FAME Reduces NextGen® Fees
Thursday, June 28, 2012
The Finance Authority of Maine (FAME) announced today that various fees within the NextGen College Investing Plan® (NextGen) will be reduced.
Effective June 29, 2012, total annual asset-based fees will be reduced in most portfolios in the Client Direct (self-directed) Series. Also, total annual asset-based fees will be reduced in all unit classes in the Client Select (advisor-sold) Series. In addition, initial sales charges on A Unit class purchases will be reduced for certain asset classes. These and other changes can be reviewed in more detail in the Supplements dated June 29, 2012 to the Client Direct Series and Client Select Series Program Descriptions.
Most portfolio fees will be reduced between four and eleven basis points. Fees are being reduced up to eleven basis points in the actively available A and C Unit Classes in the Client Select Series. The Account Maintenance Fee within the Client Direct Series has been eliminated.
For a complete list of changes to the various portfolios, please visit FAME’s Website at:
“We are pleased to be reducing fees within NextGen,” stated FAME Chief Executive Officer Beth Bordowitz. “We are able to offer these enhancements due to the program’s success, and we’re grateful to Merrill Lynch, the Program Manager, for their cooperation in reducing their fees. It is important for the program to remain competitive with other Section 529 plans around the nation while offering a variety of choices for investors. FAME and its Advisory Committee on College Savings, which is chaired by the State Treasurer, continually evaluate NextGen to identify opportunities to enhance and improve the plan.”
NextGen is one of the largest Section 529 college savings programs in the country, with almost $6 billion in assets as of May 31, 2012. It was created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code. NextGen is a tax-advantaged investing program of the Finance Authority of Maine designed to help families prepare for qualified higher education expenses. Merrill Lynch is the program manager and underwriter of the plan. Anyone at least age 18 can open an account, regardless of income or residency, and assets can be used at any accredited U.S. post-secondary institution. Matching grants are available to eligible accounts.
FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue businesses and educational opportunities. To learn more about FAME, please visit www.famemaine.com.
NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen Program Description from your Maine bank or financial advisor, or call FAME at 1-800-228-3734 and read it carefully. The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in NextGen, which you should carefully consider before investing. You also should consider whether your home state or your designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 plan. Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, is the program manager and underwriter.