an investor s guide to oppenheimerfunds

Transcription

1 an investor s guide to oppenheimerfunds

2 The needs haven t changed. The solutions have to. Today more than ever, investors need different ways to achieve growth, income and protection* against certain risks. Because there are opportunities and risks that didn t exist a few years ago. At OppenheimerFunds we re always exploring new ways to help achieve these goals for investors, financial advisors and institutions. Talk to your advisor about these new possibilities, and the right way to invest in a changing world. * Protection is positioned as an investment goal. Investing in certain securities may help to hedge against certain risks, but does not imply any guarantee from loss. Mutual funds are subject to market risk and volatility. Shares may gain or lose value. 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 CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing OppenheimerFunds Distributor, Inc.

3 CATEGORY PAGE FUND Global 2 Global Equity 2 Global Opportunities 2 Global Value 2 International Diversified 3 International Growth 3 International Small Company 3 International Value Growth 3 Capital Appreciation 4 Rising Dividends 4 Discovery Growth 1 Value 4 Dividend Opportunity 2 4 Equity Income 5 Small- & Mid- Cap Value 5 Value Core 5 Main Street Global Debt Domestic Debt 5 Main Street Select 6 Main Street 3 6 Main Street Small- & Mid-Cap 6 Equity 7 Emerging Markets Local Debt 4 7 Global Strategic Income 7 International Bond 7 Core Bond 8 Corporate Bond 8 Global High Yield 5 8 Limited-Term Government 8 Senior Floating Rate 8 Senior Floating Rate Plus 6 9 Limited-Term Bond 7 1. Prior to 6/28/13, the Fund was named Oppenheimer Small- & Mid-Cap Growth Fund. 2. Prior to 12/11/13, the Fund was named Oppenheimer Select Value Fund. 3. This is a new Fund with limited operating history and an inception date of 5/17/ Prior to 2/4/14, the Fund was named Oppenheimer Emerging Markets Debt Fund. 5. This is a new Fund with limited operating history and an inception date of 11/8/ This is a new Fund with limited operating history and an inception date of 8/23/ Prior to 8/1/13, the Fund was named Oppenheimer U.S. Government Trust. 8. Prior to 11/27/13, the Fund was named Oppenheimer Rochester National Municipals. 9. Available to investors in certain states only. 10. Prior to 11/27/13, the Fund was named Oppenheimer California Municipal Fund. 11. Prior to 11/27/13, the Fund was named Oppenheimer New Jersey Municipal Fund. 12. Prior to 11/27/13, the Fund was named Oppenheimer Pennsylvania Municipal Fund. 13. Prior to 11/27/13, the Fund was named Oppenheimer AMT-Free Municipals. 14. Prior to 3/28/13, the Fund s name was Oppenheimer Limited Term New York Municipal Fund. 15. Prior to 11/27/13, the Fund was named Oppenheimer Limited Term California Municipal Fund. 16. A special minimum initial investment may apply. 17. The Fund s Sub-Sub-Adviser is Cornerstone Real Estate Advisers, LLC. The portfolio managers are employed by the Sub-Sub-Adviser. 18. This is a new Fund with a limited operating history and an inception date of 3/20/13. 1 CATEGORY PAGE FUND Municipal 9 Rochester High Yield Municipal 8 Bond 9 Rochester Arizona Municipal 9 Rochester California Municipal 9,10 9 Rochester Fund Municipals 10 Rochester Maryland Municipal 10 Rochester Massachusetts Municipal 10 Rochester Michigan Municipal 10 Rochester Minnesota Municipal 10 Rochester New Jersey Municipal 9,11 10 Rochester North Carolina Municipal 10 Rochester Ohio Municipal 10 Rochester Pennsylvania Municipal 9,12 10 Rochester Virginia Municipal 10 Rochester AMT-Free Municipal Rochester AMT-Free New York Municipal 9 11 Rochester Limited Term Municipal 11 Rochester Limited Term New York Municipal Rochester Limited Term California Municipal 9,15 11 Rochester Intermediate Term Municipal 11 Rochester Short Term Municipal Multi Asset 12 Capital Income 12 Global Allocation 13 Portfolio Series: Conservative Investor 13 Portfolio Series: Moderate Investor 13 Portfolio Series: Active Allocation 13 Portfolio Series: Equity Investor Alternative 14 Commodity Strategy Total Return 14 Currency Opportunities Flexible Strategies 14 Diversified Alternatives 15 Global Multi Strategies 15 Global Real Estate 17,18 15 Gold & Special Minerals 15 Real Estate SteelPath MLP Alpha 16 SteelPath MLP Alpha Plus 16 SteelPath MLP Income 16 SteelPath MLP Select 40

