PROVIDENCE – New options have been added to the Rhode Island CollgeBound Fund, the state’s 529 category Internal Revenue tax incentive savings plan for parents or other adults to save for a child’s higher education expenses.
New investment options have been added, as well as a new low-fee, age-based alternative, according to a Sept. 25 announcement by Rhode Island General Treasure Gina M. Raimondo.
"These improvements mark the continuation of a thorough process to help Rhode Islanders have the best options when saving for college," Raimondo said. "By bringing people together, we were able to create a stronger investment line-up that will better support families saving for college."
The changes we’re made in partnership with Pension Consulting Alliance.
The Rhode Island College Bound Fund is managed by the New York firm of AllianceBernstein, which was criticized for its management of the fund by the Chicago-based investment research firm Morningstar in a June report. Morningstar said the fund was underperforming and expressed concern about high staff turnover at AllianceBernstein.
“Our investment management is carefully overseen by the office of the general treasurer and the State Investment Commission,” Jennifer DeLong, senior vice president and managing director for multi-asset product management at AllianceBernstein Investments said in the Sept. 25 announcement.
The changes have to be approved by the Rhode Island Higher Education Assistance Authority.