Arizona has decided to extend its 529 college savings plan contract with Waddell & Reed for three years, principally because of strong performance, competitive fees and investment choices, The Kansas City Star reports.

Besides the age-based portfolios Waddell has previously offered, it will now include its Ivy Funds. The investment firm is one of three in the Arizona plan.

Morningstar ranked Waddell’s 529 plan as one of the five worst in the nation, not because of performance but because of fees of 1.5% to 1.6%, which it has since halved.

“They are our most successful provider, and, with the addition of the Ivy Funds, will offer even more choices for our investors,” said April Osborn, executive director of the Arizona Commission for Postsecondary Education.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.