Ivy Investments has enhanced the Ivy InvestEd℠ 529 Plan by
lowering fees and expanding its investment options in conjunction
with a contract renewal with the Arizona Family College Savings
Program. InvestEd has been offered through the state of Arizona
since 2001.
As part of a redesign and update of the plan, effective Sept.
18, 2017, InvestEd offers lower sales charges, a reduced minimum
initial investment, an increased number of age-based and static
portfolios and individual fund options, along with an expanded
range of underlying funds within the age-based and static
portfolios.
“Ivy Investments has made some important and competitive
enhancements to the Ivy InvestEd℠ 529 Plan, which we believe will
bring benefits to investors saving for higher education,” said Dr.
April Osborn, Executive Director with the Arizona Commission for
Postsecondary Education. “We’re pleased to extend our contract and
continue our partnership with the InvestEd Plan for another four
years and an option for three additional after that.”
The sales charge for all InvestEd Portfolios, which are offered
nationally through financial advisers, have been lowered to 2.5%,
among the lowest in the industry, from a previous 5.75%. The
minimum initial investment has been reduced to $250 from $750, or
as low as $150 if the account has automatic monthly investments of
a minimum of $50.
With much lower expenses and a lower initial investment, the
plan is more accessible and affordable for a range of individuals
and families, Osborn added. The total annual asset-based fees in
the age-based portfolios will range from 0.78%- 1.02%, which is a
material drop from the previous 0.92% - 1.17%.
“Our goal is to provide financial advisers with a competitive,
cost-efficient 529 plan that they can utilize to help their clients
best prepare for the higher education expenses of tomorrow,” said
Thomas W. Butch, president and CEO of Ivy Distributors, Inc. “We
continually review the Ivy InvestEd℠ 529 Plan to ensure it meets
the needs of today’s investors, as shown with these latest
changes.”
The number of age-based portfolios offered through the plan has
expanded from three to six. The addition of three age-based
portfolios is designed to provide investors with a smoother glide
path, transitioning investments from equity-focused holdings to
more fixed-income holdings, in an effort to help reduce the risk of
loss when capital preservation is needed most as the child
approaches college age. This chart shows the previous portfolio
path, and the new path with six portfolios:
Previous Glide Path
Age of Beneficiary
Portfolio Ages 0–8 InvestEd Growth Portfolio Ages
9–15 InvestEd Balanced Portfolio Ages 16+ InvestEd
Conservative Portfolio
New Glide Path (Effective Sept. 18,
2017)
Age of Beneficiary
Portfolio Ages 0–4 InvestEd Aggressive Portfolio Ages
5–8 InvestEd Growth Portfolio Ages 9–11 InvestEd
Balanced Portfolio Ages 12–14 InvestEd Conservative
Portfolio Ages 15–18 InvestEd Income Portfolio Ages 19+
InvestEd Fixed Income Portfolio
The age-based portfolios, which also can be individually
selected as a static portfolio investment, are actively managed
funds of funds comprised primarily of selected Ivy Funds mutual
funds. These portfolios are managed by a portfolio management team
who actively selects the asset allocation.
Other enhancements include the addition of five passively
managed index funds (managed by Ivy Investment Management Company
and subadvised by ProShares Advisors, LLC) to the list of
individual fund portfolio offerings. This new line-up provides
investors with exposure to both actively managed and passively
managed strategies. Specialized funds from Ivy that are sub-advised
by Apollo Credit Management and LaSalle Investment Securities have
also been added.
For more information, please visit Ivy InvestEd℠ 529 Plan at
ivyinvestments.com.
About Ivy Investments
Ivy Investments® is a global organization recognized for
inventive, actively-managed investing strategies that help
investors best meet their long-term goals. It is part of an
organization dating to 1937, with a time-tested investment process
and an authentic and demanding culture – one that values
preparedness, collaboration and accountability. These values extend
from a broad internal investing capability, which reaches all major
asset classes, to subadvisor partners, to the distribution team
that supports advisors and clients.
Ivy Investment Management Company and Ivy Distributors, Inc. are
affiliates of Waddell & Reed Financial, Inc. (NYSE: WDR).
Through its subsidiaries, Waddell & Reed Financial, Inc.
provides investment management and financial planning services to
clients throughout the U.S. The firm had approximately $80.3
billion in total assets under management at Aug. 31, 2017.
ProShares® is a registered mark of ProShare Advisors LLC and is
licensed by Ivy Investment Management Company and Ivy Distributors,
Inc. for use in connection with Ivy ProShares funds.
The Ivy InvestEd℠ 529 Plan is offered by Waddell & Reed,
Inc. as part of the Arizona Family College Savings Program (the
“Program”). Waddell & Reed, Inc. is one of multiple financial
institutions eligible to offer investments under the Program.
Non-residents or tax-payers of states other than Arizona
should consider participating in the 529 plan(s) available in their
state of residence as such plan(s) may offer more favorable state
income tax or other benefits than those offered under the Ivy
InvestEd℠ 529 Plan. Please consult your tax advisor regarding your
personal tax situation. Accounts are not insured by the State of
Arizona, the Family College Savings Program Trust Fund (”the
Trust”), the Arizona Commission for Postsecondary Education, or any
other governmental entity, Waddell & Reed, Inc., or any
affiliated or related party, and neither the principal deposited
nor the investment return is guaranteed by any of the above
referenced parties.
Past performance is not a guarantee of future results.
Investment return and principal value will fluctuate, and it is
possible to lose money by investing.
Before investing, investors should carefully consider the
investment objectives, risks, charges and expenses of the Ivy
InvestEd℠ 529 Plan. This and other important information is
contained in the Ivy InvestEd℠ 529 Plan Program Overview, Ivy
InvestEd℠ 529 Plan Account Application, and the prospectuses, or if
available, summary prospectuses, all of which may be obtained at
ivyinvestments.com or from a financial advisor. Read them carefully
before investing.
IVY FUNDS® mutual funds are managed by Ivy Investment Management
Company and are distributed by Ivy Distributors, Inc. InvestEd℠
Portfolios are managed by Ivy Investment Management Company and are
distributed by Waddell & Reed, Inc. These financial products
are offered by prospectus only. Waddell & Reed Financial, Inc.
is the ultimate parent company of Ivy Distributors, Inc. and
Waddell & Reed, Inc.
IVY INVESTMENTS® refers to the investment management and
investment advisory services offered by Ivy Investment Management
Company, the financial services offered by Ivy Distributors, Inc.,
a FINRA member broker dealer and the distributor of IVY FUNDS®
mutual funds and IVY VARIABLE INSURANCE PORTFOLIOS℠, and the
financial services offered by their affiliates.
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version on businesswire.com: http://www.businesswire.com/news/home/20170918005321/en/
Ivy InvestmentsRoger HoadleyVP,
Communicationsrhoadley@ivyinvestments.com
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