trio of players have teamed up to offer the newest 529 college savings plan. The program is sponsored through the State of Nebraska
and the investments are being provided by AIM Investments
. The Nebraska State Treasurer is administering the program. Meanwhile, State Farm VP Management Corp. will distribute the program through the insurer's network of agents.
Nebraska first partnered with Aim on its college savings programs in September of 2001.
"Given State Farm has over 10,000 registered representatives, possesses a highly respected and trusted brand, and has relationships with 28 million households, we believe this will be a successful endeavor," said John Cooper
, director of AIM Investments' Retirement & Education Products Division.
The combination of an investment specialist teaming up with a distribution specialist fits the emerging model in the 529 market. While many early programs focused on investments, now most states are paying careful attention to the distribution capabilities of their partners as they have learned that few investors are actively seeking out programs.
State Farm agents will sell The State Farm College Savings Plan in all 50 states. The program features 10 investment portfolios - three fixed-allocation portfolios (Aggressive Growth, Growth and Balanced) and seven enrollment-based portfolios. The enrollment-based portfolios provide varying investment allocations corresponding to the beneficiary's anticipated time to enrollment.
AIM subsidiaries will serve as investment manager and servicing agent for the plan, according to William J. Raynor, Jr.
, manager of Education Savings & Sales at AIM Investments.
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