4 GLOBAL EQUITY 1 The Global Equity and Emerging Markets teams focus on several power ful themes that continue to fuel earnings growth around the world. The themes are called MANTRA Mass Affluence, New Technology, Restructuring and Aging. The teams invest across a broad spectrum of world markets, taking full advantage of the considerable flexibility contained within its global mandate. The team takes a comprehensive approach, seeking out underlying earnings growth against the backdrop of a truly seamless global portfolio. Oppenheimer Global Fund Equity Style Seeks solid growth potential from U.S. and foreign stocks OPPAX The Fund focuses on high quality companies with sustainable growth and competitive advantages that position them to benefit from long-term demographic and economic themes. These stocks must also be trading at attractive valuations. Oppenheimer Global Opportunities Fund Equity Style Seeks growth opportunistically in the U.S. and abroad OPGIX The Fund has a flexible, multi-cap mandate and focuses on small- to mid-cap companies using a theme-based approach to identify revolutionary ideas. The Fund invests in companies operating in industries with high barriers to entry and that have sustainable strong earnings growth prospects and unique competitive advantages. The Fund s barbell approach is designed to increase stability and balances offensive stocks, those with high return potential, with defensive stocks, blue chip companies that typically pay high dividend yields. 2 Oppenheimer Global Value Fund Equity Style The Fund invests in a mix of U.S. and foreign value stocks across market capitalizations positioned for capital appreciation potential GLVAX The portfolio manager s investment philosophy is based on trying to buy the present at a discount and get the future for free. The portfolio manager places a strong emphasis on price, purchasing companies he believes have a large gap between their stock prices and the value of their businesses. He does not base a stock s price on any great future outcome; rather, he buys today s conditions at an attractive price, paying little to nothing for the future. First, the portfolio manager looks for structural changes in the world, and where and to whom the economic benefits will flow. Then he looks for quality businesses with durable advantages. Oppenheimer International Diversified Fund Equity Style Seeks solid growth potential from foreign stocks OIDAX The Fund is designed to provide efficient access to a broad international equity strategy. As a one ticket option to a well-diversified international equity portfolio, the Fund offers an easier way to participate in the international markets across investment styles and company size. 1. Investing in foreign securities may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing market investments may be especially volatile. Due to the recent global economic crisis that caused financial difficulties for many European Union countries, Eurozone investments may be subject to volatility and liquidity issues. Investing in securities of smaller cap or mid-cap companies may be especially volatile. Diversification does not guarantee profit or protect against loss. OppenheimerFunds Equity style box is based on the portfolio s overall targeted capitalization range and relative valuation as determined by OFI.

5 Oppenheimer International Growth Fund Equity Style Seeks growth from a mix of foreign stocks for strong return potential OIGAX Many of the world s best-known brands, innovative products and technology come out of foreign markets. The portfolio manager looks for such high quality companies outside of the U.S. that can take advantage of major global structural changes to grow sales and earnings. Oppenheimer International Small Company Fund Equity Style Seeks strong growth potential from smaller company foreign stocks OSMAX The Fund provides exposure to foreign small, well-run businesses that appear positioned to generate substantial and sustainable earnings growth. Oppenheimer International Value Fund Equity Style Stocks of larger, well-established foreign businesses that the portfolio manager believes are trading at a discount to their potential earnings growth QIVAX The Fund is designed to seek outstanding investment opportunities in a variety of overseas markets. The portfolio manager focuses research on identifying quality foreign stocks, based on potential earnings relative to price. Growth The Growth team s philosophy focuses on high quality growth companies with sustainable earnings, proven management teams and attractive valuations to help balance long-term growth potential with downside protection. The team seeks to manage risk by combining high quality growth companies with sound portfolio construction. They take a long-term view and maintain well-diversified portfolios across sectors, industries and securities. Diversification does not guarantee profit or protect against loss. Investments in securities of growth and smallcap companies may be volatile. Oppenheimer Capital Appreciation Fund Equity Style OPTFX The Fund invests primarily in large-cap growth stocks with above-average earnings growth potential and attractive valuations The portfolio manager s disciplined investment process, which combines top-down sector analysis and bottomup fundamental research, is designed to provide a well-diversified portfolio of high quality growth stocks. OppenheimerFunds Equity style box is based on the portfolio s overall targeted capitalization range and relative valuation as determined by OFI. 3

