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Board votes to shift underperforming MFS growth allocation to Vanguard index
Summary
Trustees approved replacing a long-underperforming MFS Growth mandate with Vanguard Russell 1000 Growth institutional shares (VRGWX) or the VONG ETF as a backup, citing lower fees and tracking simplicity.
Trustees voted to move the plan's MFS Growth allocation into a lower-cost Vanguard growth index, citing multi-year underperformance of the active manager and a large fee differential. A trustee moved the change after a Mariner Institutional briefing showed MFS had lagged the benchmark and that Vanguard's institutional share (VRGWX) or its ETF (VONG) offered materially lower expense ratios (Mariner quoted VIGAX/VONG expense ratios near 0.07% as cheaper alternatives). "I'll make a motion that we just move the MFS money to the Vanguard institutional large cap growth, Russell 1000 comparable, if we can get into it," the trustee said; the motion was seconded and passed by voice vote.
Board members discussed benchmark choice (Russell 1000 growth vs. other growth indices), potential tracking error between indices and the operational option to use an ETF if institutional shares are unavailable. Brad confirmed the institutional ticker VRGWX as the desired vehicle and VONG as the ETF fallback. Trustees noted the move reduces management fees and simplifies the portfolio's domestic-equity structure.
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