VALLEY FORGE, Pa.--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--Dec 10, 2002--The Vanguard Group today announced that The Vanguard(R) 529 College Savings Plan is effective and available for investments by contacting Vanguard at (866) 734-4530, or online via www.Vanguard.com.
Designed for investors who prefer a low cost college savings program combined with investment simplicity, The Vanguard 529 College Savings Plan offers 21 investment options, including three age-based investment options and 18 individual portfolios. The three age-based investment options consist of conservative, moderate, and aggressive asset allocations and automatically adjust from a higher allocation of stocks for younger ages to a higher allocation of bonds and money market investments during a child`s teenage years. Importantly, asset allocations held within the age-based investment options are specifically designed to match the relatively short-and fixed-investment time horizon of college savings.
The Vanguard 529 College Savings Plan`s 18 individual portfolios consist of an array of stock, bond, balanced, and money market portfolios, including five custom portfolios that are available only to account owners. The individual portfolios are offered to provide families with the flexibility to construct a personalized college savings investment strategy that best meets their own risk tolerance and asset allocation needs.
Vanguard will provide marketing, distribution, investment management and client service to the plan, which, depending on the investment selected, can have an all-in expense ratio as low as 0.65 percent. Vanguard expects the plan to be available via payroll deduction to employees of companies that have an institutional relationship with Vanguard in the second quarter 2003.
The Vanguard 529 College Savings Plan is sponsored by the State of Nevada and administered by Upromise Investments, Inc., a wholly owned broker dealer subsidiary (member NASD/SIPC) of Upromise, Inc., which administers the widely popular and free Upromise Loyalty Service where families can earn contributions on purchases at tens of thousands of retail locations, more than 8,500 restaurants, 15,000 grocery and drug stores, and 100 online shopping sites. Investors in The Vanguard 529 College Savings Plan can link their accounts to the Upromise Loyalty Service via www.Upromise.com.
The Upromise Loyalty Service, launched in April 2001, has nearly 3 million members. Contributing companies to the Upromise Loyalty Service include America Online, AT&T;, Citi(R), ExxonMobil, General Motors, McDonald`s, Toys''R''Us, iDine, Borders Books & Music(R), CENTURY 21(R), COLDWELL BANKER(R), Countrywide Home Loans, ERA(R), Staples, New York Life, Circuit City, American Airlines, Starwood Hotels, Waldenbooks(R) and Avis(R). Members in the Upromise Loyalty Service also save when they use the Citi(R) Upromise(TM) Card for purchases, or when they purchase thousands of grocery items from leading brands, including Coca-Cola(R), Kellogg`s(R), Huggies(R), Tide(R), GLAD(R) and Tylenol(R).
Vanguard manages more than $900 million in 529 plan assets for many of America`s leading 529 college savings programs, including Iowa, Utah, Nebraska, and Virginia. Vanguard is the exclusive investment manager to College Savings Iowa(TM), serving its 55,000 accounts and over $350 million in college savings assets.
The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the nation`s second largest mutual fund firm and a leading provider of company sponsored retirement plan services. Vanguard serves some 17 million shareholder accounts and manages nearly $570 billion in U.S. assets, including more than $165 billion in participant-directed defined contribution retirement plans. Vanguard offers 112 funds to U.S. investors and 36 additional funds in foreign markets.
EDITOR`S NOTE: Please see attached chart outlining investment criteria and characteristics of The Vanguard 529 College Savings Plan. Vanguard is a trademark of The Vanguard Group, Inc. Upromise is a trademark of Upromise, Inc. All other marks are the exclusive property of their respective owners. An investment in a money market portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. Upromise
Investments, Inc. and Vanguard Marketing Corporation, Distributors.
The Vanguard 529 College Savings Plan
Minimum Investment - $3,000
Minimum Additional Investment - $50
Maximum Contribution - $250,000
Annual Account Fee - None
Expense Ratio - All-in expense ratio of 0.65 percent for the three age-based investment options. All-in expense ratios for individual portfolios range from 0.65 percent to 0.85 percent.
Investment Options
Aged-Based Tracks (3)
-Conservative: 50% stocks/50% bonds for the youngest age band; 75% bonds/25% money market beginning at age 11.
-Moderate: 65% stocks/35% bonds for the youngest age band; 75% bonds/25% money market beginning at age 16.
-Aggressive: 100% stocks for the youngest age band; 75% bonds/25% money market by age 19.
Custom Portfolios (5) (% Stocks/Bonds/Money Markets)
-Vanguard Aggressive Growth Portfolio: 100/0/0
-Vanguard Growth Portfolio: 65/35/0
-Vanguard Moderate Growth Portfolio: 50/50/0
-Vanguard Conservative Growth Portfolio: 35/65/0
-Vanguard Income Portfolio: 0/75/25
Stock Portfolios (7)
-Vanguard Total Stock Market Portfolio
-Vanguard Total International Stock Index Portfolio
-Vanguard 500 Index Portfolio
-Vanguard Growth Index Portfolio
-Vanguard Value Index Portfolio
-Vanguard Mid-Cap Index Portfolio
-Vanguard Small-Cap Index Portfolio
Bond Portfolios (4)
-Vanguard Total Bond Market Index Portfolio
-Vanguard Long-Term Bond Index Portfolio
-Vanguard Inflation-Protected Securities Portfolio
-Vanguard High-Yield Bond Portfolio
Balanced Portfolios (1)
-Vanguard Balanced Index Portfolio
Money Market Portfolios (1)
-Vanguard Prime Money Market Portfolio
*Application Process - Purchase directly from Vanguard Online enrollment at www.Vanguard.com (866) 734-4530
*Service Provider - Marketing, distribution, investment management and client services provided by Vanguard; program management services provided by Upromise Investments, Inc.
State Administrator - The Vanguard 529 College Savings Plan is a Nevada trust administered by the Board of Trustees of the College Savings Plans of Nevada, chaired by State Treasurer Brian K. Krolicki.
S&P; 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored, endorsed, sold, or promoted by Standard & Poor`s, and Standard & Poor`s makes no representation regarding the advisability of investing in the funds.
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