JPMorgan, through its JPMorgan Fleming Asset Management unit, has teamed up with Alliance Capital Management to launch the JPMorgan Higher Education Plan, a spokesperson with the former told the MutualFundWire.com. The plan is sponsored by the State of Rhode Island.

This represents JP Morgan's first foray into the 529 space. The plan will be sold through intermediaries, principally Chase Manhattan bank branches. It is available to both Rhode Island and non-Rhode Island residents, though, obviously, Rhode Island residents will benefit from more tax advantages.

The plan will offer four asset allocation portfolios that are a mix of stock and bund mutual funds from both firms. There are three static portfolios: equity growth, balanced, and conservative. The fourth portfolio uses an aged-based allocation approach.

Alliance continues to offer another 529 plan through Rhode Island for which it is the sole manager; that plan is called the College Bound Fund. JPMorgan offers an online calculator which can be found at this link. 

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