Searches and Hires

Oregon 529 plan brings on new program managers, revamps investment lineup

The $1.8 billion 529 Oregon College Savings Plan, Salem, launched a new slate of investment choices, including a set of college enrollment-date funds that automatically adjusts risk exposure to align investments with the age of the beneficiary, according to a news release.

Any assets left in the funds at the college enrollment date will be invested in a new FDIC-insured capital preservation fund option. The new options, approved by the Oregon 529 Savings Board on April 26, will be available to investors in September, James Sinks, spokesman, said in an email.

The changes are part of a shift to new plan manager, Bank of New York Mellon (BK), which was hired in February to replace TIAA-CREF.

The complete lineup will still have a total of 13 investment options, including the new college enrollment-date funds that are replacing the current age-based funds and the new FDIC-insured investment option. Also new to the lineup is the Vanguard Short-Term Bond Index Fund institutional, a short-term fixed income-index portfolio managed by Vanguard Group. TIAA's social choice fund will be replaced by a social choice balanced portfolio that consists of the existing TIAA Social Choice Equity Fund with a target weight of 36% of the portfolio, along with 20% to TIAA Social Choice Bond Fund, 20% to DFA Social Fixed Income, 18% to DFA International Social Core Equity and 6% to DFA Emerging Markets Social fund — the last three managed by Dimensional Fund Advisors.

The rest of the lineup options are the same with a few manager replacements:

  • A target-risk portfolio with funds managed by Vanguard and Dimensional.
  • A balanced index portfolio that includes a total equity index fund, an international equity index fund and fixed-income index fund managed by Vanguard, replacing TIAA equity and bond index funds.
  • A diversified U.S. equity portfolio that swaps the Vanguard Institutional Index I fund for the TIAA S&P 500 fund but retains the LSV Asset Management value equity, T. Rowe Price large-cap growth, Champlain Investment Partners midcap and the Dimensional U.S. small-cap funds.
  • A diversified international equity portfolio in which a Vanguard emerging markets equity fund is replacing a TIAA emerging markets equity fund but retains international growth and total international stock funds managed by Vanguard and an American Beacon international equity fund.
  • A diversified fixed-income portfolio that includes a Vanguard total bond market fund in place of TIAA's bond index fund but retains Metropolitan West Asset Management and DoubleLine Capital funds.
  • A diversified inflation-protection portfolio that swaps a Dimensional real estate fund for a Vanguard real estate index fund; a Vanguard inflation-protected securities fund for a similar TIAA fund; and a Vanguard inflation-linked index fund for a Voya Investment Management floating-rate bond fund.
  • A U.S. equity index option managed by Vanguard in its Vanguard Total Stock Market Index fund, replacing a TIAA equity index fund;
  • An international equity index fund still managed by Vanguard.
  • A fixed-income index fund managed by Vanguard, replacing a TIAA bond index fund.