Vanguard Total Bond Market Index.pdf

This is a product specification document for the Vanguard Total Bond Market Index, prepared in support of the State of New Jersey's procurement of defined contribution retirement plan administrative services. The document outlines the characteristics and performance metrics of a total bond market index fund, which represents one of the 27 investment options available to participants in the New Jersey State Employees Deferred Compensation Plan (NJSEDCP) and the New Jersey Defined Contribution Retirement Program (NJDCRP). The fund is designed to provide broad exposure to the U.S. bond market across various maturity lengths and credit qualities, serving as a core fixed-income investment option for the 163,987 participants across both plans with approximately $6.1 billion in total assets under management.

The Vanguard Total Bond Market Index fund is a passive investment vehicle that tracks the Bloomberg U.S. Aggregate Bond Index, offering participants low-cost exposure to investment-grade bonds with minimal management fees. This fund option is relevant to the contract procurement as the selected administrative services vendor must manage and provide support for the full suite of 27 investment options, including index funds and actively managed options, while ensuring accurate recordkeeping, performance reporting, and participant education regarding investment choices. The inclusion of this specification document indicates that the State of New Jersey intends to maintain or expand access to diversified, cost-effective investment vehicles within both retirement plans as part of the comprehensive administrative services contract valued at approximately $6.1 billion in assets.