New York State Deferred Compensation Plan is adding the Vanguard Strategic Equity Fund as a substitution for the Fidelity Institutional Asset Management Small/Mid Cap Core Fund collective investment trust as part the $19.4 billion plan’s restructuring of its investment lineup.
“The change was made since we were not able to negotiate a suitable contract with Fidelity,” David Fischer, the Albany-based plan’s executive director, said in an email. The Fidelity CIT — and now the Vanguard Group mutual fund — had been approved by the board as a new investment option.
In December, the plan’s board voted to overhaul approximately $12.1 billion in plan assets as part of a strategy to replace some mutual funds for performance reasons, replace others with collective investment trusts and add some CITs.
The deferred compensation plan also will convert some mutual funds to CITs offered by the same manager.
Previously, Mr. Fischer said that although contracts for existing investments covered by the board's vote in December were scheduled to have expired on March 31, those contracts “are expected to be extended for one year.”
