The University of Oklahoma is reorganizing its four defined contribution (DC) plans with a combined $1.33 billion in assets, Pensions & Investments reports. The officials have reduced the investment choices to four tiers from 1,300 individual options. Fidelity Investments will be the only record keeper.
The Fidelity Freedom Funds’ series of target-date funds is the first tier and the default option, while the second tier consists of index funds from Vanguard Group and Fidelity. The third tier provides nine actively managed funds from seven different firms, including PIMCO and MFS Investment Management, plus a fixed annuity from TIAA-CREF. The fourth tier is a brokerage window, which has over 3,000 mutual funds and ETFs and is administered by Fidelity.
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