Nebraska State Treasurer Shane Osborn announced that effective Nov. 1, 2008, OFI Private Investments (OFIPI), a subsidiary of OppenheimerFunds Inc., will become the new investment manager and service provider for the State Farm College Savings Plan, previously managed by Invesco Aim Capitol Management, Inc. and Invesco Aim Distributors, Inc. OFIPI will act as the investment manager for the State Farm College Savings Plan, which has $120 million assets under management.
“Not long ago, I made a promise to the thousands of Nebraska parents, grandparents and guardians who had invested their hard-earned dollars into our college savings plan that I would do everything in my power to make our program the best in the country,” Osborn said. “To make good on that promise, I knew we had to secure the management services of a financial institution that not only had a long and distinguished track record of investment excellence, but also possessed a reputation for the highest level of ethical business practices. That’s why I was aggressive in pursuing OFIPI to become the new investment manager of The State Farm College Savings Plan.”
“We are pleased to maintain our long standing relationship with the state of Nebraska, which has served our shareholders well over the last five years,” said Colleen Van Dyke, vice president of Securities Products at State Farm. “We take great care when choosing our partners and are truly excited by the new relationship with Oppenheimer.”
Under the new State Farm Plan, there will be five Enrollment-based Portfolios, tailored to the beneficiary’s college enrollment date as well as four Static Portfolios, designed to match an investor’s risk profile. Additionally, OFIPI has reduced the total expense ratio of plan portfolios by an average of 47 basis points, eliminated the annual fee, and will save the average account holder 53.6 percent in total fees.
“Our objective is to offer investors a low-cost college savings alternative with a diverse number of investment choices,” said Raynor. “We remain dedicated to helping investors reach their college savings goals.”
State Farm’s Van Dyke added: “We are now in a great position to offer a more competitive product that will help our customers plan for their children’s future.”
The State Farm College Savings Plan is sponsored by the state of Nebraska and administered by the Nebraska State Treasurer serving as the plan trustee. The plan is established in cooperation with State Farm VP Management Corp. (“State Farm”), the State of Nebraska, and OFI Private Investments Inc. (OFIPI), a subsidiary of Oppenheimer Funds, Inc., pursuant to which State Farm offers classes of shares in a series of accounts within the Nebraska Educational Savings Plan Trust (the “Trust” and plan issuer) that are distributed by OppenheimerFunds Distributor, Inc. (OFDI and together with OFIPI, “Oppenheimer”). The Trust offers other accounts that are not affiliated with the plan.
The Nebraska State Treasurer serves as trustee of the plan; OFIPI serves as the investment manager, with the oversight of the Nebraska Investment Council; and servicing agent: OFDI serves as the distributor: Union Bank & Trust (“Union Bank”) serves as the program manager.
State Farm does not provide investment management services for the plan and the accounts in the plan are not insured or guaranteed by State Farm, Oppenheimer, Union Bank and Trust Company, the Trust, the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, any of their respective affiliates, directors, officers or agents or any other entity.
This plan is intended to operate as a qualified tuition program, pursuant to Section 529 of the U.S. Internal Revenue Code. The State Farm College Savings Plan is one of four college savings plans sponsored by the State of Nebraska also including, the College Savings Plan of Nebraska, the TD Ameritrade 529 College Savings Plan, and the AIM Savings Plan.
For more information contact the Nebraska State Treasurer’s office or State Farm at 309-766-0307.
Source: State Farm Nationwide
Topics Education Universities
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