Oregon College Savings Funds Selects New Manager
The Oregon College Savings plan has changed its investment manager to TIAA-CREF after a Thursday meeting with state officials. This long-awaited switch from the previous manager, Oppenheimer Funds, is a relief for the state in an economically challenging time.
Treasurer Ben Westlund said in a Thursday press release that the firm’s low fees, flexibility in designing a plan that fits Oregon’s needs and willingness to put a full-time representative in the state were factors in the decision to choose TIAA-CREF for this position.
TIAA-CREF is a non-profit financial investing company specializing in retirement plans for a multitude of business and academic fields. The new management company will charge $5.20 for every $1,000 in investors’ accounts at the end of the year, the lowest fees of all the proposals, as well as Oppernheimer Funds. In addition, it will provide at least $500,000 a year to promote the plan and investment strategy.
In April, the state filed a lawsuit against Oppenheimer Funds due to their faulty management strategy, leading the state to lose $36 million in investments. TIAA-CREF, which is also hoping to assist in the recovery of the lost money, is estimated to gain the Oregon College Savings funds in around six to eight months.
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