Rhode Island selected Invesco and Ascencus to manage its $7 billion CollegeBoundfund 529 program, General Treasurer Seth Magaziner announced.
The firms will replace AllianceBernstein Investments, which had overseen the fund since 2000.
According to Magaziner, Atlanta-based Invesco will provide all aspects of investment management services for both the advisor and direct plans, and marketing and sales for the advisor plan. The firm has $791.3 billion in assets under management and operates in more than 20 countries.
Newton, Mass.-based Ascensus College Savings will manage the administration of CollegeBoundfund, including recordkeeping, customer service and online functionality for account management by account owners and financial advisors.
"I am very pleased to announce that the Rhode Island Treasury will partner with Invesco and Ascensus to manage and strengthen our state's CollegeBoundfund," Treasurer Magaziner said.
CollegeBoundfund was launched in 1998 to help Rhode Islanders affordably save for college. Investments and growth earnings can be used at accredited colleges, universities, vocational school and trade schools across the nation and offer a simple way to save and invest for a child's college education. It is the seventh largest 529 college savings plan in the country, with more than 300,000 accounts and $7 billion of assets under management.
Ascensus has pledged to create 35 Rhode Island jobs and intends to open a Rhode Island office by June.
