The state of Hawaii hired Vanguard as investment manager for its revamped its 529 college savings program, confirmed a spokesman for Lt. Gov. James R. “Duke” Aiona Jr. The state also hired Upromise Investments to manage the program, which has more than $40 million in assets. Upromise will provide administration and record-keeping services. Upromise and Vanguard replace Delaware Investments and First Hawaiian Bank.
“The reason for improving our program is simple: College tuition is increasing and our college savings program was not growing fast enough to meet demand,” Mr. Aiona said at a Thursday news conference announcing the changes. Upromise and Vanguard were picked because they proposed a program with an expanded investment lineup and lower costs, among other reasons, the spokesman said.
