University of Maine System, Bangor, is adding the Prudential Total Return Bond Fund to its defined contribution plans, said Tracy Elliott, director of finance and controller.
The Prudential Fixed Income fund replaces the PIMCO Total Return Fund, from which participants will be mapped to the new fund. The Pacific Investment Management Co. fund has about $7 million in plan assets.
The system is also adding a new fund, the Vanguard Total Bond Market Index Fund, giving the DC plans their first passive domestic core fixed-income option.
The system’s 401(a), 403(b) and 457 plans have combined assets of $1.3 billion.
Investment consultant CAPTRUST Financial Advisors assisted.
Separately, the system hired Vanguard Group to manage $5.5 million in a passive domestic core fixed-income portfolio for the system’s $40 million defined benefit plan.
Vanguard replaces PIMCO, which ran a $5.5 million active domestic core fixed-income portfolio that had already been cut in half in September when the system hired J.P. Morgan Asset Management to run a $5.5 million active portfolio.
The system decided to retain PIMCO for the $23 million it manages in its all-asset strategy for the system’s $271 million managed investment pool, which includes endowment assets. PIMCO remains on client review for that account.
Investment consultant NEPC assisted.
All the moves regarding PIMCO were the result of the departure of William H. Gross, PIMCO’s co-founder and chief investment officer, who resigned from the firm on Sept. 26 to join Janus Capital Group.
