Metropolitan Government of Nashville (Tenn.) and Davidson County hired Vanguard Group as the new target-date fund manager for its $383 million 457 plan.
The government's benefits board selected Vanguard at its June 6 meeting, said Fadi BouSamra, chief investment officer, in an email.
Vanguard will replace Wells Fargo Asset Management, Mr. BouSamra said. Wells Fargo has been on watch due to organizational changes. The manager's parent company, Wells Fargo & Co., announced in February it was selling its money management business to private equity firms GTCR and Reverence Capital Partners.
As of March 31, the lineup of 12 Wells Fargo target-date funds had $38 million in assets in the plan, according to the plan's most recent investment report.
Investment consultant NEPC assisted.
Separately, Mr. BouSamra said the government's $4 billion pension fund had a preliminary gross return of 31% for the fiscal year ended June 30, well above its primary benchmark of 24.7%. Further asset class return information and benchmark information will be available in August, Mr. BouSamra said.