Poor performance of its bond funds led OppenheimerFunds to revamp its marketing unit, laying off some employees while bringing aboard others who will focus on communicating portfolio managers' ideas to fund clients.
About 20 employees were let go. At the same time, OppenheimerFunds created a nine-person "investment services group" that will be led by new hire Lori Heinel, who starts Aug. 1. Heinel was managing director and head of investment solutions at Citi Private Bank. Investment News reports:
The shake-up comes as the firm tries to reverse months of poor performance in its bond funds. OppenheimerFunds is also facing a number of lawsuits from states over its Section 529 plans.
The changes were outlined to employees in a meeting Monday by Marty Willis, chief marketing officer. She joined OppenheimerFunds last September after 25 years at Fidelity Investments.
The firm also recently hired Vanguard's head of securities litigation, Ari Gabinet, for a new position as general counsel, asset management.
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Irish regulators had previously forced that nation's second largest general insurer under the control of court-appointed administrators Grant Thornton and banned its money-losing UK unit from writing any new business after finding that the firm had flouted capital rules.
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