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Data & Research December 20, 2012
529 Plan Assets Reach $163B
Assets in 529
savings plans were an estimated $163.7 billion as of the third quarter of 2012,
according to Financial Research Corporation.
Reported by Jill Cornfield
The education savings plans saw a 3.9% increase from the previous quarter, which ended with assets of $157.5 billion, and a 21.6% increase from the same quarter a year ago, when assets were $134.6 billion, according to Financial Research Corporation, a division of Strategic Insight, an Asset International company.
In contrast to other products, long-term mutual fund and exchange-traded fund (ETF) assets (excluding affiliated fund-of-funds) increased 5.9% over the past quarter, from $9.592 trillion, to $10.161 trillion, and increased 22% over the past year, from $8.328 trillion. Estimated 529 plan net outflows were $800 million in the third quarter, compared with outflows of $400 million in the same quarter a year earlier, which means investors are successfully using 529 plans for their intended purpose of QHEE (qualified higher education expenses).
Total assets of 529 prepaid plans reached an estimated $22.069 billion as of the third quarter, a 2% increase from second-quarter assets of $21.636 billion and a 9.6% increase from assets of $20.131 billion in the third quarter a year earlier.
Total 529 prepaid plan assets were an estimated $22.069 billion as of the third quarter, a 2% increase from second-quarter assets of $21.636 billion and a 9.6% increase from assets of $20.131 billion in the third quarter a year earlier.
When analyzing only the ten open 529 prepaid plans, assets increased 1.2% in 3Q12 and 11% since 3Q11. The total number of active accounts for 529 prepaid plans was 1,372,270, a 1.1% decrease from 2Q12 active accounts and a 0.2% increase since 3Q11.