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CO Scholars Choice College Savings |
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State Provider: Colorado; Net Assets ($mil):
$2,148.5 as of
10-31-09 |
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Although we still think Colorado's Scholars Choice College Savings Program is a reasonable choice for Coloradoans, there's no denying it was challenged in 2008. This Legg Mason-run plan provides access to a number of talented managers with many years of investment experience, but several of them fell on hard times in last year's market turmoil, including legendary investor Bill Miller whose charge Legg Mason Value Trust lost 55% for the year. But perhaps more costly were the missteps of bond manager Western Asset Management, which had a greater impact on plan participants nearing college age. For example, their forays into mortgage-backed and corporate fare contributed to a 12% loss last year for the "Age 19+" portfolio. Despite these disappointments, we expect this plan will see better days. The plan still offers exposure to a number of talented investors, and Legg Mason recently added a new domestic large cap option run by quant-manager Batterymarch to the mix, to offset the bolder, more concentrated styles of Miller and others. Annual costs, which range between 0.82% and 1.14% of assets per year, are also reasonable for a broker-sold plan. Colorado also offers full state income-tax deductions on contributions made to this plan, making it a tough option to pass up for residents. (Information as of 04/08/2009) |
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| Availability: Sales Channel |
Resident: Broker
Non-Resident: Broker
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| Annual State Tax Deduction |
| Max Investment/Beneficiary |
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$280,000 |
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(includes appreciation)
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| Mos. to Qualified Withdrawal |
| Age-Based, Enrollment Based |
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Age-Based Portfolios
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| Static Portfolios |
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| US Stock
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Bond |
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| Total International Funds: 132 |
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| Underlying Funds’ Ratings |
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| Overall Morningstar Rating |
# Equity
Funds |
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# Bond
Funds |
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| Ratings as of
10-31-09 |
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| Range |
0.00
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3.1 |
| 529 Plan Avg |
0.8 |
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| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
| A:
3.5% (front-load) |
| B:
2.5% (deferred-load) |
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| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
50 |
50 |
| Initial (AIP) |
— |
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| Additional (AIP) |
— |
— |
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