OppenheimerFunds Takes Heat For College Fund Losses
Just last month we discussed problems arising with a form of investment called the 529 Plan, which claimed to secure the costs of a student's future college tuition through a combination of savings and dividends. As it turns out, the floundering stock market has led to many of these plans coming up woefully short and leaving parents in the lurch as more and more students continue to reach college age. Now OppenheimerFunds (a subsidiary of Massachusetts Mutual Life Insurance) is under fire from attorney generals in five different states for its part in some of these massive savings-account losses.
Officials in Illinois, Maine, New Mexico, Oregon and Texas began last month to jointly explore whether OppenheimerFunds violated its fiduciary duty to investors in the so-called 529 plans, said Scott Burnham, a spokesman for Illinois State Treasurer Alexi Giannoulias. Investors lost $85 million last year in Illinois-sponsored accounts run by the firm, whose managers bought mortgage-linked securities before prices plunged along with the residential real estate market.
Mortgatge-linked securities are notoriously fickle, and OppenheimerFunds' managers' failed to let parents in on some complex investment plans before it was too late. According to their spokesperson, however, their actions were fair and justified.
Jeaneen Pisarra, a spokeswoman for New York-based OppenheimerFunds, declined to comment on the states' investigation or possible litigation.
"OppenheimerFunds maintains that it acted appropriately in managing the funds for which it serves as investment adviser," she said. "Unprecedented market volatility and lack of liquidity in the second half of 2008 led to poor performance of the Core Bond Fund."
Now that poor performance is reportedly "locked in," meaning that the event horizon has passed and the damage is too great to be easily recouped. State officials have yet to determine to what extent OppenheimerFunds is responsible for the losses, and how much money in total they may be responsible for. Nevertheless, a Seattle law firm is gearing up to engage in a group or class-action lawsuit against the investment company on behalf of the investors, now saddled with heavy college costs -- the costs they thought they'd done all the right things to protect against.
An accredited online university, Capella University offers bachelor’s, master’s/MBA, doctoral, and certificate programs designed to take you to the forefront of your profession.
- MS - Addiction Studies
- MS - School Counseling (CACREP-accredited)
- MSN - RN-to-MSN Diabetes Nursing (CCNE-accredited) More...
A Rutgers business education prepares students for success – not just in their chosen fields but also in their lives.
- Online MS in Supply Chain Management
- Master of Governmental Accounting (Online)
Hofstra University is a private institution whose primary mission is to provide a quality education to its students in an environment that encourages, nurtures and supports learning through the free and open exchange of ideas for the betterment of humankind.
- Online Master of Arts in Health Law and Policy
- Online Master of Laws in Health Law and Policy
Welcome to Argosy University
Argosy University offers doctoral, master's, and bachelor's degree programs to students through its eight colleges: College of Behavioral Sciences, Graduate School of Business and Management, College of Education, College of Health Sciences, College of Arts and Sciences, College of Creative Arts and Design, College of Clinical Psychology and Western State College of Law at Argosy University as well as certificate programs in many areas.
- Psychology (BA) (Online)
- Business Administration - Accounting (BS) (Online)
- Business Administration - Healthcare Management (BS) (Online) More...
- Associate of Arts in Business - Business Management
- Bachelor of Arts in Business - Organizational Leadership
- Master of Arts in Ministry - Practical Theology More...
For over 35 years, Keiser University has maintained a practical, hands-on approach to career education to help our students achieve their personal and professional goals.
- PhD in Industrial and Organizational Psychology
- Master of Arts in Criminal Justice
- Master of Business Administration, MBA - International Business More...
- Veterinary Technology Alternate Route - Certificate
- Respiratory Therapy
- Veterinary Technology - Associates More...
Grow Your Career with the University of Saint Mary
- MBA Enterprise Risk Management Concentration
- MBA Marketing and Advertising Concentration
- MSN: Nursing Education Specialization More...
The MSW@USC is the first top-ranked MSW program offered nationally. Many online programs are limited to certain geographic areas or the availability of courses, making it necessary to travel to campus. Our program can be completed from virtually anywhere without the need to relocate to Southern California.
- Doctor of Social Work
- Master of Social Work