"The addition of the 100% equity fund represents the next step for Learning Quest. While this fund is not for every investor, it does speak to those investors who have a higher risk tolerance and who are seeking potentially higher returns," said Jenkins. "This addition simply means that investors have more options. It is that simple. Investors should have better control over the destiny of their money and that is what I hope to accomplish by adding this to the portfolio of options. At the end of the day, I hope to enable more children to seek a higher education and this option will help make that a reality."

Learning Quest is the comprehensive 529 college investing program administered by Kansas Treasurer Lynn Jenkins, CPA, and managed by American Century. Learning Quest, which is available nationwide, allows investors to invest for education costs and has some of the most attractive features in the country. Learning Quest accounts are available for purchase through American Century, Charles Schwab & Co., Inc. or an investment advisor.

Unlike the existing Learning Quest asset allocation portfolios, Learning Quest 100% Equity contains no bond or money market funds, stays fully invested in equity funds and doesn't rebalance over time. However, the underlying funds creating the portfolio will be actively managed and reallocated on an annual basis to adjust, if necessary, the established fund mix within the portfolio.

The Learning Quest 100% Equity portfolio's objective is long-term capital appreciation through an optimal mix of growth, value, blend and international funds. The portfolio stays fully invested in a combination of eight American Century funds: Select (15%), Growth (24%), Income & Growth (10%), Large Company Value (18%), Equity Income (5%), Vista (5%), Small Company (5%) and International Growth (18%).

"Historically, most of the equity market's returns have ocurred on relatively few days of trading," said Jeff Tyler, senior vice president and senior portfolio manager over Learning Quest. "By staying fully invested in the new 100% Equity portfolio, investors who understand the risk-reward trade-off associated with aggressive investing have a higher probability of taking advantage of upside market shifts."

In addition to the static all equity and money market options, Learning Quest offers a series of 19 portfolios spread across three investment tracks: Conservative, Moderate and Aggressive. Account owners choose a track based on risk tolerance and then select a time horizon. As the beneficiary gets closer to needing the money for college, each portfolio - which also is comprised of American Century funds - automatically adjusts to a more conservative mix, unlike the 100% Equity portfolio, which is static and remains fully invested in equities.

Learning Quest offers the following potential benefits:

• Kansas taxpayers can receive an adjusted gross income tax deduction on their state filing of up to $2,000 ($4,000 for couples) per beneficiary, per year
• No federal income taxes on qualified withdrawals through at least 2010*
• No state income taxes on qualified withdrawals
• Any U.S. citizen or resident alien can open an account or be a beneficiary
• Students can attend any qualified educational institution, which generally includes U. S. post-secondary schools such as public universities, private universities, community colleges and vocational or technical schools
• Any account earnings used for qualified expenses grow tax-free
• High contribution limit: Currently $235,000 per beneficiary
• No maximum income limits to open or contribute to an account
• Account can be transferred to an eligible family member of the current beneficiary
• Contributions now can be made to both a 529 plan and a Coverdell Education Savings Account in the same year for the same beneficiary*
• Individual contributions of up to $55,000 per beneficiary ($110,000 for contributions from a married couple) in a year may be free from federal gift tax, if no additional gifts are made to the same beneficiary, during the following four years
• The account balance is removed from account owner's estate but the account owner maintains control over the account
• Professional investment management

Treasurer Lynn Jenkins, CPA is a former State Representative and Senator from Topeka and was elected as the 37th State Treasurer on November 5, 2002. For more information about the Kansas 529 program or any of the programs offered by Treasurer Jenkins, please access her Web page at www.kansasstatetreasurer.com.

* Changes resulting from the 2001 Tax Act are effective through Dec. 31, 2010, and may or may not be extended past that date with further legislative action.

As with any investment, withdrawal value may be more or less than original investment. An account owner investing in a 529 plan outside of the state in which they pay taxes may lose any tax benefits offered by their own state's plan. Please consult the handbook for additional information about applicable fees.

Learning Quest and the Schwab 529 College Savings Plan are administered by Kansas State Treasurer Lynn Jenkins, CPA. Managed by American Century Investment Management, Inc. Notice: Accounts established under either Learning Quest or the Schwab 529 College Savings Plan and their earnings are neither insured nor guaranteed by the State of Kansas, the Kansas State Treasurer, American Century or Charles Schwab & Co., Inc. Learning Quest is distributed by American Century Investment Services, Inc. Accounts established under the Schwab 529 Plan are domiciled at American Century and not at Schwab.