State offering college fund without ties to fossil fuels

PROVIDENCE – The state is offering a new “socially responsible investment option” through its college investment plan CollegeBoundfund.
The $7 billion 529 fund is overseen by the General Treasurer’s Office, which is offering the new option effectively eliminating peoples’ fund exposure to fossil fuels. The new offering comes with the state’s transition to a new fund manager, Invesco, which is taking over this spring.
Seth Magaziner, the state’s general treasurer, says the new option aims to eliminate any exposure to fossil fuels “while seeking to produce competitive returns for those who choose this option.
“Climate change, human rights and a range of other issues are coming to the forefront as factors that can impact investment value,” Magaziner said.
While drawing from global portfolios that exclude oil, coal and gas producers, along with utilities that use fossil fuels, it will also “reduce exposure to investments in companies that produce tobacco, firearms and other products that cause social concern,” according to a press release.
Invesco, which won a state bid to operate the fund, has $791 billion in assets under management. Created in 1998, CollegeBoundfund is design to help people save for college.