Two hot 529 contracts off the table

Two of the 529 college savings plan industry’s most sought-after contracts up for renewal this year — from New Jersey and Iowa — have been taken off the table. The New Jersey Higher Education Student Assistant Authority has exercised an option to extend its contract to manage its Franklin Templeton 529 College Savings Plan and the NJBEST Educational Savings Trust with San Mateo, Calif.-based Franklin Templeton Investments for an additional three years, through March 2011. The plans have more than $2 billion in combined assets. The popularity of the plans “can be attributed to its special features including multiple investment choices, a scholarship opportunity and flexible investment options,” said Michael Angulo, the authority’s executive director, . Franklin Templeton is known in the 529 industry for having a strong following among financial planners and advisers around the country, despite costs which can range up to 1.46% of assets annually for age-based plans. In Des Monies, Iowa, the state treasurer’s office confirmed that it renewed its contract with Newton, Mass.-based Upromise Investments, Inc. and The Vanguard Group Inc. of Malvern, Pa. to manage its $2 billion College Savings Plan through 2017. For the full report, see the upcoming Jan. 14 issue of InvestmentNews.