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Rating:SSgA Lands a $965MM Mandate Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, April 20, 2012

SSgA Lands a $965MM Mandate

by: Erin Kello

State Street Global Advisors [profile] has won a mandate for the State of Nevada's 529 savings plan. It will be branded the SSgA Upromise 529 Plan.

IndexUniverse reports that the $965-million plan was previously managed by Vanguard.

Upromise Investments will remain as the program manager.


Company Press Release

BOSTON – April, 17 2012 — State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SSgA Upromise® 529 Plan, marking a new arrangement with the State of Nevada and Upromise Investments, Inc. Designed to lower costs and simplify investment choices, the SSgA Upromise 529 Plan features innovative investment strategies that will be implemented using State Street’s SPDR® exchange traded funds (ETFs).

“We’re excited to partner with Nevada and Upromise Investments, Inc. to offer SPDR ETF investments to American families looking to enhance their college savings strategies,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “The SSgA Upromise 529 Plan combines the benefits of State Street’s institutional asset management with SPDR ETFs to offer advisors and investors innovative college savings solutions at significantly lower costs.”

Nevada’s direct-sold Upromise College Fund 529 Plan has been re-named the SSgA Upromise 529 Plan, and will continue to be direct-sold as well as now available through fee-based Registered Investment Advisors. The plan now includes new portfolio options managed by SSgA’s Investment Solutions Group, a dedicated team of investment professionals who develop customized solutions tailored to specific needs. The group specializes in managing and advising investors on asset allocation, risk management, portfolio construction and plan implementation. Upromise Investments, Inc., a leading administrator of 529 college savings plans, will remain as the program manager.

“Closing the college savings gap and securing a better future for the next generation requires a team effort,” said Nevada State Treasurer Kate Marshall. “We’re excited to bring State Street’s sophisticated institutional investment management expertise and industry leading SPDR ETFs to families saving for college through the SSgA Upromise 529 Plan.”

The SSgA Upromise 529 Plan’s investment solutions include:

College Date Portfolios: Designed to make investing as easy as selecting the year in which the beneficiary is expected to start college, the plan’s seven College Date Portfolios are tactically managed to make changes to each portfolio’s asset allocation, within an allowable range, in response to changing market conditions. Powered by multiple SPDR ETFs, and where applicable, a SSgA money market mutual fund, each portfolio is managed to become more conservative as the expected college enrollment date nears.

Risk-Based Portfolios: Tailored to match an investors’ risk tolerance, the plan features three Risk-Based Portfolios (Conservative, Moderate, and Aggressive) that employ a tactical asset allocation strategy designed to identify opportunities and manage risk. The funds underlying the Risk-Based Portfolios include multiple SPDR ETFs, and where applicable, a SSgA money market mutual fund.

Static Portfolios (Accessing Individual SPDR ETFs): Investors and fee-based advisors seeking the flexibility to build and maintain their own customized portfolios can choose from a selection of fifteen SPDR ETFs that provide precise, cost effective access to an array of domestic and international asset classes.

Savings Portfolio: The plan also includes a Federal Deposit Insurance Corporation (FDIC)-insured savings portfolio, which invests 100 % of its assets in the Sallie Mae High-Yield Savings Account (HYSA)

“The SSgA Upromise 529 Plan provides families saving for college with direct access to an innovative, low cost 529 plan,” said Upromise Investments’ President, Jeff Howkins. “We’re pleased to be working with the State of Nevada and State Street to help families better prepare for the rising costs of higher education.”

For more information about the SSgA Upromise 529 Plan, please visit www.ssga.upromise529.com.

State Street manages approximately $307** billion in SPDR ETF assets worldwide (as of March 31, 2012) and is one of the largest ETF providers globally.

About SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company. The funds provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street created the first ETF in 1993 (SPDR S&P 500® – Ticker SPY). Since then, we’ve sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income and sector ETFs. For more information, visit www.spdrs.com.

About State Street Global Advisors

State Street Global Advisors (SSgA) is a global leader in asset management. The firm is relied on by sophisticated investors worldwide for its disciplined investment process, powerful global investment platform and access to every major asset class, capitalization range and style. SSgA is the asset management business of State Street Corporation, one of the world’s leading providers of financial services to institutional investors.

About The College Savings Plans of Nevada

The Nevada State Treasurer’s Office and the Board of Trustees of the College Savings Plans of Nevada proudly administer four diverse national college savings plans, which each offer unique savings opportunities for families planning ahead for the children’s future higher education needs: the SSgA Upromise 529 Plan, the Vanguard 529 College Savings Plan, the USAA 529 College Savings Plan, and the Putnam 529 for America Plan. For more information, go to NevadaTreasurer.gov.

About Upromise Investments, Inc.

Upromise Investments, Inc. (UII) is the program manager for the SSgA Upromise 529 Plan. UII and/or its affiliate Upromise Investment Advisors, LLC, services 31 plans across 16 states with $37.5 billion in assets as of December 31, 2011. Upromise Investments is a subsidiary of Sallie Mae.

For more information about the SSgA Upromise 529 Plan call 1-800-587-7305 or visit www.ssga.upromise529.com to obtain a Plan Description and Participation Agreement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description; read and consider it carefully before investing. Uproomise Investments, Inc Distributor.

If you are not a Nevada taxpayer, consider before investing whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.

The SSgA Upromise 529 Plan (Plan) is administered by the Board of Trustees of the College Savings Plans of Nevada (Board), chaired by Nevada State Treasurer Kate Marshall. Upromise Investments, Inc (UII) serves as the Program Manager. UII has overall responsibility for the day-to-day operations, including distribution of the Plan and provision of certain marketing services. State Street Global Advisors (SSgA) serves as Investment Manager for the Plan except for the Savings Portfolio, which is managed by Sallie Mae Bank, and also provides or arranges for certain marketing services for the Plan. The Plan's Portfolios invest in either (i) Exchange Traded Funds and mutual funds offered or managed by SSgA or its affiliates; or (ii) a Federal Deposit Insurance Corporation (FDIC)-insured omnibus savings account held in trust by the Board at Sallie Mae Bank. Upromise, Inc., UII and Sallie Mae Bank are affiliates. Except for the Savings Portfolio, investments in the Plan are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in the Plan, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Upromise rewards is an optional service offered by Upromise, Inc., is separate from the SSgA Upromise 529 Plan, and is not affiliated with the State of Nevada. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Upromise, Inc. is affiliated with Upromise Investments, Inc. and Sallie Mae Bank.

*SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Bank& Trust Company.

**This AUM includes the assets of the SPDR Gold Trust (approx. $68 billion as of March 31, 2012), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors serves as the marketing agent.

SPDR is a registered trademark of Standard & Poor Financial Services LLC (&P and has been licensed for use by State Street Corporation. STANDARD & POOR, S&P, S&P 500, S&P SMALLCAP 600 and S&P MIDCAP 400 are registered trademarks of Standard & Poor Financial Services LLC. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. Further limitations and important information that could affect investors’ rights are described in the prospectus for the applicable product.

State Street Global Advisors and SSgA are registered trademarks of State Street Corporation

State Street Global Advisors, One Lincoln Street, Boston, MA 02111.

2012 State Street Corporation. All Rights Reserved.
 

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