The TNStars® College Savings 529 Program is working hard to build a better experience for you. In February 2018, we upgraded our recordkeeping system and client portal to provide simplified account management, easier access to your funds, and new ways to save. Beginning August 16, 2019, TNStars will embark on the next phase of this initiative.
Here is what you can expect:
Redesigned Age- Based Option
While participants in the age-based option will continue to enjoy the ease of this “set it and forget it” approach, we will be adding five age bands to more gradually transition from stocks to bonds as your beneficiary approaches college age. The charts below show the asset allocation for each age band within the new strategy compared to the current strategy.
Updates to the Self-Selected Investment Lineup
The new self-selected investment lineup will focus on passive offerings that aim to track the performance of certain market benchmarks, but some actively managed funds are included as well. Additionally, we will introduce new asset classes by offering both a Real Estate fund and an Emerging Markets fund. We will continue to provide the benefit of a range of investment options with products from Vanguard, PrimeCap, DoubleLine, Western Asset, and First Tennessee.
Change to the Annual Asset Based Fee
Currently, participants incur a 0.35% total annual asset based fee for all investment options offered by the plan, excluding the interest bearing account option. With the transition, we will charge a variable total annual asset based fee that includes a static 0.20% program management fee. Additionally, we will eliminate any previous fee subsidies. These changes will result in an increase in the total annual asset based fee for five (5) funds, while eleven (11) funds, including the age-based option, will see a reduction. After the transition, more lower-cost options will be available to you.
Review the changes to the Annual Asset Based fees included through the links below and then log in to review your current investment options.
Investment Option Mapping
Key Dates & Actions
Disclosure Brochure Updates
All changes referenced in this mailer are reflected in the TNStars Disclosure Brochure effective August 19, 2019 which will be delivered to you via your preferred delivery method.