State Street Corp. said Tuesday that it will quit the 529 college savings market on Jan. 31.
The Boston banking company announced an agreement to assign its New Mexico 529 college savings program management business, conducted by its Schoolhouse Capital unit, to two distribution partners - Wachovia Corp.'s Evergreen Investments and OppenheimerFunds Inc., which is majority-owned by Massachusetts Mutual Life Insurance Co.
The agreement was approved by a unanimous vote of the Education Trust Board of New Mexico at a public meeting Nov. 30.
In a statement of its third-quarter earnings in October, State Street announced its intention to leave the 529 college savings program management business because its scale was insufficient to support the company's investment..
State Street has $9 trillion of assets under custody and $1.2 trillion of assets under management.
Evergreen is to be program manager for the Arrive Education Savings Plan and the CollegeSense Plan, two of New Mexico's seven plans. Dennis Ferro, Evergreen's CEO, said in a press release that it plans "to make a number of enhancements … including new underlying funds and the addition of lower-cost mutual funds."
