The management fee for the Connecticut Higher Education Trust has been reduced now that the direct-sold plan has hit $2.5 billion in assets.
Connecticut State Treasurer Denise L. Nappier said the direct-sold management fee for the trust, known as CHET, has been lowered by three basis points, or 20 percent, from 0.15 percent to 0.12 percent effective immediately
According to Nappier, CHET offers some of the lowest fees in the country for a state-sponsored college savings plan, ranking in the top quartile – which means its fees are in the lowest 25 percent — of all direct-sold 529 plans nationwide. During her administration, Nappier said she has negotiated five substantial reductions in plan management fees for the CHET direct-sold accounts, including a 40 percent reduction in plan management fees in the last six years alone.
At the start of her administration, fees were 1.55 percent of assets for all participants; today the combination of plan management and asset-based fees for the most common investment option range from .35 to .48 percent of assets.
