Restrictions on Exchanges: OREAX, OUSGX, OQGAX?

hank

Just curious. OREAX, OUSGX, OQGAX / Three funds I’ve exited over the past 3-4 months. Invesco has a note near each closed account when I log in that “Exchanges for this fund are being restricted.” Maybe it’s related to the merger with Oppenheimer? But OUSGX usually scores quite well in ratings among limited term bond funds - So I’d be surprised if they would close that one.

In terms of communications ... these guys rank near bottom. Appreciate any news on these funds.

msf

Very likely. These three funds (and many others) are being acquired by other existing funds. In the case of five-star OUSGX, that's being absorbed by three-star STBAX.

With apologies to Shadow, who likely already posted this SEC filing, here's a short (2 page) filing on the acquisitions:
https://www.sec.gov/Archives/edgar/data/105377/000119312519313341/d849009d497.htm

It says that "The reorganizations are expected to be consummated in or around April or May 2020." Also that "It is currently anticipated that the Target [old] Fund will close to new investors approximately two business days prior to the closing date of the reorganization to facilitate a smooth transition."

Maybe they just decided to close off new investments early, especially since it seems that the acquiring funds already exist and are open for business. As you wrote, communications don't seem to be great here. Maybe the notation just means that you should expect the fund to be closed soon. Or maybe the legal beagles just haven't communicated to the tech staff that the restrictions are not to be implemented now but in the future.

TheShadow

@msf beat me to the punch (and no offense taken),

A recent SEC filing may shed some light:

https://www.sec.gov/Archives/edgar/data/1112996/000119312519313349/d849009d497k.htm

The reorganizations are expected to be consummated in or around April or May 2020. Upon closing of the reorganizations, shareholders of the Target Fund will receive shares of a class of an Acquiring Fund that are equal in value to the shares of the corresponding class of the corresponding Target Fund that the shareholders held immediately prior to the closing of the reorganization, and the Target Fund will liquidate and cease operations.

A combined Information Statement/Prospectus will be sent to shareholders of each Target Fund which will include a full discussion of the reorganization and the factors the Boards of Trustees considered in approving the Agreement. Shareholders of each Target Fund do not need to approve the reorganization.

It is currently anticipated that the Target Fund will close to new investors approximately two business days prior to the closing date of the reorganization to facilitate a smooth transition of Target Fund shareholders to the Acquiring Fund. All investors who are invested in the Target Fund as of the date on which the Target Fund closes to new investors and remain invested in the Target Fund may continue to make additional investments in their existing accounts and may open new accounts in their name. The Acquiring Fund will remain open for purchase during this period.

The above link was in the "Invesco/Aim Funds name changes & reorganizations (a lot of them too many to identify)" which is now in the Bullpen:

https://www.mutualfundobserver.com/discuss/discussion/54627/invesco-aim-funds-name-changes-reorganizations-a-lot-of-them-too-many-to-identify

(See the fifth and eighth links in the hyperlink above)

hank

“At meetings held December 9-11, 2019, the Board of Trustees of Invesco Gold & Precious Metals Fund (the “Target Fund”), a series portfolio of AIM Sector Funds (Invesco Sector Funds), unanimously approved an Agreement and Plan of Reorganization (the “Agreement”) pursuant to which the Target Fund would transfer all or substantially all of its assets and liabilities to Invesco Oppenheimer Gold & Special Minerals Fund (the “Acquiring Fund”), a series portfolio of AIM Sector Funds (Invesco Sector Funds), in exchange for shares of the Acquiring Fund that would be distributed to Target Fund shareholders.”

Thanks to @msf and @TheShadow. Looks like one of Oppenheimer’s better funds, OUSGX, is headed for the chopping block (sort of). The only one I really care about at present, OPGSX, appears to be picking up Invesco’s existing precious metals fund’s assets. I didn’t see OREAX mentioned - but it’s treated me well at times in the past. T.Rowe’s TRREX, however, is a suitable substitute.

Thanks for the insights.

TheShadow

Invesco Oppenheimer Real Estate Fund will be reorganized into Invesco Real Estate Fund, a series portfolio of AIM Investment Securities Funds (Invesco Investment Securities Funds).

See towards the bottom of this link:
https://www.sec.gov/Archives/edgar/data/105377/000119312519313341/d849009d497.htm

hank

Thanks again. Sounds to me like a fund group in chaos. Hope they get it right. I have little there and it will be even less in a couple weeks.

In October I received a letter saying their Infrastructure fund OQGAX was dropping Australian based Macquarie as outside manager and would be serviced in-house. I sold all my shares shortly thereafter. I can’t recall any mention of closing the fund or merging into a different one. . Maybe it was hidden in some fine print. Curiously, Oppenheimer had opened that fund only about 2 years earlier, although it was essentially the same fund Macquarie had run on their own (with likely higher fees).