OppenheimerFunds announced Monday its 529 business has reached $1 billion in assets under management, citing its customization features, competitive expense ratios and solid investment performance.
The New York fund complex serves as the program sponsor for the direct-sold Education Plan and the advisor-sold Scholar's Edge in New Mexico, as well, in Oregon, as the direct-sold Oregon College Savings and the advisor-sold OppenheimerFunds 529 plans.
Additionally, the company offers funds through other state plans such as Citigroup's Brightstart plan in Illinois, Merrill Lynch's NextGen plan in Maine, John Hancock's Freedom 529 plan in Alaska and Colombia's 529 plan in Nevada.
Despite its increasing popularity, many people are still not focusing on college savings. According to recent research conducted by OppenheimerFunds, 83% of those surveyed have spent more money on children's clothing and toys, rather than on college education.
OppenheimerFunds said it is committed to growing its 529 business through a multi-state strategy paired with investment-only mandates. It plans to continue to invest in product development ideas that will make its college savings offerings "unique and value-added."