As larger managers phase out their involvement in 529 plan management, there will be openings for other asset mangers to pursue mandates. The Wall Street Journal reports states are asking more of their 529 managers while at the same time demanding lower fees.

Paul Curley, FRC's director of college-savings research, says the states are insisting on a wider range of investment options, including fund offerings from different firms.

California closed a plan when Fidelity [see profile] decided to leave in March, and moved their investors to a plan managed by TIAA-CREF [see profile]. A manager change will take place at Wisconsin's three 529 plans after Wells Fargo decided to exit the plans.

A shift to ETFs in some plans is also shaking up who gets mandates. The Upromise 529 plan of Nevada moved from Vanguard [see profile] to

Edited by: HFD


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