State 529 Plan Has No Exposure to Mutual Fund Industry Problems

BATON ROUGE, LA – Scandals now plaguing the mutual fund industry have not affected parents investments in Louisiana’s 529 Plan, also known as the START Program, according to State Treasurer John Kennedy.

There has been a lot of news lately about problems on Wall Street and with mutual fund companies, but money that has been invested in START is protected, said Treasurer Kennedy. These current mutual fund scandals have not hit the nearly 11,000 college savings accounts Louisiana parents have worked so hard to save for.

START accounts have had no exposure to the mutual fund industry. The Treasury has invested START accounts completely in fixed income investments like government bonds, notes, and certificates of deposit.

Beginning in February 2004, however, START account owners will be able to choose to invest all or a portion of their accounts in equities. The State Treasury will continue to manage fixed income investments for START, and The Vanguard Group will manage accounts invested partially or completely in equities.

We will be offering various options for parents to diversify their START accounts, and even then, the choices will be entirely up to the account owner, said Treasurer Kennedy.

For more information about investments in the START Program, visit www.latreasury.com.

Contact:
Sarah Mulhearn
(225) 342-0012