Updated with correction
Kentucky Public Employees' Deferred Compensation Authority, Frankfort, is removing Federated Investors’ Prime Obligations Money Market Fund, a stand-alone investment option, and the Dreyfus Money Market Fund, an underlying fund in its stable value fund, said the authority’s recently released second-quarter newsletter.
In response to tighter SEC regulations on prime money market funds, the board voted to accept investment consultant Mercer’s recommendation to replace the Federated and Dreyfus funds with Invesco’s Government and Agency Portfolio Money Market Fund, in its 457(b) and 401(k) plans, according to the newsletter. Invesco is the existing stable value fund manager. The changes are effective at close of business on Sept. 26.
The 457 and 401(k) plans have about $2.5 billion in assets combined. As of June 30, $676 million was invested in the stable value fund and approximately $10 million in the Federated fund, said Pat Goodlett, deferred compensation program consultant, in an e-mail.
