Sprint Corp., Westwood, Kan., has unitized a portion of its $2.3 billion 401(k) plan, replacing retail mutual funds and index funds with separately managed portfolios managed by defined benefit managers, said Bill Searcy, pension and savings trust officer for Sprint.
Executives replaced four funds in the specialty fund tier of its 401(k) plan, Mr. Searcy said. Replaced were a value index with a value strategy account, a Russell 2000 growth index with a small-cap growth separately managed account, a retail large-cap stock fund with a separately managed large-cap aggressive growth strategy and a retail mutual fund with a large-cap growth stock strategy, he said. He wouldnt name the managers.
Plan executives made the changes in Sprints 18-month-old lineup to lower participant fees, Mr. Searcy said. The mutual funds were intended to be temporary until executives figured out which options could be unitized. Now there are only five retail mutual funds in Sprints menu of 30 investment.