Products April 17, 2012

SSgA launches Upromise 529 Plan

State Street Global Advisors (SSgA) launched SSgA Upromise 529 Plan.
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 The launch of SSgA Upromise 529 Plan also marks a new arrangement with the state of Nevada and Upromise Investments, Inc. 

The Plan is designed to lower costs and simplify investment choices. The SSgA Upromise 529 Plan features investment strategies that will be implemented using State Street’s SPDR exchange-traded funds (ETFs).

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“We’re excited to partner with Nevada and Upromise Investments, Inc. to offer SPDR ETF investments to American families looking to enhance their college savings strategies,” said James Ross, senior managing director and global head of SPDR Exchange-Traded Funds at State Street Global Advisors. “The SSgA Upromise 529 Plan combines the benefits of State Street’s institutional asset management with SPDR ETFs to offer advisers and investors innovative college savings solutions at significantly lower costs.”

Nevada’s direct-sold Upromise College Fund 529 Plan has been renamed the SSgA Upromise 529 Plan, and will continue to be direct-sold as well as available through fee-based registered investment  advisers. The plan includes new portfolio options managed by SSgA’s Investment Solutions Group, a team of investment professionals who develop customized solutions for specific needs. The group specializes in managing and advising investors on asset allocation, risk management, portfolio construction and plan implementation.  Upromise Investments, Inc. will remain as the program manager.

“Closing the college savings gap and securing a better future for the next generation requires a team effort,” said Nevada State Treasurer Kate Marshall.  “We’re excited to bring State Street’s sophisticated institutional investment management expertise and industry-leading SPDR ETFs to families saving for college through the SSgA Upromise 529 Plan.”

 

The SSgA Upromise 529 Plan’s investment solutions include: 

•  College date portfolios designed to make investing easy by selecting the year in which the beneficiary is expected to start college. The plan’s seven college date portfolios are tactically managed to make changes to each portfolio’s asset allocation, within an allowable range, in response to changing market conditions. Powered by multiple SPDR ETFs and an SSgA money market mutual fund, where applicable, each portfolio is managed to become more conservative as the expected college enrollment date nears.  

•  Risk-based portfolios are tailored to match an investors’ risk tolerance. The plan features three portfolios (conservative, moderate and aggressive) that employ a tactical asset allocation strategy designed to identify opportunities and manage risk. The funds underlying the risk-based portfolios include multiple SPDR ETFs and, where applicable, an SSgA money market mutual fund.  

•  Static portfolios (accessing individual SPDR ETFs) are for investors and fee-based advisers seeking the flexibility to build and maintain customized portfolios. Investors and advisers can choose from 15 SPDRETFs with precise, cost-effective access to an array of domestic and international asset classes.

•  Savings Portfolio includes a Federal Deposit Insurance Corporation (FDIC)-insured savings portfolio, which invests 100% of its assets in the Sallie Mae High-Yield Savings Account (HYSA).

For more information on the SSgA Upromise 529 Plan, visit www.ssga.upromise529.com.

 

Products April 17, 2012

Principal Enhances DB Termination Program

 The Principal Financial Group updated its defined benefit termination program and released a white paper.
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 The defined benefit termination program provides resources, education and actuarial consulting to help financial professionals and their clients walk through the key steps for shutting down a plan, including:

  • Development of a termination strategy by evaluating cost, funding strategies and the impact of asset allocation;
  • Effective execution of a Dynamic Asset Allocation Strategy;
  • Administration of the plan termination process; and
  • Final risk transfer—distribution of assets to settle obligations.

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Principal also released a white paper in two parts titled “Best Practices for Executing a Termination Strategy; Winding Down Your Hard-Frozen Defined Benefit Plan.” The first part offers best practices for developing a formalized defined benefit plan exit strategy. Part two, the newer paper in the series, offers best practices for building a termination strategy all the way to the final distribution of participant assets.

 

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