University of Notre Dame 403(b) Retirement Plan, South Bend, Ind., will have investment options from Vanguard Group, Pacific Investment Management Co., Dimensional Fund Advisors and Dodge & Cox as part of changes effective Jan. 1.
The changes follow the hiring in June of Fidelity Investments as the $1.06 billion 403(b) plan’s sole record keeper. Previously the plan had three record keepers — Fidelity, TIAA-CREF and Vanguard — and 306 options.
According to documents from Fidelity for plan participants, along with a suite of 12 Vanguard target-date funds, the fund will have core options of four passive Vanguard mutual funds — U.S. stocks, U.S. bonds, international equity and international fixed income; and specialty options of the Vanguard S&P 500 Index, Extended-Market Index and REIT index funds, the PIMCO Global Bond fund, DFA Inflation Protected Securities fund, and Dodge & Cox Global Stock fund. Fidelity will provide the self-directed brokerage window.
The Vanguard funds had been available in the previous plan, said Robert McQuade, university vice president for human resources.
Fidelity funds were not chosen because the university’s 403(b) investment committee wanted to move away from a bundled structure and to open architecture, which was “one of the best ways the committee could ensure that participants’ have access to top-performing, low-cost investment options,” Mr. McQuade said.
Hewitt EnnisKnupp is the 403(b) plan’s consultant.