5 Invesco Oppenheimer mutual funds to know

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5 Invesco Oppenheimer mutual funds to know

By Mikki Donaldson
November 2, 2022
6 min read

A mutual fund is an investment vehicle that pools money from multiple shareholders and invests it on their behalf in various securities, such as bonds, stocks, and other assets. This investment strategy offers several advantages, including diversification, professional management, liquidity, transparency, a variety of offerings, and minimal investment requirements. 

By including mutual funds as a part of an investment strategy, individual investors get access to professionally managed portfolios of bonds, equities, and other securities. 

As of 2021, there were 7,481 mutual funds registered in the U.S., with total net assets estimated at about $34 trillion. On the contrary, the total net assets under management of mutual funds in Europe reached $31 trillion in Q3 2021.

Most mutual funds are parts of large investment corporations such as Oppenheimer. This article provides insight into Oppenheimer’s operations and lists five Oppenheimer funds to keep an eye on.

Highlights: 

  • Mutual funds are a great investment option for small or individual investors as they allow them to access professionally managed portfolios of equities, bonds, and other securities.
  • OppenheimerFunds is one of the most prominent mutual funds on the market.
  • OppenheimerFunds was acquired by Invesco in 2019 and now operates under its name.
  • The top Invesco OppenheimerFunds to be aware of are ORSTX, OSCIX, LTNCX, LTNCX, and OPMYX.
  • The 2023 forecasts for OppenheimerFunds are the after-hype price of $46.97 with a return rate of 0.08%.

OppenheimerFunds: Facts and background

OppenheimerFunds was a major asset manager for managing financial services for institutional customers. With over $260 billion as of February 2019, it owned 16 investment management teams controlling stock portfolios, exchange-traded funds, alternative and multi-asset portfolios, and fixed income.

In 2019, OppenheimerFunds was acquired by Invesco, a large American independent investment company, but it continues to operate under its name.

Its clients were primarily wealth managers, financial endowments, institutional investors, financial funds, and corporations.

Although ranked highest in some reports, Oppenheimer funds require a closer look. Before investing in them, investors should carefully consider a fund’s investment objectives, risks, fees, and expenses. 

5 Invesco Oppenheimer mutual funds to know

The list below highlights the top-rated Invesco Oppenheimer funds reviews for long-, mid-, and short-term investors, based on the ratings of leading fund industry researchers.

1. Oppenheimer Rochester Short-Term Municipal Fund Class A (ORSTX)

The Oppenheimer Rochester Short-Term Municipal Fund Class A has:

  • $2.0 billion of assets under management
  • A net asset value (NAV) of $3.72
  • A gross expense ratio (before waivers) of 0.75%
  • A net expense ratio (after waivers) of 0.75%
  • As of April 2023, a YTD return of 1.03%

Municipal funds carry a risk with the climbing global inflation, credit, and default risks when considering the interest of both the institution and their counterparties. The short-term fund desires to retain a padded portfolio with a maturity rate of three years or less.

This investment seeks tax-free income. Under favorable market conditions, the fund plans to invest at least 80% of its assets in securities, the income of which is exempt from regular federal individual and the fund’s state income tax. The fund invests in securities issued by state governments, their political subdivisions, the District of Columbia, territories of the country (USA), or by their agencies and authorities.

Among the top sectors where the fund invests are:

  • Water/sewer (15.03%)
  • Health (14.77%)
  • General obligation (13.94%) 

According to Schwab, the 10-year growth of a hypothetical $10,000 ORSTX investment is $11,631.

2. Oppenheimer International Small-Mid Company Fund Class R6 (OSCIX)

The Oppenheimer International Small-Mid Company Fund Class R6 has:

  • $4.9 billion under management
  • A NAV of $41.43
  • A gross expense ratio (before waivers) of 0.97%
  • A net expense ratio (after waivers) of 0.97%
  • As of April 2023, a YTD return of 9.24% 

This Oppenheimer investment seeks working capital appreciation. Under natural market status, the fund will commit at least 80% of its clear assets, plus capital, which was borrowed for investing, in interest certificates of small-cap and mid-cap companies alike. The (financial) scope of the index is capable of changing at any given moment due to the market’s state.

The Oppenheimer International Small-Mid Company Fund saw a rise of 15% last year. It has returned 13.99% over the last three years, and the fund has produced an annual average rate of return of 9.5% since 2011 and 8.82% since 2006. These numbers (99%) overshadow its challengers in Morningstar’s International Small to Mid-Cap Growth Category. However, it maintains an above-average risk, sharing it with others in the same grouping. 

The fund’s top investment sectors are:

  •  Industrial firms (39.27%)
  • Information technology companies (26.56%)
  • Healthcare organizations (17.13%) 

According to Schwab, the 10-year growth of a hypothetical $10,000 OSCIX investment is $25,330.

