Four firms have formed an alliance to forge the Arrive Education Savings Plan, a multi-manager 529 college savings plan. Those firms are as follows: Evergreen Investments, Prudential Financial, Schoolhouse Capital (a unit of State Street), and SunAmerica Mutual Funds.

The product features investment offerings from the four firms, with State Street supplying the funds for Schoolhouse Capital. According to the firms, each one of their number will supply funds to the Arrive platform; the fund selection is based on fundamental and quantitative risk and return investment strategies. Evergreen, Prudential, and SunAmerica will sell the offering through their distribution channels.

Schoolhouse Capital will be the program manager for the new service. Clients and advisors will be able to access an application for the program through all four firms' websites.

"The strength of this partnership goes well beyond its extremely powerful distribution channels and strong asset management capabilities," Ralph Constantino, ceo of Schoolhouse Capital, told the MutualFundWire.com.

"This is a powerful coalition of four firms. There is a great deal of synergy. We have one product, and all of the players' funds are in that product. Everyone benefits. We feel that this represents a huge leap in the marketplace. There is a growing recognition of the importance of the market. Adn what we have done is brought four firms together," he continued.

Schoolhouse Capital works with the State of New Mexico. "We are a peer group of one in terms of the 529 paradigm," the executive contended. "This is a rapidly evolving marketplace. This model will serve us well. We are able to work with others, and we are not captive to other distribution channels. We feel that all these factors combined make for a product that is truly effective."

Arrive will be available starting spring of this year. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE