Discover Financial Services Inc., Riverwoods, Ill., is introducing a new 401(k) plan investment fund lineup on March 13, according to materials on the company’s benefits website.
Nine of the 12 stand-alone investment options are new, and passive options are increasing to four from one. In addition to the 12 options, T. Rowe Price target-date funds and a company stock option will remain in the lineup.
A State Street Global Advisors S&P 500 index fund will replace the Mellon Capital Management S&P 500 index fund. Three new passive SSgA funds also will be offered — a Russell small/midcap index fund, a global equity all-cap ex-U.S. index fund and a bond index fund.
Five new actively managed options are replacing six active funds. Pacific Investment Management Co. will manage a foreign bond and an inflation-response multiasset fund. Also being offered are a J.P. Morgan Asset Management large-cap core fund, a smidcap equity fund managed by Loomis Sayles; and an emerging markets core equity fund managed by Dimensional Fund Advisors.
The PIMCO Total Return Fund, a Wells Fargo stable value fund and Dodge & Cox international stock fund will remain in the new fund lineup.
Stock funds by Dodge & Cox, Victory Capital Management and Morgan Stanley Investment Management will be eliminated, with assets mapped to the J.P. Morgan option. A Cramer Rosenthal McGlynn midcap value fund and Jennison Associates small-cap fund will be eliminated and mapped to the Loomis Sayles fund, while a Pyramis Global Advisors international equity fund will be removed and mapped to the existing Dodge & Cox international stock fund.
Aon Hewitt is the service provider for the plan, which had $710 million in assets as of Dec. 31, 2012, according to its most recent Form 5500 filing.
Doug Rose, senior vice president and chief human resources officer, did not return a telephone call seeking additional information.