6 Growth (continued) Oppenheimer Rising Dividends Fund Equity Style The Fund invests primarily in larger company stocks that are currently paying dividends and are expected to grow their dividends over time OARDX The Fund seeks to invest in high quality, dividend-paying and growing companies with solid financials and reasonable valuations in order to pursue a growing income stream, price appreciation and a degree of downside protection. Value The Value team utilizes in-depth fundamental research to uncover companies that they believe are undervalued relative to their longterm potential. Value investing involves the risk that the market may not recognize that the securities are under valued and they may not appreciate as anticipated. Oppenheimer Discovery Growth Fund 1 Equity Style OEGAX The Fund invests primarily in mid-cap growth stocks with high return potential The Fund s in-depth, bottom-up stock selection process is designed to exploit inefficiencies inherent in the mid-cap market. The portfolio manager seeks dynamic companies that have the potential for above-average and sustainable revenue and earnings growth, and are poised to outperform. Oppenheimer Dividend Opportunity Fund 2 Equity Style OSVAX The Fund typically invests in dividend-paying value stocks The portfolio manager seeks to identify undervalued dividend-paying companies with a focus on changes to return on invested capital (ROIC). The team employs a fundamental research process that incorporates bottom-up, company-specific research and industry-level analysis to seek a potential improvement in ROIC not yet anticipated by the market. Oppenheimer Equity Income Fund Equity Style The Fund invests primarily in dividend-paying large company stocks, with the potential for appreciation and income OAEIX Aiming for growth of principal and a stream of income for shareholders, the portfolio is built seeking stocks of companies with the best combination of long-term earnings power prospects and income-generating potential. 1. Prior to 6/28/13, the Fund was named Oppenheimer Small- & Mid-Cap Growth Fund. 2. Prior to 12/11/13, the Fund was named Oppenheimer Select Value Fund. OppenheimerFunds Equity style box is based on the portfolio s overall targeted capitalization range and relative valuation as determined by OFI. 4

7 Oppenheimer Small- & Mid- Cap Value Fund 3 Equity Style The Fund typically invests in smalland mid-sized U.S. value stocks QVSCX The portfolio managers seek to identify undervalued companies with a focus on changes to return on invested capital (ROIC). The team employs a fundamental research process that incorporates bottom-up, company-specific research and industry-level analysis to seek a potential improvement in ROIC not yet anticipated by the market. Core The Core category consists of the three Main Street Funds and Oppenheimer Equity Fund. MAIN STREET FUNDS The Main Street team combines fundamental research and quantitative models to identify competitively advantaged companies with strong value creation potential and a compelling risk/reward profile. Oppenheimer Value Fund Equity Style The Fund typically invests in large company U.S. value stocks CGRWX The portfolio manager seeks to identify undervalued companies with a focus on changes to return on invested capital (ROIC). The team employs a fundamental research process that incorporates bottom-up, company-specific research and industry-level analysis to seek a potential improvement in ROIC not yet anticipated by the market. Oppenheimer Main Street Fund Equity Style MSIGX The Fund invests in larger company stocks for capital appreciation potential The Fund is an actively managed, largecap core portfolio that leverages both fundamental and quantitative research. The Fund is designed to be a core holding in a fully diversified portfolio and seeks to outperform the S&P 500 Index over a full market cycle. Oppenheimer Main Street Select Fund Equity Style The Fund invests in a concentrated mix of larger company stocks for capital appreciation potential OMSOX The Fund is a concentrated portfolio of large-cap companies operating across various sectors. The Fund leverages both fundamental and quantitative research to construct a portfolio of roughly 35 holdings, representing the Main Street team s highest conviction investment ideas. 3. Small and mid-sized company stock is typically more volatile than that of larger, more established businesses, as these stocks tend to be more sensitive to changes in earnings expectations. It may take a substantial period of time to realize a gain on an investment in a small or mid-sized company, if any gain is realized at all. OppenheimerFunds Equity style box is based on the portfolio s overall targeted capitalization range and relative valuation as determined by OFI. 5

8 Core (continued) Oppenheimer Main Street Fund Equity Style OSCAX The Fund invests in a mix of smallcapitalization stocks for capital appreciation potential The Fund leverages both quantitative and fundamental research to help identify attractive opportunities in the small-cap space. The Fund is designed to complement a large-cap portfolio by providing exposure to small-cap companies which tend to provide greater long-term growth potential. A blend of growth and value Oppenheimer Equity Fund Equity Style The Fund invests primarily in largecap growth and value companies with above-average earnings potential and attractive valuations OEQAX The Fund is designed to provide strong stock ideas from our Growth and Value investment teams, all in one portfolio. By diversifying investments into stocks, the portfolio managers seek to provide strong growth potential without exposure to undue risk. Oppenheimer Main Street Small- & Mid-Cap Fund Equity Style OPMSX The Fund invests in a mix of smalland mid-capitalization stocks for capital appreciation potential The Fund leverages both quantitative and fundamental research to help identify attractive opportunities in the small- and mid-cap space. The Fund is designed to complement a large-cap portfolio by providing exposure to small- and mid-cap companies which tend to provide greater long-term growth potential. OppenheimerFunds Equity style box is based on the portfolio s overall targeted capitalization range and relative valuation as determined by OFI. 6

