R.I. CollegeBound plans make Morningstar 2016 list of best 529 plans

PROVIDENCE – Rhode Island’s CollegeBound Saver program netted a Silver rating and its CollegeBound 529 a Bronze from Morningstar, a research firm that tracks investment offerings, in its 2016 list of the best 529 plans.
“Both plans offer one age-based track that follows a sensible asset-allocation approach, gradually ratcheting down stock exposure over time,” Morningstar said of the plans in a press release.
Behind the ratings is a comeback story; the Chicago-based Morningstar had previously given the programs low grades due to poor returns and high fees.
“The state overhauled both plans in July 2016, replacing former program manager AllianceBernstein with Invesco and Ascensus,” Morningstar wrote.
Invesco — which operates in more than 20 countries — manages the plan’s investments and distributes them nationally. Ascensus, which has an office in Warwick, handles the plans’ program management and recordkeeping.

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