OppenheimerFunds has raised the minimum investments on two popular mutual funds and closed the funds to new retirement plans in an effort to maintain performance by keeping the funds smaller. Effective March 6, OppenheimerFunds’ International Small Company and Developing Markets funds will implement $50,000 minimum investments, a sharp increase from $1,000 and $5,000, respectively, according to a memo penned by Jim Ruff, president.
OppenheimerFunds will also stop sales of both funds into retirement plans after the effective date. Desirable small to medium-size companies located in international and developing markets are becoming increasingly popular and thus moving into short supply, the memo states.
“Recently, the inflows into the Funds, and into the market sectors in which they invest, have increased dramatically,” the memo states. “The Funds’ Managers have determined that purchases of shares of the Funds should be limited to help ensure that the Funds are not adversely affected by excessive flows into the Funds.”
Other fund families have raised investment minimums to $50,000 or more to control flows instead of shuttering funds. Columbia Fund Management hiked its Acorn Fund’s minimum investment to $75,000 from $1,000 in August, which put the investment on a list of 70 retail funds that demand minimum investments ranging from $50,000 to $100,000, according to Morningstar.