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If investors are looking at the Mutual Fund Bond fund category, make sure to pass over Oppenheimer Senior Floating Rate A (OOSAX - Free Report) . OOSAX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of OOSAX. Oppenheimer Senior Floating Rate A debuted in September of 1999. Since then, OOSAX has accumulated assets of about $1.55 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.47%, and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 6.5%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of OOSAX over the past three years is 3.68% compared to the category average of 12.48%. The fund's standard deviation over the past 5 years is 7.36% compared to the category average of 13.62%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of -0.26, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, OOSAX has a positive alpha of 0.94, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, OOSAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.98%. So, OOSAX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Oppenheimer Senior Floating Rate A ( OOSAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and higher fees, Oppenheimer Senior Floating Rate A ( OOSAX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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Is OOSAX a Strong Bond Fund Right Now?
If investors are looking at the Mutual Fund Bond fund category, make sure to pass over Oppenheimer Senior Floating Rate A (OOSAX - Free Report) . OOSAX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of OOSAX. Oppenheimer Senior Floating Rate A debuted in September of 1999. Since then, OOSAX has accumulated assets of about $1.55 billion, according to the most recently available information. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.47%, and is in the bottom third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 6.5%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of OOSAX over the past three years is 3.68% compared to the category average of 12.48%. The fund's standard deviation over the past 5 years is 7.36% compared to the category average of 13.62%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of -0.26, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, OOSAX has a positive alpha of 0.94, which measures performance on a risk-adjusted basis.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, OOSAX is a load fund. It has an expense ratio of 1.06% compared to the category average of 0.98%. So, OOSAX is actually more expensive than its peers from a cost perspective.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Oppenheimer Senior Floating Rate A ( OOSAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, better downside risk, and higher fees, Oppenheimer Senior Floating Rate A ( OOSAX ) looks like a somewhat weak choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.