Waddell & Reed has jumped on the 529 Plan bandwagon. The firm expects to launch the InvestEd Plan in the fourth quarter of 2001. Thomas W. Butch, executive vice president and chief marketing officer, said that the program will offer one "funds of funds" as investments.

A spokesperson said that the fund-of-funds would specifically consist of three portfolios comprising various Waddell & Reed Advisors Funds. The three portfolios will be called Growth, Balanced and Income. Clients will be slotted into one of the portfolios depending on the age of the beneficiary.

The firm will market the program nationally through its network of financial advisors and the Legend Group.

The state of Arizona also selected Houston-based Securities Management & Research (SM&R) as service provider for the Arizona Family College Savings Program (AFCSP).

"Waddell & Reed is well-known for its quality mutual funds and its personal financial planning approach," said Verna L. Allen, executive director of the Arizona Commission for Postsecondary Education. "We are confident their participation will help to enrich the Arizona Family College Savings Program."  

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