Ford Motor Co. introduced a new lineup of sixty investment options for its nearly $8 billion defined contribution plan earlier this month.
Fifty supplemental investment options provide diversification choice for plan participants, said Lee Mezza, Ford's new director of its National Employee Service Center. Mr. Mezza was an instrumental member of the internal project team which designed the new savings plan and takes over from John Ferguson, who has assumed a new job elsewhere in Ford.
The non-core options include 25 mutual funds managed by Fidelity Institutional Retirement Services, Scudder, Stevens & Clark, T. Rowe Price and the Vanguard Group.
Mr. Mezza said Ford considered offering a self-directed brokerage option but decided to limit its more adventurous participants to a set number of funds that allowed plenty of opportunity for "intelligent diversification."
Six new core investment options have been added, managed by the daily valued plan's record keeper, Fidelity: the Contra, Magellan, Overseas and the series of three Fidelity Adviser asset allocation funds.
Four investment options from the old monthly valued plan have been carried over to the core lineup: a Standard & Poor's 500 Stock Index fund managed by Comerica, a bond index fund managed by Wells Fargo Nikko Investment Advisors, a company stock option and a stable value fund, now administered by Fidelity.