The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Brouhaha Over Keystone 529 Not Rated 3.0 Email Routing List Email & Route  Print Print
Tuesday, January 08, 2002

Brouhaha Over Keystone 529

Reported by Tony Pennino

Incumbency did not guarantee victory in Pennsylvania. The state has selected Delaware Investments over Mellon Financial as the vendor to its new 529 college savings program that will supplement its existing TAP program.

The TAP program offers guaranteed investments while the new plan will offer investment-based funds and be qualified as a 529 program. The new program is slated to launch this Spring.

Pennsylvania State Treasurer Barbara Hafer pointed to Delaware Investment's local ties, strong national presence and investment capabilities as reasons for the selection. The selection also follows the trend of states selecting firms that use intermediary distribution rather than direct sales.

Hafer noted that Delaware's ties to the broker-dealer community through its parent, Lincoln Financial Group, were "an important factor in Delaware's favor."

The decision to favor Delaware over Mellon was initiated by Mellon's sale of its mid-Atlantic consumer operations to Citizens Bank. Mellon responded to the decision by releasing a statement claiming that "Mellon continues to believe it would have been an excellent choice."

Yet, Hafer has no regrets with the process stating that the RFP was "clearly was the right thing to do. We saw even stronger interest among financial institutions, and as a result, we'll be able to offer a program that's even better."

Mellon continues to act as custodian of its $85 billion in retirement funds for the state of Pennsylvania.

It also revealed that its Dreyfus subsidiary is engaged in discussions with other states about developing 529 programs for them; with existing sponsors regarding distribution joint ventures; and with other sponsors regarding the sale of Dreyfus Funds in their programs. 

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use