State Street Global Advisors Launches SSgA Upromise® 529 Plan

State Street Global Advisors (SSgA)*, the asset management business of State Street Corporation (NYSE: STT), today announced the launch of the SSgA Upromise® 529 Plan, marking a new arrangement with the State of Nevada and Upromise Investments, Inc. Designed to lower costs and simplify investment choices, the SSgA Upromise 529 Plan features innovative investment strategies that will be implemented using State Street’s SPDR® exchange traded funds (ETFs).

“We’re excited to partner with Nevada and Upromise Investments, Inc. to offer SPDR ETF investments to American families looking to enhance their college savings strategies,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “The SSgA Upromise 529 Plan combines the benefits of State Street’s institutional asset management with SPDR ETFs to offer advisors and investors innovative college savings solutions at significantly lower costs.”

Nevada’s direct-sold Upromise College Fund 529 Plan has been re-named the SSgA Upromise 529 Plan, and will continue to be direct-sold as well as now available through fee-based Registered Investment Advisors. The plan now includes new portfolio options managed by SSgA’s Investment Solutions Group, a dedicated team of investment professionals who develop customized solutions tailored to specific needs. The group specializes in managing and advising investors on asset allocation, risk management, portfolio construction and plan implementation. Upromise Investments, Inc., a leading administrator of 529 college savings plans, will remain as the program manager.

“Closing the college savings gap and securing a better future for the next generation requires a team effort,” said Nevada State Treasurer Kate Marshall. “We’re excited to bring State Street’s sophisticated institutional investment management expertise and industry leading SPDR ETFs to families saving for college through the SSgA Upromise 529 Plan.”

The SSgA Upromise 529 Plan’s investment solutions include:

College Date Portfolios: Designed to make investing as easy as selecting the year in which the beneficiary is expected to start college, the plan’s seven College Date Portfolios are tactically managed to make changes to each portfolio’s asset allocation, within an allowable range, in response to changing market conditions. Powered by multiple SPDR ETFs, and where applicable, a SSgA money market mutual fund, each portfolio is managed to become more conservative as the expected college enrollment date nears.

Risk-Based Portfolios: Tailored to match an investors’ risk tolerance, the plan features three Risk-Based Portfolios (Conservative, Moderate, and Aggressive) that employ a tactical asset allocation strategy designed to identify opportunities and manage risk. The funds underlying the Risk-Based Portfolios include multiple SPDR ETFs, and where applicable, a SSgA money market mutual fund.

Static Portfolios (Accessing Individual SPDR ETFs): Investors and fee-based advisors seeking the flexibility to build and maintain their own customized portfolios can choose from a selection of fifteen SPDR ETFs that provide precise, cost effective access to an array of domestic and international asset classes.

Savings Portfolio: The plan also includes a Federal Deposit Insurance Corporation (FDIC)-insured savings portfolio, which invests 100 % of its assets in the Sallie Mae High-Yield Savings Account (HYSA) ¹

“The SSgA Upromise 529 Plan provides families saving for college with direct access to an innovative, low cost 529 plan,” said Upromise Investments’ President, Jeff Howkins. “We’re pleased to be working with the State of Nevada and State Street to help families better prepare for the rising costs of higher education.”

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