Indiana Deferred Compensation Committee, Indianapolis, hired Vanguard Group, Putnam Investments, Neuberger Berman Group, Osterweis Capital Management and Wellington Management to help manage target-date funds in its combined $874 million Indiana Public Employees Deferred Compensation 457/401(a) Plans, said Kirke Willing, deputy auditor.
For passive international equity, the committee added the Vanguard Total International Stock Index Fund, which is transitioning to trackingthe FTSE Global All Cap ex U.S. index from the MSCI ACWI ex USA Investible Market index.
For passive U.S. smidcap equity, it added the Vanguard Extended Market Index Fund, which tracks the S&P Completion index, which generally contains all regularly traded U.S. stocks except those in the S&P 500.
For unconstrained equity, the committee added the actively managed Putnam Capital Spectrum Fund, which invests in stocks and fixed income; Neuberger Berman Global Thematic Opportunities Fund, an equity fund; and the Osterweis Fund, a U.S. equity fund. Each manager will run one-third of the unconstrained equity portfolio.
For alternatives, it added a Wellington real total return fund, a global multiasset portfolio including equities, fixed income and commodities, Mr. Willing said.
Capital Cities, the committee's investment consultant, assisted in the searches, which were the result of broad agency announcements' solicitations for proposals, issued earlier this year.
The committee plans to add all the strategies to the plans' target-date funds, a customized mix of strategies and allocations overseen by the committee with the assistance of Capital Cities. Participants in the plans won't be able to invest in the new strategies separately, Mr. Willing said.
The committee expects to incorporate the new strategies into the target-date funds in the second quarter of next year, Mr. Willing said.
Currently, the target-date funds, which have a combined $125 million of the plans' assets, use a mix of seven strategies run by various managers, Mr. Willing said. The committee plans to retain all the existing strategies.