Back in October 2018, we wrote about Invesco making a deal to take over Oppenheimer's money market funds. (See our Oct 22 News, "Invesco Buying OppenheimerFunds.) While the full integration has yet to take place, the official merger date of 5/24/19 has passed, and the Oppenheimer funds have been renamed Invesco Oppenheimer. We review the merger and changes below, and we also discuss changes to the Dreyfus/BNY Mellon funds which take effect Monday, June 3.
The original press release on the purchase, entitled, "Invesco announces Combination with OppenheimerFunds," told us, "Invesco Ltd. (IVZ) ... announced a combination with OppenheimerFunds, a strategic partnership with Massachusetts Mutual Life Insurance Company (MassMutual) and a $1.2 billion common stock buyback program."
It quoted Invesco President and CEO Martin Flanagan, "The combination with OppenheimerFunds and the strategic partnership with MassMutual will meaningfully enhance our ability to meet client needs, accelerate growth and strengthen our business over the long term.... This is a compelling, highly strategic and accretive transaction for Invesco that will help us achieve a number of objectives: enhance our leadership in the US and global markets, deliver the outcomes clients seek, broaden our relevance among top clients, deliver strong financial results and continue attracting the best talent in the industry."
He added, "We have long held OppenheimerFunds' people and strong investment performance track record in high regard.... OppenheimerFunds' culture and commitment to high-conviction investing complement our own, and the combination will create significant opportunities for the talented professionals of both companies."
A filing for the funds says, "In connection with the Transaction, it is anticipated that certain of the investment personnel associated with the Oppenheimer mutual fund business, as well as other Oppenheimer personnel, would transition to Invesco at closing. As a result, Invesco is anticipating that the current portfolio management teams associated with each Oppenheimer Fund will continue to manage the corresponding Acquiring Fund. Combining the Oppenheimer Funds and the Invesco family of funds onto a single operating platform will create a larger fund family that offers a broad range of equity, fixed-income, alternative and other investment options."
The money market fund changes include: Oppenheimer Government Cash Reserves, Class A, C and R are now Invesco Oppenheimer Government Cash Reserves Fund Class A, C and R. The fund also has new Class R6 and Class Y shares. Oppenheimer Government Money Market Fund Class A and Y will merge into Invesco Oppenheimer Government Money Market Fund Class Y. The new fund will also have Class C, Class R, Class R6 and Invesco Cash Reserve shares.
Oppenheimer Institutional Government Money Market Fund Class E and L will convert into Invesco Oppenheimer Institutional Government Money Market Fund Institutional shares. The Class P shares will become Private Investment Class shares. Finally, Oppenheimer Ultra-Short Duration Fund Class A, I and Y will become Invesco Oppenheimer Ultra-Short Duration Fund A, R6 and Y. Note that the CUSIPs have changed on all these funds too.
Prior to the merger, Invesco was the 15th largest manager of money funds with $60.1 billion, while Oppenheimer was the 31st largest manager with $7.9 billion. `The combined Invesco/OppenheimerFunds should rank 14th (below SSGA) with $68.0 billion. (See the pending June issue of our Money Fund Intelligence XLS for the updated funds and statistics.)
In other fund name change news, we wrote in our March 5, 2019 News, "BNY Keeps Dreyfus Name on Money Funds; Brokerage Sweep Rates Flat which said, "BNY Mellon Investment Management announced ... that its money market funds will keep the Dreyfus name, but that it is "rebranding the Dreyfus retail business and long-term mutual funds in the U.S. to align with the BNY Mellon Investment Management brand, effective on or about June 3, as part of a larger global brand initiative."
The original release, entitled, "BNY Mellon Investment Management to Rebrand Dreyfus ... Money Market Funds to Retain Dreyfus Name," stated, "This rebrand will more clearly reinforce for investors BNY Mellon Investment Management's reputation and position as one of the world's largest investment managers. To reflect the strong heritage of Dreyfus in cash management strategies, the Dreyfus brand will be retained on money market funds."
On Monday, the Dreyfus fund complex will be known as "Dreyfus Cash Investment Strategies;" the fund distributor will be "BNY Mellon Securities Corporation;" and the fund adviser will be "BNY Mellon Investment Adviser, Inc." Dreyfus is the 7th largest manager of money market funds with $158.2 billion as of April 30.
