Sacramento County (Calif.) is overhauling the investment option lineup for its $877 million 457(b) plan and $16 million 401(a) plan, pending final contract negotiations, according to a brochure on the plans' website.
The plan is changing its investment options to create a more "simplified" lineup to "enhance the financial well-being of participants," the brochure said. The changes are effective Jan. 16. The county is changing to a target-date fund lineup managed by Vanguard Group from one managed by Fidelity Investments and creating a new core lineup of 11 investment options, all new to the plan except for Fidelity Contrafund, an active domestic large-cap equity fund.
The lineup will consist of a money market fund and active domestic large-cap growth equity fund managed by Fidelity Investments, a stable value fund managed by Wells Capital Management, an active domestic large-cap value equity fund and active domestic small-cap blend equity fund managed by J.P. Morgan Asset Management; an active international equity fund managed by Oakmark International; an active domestic large-cap blend equity fund managed by Parnassus Investments; a passive domestic large-cap blend equity fund, passive domestic intermediate-term fixed-income fund, passive domestic midcap equity fund and passive international equity fund managed by Vanguard.
The plan is removing 10 various funds managed by Fidelity, two funds managed by Vanguard, and an active domestic small-cap value equity fund managed by Allianz Global Investors, an active domestic large-cap blend equity fund managed by Capital Group, an active domestic midcap growth equity fund managed by Columbia Threadneedle Investments, an active domestic intermediate-term fixed-income fund managed by Metropolitan West Asset Management, an active domestic large-cap value equity fund managed by MFS Investment Management and an active domestic large-cap growth equity socially responsible fund managed by Neuberger Berman.
Participants in the options being removed will automatically be mapped to their corresponding target-date funds.
Fidelity Investments, the bundled provider, was rehired in September following an RFP process the county began in March because the size of the plan had increased so much since Fidelity was originally hired, a county procurement official said in March.
Bernard Santo Domingo, chief investment officer, could not be immediately reached to provide further information.