AKF Blog


we have a lot of thoughts about the 529 industry. Important topics like downward fee trends, program manager rebids, new product developments, and even the Veep’s Task Force, to name just a few. We have our bird’s eye view and we want to share it with you.

So we invite you to follow us on Twitter – 529Source – and to visit this blog frequently. We’ll tell you what we’re thinking and we hope you’ll tell us, too. We need to elevate the college savings conversation – across states, program managers and advisors alike. That’s what we intend to do. Please join us. Read Now>

  • The Best Funds also have Strong StewardshipMarch 31, 2014

    A recent Morningstar study suggests that high fund performance seems to be correlated with better stewardship practices. This study examined the twenty largest mutual fund companies by assets under management – almost all of them involved in the 529 business – and discovered a relationship between the long-term success of the companies and Morningstar’s Stewardship Grade. Of the twenty companies reviewed, the top four – American Funds, Dodge & Cox, T. Rowe Price and Vanguard – received Stewardship Grade A.

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  • Socially Responsible Funds in 529 PlansMarch 21, 2014

    The DC 529 College Savings Plan is among the most expensive Plans nationwide, with one individual investment option costing 2.01%, including 1.86% in annual underlying fund fees alone. This is the highest cost investment option among all Direct Plans nationwide. We wondered about this investment option – which is for the Calvert International Equity Fund (CWVGX). Not surprisingly, the cost reflects the “social conscience” that Calvert brings to investment management through its screening for companies that uphold environmental, social and governance (“ESG”) standards.

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  • Poor Market Timers Lost Big in 2013March 13, 2014

    A recent research report by Morningstar shows that investors in general are not so great at timing their investments. 2013 was a year full of surprises, and investors made bad market bets in 2012. Investors who withdrew from domestic stocks and loaded up on bonds or emerging markets last year likely suffered significant losses. One of the largest outflows in 2012 was from the US Equity asset class, but selling then would have been a bad move because domestic equities actually returned 35.04% in 2013, recording this asset class’ best performance in decades.

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