Opinion on  ROCHESTER NATIONAL MUNICIPALS CLASS A (ORNAX)
ORNAX Review

I have been purchasing this fund for my clients as a Financial Advisor for over 10 years and I own the fund personally. Like with any mutual fund they are long term vehicles not to be looked at as a six month or short term hold. If you look at the manager, fund track record, as well as their positions, their objective, their strategy you would not have sold and should not have sold. I will tell you this the fund offers 60days to rebuy and not pay a load again. I recommend purchasing again at these levels which are probably a little lower then where you sold. You need to understand that credit spreads have widened and many auctions for short term municipals have failed causing short term yields to increase which in turn puts pressure on longer term municipals, when the auction rate market gets back to normal, hopefully soon, that should stabilize the longer term maturities and a direct price increase should prevail. Otherwise buy a insured cd paying 3% taxable.

The managers of ORNAX (Oppenheimer Funds) have an incredible positive long term track record and have been
written up in the press in a the positive over the years.
If, over their time line (the life of the fund) they are rated negative less than 1% of this lifeline, does this mean it's time for investors to bail, hardly, if your child has one bad report card over his 15 years of school (K thru College) do you bail on him and give up, or would you realize that it's just a bump in his long positive life.
Trust the fund managers, they are the top in the Municiple Fund Market!

The fund is now at $8.39 so I guess these professional advisors think we should buy even more. ($1.98 more disappears - 19%drop!) I was "sold" this dog early in 2007 to park safely a large amount of cash until I could properly plan to invest. I have been hammered by this fund. The broker and fund representative talked about the mortgage crisis and then blamed insurance and just left me into lose a bundle. I hope someone goes to jail.

I would like to hear what wayneski and vze3wwda have to say now that this fund has continued to tank. I think it is misrepresented as a muni bond fund. One of the primary investments is tobacco securitizations. What are those really? Does anyone know?

In laymen's terms they (tabacco settlement) are bonds that front the money to the gov that the gov is scheduled to take out of the tabacco indutry's revenue persuant to the agreement reached out of court in '98. Thus they are also dependant on tabacco revenue. You could argue ORNAX is indeed misrepresented as a muni fund, however, the invstment strategies and objectives are clearly outlined in the prospectus, including the use of tabacco settlement bonds, derivatives such as inverse floaters and leverage, which also make this fund a higher risk than many realize. Frankly, anyone who does not understand why ORNAX has gotten so hammered lately probably does not understand ORNAX's strategies/holdings or the current conditions that exist in the credit and bond market in general, some of which vze3wwda pointed out, and probably should not have any large commitment in this fund to begin with. If you think credit spreads will continue to widen and that tabacco use will drop sharply then stay away from ORNAX. If not, then it may not be a bad time for younger and/or more agressive investors to learn how ORNAX invests and make a comittment.

I am an investor who possesses a conservative income profile. As such, a financial advisor put me into this fund, which I learned to my regret, was high risk. I have lost a great portion of my deceased husband's life insurance proceeds within a matter of months. I am not impressed with this fund. It ranks on the bottom of all funds within its class. My newly retained securities/arbitration attorney is not impressed as well. This fund is meant for aggressive investors only. All others, beware..