New Low-Fee Passively Managed Investment Option Accepted
PROVIDENCE, R.I. - General Treasurer Gina M. Raimondo today announced additional enhancements to Rhode Island's CollegeBoundfund, the state's 529 plan. In addition to redesigning the menu of existing investment options, a decision was made to create a new passive age-based alternative, at the lowest cost available to Rhode Island investors.
"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."
After a thorough review in partnership with Pension Consulting Alliance (PCA) the following changes to the entire program were approved by the State Investment Commission:
• Replacing a number of individual, under performing funds
• Creating a new, low-fee passive age-based glide path; for Rhode Island residents, this option will be the lowest-cost currently available.
"Our investment management is carefully overseen by the office of the General Treasurer and the State Investment Commission," said Jennifer DeLong, SVP and Managing Director, Multi-Asset Product Management, AllianceBernstein Investments. "Since Treasurer Raimondo came into office we have worked closely to make CollegeBoundfund even stronger with more solutions to help Rhode Island families."
These accepted changes will next be presented to the Rhode Island Higher Education Assistance Authority for approval.