9 Global Debt 1 The Global Debt team seeks to generate competitive returns by actively managing global currency, credit and interest rate risk. Oppenheimer Emerging Markets Local Debt Fund 2 The Fund seeks to generate total return by typically investing in local emerging market fixed income securities The Fund provides exposure to emerging market fixed income securities denominated in local currencies, while actively managing foreign currency risks. The Fund may invest in securities issued by governments or corporations. Historically, such instruments performance has been only weakly correlated to that of U.S. stocks or bonds over the long term. As a result, adding an allocation of local emerging markets debt to a broader investment portfolio may potentially help improve total returns, defined as income plus price appreciation, while lowering overall volatility. OEMAX Oppenheimer International Bond Fund Invests in a diversified selection of bonds issued in developed and emerging markets. Unlike many similar funds, the Fund further diversifies its holdings through exposure to a wide variety of currencies. This allows the Fund to potentially take advantage of shifting foreign exchange rates while attempting to lessen the impact of volatility in any one currency, including the U.S. dollar Historically, the performance of international bonds has tended not to move in tandem with that of U.S. stocks or bonds over the long term. As a result, adding an allocation of foreign bonds to a broader investment portfolio has the potential to improve returns while lowering overall volatility. OIBAX Domestic Debt 1 The Domestic Debt team seeks to generate competitive returns while reducing overall volatility through actively investing across the U.S. corporate and government markets. Oppenheimer Global Strategic Income Fund By strategically investing in a mix of sectors, the Fund seeks to generate high current income with reduced volatility. The Fund is also opportunistic in its approach, searching for income in an effort to further diversify the Fund Individual fixed income sectors tend to offer very distinct risk and reward characteristics, and often perform differently from one another as markets rise and fall. The Fund attempts to take advantage of these differences by investing in a carefully selected, dynamic combination of sectors. OPSIX Oppenheimer Core Bond Fund The Fund is designed to serve as the fixed income foundation of a portfolio by providing exposure to a dynamic mix of primarily domestic investment-grade fixed income securities. A broad mix of high quality domestic fixed income securities may help smooth volatility in a stockheavy portfolio, while potentially generating steady investment income Individual sectors of the U.S. bond market tend to offer very distinct risk and reward characteristics, and often perform differently from one another as markets rise and fall. The Fund attempts to capitalize on these differences by diversifying across a mix of fixed income sectors, including U.S. Treasury and agency debt securities, investment-grade corporate debt securities, and mortgage-backed, asset-backed and commercial mortgage-backed securities, among others. OPIGX 1. Fixed income investing entails credit risk and interest rate risk. When interest rates rise, bond prices generally fall and the funds share prices can fall. Below-investment-grade ( high yield or junk ) bonds are more at risk of default and are subject to liquidity risk. Diversification does not guarantee profit or protect against loss. These funds may also invest in derivative instruments, investments whose values depend on the performance of an underlying security, asset, interest rate, index or currency, and entail potentially higher volatility and risk of loss compared to traditional stock or bond investments. Mortgage-backed and asset-backed securities are subject to prepayment risk. Senior loans are typically lower rated (more at risk of default) and may be illiquid investments (which may not have a ready market). Investing in foreign securities entails special risks (such as currency fluctuations and political uncertainties) and may have higher expenses and volatility. Emerging and developing market investments may be especially volatile. 2. Prior to 2/4/14, the Fund was named Oppenheimer Emerging Markets Debt Fund. 7

10 Domestic Debt (continued) Oppenheimer Corporate Bond Fund The Fund is designed to serve as an integral part of a fixed income portfolio by generating potentially strong total returns through exposure to the investment-grade corporate debt of companies in a wide variety of industries. A highly experienced management team oversees the Fund using a rigorous investment process Investing in investment-grade corporate bonds may help boost the overall returns of an investor s portfolio by offering potentially higher yields than other investment-grade fixed income securities without as much risk of default as lower quality bonds. Historically, corporate bonds have provided competitive returns with far less volatility than stocks. OFIAX Oppenheimer Global High Yield Fund 1 The Fund seeks total return by providing investors with high income potential consistent with primarily investing in high yield bonds. In expanding the traditional U.S. high yield opportunity set to also include lower rated foreign bonds, the Fund seeks to identify the most attractive high yield bonds globally which may provide additional opportunities to generate total returns as well as help to diversify a broader portfolio. High yield bonds have historically provided higher income potential relative to investment-grade bonds as well as solid total returns when compared to equities with lower volatility. OGYAX Oppenheimer Limited-Term Government Fund The Fund seeks to generate attractive income levels while minimizing exposure to both credit risk and interest rate risk. To achieve these goals, the Fund invests primarily in securities that are backed by the U.S. Government or its agencies and additionally employs a strategic mix of securities that aims to capture attractive yields while reducing the port folio s overall duration Short-term bonds issued by the U.S. Government and its agencies tend to be conservative fixed income investments, offering potentially lower risks but also relatively low yields. The Fund seeks to combine the conservative profile of short-term government bonds with more competitive yields without taking on undue risks. OSFAX OPGVX 1. This is a new Fund with a limited operating history and an inception date of 11/8/13. May invest up to 80% in belowinvestment-grade ( high yield or junk ) bonds, which are more at risk of default and are subject to liquidity risk. 8 Oppenheimer Senior Floating Rate Fund The Fund primarily invests in senior loans which are lower rated (below investment grade) securities. The interest payments of senior loans adjust periodically based on changes in short-term interest rates. This feature may not only help the Fund generate increasing levels of income when such rates rise, but also translates into low interest rate risk, which may prove beneficial when longer term treasury rates rise. The senior loans in which the Fund invests hold a senior position in the borrowers capital structures and are typically secured by collateral. As a result, they tend to have relatively high recovery rates in the event of a default Senior loans may offer diversification benefits, since they tend not to move in lockstep with most other common asset classes. Exposure to such loans may reduce volatility in a broad portfolio, while potentially improving overall performance. Of course, diversification does not guarantee a profit or protect against loss. OOSAX Oppenheimer Senior Floating Rate Plus Fund The Fund primarily invests in senior loans which are lower rated (below investment grade) securities and has the flexibility to include high yield bonds and actively employ leverage. The interest payments of senior loans adjust periodically based on changes in short-term interest rates. This feature may not only help the Fund generate increasing levels of income when such rates rise, but also translates into low interest rate risk, which may prove beneficial when longer term treasury rates rise. The senior loans in which the Fund invests hold a senior position in the borrowers capital structures and are typically secured by collateral. As a result, they tend to have relatively high recovery rates in the event of a default Senior loans may offer diversification benefits, since they tend not to move in lockstep with most other common asset classes. Exposure to such loans may reduce volatility in a broad portfolio, while potentially improving overall performance. Of course, diversi fication does not guarantee a profit or protect against loss.