3. Oppenheimer Rochester Limited Term New York Municipal Fund Class C (LTNCX)

The Oppenheimer Rochester Limited Term New York Municipal Fund Class C has:

  •  $1.7 billion of assets under management
  • A NAV of $2.76
  • A gross expense ratio (before waivers) of 1.53%
  • A net expense ratio (after waivers) of 1.53%
  • As of April 2023, a YTD return of 1.21%

This investment seeks tax-free income. Under favorable market conditions, the fund invests about 80% of assets (with borrowings for investment purposes included) in securities, the income of which is exempt from federal and state (where the fund is located) income tax. Additionally, the fund invests in New York municipal securities, derivatives, or other economic instruments similar to such securities.

The fund’s top investment sectors are:

  • Miscellaneous revenue (26.11%)
  • Transportation (18.56%)
  • General obligation (12.31%)

According to Schwab, the growth of a hypothetical $10,000 LTNCX investment is $10,596.

4. Oppenheimer Fundamental Alternatives Class Y (QOPYX)

The Oppenheimer Fundamental Alternatives Class Y fund has:

  • $352.5 million of assets under management
  • A, with a NAV of $24.97
  • A gross expense ratio (before waivers) of 1.12%
  • A net expense ratio (after waivers) of 1.11%
  • As of April 2023, a YTD return of 0.97%

This investment seeks a total return of capital and, in 2015, returned -0.7% and 4.5% in the last three years. The value of a specific investment may be impacted by the performance of trade goods, weather, global rivalry, regulations, and economic factors. For these reasons, the fund may invest in securities that may be more volatile, increase market influence, and raise investment risks. 

The fund’s top investment sectors are:

  • Information technology (20.77%)
  • Healthcare (18.43%)
  • Consumer staples (11.91%)

According to Schwab, the 10-year growth of a hypothetical $10,000 QOPYX investment is $12,053.

5. Oppenheimer Main Street Mid-Cap Fund Class Y (OPMYX)

The Oppenheimer Main Street Mid-Cap Fund Class Y has:

  • $2.3 billion in assets under management
  • A NAV of $26.82
  • A gross expense ratio (before waivers) of 0.82%
  • A net expense ratio (after waivers) of 0.82%
  • As of April 2023, a YTD return of 3.52%

This fund investment seeks capital appreciation. Under favorable conditions, the fund invests about 80% of its assets, with any borrowings for investment reasons, including securities, derivatives, and other instruments that have economic characteristics that are similar to such securities.

The fund’s mid-cap blend portfolio typically consists of U.S. stocks of various sizes and types, creating a middle-of-the-road profile. The fund’s top investment sectors are:

  • Industrials (21%)
  • Information technology (14.42%)
  • Consumer discretionary (13.32%)

According to Schwab, the 10-year growth of a hypothetical $10,000 OPMYX investment is $22,879.

OppenheimerFunds 2023 forecasts

According to Macroaxis, in the current year, Invesco OppenheimerFunds is expected to produce the following outcomes:

  • 2023 price. The Oppenheimer Main after-hype prediction price for 2023 is $46.97.
  • Downside and upside margins. The Oppenheimer Main after-hype downside and upside margins are predicted to be $46.05 and $47.89, respectively.
  • 2023 return. The Oppenheimer Main’s expected return for 2023 is forecasted to be at 0.08%.

According to Invesco’s 2023 Investment Outlook, they expect the following mutual funds investing trends:

  • Inflation in the U.S. The inflation in the U.S. is likely to lower towards the target rate of 2% due to the tightening of financial conditions, but it’s still likely to be above the target for some time.
  • Near-term recession. The odds for a near-term recession in Europe and the U.S. are increasing.
  • U.S. dollar decline. Invesco expects the strength of the US dollar to decline when the U.S. Federal Reserve (the Fed) is believed to stop raising rates. This, expectedly, might result in EM assets benefiting.
  • Geopolitical turmoil. The war in Ukraine and Taiwan tensions are still among the top risks for the investment market.

FAQ

OppenheimerFunds was a global asset manager with 13,000,000 investor accounts, $260 billion in assets under management, and 16 investment management teams.

In 2019, OppenheimerFunds was acquired by Invesco, a large American independent investment company, but it continues to operate under its name.

Being a mutual fund, Invesco Oppenheimer manages clients’ investments and aims to bring returns. Professional teams oversee actively managed equity, multi-asset portfolios, fixed income, and exchange-traded funds.

Selecting the best Invesco Oppenheimer fund primarily depends on the individual investor’s expectations and interests. However, the best-known Oppenheimer funds are ORSTX, OSCIX, LTNCX, LTNCX, and OPMYX.

Yes, Oppenheimer can be considered an investment bank.

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