Investing August 31, 2010

529 Plan Assets Down 4.9% in Q210

August 31, 2010 (PLANSPONSOR.com) – Total assets in 529 college savings plan fell to an estimated $117 billion as of the second quarter of 2010, reflecting a 4.9% decrease from the $123-billion asset totals a quarter earlier, according to the Financial Research Corporation (FRC).
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The FRC said 529 assets have increased by 19% over the last twelve months, lagging mutual fund and exchange-traded fund assets that were up 22% over the last year to $7.53 billion.

Quoting Morningstar data, FRC said the largest 529 plans by Q210 assets were:

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  • Virginia’s CollegeAmerica, distributed by American Funds, with $25 billion, down 6.9% over the quarter;
  • New York’s College Savings Program – Direct, distributed by Vanguard, with $8 billion, down 2.5% over the quarter;
  • Rhode Island’s CollegeBoundFund, distributed by Alliance Bernstein, with $6.8 billion, down 7.2% over the quarter;
  • New Hampshire’s UNIQUE College Investing Plan, distributed by Fidelity, with $5.7 billion, down 3.9% over the quarter; and
  • Maine’s NextGen College Investing Program – Advisor, distributed by Merrill Lynch, with $4.7 billion in assets, down 5.4% over the quarter.

FRC identified the top 529 Plan managers as

Name/ State Plan/ Q210 Total/ Q2 Change/ Market Share (Assets in $M)  

  • American Funds , VA,  $25,021, -6.9%, 21.3%;
  • Upromise Investments, 11 States, $22,556, -3.1%, 19.2%;
  • Fidelity;  AZ, CA, DE, MA, NH; $12,345, -4.6%, 10.5%;
  • AllianceBernstein, RI, $6,853, -7.2%, 5.8%; and
  • TIAA-CREF, 12 States, $6,414, -3.1%, 5.5%.

 More information atbout FRC is at www.frcnet.com.

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