âAlthough Morningstar has already identified CollegeAmerica’s fees as among the lowest in the 529 industry, we are reducing them even further,â said Kris Spazafumo, senior director of 529 plans at American Funds. âIn addition to the reduction in administrative costs announced previously, the elimination of account opening and maintenance fees will allow CollegeAmerica investors to achieve significant savings. “
Since its inception in 2002, CollegeAmerica has grown into the nation’s largest 529 education savings plan, with assets approaching $ 50 billion. CollegeAmerica is able to reduce its administrative costs as the amount of assets it manages increases.
“We are very pleased that Virginia529 has demonstrated its confidence in CollegeAmerica by extending our partnership in this manner,” said Spazafumo. “This extension is a true testament to the value our organizations have created together.”
â2014 has been an exciting year for Virginia529,â said Mary morris, CEO of Virginia529 College Savings Plan. âWe recently exceeded $ 50 billion in assets, more than three quarters of which come from our partnership with American Funds. This size, which makes Virginia529 the largest 529 plan nationwide, gives us the ability to lower fees so our investors can earn more on their savings. We also really appreciate the unique longevity and stability of our relationship with American Funds and we are delighted to continue to provide this to our clients, âsaid Morris.
This long-standing relationship is expected to continue, Spazafumo said, noting that American Funds and Virginia529, the state sponsor of CollegeAmerica, have agreed to extend the contract between the two organizations until 2040.
CollegeAmerica, which is offered by American Funds, is the 529 plan of choice for more than 100,000 advisors and over one million families nationwide. Further information is available at (www.americanfunds.com) or by calling (800) 421-9900.
Investors should carefully consider investment objectives, risks, fees and expenses. This and other important information is contained in the fund prospectus, summary prospectus and CollegeAmerica program description, which may be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc.
Investments are not FDIC insured, nor deposits, or guaranteed by a bank or any other entity, so they may lose value.
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SOURCE American funds