New education savings plan meets growing investor demand for ETFs

NEW YORK, June 26, 2023 – J.P. Morgan Asset Management today announced the expansion of its education investing capabilities with the introduction of Future Path 529 Plan. The firm will serve as investment manager and distributor of the Nevada-sponsored plan.

“We are honored to partner with the state of Nevada in launching Future Path 529 Plan,” said George Gatch, CEO of J.P. Morgan Asset Management. “It’s our latest solution in the education savings space and the next step in our firmwide initiative to deliver best-in-class insights and solutions needed to achieve this important life goal.”

With its heavy use of ETFs, Future Path is expected to be competitively priced versus other 529 plans offered through financial advisors. Plan portfolios invest across core and extended asset classes worldwide through J.P. Morgan’s passive BetaBuilders ETFs, along with active ETFs and mutual funds from some of the firm’s best-performing managers.

“Financial advisors and their clients are looking for more affordable investment options, particularly when investing for education,” said Steve Lundquist, head of J.P. Morgan’s U.S. advisor business. “Our goal in designing Future Path 529 Plan was to combine the cost efficiencies of ETFs with the added benefits of active management and active allocation as markets move.”

The plan’s enrollment year portfolios automatically become more conservative as college approaches, following a glide path created by J.P. Morgan’s Multi-Asset Solutions team and informed by real-life 529 participant behavior. Investors can also choose asset allocation portfolios pursuing specific risk and return objectives and individual portfolios holding single underlying strategies, including a stable value option.

Future Path 529 Plan debuts at a time of growing challenges for investors with education goals. According to data from the College Board, college costs continued to rise even during the pandemic lockdowns while financial aid declined sharply. Under new federal rules taking effect for the 2024-25 school year, many families may qualify for even less free aid, especially higher earners with multiple children in college at the same time.

“A 529 plan like Future Path is essential to closing college funding gaps and easing student debt burdens,” said Tricia Scarlata, head of education savings at J.P. Morgan Asset Management. “Families receive tax-advantaged investments with the potential to outperform taxable accounts and outpace tuition inflation. And financial advisors gain access to another tool for serving client needs and growing education assets across multiple family members and generations.”

In addition to federal income, gift and estate tax benefits, Future Path 529 Plan offers special incentives to eligible Nevada families, including matching contributions, scholarships and fee waivers. Nevada employers receive a tax credit when making matching contributions to an employee’s account. Plan assets can be used to pay any qualified education expense at accredited schools throughout the U.S. and overseas.

“Saving for education is an investment in a child’s future, and J.P. Morgan Asset Management shares our commitment to make it easy and affordable for Nevadans,” said Zach Conine, Nevada State Treasurer. “We look forward to partnering with them to bring the unique benefits of 529 plans to families across our state.”

Part of the Future Path launch involves the transition of assets held in the former SSGA Upromise 529 Plan previously managed by State Street Global Advisors. As of June 23, more than 106,000 accounts and $1.3 billion in assets were automatically converted to the most similar investment options and share classes in the new plan lineup. Ascensus will continue to serve as program manager.

For more information about Future Path 529 Plan, visit www.futurepath529.com.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $2.67 trillion (as of 3/31/2022), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information: www.jpmorganassetmanagement.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co., and its affiliates worldwide.

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