J.P. Morgan to manage, distribute N.Y.'s adviser-sold 529

JUL 20, 2011
J.P. Morgan Asset Management will become the investment manager for New York's $1.9 billion adviser-sold college savings plan, replacing Columbia Management Group LLC. The launch date has not yet been determined. The unit of JPMorgan Chase & Co. won a seven-year deal as investment manager and distributor of the Section 529 plan after a proposal process that took about two years, according to George Gatch, chief executive of J.P. Morgan Investment Management Americas. In addition, Upromise Investments Inc. was awarded a seven-year deal to continue as program manager to the adviser-sold plan, which has about 125,000 accounts. J.P. Morgan said that it will make a variety of investment options available to savers, including actively managed age-based options, asset allocation and single-fund portfolios. Mutual funds and exchange-traded funds from J.P. Morgan and others will be offered, Mr. Gatch said, though he declined to name the other vendors until details of the contract are completed. “We're thrilled to have the opportunity to help New Yorkers save for a college education,” he said. “Our relationship with the adviser community, our expertise and broad range of investment products, and our presence in and commitment to New York, makes us uniquely positioned to help New Yorkers save for their children's college education.” New contracts also were awarded for the much larger, 550,000-account Section 529 plan that is sold directly to savers. Upromise will continue as program manager for that $10.2 billion plan and The Vanguard Group Inc. will continue as its investment manager, said Vanessa Lockel, a spokeswoman for New York state Comptroller Thomas P. DiNapoli. Columbia Management spokes-man Ryan Lund declined to comment about the state's decision. E-mail Liz Skinner at [email protected].

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