MAILED COMMUNICATION
 

Starting the end of October, 2024, you’ll pay lower fees on several investment options in your retirement plan.
This change affects participants in the following plans administered by Minnesota State Retirement System (MSRS):

  •     Minnesota Deferred Compensation Plan (MNDCP)
  •     Health Care Savings Plan (HCSP)
  •     Unclassified Employees Retirement Plan
  •     Hennepin County 1% Supplemental Retirement Plan

As a Dodge & Cox Fund participant, please read how this change may affect you.

Changes to the Dodge & Cox Income Fund

Effective October 31, 2024, the Dodge & Cox Income Fund will change to a lower-cost investment of the same fund. Instead of offering the Dodge & Cox Income Fund as a mutual fund, it will be offered as a Separate Account called the Core Bond Account.

You will notice that the price per share of the new lower cost Core Bond Account will be different than the Dodge & Cox Income mutual fund resulting in you owning more or less shares.

CURRENT INVESTMENT NAME CURRENT ANNUAL FEE
(as of 6-30-2024)		 NEW INVESTMENT NAME NEW ANNUAL FEE
(as of 10-31-2024)
Dodge & Cox Income Fund 0.41% Core Bond Account 0.16%

 

The general features of the Core Bond Account, such as the investment objective will not change. The Core Bond Account will still be managed by Dodge & Cox and the underlying investments are virtually the same as the Dodge & Cox Income mutual fund. 

The change will have no impact on your fund balance (also known as market value). 

Separate accounts are commonly utilized by institutional investors such as pension funds or large retirement plan sponsors (like the MSRS), endowments, foundations, and insurance companies. These entities have significant capital to invest in an investment strategy. Separate accounts will have a stated investment objective and often provide investors with greater customization, transparency, and control over their investment portfolios compared to pooled investment vehicles like mutual funds

Separate Accounts do not have ticker symbols like mutual funds. To track the value and daily performance of the Dodge & Cox Core Bond Account, log into your account online. Performance will continue to be updated and posted monthly on the MSRS website. 

To accommodate the change from a mutual fund to a separate account, a temporary blackout period is required. The temporary blackout period begins 3 p.m. Central time on October 25, 2024 thru October 30, 2024. 

During the blackout period:

  • You will be unable to diversify your investments into or out of the Dodge & Cox Income Fund.
     
  •  Any contributions your employer remits to your retirement plan account that are to be allocated to the Dodge & Cox Income Fund will post to your account on October 31, 2024.
     
  • Any transfer requests into or out of the Dodge & Cox Income Fund may not be made until October 31, 2024
     
  • Any distribution requests received by form will be processed for all plan investments except the Dodge & Cox Income Fund. Dodge & Cox Income Fund distributions will occur on October 31, 2024. You will receive two separate distribution checks.
     
  • A partial distribution request from your online account will occur pro-rata from all investments you hold except the Dodge & Cox Income Fund.
     
  • A full distribution request (100% of your account balance) from your online account will occur from all investments you hold except the Dodge & Cox Income Fund. You will need to request a distribution of the Dodge & Cox Income Fund once the blackout period ends (October 31).