11 Oppenheimer Limited-Term Bond Fund The Fund is designed to offer exposure to a dynamic mix of primarily domestic investmentgrade fixed income securities, while minimizing exposure to interest rate risk. The Fund s strategic mix of high quality domestic fixed income securities aims to generate steady investment income, while reducing the portfolio s overall duration. This approach may help smooth volatility in a stock heavy portfolio Individual sectors of the U.S. bond market tend to offer very distinct risk and reward characteristics, and often perform differently from one another as markets rise and fall. The Fund attempts to capitalize on these differences by diversifying across a mix of fixed income sectors, including U.S. Treasury and agency debt securities, investment-grade corporate debt securities, and mortgage-backed, asset-backed and commercial mortgage-backed securities, among others. OUSGX Municipal Bond Using a disciplined approach that seeks to maximize tax-free income, the Rochester-based municipal bond fund team focuses on providing competitive yields from diverse portfolios of carefully assessed muni bonds. It s what we call the Rochester Way. 2 Of our 20 funds, five are available to investors nationwide and 15 are designed for investors in specific states. Further, each of our 20 funds belongs to a specific category: AMT-Free, High Yield, Maturity Managed or State-Specific. Our Maturity Managed category includes three limited-term municipal bond funds and our new short- and intermediate-term funds; these five funds have a very strong focus on investmentgrade securities and often invest in shorter term bonds, which have typically exhibited less volatility than longer term bond funds. With the exception of our high yield fund (Oppenheimer Rochester High Yield Municipal Fund), all funds have prospectus limitations as to the portion of assets that can be held in below-investment-grade securities. For example, our Maturity Managed funds may invest up to 5% of assets in below-investmentgrade securities; in AMT-Free and long maturity State-Specific funds, that figure rises to 25% of assets. This variation is designed to meet the diverse needs of investors seeking tax-free income. Below-investment-grade bonds may provide attractive levels of tax-free income, but may also face greater default and liquidity risks. Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall and the funds share prices can fall. Oppenheimer Rochester High Yield Municipal Fund 3 Higher yielding municipal bond securities that seek income exempt from federal personal income taxes ORNAX Oppenheimer Rochester Arizona Municipal Fund that seek income exempt from federal and Arizona personal income taxes ORAZX Oppenheimer Rochester California Municipal Fund 4 that seek income exempt from federal and California personal income taxes OPCAX Oppenheimer Rochester Fund Municipals that seek income exempt from federal, New York State and New York City personal income taxes RMUNX 2. A portion of these Funds distributions may be subject to tax and, with the exception of Oppenheimer AMT- Free Municipals and Oppenheimer Rochester AMT-Free New York Municipal Fund, may increase taxes for investors subject to the alternative minimum tax (AMT). Capital gains distributions are taxable as capital gains. Tax treatment of Fund distributions and capital gains vary by state. Investors should consult a tax advisor to determine whether a specific Fund is appropriate for them. May invest substantially in Puerto Rico and other U.S. territories, commonwealths and possessions, and could be exposed to their local political and economic conditions. 3. Prior to 11/27/13, the Fund was named Oppenheimer Rochester National Municipals. 4. Prior to 11/27/13 the Fund was named Oppenheimer California Municipal Fund. 9

