Wisconsin's Tomorrow's Scholar program to see changes

Wisconsin's 529 board has approved changes in the Tomorrow's Scholar 529 savings program, with a projected implementation date of early September 2005.

All existing portfolios will be reallocated to include mutual funds from Wells Fargo Advantage Funds, American Express, Franklin Templeton, and ING, and a stable value option sub-advised by Galliard will be added.

Class A front-end sales charges will be revised to 5.75% for equity portfolios, 4.5% for fixed income portfolios, and 2.0% for the stable value portfolio. Existing accounts will be grandfathered under the current 3.5% maximum sales charge structure. Distribution will be opened up beyond American Express Financial Advisors to include Wells Fargo and other broker-dealers signing on.

The state administration fee will be reduced from 15 bps to 10 bps while the manager fee to Wells Fargo will increase from 10 bps to 20 bps. The net change in program and fund operating expenses (excluding broker commissions) is a reduction of 0-7bps for three portfolios and a 2-5bps increase for three portfolios.
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