Inside Bright Start fund's flameout

[Geee]

Chicago Tribune:

As the economy began its meltdown in 2008, Illinois Treasurer Alexi Giannoulias was faced with a dilemma over the state's college savings plan for families.

Giannoulias had made revitalizing the underperforming program a key component in his successful 2006 campaign, and the investment firm he selected to turn around Bright Start was making positive changes. But the fund manager also made a decision to heavily invest in volatile securities tied to the housing market.

Documents and e-mails recently obtained by the Tribune under the state's open records law show the rookie treasurer and his staff were concerned early on about the aggressive move by OppenheimerFunds Inc. in what was supposed to be a more conservative fund in the Bright Start program.

But at each turn Giannoulias stuck with the firm's strategy, even as the housing market soured and losses accelerated.

[Stella]

Thank goodness we hadn't put any money for our grandchildren in that fund. Alexi wasn't responsible for the economy but he was an (I can't say the word ) for investing in high risk funds after the market started crashing. Kirk's campaign was very smart. They ran ads about Bright Start during every college football game with an Illinois presence on Saturday. A lot of middle class parents and grandparents lost almost all of their college funds.