NEW YORK: J.P. Morgan Asset Management launches New York's 529 Advisor-Guided College Savings Program

May 09, 2012

New York, N.Y., May 9, 2012 - J.P. Morgan Investment Management, Inc, an affiliate investment advisor under J.P. Morgan Asset Management, assumed the role of investment manager for New York's 529 Advisor-Guided College Savings Program this week as more than 135,000 participant accounts were transferred to the new platform.

The Advisor-Guided Plan (formerly New York's 529 College Savings Advisor Plan) helps financial advisors and plan participants manage college savings in a tax-efficient way through broadly-diversified, investments. Through the Plan, participants can gain exposure to a variety of asset classes and strategies while continuing to benefit from tax and estate planning advantages. J.P. Morgan's wide-reaching distribution network allows investors to access the Plan through more than 128,000 financial advisors nationwide including any of Chase's 1,000 branches throughout the state of New York.

"We are thrilled to have added the Advisor-Guided Plan to the broad range of investment strategies we manage and believe our firm wide commitment to the program will help investors prioritize and take advantage of the benefits of this important college savings vehicle," said George Gatch, Global CEO of J.P. Morgan Funds.

The underlying asset allocation and glide path construction for the Advisor-Guided Plan investments are managed by J.P. Morgan's Global Multi-Asset Group (GMAG), a team of portfolio managers responsible for more than $74.6 billion in assets under management globally. Participants can choose between 29 customized investment options comprised of:

  • Age-based Portfolios: Assets start in a diversified portfolio appropriate for the account beneficiary's age. As the beneficiary gets older and his/her investing timeframe shortens, the portfolio mix automatically becomes more conservative.
  • Asset Allocation Portfolios: Similar to the age-based option, these portfolios are broadly diversified across asset classes and managers and are mapped to specific investment goals. The chosen asset mix stays the same until participants with the help of their advisors decide to switch to a different investment pursuing a different objective.
  • Individual Portfolios: For maximum flexibility, participants and advisors can select their own mix of global equity, fixed income, alternative and money market investments. Investments can include a mix of J.P. Morgan single asset class portfolios and/or third-party exchange traded funds.

"College savings programs are vital for investors looking to minimize taxes, maximize savings and meet the challenging task of funding their children's college education," said Michael Conrath, 529 Program Director, J.P. Morgan Asset Management. "We are confident that participants in New York's Advisor-Guided Plan will benefit from the investment insights and client service that J.P. Morgan offers. Our team is looking forward to helping advisors grow their 529 businesses, and helping families save for their children's futures."

From May 4, 2012 to May 7, 2012, J.P. Morgan Asset Management in partnership with Upromise Investments, the Plan's program manager, transitioned more than $2 billion in assets from the Plan's former manager, Columbia Management, to the new Advisor-Guided Plan. The assets were automatically converted to new investments most closely matching the current holdings and share classes of each existing investment. The transfer was not subject to any taxes, penalties, sales charges or account fees. It also does not count toward a participant's once-per-calendar-year limit on changing investments. Upromise Investments will remain the overall program manager for the Advisor-Guided Plan and New York's 529 College Savings Program Direct Plan. The Vanguard Group, Inc. remains the investment manager for the Direct Plan.

For more information on New York's Advisor-Guided College Savings Program, visit:

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About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under supervision of approximately $2 trillion and assets under management of $1.3 trillion (as of 3/31/12), 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. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.3 trillion and operations worldwide. Information about JPMorgan Chase & Co. is available at

New York's 529 Advisor-Guided College Savings Program

New York's 529 Advisor-Guided College Savings Program currently has more than $2 billion and more than 135,000 accounts. A New York State taxpayer who is also the account owner may be eligible for a deduction from New York State taxable income of up to $5,000 (or $10,000 for married couples filing jointly).* It also provides a number of benefits for families saving for college, including tax-free withdrawals when used for qualified higher-education expenses.**


* Up to $10,000 is deductible from New York State taxable income for married couples filing jointly; single residents can deduct up to $5,000 annually. May be subject to recapture in certain circumstances – including rollovers to another state's plan or non-qualified withdrawals.

** Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain withdrawals are subject to federal, state, and local taxes.

Important Legal Information


Before you invest, consider whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in that state's qualified tuition program.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Advisor-Guided Plan. Neither the State of New York nor its agencies insures accounts or guarantees the principal deposited therein or any investment returns on any amount or investment portfolio.

Upromise Investments, Inc. and Upromise Investment Advisors, LLC serve as Program Manager and Recordkeeping and Servicing Agent, respectively, and are responsible for day-to-day operations, including effecting transactions. J.P. Morgan Investment Management Inc. serves as the Investment Manager. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. JPMorgan Distribution Services, Inc. markets and distributes the Advisor-Guided Plan. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC.

New York's 529 College Savings Program includes two separate 529 plans. The Advisor-Guided Plan is sold exclusively through financial advisors who have entered into Advisor-Guided Plan selling agreements with JPMorgan Distribution Services, Inc. You may also participate in the Direct Plan, which is sold directly by the Program and offers lower fees. However, the investment options available under the Advisor-Guided Plan are not available under the Direct Plan. The fees and expenses of the Advisor-Guided Plan include compensation to the financial advisor. Be sure to understand the options available before making an investment decision.

For more information about New York's 529 Advisor-Guided College Savings Program, you may contact your financial advisor or obtain an Advisor-Guided Plan Disclosure Booklet and Tuition Savings Agreement at or by calling 1-800-774-2108. This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider it carefully before investing.

Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.

J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.

Copyright © 2012 JPMorgan Chase & Co. All rights reserved.

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