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Giannoulias creates first female/minority-owned portfolio
in college savings plan
Tuesday, November 20, 2007
Illinois State Treasurer Alexi Giannoulias will launch the nation’s first-ever female- and minority-owned investment option offered through a state-sponsored college savings plan.
Early next year, Bright Directions College Savings Program account holders will have the ability to invest their money in the plan’s Female- and Minority-Owned Domestic Equity Portfolio operated entirely by female- and minority-owned fund managers. The portfolio consists of six small- to large-cap U.S. funds.
“This portfolio is designed for investors who want to invest their money with established and respected women- and minority-run management firms with proven track records,” Giannoulias said. “Bright Directions’ investors wanting more racial and gender diversity in their investment options will also get a healthy financial return from these funds.
“Our intent is to give smaller, female- and minority-owned and managed funds an opportunity to get business that has long been dominated by larger, far less diverse firms,” Giannoulias added.
Bright Directions’ Female- and Minority-Owned Domestic Equity Portfolio, managed by Union Bank and Trust, will consist of the following underlying funds:
Fund Manager |
Name of Fund |
Ownership |
Asset Class |
Percentage of Portfolio
|
Payden & Rygel Investment Management |
Payden Market Return |
Female |
Large Cap |
68 percent |
Ariel Mutual Funds |
Ariel Fund |
Minority |
Small/Mid Cap |
13 percent |
NCM Capital Management |
NCM Mid Cap Growth |
Minority |
Mid Cap |
9 percent |
Forward Funds/
Hoover Investment Management Co. |
Forward Hoover Small Cap Equity |
Female
|
Small Cap Growth |
5 percent |
Adelante Capital Management |
Adelante U.S. Real Estate Securities |
Minority |
REIT |
3 percent |
Fiduciary Management Associates (FMA) |
FMA Small Company Portfolio |
Female |
Small Cap Value |
2 percent |
"The facts are, when given a choice to invest with a minority money manager, our community is more likely to opt-in and save,” said John W. Rogers, Jr., Chairman & CEO Ariel Capital Management/Ariel Mutual Funds. “It is critically important that our state do all it can to encourage everyone to invest for their future and this is a terrific first step."
Bright Directions is among the top-performing advisor sold 529 savings plans in the nation. Like Illinois’ direct-sold 529 plan – the Bright Start College Savings Program – interest on investment earnings grows tax-free and qualified withdrawals are tax exempt under Bright Directions. Contributions made by Illinois residents are tax deductible up to $10,000 per year or $20,000 for married couples filing a joint return. Investors do not have to live in Illinois to enroll.
With the addition of the Female- and Minority-Owned Domestic Equity Portfolio, Bright Directions will now offer participants 41 different portfolio options, comprising 30 individual funds. Account holders may also elect to invest in any of the funds by themselves.
Bright Directions has more than $285 million in assets and includes more than 26,000 accounts. A combination of age-based, target and individual fund portfolios offered through Bright Directions enables families, working with their financial advisor, to build customized savings plans based on practical contributions and desired growth.
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