my529 revamps Static investment options to increase range of choices
Effective March 4, my529 made some robust enhancements to the Static investment option lineup that may add value for your clients. The changes offer a broader range of investment choices, enhance diversification, and reduce investment volatility over time.
Take a look at the updated portfolios and allocations.
We expanded the range of our investment options by adding four new portfolios.
- 80/20 Aggressive-A mix of 80% equity and 20% fixed income and principal preservation.
- 60/40 Balanced-A mix of 60% equity and 40% fixed income and principal preservation.
- 40/60 Moderate-A mix of 40% equity and 60% fixed income and principal preservation.
- Stable Value-The PIMCO Interest Income Fund, a principal preservation stable value offering, is an underlying fund within the four Age-Based portfolios, and within the Customized investment options. Now, account owners can choose an investment option based solely on this fund when they select the Stable Value investment option.
my529 changed the names of some of the continuing Static options. See the new names above.
We discontinued the 70% Equity/30% Fixed Income investment option.
To avoid redundancy with the new investment options, my529 no longer offers the 70% Equity/30% Fixed Income investment option.
Investments in the 70% Equity/30% Fixed Income option were moved to the 60/40 Balanced option. If account owners were invested in the 70% Equity/30% Fixed Income option but do not wish to invest in the 60/40 Balanced option, they can initiate an option change.
my529 revised the underlying fund allocations in many of the existing investment options.
See the allocation table for details.
The Static lineup changes will not count as an investment option change unless the account owner makes a new selection.
However, it will be considered an investment option change if an account owner chooses an investment option other than the one they have been moved to during the Static lineup changes.
For example, those invested in the 70% Equity/30% Fixed Income option were moved into the 60/40 Balanced option. If the account owner then selects an investment option other than the 60/40 Balanced option, that will count as one of two allowable investment option changes in 2021.
Asset-based fees have been adjusted for some options.
The enhancements to the Static options altered total annual asset-based fees for some investment options. Three options experienced a fee decrease, three options increased, and one option remained unchanged. See the updated fee chart for details.
As always, if you have any questions, please reach out to the my529 Professional Services Team at 888.529.1886 or email email@example.com.