®      OppenheimerFunds      Regulatory Serendipity:      Fee Disclosure Generates Optimism      and OpportunityShares of ...
About the Survey       Goal of the survey: To gauge the impact of fee disclosure regulations on plan sponsors and        ...
Agenda      Executive summary            Importance of fees in hiring process            Pop quiz: How well do plan spo...
Executive Summary    In September 2012, shortly after the first service provider and participant disclosures were delivere...
Executive Summary    Most plan sponsors also see drawbacks. Sponsors cited time consumption, use of resources that could  ...
Executive Summary    Many sponsors realize that despite having a clear picture of fees, they still need to assess the valu...
Executive Summary    The fee disclosure requirements also offer an opportunity to engage with participants. Plan sponsors ...
Agenda      Executive Summary            Importance of fees in hiring process            Pop quiz—how well do sponsor u...
Fees Have Major Impact on Provider Hiring    When asked to allocate 100 points to various plan provider selection criteria...
Advisors and Performance Drive Fund Lineups     Advisors play a key role in selection of investment options, and their rec...
Advisor Fees, Philosophy and Services are     Key Drivers     Fees are the most important driver of advisor selection, alt...
Plan Sponsors are Willing to Pay a Premium      for Active Management and Recordkeeping      80% of sponsors are willing t...
Agenda      Executive Summary            Importance of fees in hiring process            Pop quiz: How well do plan spo...
Plan Sponsors Need Better Understanding of     Requirements     74% of sponsors believe they know all of the fee disclosur...
Pop Quiz: “Investment-Related Information     Must be Furnished…”     Only 21% of sponsors knew that participant disclosur...
Pop Quiz: “If My Provider Does Not Provide     Adequate Disclosures, I Must…”     A large number of respondents were aware...
Agenda      Executive Summary            Importance of fees in hiring process            Pop quiz: How well do plan spo...
Most Sponsors Feel Some Impact from Fee     Disclosure     The majority of sponsors believe that fee disclosure regulation...
Plan Sponsors See More Benefits to Fee     Disclosure than Drawbacks     Plan sponsors see more benefits than drawbacks, w...
Fee Disclosure Helps Sponsors Meet their     Fiduciary Responsibilities     Plan sponsors see several benefits to fee disc...
… But Fee Disclosure Consumes Time and     Other Resources     Yet plan sponsors realize that these benefits may come at a...
Participant Engagement Has Improved with     Fee Disclosure     The fee disclosure regulations have cast a spotlight on re...
Fee Disclosure Benefits Participants     The fee disclosure regulations have helped plan participants feel more educated a...
… But Fees are Still Confusing     As the benefits to participants present an opportunity for enhanced dialogue, so do the...
Agenda      Executive Summary            Importance of fees in hiring process            Pop quiz—how well do sponsors ...
The New Value Imperative     Many sponsors realize that despite having a clear picture of fees, they still need to assess ...
Plan Sponsors Need Help with Next Steps     Despite plan sponsors’ general level of optimism and empowerment, only 20% of ...
Majority of Sponsors are Looking for Help     Working Through Disclosures     Only 22% of sponsors do not feel they need h...
Sponsors are Helping Participants      Understand Fees      Plan sponsors have taken—or plan to take—a wide variety of act...
Plan Sponsors Considering Many Initiatives in     Response to Fee Disclosure     Plan sponsors anticipate a wide variety o...
Participants Expected to Flock to Funds with     Lower Fees     80% of sponsors surveyed expect their participants to move...
Conclusion     Plan sponsors are generally more positive about fee disclosure than one might expect. But their     knowled...
Disclosures     Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, a...
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Oppenheimer Impact of Fee Disclosure

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Jennifer serves as our client service manager, assistant compliance officer and is also involved in performing annual CEFEX assessments. Jennifer came to Canon Capital with six years of banking experience, most recently as a Branch Manager. Jennifer is a graduate of Gwynedd Mercy College with a Bachelor of Science degree in Business Administration.

