Vanguard Group cuts costs for Nevada college savings plan

The Vanguard Group Inc. today announced expense cuts across the lineup of investment options in The Vanguard 529 College Savings Plan, sponsored by the state of Nevada. Expenses for the plan’s 19 investment options will decline from its current range of 0.65% to 0.7% to a range of 0.44% to 0.66%, the Malvern, Pa.-based fund firm reported. Among those reductions, the all-in costs specifically for the plan’s three age-based investment options will decline to 0.44%, from 0.5%, the firm reported. The reductions go into effect June 1. “Vanguard’s client-owned structure, long-term asset growth in 529 plans and operating efficiencies generated from improvements in technology and client service by our partner Upromise Investments [Inc., a division of Upromise Inc. of Newton, Mass.] have enabled us to share savings with plan participants in the form of lower expenses,” Alba Martinez, principal of Vanguard’s Education Markets Group, said in a statement. The fund had nearly $3 billion in assets as of March 31. This marks the fourth time in five years that the firm has reduced costs on some of the investment options in this plan, the firm said. In October 2004, expenses on six portfolios dropped by as much as 16%. In June 2005, eight portfolios had expenses reduced by as much as 8%, and in November 2006, the plan’s expenses fell across the entire lineup by as much as 20%. In addition to Nevada, Vanguard manages 529 plans for six states, and its investments are part of 529 plans in an additional 18 states.