Milliman's experience with college-savings plans began with the inception of guaranteed savings programs in the late 1980s. As college savings programs expanded, we helped design many of the first 529 programs. Our services focus on helping plan trustees lower costs and maximize returns.
We've developed sophisticated tools for evaluating fund performance relative to peers and industry benchmarks. We also can compare plan performance to other individual plans. Our tools construct comparisons of individual funds, groups of funds, or overall plan performance.
Improving plan performance
Our performance-measurement process delivers information relevant to every aspect of plan management—from evaluating individual funds, to asset allocation, to fund-manager effectiveness. Based on this data, Milliman experts can advise trustees on whether a plan's performance could be improved by altering fund mix or changing fund managers.
In this still-young sector, Milliman experts are at the leading edge of key issues, including:
- performance measurement
- cost cutting
- tax-law changes
- potential industry consolidation
- trends in investment style
- age-based investing strategies
As new approaches arise, Milliman provides its clients counsel on the implications and practical advice on implementation.
Insight on program manager selection
Our objectivity, experience and industry knowledge are particularly valued by clients in the current rapidly evolving industry climate. Milliman is a trusted source for guidance during the management-contract rebidding process, assisting with due diligence and evaluating manager performance. In some cases, this process has led to change, in others the current manager was retained. Milliman's focus is helping clients determine their ideal outcomes.
Recently, Milliman vetted program-manager applicants for a state-plan client that had a contract ready for renewal. Our recommendations led plan trustees to dismiss the existing manager and instead share oversight between two major fund-management firms. Plan trustees anticipate better returns at lower cost with the new structure.