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Oppenheimer Impact of Fee Disclosure

  1. 1. ® OppenheimerFunds Regulatory Serendipity: Fee Disclosure Generates Optimism and OpportunityShares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or anyother agency, and involve investment risks, including the possible loss of the principal amount invested.Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008© 2012 OppenheimerFunds Distributor, Inc. All rights reserved.
  2. 2. About the Survey  Goal of the survey: To gauge the impact of fee disclosure regulations on plan sponsors and participants  Fielded: September 2012  Respondent base: Decision makers from an independent panel of retirement plan sponsors  Methodology: Online, 44 question survey  Respondents: 200 randomly selected plan sponsors: Plan Type Total Employees Total Respondents Micro plans <100 employees 42 respondents Small plans 100-499 employees 42 respondents Mid-size plans 500-999 employees 39 respondents Large plans 1,000-4,999 employees 42 respondents Mega plans 5,000+ employees 35 respondents2
  3. 3. Agenda  Executive summary  Importance of fees in hiring process  Pop quiz: How well do plan sponsors understand requirements?  Impact of fee disclosure  Opportunities3
  4. 4. Executive Summary In September 2012, shortly after the first service provider and participant disclosures were delivered to plan sponsors and participants, OppenheimerFunds conducted a nationwide survey of 200 retirement plan sponsors to gauge the impact of the fee disclosure regulations. The survey results show that plan sponsors are largely positive about the information being disclosed. They perceive benefits to themselves and their participants. Substantially more plan sponsors believe that the benefits of fee disclosure already do or ultimately will outweigh the drawbacks (66%) compared with those who believe the drawbacks will outweigh the benefits (27%). More than one-third said that disclosure of fees is a positive change and nearly one-third said that the disclosures make their lives easier. While plan sponsors see several benefits, key among them are:  Disclosures help them meet their fiduciary responsibilities  Improved provider transparency  Disclosures help them to better understand fees relative to services and make educated decisions about providers References to disclosures generally cover both 408(b)(2) and participant-level disclosure, unless context clearly relates to only one disclosure rule.4
  5. 5. Executive Summary Most plan sponsors also see drawbacks. Sponsors cited time consumption, use of resources that could be better used for other purposes and an increase in participants challenging plan decisions as top drawbacks. Sponsors also believe the disclosures hold several benefits for participants, including participants:  Feeling more educated about the plan  Having an increased trust of the plan sponsor  Better understanding the purpose of fees  Being more familiar with the plan5
  6. 6. Executive Summary Many sponsors realize that despite having a clear picture of fees, they still need to assess the value of services—48% believe that providers with the lowest fees do not always provide the best value. However, the converse is not well-accepted; only 4% of sponsors believe that higher fees can indicate higher value. Despite plan sponsors’ general level of optimism and empowerment, most admit that they are not confident that they know what to do with the information received. Only 20% of respondents are very confident. This represents a tremendous opportunity for advisors to provide guidance and support. And sponsors actually understand less about the disclosure requirements than they think—assistance is needed to help them understand and properly fulfill their obligations.  A strong majority of plan sponsors did not know how often plan providers are required to furnish information.  And just 9% of plan sponsors surveyed knew the three steps that must be taken if they do not receive adequate disclosures.6
  7. 7. Executive Summary The fee disclosure requirements also offer an opportunity to engage with participants. Plan sponsors are particularly concerned that participants will be drawn to the least expensive investments—without regard for asset allocation, services or investment style. To help participants with concerns raised by fee disclosure, plan sponsors have already taken several steps—or plan initiatives within the next year—including:  Reminding employees whom to contact with questions  Providing materials created by the provider or advisor  Offering a meeting to discuss plan fees  Adding resources to respond to employee inquiries7
  8. 8. Agenda  Executive Summary  Importance of fees in hiring process  Pop quiz—how well do sponsor understand requirements?  Impact of fee disclosure  Opportunities8
