College savings plans in Alaska, Maryland, Nevada and Utah led the nation in rankings released today by Morningstar.
Gold medal rankings in the research firm's analysis of 64 of the nation's largest 529 college plans were given to Alaska's T. Rowe Price College Savings Plan, managed by T. Rowe Price; Maryland College Investment Plan, managed by T. Rowe Price; Nevada's The Vanguard 529 Savings Plan, managed by Upromise Investments; and Utah Educational Savings Plan, managed by the agency of the same name.
Silver medalists winners included Arkansas' iShares 529 Plan, managed by Upromise Investments; Michigan's Education Savings Program, managed by TIAA Tuition Financing; Ohio's College Advantage 529 Savings Plan, managed by Ohio Tuition Trust Authority; and Virginia's CollegeAmerica, managed by American Funds.
Plans that received a negative rating included Kansas' Schwab 529 College Savings Plan, managed by American Century Investment Management; Minnesota's College Savings Plan, managed by TIAA Tuition Financing; Rhode Island's CollegeBoundfund (Advisor-sold), managed by AllianceBernstein; and Rhode Island's CollegeFoundfund (Direct-sold), managed by AllianceBernstein.
For a full list of analyst ratings for each of the 64 plans, go to global.morningstar.com/529PlanRatingsChart2012.
The 64 plans represent more than 95 percent of the $162 billion in U.S. 529 plan assets. Morningstar said it identified 27 that are likely to outperform their peers on a risk-adjusted basis over a full market cycle.
In determining a plan's rating, Morningstar considered five factors: the plan's strategy and investment process; the plan's risk-adjusted performance; an assessment of the plan's manager; the stewardship practices of the plan's administration and parent firm; and whether the plan's investment options are a good value proposition compared to its peers.
-Jim McConville