Industry-leading plan offers flexibility for financial advisors
NEW YORK--(BUSINESS WIRE)--
BlackRock, Inc. (NYSE: BLK) announced today that its iShares 529 Plan,
managed in partnership with industry leader Upromise Investments, and
featuring 28 investment options that financial advisors can use to build
effective 529 portfolios for their clients, has received a Silver rating
in the annual Morningstar Analyst Ratings for 529 College Savings Plans.
According to Morningstar, “Arkansas' iShares 529 Plan is another Silver
medalist with inexpensive advisor-sold options. This plan includes only
exchange-traded funds, which replicate indexes yet trade like individual
stocks. Several other plans also include ETFs, or have plans to add them
to their menus, but the iShares line-up is robust and reasonably priced,
giving advisors ample choice when constructing custom portfolios for
clients.”1
“As 529 plans play an important role in financial planning, the value of
a cost-efficient and quality line-up of investment options becomes even
more important. With our plan, advisors have flexibility and diversity
of options available for them to invest their clients’ savings, with
access to investment options across asset classes,” said Sue Thompson,
Head of BlackRock’s Registered Investment Advisor Channel and Head of
the iShares Institutional Asset Management Channel.
“We know the important role that post-secondary education can play in
the lives of American families,” said Dale Ellis, Director with the
Arkansas College Savings Plans. “It’s why we do everything in our power
to stay progressive in the area of saving for college, and why we value
our work with BlackRock and Upromise for their commitment to being on
the forefront of college savings.”
This is the second time the iShares 529 Plan has earned a Silver Analyst
Rating from Morningstar, earning its first in Morningstar’s 2012 ratings
of the nation’s largest 529 Plans. As one of only two advisor-sold 529
plans to receive a Silver rating, the iShares 529 Plan stands out in a
field of 529 plans, and is viewed positively by Morningstar analysts, as
having notable advantages and being likely to outperform its peers on a
risk-adjusted basis over time.
About the iShares 529 Plan: The iShares 529 Plan, offered only
through advisors, is a nationally available college savings plan,
sponsored by the State of Arkansas, which allows families to save and
invest funds for higher education in a tax-advantaged account. It is
available through financial advisors, and was the first all-ETF 529 plan
when launched. With Exchange Traded Funds at its core, the iShares 529
Plan broke ground in the 529 plan arena by featuring attractive
benefits, including low costs and transparency. With an average
asset-based fee per portfolio of 59 bps, the iShares 529 Plan is one of
the lowest cost 529 plans in the marketplace.2 Arkansas
offers a state income tax deduction of up to $5,000 a year ($10,000 for
married couples) to families who contribute to an Arkansas-sponsored 529
Plan account.3 For more information about the iShares 529
Plan, please visit www.ishares529.com.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
September 30, 2013, BlackRock’s AUM was $4.096 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
September 30, 2013, the firm had approximately 11,200 employees in 30
countries and a major presence in key global markets, including North
and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company's website
at www.blackrock.com.
About iShares
iShares is a global product leader in exchange traded funds with over
600 funds globally across equities, fixed income and commodities, which
trade on 20 exchanges worldwide. The iShares Funds are bought and sold
like common stocks on securities exchanges. The iShares Funds are
attractive to many individual and institutional investors and financial
intermediaries because of their relative low cost and trading
flexibility. Investors can purchase and sell shares through any
brokerage firm, financial advisor, or online broker, and hold the funds
in any type of brokerage account. The iShares customer base consists of
the institutional segment of pension plans and fund managers, as well as
the retail segment of financial advisors and high net worth individuals.
Morningstar, Inc.’s Analyst Rating (e.g., Silver Rating) is
subjective in nature and should not be used as the sole basis for
investment decisions. The Analyst Rating is based on Morningstar
analysts’ current expectations about future events and therefore involve
unknown risks and uncertainties that may cause Morningstar’s
expectations not to occur or to differ significantly from what was
expected. Morningstar does not represent its Analyst Ratings to be
guarantees nor should they be viewed as a solicitation to invest.
