On October 2, UC is making changes to the fund menu for the UC Retirement Savings Program—the 403(b), 457(b), and DC Plans.
UC is updating the fund menu for the UC Retirement Savings Program—the 403(b), 457(b), and DC Plans. These changes are designed to make it easier for you to build a diversified, lower cost investment mix based on your time horizon and risk tolerance.
The changes are scheduled to take place after 1:00 p.m. PT on October 2, 2017, and can be viewed in your account on October 3, 2017.
Three funds will have a new name but will keep the same investment manager, strategy, and holdings. Investment management fees (the “expense ratio”) will not change.
Effective October 2, 2017:
The Vanguard REIT Index Fund’s name will change to the UC Real Estate Fund.
The Vanguard Social Index Fund’s name will change to the UC Social Equity Fund.
The Vanguard Small Cap Fund’s name will change to the UC Domestic Small Cap Equity Fund.
Reasons for the change:
The new names make understanding how each fund invests more intuitive and are consistent with the names of our other UC funds. The investment manager, objectives, strategy, and holdings of these three funds will remain the same. Only the names and the fund codes used on NetBenefits® will change. There is no impact on investment fees (the “expense ratio”).
Three funds will have a new name and investment structure but will keep the same investment manager and strategy. All three funds will have lower investment management fees.
Effective October 2, 2017:
Reasons for the change:
UC’s primary goal is to provide you with high-quality, lower fee investment choices. We are switching these three funds from publicly available mutual funds to funds managed specifically for UC’s 403(b), 457(b), and DC Plans. One will be a separately managed account with Dimensional Fund Advisors (DFA); two will be collective trusts with Fidelity Investments®. The result: These funds will have a new name but keep the same investment manager and strategy. All three funds will have lower fees because they will have lower marketing and overhead-related costs than similar, publicly traded mutual funds. And when you pay lower fees, more of your money can go to work for your future.
Note that the Fidelity funds that currently provide a revenue credit to help offset plan expenses will no longer provide that credit due to the restructuring.
The UC Balanced Growth Fund and the UC Global Equity Fund will be removed from the menu. Balances in and future contributions to these funds will transfer as follows, unless you select different funds.
Effective October 2, 2017:
Reasons for the change:
These two funds are similar to other funds on the menu, so removing them eliminates duplication.
If you need help evaluating your decisions, you can talk one-on-one with a Retirement Planner by calling 1-800-558-9182.
1With the exception of the UC Pathway Income Fund, the asset allocation of each UC Pathway Fund will change over time. The UC Pathway Funds are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high-yield, small-cap, and foreign securities. Principal invested is not guaranteed at any time, including at or after the funds’ target dates.
The University of California intends to continue the benefits described here indefinitely; however, the benefits of all employees, retirees, and plan beneficiaries are subject to change or termination at the time of contract renewal or at any other time by the University or other governing authorities. If you belong to an exclusively represented bargaining unit, some of your benefits may differ from the ones described here.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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