  9. 9. Fees Have Major Impact on Provider Hiring When asked to allocate 100 points to various plan provider selection criteria, sponsors allocated the most points to fees—an average of 22.2 points, almost as much as service quality and the provider’s capabilities combined. This emphasis on fees over value could lead to increased fee compression; providers must articulate their differentiation or risk being commoditized. Prioritization of considerations when hiring plan provider Plan Provider Fees 22.2 Timely and Accurate Service 14.1 Recordkeeping Capabilities 13.7 Existing Relationship 13.2 Investment Philosphy 12.9 Compliance Capabilities 10.4 Quality of Technology 6.3 Innovative Services 6.0 Other 1.3 0 5 10 15 20 25 Allocation of points out of 100 Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 20129
  10. 10. Advisors and Performance Drive Fund Lineups Advisors play a key role in selection of investment options, and their recommendations are more highly considered than even historical performance. While fund fees are important, they are not the most critical selection driver. Prioritization of considerations when selecting investment options for plan lineup Recommendation from Advisor 19.0 Historical Performance 17.5 Fund Fees 13.8 Investment Philosophy 11.1 Familiarity with Company 8.5 Provider Preferred List 8.5 Risk Management Process 8.0 Portfolio Managers 6.6 Services Offered by Company 5.0 Other 2.0 0 5 10 15 20 Allocation of points out of 100 Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201210
  11. 11. Advisor Fees, Philosophy and Services are Key Drivers Fees are the most important driver of advisor selection, although they are not identified as such a dominant criteria as they are for the plan’s recordkeeper. Many additional factors are considered almost equally important, such as investment philosophy and services. Advisors will need to demonstrate their value to substantiate their fees and, given the importance of services offered, a menu-driven approach to pricing might be optimal. Prioritization of considerations when selecting a plan advisor Level of Fees 17.4 Investment Philosophy 16.5 Services Offered 15.5 Structure of Fees 13.6 Will Act as Fiduciary 13.1 Recommendations 11.9 Existing Client Base 7.8 Other 4.2 0 2 4 6 8 10 12 14 16 18 20 Allocation of points out of 100 Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201211
  12. 12. Plan Sponsors are Willing to Pay a Premium for Active Management and Recordkeeping 80% of sponsors are willing to pay a premium for Plans with more than 500 employees are more certain services, with active investment management likely to pay a premium for active management, viewed as most spend-worthy. Superior recordkeeping perhaps reflecting more expertise or resources services from providers are also seen as deserving of focused on investment strategy. higher fees, as are fiduciary investment services from advisors. But for 20% of respondents, low fees are paramount. Services for Which Sponsors are Willing to Pay a Larger Plans are More Willing to Pay Premium for Active Premium Investment Management. Active Management Active Management 42% 55% Recordkeeping Capabilities Recordkeeping Capabilities 51% 40% 46% Fiduciary Investment Fiduciary Investment Services Services 36% Customized Employee Customized Employee 33% Education Education 28% 26% Percent of Sponsors In-person Presentations In-person Presentations 28% Other Other 1% None None 20% 0% 10% 20% 30% 40% 50% Micro Plan Small Plan Mid-Size Large Plan Mega Plan: <100 Ees 100-499 Ees 500-999 Ees 1,000-4,999 5,000+ Ees Ees Percent of Sponsors Selecting Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201212
  13. 13. Agenda  Executive Summary  Importance of fees in hiring process  Pop quiz: How well do plan sponsors understand requirements?  Impact of fee disclosure  Opportunities13
  14. 14. Plan Sponsors Need Better Understanding of Requirements 74% of sponsors believe they know all of the fee disclosure requirements, while 24% admit they don’t really know them and 3% don’t know them at all. But do those who think they know the requirements really understand them? How well do you know all of the requirements of fee disclosure regulations? I Dont Know Them at All 3% I Know Them Very Well 16% I Dont Really Know Them 24% I Know Them Somewhat Well 58% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201214 :
  15. 15. Pop Quiz: “Investment-Related Information Must be Furnished…” Only 21% of sponsors knew that participant disclosure information was required to be furnished annually—and only 7% knew that it needed to be updated within 60 days of any change. 50% Percent of Sponsors 21% 8% 9% 7% 7% I Dont Know Annually Quarterly Within 90 Days Within 60 Days Within 30 Days of Any Change of Any Change of Any Change Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201215
