Contact: Frank Lester (919) 814-3811

State Treasurer Folwell Applauds Vote to Replace Investment Manager
Move decreases fees by more than $4.2 million per year for NC 401(k), NC 457 and NC 403(b) members

(Raleigh, N.C.) – State Treasurer Dale R. Folwell, CPA praised the Supplemental Retirement Board of Trustees for its recent decision to replace a money manager in the NC 401(k), NC 457 and NC 403(b) supplemental retirement plans. The move will save members who are invested in the fund over $4.2 million per year.

At its September meeting, members of the Supplemental Retirement Board voted to replace the PIMCO Inflation Response Multi-Asset Fund in all three plans.

“This vote shows our continued effort to eliminate unnecessary fees paid by the hardworking public servants who participate in these plans," Treasurer Folwell said. “The Board's decision to reduce member fees is yet another reason why these award-winning plans are such a valuable benefit for our state and local government workers."

Treasurer Folwell also thanked internal staff for identifying the savings and recommending the change in investment managers.

Within the NC 401(k) and NC 457, the PIMCO Fund will be replaced with the BlackRock Strategic Completion Fund. Fees and expenses for the BlackRock Fund are 0.10 percent compared to 1.22 percent for the PIMCO Fund, saving participants about $4.2 million each year.

Within the NC 403(b), the PIMCO Fund will be replaced by the Principal Diversified Real Asset Fund. The expense ratio of the Principal Fund is 0.80 percent, compared to 1.22 percent for the PIMCO Fund, saving participants approximately $2,553 each year.

Treasurer Folwell has reduced investment management fees and costs for the defined benefit and defined contribution plans by a total of $86 million since 2017. The savings have a four-year run rate of nearly $400 million, far exceeding his pledge of cutting $100 million over four years.

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