Products January 3, 2004

Schoolhouse Program "Arrives" in New Mexico

March 25, 2002 (PLANSPONSOR.com) - Three leading financial services firms are teaming up to broaden the distribution channels for a new Section 529 college savings program from Schoolhouse Capital LLC.
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Prudential Financial, Evergreen Investment Services and SunAmerica Capital Services will lend their investment management expertise and distribution channels to the Arrive Education Savings Plan, a Section 529 college savings plan sponsored by The Education Trust Board of New Mexico.

Working 529

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Section 529 plans, named after the section of the Internal Revenue code under which they were created, offer an increasingly popular means to save for higher education, both individually and as a payroll-deduction benefit for workers.

Arrive is a tax-advantaged savings plan designed to finance tuition, books, room and board, and other qualified expenses at any accredited college or university, or professional or technical school in the nation.

Fund Choices

It features a multi-share-class pricing plan and is being distributed by Prudential Financial, Evergreen and SunAmerica through their respective distribution channels. Schoolhouse Capital LLC, a wholly-owned subsidiary of State Street Corporation will provide program management and administrative services.

Arrive offers a choice of two investment strategies:

  • The Age-Based Portfolio Option, which invests assets in one of five diversified portfolios based on the beneficiary’s age – designed to take into account the approximate number of years before a beneficiary starts college.
  • Custom Choice Portfolio Option, which allows advisors and clients to design an investment strategy by mixing and matching any combination of eight investment portfolios. In addition to the five portfolios in the age-based option, there are three single asset class choices; the Equity Funds Portfolio, the Fixed Income Portfolio and the Capital Preservation Portfolio.

Investment selections for current balances may be changed once per calendar year or when a qualified beneficiary change is made, while the investment of future contributions may be changed at any time. The minimum initial investment is $250, with a $100 minimum for subsequent investments.

Arrive’s investment options include products sub-advised by:

  • Jennison Associates LLC
  • Prudential Investments LLC
  • Bank of Ireland Asset Management Limited
  • Evergreen Investment Management Company
  • Marsico Capital Management, LLC
  • Pilgrim Baxter & Associates
  • SSgA Funds Management, Inc.
  • SunAmerica Asset Management Corp.

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