Nebraska Educational Savings Trust (NEST) Announces Investment Changes,
Lowered Fees in Three of Its College Savings Plans
Lowered Fees and Adjustments to Underlying Funds Offer More Options for Families

Nebraska Educational Savings Trust is excited to announce investment changes to the NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, and the TD Ameritrade 529 College Savings Plan, effective April 29, 2016.

The investment changes are intended to build on the strong lineup of investment options that already exist in the Plans. Changes include lowering costs, adjusting allocations to underlying investments in the Age-Based and Static Investment Options, and changing underlying investments.

“As NEST Savings Plans continue to grow, we are looking to make these plans as efficient and cost-effective as possible,” said Nebraska State Treasurer Don Stenberg. “Not only do these changes involve lowered fees, but the replaced underlying investments and fine-tuned allocations could yield even better performance than our investors currently enjoy.”

“We understand that our customers want to save as much as possible to fund their higher education goals,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “These improvements reflect our focus on continuously improving NEST and reinforce the service we already provide to our investors nationwide.”

Highlights of the changes for each plan are the following:

LOWERED FEES

REPLACED UNDERLYING INVESTMENTS

  1. Replaced SPDR Barclays International Treasury Bond ETF with DFA World ex-US Government Fixed Income adding a new fund manager to the NEST lineup while reducing volatility. (All three Plans)
  2. Substituted Goldman Sachs Prime Obligations Money Market Fund with the Goldman Sachs Financial Square℠ Government Money Market Fund due to upcoming money market reform changes. (All three Plans)
  3. Replaced Vanguard Inflation-Protected Securities with Vanguard Short-Term Inflation-Protected Index to reduce interest rate sensitivity. (Direct Plan and TD Ameritrade 529 College Savings Plan)
  4. Replaced Dreyfus Bond Market Index Basic with iShares Core US Aggregate ETF to increase performance and reduce cost. (Advisor Plan Only)
  5. Replaced American Century Inflation-Adjusted Bond with vanguard Short-Term Inflation-Protected ETF to reduce interest rate sensitivity. (Advisor Plan Only)

ADDED ONE INDIVIDUAL INVESTMENT OPTION

The American Funds The Income Fund of America® (AMEFX) has been added as an Individual Investment Option to the Advisor Plan to offer a fund that focuses on income generation from both stocks and bonds.

FINE TUNED ALLOCATIONS TO UNDERLYING INVESTMENTS IN AGE-BASED AND STATIC OPTIONS

The following changes will affect the three Plans:

NEST 529 is consistently recognized by national experts, including a 5 Caps rating (highest rating) from Savingforcollege.com for the NEST Direct and NEST Advisor Plans. In addition, the NEST Direct Plan is ranked one of the nation’s top ten performing 529 college savings plans for last year in a recently released nationwide analysis by SavingforCollege.com.

For more information about NEST, visit NEST529.com and treasurer.nebraska.gov.

About NEST

NEST is a tax-advantaged 529 college savings plan and provides four plans to help make saving for college simple and affordable: NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, the TD Ameritrade 529 College Savings Plan, and the State Farm College Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 261,000 accounts, including 84,000 in Nebraska. Visit NEST529.com and treasurer.nebraska.gov for more information.

About First National Bank of Omaha

First National Bank of Omaha is a subsidiary of First National of Nebraska. First National of Nebraska and its affiliates have more than $21 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.

Investments Are Not FDIC Insured* · No Bank, State or Federal Guarantee · May Lose Value
*Except the Bank Savings Individual Investment Option
  • Jana Langemach
  • Director of Communications
  • 402-471-8884