Orlando, Fla., is adding the Dodge & Cox Income Fund to the investment options lineup of its $317 million 401(a) plan, said Shannon Hicks, city treasury manager.
The city added the active domestic core-plus fixed-income fund to replace the Western Asset Core Plus Bond Fund, a similar-style fund managed by Western Asset Management.
Investment consultant NEPC recommended the change due to recent developments at the firm regarding Ken Leech.
A number of retirement plans in the past two months have terminated Western Asset Management after the Aug. 21 announcement by Western Asset’s parent company Franklin Templeton that the SEC had issued a Wells notice to then co-CIO Leech, identifying him as a target of an investigation focusing on “past trade allocations involving Treasury derivatives."
Leech has since stepped down as co-CIO, and fellow co-CIO Mike Buchanan has taken on sole CIO responsibilities.
As of June 30, the Western Asset Core Plus Bond Fund had $4 million in assets in the plan.