12 Municipal Bond (continued) Oppenheimer Rochester Maryland Municipal Fund that seek income exempt from federal, Maryland and, where applicable, local personal income taxes ORMDX Oppenheimer Rochester Massachusetts Municipal Fund that seek income exempt from federal and Massachusetts personal income taxes ORMAX Oppenheimer Rochester North Carolina Municipal Fund that seek income exempt from federal and North Carolina personal income taxes OPNCX Oppenheimer Rochester Ohio Municipal Fund that seek income exempt from federal, Ohio and, where applicable, local personal income taxes OROHX Oppenheimer Rochester Michigan Municipal Fund Primarily investment-grade municipal securities that seek income exempt from federal, Michigan and, where applicable, local personal income taxes ORMIX Oppenheimer Rochester Pennsylvania Municipal Fund 2 that seek income exempt from federal, Pennsylvania and, where applicable, local personal income taxes OPATX Oppenheimer Rochester Minnesota Municipal Fund that seek income exempt from federal and Minnesota personal income taxes OPAMX Oppenheimer Rochester Virginia Municipal Fund that seek income exempt from federal and Virginia personal income taxes ORVAX Oppenheimer Rochester New Jersey Municipal Fund 1 that seek income exempt from federal and New Jersey personal income taxes ONJAX Oppenheimer Rochester AMT-Free Municipal Fund 3 that seek income exempt from federal personal income tax and from the federal alternative minimum tax (AMT) OPTAX 1. Prior to 11/27/13, the Fund was named Oppenheimer New Jersey Municipal Fund. 2. Prior to 11/27/13, the Fund was named Oppenheimer Pennsylvania Municipal Fund. 3. Prior to 11/27/13, the Fund s name was Oppenheimer AMT-Free Municipals. 10

13 Oppenheimer Rochester AMT-Free New York Municipal Fund that seek income exempt from federal, New York State and New York City personal income taxes and from the federal Alternative Minimum Tax (AMT) OPNYX Oppenheimer Rochester Limited Term California Municipal Fund 5 that seek income exempt from federal and California personal income taxes; Fund seeks an average effective maturity of five years or less OLCAX Oppenheimer Rochester Limited Term Municipal Fund that seek income exempt from federal personal income taxes; Fund sees an average effective maturity of five years or less OPITX Oppenheimer Rochester Intermediate Term Municipal Fund that seek income exempt from federal personal income taxes; Fund seeks an average effective maturity of three to seven years ORRWX Oppenheimer Rochester Limited Term New York Municipal Fund 4 that seek income exempt from federal, New York State and New York City personal income taxes; Fund seeks an average effective maturity of five years or less LTNYX Oppenheimer Rochester Short Term Municipal Fund that seek income exempt from federal personal income taxes; Fund seeks an average effective maturity of two years or less ORSTX 4. Prior to 3/28/13, the Fund s name was Oppenheimer Limited Term New York Municipal Fund. 5. Prior to 11/27/13, the Fund was named Oppenheimer Limited Term California Municipal Fund. 11

14 multi Asset Professionally allocated mutual funds that draw on the strengths of OppenheimerFunds individual investment teams. Oppenheimer Capital Income Fund The Fund seeks current income with a focus on yield and strives to offset market and economic volatility The portfolio managers utilize a long-term approach to asset allocation and individual security selection. The equity and equity-like securities are selected using a disciplined fundamental process to uncover companies that they believe are undervalued relative to their long-term earnings power. The fixed income portion of the portfolio is designed to be a core bond holding with broad exposure to the U.S. market, primarily invested in higher quality corporate and government fixed income securities. The opportunistic allocation invests in diverse securities, such as convertible and corporate bonds, assetbacked securities, derivatives and other securities, which the portfolio managers believe have superior payoff profiles. Oppenheimer Global Allocation Fund The Fund seeks a combination of growth of capital and investment income. Its primary objective is growth of capital The Fund offers access to a wide variety of asset classes, including foreign and domestic stocks and bonds, as well as alternative asset classes, such as real estate-related investments and commodity futures, if deemed appropriate by the portfolio managers. The Fund takes an innovative approach to portfolio construction with no pre-existing constraints. Its portfolio managers have the flexibility to compare sub-asset class components with one another, rather than simply comparing major asset classes. Using a rigorous, five-step investment process, the Fund s portfolio managers establish what they believe to be appropriate weightings for each sub-asset class component, and assign portions of the Fund s assets to the respective OppenheimerFunds investment teams, who select individual securities. QVGIX OPPEX 12

