There is more room on the 529 bandwagon than it first appeared. State-sponsored "529" college savings plans have been popping up all over the country recently. Currently, 36 states offer active plans, and almost all of the remaining states have agreements with investment companies or are taking proposals for their plans. Still, fund companies that do not sponsor a 529 plan do not necessarily have to miss out on that market. States are increasingly looking for partners to join existing plans and add their funds, according to industry observers.

For example, AIM Management Group does not sponsor a 529 plan on its own, but has partnered with plans domiciled in Maine and Alaska in an effort to gain assets from that segment of the market, according to a company spokesman. Similarly American Express Asset Management Group has partnered with the Wisconsin plan and Manulife Financial has partnered with the Alaska plan, said Joseph Hurley, CEO of SavingforCollege.com, LLC of Pittsford, NY.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.