Wisconsin Deferred Compensation Program, Madison, will remove the American Beacon Bridgeway Large Cap Value Fund from its investment options lineup.
The $5.9 billion 457 plan's board at its March 11 meeting approved terminating the fund managed by American Beacon Advisors and subadvised by Bridgeway Capital Management due to underperformance, said Shelly Schueller, director of the deferred compensation program, in an email.
According to a memo from Ms. Schueller included with meeting materials, the fund had $19 million in assets in the plan as of Dec. 31. Record keeper Empower Retirement will conduct a shortlist search for a replacement and present its findings at the June 10 board meeting.
Ms. Schueller said the plan is following a state statute that says the American Beacon fund must be phased out beginning six months (or September in this case) after any board meeting vote.
A spokeswoman for American Beacon Advisors declined to comment.
The 457 plan has 18 individual investment options and a target-date fund lineup managed by Vanguard Group.
