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OR Oppenheimer Funds 529 |
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State Provider: Oregon; Net Assets ($mil):
$125.0 as of
10-31-09 |
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Investors should avoid this broker-sold plan. Oregon's OppenheimerFunds 529 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 two of the three troubled fixed-income funds and added a fixed-income index fund, but we're still disappointed that Oppenheimer Strategic Income is still in the mix. We're also concerned about what may happen to this plan in 2010. Oppenheimer's contract with the state is up at the end of 2009, and it's tough to say what will happen next; its reputation has been tarnished, and there's no question its fixed-income products caused the state a considerable headache. The plan does have a few good points, such as state income tax deductions (up to $4,000 of contributions can be deducted each year) for in-staters, reasonable fees, and a respectable lineup of Oppenheimer equity funds, but these definitely don't outweigh the shortcomings of this plan. (Information as of 04/06/2009) |
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| Availability: Sales Channel |
Resident: Broker
Non-Resident: Broker
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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 |
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| US Stock
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Bond |
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| Total International Funds: 18 |
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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 |
| Other:
5.75% (front-load) |
| A:
5.75% (front-load) |
| B:
5.75% (front-load) |
| B:
5% (deferred-load) |
| C:
1% (deferred-load) |
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| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
25 |
25 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
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