The College Savings Plans of Nevada
have dropped Strong Financial Corp.
as manager of its mutual funds, the Milwaukee Business Journal reports.
The decision was made Friday at a meeting with officials from USAA, a San Antonio-based financial services and insurance provider, who requested the move. The USAA fund accounts for $40 million in college savings from Nevada investors.
A spokesperson for the state, Kathy Besser, said those funds will be withdrawn from Strong over the next three to six months. She also added that the $86 million Strong manages is roughly 21.5 percent of the $400 million invested by Nevada residents in six college savings funds.
Strong fund managers also manage the $6 million Strong 529 Fund and the $40 million American Skandia Fund for Nevada investors.
Other state 529s have reconsidered their relationships with Strong in light of pending charges against Richard Strong and the company. Last week, The Oregon College Savings Board terminated its relationship with Strong and the Wisconsin College Savings program recently hired independent counsel to audit the two federal investigations underway of Strong by the Wisconsin Department of Financial Institutions.
Strong currently manages more than $1 billion in investments from Wisconsin and other states through its EdVest and Tomorrow's Scholar programs.
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