PROVIDENCE, R.I. (WPRI) – General Treasurer Seth Magaziner will decide next month on the future of Rhode Island’s huge 529 college savings plan, the CollegeBoundfund, as the program’s current outside manager fights to keep the contract.
The CollegeBoundfund has grown into one of the largest such programs in the country but has also come under criticism for its fees and performance. The plan has been run by the same company, AllianceBernstein, since 2000, but its current management contract expires next June.
David Ortiz, a spokesman for Magaziner, said a selection committee has worked with a consultant, Indianapolis-based Capital Cities LLC, to narrow the bidders down to a short list of finalists. Anne-Marie Fink, the state’s chief investment officer, and Capital Cities conducted site visits with the finalists earlier this month.
“The program manager that the selection committee recommends will present at the State Investment Commission meeting on Nov. 18, and the SIC will vote on the selection committee’s recommendation,” Ortiz told WPRI.com in an email.
Magaziner’s decision will affect more than $7 billion in state-controlled funds and impact the cost of college for thousands of Rhode Islanders. AllianceBernstein has transferred the state more than $53 million over the last 10 years to fund college scholarships for Rhode Islanders as part of its contract.Ted Nesi (email@example.com) covers politics and the economy for WPRI.com. He hosts Executive Suite and writes The Saturday Morning Post. Follow him on Twitter: @tednesi