and its subsidiaries offer a broad array of products and services to clients, who range from pensions and endowments to financial advisors and individual investors. OppenheimerFunds and certain of its subsidiaries provide advisory services to the Oppenheimer family of funds, and OFI Global Asset Management offers solutions to institutions. The firm is also active through its Philanthropy & Community initiative: 10,000 Kids by 2020, reaching children with introductions to math literacy programs.  

Web: oppenheimerfunds.com 
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The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance and expense ratios may be lower or higher than the data quoted. For performance data current to the most recent month-end, visit oppenheimerfunds.com or call 1.800.CALL OPP (225.5677). Fund returns include changes in net asset value with dividends and capital gains reinvested. Class A returns include changes in share price and reinvested distributions, and a 2.25% maximum applicable sales charge (Limited-Term Bond Fund and Limited-Term Government Fund) and a 4.75% maximum applicable sales charge (Total Return Bond Fund) where indicated. Class Y shares are not subject to sales charge. Returns do not consider capital gains or income taxes on an individual's investment. Generally, Y shares are only available to certain investors, including those in wrapfee based programs or commissionable brokerage platforms that charge sales commission. See prospectus for details.

* The net expense ratio takes into account contractual fee waivers and/or expense reimbursements without which performance would have been less. These undertakings may not be amended or withdrawn for one year from the date of the current prospectus, unless approved by the Board.

Special Risks: Fixed income investing entails credit and interest rate risks. Interest rate risk is the risk that rising interest rates or an expectation of rising interest rates in the near future, will cause the values of the Fund's investments to decline. Risks associated with rising interest rates are heightened given that rates in the U.S. are at or near historic lows. When interest rates rise, bond prices generally fall, and the Fund's share prices can fall. Mortgage-backed securities are subject to prepayment risk. Derivative instruments entail higher volatility and risk of loss compared to traditional stock or bond investments. Total Return Bond Fund: Asset-backed securities are subject to prepayment risk. Below-investment-grade ("high yield" or "junk") bonds are more at risk of default and are subject to liquidity risk. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. Limited-Term Bond Fund: Asset-backed securities are subject to prepayment risk. Below-investment-grade ("high yield" or "junk") bonds are more at risk of default and are subject to liquidity risk. Mortgage bonds are susceptible to risks such as default and prepayment of principal and are taxable at the state and federal levels. U.S. Government securities are backed by the full faith and credit of the U.S. Government, meaning that payment of interest and principal is guaranteed, but yield and market value are not. Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. Limited-Term Government Fund: U.S. Government securities are backed by the full faith and credit of the U.S. Government, meaning, that payment of interest and principal is guaranteed, but yield and market value are not. May invest up to 20% in non-U.S. Government securities, which carry greater credit risk. Diversification does not guarantee profit or protect against loss.

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing. 

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.

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ⁱ The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. 

Oppenheimer Total Return Bond Fund was rated against the following number of Intermediate-Term Bond funds over the following time periods: the fund was rated 3 stars among 879 funds in the last three years, 4 stars among 767 in the last five years, and 5 stars among 564 in the last ten years. Morningstar Rating is for the Y share class only; other classes may have different performance characteristics. Ratings do not consider sales charges and are subject to change monthly.  

Oppenheimer Limited-Term Bond Fund was rated against the following number of Short-Term Bond funds over the following time periods: the fund was rated 4 stars among 476 funds in the last three years, 4 stars among 415 in the last five years, and 5 stars among 265 in the last ten years. Morningstar Rating is for the Y share class only; other classes may have different performance characteristics. Ratings do not consider sales charges and are subject to change monthly.  

Oppenheimer Limited-Term Government Fund was rated against the following number Short Government funds over the following time periods: the fund was rated 4 stars among 102 funds in the last three years, 4 stars among 98 in the last five years, and 5 stars among 71 in the last ten years. Morningstar Rating is for the Y share class only; other classes may have different performance characteristics. Ratings do not consider sales charges and are subject to change monthly.  

ⁱⁱ Morningstar, 3/31/09 – 3/31/2019

SOURCE OppenheimerFunds

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