MassMutual, BlackRock Offer Retirement Program
MassMutual Retirement and BlackRock have developed a customized, lower-cost alternative to managed accounts for defined contribution retirement plans.
The new Managed Allocations program provides a choice of asset allocation strategies, professional management and fiduciary oversight for retirement plans, according to the firms.
MassMutual provides the record keeping and BlackRock assumes fiduciary responsibility for designing and updating the glide path models and asset allocations.
Managed Allocations is available to sponsors of defined contribution retirement plans with at least $15 million in assets.
The program provides three glide path options, including conservative, moderate and aggressive. The choice of glide path may hinge on a variety of considerations, including whether the plan sponsor offers a defined benefit pension or offers company stock as an investment option, says BlackRock. The glide path also depends on employee demographics, employee savings rates and other factors that advisors can help clients navigate.
Plan sponsors can choose from six to nine asset classes, and BlackRock will rebalance the glide path model and asset classes annually.
“MassMutual’s data on plan participants indicates that asset allocation strategies and target-date funds are growing in popularity, especially with younger retirement savers,” says Eric Wietsma, senior vice president of sales and worksite education for MassMutual Retirement Services. “Advisors and plan sponsors want more control over the quality of the funds selected as part of the asset allocation models, as well as the glide paths available within these investment strategies.”
Mission Markets Platform Supports Impact Investing
Mission Markets has introduced a technology platform that gives institutional investors the opportunity to research and make investments focused on favorable social and environmental outcomes. It also offers members access to articles, research and blogs about impact investing.
“Investors in all categories are seeking investments aligned with their personal values,” says Ken Marienau, Mission Markets CEO. “These investments might help improvements in education, health, community development or sustainability.”
AssetMark Launches iPad App
Concord, Calif.-based AssetMark has created an iPad app with interactive business development capabilities.
The mobile app allows advisors to e-mail brochures and produce sample portfolios through an interactive client questionnaire. Digital versions of the firm’s marketing materials can be accessed and advisors can customize the app with their firm’s logo.
“Advisors told us that the No. 1 way they’d use a mobile app would be to develop business with prospective and existing clients,” says Charles Goldman, president and CEO of AssetMark Inc. “What we’ve created addresses that need in a compelling way.”
New York Life’s Retirement Readiness Dashboard
New York Life Retirement Plan Services has introduced a new Retirement Readiness Dashboard for plan sponsors and advisors to help determine employees’ retirement preparedness and model plan changes to increase it.
The dashboard shows how prepared participants are for retirement when they are compared with industry peers and all other New York Life retirement clients. It also allows segmentation by participant age, tenure, salary and division.
The dashboard features interactive tools to show how adding features such as auto-enrollment or auto-escalation or making changes in a corporate match will affect participant readiness.
Sage Creates Small Plan LDI Strategies
Austin, Texas-based Sage Advisory Services has created a custom liability-driven investment solution specifically targeted at small pension plans with between $1 million and $10 million in assets.
To achieve its goals, Sage creates a portfolio of credit and government bond ETFs that closely match the duration, yield to maturity and option-adjusted spread of the liability benchmark and then adjusts the portfolio monthly. This enables the firm to closely match the risk profile of buying individual securities but at a cost-effective price point and on a smaller scale.
Compass Launches Three ETFs
Compass EMP Funds’ three new ETFs use a volatility-weighted approach, equally weighting each holding based on its risk contribution to a portfolio so one stock can’t dominate.
“The ETFs have the ability to liquidate 75% of the securities in the index to cash in the event of a market decline,” says Stephen Hammers, co-founder and CIO of Compass EMP Funds.
The three Compass EMP U.S. funds are the 500 Volatility Weighted Index ETF (CFA), the 500 Enhanced Volatility Weighted Index ETF (CFO) and the EQ Income 100 Enhanced Volatility Weighted Index ETF (CDC).
MassMutual, BlackRock Offer Retirement Program
August 2014
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