Invesco, Ascensus selected to manage $7B CollegeBoundfund

GENERAL TREASURER Seth Magaziner said investments in the $7 billion CollegeBoundfund 529 savings program will be managed by Invesco Ltd. He said Ascensus College Savings will oversee its administration. / PBN FILE PHOTO/MICHAEL SALERNO
GENERAL TREASURER Seth Magaziner said investments in the $7 billion CollegeBoundfund 529 savings program will be managed by Invesco Ltd. He said Ascensus College Savings will oversee its administration. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Investments in the $7 billion CollegeBoundfund 529 savings program will be managed by Invesco Ltd., and Ascensus College Savings will oversee the program’s administration, General Treasurer Seth Magaziner announced Wednesday.

According to a news release from Magaziner’s office, Atlanta-based Invesco will provide all aspects of investment management services for both adviser and direct plans, and marketing and sales for the adviser plan. Invesco has $791.3 billion in assets under management and operates in more than 20 countries.
Routinely ranked among the highest-performing fund families in the nation, Invesco has agreed to an exclusive relationship in which Rhode Island’s CollegeBoundfund will be the only 529 plan it works with and promotes, the release said.

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 advisers.

Ascensus, according to Magaziner, is the largest independent retirement and college savings services provider in the nation, and has more than 13 years experience supporting 31 other state plans.

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“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,” Magaziner said in a statement. “Invesco is one of the world’s most respected investment management companies, known globally for [its] high-performing and low-cost investment products. Invesco brings an extensive national sales network that will help the CollegeBoundfund maintain its position of national leadership.”
Martin L. Flanagan, president and CEO of Invesco, said he is pleased that Invesco and its partner Ascensus College Savings have been selected to manage the CollegeBoundfund. “Our long-standing reputation for providing leading products, value-added services and extensive coverage makes us well suited to provide highly-rated plans for investors in Rhode Island and nationwide,” he said.

In addition, Ascensus said it plans to open an office in Rhode Island by June, creating 35 new jobs.

“We look forward to working with the state of Rhode Island and Invesco to help Rhode Islanders achieve their college savings goals,” Jeff Howkins, president of Ascensus College Savings, said. “As a lifelong resident of Rhode Island, I couldn’t be happier about the prospect of creating jobs within my home state while also helping parents, grandparents, friends and families to save for a child’s higher education.”

The CollegeBoundfund was created by the General Assembly in 1998. It is designed to help families save for future higher education expenses at accredited colleges, universities and vocational or trade schools nationwide.
The fund has been managed by AllianceBernstein LP since its inception. AllianceBernstein said Tuesday that program management of the CollegeBoundfund will transition to a new manager as of July 1, pending approval of the R.I. State Investment Commission and the commission’s negotiation of a contract with its selected provider.

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