The Markets January 23, 2007

OppenheimerFunds, Inc. Introduces Target-Date Funds

OppenheimerFunds, Inc. has launched a suite of lifecycle funds.
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OppenheimerFunds Inc. said their LifeCycle Funds offer greater overall equity exposure than most target date products in an attempt to help investors maintain sufficient assets to last through retirement. Each fund’s portfolio will be regularly rebalanced to ensure that it remains consistent with its target allocations to the indicated asset classes.

The funds offered include:

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  • Oppenheimer Transition 2010 Fund – designed for investors around 60 years old who expect to retire in their mid-60s, this fund offers relatively large initial equity exposure, a rapid shift to higher levels of fixed income investments and the potential for growth with lower portfolio volatility.
  • Oppenheimer Transition 2015 Fund – designed for investors around 55 years old who expect to retire in their mid-60s, this fund offers greater initial equity exposure, a moderately-paced shift toward more fixed income investments and the potential for growth with some portfolio volatility.
  • Oppenheimer Transition 2020 Fund – designed for investors around 50 years old who expect to retire in their mid-60s, this fund offers high initial equity exposure, followed by a slower shift toward more fixed income investments and the potential for aggressive growth with additional portfolio volatility.
  • Oppenheimer Transition 2030 Fund – designed for investors 40 years old and younger who expect to retire in their mid-60s, this fund offers very high initial equity exposure with the potential for very aggressive growth with a high degree of portfolio volatility. No initial fixed-income investments are included in this portfolio.

OppenheimerFunds can be found on the Web at www.oppenheimerfunds.com.

Data & Research January 23, 2007

New York Could Lose Spot as World Financial Capital

In the next decade, New York may lose its position as financial capital of the world to a city such as London, Dubai, Hong Kong, or Tokyo, which all have a more market-friendly regulatory environment, a new study asserts.
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A report from consulting firm McKinsey & Company and commissioned by New York City Mayor Michael Bloomberg and Senator Charles Schumer suggests that for New York to keep its position, the U.S. must reform its regulatory environment and immigration rules. The study asserts that the keys to competitiveness in the world market are: the availability of skilled people and a more balanced and fair legal and regulatory environment and that, in each of those areas, “the U.S. is moving in the wrong direction,’ making it less attractive to foreign investors. Specifically, the corporate governance rule Sarbanes-Oxley (SOX), is too complicated and expensive, it is difficult to attract qualified American and foreign workers, and the legal environment does not discourage frivolous securities litigation.

The study, “Sustaining New York’s and the US’ Global Financial Services Leadership,” suggests that ways to stem the possible tide away from Wall Street are to revise SOX, making it less costly for small firms to implement; reform securities litigation laws to make the environment more predictable; and ease barriers to skilled foreigners working in the U.S.

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If the current environment continues, McKinsey predicts that Wall Street could lose between 4% and 7% of market share in the global financial market, a cost of $15 billion to $30 billion in revenue to the financial services industry, over the next five years. According to the report, London is New York’s largest threat for market share.

In compiling the report, McKinsey interviewed more than 50 financial services CEOs and business leaders and also surveyed over 300 other senior executives.

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