The recent trend of "adopting" mutual funds while allowing sub-advisors to stay on is continuing, according to an
The Boston-based firm will take over two funds one large cap and one small cap from Oak Ridge Investments, which asked shareholders to ratify the agreement and filed papers with the SEC.
Calling the move a "reorganization" that will be compensated by the exchange of some Pioneer Class A and C shares that are similar in nature to the funds going back to Pioneer, Oak Ridge said that "the reorganization is intended to result in no income, gain or loss for federal income tax purposes to any of the Pioneer Funds, the Oak Ridge Funds or the shareholders of the funds."
Oak Ridge cited attractive benefits to investors, including more assets and the possibility of lower operating expenses once the move to Pioneer is finalized. It also said that Pioneers experience and bevy of resources in mutual fund management, and a promise by Pioneer to limit the operating expenses until at least November of this year.
"Pioneer and its affiliates have greater potential for increasing the size of the fund due to Pioneers experience in distributing mutual funds through a broader range of distribution channels than is currently available to [investors] fund," the filing said. If the shareholders vote "yes" to the proposal, the "adoption" will take place Feb. 13.
