my529 to Launch Stable Value Fund, Cut Administrative Asset Fee
FOR IMMEDIATE RELEASE:
Contact: Media Relations, 801.321.7161
August 1, 2018
Low-Risk Fund Focuses on Principal Preservation and Steady Returns to College Savers
(Salt Lake City) my529 announced today that it is adding the PIMCO Interest Income Fund, a stable value fund, as an underlying investment to all predetermined Age-Based investment options. The fund also will be made available as an option to owners of Customized Age-Based and Customized Static accounts who design their own investment allocations. my529 will introduce the PIMCO Interest Income Fund on August 17, 2018.
Separately, my529 is lowering the annual Administrative Asset Fee on its predetermined Age-Based and Customized Age-Based and Customized Static investment options, effective immediately.
The PIMCO Interest Income Fund focuses on preserving principal and providing liquidity while generating a steady return to families who are saving for higher education. The fund is invested in high-quality government and corporate bonds with short- and intermediate-term maturity dates.
The fund is run by Pacific Investment Management Company (PIMCO), a Newport Beach, California-based investment firm with $1.71 trillion in assets under management as of June 30, 2018.
In another development, the Administrative Asset Fee charged to predetermined Age-Based accounts has been reduced to 0.14 percent, or $1.40 per $1,000 invested, from 0.16 percent, or $1.60 per $1,000 invested.
The cut follows reductions to the Administrative Asset Fee made in 2017.
Additionally, the Administrative Asset Fee charged to Customized Age-Based and Customized Static accounts has been reduced to 0.19 percent, or $1.90 per $1,000 invested, from 0.20 percent, or $2.00 per $1,000 invested.
my529 fees are some of the most competitive in the 529 educational savings plan marketplace.
“We are committed to making the dream of college possible,” said Lynne Ward, executive director of my529. “Adding the PIMCO Interest Income Fund and cutting the Administrative Asset Fee underscores our mission to provide a reliable and affordable plan for families saving for higher education.”
my529, Utah’s official nonprofit 529 college savings plan, is highly ranked by Morningstar Inc., and recognized by Kiplinger’s Personal Finance magazine, Money magazine, CBS MoneyWatch.com, and consumer expert Clark Howard for its low fees and industry innovations such as its customized allocation investment options.
Accounts are free to open, and my529 requires no minimum deposit or account balance. my529’s user-friendly website, my529.org, makes it easy to open, manage, and contribute to an account online.
To learn more about the my529, visit my529.org, call my529 toll-free at 800.418.2551, or send an email to email@example.com.
Important Legal Notice
Investing is an important decision. Read the Program Description in its entirety for more information and consider all investment objectives, risks, charges, and expenses before investing. Call 800.418.2551 for a copy of the Program Description or visit my529.org.
Investments in my529 are not insured or guaranteed by my529, the Utah State Board of Regents, the Utah Higher Education Assistance Authority or any other state or federal agency. Your investment could lose value. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-insured accounts. Please read the Program Description to learn about the FDIC-insured accounts.
The state in which you or your beneficiary pays taxes or lives may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds, and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.
my529 does not provide legal, financial, investment, or tax advice, and the information provided in this document does not contain legal, financial, investment, or tax advice and cannot be construed as such or relied upon for those purposes. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.
A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Morningstar does not represent its analyst ratings to be guarantees. Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.