California seeking bids for 529 program manager
Fidelity Investments is currently the program manager for both the ScholarShare direct 529 ($4 bil.) and ScholarShare Advisor ($280 mil.). Its management contract expires in November 2011.
The RFP makes it clear that SIB is interested in having a program manager incorporate non-proprietary funds--aka open architecture--into its 529 investment lineup. Currently, both plans use Fidelity funds. The RFP also describes a state administrative fee of 10 basis points on actively-managed fund options and 5 basis points on index-fund options.
The deadline for submitting proposals is May 2, 2011 and the conversion, if necessary, will take place in November 2011.