Evergreen Investments and OppenheimerFunds will jointly assume responsibility for State Street subsidiary Schoolhouse Capital’s management of New Mexico’s 529 college savings plan.

State Street announced last month that it would exit the 529 college savings plan business, of which it ran all five of the offerings in New Mexico and one in Oregon. As of Jan. 31, the two firms will run all aspects of New Mexico’s 529 plan, including investment management, distribution, operations and service. Oppenheimer and Evergreen had previously served as distributors of Schoolhouse Capital’s 529 plans.

New Mexico made the selection last week during a public meeting of its education trust board.

"We are excited about this management transition and look forward to continuing to provide clients with a highly flexible, tax-advantaged savings vehicle that can help combat the rising cost of higher education," said Evergreen CEO Dennis Ferro in a statement.

Oppenheimer said it is committed to growing its 529 assets, noting how this past February, Oregon selected it to replace Strong Capital Management on two of its adviser-sold 529s. Oppenheimer now also runs the state’s direct-sold 529 plan.

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