Five states are examining the underlying investment offerings in OppenheimerFunds’ 529 plan after two of the funds lost substantial amounts over the past year: the Oppenheimer Champion Income Fund is down 79%, and the Oppenheimer Core Bond Fund is down 41%.

Officials in Illinois, Maine, New Mexico, Oregon and Texas are jointly conducting the investigation into whether OppenheimerFunds violated its fiduciary duty.

The firm told Bloomberg, however, that “it acted appropriately in managing the funds. Unprecedented market volatility and lack of liquidity in the second half of 2008 led to poor performance.”

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