Searches and Hires

Nashville 457 plan chooses Dodge & Cox fund; pension fund reports 13.5% return

Nashville (Tenn.) and Davidson County Metropolitan Government added the Dodge & Cox Stock Fund to the investment options lineup of its $297 million 457 plan, said Fadi BouSamra, chief investment officer, in an email.

The new fund, an active domestic large-cap equity fund, replaces Allianz NFJ Dividend Value Fund, an active domestic large-cap value equity fund managed by Allianz Global Investors. The Allianz fund was removed primarily due to performance, Mr. BouSamra said.

Megan Frank, Allianz Global Investors spokeswoman, could not be immediately reached to provide comment.

The 457 plan has 11 investment options and a Wells Fargo target-date fund lineup. As of June 30, the Allianz NFJ Dividend Value Fund had about $12 million in assets.

Investment consultant Summit Strategies Group assisted.

Separately, the Nashville & Davidson County Metropolitan Government Employee Benefit Trust Fund returned a gross 13.53% in the fiscal year ended June 30, Mr. BouSamra said. The $3 billion pension fund exceeded its benchmark of 12.71%. Net returns were not provided.

The best-performing asset class for the fiscal year was domestic equity, which returned a gross 23.67%, above its 18.51% benchmark, followed by private equity at 17.26%, below its 24.6% benchmark. Other asset class returns for the fiscal year were international equity returning 16.26% (below its 20.45% benchmark); equity hedge, 13.66% (12.16%); real assets, 11.54% (6.98%); fixed-income alternatives, 9.16% (12.75%); and fixed income, 8.69% (9%).

The overall pension fund returned an annualized gross 6.64%, 10.33%, and 5.87%, respectively, in the three, five and 10 years ended June 30, exceeding their respective benchmarks of 5.66%, 8.58% and 4.92%. The pension fund returned a gross 1.27% in the fiscal year ended June 30, 2016.

As of June 30, the actual allocation was 22.6% fixed-income alternatives, 17% fixed income, 16.9% private equity, 14.1% domestic equity, 10.9% real assets, 10.1% international equity, 6.1% equity hedge; 2.3% cash and other.