529 College Savings Plan Assets Increased To $20 Billion Last Year
Assets at 529 college savings plans grew 119% in 2002, to $20 billion, according to a new report from Cerulli Associates Inc., Boston.
Despite the rapid growth of the 529 plan market, many providers have been disappointed with the performance of individual plans, Cerulli researchers write.
Although 529 plans added more than 1.6 million new accounts and more than $10 billion in new contributions in 2002, only seven providers ended the year with more than $1 billion in assets, the researchers write.
More than 70 savings plans are now in operation with 49 states and the District of Columbia each sponsoring at least one plan. The number of providers serving as program managers, private-label partners, distributors and investment-only managers has increased dramatically as the competition for assets intensifies, according to the Cerulli report.