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OR College Savings Plan |
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State Provider: Oregon; Net Assets ($mil):
$462.0 as of
10-31-09 |
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Oregon's College Savings Plan is undergoing changes, and we'd steer clear for now. This direct-sold plan, which is under contract with Oppenheimer until the end of 2009, had a good deal of exposure to some of the bond world's worst offenders in 2008. In particular, the plan had assets in Oppenheimer Core Bond, a fund that sustained steep losses in 2008 due to management's big bets on illiquid securities. The plan also had exposure to Oppenheimer Limited-Term Government (run by the same management team), which didn't fall as hard in absolute terms but significantly lagged peers in 2008. As a result, the plan's age-based "1-3 Years to College" portfolio (which also plays double duty as the fund's static "Conservative Portfolio") lost nearly a quarter of its assets in 2008. Unfortunately, the state moved at a snail's pace to correct the issue, even though problems began to surface at Oppenheimer's domestic fixed-income products in November 2008. Up until late March 2009--long after it became painfully clear these investments were deeply distressed--money was not only still invested in these products but new shareholder money was still funneled to these troubled funds. Finally, on March 30, 2009, the state removed the two aforementioned Oppenheimer fixed-income products and replaced them with two fixed-income index funds. Investors should keep in mind that Oppenheimer's contract with the state is up at the end of 2009, and it's tough to say what will happen next. Oppenheimer's reputation has been tarnished, and there's no question their fixed-income products caused the state a considerable headache. Granted, the overall investment lineup today ranges from respectable (on the Oppenheimer equity side) to solid (on the Vanguard index side), and plan fees are reasonable; but given the circumstances, we think investors should search out more stable options. (Information as of 04/06/2009) |
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| Availability: Sales Channel |
Resident: Both
Non-Resident: Both
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| Annual State Tax Deduction |
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Up to $2,085 (S),
4,170 (J)
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| Max Investment/Beneficiary |
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$310,000 |
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(includes appreciation)
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| Mos. to Qualified Withdrawal |
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Public, Private & International
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Age-Based Portfolios
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| Static Portfolios and Self-Directed Funds |
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| US Stock
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Bond |
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| Total International Funds: 7 |
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| Underlying Funds’ Ratings |
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| Overall Morningstar Rating |
# Equity
Funds |
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# Bond
Funds |
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| Ratings as of
10-31-09 |
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| Range |
0.15 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
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| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
25 |
25 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
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