15 RISK-BASED PORTFOLIOS Oppenheimer Portfolio Series 1 Portfolio Series offers a way to access the potential benefits of globally diversified, wellconsidered portfolios composed of quality underlying funds in one package. The Funds aim to provide investors with a competitive return potential given the investor s risk tolerance. Each portfolio is managed by seasoned investment professionals who have weathered the challenges of a variety of market climates over time. Oppenheimer Portfolio Series: Conservative Investor Fund The Fund invests in a diversified portfolio of Oppenheimer funds consisting of primarily fixed income investments with smaller allocations to equities and alternatives Target Allocations 2 u U.S. Fixed Income % u U.S. Equity u Alternative u International Fixed Income. 10 u International Equity... 4 OACIX Oppenheimer Portfolio Series: Active Allocation Fund The Fund may be right for investors who may benefit from having the majority of their assets exposed to equities, including international exposure Target Allocations 2 u U.S. Equity... 35% u U.S. Fixed Income u International Equity u Alternative... 5 u International Fixed Income. 4 u Active Allocation...20 OAAAX Oppenheimer Portfolio Series: Equity Investor Fund The Fund may be right for investors who may benefit from full exposure to equities with a considerable allocation to international stocks Target Allocations 2 u U.S. Equity... 55% u International Equity...45 OAAIX Oppenheimer Portfolio Series: Moderate Investor Fund The Fund may be right for investors who may benefit from a fairly balanced portfolio between fixed income and equities with some international exposure Target Allocations 2 u U.S. Equity % u U.S. Fixed Income u International Equity u Alternative u International Fixed Income. 8 OAMIX 1. Portfolio managers will have the authority to select and substitute certain underlying Oppenheimer funds, as designated in the prospectus, and may be subject to potential conflicts of interest because the fees paid to it by some underlying funds are higher than the fees paid by others. However, the manager is a fiduciary to each portfolio and is obligated to act in its best interests when selecting funds. Each of the funds in which the portfolios invest has its own investment risks, and those risks can affect the value of each portfolio s share and investments. There is no guarantee that the underlying funds will achieve their investment objectives. The underlying funds may change their investment objectives or policies without the approval of the portfolio, and a portfolio may be forced to sell its shares of the underlying funds at a disadvantageous time. 2. Percentages shown are based on individual securities owned in underlying funds. 13

16 Alternative In addition to traditional stock and bond funds, OppenheimerFunds also offers alternative investments to help diversify your portfolio. Alternative investments, such as currencies, commodities, real estate, gold, multi-strategy funds, and MLPs can provide investment opportunities in non-traditional asset classes. These asset categories generally have a low correlation with the broad U.S. stock and bond market. Some alternative funds, such as our gold and commodity funds, can involve additional expenses and special risks, such as currency fluctuations and economic and political factors. The specific risks associated with a particular alternative strategy depend on the asset classes and portfolio management techniques involved. Oppenheimer Commodity Strategy Total Return Fund Designed to provide portfolio diversification, long-term growth potential and a hedge against inflation through exposure to commodities markets. The collateral is invested in U.S. Government securities and other fixed income securities This Fund is among the first of its kind providing investors with exposure to commodities, which may add a level of protection against inflation and bear stock markets. The Fund invests in securities whose value is linked to the commodity markets, such as agriculture and energy, giving investors full dollar-todollar exposure to this asset class. QRAAX Oppenheimer Currency Opportunities Fund 1 The Fund seeks to provide foreign currency exposure in countries and markets that are major trading partners of the United States Owning foreign currencies may help to mitigate the impact of rising import prices on a U.S. investor s purchasing power. When the price of imported goods rises as a result of U.S. dollar depreciation, a portfolio exposed to foreign currencies may increase in value, helping to offset a decrease in purchasing power. OCOAX Oppenheimer Flexible Strategies Fund The Fund invests in a flexible portfolio of stocks, bonds and alternative investments In an effort to maximize returns and minimize risk, the portfolio manager uses the Fund s flexibility by shifting investments opportunistically to take advantage of various market conditions. QVOPX Oppenheimer Diversified Alternatives Fund The Fund invests in several underlying Oppenheimer mutual funds to seek exposure to alternative asset classes The portfolio manager seeks to create a welldiversified core alternative portfolio by allocating assets across several Oppenheimer alternative funds. By allocating assets across a wide range of alternative asset classes and strategies the Fund seeks to provide a more attractive balance between growth, income and diversification than any single strategy can provide on its own. ODAAX 1. A special minimum initial investment may apply. 14

