Florida Retirement System's $7.8 billion 401(a) plan will drop Pioneer Investment Management's Pioneer Fund as an investment option because of poor performance, effective June 28, according to a termination notice to participants in the defined contribution plan.
The fund manages $137.1 million in active large-cap core U.S. equity in the Tallahassee-based plan.
The termination is “due to poor performance relative to similar funds and its performance benchmark and a significant change in the process used to construct the fund's portfolio,” the notice states. Geoff Smith, Pioneer spokesman, said officials declined to comment.
Pioneer fund balances will be automatically mapped to the $329.5 million FRS Select U.S. Stock Market Index Fund, a Russell 3000 index fund managed by BlackRock, unless participants transfer their remaining amounts by the termination date.
Mercer — investment consultant to the Florida State Board of Administration, also Tallahassee, which oversees $165 billion in assets including the 401(a) plan — assisted in the change.
Dennis D. MacKee, FSBA communications director, said the FSBA has no plans to replace Pioneer. The plan will have 20 remaining investment options.