Farmers Group Inc., Los Angeles, has overhauled the investment lineup of its 401(k) plan, confirmed spokesman Mark Toohey.
Effective July 1, the plans has three tiers: target-date funds; an open choice brokerage option; and new customized investment options with underlying investment managers.
The plan added an active stock fund with five underlying managers: American Century Investment, active international growth; BlackRock, passive domestic large cap and passive emerging markets equities; Cupps Capital Management, active domestic small cap; Metropolitan West Asset Management, active small-cap value; and Mondrian Investment Partners, active international value.
The plan also added an active bond fund, managed by BlackRock, Pacific Investment Management Co. and Wellington Management; an active stable value Fund, managed by Deutsche Asset & Wealth Management; and bond index and stock index funds, both managed by BlackRock.
The target-date fund lineup and brokerage option continue to be provided by Vanguard Group.
As a result of the changes, the plan dropped the American Funds EuroPacific Growth Fund, DFA U.S. Targeted Value Portfolio fund, the Janus Research Fund, the MFS Value Fund, Vanguard Institutional Index Fund, and Vanguard Small-Cap Growth Index Fund, all of which map to the active stock fund.
Mr. Toohey wrote in an e-mailed response to questions that the company “reviews our 401(k) plan on a regular basis and these changes are the result of our most recent review.” He would not provide further information.
As of Dec. 31, 2011, the Farmers Group 401(k) Savings Plan had $1.6 billion in assets, according to the company's most recent Form 5500 filing.
Towers Watson assisted.
Phone calls to Scott Lindquist, executive vice president and chief financial officer, and Deborah Aldredge, chief administrative officer, were referred to Mr. Toohey.