On Dec. 10, American Skandia will launch its Nevada-based 529 plan in partnership with Strong Capital Management. The American Skandia College Savings Program will be available in A- and C-class shares and is designed to offer a variety of investment style options.
The State of Nevada selected Strong to administer its plan but required that the firm partner with a load complex to provide a multi-manager structure and expand distribution.
Investors can choose from aggressive, balanced, or conservative portfolios in either a set style track or one that adjusts its allocations as the beneficiary gets closer to college. The investment minimum is $250.
Skandia hopes to tap into a blossoming market, citing projections of growth of up to $100 billion over the next several years.
"Working with Strong will enable us to bring a multi-managed 529 product to the market," said Michael Murray, director of national markets for mutual funds, in a statement.