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Thursday, December 24, 2009 12:11 PM

Oppenheimer: There are Two Unrelated "Oppenheimer" Funds with the same "Fixed Income Core" name.

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With thanks to Felix Salmon asking Did Oppenheimer’s Core Plus funds rise or fall in 2008? I now see there are two Oppenheimer mutual fund strategies from unrelated companies, but using the same Fixed Income Core name. Felix writes:

Mish has found something very odd indeed from Oppenheimer Funds. Its Fixed Income Core Plus strategy was marketed to the Illinois Bright Start college savings plan, with disastrous results.

But at Oppenheimer’s website, the information on the Core Plus fund shows positive returns for both 2008 and the year to date. It’s all very odd...

Update: Mystery solved! There are two Oppenheimers. There’s Oppenheimer Funds, which sold the disastrous investment to Illinois; its Core Bond Fund did indeed plunge in value in 2008. And then there’s Oppenheimer Investment Management, which Mish linked to, which also has a Core bond fund, but which is not part of Oppenheimer Funds at all; instead it’s an affiliate of Oppenheimer & Co, the boutique where Meredith Whitney used to work.
Here is the chart from the correct OppenheimerFunds Core Bond Fund.

In Oppenheimer's College Fund Loses 38% Using Borrowed Money To Buy Mortgage-Linked Securities and again in Oppenheimer College Fund Fraud Investigation I posted performance charts for the wrong Oppenheimer Core Bond Fund.

When you make a mistake, the first thing you do is apologize. So I offer a sincere apology to Oppenheimer Investment Management.

Here is the chart of Fixed Income Core Plus Performance straight off the Oppenheimer Investment Management website.

Core Plus Annual Performance

I will add an addendum to my earlier posts.

Are The Oppenheimer Companies Related?

Please consider OppenheimerFunds FAQ.
Is OppenheimerFunds related to Oppenheimer & Co. or Oppenheimer Capital?

No. OppenheimerFunds was formed in 1960 as an affiliate of the brokerage firm Oppenheimer & Co, Inc., but is now majority-owned by Massachusetts Mutual Life Insurance Company (MassMutual) and is a member of the MassMutual Financial Group. OppenheimerFunds has no corporate ties to Oppenheimer & Co., Inc. (formerly named Fahnestock & Company, Inc.) or Oppenheimer Capital, an independently operated investment unit of Allianz Global Investors. For further details, see our Company History.
OppenheimerFunds History ...
OppenheimerFunds traces its origins to Oppenheimer & Co., a brokerage firm founded in the early 1950s. In 1960, Oppenheimer & Co. decided to create a separate subsidiary to manage its mutual fund business and organized Oppenheimer Management Corporation to act as the investment adviser for the Oppenheimer Fund, which was first offered to the public on April 30, 1959. Oppenheimer Management Corporation was renamed OppenheimerFunds, Inc. in 1996.
The disastrous results were from OppenheimerFunds which bills itself as "The Right Way To Invest".

To tie a ribbon on the package please see Oppenheimer Investment Management History.
Founded in December, 2004, Oppenheimer Investment Management (OIM) is an institutional asset management firm. OIM is an indirect subsidiary of Oppenheimer Holdings Inc. and an affiliate of Oppenheimer & Co. Inc. (New York, NY). OIM is built on a foundation of the traditional investment firm culture with employee ownership, performance-based compensation and a horizontal management structure.
Again apologies are offered to OIM for initially adding to the confusion. This should straighten it out.

If you were a victim of OppenheimerFunds, please see Oppenheimer College Fund Fraud Investigation for the name of a firm handling a fraud investigation.

Mike "Mish" Shedlock
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