Whatever might have been said about Alexi Giannoulias last year, he’s certainly getting off to a fine start as state treasurer. First it was cleaning up the Cellini hotel mess, now it’s a much better deal - and a bunch of new scholarships to boot - for the college savings program Bright Start.
Until recently, the $2.2 billion fund was managed by Baltimore-based Legg Mason, whose underperfoming funds placed the Illinois education savings program 48th out of 49 in a ranking of college savings programs, according to Savingforcollege.com, an independent analysis firm based in New York. Bright Start has been running for about seven years.
Following a competitive-bid process, the state signed a seven-year contract with Oppenheimer Funds Inc., headquartered in New York, which will lower existing fees and offer three times as many portfolio options for families, said state Treasurer Alexi Giannoulias.
For example, under the new program, families contributing $3,000 a year with an 8 percent rate of return will save a total of more than $5,000 in fees by the time their child is 18, according to Giannoulias’ office.
The transfer will occur over the next few months at no cost to the families or the state; Oppenheimer will absorb all transaction costs, Giannoulias added. […]
Also included in the contract with Oppenheimer is the formation of a $3.5 million scholarship fund for Illinois students. Giannoulias said his office would work over the next few months on the qualifications for the scholarship money, set to be around a total of $500,000 a year.
I don’t usually hand out praise, but I can'’t say enough positive things about Giannoulias right now. He’s vastly exceeding expectations so far, and the reports that I get from inside the office are that he’s running a highly professional show and resisting entreaties from political types to install their people.