Fermi Research Alliance, Batavia, Ill., hired Fidelity Investments as sole record keeper and is overhauling the investment lineup of its defined contribution plans, effective Feb. 2, a transition guide on the plans’ website indicates.
Fermi Research Alliance, which manages the Fermi National Accelerator Laboratory, administers a 403(b), 457(b) and 401(a) plan. The 403(b) and 401(a) plans had approximately $991 million in assets combined as of Dec. 31, 2012, according to the plans’ most recent Form 5500 filings. The size of the 457 plan could not be learned by press time.
Fidelity Investments was selected as the plans’ sole record keeper following an “extensive search process,” said an announcement on the plans’ website. The incumbent providers are: Dreyfus, TIAA-CREF, T. Rowe Price Group and Vanguard Group.
Moving to a single provider will “streamline plan administration, leverage the lab's organizational purchasing power and is expected to significantly reduce the expenses associated with investing,” the announcement said.
As a result of the change, a new fund lineup will be offered.
The new lineup consists of 15 individual fund options, a mutual fund brokerage option and a series of Vanguard target-date funds. There were previously more than 200 options available for participants. The individual fund options consist of four index funds and 11 actively managed funds.
The index fund options are:
- Vanguard Total Bond Market Index Fund;
- Vanguard 500 Index Fund;
- Vanguard Total International Stock Index Fund; and
- Fidelity Spartan Extended Market Index Fund.
The actively managed fund options are:
- BlackRock Inflation Protected Bond Fund;
- MFS International Value Fund, managed by MFS Investment Management;
- Dodge & Cox Global Stock Fund;
- DFA U.S. Targeted Value Portfolio, managed by Dimensional Fund Advisors;
- PRIMECAP Odyssey Growth Fund, managed by PRIMCAP Management Co.;
- Harding Loevner International Equity Portfolio;
- T. Rowe Price Institutional Large Cap Value Fund,
- William Blair Small-Mid Cap Growth Fund, managed by William Blair & Co.;
- DoubleLine Total Return Bond Fund, managed by DoubleLine Capital;
- Cohen & Steers Realty Shares Fund; and
- NY Life Guaranteed Interest Account, managed by New York Life Investment Management.
A blackout period for participants will begin at 3 p.m. CST on Jan. 23 and end the week of Feb. 15.
Tara Turner, manager in Fermilab’s benefits department, referred questions to the company’s communications department. Andre Salles, spokesman, could not immediately provide additional information by press time.