Brown University, Providence, R.I., is streamlining the investment lineup of its two 403(b) plans, said Drew Murphy, director of benefits.
The university's deferred vesting retirement plan and legacy retirement plan had roughly $1.4 billion in assets combined.
The new lineup was adopted after a plan evaluation by the university's retirement plan committee. Volatility measures, fund performance, Morningstar ratings, management stability and fees all were considered in the evaluation, the transition guide states.
Investment consultant CAPTRUST Financial Advisors assisted with the fund recommendations.
Mr. Murphy said the simplified lineup will help the university meet its fiduciary responsibility to employees. “What people have been doing in the 401(k) world for decades is now (being done) in the 403(b),” Mr. Murphy said in a telephone interview.
More than 150 funds, mostly managed by Fidelity, are being removed from Fidelity's investment menu. The Fidelity Freedom target-date series will remain the default option for participants who do not make an investment selection. Fidelity's menu will also consist of a brokerage option and 13 core options (eight new and five existing).
The new core investment options are:
- J.P. Morgan Core Bond Fund, managed by J.P. Morgan Asset Management;
- MFS Midcap Value Fund, managed by MFS Investment Management;
- John Hancock Funds Disciplined Value Fund, managed by John Hancock Investments;
- Spartan 500 Index Fund, managed by Fidelity Investments;
- Ivy Midcap Growth Fund, managed by Ivy Investment Management;
- Hartford International Opportunities Fund, managed by Hartford Investment Management Co.;
- Goldman Sachs Small-Cap Value Fund, managed by Goldman Sachs Asset Management; and
- Eagle Small-Cap Growth Fund, managed by Eagle Asset Management.
Previous investment options that will remain available are the Fidelity Cash Reserves, Spartan U.S. Bond Index Fund, Fidelity Contrafund, Spartan Extended Market Index Fund and Spartan International Index Fund, all managed by Fidelity.
On TIAA-CREF's platform, 10 investment options, all managed by TIAA-CREF, are being removed from the lineup.
Five TIAA-CREF annuity funds and TIAA-CREF's lifecycle fund series will remain available. The new lineup also will include 17 core investment options, including the five existing annuity options.
All of the core funds being added to Fidelity's lineup, with the exception of the Spartan index fund, will be added to TIAA-CREF's menu. Four Vanguard Group index funds, the Nuveen Winslow Large-Cap Growth Fund, managed by Nuveen Investments, and a brokerage option will also be added to TIAA-CREF's investment menu.