  16. 16. Pop Quiz: “If My Provider Does Not Provide Adequate Disclosures, I Must…” A large number of respondents were aware of at least some of the steps necessary if they did not receive adequate information from their service providers, although just 9% knew all three required measures if the covered service provider does not provide timely and adequate disclosures. Plan sponsors who fail to engage in a prudent evaluation process, or fail to identify and act upon missing or deficient disclosures, will be subject to a fiduciary breach and possible prohibited transaction.1 64% Percent of Sponsors 30% 20% 15% 3% I Dont Know Im Not Obligated to Report Provider to Terminate the Request Information Follow-Up DOL Relationship from Provider Just 9% of Sponsors Selected All 3 Correct Answers 1DrinkerBiddle Client Bulletin, July 2012 Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201216
  17. 17. Agenda  Executive Summary  Importance of fees in hiring process  Pop quiz: How well do plan sponsors understand requirements?  Impact of fee disclosure  Opportunities17
  18. 18. Most Sponsors Feel Some Impact from Fee Disclosure The majority of sponsors believe that fee disclosure regulations will have an impact on both themselves and participants, with sponsors expected to be more greatly affected. Impact on sponsors Impact on participants Too Early to Too Early to Significant Significant Tell Tell Impact Impact 10% 12% 8% 12% No Impact 16% No Impact 36% Slight Impact 45% Slight Impact 63% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201218
  19. 19. Plan Sponsors See More Benefits to Fee Disclosure than Drawbacks Plan sponsors see more benefits than drawbacks, with more benefits accruing to participants. Respondents say that fee disclosure has: increased trust in providers, helped them determine fee reasonableness, helped them carry out fiduciary responsibilities, made their lives easier and better equipped them to talk to employees about their plan. Larger plan sponsors are more likely than smaller plan sponsors to recognize all of these benefits. Are there major benefits? Are there major drawbacks? 62% Percent of Sponsors 43% 25% 27% Major Benefit to Sponsors Major Drawback to Sponsors Major Benefit to Participants Major Drawback to Participants Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201219
  20. 20. Fee Disclosure Helps Sponsors Meet their Fiduciary Responsibilities Plan sponsors see several benefits to fee disclosures, most notably help with meeting fiduciary responsibilities and improved provider transparency, as well as providing a better understanding of fees relative to services. What are benefits to plan sponsors? Helps Me Meet Fiduciary Responsibilities 17.70% Increased Provider Transparency 17.20% Better Understanding of Fees Relative to Services 13.00% Better Understanding of Fee Sources 11.30% Helps with Plan Provider Decisions 10.90% Reduces Time Spent Gathering Information 9.00% Provides Material for Participant Conversations 8.00% Helps with Fund Lineup Decisions 7.30% Participants Challenge Decisions Less 4.50% Other 1.00% No Benefit to Sponsor 4.00% 0.00% 10.00% 20.00% Percent of sponsors Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201220
  21. 21. … But Fee Disclosure Consumes Time and Other Resources Yet plan sponsors realize that these benefits may come at a cost in terms of the time and resources spent evaluating and implementing the requirements. Many are concerned about the level of detail, and also anticipate that employees may begin to question aspects of the plan. Advisors who can help these sponsors plot a course of action, document decisions and develop a strategy for responding to participant inquiries can help plans save time and resources. What are drawbacks to plan sponsors? Disclosures are Time Consuming 20.60% Disclosures Consume Resources that Could Be Used 19.30% for Other Plan for Other Plan Purposes Purposes Participants Increasingly Challenge Decisions 14.80% Disclosures are Costly to Implement 14.50% Disclosures Provide Too Much Detail 14.20% Disclosures are Not Detailed Enough 10.80% Other 5.90% No Drawback to Sponsor 15.00% 0.00% 10.00% 20.00% 30.00% Percent of sponsors Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201221
