A PROVEN PLAN COMMITTED TO EXCELLENCE
What are the benefits of Legg Mason’s Scholars Choice 529?
Solid results. Our impressive track record has helped set the standard for investment excellence. Since education funding is a long-term proposal, we consider our results through a long-term lens. The team at Scholars Choice has delivered solid results quarter after quarter and year after year.1
Low fees. Make the most of your contribution. Our low fees help put more of your savings to work. We’re proud to have been recognized for having the third lowest asset-based fees among all actively-managed advisor-sold plans. (Source: Strategic Insight “529 College Savings Quarterly Fee Analysis – Second Quarter 2016.”)
Our portfolios are actively managed and monitored by experts. You have access to our independent investment managers. Smart portfolio construction from Legg Mason diversifies your investment across asset classes and management styles through carefully selected mutual funds with vigilant attention to risk, and the flexibility to make portfolio adjustments as market conditions change.
The professionals behind the portfolios. A wide variety of investment options are overseen by our family of independent investment managers, plus highly-regarded external managers. Meticulous, open-minded oversight is co-led by Wayne Lin and Thomas Picciochi of QS Investors – which has been a key strength in delivering outstanding, risk-managed returns for Scholars Choice account owners.
Equity Fund Managers
Royce & Associates
Thornburg Investment Management
Templeton Global Advisors
Everyone saves a little differently.
Our investment options vary based on investment approach and degree of risk, so you can save at your comfort level.
Here’s the low-down on our lineup.
The asset allocation of these options is adjusted according to a predetermined schedule, gradually shifting from more aggressive in early years to more conservative over time.
- Age-Based (seven portfolios) – The allocation is determined based on the age of the Beneficiary.
- Years to Enrollment (five portfolios) – The allocation is determined based on the number of years to the Beneficiary’s enrollment date.
Static multi-fund allocations (six portfolios)
The asset allocation will stay the same as long as you remain invested. The investment option can always be exchanged for another — up to twice per calendar year. Choices range from aggressive to conservative.
Individual fund options (five portfolios)
Want added flexibility to build your own portfolio or complement another strategy by emphasizing a particular asset class? Consider our Individual-Fund options, each of which invests 100% of its assets in a single underlying fund.
- U.S. Aggressive Equity
- U.S. Core Equity
- U.S. Small Cap Equity
- International Equity
- Global Fixed Income
Work with a Financial Advisor for Sound Guidance.
A trusted financial advisor has the investment expertise and market perspective to help you achieve your college funding goals and provide a clear understanding of 529 plan features.
A guide to the strategies and wide variety of investment options of Scholars Choice College Savings (529) accounts. Includes answers to frequently-asked questions and future college cost projections.
1 All Savingforcollege.com rankings are as of September 30, 2015 and are based on the universe of 30 advisor-sold plans for Class A share performance (including maximum sales charges). The portfolios within the plans are compared and ranked based on published investment returns. The plan’s composite ranking is determined by the average of its percentile ranking. The ranking is based on short- and long-term performance (i.e., rolling 1-, 3-, 5- and 10-year periods). The program ranked 5, 4, 2 and 7 for the quarterly rolling 1-, 3-, 5- and 10-year periods, respectively.
Past performance is no guarantee of future results. The performance and rankings discussed are inherently limited and are not indicative of longer-term performance. Current performance may be lower or higher than performance results used for these rankings, resulting in different rankings that may be lower than those shown. Market volatility, interest rate changes and economic events, among other factors, can affect an investment’s short-term returns.
Savingforcollege.com derives the rankings using each plan’s relevant portfolio performance in seven unique asset allocation categories: 100% Equity, 80% Equity, 60% Equity, 40% Equity, 20% Equity, 100% Fixed and 100% Short Term. The plan’s composite ranking is determined by the average of its percentile ranking in these categories. Within each category, portfolios are compared and ranked based on published investment returns. Separate rankings are produced for 1-, 3-, 5- and 10-year periods. In addition, two versions of rankings for each performance period are produced: one based on performance without sales charges and the other based on performance with maximum sales charges. Please visit Savingforcollege.com for more information about the ranking. Additional unit classes may exist for each plan ranked.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.
An investment in the Cash Reserve Portfolio is not a bank deposit and is not insured or guaranteed by the FDIC or any other governmental agency. There is no assurance that the Cash Reserve Portfolio will be able to maintain the value of its units at $1 per unit. It is possible to lose money by investing in this option. The Cash Reserve Portfolio will not seek capital appreciation and may underperform other investment options.
While the Cash Reserve Portfolio will invest all of its assets in a money market mutual fund and will value its units based on the underlying money market fund share value, the Cash Reserve Portfolio itself is not a money market mutual fund.
IMPORTANT INFORMATION: An investor should consider the Program's investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement, which contains more information, should be read carefully before investing. If an investor and/or an investor's beneficiary are not Colorado taxpayers, they should consider before investing whether their home states offer 529 plans that provide state tax and other benefits only available to state taxpayers investing in such plans.
Blended Benchmark performance is shown for illustrative purposes only. The benchmark for each Investment Option is a hypothetical blend of unmanaged indices for the underlying asset classes corresponding to the Investment Option's target allocations within each asset class. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges. An Investment Option's benchmark may change over time to reflect changes in an asset class benchmark, the Investment Option's underlying funds and/or the Investment Option's target allocations to such funds. When an Investment Option's benchmark changes, the benchmark’s new composition is utilized to calculate benchmark performance for periods from and after such change. Benchmark performance for periods prior to the change is not recalculated or restated based on the benchmark’s new composition.
Investments in the Scholars Choice College Savings Program are not insured by the FDIC or any other government agency and are not deposits or other obligations of any depository institution. Investments are not guaranteed by the State of Colorado, CollegeInvest, QS Investors, LLC, Legg Mason Investor Services, LLC, or Legg Mason, Inc. or its affiliates and are subject to investment risks, including loss of principal amount invested.
Legg Mason, Inc., its affiliates and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matter(s) addressed by these materials to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Scholars Choice® is a registered service mark of CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks. Administered and issued by CollegeInvest, State of Colorado. QS Investors, LLC is the Investment Manager and Legg Mason Investor Services, LLC is the primary distributor of interests in the Program; together they serve as Manager of the Program. QS Investors, LLC, ClearBridge Investments, LLC, Brandywine Global Investment Management, LLC, Royce & Associates, LP, Western Asset Management Company, and Legg Mason Investor Services, LLC are Legg Mason, Inc. affiliates. Thornburg Investment Management, Inc. and Templeton Global Advisors Limited are not affiliated with Legg Mason Inc. and its affiliates.
Audited financial statements for the Scholars Choice® College Savings Program, including balance sheets, income statements, cash flow statements, and the Management's Discussion and Analysis (MDA), may be viewed at https://www.collegeinvest.org/about-us/financial-statements.