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Oppenheimer Management Corp. agrees to acquire the assets of 12 Quest For Value mutual funds; Oppenheimer Management Corp. to offer expanded family of funds.

NEW YORK--(BUSINESS WIRE)--Aug. 18, 1995--Oppenheimer Management Corp. (OMC) and Oppenheimer Capital announced today that they had signed a definitive agreement whereby OMC will, subject to certain conditions, acquire the assets of 12 of Oppenheimer Capital's Quest for Value Funds.

The transaction has been approved by the Boards of Oppenheimer and Quest for Value Funds but is subject to the approval of the Quest for Value Fund shareholders.

The 12 Quest for Value Funds had total net assets, as of July 31, 1995, of approximately $1.6 billion, including $1.25 billion in six equity funds and approximately $330 million in six fixed-income funds. As of July 31, 1995, Oppenheimer Management Corp. and its affiliates had assets of more than $36 billion under management in more than 45 mutual funds.

Under the terms of the agreement, the portfolios of the six equity funds -- Quest for Value Fund Inc., Quest for Value Global Equity Fund Inc., Quest for Value Opportunity Fund, Quest for Value Small Capitalization Fund, Quest For Value Growth and Income Fund and Quest for Value Officers Fund -- will continue to be managed by Quest for Value Advisors under subadvisory agreements with OMC. OMC will act as the advisor to the funds. Under this arrangement, the current portfolio management teams will continue to manage the funds after the acquisition is completed.

Each of the six Quest for Value fixed-income funds will be merged into funds currently managed by Oppenheimer Management Corp. Quest for Value Investment Quality Income Fund, Quest for Value U.S. Government Income Fund and Quest for Value Global Income Fund will be merged into Oppenheimer Bond Fund, Oppenheimer U.S. Government Trust and Oppenheimer Strategic Income Fund, respectively. The three Quest for Value tax-exempt funds -- the National, California and New York Tax-Exempt Funds -- will be merged into Oppenheimer Tax-Free Bond Fund, Oppenheimer California Tax-Exempt Fund and Oppenheimer New York Tax-Exempt Fund, respectively.

The transaction also includes Quest's retirement planning business, which has total assets of approximately $400 million invested in the funds, most of which is in 401(k) and IRA accounts.

The transaction does not include the assets of Quest for Value's Primary, Government and three municipal portfolios of Quest Cash Reserves or the seven portfolios of the Quest for Value Accumulation Trust offered in variable annuity and variable life insurance products. Likewise, the transaction does not include those assets related to other activities of Quest for Value Advisors. After the closing, Quest for Value Advisors will operate under a new name, OpCap Advisors.

The purchase price for the acquisition will be based primarily on a formula taking into account the assets of the funds at closing. As of July 31, 1995, that portion of the purchase price would be approximately $37.6 million. An additional payment of up to $4.2 million may be made on the first anniversary of the closing if the assets of the merged Quest fixed income funds are at stated levels.

"The Quest for Value Funds have an outstanding reputation for value investing, while we have a more growth-oriented style," said Bridget A. Macaskill, president of Oppenheimer Management Corp. "This acquisition will enable us to offer investors an expanded product line of top performing mutual funds with complementary investment styles."

Joseph M. LaMotta, president of Oppenheimer Capital, said, "This transaction will allow Oppenheimer Capital to concentrate on investment management while capitalizing on the extensive distribution capabilities of Oppenheimer Management Corporation." -0-

Approximately 67% of the ownership of Oppenheimer Capital is held by Oppenheimer Capital L.P., a Delaware Limited Partnership whose units are traded on the NYSE (ticker symbol: OCC).

Oppenheimer Funds are distributed by Oppenheimer Funds Distributor Inc., Two World Trade Center, New York, N.Y., 10048. OMC is not related to the brokerage firm Oppenheimer & Co. Inc. nor its affiliate Oppenheimer Capital.

CONTACT: Oppenheimer Management Corp.

Jane C. Ingalls, 212/323-0534

or

Oppenheimer Capital

Bernard H. Garil, 212/667-7422
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Publication:Business Wire
Date:Aug 18, 1995
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