Washington University in St. Louis is overhauling its investment options lineup in its 403(b) plan, adding seven new funds and a new target-date fund lineup, said a brochure on the retirement plan's website.
The changes are effective May 2 and are being made after a review, noting that "research has shown that providing fewer funds in a plan's core investment lineup may help employees make better investment decisions," the brochure said.
New to the plan is a three-tier structure: A target-date fund lineup managed by Vanguard Group, replacing one managed by Nuveen; a tier of 31 investment options and a self-directed brokerage account. The plan is removing 69 investment options, from which participants will be automatically mapped to existing and new investment options.
The new investment options are the American Funds New World Fund, an active domestic large-cap growth equity fund managed by Capital Group; Templeton Global Bond Fund, an active global fixed-income fund managed by Franklin Templeton (BEN) Investments (BEN); MassMutual Select Mid Cap Growth Fund, an active domestic midcap growth equity fund managed by MML Investment Advisers; J.P. Morgan Small Cap Value Fund, an active domestic small-cap value equity fund managed by J.P. Morgan Asset Management (JPM); Vanguard Total Bond Market Index Fund, a passive intermediate-term fixed-income fund managed by Vanguard Group; Victory Sycamore Established Value Fund, an active domestic midcap value equity fund managed by Victory Capital Management; and Western Asset Core Plus Bond Fund, an active intermediate-term fixed-income fund managed by Western Asset Management.
As of Dec. 31, 2016, the Washington University Retirement Savings Plan had $4.1 billion in assets, according to the plan's most recent Form 5500 filing.
TIAA-CREF is the plan's record keeper.
Julie Hail Flory, university spokeswoman, could not be immediately reached for further information.