On the heels of such states as New York and Virginia, Wisconsin will include a stable-value investment option in EdVest, its official 529 education savings plan. The Wisconsin College Savings Program Board will also reduce fees and expenses effective immediately.

EdVest manager Strong Capital Management will launch the Stable Value Portfolio in early December. Strong was brought in to manage the program about a year and a half ago. Some six new investment options were added via Strong at that time. The new portfolio will be the most conservative for investors who choose the age-based investment option.

"Many families have been looking for a conservative investment alternative to the uncertain markets. This new stable value portfolio will meet those needs," says Wisconsin State Treasurer Jack C. Voight, in a release.

He added that the changes will be made in time for families to make their contributions before year-end to take advantage of the state tax deduction. The deduction, which can reach $3000 per year, was extended to grandparents earlier this year.

Marty Olle, EdVest's program manager said the plan's rapid growth in the past year has allowed for the reduction in fees and expenses, and noted that further growth could allow for more cuts.

The expense ratios will range from 0.90 percent for the Stable Value Portfolio to 1.15 percent for other investment options. The enrollment fee has been cut to $10 from $20. In addition, the pricing structure for accounts opened through advisors, some one-third of EdVest investors, will be adjusted to remain competitive with other national 529 plans.  

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