The International Scholarship Foundation, the sponsor and promoter of the USC Education Savings Plans, is changing the plan’s investment management.

After a thorough analysis of the plan, the ISF’s board of directors resolved that an immunized investment management approach was now considered more appropriate to meet the plan’s investment objectives and its subscribers. Immunization involves closely matching the cash flows from the plan’s investments with the projected net cash flows out of the plan. This approach is intended to reduce the risk from changes in interest rates.

Previously, the investments held in the plan had been actively, but conservatively, managed. Active management strategies attempt to capitalize on expectations of interest rate movements and therefore tend to have greater exposure to interest rate risk. A continuing goal of the ISF is to protect subscribers’ contributions while generating income to help pay for their children’s post-secondary education.

In conjunction with adopting an immunization investment management approach, the ISF has appointed TD Asset Management Inc. to be the investment manager for the plan, replacing the previous third-party investment.