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Muni - Bonds fund seekers may want to consider taking a look at Oppenheimer Rochester High Yield Municipals A (ORNAX - Free Report) . ORNAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes ORNAX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ORNAX. The Oppenheimer Rochester High Yield Municipals A made its debut in October of 1993 and ORNAX has managed to accumulate roughly $4.35 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.02%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.49%, which places it in the middle 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. Over the past three years, ORNAX's standard deviation comes in at 11.13%, compared to the category average of 12.93%. The fund's standard deviation over the past 5 years is 10.75% compared to the category average of 13.54%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.13, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, ORNAX has a positive alpha of 2.01, which measures performance on a risk-adjusted basis.
Ratings
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 31.8% 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 42 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, ORNAX is a load fund. It has an expense ratio of 1.44% compared to the category average of 0.93%. From a cost perspective, ORNAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Oppenheimer Rochester High Yield Municipals A ( ORNAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.
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Is ORNAX a Strong Bond Fund Right Now?
Muni - Bonds fund seekers may want to consider taking a look at Oppenheimer Rochester High Yield Municipals A (ORNAX - Free Report) . ORNAX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on various forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes ORNAX as Muni - Bonds, which is a segment packed with options. Muni - Bonds funds invest in debt securities issued by states or local municipalities. These are generally used to finance construction of infrastructure, pay for schools, or other government functions. Some are backed by taxes (revenue bonds), while others are " general obligation " and may not be backed by a defined source. Investors usually appreciate the tax benefits that come with many municipal bonds, which are especially impressive for those in high tax brackets.
History of Fund/Manager
Invesco is based in Kansas City, MO, and is the manager of ORNAX. The Oppenheimer Rochester High Yield Municipals A made its debut in October of 1993 and ORNAX has managed to accumulate roughly $4.35 billion in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.02%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of -0.49%, which places it in the middle 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. Over the past three years, ORNAX's standard deviation comes in at 11.13%, compared to the category average of 12.93%. The fund's standard deviation over the past 5 years is 10.75% compared to the category average of 13.54%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.13, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, ORNAX has a positive alpha of 2.01, which measures performance on a risk-adjusted basis.
Ratings
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 31.8% 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 42 % of the bonds in this fund are not ranked, so take the average quality level with a bit of caution.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, ORNAX is a load fund. It has an expense ratio of 1.44% compared to the category average of 0.93%. From a cost perspective, ORNAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Oppenheimer Rochester High Yield Municipals A ( ORNAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.
Your research on the Muni - Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer 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.