Rhode Island Higher Education Assistance Authority, Providence, approved changes to the state's 529 plan, CollegeBoundfund, at a meeting on Monday, confirmed Gail Mance-Rios, acting executive director, in an e-mail.
In addition to redesigning the menu of existing investment options, the state will replace a number of individual underperforming funds from the $7.35 billion plan, as well as create a passive age-based alternative glidepath.
The state will remove AllianceBernstein's Value, International Value, Global Thematic Growth and Intermediate Bond funds from the plan's portfolio and replace them with AllianceBerstein's Growth & Income, EAFE Value Index & Emerging Markets Index, Discovery Growth and Global Bond funds, respectively. The CollegeBoundfund might also add AllianceBernstein's TIPS and Bond Inflation Strategy funds. The changes had been recommended by consultant Pension Consulting Alliance and bundled provider AllianceBernstein.
The State Investment Commission approved these changes on Sept. 25, according to Joy Fox, spokeswoman for Rhode Island's Office of the General Treasurer.
The changes will likely go into effect in a few months, according to Ms. Fox.