Oppenheimer to Buy the Rochester Funds

Oppenheimer Management Corp. is to acquire the Rochester Funds, whose portfolios include the nation's 14th largest municipal fund, the $2 billion Rochester Fund Municipals.

In a joint statement, Oppenheimer and Rochester said the boards of the two fund families had agreed to the transaction, which is subject to approval by Rochester shareholders. Purchase terms were not disclosed.

Rochester's three funds with $2.9 billion in assets will continue to be managed by the current portfolio managers from their base in Rochester, N.Y. In addition to the $2 billion New York municipal fund, Rochester also runs the $530 million Limited Term New York Fund and a convertible bond fund.

"The Rochester Funds are one of the mutual fund industry's great undiscovered gems," said Bridget A. Macaskill, president and chief executive officer of Oppenheimer Management Corp., which has $39 billion under management.

Michael S. Rosen, principal at Rochester, said: "With Oppenheimer handling much of our administrative responsibilities, we will be able to concentrate more on what we do best - managing money."