State Treasurer Denise Nappier on June 7 announced a reduction in the management fee of the Connecticut Higher Education Trust, now that the direct-sold plan exceeds $2.5 billion in assets.
"That day is here now," said Nappier. The CHET direct-sold management fee will drop by three basis points effectively, from 0.15% to 0.12%.
Nappier said she has negotiated five substantial reductions in plan management fees for the CHET direct-sold accounts during her administration, including a 40% reduction in plan management fees in the last six years.
"CHET is important not only to Connecticut families who need to save for the rising cost of college, but also to the viability of our state's economy, with an educated workforce a key factor," Nappier said in a statement.
According to Nappier, assets have risen, on average, 33% per year from $18.5 million when Nappier took office in 1999. Accounts in the direct-sold plan have increased from 4,000 to more than 105,000, her office said.