EdVest(SM) Changes Bring Further Fee Cuts
June 14 2007 - 2:44PM
PR Newswire (US)
2007 Plan Changes Result in Projected Annual Net Savings of $1
Million for Plan Participants MADISON, Wis., June 14 /PRNewswire/
-- The Wisconsin College Savings Program Board today announced that
the state's 529 college savings plans, EdVest and tomorrow's
scholar(R), will make changes to the plans' Stable Value investment
option that could save investors in these portfolios a projected
$324,000.00 annually.(1) These savings, in addition to those
created by the announced fee reductions in January, bring the
projected annual net savings passed on to plan participants to more
than $1 million. "As administrators to Wisconsin's college savings
plans, we're always pleased when changes made for investment policy
purposes also result in reduced costs for plan participants," said
State Treasurer Dawn Marie Sass. Sarah Henriksen, vice president of
education planning with program manager Wells Fargo Funds
Management, LLC, said, "This change will give investors an
investment option with a comparable investment objective and
investment approach, but at significantly less cost." The most
recent fee reductions will take effect on June 15, when the EdVest
and tomorrow's scholar Stable Value Portfolios will be renamed the
Ultra-Conservative Portfolio. It's investment objective and
investment strategies will also change. In accordance with these
changes, investors in the Ultra-Conservative Portfolio will have
their college savings investments reallocated into the Wells Fargo
Advantage Heritage Money Market Fund(SM), reducing portfolio
expenses to 0.44% from 0.75% of assets. For an investor with a
$5,000 account, this results in an estimated annual savings of
$15.50. This reduction follows recent changes made to the plans in
January that reduced fees across the majority of investment
options, some by as much as 14 basis points (0.14%). The fee
reductions resulted in a projected annual savings of approximately
$733,000 for plan participants. The Wisconsin College Savings
Program Board and Wells Fargo Funds Management have made multiple
fee reductions to keep the Wisconsin 529 plans among the
lowest-costing plans in the country. In fact, EdVest was recently
recognized by BusinessWeek as a "low-cost plan," offering equity
investment portfolios with expense ratios as low as 0.35%.(2)
Across all investment options, EdVest participants pay an average
of only 0.79% in annual portfolio expenses. Wells Fargo Funds
Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, offers investment solutions for individual and
institutional investors. The firm manages the EdVest and tomorrow's
scholar college savings plans, as well as Wells Fargo Advantage
Funds, a family of more than 120 mutual funds across a wide range
of asset classes, representing more than $126 billion in assets
under management, as of 4-30-07. Wells Fargo Funds Management also
provides portfolio management services through its Wells Fargo
Advisor(SM) program and customized investment solutions through
Wells Fargo Managed Account Services, which is a program of
professionally managed portfolios consisting of individual
securities. For more complete information about Wells Fargo
Advantage Funds, EdVest, or tomorrow's scholar, obtain a current
prospectus or program description by calling 1-800-222-8222 or
visiting http://www.wellsfargo.com/advantagefunds or by contacting
your investment professional. Consider the investment objectives,
risks, charges, and expenses of the investment carefully before
investing. This and other information about Wells Fargo Advantage
Funds, EdVest, or tomorrow's scholar can be found in a current
prospectus or program description. Please read it carefully before
investing. An investment in the Wells Fargo Ultra-Conservative
Portfolio is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the
Wells Fargo Ultra-Conservative Portfolio seeks to preserve the
value of your investment at $10.00 per share, it is possible to
lose money by investing in this Portfolio. An investor's or a
designated beneficiary's home state may offer state tax or other
benefits that are only available for investments in that state's
qualified tuition program. Please consider this before investing.
(1) As of May 31, 2007, the EdVest and tomorrow's scholar plans
held approximately $104,529,000 in the Stable Value Portfolio.
Today's announced changes to the investment option will reduce
expenses on the portfolio to 0.44% from 0.75% of assets. This
reduction of 31 basis points should save investors approximately
$324,041 annually. (2) "529s Just Might Make the Grade," by Anne
Tergesen, BusinessWeek, January 15, 2007. EdVest and tomorrow's
scholar are state-sponsored 529 college savings plans administered
by the Wisconsin Office of the State Treasurer. Wells Fargo Funds
Management, LLC, a wholly owned subsidiary of Wells Fargo &
Company, provides investment advisory and administrative services
for Wells Fargo Advantage Funds, EdVest, tomorrow's scholar, the
Wells Fargo Advisor program, and Wells Fargo Managed Account
Services. Other affiliates of Wells Fargo & Company provide
subadvisory and other services for the Funds. The Funds and shares
in the 529 plans are distributed by Wells Fargo Funds Distributor,
LLC, Member NASD/SIPC, an affiliate of Wells Fargo & Company.
105050 06-07 NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE
DATASOURCE: Wells Fargo & Company CONTACT: Marty Olle of
Wisconsin Office of the State Treasurer, +1-608-264-7886; or John
Roehm of Wells Fargo Funds Management, LLC , +1-415-222-5338 Web
site: http://www.wellsfargo.com/
Copyright