Ohio Tuition Trust Authority, Columbus, is making changes to the investment lineup of its $4.1 billion CollegeAdvantage 529 Direct College Savings Plan, spokesman Judy Cunningham said.
An effective date has not been set. A minimum of 90 days is required before the changes can be fully implemented.
Following the changes, the total number of investment options will increase to 24 from 23 with the addition of a passive fixed-income fund managed by Vanguard Group.
As part of the changes, a GE Asset Management fund and two PIMCO funds will also be removed from the lineup and be mapped to Vanguard and Dimensional Fund Advisors options. Dimensional is a new manager for the plan.
The GE Institutional International Equity Fund is being removed for performance, organizational changes and reduced participant contributions to the fund, said a news release from the OTTA. A spokesman for GE Asset Management declined to comment.
The Pacific Investment Management Co. Total Return Fund and High Yield Fund are being removed because of personnel changes and a decline in participant contributions.
Participants in the GE fund will be mapped to a Dimensional fund. Participants in the PIMCO funds will be mapped to Vanguard and Dimensional funds.
A Vanguard inflation-protected bond fund will also be replaced with a different Vanguard fund that “seeks to mitigate interest rate risk” and a Vanguard international index option will be replaced with one that has emerging markets equity exposure, said a news release from OTTA.
The OTTA board also approved changes to Vanguard’s age-based and risk-based offerings. The manager plans to “increase the international component of its equity allocation, broaden international equity to include emerging markets, introduce international fixed-income to the allocation and shorten the duration of the inflation-protected allocation in the portfolios,” the release said.
Paul Paeglis, executive director of the authority, was not immediately available for comment.