Oppenheimer will close one of its funds later this month, according to a company filing, and not even existing investors will be able to contribute further cash.

One of Oppenheimer's specialty funds, the Oppenheimer Real Asset Fund is described in promotional materials as a "unique" chance for retail customers to gain exposure to commodity markets through investments in securities linked to these markets. A March 30 supplement to the company's December 2005 prospectus laid out terms by which the fund will be closed on April 28, 2006: current shareholders will not be allowed to invest any more money in the fund after that date, unless they are reinvesting dividends or distributions from the same fund.

Spokesperson Jeaneen Pisarra said changes in the market precipitated the move. "We found that the market for commodity-linked notes has become tight," she explained. To maintain dollar-for-dollar commodity exposure on current shares, managers decided to close the fund. "As time goes on, they hope the commodities market will change," she added, which may make it appropriate to re-open the fund for new and existing investors alike.

Pisarro said this is the first time the Real Asset Fund, which mirrors the GSCI index, has closed since its inception in 1997. At that time it was the only commodity-linked fund available to retail investors. Others, such as Pimco, have since brought out offerings that are similar but track different indices.  

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