ScholarShare Investment Board hired TIAA-CREF Tuition Financing as program manager for California’s direct-sold 529 college savings plan, said Joe DeAnda, spokesman for California state Treasurer Bill Lockyer, who is chairman of the board that oversees the $4.4 billion program.
The board selected TIAA-CREF following an RFP issued March 23. Incumbent manager Fidelity Investments’ contract is due to expire Nov. 11; Fidelity did not rebid, Mr. DeAnda said.
In addition, the board directed staff to negotiate a contract with TIAA-CREF to manage its $300 million advisor-sold 529 plan.
TIAA-CREF was selected because of the broader menu of investment options, a $10 million annual marketing program and lower fees, Mr. DeAnda said. TIAA-CREF also will be spearheading a scholarship program for moderate- to lower-income students to encourage their participation in the plans, he said.
