CollegeBoundfund® Investment Options

We recognize that every investor has a different approach to investing. This is why CollegeBoundfund offers a wide variety of investment options. CollegeBoundfund portfolios invest in a mix of stock, bond and/or money market mutual funds managed by AllianceBernstein.


Principal-Protection Income Portfolio

The Principal-Protection Income Portfolio is a conservative, stable value option that seeks to generate higher returns than most money market funds by investing in a portfolio of fixed-income securities protected from fluctuations in value typically associated with bond funds.*

High-Quality Bond Component Insured to Provide:

  • Stable Accrued Earnings
  • Protection of Principal
  • Attractive Daily Income

Rates of Return
The PPI rates for July 1, 2010 through September 30, 2010 are:

  • Alternative A returns no less than 2.96%
  • Alternative B returns no less than 2.21%
  • Alternative C returns no less than 2.21%
  • Alternative R (RI residents investing without an advisor) returns no less than 3.40%
  • Alternative RA (RI residents investing through an advisor) returns no less than 3.15%
  • Alternative RZ (RI residents investing through an advisor) returns no less than 3.40%

The crediting rate is reset quarterly and may be higher or lower in future quarters than that shown.

Dollar-Cost Averaging
With the Principal-Protection Income Portfolio, your clients can dollar-cost average† their lump sum investment into any other CollegeBoundfund investment options. See the example below:

Monthly Reallocation Into Another CollegeBoundfund Investment Option

*The Principal-Protection Income Portfolio does not guarantee any particular rate of return. The Portfolio seeks to minimize fluctuations in the value of its investments by entering into contracts, known as wrapper agreements, with financial institutions such as banks and insurance companies. However, these wrapper agreements are subject to certain risks and do not guarantee any Participant's investment in the Portfolio. Although the Portfolio seeks to preserve the value of the investment, it is possible, under certain circumstances, to lose money by investing in this Portfolio. Please see the Program Description for more information.

†To participate in the monthly reallocation, the initial contribution to the Principal-Protection Income Portfolio must be at least $1,000, and at least $500 must be reallocated to each of the other CollegeBoundfund investment options selected. Rhode Island accounts have no minimum requirements. Please see the Program Description for more information. Dollar cost averaging does not assure a profit nor protect against loss in a declining market. Since this strategy involves continuous investments, regardless of fluctuating prices, investors should consider their financial ability to invest during periods of high and low price levels.

Fair Fund Distribution Settlement Tax FAQ
Fair Fund Check Reissue Form
National CollegeBoundfund Program Description
Incoming Transfer/Rollover Form
BabyMintTM retailer rebate program
The AllianceBernstein Coverdell Education Savings Account
It’s Never Too Early to Start Planning for College

College Savings Crunch
Literature & Forms
Free Application for Federal Student Aid Website (FAFSA)
FAQ
Online Enrollment for Rhode Island Residents
Find an Advisor
Tax Center
CollegeBoundfund Calculator
 

You should consider the investment objectives, risks, charges and expenses of the CollegeBoundfund carefully before investing. For a free copy of the Program Description, which contains this and other information, visit our Literature and Forms section, or call your financial representative or AllianceBernstein at (888) 324-5057. Please read the Program Description carefully before you invest.

If you are not a Rhode Island resident or if you have taxable income in another state, consider whether that other state offers a similar plan with favorable state income tax or other benefits not available if you invest in the CollegeBoundfund. Statements in this material concerning taxation are not offered as individual tax advice. Investors should consult with their tax advisor or contact their state tax division for more information before investing.

The investments in CollegeBoundfund are not guaranteed by the State of Rhode Island, the Rhode Island Higher Education Assistance Authority (which established and implemented CollegeBoundfund and makes rules and regulations governing the program), the Rhode Island State Investment Commission (which oversees the investments of the assets of CollegeBoundfund), the Federal Deposit Insurance Corporation (FDIC) or any instrumentality thereof. CollegeBoundfund is managed by AllianceBernstein L.P. and distributed by AllianceBernstein Investments, Inc., member FINRA.

Investment Products Offered:

Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, click here or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.

AllianceBernstein mutual funds may be offered only to persons in the United States and by way of a prospectus. This web site should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P., the manager of the funds, and is a member of FINRA.

©2010 AllianceBernstein L.P.
Terms of Use, Business Continuity Plan and Privacy Policy