Pasadena Weighs 2 Fund Replacements for $472.8 Million 457 Plan as It Eyes Target-Date Delegation
Updated
Updated · Pasadena Now · Aug 3
Pasadena Weighs 2 Fund Replacements for $472.8 Million 457 Plan as It Eyes Target-Date Delegation
1 articles · Updated · Pasadena Now · Aug 3
Summary
Aug. 4's Pasadena committee meeting will review swapping out two underperforming funds in the city's $472.8 million 457 plan, a key retirement vehicle for city employees.
MFS Value—holding about $15.5 million—would be mapped to a Putnam large-cap value strategy, while Invesco Global, with about $5 left after an earlier transfer, would move to the existing American Funds EUPAC option.
Three other funds would remain on watch: MFS Growth at $44.4 million, Vanguard International Value at $4.4 million and MFS Mid Cap Growth at $7.1 million; the committee will also discuss watch options for Allspring Special Mid Cap Value.
Target-date funds, which hold roughly 36% of plan assets, could be shifted to discretionary management by Fiduciary Consulting Group, a move the report says may secure institutional pricing, add no extra consultant fee and shift fund-selection liability from the committee.
The recommendations come after a strong second quarter for markets, with the S&P 500 up 15.2% and the Russell 2000 up 21.5%; the plan's stable value option was also renamed Franklin Stable Value Fund effective July 15.