Having trouble finding a Mutual Fund Bond fund? Oppenheimer Rochester High Yield Municipals A (
ORNAX Quick Quote ORNAX - Free Report) is a potential starting point. ORNAX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance. History of Fund/Manager
Invesco is responsible for ORNAX, and the company is based out of Kansas City, MO. Oppenheimer Rochester High Yield Municipals A debuted in October of 1993. Since then, ORNAX has accumulated assets of about $4.72 billion, according to the most recently available information. The fund is currently managed by a team of investment professionals.
Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 7.08%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 8.36%, which places it in the top third during this time-frame.
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. Compared to the category average of 12.47%, the standard deviation of ORNAX over the past three years is 8.52%. Looking at the past 5 years, the fund's standard deviation is 7.52% compared to the category average of 10.41%. This makes the fund less volatile than its peers over the past half-decade.
With a beta of 0.95, this fund is less volatile than a broad market index of fixed income securities. Taking this into account, ORNAX has a positive alpha of 2.27, which measures performance on a risk-adjusted basis.
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, ORNAX has 31.77% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of BBB, and focuses on medium quality securities.
However, it is worth noting that 38 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
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, ORNAX is a load fund. It has an expense ratio of 0.95% compared to the category average of 0.80%. So, ORNAX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Overall, Oppenheimer Rochester High Yield Municipals A ( ORNAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
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www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare ORNAX to its peers as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.