The Morningstar Analyst Rating for 529 College-Savings Plans is the
summary expression of Morningstar's forward-looking analysis of a 529
plan. Morningstar Analyst Ratings are assigned on a five-tier scale with
three positive ratings of Gold, Silver, and Bronze, a Neutral rating,
and a Negative rating. If a plan receives a positive rating of Gold,
Silver, or Bronze, it means Morningstar analysts think highly of its
investment options and expect them to outperform over a full market
cycle of at least five years.
Morningstar evaluates 529 Plans based on the following five key
pillars: Process: Are the strategies sensible and are past successes
likely to be repeated? Are the asset-allocation and fund selection for
the age-based options based on solid research and implemented well?;
Performance: Has the plan delivered strong risk-adjusted performance,
and is it likely to continue?, People: Are the managers and
researchers directing the plan's investments skilled and
well-supported?; Parent: Is the program manager a good caretaker of
college savers' capital? Is the state managing the plan professionally?;
Price: Are the investment options a good value?
For 2013 Morningstar rated 64 529 Plans. iShares received a
Silver rating (along with 4 other plans). A Silver Rating indicates the
529 Plan has notable advantages across several, but perhaps not all, of
the five pillars-strengths that give the analysts a high level of
conviction.
For more information about the iShares 529 Plan, contact your
financial advisor, call 1-888-529-9552 or visit www.ishares529.com
to obtain a Program Description and Participation Agreement which
includes investment objectives, risks, charges, expenses and other
important information; read and consider it carefully before investing
or sending money. Upromise Investments, Inc., Co-Distributor and
Underwriter; BlackRock Investments, LLC, Co-Distributor.
If you are not an Arkansas taxpayer, consider before investing
whether your or the designated beneficiary’s home state offers any state
tax or other benefits that are only available for investments in such
state's qualified tuition program.
The iShares 529 Plan is a college tuition savings program sponsored by
the State of Arkansas and is administered by The Arkansas 529 Plan
Review Committee (Committee). Upromise Investments, Inc. (UII), and
Upromise Investment Advisors, LLC (UIA), serve as the Program Manager
and Recordkeeping and Servicing Agent, respectively, with overall
responsibility for the day-to-day operations, including marketing and
co-distribution of the iShares 529 Plan. BlackRock Investments, LLC,
also has responsibility for co-distribution of the iShares 529 Plan.
BlackRock Institutional Trust Company, N.A., serves as Investment
Manager of the iShares 529 Plan except for the Savings Portfolio, which
is managed by Sallie Mae Bank. The iShares 529 Plan’s Portfolios invest
in either (i) exchange traded funds; or (ii) a Federal Deposit Insurance
Corporation (FDIC)-insured omnibus savings account held in trust by the
Committee at Sallie Mae Bank. Upromise, Inc., UII, UIA and Sallie Mae
Bank are affiliates. Units of the Portfolios are municipal securities,
are not exchange traded funds, and the value of units will vary with
market conditions.
Investment returns will vary depending on the performance of the
Portfolios you choose. Except to the extent of FDIC insurance available
for the Savings Portfolio, you could lose all or a portion of your money
by investing in the iShares 529 Plan, depending on market conditions.
Account Owners assume all investment risks as well as responsibility for
any federal and state tax consequences.
Investing involves risk, including possible loss of principal.
BlackRock Institutional Trust Company, N.A., and BlackRock Investments,
LLC, are subsidiaries of BlackRock, Inc., none of which is affiliated
with Upromise.
© 2013 BlackRock, Inc. Upromise and the Upromise logo are registered
servicemarks of Upromise, Inc. iSHARES and BLACKROCK are
registered trademarks of BlackRock, Inc., or its subsidiaries. All other
marks are the property of their respective owners. Used with permission.
529-0290-1013
1 Fund Spy: Morningstar Names Best 529 College-Savings Plans
for 2013, Morningstar, October 22, 2013
2 Source: Financial Research Corporation.
3 Contributions to the Plan in a tax year are deductible from
Arkansas state income tax, subject to recapture in subsequent years in
which non-qualified withdrawals or a rollover out to another state’s 529
plan is made.
BlackRock, Inc.
Christine Hudacko
415-670-2687
Christine.Hudacko@blackrock.com
Melissa
Garville
212-810-5528
Melissa.Garville@blackrock.com
Source: BlackRock, Inc.