  22. 22. Participant Engagement Has Improved with Fee Disclosure The fee disclosure regulations have cast a spotlight on retirement savings plans. This has had a positive result—a marked increase in engagement among employees. Plan sponsors, providers and advisors should take advantage of this heightened level of engagement to drive saving and investment messages designed to improve retirement funding success. Employee engagement before and after fee disclosure 62% 54% 54% 43% 38% 45% 49% 41% 31% 19% Micro Plan <100 Ees Small Plan100-499 Ees Mid-Size 500-999 Ees Large Plan 1.000-4,999 Ees Mega Plan 5,000+ Ees Employee Engagement Before Fee Disclosure Employee Engagement After Fee Disclosure Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201222
  23. 23. Fee Disclosure Benefits Participants The fee disclosure regulations have helped plan participants feel more educated about the plan and helped instill greater trust in plan sponsors—among other benefits. These regulations have the potential to energize discussions about retirement savings─rather than just fees─and further engage participants to potentially improve saving and investment outcomes. What are the benefits to participants? Feel More Educated About Plan 18.50% Increased Trust of Plan Sponsors 16.00% Understand Purpose of Fees 15.40% Increased Familiarity with Plan 13.80% Empowered to Make Decisions 13.30% Appreciation for Value of Plan 12.10% Reduces Time Participants Spend Gathering Information 9.90% Other 1.00% No Benefit to Participants 9.00% 0.00% 10.00% 20.00% Percent of sponsors Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201223
  24. 24. … But Fees are Still Confusing As the benefits to participants present an opportunity for enhanced dialogue, so do the drawbacks. Plan sponsors are particularly concerned that participants will be drawn to the least expensive investments— without regard for asset allocation, services or investment style. Educational programs that help plan participants understand fees and their context are likely to be welcomed. What are drawbacks to participants? Fees are Confusing to Participants 23.60% Drawn to Lowest Fees Without Consideration for Asset Allocation 18.60% Drawn to Funds with Lowest Fees Without Regard for Services, Investment Style Investment Style 18.50% Question Fees Without Perspective 16.20% Participants are Upset Over Level of Fees 10.30% Participants are Not Sure How to Select Funds 9.10% Other 3.60% No Drawback to Participants 23.00% 0.00% 10.00% 20.00% 30.00% Percent of sponsors Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201224
  25. 25. Agenda  Executive Summary  Importance of fees in hiring process  Pop quiz—how well do sponsors understand requirements?  Impact of fee disclosure  Opportunities25
  26. 26. The New Value Imperative Many sponsors realize that despite having a clear picture of fees, they still need to assess the value of services—48% believe that providers with the lowest fees do not always provide the best value. However, the converse is not well-accepted; only 4% of sponsors believe that higher fees can indicate higher value. This leads to a value imperative—providers and advisors must be prepared to clearly articulate the value they offer for the fees they charge. Indeed, fees should be evaluated in the context of the quality and the effectiveness of the service. Plan sponsor agreement with statements Percent of Sponsors Rating of 7 indicates that respondents agree completely with the statement Rating 6 or 7 out of 7 Providers with lowest fees do not always provide best value 48% Fee disclosures help me carry out fiduciary responsibilities 39% The disclosures make it easier for me to assess how reasonable plan’s fees and services are 37% Fee disclosures are a positive change 36% Fee disclosures make my life easier 31% I feel better equipped to talk to employees about the plan 25% Fee disclosures are confusing 24% Disclosures have increased my trust in providers 22% Fee disclosures are costly 18% Higher fees can indicate higher value 4% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201226
  27. 27. Plan Sponsors Need Help with Next Steps Despite plan sponsors’ general level of optimism and empowerment, only 20% of respondents are very confident about what to do next, and 31% either don’t know what to do, need more guidance, or claim they haven’t received anything yet. Approaching these plan sponsors with an action plan for dealing with fee disclosures provides opportunity for advisors to demonstrate their value. Which best describes how you feel about disclosures? I Haven’t Received I Dont Know What to Any Disclosures Do 2% 3% I am Very Confident I Know What to Do I Need More 20% Guidance on What to Do 26% I am Somewhat Confident I Know What to Do 50% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201227
  28. 28. Majority of Sponsors are Looking for Help Working Through Disclosures Only 22% of sponsors do not feel they need help working through disclosures. Many of the others are looking for a variety of education touch points, providing an excellent opportunity for advisors to provide real consultative support to help remove some of burdens perceived by their clients. How can advisors, investment managers and providers help sponsors? Other 17% Materials/ Collateral 29% Not Sure 4% No Need for Help 22% Meetings/ Education/ Webinars Online Education 18% 10% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201228
  29. 29. Sponsors are Helping Participants Understand Fees Plan sponsors have taken—or plan to take—a wide variety of actions to help participants work through disclosures. Larger plans—likely because they tend to have more resources—are planning a more proactive approach. Advisors and retirement plan providers are well-suited to provide many of these services—and take the opportunity to expand the conversation beyond fee disclosure to helping improve retirement saving and investing outcomes. What have you done/plan to do to help participants? Remind Employees Who to Remind Employees Who to Contact with Questions Contact with Questions 65% 31% Provide Materials Created by Materials Created by Provider Provider 56% 33% Provide Materials Created by Provide Materials Created by Advisor 50% 36% Advisor Offer a Meeting to Review Fees Offer a Meeting to Review Fees 31% 41% Add Resources to Respond to Add Resources to Respond to Employee Inquiries Employee Inquiries 28% 34% 0% 50% 100% Have Done Plan Within Next Year Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201229
  30. 30. Plan Sponsors Considering Many Initiatives in Response to Fee Disclosure Plan sponsors anticipate a wide variety of actions in response to fee disclosure, chief among them renegotiating fees with advisors and providers, along with asking for more services. There is also a fair amount of interest in reviewing funds and lineups. Opportunity abounds for advisors and providers who recognize the value imperative─and can demonstrate theirs. Actions Being Considered Percent of Sponsors Renegotiating Fees with Provider 24% Requesting More Services from Provider 23% Requesting More Services from Advisor 20% Changing to Funds Where Fees are Aligned to Value They Add 20% Benchmarking the Plan 19% Enhancing Investment Lineup Evaluation Process 17% Renegotiating Fees with Advisor 17% Switching to Funds With Lower Fees From Current Investment Manager 16% Enhancing Provider Evaluation Process 15% Switching to Funds With Lower Fees From Investment Manager Not Currently in Lineup 14% Replacing Advisor 11% Changing Plan Provider 10% Decreasing Use of Advisors 9% Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201230
  31. 31. Participants Expected to Flock to Funds with Lower Fees 80% of sponsors surveyed expect their participants to move to funds with lower fees, or at least better align their investments to reflect the best value in terms of performance and fees. Interestingly, 45% expect that these disclosures will result in participants increasing their plan contributions, a perhaps unanticipated yet very positive result of the disclosure effort. What have your participants done/what do you expect them to do over next year? Move to Funds with Lower Fees 28% 54% Aligned with Move to Funds Aligned with ValueValue Provided* Provided* 17% 49% Shift from Mutual Funds to Shift from Mutual Funds to Other Plan Options Other Plan Options 11% 44% Increase Plan Contributions 20% 27% Decrease Plan Contributions 11% 19% Have Done Expected Behavior—Within Next Year *For example, may be willing to pay higher fees if the fund offers higher returns or better service Source of chart data: OppenheimerFunds’ Post-Fee Disclosure Survey, September 201231
  32. 32. Conclusion Plan sponsors are generally more positive about fee disclosure than one might expect. But their knowledge of their obligations is questionable. They want—and need—help from their providers and advisors, providing a unique opportunity to engage with both sponsor and participants. The outcome of the disclosure regime does not need to be a “race to the bottom.” Eighty percent of plan sponsors can identify services that they recognize as valuable─and for which they are willing to pay a premium. Advisors and providers alike must seize the opportunity to differentiate themselves, clearly define their value and demonstrate their expertise and their worth.32
  33. 33. Disclosures Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses and if available, summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting our website at oppenheimerfunds.com or calling us at 1.800.CALL OPP (225.5677). Read prospectuses and if available, summary prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008 © 2012 OppenheimerFunds Distributor, Inc. All rights reserved. RPL0000.074.1112 November 201233

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