OPERS rolls out actively managed funds
Options increase for those in our Member-Directed, Combined funds
By Michael Pramik, Ohio Public Employees Retirement System
Sept. 5, 2024 – The Ohio Public Employees Retirement System this week rolled out new investment options for participants in our Member-Directed and Combined plans.
Members now can include four actively managed equity and bond funds to complement the passively managed funds currently in the line-up in their portfolios, as well as the actively managed Invesco Stable Value Trust. Actively managed funds differ from passively managed selections in that they involve a fund manager or team making investment decisions and trades with the goal of outperforming the market.
The new funds are:
- JP Morgan Core Bond Fund
- Fisher Investments US Total Return Fund
- T. Rowe Price Integrated US Small-Mid Cap Core Equity Fund
- Lazard ACW ex-US Equity Advantage
These options are managed by external investment experts and overseen by OPERS Investments staff. They may offer increased risk/reward with the potential goal of outperforming the fund benchmark, for a higher fee relative to passively managed funds.
They will provide another layer of investments to our members and present an opportunity to invest in actively managed funds to those who don’t prefer to use the OPERS Self-Directed Brokerage Account.
Members are able to reallocate their investments to the new funds from those they are currently invested in, just as they would with the other OPERS defined-contribution choices.
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.
Can anyone explain why Opers has selected limited managed funds and no managed balanced funds?
T.Rowe has the top rated balanced fund, T. Rowe capital appreciation fund. Fidelity and Vanguard funds offer multiple low cost 5-star funds as well
Dave,
The selection of actively managed funds was meant to complement the passive funds that already were available. The belief is that “less is more” regarding investment options in this type of plan, or the choices can become overwhelming to novice investors.
Counting the target-date funds as one entry, there are currently 11 options for members to choose from. If members wish to invest in a specific fund or funds, they can opt for our Charles Schwab self-directed brokerage account, which offers thousands of mutual funds and exchange-traded funds for investment.