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529 News
Fidelity wins bid for California 529 manager selection
(April 15, 2006) - Fidelity Investments has come out on top in California's scoring of bids to manage the Golden State ScholarShare College Savings Trust. Upromise/Vanguard finished second in the scoring, while the current manager TIAA-CREF finished third. State officials and Fidelity will now enter into final contract negotiations so that program management may be transferred when the contract with TIAA-CREF expires in October 2006.
According to a report in the San Francisco Chronicle, Fidelity will develop a broker-sold plan for California in addition to direct-sold options.
The direct-sold plan would have at least 13 investment options, including both index and actively-managed funds. Program fees are expected to be lower under Fidelity. The broker-sold plan would have 17 investment options.
Fidelity current manages 529 plans in Arizona, Delaware, Massachusetts, and New Hampshire.

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