17 Oppenheimer Global Multi Strategies Fund The Fund implements a multitude of alternative investment strategies to seek to produce marketneutral returns The portfolio manager employs both quantitative and fundamental analytical methods to invest in a broad range of alternative investment strategies that are unconstrained to a traditional benchmark in an attempt to generate positive returns with modest return volatility and low correlations to traditional asset markets such as stocks and bonds. These alternative strategies include Equity Market Neutral, Fixed Income Alternative, Global Macro and Volatility. Each strategy is tactically managed in the effort to exploit market inefficiencies and anomalies across the global universe of stocks, bonds and commodities. OARAX Oppenheimer Global Real Estate Fund 2,3 The Fund, sub-sub-advised by Cornerstone Real Estate Advisers, invests in U.S. and international real estate securities, primarily real estate companies which include REITs (Real Estate Investment Trusts), REIT-like structures, real estate operating companies, and developers The portfolio managers combine extensive real estate expertise with rigorous securities analysis to seek high quality real estate companies. Top-down analysis is employed to determine geographic markets and property types the portfolio managers believe are most likely to outperform. This is combined with bottom-up analysis of each company s property portfolio, relative valuation, management strategy and financial stability. OGRAX Oppenheimer Gold & Special Minerals Fund 4 The Fund invests mainly in companies that produce gold and other metals and minerals Exposure to companies that produce precious metals such as gold, silver and platinum, and industrial metals such as copper, nickel and zinc, may provide a range of potential advantages including the opportunity to help offset the effects of rising inflation. The Fund seeks to provide access to these and other possible benefits by investing mainly in the common stocks of U.S. and foreign companies involved in mining, processing or dealing in gold and other metals and minerals. OPGSX Oppenheimer Real Estate Fund 2,3 The Fund, sub-sub-advised by Cornerstone Real Estate Advisers, invests mainly in REIT (Real Estate Investment Trust) securities that provide exposure to the commercial real estate market Historically, commercial real estate investments have added diversification to a mixed asset portfolio and have provided a hedge against inflation through capital appreciation and dividend growth. Cornerstone Real Estate Advisers uses a fundamental researchdriven approach to uncover opportunities in the REIT market. The team combines bottom-up equity analysis with strategic sector weights based on economic and broad growth themes. Cutting-edge research around property, geography and capital markets helps to build a portfolio designed to uncover long-term values and short-term pricing anomalies. OREAX 2. The Fund s Sub-Sub-Adviser is Cornerstone Real Estate Advisers, LLC. The portfolio managers are employed by the Sub-Sub-Adviser. The Fund is nondiversified. Large sector holdings (such as real estate) may expose investors to greater volatility and special risks associated with that sector. Because Real Estate Investment Trusts (REITs) do not have an active trading market, shares of REITs may be illiquid. The lack of an active trading market may make it difficult to value or sell shares of REITs promptly at an acceptable price. 3. The Fund is classified as a non-diversified fund and may invest a greater portion of its assets in the securities of a single issuer. 4. The Fund is a non-diversified fund and may invest a greater portion of its assets in the securities of a single issuer. The Investments in mining and metal industry companies may be speculative and may be subject to volatility. 15

18 Alternative (continued) STEELPATH FUNDS 1 The Oppenheimer SteelPath Funds seek to perform well in a broad range of market environments by utilizing in-depth bottom-up research to uncover MLP companies with the most attractive risk/reward potential. This long-term perspective and focus on company fundamentals helps to uncover MLP opportunities in all market conditions. The SteelPath team consists of seasoned investment professionals and a portfolio management team with over 50 years of collective investment experience. The dedicated team consists of an investment committee, portfolio managers, research analysts and traders who are solely focused on the MLP space. Constant and ongoing interaction amongst the MLP team members ensures consistency in the implementation of the investment philosophy and process. Oppenheimer SteelPath MLP Alpha Fund Oppenheimer SteelPath MLP Alpha Fund is a concentrated portfolio of energy infrastructure Master Limited Partnerships (MLPs) that has the potential to provide long-term capital appreciation through distribution growth and an attractive level of current income. MLPAX Oppenheimer SteelPath MLP Income Fund Oppenheimer SteelPath MLP Income Fund seeks to provide investors with a high level of inflation-protected distributions through Master Limited Partnership (MLP) investments. MLPDX Oppenheimer SteelPath MLP Select 40 Fund Oppenheimer SteelPath MLP Select 40 Fund seeks to provide investors with long-term capital appreciation and attractive levels of current income through diversified exposure to the energy infrastructure Master Limited Partnership (MLP) asset class. MLPFX Oppenheimer SteelPath MLP Alpha Plus Fund Utilizing leverage, Oppenheimer SteelPath MLP Alpha Plus Fund is a concentrated portfolio of energy infrastructure Master Limited Partnerships (MLPs) that has the potential to provide longterm capital appreciation, distribution growth and an attractive level of current income. MLPLX 1. Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Each Fund s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLP funds. The Oppenheimer SteelPath MLP Funds are subject to certain MLP tax risks. An investment in an Oppenheimer SteelPath MLP Fund does not offer the same tax benefits of a direct investment in an MLP. The Funds are organized as Subchapter C Corporations and are subject to U.S. federal income tax on taxable income at the corporate tax rate (currently as high as 35%) as well as state and local income taxes. The potential tax benefit of investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation, its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution which could result in a reduction of the fund s value. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result a MLP fund s after-tax performance could differ significantly from the underlying assets even if the pretax performance is closely tracked. 16

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20 We are OppenheimerFunds At OppenheimerFunds, we seek to turn unconventional wisdom into value for investors. This wisdom stems from our high conviction culture, rooted in excellence, integrity, collaboration and passion. With more than five decades of experience in both up and down markets, OppenheimerFunds has emerged as one of the most widely respected money managers in the business. That s due in large part to our unique approach to investing, which incorporates a global perspective across all our funds. And in a global economic environment fraught with change, volatility and uncertainty, this perspective, along with an openness to new ideas, allows us to seek to uncover compelling investment opportunity wherever it lies. Visit oppenheimerfunds.com Call Visit blog.oppenheimerfunds.com Scan this code to learn more about us: Search Google Currents for OppFunds to access our timely thought leadership Follow us: For timely information and perspectives on the impact of recent events on the global economy, please visit oppenheimerfunds.com. 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 CALL OPP ( ). Read prospectuses and summary prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY OppenheimerFunds Distributor, Inc. All rights reserved. FP February 25, 2014