Rhode Island's $7.4 billion 529 plan, CollegeBoundfund, Providence, hired Invesco and Ascensus College Savings to manage and administer the plan, said David Ortiz, spokesman for state Treasurer Seth Magaziner.
Invesco will manage the investments of the plan, providing all aspects of investment management services for both the adviser and direct plans, and marketing and sales for the adviser plan.
Meanwhile, Ascensus College Savings will administer the CollegeBoundfund, including record keeping, customer service and online functionality for account management by account owners and financial advisers.
Effective July 1, 2016, Invesco and Ascensus replace the fund's current manager, AllianceBernstein, which provided both investment management and administration.
“We are very proud of our longtime partnership with the state to help families across the country save for college,” said Robert Keith, head of the global client group for AllianceBernstein, in a separate news release. “We appreciate the opportunity we were given to support so many families in their important pursuit of higher education.” AllianceBernstein spokesman Jonathan Freedman declined to comment beyond what was in the news release.
The transition of management is pending the approval of Rhode Island's State Investment Commission and successful contract negotiations.