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) -- The

Securities and Exchange Commission

is investigating if several mutual funds misrepresented the value of risky municipal bonds, according to a story by

The Wall Street Journal


The SEC's investigation is part of a broader inquiry into the municipal market, according to article. The agency is concerned that investors in mutual funds may not know the true value of their investment because of the financial problems and stress in the market.

Mutual fund complexes with large municipal bond holdings include

Morgan Keegan & Co.




Franklin Templeton Investments


Heartland Advisors Inc.

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Invesco Van Kampen


Nuveen Investments


Goldman Sachs

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The mutual funds are defending themselves against these suits and many such as OppenheimerFunds have said that the SEC's investigation, "lacks merit," the Journal said.

--Written by Maria Woehr in New York.

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