Best Buy makes changes to 401(k) plan lineup

Best Buy Co. Inc., Richfield, Minn., added two BlackRock (BLK) mutual funds and the Phocas Small Cap Value Fund, managed by Frontier Partners, as investment options in the $1.5 billion Best Buy Retirement Savings Plan, according to the company's 11-K filing on Wednesday.

The BlackRock Equity Index Fund replaces the Jennison Large Cap Growth Fund, run by Jennison Associates, and American Beacon Large Cap Value Fund, managed by American Beacon Advisors, according to the filing.

The BlackRock Extended Market Index fund replaced the TimesSquare Mid Cap Growth Fund, run by TimesSquare Capital Management, and the RidgeWorth Ceredex Mid-Cap Value Fund, managed by RidgeWorth Investments.

The Phocas fund replaced the Artisan Small Cap Fund, managed by Artisan Partners (APAM) Asset Management, which was closed last year.

Best Buy's 401(k) plan had $363 million in the BlackRock Equity Index Fund, $81 million in the BlackRock Extended Market Index Fund and $68 million in the Phocus fund, all as of Dec. 31, according to the 11-K.

Also, the plan in 2016 restricted future account balances in the Best Buy stock fund to 20%. Participants who had more than 20% of their assets were allowed to keep their existing stock balance or reduce it to 20% or less, and those that had directed more than 20% of their future investments to the company stock fund were allowed to reduce the future contributions to up to 20%. Those that did not act had their extra balances above 20% moved to an age-appropriate lifecycle fund managed by Aon Hewitt Investment Consulting. The stock fund had $77 million in assets as of Dec. 31.

The plan has 18 investment options and a Best Buy stock option. The company has a 100% company match up to 3% of pay and a 50% match for between 3% and 5% of pay. Employees can contribute up to 50% of pre-tax annual pay.

Alight Solutions, formerly known as Aon Hewitt, is the plan's record keeper.

Further information could not be learned; officials at Best Buy could not be immediately reached for details.