The Markets August 24, 2011

South Dakota and Kansas Have Best 529 Plans

Savingforcollege.com released its 529 Plan Composite Performance Rankings for the second quarter.  
Reported by

Kansas’ Schwab 529 College Savings Plan was first among all direct-sold 529 plans in three- and five-year investment performance as of June 30, 2011, but did not place among the top 10 plans for one-year performance.

South Dakota’s CollegeAccess 529 plan, available on a direct-sold basis only to residents of South Dakota, placed first in the one-year performance category.

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“The results suggest that 529 plans using actively-managed funds can compete effectively with those programs relying exclusively on lower-cost index funds,” said Joseph Hurley, founder of Savingforcollege.com. Many states have switched to index funds in recent years in their efforts to shave expenses for plan participants; however, the 529 plans cited above have a substantial portion of their assets invested in actively-managed funds.

Hurley cautions that past performance does not guarantee future returns, and that a plan currently ranking high will not necessarily outperform its peers in the future.

The full reports showing one-year and three-year rankings for all direct-sold 529 plans can be viewed here.

Savingforcollege.com also produces rankings for adviser-sold 529 plans along with all underlying investment data, available through a subscription. Rankings are updated each quarter.

One-year Composite Performance Rankings (48 plans ranked) 

1. South Dakota: CollegeAccess 529 (Multiple fund families)

2. Alaska: T. Rowe Price College Savings Plan (T. Rowe Price funds)

3. Maine: NextGen College Investing Plan — Client Direct Series (Multiple fund families)

4. Alaska: University of Alaska College Savings Plan (T. Rowe Price funds)

5. Maryland: College Savings Plans of Maryland — College Investment Plan (T. Rowe Price funds)

6. Vermont: Vermont Higher Education Investment Plan (TIAA-CREF funds)

7. Utah: Utah Educational Savings Plan (UESP) Trust (Vanguard mutual funds)

8. Oklahoma: Oklahoma College Savings Plan (TIAA-CREF funds)

9. Michigan: Michigan Education Savings Program (TIAA-CREF funds)

10. Rhode Island CollegeBoundfund (Direct-sold, Alternative RI) (AllianceBernstein mutual funds)

Three-year Composite Performance Rankings (45 plans ranked) 

1. Kansas: Schwab 529 College Savings Plan (Multiple fund families)

2. Wisconsin: EdVest (Direct-sold) (Mostly Wells Fargo funds)

3. Maryland: College Savings Plans of Maryland -- College Investment Plan (T. Rowe Price funds)

4. Michigan: Michigan Education Savings Program (TIAA-CREF funds)

5. Alaska: University of Alaska College Savings Plan (T. Rowe Price funds)

6. New Jersey: NJBEST 529 College Savings Plan (Franklin Templeton funds)

7. Alaska: T. Rowe Price College Savings Plan (T. Rowe Price funds)

8. New York: New York's 529 College Savings Program -- Direct Plan (Vanguard funds)

9. West Virginia: SMART529 Select (Dimensional Funds)

10. Utah: Utah Educational Savings Plan (UESP) Trust (Vanguard mutual funds)

Five-year Composite Performance Rankings (36 plans ranked) 

1. Kansas: Schwab 529 College Savings Plan (Multiple fund families)

2. Michigan: Michigan Education Savings Program (TIAA-CREF funds)

3. Alaska: University of Alaska College Savings Plan (T. Rowe Price funds)

4. Maryland: College Savings Plans of Maryland -- College Investment Plan (T. Rowe Price funds)

5. Nevada: The Vanguard 529 Savings Plan    (USAA mutual funds)

6. Wisconsin: EdVest (Direct-sold) (Multiple fund families)

7. Alaska: T. Rowe Price College Savings Plan (T. Rowe Price funds)

8. Utah: Utah Educational Savings Plan (UESP) Trust (Vanguard mutual funds)

9. Virginia: Virginia Education Savings Trust (VEST) (Multiple fund families)

10. Ohio: Ohio CollegeAdvantage 529 Savings Plan (Vanguard mutual funds)

Products August 24, 2011

Eagle Asset Management Launches R-6 Share Class

Eagle Asset Management has released a “no revenue share” R-6 share class for use by retirement plan sponsors and administrators.
Reported by

This addition to the firm’s other retirement share class offerings increases Eagle’s clients’ ability to choose share class options based on their retirement plan size, as well as other variables that affect plans and providers, according to the announcement.

Richard Rossi, Eagle’s President and Co-chief Operating Officer, said that the development of the R-6 price structure for the firm’s flagship funds followed interest from platform and consultant relationships, as well as several Registered Investment Adviser client groups.

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The new share class, Eagle’s lowest cost share, is available for five of Eagle’s funds:

  • Eagle Small Cap Growth Fund (HSRUX)
  • Eagle Small Cap Core Value Fund (EGEUX)
  • Eagle Mid Cap Growth Fund (HRAUX)
  • Eagle Growth & Income Fund (HIGUX)
  • Eagle Mid Cap Stock Fund (HMRUX)

“The lower expenses and different cost structure of the R-6 share class make it an optimal fit for plans that are less dependent on revenue sharing,” said Rossi.

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