Oklahoma Public Employees switches to Vanguard CITs from its target-date funds

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Oklahoma Public Employees Retirement System, Oklahoma City, replaced the Vanguard Group target-date funds offered in the system’s two defined contribution plans with Vanguard’s corresponding collective investment trusts, said Joseph Fox, executive director, in an email.

The board of the $13.9 billion retirement system voted to replace the plans’ Vanguard Target Retirement mutual funds, including the Vanguard Target Retirement 2020, 2030, 2040 and 2040 funds, and the Vanguard Target Retirement Income Fund, with corresponding Vanguard Target Retirement Collective Investment Trust Funds because the CITs offered modestly lower fees and other advantages, Mr. Fox said. The decision was made at a board meeting May 26.

The board also approved the addition of the Vanguard Target Retirement 2060 CIT as an investment option in both DC plans.

Lastly, the board approved the recommendation to put the T. Rowe Price Blue Chip Growth Fund, which is in both DC plans, on watch due to performance issues and changes to the portfolio management team, Mr. Fox said. Lara Naylor, a spokeswoman for T. Rowe Price Group, declined to comment, saying the firm does not discuss client matters.

The retirement system’s two defined contribution plans — SoonerSave and Pathfinder — had assets of $1.3 billion and $218 million, respectively, as of March 31.

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