Anchorage, Alaska, added the DFA Global REIT fund, a real estate investment trust fund managed by Dimensional Fund Advisors, and Vanguard Global Wellington Admiral fund, a balanced fund managed by Wellington Management, as part of an overhaul of the investment options lineups of its $270 million 457 plan and $163 million 401(k) plan, said Juna Penney, the municipality's director of employee benefits.
The changes, which give the plans identical fund lineups for the first time, are the result of the hiring in December of Empower Retirement as sole record keeper of the plans. Empower is currently the record keeper of the 457 plan, while T. Rowe Price Group is the current record keeper of the 401(k) plan. The consolidation of both plans will be complete in October, Ms. Penney said.
The new, common lineup has 18 investment options and a target-date fund lineup managed by Capital Group Cos. All current investment options except for the Dimensional and Wellington funds were featured in either the 401(k) or 457 plan lineups before the new lineup took effect Wednesday.
Funds removed from the 457 plan lineup were the Harbor Capital Advisors' Appreciation Fund, an active domestic large-cap growth equity fund; and Voya Investment Management's small-cap opportunity fund.
Funds removed from the 401(k) plan lineup were active domestic large-cap and small-cap equity funds, a balanced fund, a stable value fund and an unconstrained fixed-income fund managed by T. Rowe Price, and a domestic midcap growth equity fund managed by Vanguard Group.
Investment consultant RVK assisted.