By the end of the summer, the Oppenheimer Balanced Fund
may be no more.
OppenheimerFunds [see profile]
proposes to merge the $569.5-million, large-cap blend, one-star
fund into the $2.3-billion, large-cap value, five-star
[see Morningstar] Oppenheimer Equity Income Fund
The funds' shareholders will vote on the merger plan at a special meeting scheduled for August 12 in Denver.
Samuel Wang, a spokesman for OppFunds, listed three reasons for the merger: economics of scale, similar styles (both funds are managed by OppFunds' Value Equity team) and better prospects for growth.
"The resulting asset base should lead to the management fee rate paid by shareholders of both Funds to decrease as a result of the merger," Wang told The MFWire
in an e-mailed statement. (Both funds reduce their asset-based management fees as they reach higher asset levels -- Equity Income currently charges 68 basis points and Balanced charges 72.)
"Due to historical performance, analyst ratings, and lower fees, we believe Equity Income has greater potential for success for shareholders," Wang added.
PMs Equity Income. Emmanuel Ferreira
PMs the equity side of Balanced, while Krishna Memani
and Peter Strzalkowski
PM the fixed income side.
Neil Anderson, Managing Editor
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