NEPC flags manager turnover as New Castle County adds Empower fund options
May 14, 2026 | New Castle County, Delaware
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New Castle County’s Deferred Compensation Committee on Feb. 12 reviewed NEPC’s fourth-quarter 2025 report on the county’s 457(b) plan, during which NEPC highlighted recent portfolio manager changes at two outside managers and confirmed a completed recordkeeper transition that expanded participant fund choices.
Zachary Noe of NEPC presented the quarterly report and manager due-diligence findings, saying the committee did not need to take action but should note personnel changes at underlying managers. He reported that Dodge & Cox Fixed Income Strategies announced that James Dignan will leave the firm effective June 30, 2026, and that Capital Group’s EUPAC strategy transitioned portfolio managers effective Jan. 1, 2026, with Dawid Justus disclosed as a new portfolio manager after Harold La and Chris Thomsen left the strategy. NEPC said the Capital Group strategy remains on Watch, citing an unusually high level of portfolio manager turnover over recent years.
"There were two material announcements from the plan managers this quarter," Noe told the committee, and NEPC "recommends No Action but remains critical of the number of changes to underlying portfolio managers for the strategy." The presentation noted the Watch designation dates to August and that the recent staffing changes reinforce NEPC’s concern about turnover.
Noe also reported that the plan’s recordkeeper transition to Empower was completed in the fourth quarter of 2025. As a result, the Empower Guaranteed Income Fund and the Hartford High Yield R6 Fund were added and are now available as options for plan participants.
Committee members asked for additional context about broader market implications. David Del Grande, the county chief financial officer, asked whether markets typically react to a change in the Federal Reserve chair and requested that NEPC’s Asset Allocation Team examine historical market responses. Noe said he would request the analysis and offered a preliminary view that transitions often lead to continued easing but pledged to provide more detailed data.
The committee conducted routine business consistent with the agenda: it approved the minutes of the Dec. 11, 2025 meeting (motion by David Del Grande, seconded by Krystle Clark) and adjourned at 10:35 a.m. (motion by David Del Grande, seconded by Krystle Clark). Vote tallies were not recorded in the minutes.
Zachary Noe of NEPC presented the quarterly report and manager due-diligence findings, saying the committee did not need to take action but should note personnel changes at underlying managers. He reported that Dodge & Cox Fixed Income Strategies announced that James Dignan will leave the firm effective June 30, 2026, and that Capital Group’s EUPAC strategy transitioned portfolio managers effective Jan. 1, 2026, with Dawid Justus disclosed as a new portfolio manager after Harold La and Chris Thomsen left the strategy. NEPC said the Capital Group strategy remains on Watch, citing an unusually high level of portfolio manager turnover over recent years.
"There were two material announcements from the plan managers this quarter," Noe told the committee, and NEPC "recommends No Action but remains critical of the number of changes to underlying portfolio managers for the strategy." The presentation noted the Watch designation dates to August and that the recent staffing changes reinforce NEPC’s concern about turnover.
Noe also reported that the plan’s recordkeeper transition to Empower was completed in the fourth quarter of 2025. As a result, the Empower Guaranteed Income Fund and the Hartford High Yield R6 Fund were added and are now available as options for plan participants.
Committee members asked for additional context about broader market implications. David Del Grande, the county chief financial officer, asked whether markets typically react to a change in the Federal Reserve chair and requested that NEPC’s Asset Allocation Team examine historical market responses. Noe said he would request the analysis and offered a preliminary view that transitions often lead to continued easing but pledged to provide more detailed data.
The committee conducted routine business consistent with the agenda: it approved the minutes of the Dec. 11, 2025 meeting (motion by David Del Grande, seconded by Krystle Clark) and adjourned at 10:35 a.m. (motion by David Del Grande, seconded by Krystle Clark). Vote tallies were not recorded in the minutes.
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