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Oppenheimer: Moving Forward, But Still Work to Do

A new CEO is not making any dramatic changes as the firm continues working to put its financial-crisis-era problems behind it.

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Morningstar recently issued a new Stewardship Grade for OppenheimerFunds. The firm's overall grade--which considers corporate culture, fund board quality, fund manager incentives, fees, and regulatory history--is a C. What follows is Morningstar's analysis of the firm's corporate culture, for which Oppenheimer also receives a C. This text, as well as analytical text on the other four Stewardship Grade criteria, is available to subscribers of Morningstar's software for advisors and institutions: Morningstar Advisor Workstation(SM), Morningstar Office(SM), and Morningstar Direct(SM).

The end of 2015 marked a year and a half since Art Steinmetz became CEO of OppenheimerFunds in July 2014, replacing Bill Glavin. In many ways, Steinmetz represents continuity in Oppenheimer’s corporate culture, especially on the investment side. Before taking over the top spot, he was a portfolio manager on the firm’s taxable fixed-income team for more than 25 years (the first Oppenheimer CEO to come from the investment ranks), and he served as chief investment officer during Glavin’s five-year tenure. He has not made any major changes to OppenheimerFunds’ basic structure, in which investment teams organized by asset class (domestic equity, global equity, taxable fixed-income, and so on) operate with relative autonomy while receiving the resources they need. He has also continued the expansion of the fund lineup that began under Glavin, launching one new fund in the second half of 2014 and three in 2015.

David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.