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Losses on Oppenheimer Bond Fund Containing Puerto Rico Debt?

Losses on Oppenheimer Bond Fund Containing Puerto Rico Debt? 150 150 Rex Securities Law

If you own an Oppenheimer Municipal Bond Fund that is down 10% or more, chances are that bond fund contains Puerto Rican municipal debt.

Puerto Rico’s economy has been suffering since 2006. Its debt is over $70 billion, unemployment is high and the population is shrinking. According to Morningstar, most bond funds contain some Puerto Rican debt. Owning a small percentage of a troubled investment in a fund is not an issue, however it becomes an issue when the percentage of Puerto Rican debt in a fund is too great.
A recent Investment News article points out that the Oppenheimer Rochester Virginia Municipal Bond Fund (ORVAX) is down more than 15% this year, ranking it last among single-state municipal bond funds and second-worst among all municipal bond funds. Since the name suggests that the investment is in Virginia debt, investors may be surprised to learn that the Oppenheimer Virginia fund held 33% of its assets in Puerto Rican debt as of August 2013, according to the article.
Other Oppenheimer funds with high exposure to Puerto Rican bonds include:
 
Oppenheimer Rochester VA Muni A
Oppenheimer Rochester NC Muni A
Oppenheimer Rochester MD Muni A
Oppenheimer Rochester AZ Muni A
Oppenheimer Rochester MA Muni A
Oppenheimer Limited Term NY Muni A
Oppenheimer PA Muni A
Oppenheimer Rochester Michigan Muni A
Oppenheimer NJ Muni A
Oppenheimer Rochester AMT-Free NY Muni A
Oppenheimer Rochester Ohio Muni A
Securities regulators recently put Oppenheimer on notice that an investigation  has been initiated against Oppenheimer, Fidelity, and UBS Financial Services in  connection with the sale of Puerto Rican municipal debt. See this for more information.
If you have suffered losses as a result of an investment in
Puerto Rican debt, either directly or in a bond fund, you may be able to recover damages.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

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