University of Central Florida, Orlando, is reducing the number of record keepers for its $127 million 403(b) plan and overhauling the investment options lineups for remaining record keepers Fidelity Investments, TIAA-CREF and VALIC, said Alina Hernandez, university spokeswoman, in an e-mail.
The changes will be effective in April 2017. The other current record keepers are MetLife, T. Rowe Price Group, Vanguard Group and Voya Retirement Services. The change took place after the recent hiring of CAPTRUST Financial Ådvisors as the plan's investment consultant, which recommended reducing the number of providers to the plan's investment committee.
Ms. Hernandez said an RFI was sent to all seven record keepers, and then the plan's investment committee decided to retain the three firms to move forward as record keepers.
All the new investment lineups include a target-date fund lineup, a passive tier of index funds, a tier of actively managed funds and a self-directed brokerage account.
New to the Fidelity and VALIC lineups is a Vanguard Group target-date fund lineup. The TIAA lineup will retain the incumbent TIAA-CREF lifecycle index series.
Each passive tier will contain six investment options: an intermediate-term bond index fund; environmental, social and governance index fund; domestic large-cap equity index fund; domestic midcap equity index fund; domestic small-cap equity index fund; and international large-cap equity index fund.
New to the Fidelity passive tier is Vanguard Group's FTSE Social index fund. The other five are all Fidelity Spartan funds, all currently in the Fidelity lineup. New to the TIAA passive tier are five index funds managed by Vanguard Group, with the TIAA-CREF Social Choice equity index fund the sole incumbent fund. All six passive tier funds are new to the VALIC lineup, all managed by Vanguard Group.
The active tier for all three record keepers consists of 14 investment options, the majority of which are new to each lineup.
The new active tier investment options are:
- domestic small-cap growth equity fund managed by Wells Fargo Asset Management, for all three record keepers;
- domestic small-cap value equity fund managed by Goldman Sachs Asset Management, for all three record keepers;
- international large-cap growth equity fund managed by American Funds, for TIAA and VALIC;
- international large-cap value equity fund and domestic large-cap value equity fund managed by John Hancock Investments, for all three record keepers;
- domestic midcap growth equity fund managed by Eagle Asset Management, for all three record keepers;
- domestic midcap value equity fund managed by MFS Investment Management, for all three record keepers;
- domestic large-cap growth equity fund managed by T. Rowe Price Group, for TIAA and VALIC;
- domestic intermediate-term bond fund managed by Metropolitan West Asset Management, for TIAA and VALIC;
- money market fund managed by Fidelity Investments for Fidelity lineup, and Vanguard Group for TIAA and VALIC;
- emerging markets equity fund managed by William Blair & Co., for Fidelity and VALIC; and
- real estate fund managed by Principal Real Estate Investors, for Fidelity and VALIC.