PARTICIPANT NOTICE
City of Grand Junction Retirement Plans
In a continual effort to assist you in meeting your retirement goals, the Joint Retirement Pension Board for the City of Grand Junction has worked with Innovest Portfolio Solutions LLC, a national, independent retirement plan investment advisory firm, to complete a comprehensive review of the City’s 401(a) and 457 retirement plans. This review led to a thorough, multi-phase process to streamline and enhance the investment options offered in these plans through MissionSquare.
This process spanned several months and will result in some very positive changes for employees.
- Streamlined menu of investment options with enhancements to improve overall available funds while eliminating redundancy/overlap.
- Reduce total weighted average investment expense for the plans from 0.57% to 0.43%.
- Improve transparency of investment costs and better access to independent information regarding the funds.
- In short, historically superior investment options with lower costs to participants.
Investment changes are scheduled to occur on or about March 22, 2024. The funds being removed will be automatically transferred to the designated fund, as shown in the table below.
Human Resources, Innovest & MissionSquare will provide in-person informational meetings to employees prior to the implementation of the changes.
Meeting 1: February 12, 2024 at 12pm in HR Training Room
Meeting 2: February 12, 2024 at 4pm in the HR Training Room
Meeting 3: February 13, 2024 at 7:30am in the GJPD Training Room
Each of the old investment options listed below is being replaced with a new fund. All old investment options are MissionSquare proprietary investments. The new investment options are best-in-class investments in their respective asset classes and offer a cleaner and more transparent cost structure. For these reasons and further rationales listed, the decision was made to replace the funds with investments shown in the table.
Please note the MissionSquare PLUS fund and MissionSquare Retirement Income Advantage funds will continue to be offered in the plans.
* Definitions of rationales are listed below the table.
Old Investment Option | New Investment Option | Similar Investment Style & Objective | Rationale* |
MSQ 500 Stock Index |
| Fidelity 500 Index (FXAIX) | Yes | Lower expense for similar style |
MSQ Mid/Small Co Index |
| Fidelity Extended Market Index (FSMAX) | Yes | Lower expense for similar style |
Old Investment Option | New Investment Option | Similar Investment Style & Objective | Rationale* |
MSQ Broad Market Index |
| 50% to Fidelity 500 Index (FXAIX) 50% to Fidelity Extended Market (FSMAX) | Yes | Lower expense for similar style, eliminate investment redundancy |
MSQ Overseas Equity Index |
| Fidelity International Index (FSPSX) | Yes | Lower expense for similar style
|
MSQ Core Bond Index |
| Fidelity US Bond Index (FXNAX) | Yes | Lower expense for similar style
|
MSQ MFS Value |
| Dodge & Cox Stock (DOXGX) | Yes | Underperformance relative to new investment option, lower expense for similar style |
MSQ Equity Income |
| Dodge & Cox Stock (DOXGX) | Yes | Underperformance relative to new investment option, eliminate investment redundancy, lower expense for similar style |
MSQ Blackrock Equity Dividend |
| Dodge & Cox Stock (DOXGX) | Yes | Underperformance relative to new investment option, Lower expense for similar style, eliminate investment redundancy |
MSQ Growth & Income |
| Fidelity 500 Index (FXAIX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
MSQ Invesco Main Street |
| Fidelity 500 Index (FXAIX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
MSQ Contrafund |
| Fidelity Blue Chip Growth (FBCGX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
Old Investment Option | New Investment Option | Similar Investment Style & Objective | Rationale* |
MSQ T Rowe Growth Stock |
| Fidelity Blue Chip Growth (FBCGX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
MSQ Victory Sycamore Established Value |
| Victory Sycamore Established Value (VEVRX) | Yes | Lower expense for same investment strategy |
MSQ Select Value |
| Victory Sycamore Established Value (VEVRX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
MSQ Aggressive Opportunities |
| Janus Henderson Enterprise (JDMNX) | Yes | Underperformance relative to new investment option, eliminate investment redundancy |
MSQ AMG Times Square Mid Cap Growth |
| Janus Henderson Enterprise (JDMNX) | Yes | Eliminate investment redundancy, lower expense for similar style |
MSQ Carillon Eagle MCG |
| Janus Henderson Enterprise (JDMNX) | Yes | Underperformance relative to new investment option, lower expense for similar style, eliminate investment redundancy |
MSQ JPMorgan Small Cap Value |
| DFA U.S. Small Cap Value (DFSVX) | Yes | Underperformance relative to new investment option, lower expense for similar style |
MSQ Small Cap Discovery |
| Fidelity Extended Market Index (FSMAX) | Yes | Lower expense for similar style, eliminate investment redundancy |
MSQ Invesco Discovery |
| Invesco Discovery (ODIIX) | Yes | Lower expense for same investment strategy |
MSQ International |
