Columbia Management Expands College Savings Plan Investment Lineup
529 features more mutual fund options and lower expenses
BOSTON--(BUSINESS WIRE)-- Columbia Management today announced the launch of its new Future Scholar 529 College Savings Plan featuring more investment options, reduced fees and lower investment minimums.
"We're proud to offer more investment choice while significantly lowering overall expenses for families and financial advisors who are seeking a smart, disciplined and tax-efficient way to save for a child's college education," said Kevin Wasp, vice president of product management at Columbia Management.
More investment options:
The advisor-sold and direct plans added mutual funds from some of the most recognized investment managers in the industry, including: Columbia Management, Threadneedle Investments, The Vanguard Group, Dimensional Fund Advisors, MFS Investment Management, American Century Investments, BlackRock Fund Advisor's iShares, Nuveen Investments, Winslow Capital, Franklin Templeton Investments and J.P. Morgan Asset Management.
Overall plan expenses have dropped by 41 percent, placing the Future Scholar 529 College Savings Plan among the lowest cost direct-sold plans in the country, according to the most recent reporting from the Financial Research Corporation.
Lower investment minimums:
The direct-sold plan does not require an investment minimum. The advisor-sold plan minimum is now $100 to open account, and $50 for subsequent contributions.
The Future Scholar 529 College Savings Plan offers three investment options:
Age-based - corresponds with the child's age and the parents' risk tolerance over time
Target-allocation - seven target allocation portfolios ranging from conservative to aggressive
Single-fund - variety of mutual funds ranging from domestic and international equity funds to more-conservative fixed income funds
The principal in these investment options is not guaranteed at any time.
The Future Scholar 529 College Savings Program has $1.5 billion in assets and 93,000 accounts as of June 30, 2012. Columbia Management has been the investment manager and distributor of South Carolina's advisor-sold and direct-sold college saving plans since 2001. For more information, please visit futurescholar.com.
About Columbia Management:
Columbia Management is the eighth largest manager of long-term mutual fund assets with $331 billion under management as of June 30, 2012. Columbia Management is a subsidiary of Ameriprise Financial, Inc. (NYS: AMP) . For more information please visit columbiamangement.com.
Please consider the investment objectives, risks, charges and expenses carefully before investing. Contact your financial advisor or visit columbiamanagement.com for a Program Description, which contains this and other important information about the Future Scholar 529 College Savings Plan. Read it carefully before investing. You should also consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
Participation in the Direct Plan is limited to a select group of investors, as described in the Program Description. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors. The Advisor Plan offers additional investment choices, but the fees and expenses are higher. Please refer to the Program Description for more information.
Columbia Management Investment Distributors, Inc., member FINRA, is the distributor and underwriter for 529 plans available through Columbia Management. The Office of State Treasurer of South Carolina (the State Treasurer) administers the Program and has selected Columbia Management Investment Advisers, LLC and Columbia Management Investment Distributors, Inc. (Columbia Management) as Program Manager. Columbia Management and its affiliates are responsible for providing certain administrative, recordkeeping and investment services, and for the marketing of the Program. Columbia Management is not affiliated with the State Treasurer.
Tax treatment varies by state. For residents of states other than South Carolina: Favorable state tax treatment for investing in a Section 529 college savings plan may be limited to investments in a Section 529 college savings plan offered by your home state. You should consult with your tax advisor about any state or local taxes before making any tax-related decisions. The tax information set forth in this presentation is general in nature and does not constitute tax advice on the part of Columbia Management Investment Distributors, Inc., its affiliates or the South Carolina Office of State Treasurer.
© 2012 Columbia Management Investment Advisers, LLC. All rights reserved.
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