Oregon Public Broadcasting

The state of Oregon has expanded its investigation into the Oregon 529 College Savings Plans. Kristian Foden-Vencil reports.

Last month the state treasurer and the Oregon attorney general started looking into the Oppenheimer Core Bond Fund after it lost more than a third of its value.

It was supposed to have been a stable, conservative investment.

Now, the state wants to look at another Oppenheimer product – the Limited Term Government Bond Fund.

Treasury spokesman, James Sinks, says that fund hasn’t lost as much money but it has the same managers and is built on similar financial principles.

James Sinks: “We do take this very seriously and so we’re committing some serious resources to find out what happened.”

The state has issued subpoenas to find out if Oppenheimer violated Oregon’s Unlawful Trade Practices Act.

Oppenheimer is cooperating with the inquiry but says its funds were properly identified as "low risk" – considering historic performance.