HenryTo
Site Admin
Joined: 06 Aug 2004
Posts: 11260
Location: Los Angeles, California
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 Posted: Thu Dec 18, 2008 12:38 pm Post subject: Morningstar rips Oppenheimer's bond funds apart |
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http://news.morningstar.com/articlenet/article.aspx?id=268433
| Quote: | How is it possible that a shareholder can go to its Web site, see that Core Bond is down nearly 40%, or 80% in the case of Champion Income, and yet find no information to use to figure out why, much less an actual explanation? Both of Oppenheimer's U.S. government funds held significant CMBS exposure in their latest shareholder reports, and the U.S. Government Trust had swaps-based economic leverage, as well. The funds' manager letters mention CMBS, but concrete data about the magnitude of those exposures can only be derived through the arduous process described above.
I'm sorry to be glib, but this strains credulity. Here's a news flash, Oppenheimer: If your funds are going to use instruments that involve this much portfolio complexity, you have a duty to translate and simplify what that means for your shareholders. Not doing so is patently unacceptable and comes awfully close to dishonesty by omission. While most of your competitors haven't taken on anywhere near this much risk, many use similar portfolio techniques and are just as guilty of these omissions. I can think of numerous ways this can all happen without intent, but we're way past the honeymoon period now that these tools have been around for quite a while. It's time for this to stop all around. |
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