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Tuesday, April 18,
2006
North Carolina's National College Savings Program Adds Vanguard
Investment Options, Upromise Rewards
Raleigh, N.C. - North Carolina's National College Savings Program, the
state of North Carolina sponsored 529 college saving plan, has expanded
its investment options to include funds from The Vanguard Group and has
chosen Upromise Investments, Inc. as the program's new recordkeeper and
administrative services agent.
Vanguard, a leader in high-value, low-cost investing, will add ten
diversified investment options to the N.C. 529 plan, all with an
all-inclusive low annual cost of 0.75% ($7.50 per $1,000 invested). The
Vanguard investments include three Age-based Options designed for
investors who prefer a simple, professionally managed college savings
program. The Vanguard Age-based Options automatically adjust an
investor's asset allocation to more conservative portfolios as a child
nears college. The three Age-based Options are complemented by seven
individual Vanguard Investment Portfolios, which provide investors with
the flexibility to construct and manage their own investment.
North Carolina has a multi-manager 529 plan featuring a broad range
of investment options from six investment managers. In addition to The
Vanguard Group, the State Treasurer manages the Dependable Income Fund,
MetLife provides the Protected Stock Fund guarantee, Wachovia Bank,
through its affiliate, Evergreen Investment Management Co., manages the
Balanced Fund, NCM Capital Management Group manages the Aggressive Stock
Fund, and J.W. Seligman & Co. manages a life-cycle fund, known as
CollegeHorizonFunds.
Upromise Investments will work with College Foundation, Inc., the
program administrator on behalf of the North Carolina State Education
Assistance Authority, to provide administrative services to participants
in the program. With the addition of Upromise Investments, program
participants will also benefit from the ability to add to their college
savings accounts through the optional Upromise rewards service. The
Upromise rewards service is free to join, and helps families save for
college when they make qualified purchases of participating products
from Upromise partners. The rewards can be transferred into the
participant's college savings account in North Carolina's program on a
periodic basis, subject to a minimum $25 transfer balance.
"Whether you are looking at performance, fees or flexibility,
North Carolina's National College Savings Program has been a great
option for college funding. Now, with the addition of the new index
funds and the Upromise rewards, the program is better than ever,"
said Steve Brooks, executive director of the North Carolina State
Education Assistance Authority, which established and maintains the
state's 529 plan.
"Vanguard is very pleased to provide its low-cost index funds
and age-based investment options to participants in North Carolina's
National College Savings Program," said John Heywood, principal,
The Vanguard Group. "The North Carolina State Education Assistance
Authority has built a college savings program that can meet the needs of
both sophisticated investors and those who prefer having the plan
implement their savings strategy. We look forward to helping its
participants meet their college savings goals."
"Upromise is excited to team up with the North Carolina State
Education Assistance Authority, College Foundation and Vanguard to help
bring new options for college savings to North Carolina residents,"
said Jim Fadule, president of Upromise Investments, Inc. "Through
the Upromise rewards service, North Carolina families can add to their
college savings on everyday purchases like groceries and gas. And with
Upromise's leading web-based 529 system, families will be able to manage
their 529 accounts online, and have their Upromise savings automatically
invested with North Carolina's National College Savings Program."
In total, Upromise has over 1,500 retail partner locations in North
Carolina, including restaurants, gas stations, and major grocery and
drug stores.
North Carolina's National College Savings Program lets anyone -
parents, grandparents, friends and relatives - invest for college on
behalf of a child. Participants do not need to be a North Carolina
resident and can use their 529 savings to pay for qualified higher
education expenses, including tuition, books, supplies, and room and
board at any college, university, community college, or accredited
technical training school in the United States.
As part of the recent enhancements to North Carolina's National
College Savings Program, new enrollees and current account holders will
enjoy additional online features, such as new account enrollment,
additional account management functionality, and electronic delivery of
account statements and transaction confirmations. For more information
or to enroll, visit www.CFNC.org/savings
or call toll-free 800-600-3453.
About The Vanguard Group
The Vanguard Group, headquartered in Valley Forge, Pa., is the nation's
second-largest mutual fund firm and a leading provider of
employer-sponsored retirement plan services. Vanguard is also a leader
in the 529 College Savings marketplace, offering investment options in
12 state 529 plans totaling $7.2 billion in assets. Vanguard manages
nearly $830 billion in U.S. mutual fund assets, including more than $245
billion in employer-sponsored retirement plans. Vanguard offers 129
funds to U.S. investors and more than 40 additional funds in foreign
markets.
About College Foundation, Inc.
In addition to administering North Carolina's National College Savings
Program, College Foundation, Inc. (CFI) is a partner with the North
Carolina State Education Assistance Authority and Pathways of North
Carolina in the free information service, College Foundation of North
Carolina (CFNC). CFI, a nonprofit corporation serving North Carolina
students and families since 1955, administers a portfolio of more than
$2 billion, including low-interest federal education loans, and the
state's college grant programs.
North Carolina's National College Savings Program is a program of the
State of North Carolina, established and maintained by the North
Carolina State Education Assistance Authority (Authority) as a qualified
tuition program under federal tax law, and administered by College
Foundation, Inc. (CFI) with administration and record keeping services
provided by Upromise Investments, Inc. and Upromise Investment Advisors,
LLC (collectively, Upromise). Investment options are made available
through NCM Capital Management Group, LLC; J. & W. Seligman &
Co. Incorporated; Wachovia Bank, N.A. through its affiliate, Evergreen
Investment Management Company, LLC; the State Treasurer of North
Carolina; Metropolitan Life Insurance Company (MetLife); and The
Vanguard Group, Inc.
The Investment Options are not guaranteed by the State of North
Carolina, the Authority, CFI, Upromise, any investment manager, or
MetLife, except to the extent that MetLife has made guarantees for the
Protected Stock Fund Investment Option under funding agreements with
CFI, acting as agent for the Authority. Participation in the Program
involves investment risk, which may include the loss of principal in the
case of investments in Investment Options other than the Protected Stock
Fund. Accounts are not bank deposits, are not insured by the FDIC or any
governmental unit or private person. Participants assume all
responsibility for federal and state tax consequences.
For more information about North Carolina's National College
Savings Program contact 800-600-3453 or visit www.CFNC.org/savings
for the Program Description and Enrollment Agreement. Before opening
an Account, or contributing funds to an existing Account, you should
carefully read and consider the Program Description, which includes
information on investment objectives, strategies, risks, charges,
expenses, and other important information. If you are not a North
Carolina taxpayer, consider before investing whether your or
beneficiary's home state offers any state tax or other benefits that are
only available for investment in such state's qualified tuition program.
You should consult your tax advisor.
Upromise Media and Partner Contacts:
If you are a Upromise member with questions regarding your account,
or if you would like information on joining Upromise, please contact
Upromise Customer Care at customercare@upromise.com
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