Montana Public Employees’ Retirement Administration, Helena, is searching for two managers for its defined contribution plans, said Patricia Davis, member services bureau chief.
First, MPERA is looking to add the first high-yield fixed-income option to its roughly $140 million 401(a) plan.
It is also searching for a manager to potentially replace the Victory Munder Mid-Cap Core Growth Fund, managed by Victory Capital Management, in its approximately $436 million 457 plan.
The fund is not meeting criteria outlined by Morningstar that MPERA uses in its investment policy, Ms. Davis said.
The fund has been on watch for its performance relative to the benchmark and for its expense ratio relative to its peer group average, said a Buck Consultants official in a recording of the investment advisory council meeting earlier this month. The fund’s performance relative to peers, however, has been “pretty strong,” the official said. Buck Consultants is the plan’s investment consultant.
MPERA participants had about $10 million invested in The Victory Munder Mid-Cap Core Growth Fund as of March 31. It has not been determined whether the fund will be replaced.
A Victory Capital Management spokeswoman declined to comment.
Both searches were approved by MPERA’s employee investment advisory council. Managers that are in Buck Consultants’ database will be considered. No RFP will be issued, but interested managers can contact Buck to make sure they are in the database.
Buck will present its search results at the July 16 employee investment advisory council meeting. The MPERA board will vote on the council’s recommendation Aug. 13.
