Oppenheimer Ca Municipal Fund Losses
Oppenheimer bond funds had less than a stellar year in 2008. Their Oppenheimer CA Municipal Funds (OPCAX, OCABX and OCACX) were marketed and sold to investors as safe funds that would provide tax free income. They lost 41%. Notwithstanding its stated objective in the prospectus proposing to “seek as high a level of current interest income exempt from federal and California income taxes as is consistent with preservation of capital”, investors were hammered as they watched their holdings shrink. Exposure to mortgage related debt, credit default swaps and the use of leverage was sufficient to be their demise.
According to a complaint filed, the fund invested in bonds that were rated at the lowest investment grade or below, which was contrary to its stated objective of “preservation of capital.” Furthermore, it was over concentrated in junk bonds and Limited Tax Obligations, contrary to its policy statement that it would not invest more than 25% of its assets in any one industry or sector.
If you have suffered losses from investments in the Oppenheimer CA Municipal Funds, please contact our securities arbitration firm at 1-800-259-9010 for a confidential, no obligation consultation.