The program – Learning Quest – will offer four new investment options, all of which are invested in indices managed by The Vanguard Group, according to Kansas State Treasurer Lynn Jenkins. The new options are in addition to the current options within the program – Money Market and 100% Equity – and the 22 age/risk based blended portfolio options.
American Century Investments, which is the program manager for all program options, will continue to manage all of the Learning Quest portfolios and service all accounts, according to a press release from the company.
The new portfolios include:
- 500 Index Portfolio, which invests in the Vanguard 500 Index Fund.
- Total Growth Index Portfolio, which is an all-stock portfolio customized for Learning Quest that seeks investment results that parallel a weighted mix of the performance of the Dow Jones Wilshire 5000 Total Market Index and the Total International Composite Index.
- Balanced Index Portfolio, which invests in the Vanguard Balanced Index Fund, which seeks investment results that parallel a 60% to 40% weighted mix of the performance of the Dow Jones Wilshire 5000 Total Market Index and the Lehman Brothers Aggregate Bond Index, respectively.
- Total Bond Market Index Portfolio, which invests in the Vanguard Total Bond Market Index Fund, which seeks investment results that parallel the performance of the Lehman Brothers Aggregate Bond Index.
There are no income limits for those investing, and the contribution maximum is $235,000 per beneficiary for Learning Quest and the other Kansas 529 products, according to the news release. Kansas taxpayers can receive a state adjusted gross income deduction of up to $3,000 per child for 2005 ($6,000 if married and filing jointly) on contributions to the program and other Kansas 529 products.
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