OppenheimerFunds Portfolio Series Gets "Fixed"

February 4, 2008 (PLANSPONSOR.com) - OppenheimerFunds, Inc. (OFI) has expanded its Oppenheimer Portfolio Series with the addition of the Oppenheimer Portfolio Series Fixed Income Active Allocation Fund.

According to a press release, the newest addition to Oppenheimer Portfolio Series employs a multi-manager approach, taking advantage of several of Oppenheimer managers’ sector expertise and employs active asset allocation for a portion of the fund. The result, according to the firm, is a diversified portfolio comprised of fixed income sectors that, when combined, can serve as a complete fixed income allocation within an investor’s portfolio.

Oppenheimer Portfolio Series, introduced in 2005, is a set of asset allocation mutual funds that invest in a diversified portfolio of mutual funds and are designed to meet the appropriate risk/return profiles of different investors. The other four funds are:

  • Oppenheimer Conservative Investor Fund,
  • Oppenheimer Moderate Investor Fund,
  • Oppenheimer Active Allocation Fund and
  • Oppenheimer Equity Investor Fund.

Management Structure

The new fund is managed by Oppenheimer’s Core Plus and International Fixed- Income teams. It will typically invest 80% of its assets in a “core allocation” of Oppenheimer taxable fixed income funds and 20% in an “active component.” The core allocation is 44% Oppenheimer Core Bond Fund, 12% Oppenheimer International Bond Fund, 12% Oppenheimer Master Loan Fund LLC (investing primarily in bank loans), and 12% Oppenheimer Champion Income Fund. The core allocation will be rebalanced at least annually, while the active allocation component allows the management team to adjust the Fund’s risk exposure as changes in the market conditions warrant, according to the firm.

The announcement notes that the Oppenheimer Portfolio Series Fixed Income Asset Allocation Fund is different from other multi-sector bond funds in that it provides an allocation to high-quality fixed income in quantities sufficient enough to help offset equity risk due to the negative correlation between stocks and high quality bonds.

The new fund requires a minimum initial investment of $1,000 ($500 for a retirement account) and is available across all OppenheimerFunds retirement products including rollovers.