Products January 11, 2003

Principal and Alliance Capital Form 529 Partnership

The Principal Financial Group and Alliance Capital have teamed up for a new 529 college savings plan as a payroll deduction option for workers.

Reported by

Eric Hazard

Available in January 2003, The Principal CollegeBound Fund will be sponsored by the State of Rhode Island and marketed nationwide, offering a range of 15 different investment options, including:

Two age based portfolios that change allocation the closer to college age the beneficiary gets.
Three core allocation portfolios investing in a fixed assortment of stocks, bonds and money markets.
A protection income portfolio investing in a mix of fixed income securities and money market instruments designed to provide protection of principal and accrued earnings.
A customized allocations portfolio that allows investors the opportunity to design their own allocation from nine Alliance mutual fund offerings.

Administered by Alliance Capital and marketed and distributed through Principal, employers will be able to offer employees participation through payroll deduction. Additionally, the new fund will be available to retail clients through Principal’s brokers and financial advisors.