Hartford HealthCare, Hartford, Conn., added hedge fund, blended inflation-protected securities, natural resources, global bonds and hybrid emerging markets debt-equity mutual funds as investment options in a revamp of its 401(a), 403 and 457 plans, said David J. Holmgren, chief investment officer.
The changes to the plans, which have a combined $650 million, go into effect Jan. 1, he said.
At that time, the plans all will offer the same 12 options, a set of T. Rowe Price target-date funds and a self-directed brokerage window. The plans previously had a total of 65 options, with not all included in each plan, Mr. Holmgren said.
The hedge fund option will be managed by Neuberger Berman, while the inflation-protected option will be run by Pioneer Investments, the natural resources fund by RS Investments, the global bond fund by Franklin Templeton, and the hybrid emerging markets fund by Lazard Asset Management.
“I think we're on the forefront here,” Mr. Holmgren said. “We'll be one of the first major not-for-profits rolling out hedge funds, blended inflation protected and hybrid emerging markets. It's a targeted, focused lineup representing our core beliefs in active management and global perspective.”
The other options are a stable-value fund, run by Prudential; an active fixed-income option from Pacific Investment Management Co. ; passive fixed income with BlackRock; active large-cap equity, J.P. Morgan Investment Management; passive large cap, Fidelity Investments; active midcap stocks, Westwood Group; and active international equity, Dodge & Cox.
Pioneer, Lazard and Westwood are new managers for the company; the other managers also run strategies for the company's $1.3 billion defined benefit plan and $800 million endowment. PIMCO was the only manager that previously ran a DC option for the plans.
The company also hired Prudential as record keeper and administrator for the plans; Prudential had been one of eight administrators for the plans; Mr. Holmgren would not name the others.
Towers Watson, the plans' investment consultant, assisted.