MutualFundWire.com: AIM Upgrades Its 529 Plan
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Wednesday, October 02, 2002

AIM Upgrades Its 529 Plan


AIM Management Group has upgraded its College Savings Plan by adding 14 individual fund portfolios to its slate of investment options. The Houston-based firm will also target employers for distribution with a corporate automatic investment program, effective on October 8, 2002.

AIM's existing lineup includes three fixed-allocation portfolios - Aggressive Growth, Growth and Balanced - and seven enrollment-based portfolios. The new investment options run the gamut of investment styles and include money-market and fixed income portfolios.

Moreover, the new corporate automatic investment program will allow employers to offer AIM's 529 plan via a convenient online enrollment process. The Houston-based firm is also eliminating the $50 fee for non-qualified withdrawals.

"The marketplace for 529 plans has become increasingly competitive and we believe these new features give AIM and the State of Nebraska a program that provides investors easier access to a 529 plan and ample options to meet their investment objectives," said Michael J. Cemo, president and chief executive officer of AIM Distributors, Inc., AIM's retail-marketing subsidiary, in a release.

A company spokesman said the timing is also opportune with respect to year-end gift giving under estate planning, which could translate into more contributions into 529 plans.

The nation-wide AIM 529 plan, which holds some $43 million in assets under management, is sponsored by the state of Nebraska; the Nebraska State Treasurer, Lorelee Byrd, serves as Trustee; and Union Bank & Trust Company serves as the program manager, according to the company.


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