Illinois State Universities Retirement System, Champaign, will drop ING as an investment provider for its $170 million 401(a) plan, said John R. Krimmel, CIO. ING had wanted to change the investment options it provides because the firm wasn't covering costs, he said. "We looked at the proposed lineup and costs (to participants) nearly doubled," said Mr. Krimmel.
ING's fees average 110 basis points, higher than those of the plan's other two providers: Fidelity, whose fees average 62 to 65 basis points, and TIAA-CREF, whose fees average 38 to 40 basis points, according to Mr. Krimmel.
ING has $31.7 million, or 18.6% of the plan's assets, in 12 mutual funds, six of which are non-ING portfolios. The proceeds will be transferred to similar Fidelity funds if participants don't voluntarily move their assets by Dec. 9.
An ING spokesman didn't provide comment.