Intermediaries selling college savings plans get another choice today with the rollout of the offering from Pimco Funds Distributors. The Stamford, Connecticut-based firm is offering its CollegeAccess 529 nationally. The plan is sponsored by South Dakota.

The rollout comes as Tennessee has made the decision to end its prepaid tuition plan and instead only offer savings plan. State officials explained that the prepaid plan is proving costly as investment returns fail to keep pace with rises in tuition.

The plan differs from others in offering an investment allocation tool from Chicago-based Ibbotson Associates. The firm has long offered a 401(k) version of this guidance tool through Cigna and other 401(k) partners.

The firm is also touting the high contribution limit -- $305,000 -- compared with other state plans. "CollegeAccess 529 is at the forefront of the college savings plan industry," says PIMCO Funds Distributors Chairman, Stephen Treadway. "Its flexibility and stable of renowned asset managers help to set this program apart."

The Pimco plan offers 26 investment options. That lineup includes 5 age-based portfolios, 5 customized portfolios and 16 portfolios investing in single mutual funds.

Pimco is managing the core fixed income investments and American Funds, MFS Investment Management and Franklin Templeton Investments are managing the equity options.

Pimco is managing the core fixed income investments and American Funds, MFS Investment Management and Franklin Templeton Investments are managing the equity options.  

See the list of all the 2002 Most Influential People



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