Oppenheimer 60th Anniversary - 63

commitment to its corporate values. The enhanced
program offers the winners career development
resources and education, greater visibility within the
Company, and increased interaction with senior
management along with a generous cash award.
The emphasis OppenheimerFunds places on its
values was never more apparent to Jim Ruff, former
president of OppenheimerFunds Distributor, Inc.
and one of the value systems greatest advocates, than
on the evening he was "roasted" at the Company
holiday party just prior to his retirement. As Ruff
recalled, there came a point in the evening when
Murphy rose to announce that Ruff would receive a
special lifetime Spiro Award, including an annual gift
to the Jim and Nancy Ruff scholarship fund. "They
had never done that for anybody in the history of
the Company," Ruff said. "It was pretty gratifying."

The integrity and commitment of the Company's
employees has sustained
the organization through a
tumultuous decade.

MORE CHALLENGES
TO OVERCOME
In the same way that the Company's adherence to
its core values was vital to success in the years that
followed the hardships of September 11, 2001, and
the industry and political turmoil early in the
decade, it would prove to be essential once again in
the face of the financial crises that beset the economy in the final years of the decade.
The subprime mortgage crisis came to a head in
2008, and major financial company failures caused
further economic damage. Facing a potential
meltdown of the credit markets, the federal government was forced to intervene as the economy
slipped into a recession that many economists
predicted would be long and deep.
Steep stock market losses - punctuated by sharp
swings in stock prices around the world - created a
challenging environment for all mutual fund
companies. The losses hit virtually all sectors of the
market, shaking the confidence of average investors
who slowed the flow of new money into mutual
funds while increasing withdrawals. At the same
time, fund balances were shrinking because of the
decreasing asset values.

REFOCUSING ON
FUNDAMENTALS
Among asset management companies, OppenheimerFunds was certainly not alone in feeling the

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impact of the credit crisis and the economic
recession on its business operations. As revenues
declined, the Company was forced to initiate
belt-tightening measures. But thanks to the diversification and growth strategy initiated early in the
decade, the Company had built a strong financial
foundation from which to weather the downturn.
In addition, the Company assessed the new
realities created by unprecedented market conditions and adjusted its strategies to address them.
Murphy announced that William F. Glavin, Jr.,
co-chief operating officer at MassMutual, would
become chief executive officer of OppenheimerFunds at the start of 2009 to lead the effort. Murphy, meanwhile, would continue as chairman until
the end of the year. (See previous page.)
With a reputation for effectively managing
change in large organizations, Glavin set in motion
a plan to renew the Company's commitment to
sustained investment excellence, refocus on its
core strength of active mutual fund management,
and reinforce the basic values that supported

OppenheimerFunds' success throughout its history.
The Company's employees form the bedrock of
integrity and commitment to customer service that
has sustained the organization through yet another
unprecedented challenge. As they celebrated their
Company's 50th anniversary, OppenheimerFunds
employees knew from experience that turbulence is
a fact of life in the asset management industry and
that companies that continue to succeed will be
those that remain true to their culture.
A culture of integrity - of investing the right
way for clients - combined with diversified product
offerings and a solid infrastructure formed the
foundation of OppenheimerFunds' success for
50 years and are the basis on which it will continue
to build its future. n
The foundation of OppenheimerFunds' past and future success is
a steadfast commitment to its fundamental Principles of Investing.
Every day, in every transaction, adherence to these principles
continues to validate the Company's tagline: The Right Way to Invest.

Due to a collapse in the housing and credit markets, the
U.S. stock market experiences significant losses, touching off
a worldwide economic recession.

William (Bill) Glavin, Jr. is appointed chief executive officer
of OppenheimerFunds, Inc., on January 1.

2008

2009

2001-2009 Crisis and Transformation *

Oppenheimer 60th Anniversary

Table of Contents for the Digital Edition of Oppenheimer 60th Anniversary