AES Corp., Arlington, Va., overhauled the investment options lineups of its two 401(k) plans in 2020 to give the two plans identical lineups, company spokeswoman Gail Chalef confirmed in an email.
Among the changes in the AES Corp. Retirement Savings Plan was the addition of a target-date fund series managed by T. Rowe Price Group.
As of Dec. 31, the series of 12 target-date funds had $132 million in assets in the plan, according to its 11-K filing with the SEC on June 25.
A comparison of this year's and last year's 11-K filings shows the plan removed a similar target-date funds series managed by Vanguard Group in 2020.
As of Dec. 31, 2019, the series of 12 target-date funds had $112 million in assets in the plan, according to the prior 11-K filing.
Separately, a comparison of AES Corp.'s 11-K filing on June 23 for the Indianapolis Power & Light Co.'s 401(k) plan and last year's filing shows that plan already had T. Rowe Price as its target-date fund manager. The series of target-date funds had $131 million in assets in that plan as of Dec. 31, according to its new 11-K filing.
AES Corp. purchased the Indianapolis Power & Light Co. in 2001.
Also, both plans added four index funds managed by State Street Global Advisors in 2020.
As of Dec. 31, the State Street S&P 500 Index Fund, State Street Small/Mid Cap Index Fund, State Street U.S. Bond Index Fund and State Street Global All Cap Equity ex-U.S. Fund had a total of $103 million, $33 million, $19 million and $12 million, respectively, in assets in the two plans, according to the new 11-K filing.
The AES Corp. plan removed four index funds managed by Vanguard Group in 2020.
As of Dec. 31, 2019, the Vanguard Institutional Index Fund, Vanguard Extended Market Index Fund, Vanguard Total Bond Market Index Fund and Vanguard Total International Stock Index Fund had $55 million, $28 million, $14 million and $12 million, respectively, in assets in the plan, according to the prior 11-K filing.
In the IP&L plan, the SSGA funds replaced two Vanguard index funds and one index fund managed by Fidelity Investments.
As of Dec. 31, 2019, the Vanguard Institutional Index Fund, Fidelity Extended Market Index Fund and Vanguard Intermediate Treasury Index Fund had $7 million, $3 million and $2 million, respectively, in assets in the IP&L plan, according to the plan's prior 11-K filing.
Also in 2020, the AES Corp. plan added the American Funds EuroPacific Growth Fund, T. Rowe Price Blue Chip Growth Fund and American Fund Washington Mutual Investors Fund to the investment options lineup.
As of Dec. 31, the active international growth equity fund managed by Capital Group, the active domestic large-cap growth equity fund managed by T. Rowe Price Group and the active domestic large-cap value equity fund managed by Capital Group had $9 million, $5 million and $1 million, respectively, in assets in the plan, according to the new 11-K filing.
The IP&L plan also added the T. Rowe Price Blue Chip Growth Fund and the MetWest Total Return Bond Fund, an active domestic core-plus fixed-income fund managed by Metropolitan West Asset Management, which had $10 million and $4 million, respectively, in assets in the plan as of Dec. 31, according to the IP&L plan's new 11-K filing.
In the AES Corp. plan the MetWest Total Return Bond Fund was an incumbent fund in its lineup (with $17 million in assets in the plan as of Dec. 31), while in the IP&L plan, the two American Funds funds were incumbent funds and had a total of $5 million in assets in that plan as of Dec. 31.
The AES Corp. plan removed two active funds in the lineup in 2020: the Columbia Contrarian Core Fund and the TS&W International Large Cap Equity Trust.
As of Dec. 31, 2019, the active domestic large-cap core equity fund managed by Columbia Threadneedle Investments and the active international large-cap value equity trust managed by Thompson Siegel & Walmsley had $33 million and $8 million, respectively, in assets in the plan, according to the prior 11-K filing.
Funds removed from the IP&L plan's lineup in 2020 were the Harbor Capital Appreciation Institutional Fund, an active domestic large-cap growth equity fund managed by Harbor Capital Advisors and subadvised by Jennison Associates; the PIMCO Total Return Fund, an active domestic core-plus fixed-income fund managed by Pacific Investment Management Co. and the BlackRock Inflation Protected Bond Fund.
Those funds had $7 million, $2 million and $1 million, respectively, in assets in the IP&L plan as of Dec. 31, 2019, according to its prior filing.
The changes now give the two 401(k) plans identical investment options lineups.
As of Dec. 31, the AES Corp. Retirement Savings Plan had $510 million in assets and the Employees' Thrift Plan of Indianapolis Power & Light Co. had $207 million in assets, according to the new 11-K filings.
"Our plan changes were made to allow for a consistent employee experience for all U.S.-based AES people," the company said in a statement emailed by Ms. Chalef. "AES promotes mobility of talent across its markets and globally, so having fully harmonized plans across the U.S. has long been a goal. The changes also help to drive incremental administrative savings, but these savings are not the primary reason for the change."
