Colorado County Officials & Employees Retirement Association, Littleton, is moving to custom target-date funds for its defined contribution plans, said Jacob Kuijper, executive director, in an e-mail.
The 10 target-date funds will replace CCOERA's “pension portfolios,” five risk-based asset allocation funds, effective June 27.
Approximately $650 million total is currently invested across the five risk-based funds, which span from “very conservative” to “very aggressive” and provide exposure to stock and bonds along with some non-traditional asset classes such as commodities and low-correlated hedge funds.
All of the underlying risk-based fund managers have been retained as underlying managers in the target-date funds, Mr. Kuijper said.
According to the retirement system's website, the managers are Dodge & Cox, Harbor Capital Advisors, Vanguard Group, American Beacon Advisors, Capital Group, Artisan Partners, Pacific Investment Management Co., John Hancock Investments, Litman Gregory Asset Management, Credit Suisse Asset Management, Fidelity Investments, Cohen & Steers, Driehaus Capital Management, Metropolitan West Asset Management, J.P. Morgan Asset Management, New York Life Investment Management and Galliard Capital Management.
The target-date funds will replace the moderate risk-based fund as the default investment option in June. Assets in the risk-based funds will be mapped to the appropriate target-date fund.
“We believe that the glidepath in target-date funds will deliver better results in the distribution phase of retirement for our participants,” Mr. Kuijper said on the reason for the shift from risk-based funds, which do not have a glidepath.
Separately, Galliard, the retirement association's stable value fund manager, terminated PIMCO as subadviser on the fund, Mr. Kuijper said. He did not disclose a reason for the termination. Galliard declined to comment. A PIMCO spokeswoman also declined to comment.
CCOERA's 401(a) and 457 plans have about $1.2 billion in combined assets. Empower Retirement is the record keeper and Innovest Portfolio Solutions is the consultant.