| Fidelity International Index (FSPSX) | Yes | Eliminate investment redundancy, lower expense for similar style |
MSQ Diversified International |
| Vanguard International Growth (VWILX) | Yes | Lower expense for similar style |
MSQ Emerging Markets |
| GQG Emerging Markets (GQGIX) | Yes | Underperformance relative to new investment option |
Old Investment Option | New Investment Option | Similar Investment Style & Objective | Rationale* |
MSQ Cohen & Steers Realty |
| Fidelity Extended Market Index (FSMAX) | No | Lower expense, eliminate specialty asset class, eliminate investment redundancy |
MSQ Parnassus Core Equity |
| Parnassus Core Equity (PRILX) | Yes | Lower expense for same investment strategy |
MSQ Western Asset Core Plus Bond |
| Dodge & Cox Income (DOXIX) | Yes | Underperformance relative to new investment option, lower expense for similar style
|
MSQ PIMCO High Yield |
| Dodge & Cox Income (DOXIX) | No | Lower expense, eliminate specialty asset class |
MSQ Inflation Focused |
| Dodge & Cox Income (DOXIX) | No | Lower expense, eliminate specialty asset class |
MSQ Puritan |
| Age-Appropriate American Funds Target Date Retirement Funds R6 | Yes | Eliminate investment redundancy, lower expense |
MSQ Risk‐Based Model Portfolios (Conservative Growth, Traditional Growth, Long-Term Growth & Global Equity Growth) |
| Age-Appropriate American Funds Target Date Retirement Funds R6 | Yes | Eliminate investment redundancy, lower expense |
MSQ Retirement Target Date Funds (Income, 2015-2060) |
| Age-Appropriate American Funds Target Date Retirement Funds R6 | Yes | Underperformance relative to new investment option, lower expense for similar style |
MSQ Cash Management |
| Vanguard Treasury Money Market (VUSXX) | Yes | Lower expense |
N/A | Add | Dodge & Cox International (DOXFX) | N/A | Adding opportunity to invest in International Value Equity asset class |
* Rationale Definitions:
Lower expense/Lower expense for similar style means the new investment option is cheaper than the old investment option. Monitoring expenses is important because fees impact the net performance of investments.
Lower expense for same investment strategy means the new investment option is the same investment strategy as the old investment option without the MissionSquare wrapper. The new investment option is the most optimal fee structure for the fund and is more transparent.
Eliminate investment redundancy refers to the old investment option’s asset class, if that asset class currently offers multiple funds in that category. For example, there are currently three Large Cap Value funds: MSQ MFS Value, MSQ Equity Income, and MSQ Blackrock Equity Dividend. These three funds have similar investment objectives and overlapping stocks, leading to redundancy in the Large Cap Value asset class. When only one fund is offered per asset class it ensures participants do not accidentally invest in multiple funds with the same style and objective which can lead to lack of diversification in their retirement portfolio.
Underperformance relative to new investment options is assessed over the 3 and 5-year time periods. If a fund lists this rationale, it means the new investment option has outperformed the old investment option in both the 3- and 5-year time periods. These time periods are sufficiently long to gauge a manager’s ability to manage the fund over time while being recent enough to have relevance.
Eliminate specialty asset class refers to specialty asset classes. Specifically for the 401(a) and 457 plans, specialty asset classes include Real Estate, High Yield Bonds, and Inflation-Focused funds. These asset classes are difficult to invest in properly for many retirement plan participants, therefore they are being mapped to a fund that has some overlap in either strategy or style and is a more standard retirement plan investment.
Adding opportunity to invest in International Value Equity asset class is specific to the addition of the Dodge & Cox International Value fund. The 401(a) and 457 plans do not currently offer a fund in the International Value asset class, the addition of Dodge & Cox International gives participants the opportunity to invest in this asset class.
What should you do?
- No action is required. On or about March 22, 2024, when the funds being eliminated are removed, your current account balance in and all future contributions to those funds will be automatically transferred to the new funds as shown above.
- You may contact MissionSquare at any time at 1-800-669-7400 or online at www.missionsq.org to check your account balance or redirect your current account balances and future contributions into any of the investment options available within the Plan.
Who do I call for help?
MSQ Current Account Information > Balances > Investment Changes > Change personal info Contact: MissionSquare www.missionsq.org | 1.800.669.7400
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Grand Junction Human Resources 250 North 5th Street, 2nd Floor Grand Junction, CO 8150 970.244.1551 |
The Plans’ Investment Consultant Innovest Portfolio Solutions, LLC 7979 East Tufts Avenue, #1700 Denver, CO 80237 303.694.1900 |
