 |
|
|
| |
NM The Education Plan |
|
| |
State Provider: New Mexico; Net Assets ($mil):
$260.4 as of
10-31-09 |
|
| |
|
|
|
 |
|
|
| |
New Mexico's direct-sold College Savings Program, managed by Oppenheimer, had a good deal of exposure to some of the bond world's worst offenders in 2008. In particular, the plan had assets in Oppenheimer Core Bond, a fund that sustained steep losses in 2008 due to management's big bets on illiquid securities. The plan also had exposure to Oppenheimer Limited-Term Government (run by the same management team), which didn't fall as hard in absolute terms, but significantly lagged peers in 2008. As a result, the plan's age-based "Ages 15 - 17 Years Portfolio" (which also plays double duty as the fund's static "Ultra-Conservative Portfolio") lost more than one quarter of its assets in 2008. Unfortunately, the state moved slowly to address the issue, even though problems began to surface at Oppenheimer's domestic fixed-income products in November 2008. It took until March 2, 2009--months after it became painfully clear these investments were deeply distressed--for the state to replace Core Bond with a capable fixed-income option. Existing shareholder money, however, is still invested in those troubled Oppenheimer products. We hope the state moves those college savings into the better fixed-income products now offered, but shareholders should consider moving their money to another plan instead of waiting in limbo. For newcomers, this reformed plan is a serviceable option. In September 2008, the plan replaced many of its actively managed funds with passively managed funds from Oppenheimer. As a result, a majority of the plan's age-based and static option allocations are in the newer index products. That has lowered the plan's total fees, which now range from 0.35% to 0.72% of assets. In-state residents might want to give this plan a look--contributions to this plan can be deducted from state income taxes, which helps to offset the plan's fees. But out-of-state investors looking for index-centric options can find cheaper options, such as Ohio's CollegeAdvantage direct-sold plan.(Information as of 04/06/2009) |
|
|
 |
|
|
|
|
| |
| Availability: Sales Channel |
Resident: Both
Non-Resident: Both
|
|
| Annual State Tax Deduction |
| Max Investment/Beneficiary |
| Mos. to Qualified Withdrawal |
|
Public, Private & International
|
|
|
|
|
Age-Based Portfolios
|
| Static Portfolios |
|
| US Stock
|
|
Bond |
|
|
|
|
| Total International Funds: 16 |
|
|
|
|
|
|
|
|
| |
| Underlying Funds’ Ratings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Overall Morningstar Rating |
# Equity
Funds |
|
# Bond
Funds |
|
|
| Ratings as of
10-31-09 |
|
|
|
|
|
|
|
|
| Range |
0.2 |
| 529 Plan Avg |
0.8 |
|
|
|
|
| Portfolio Expense Ratio Range |
| Fee to Change Beneficiary |
| Share Classes: Sales Charge |
|
|
|
|
|
| Initial Purchase |
$250 |
$250 |
| Additional Purchase |
25 |
25 |
| Initial (AIP) |
25 |
25 |
| Additional (AIP) |
25 |
25 |
|
|
|
|
|
