Securian Adds 12 Investment Options to Retirement Lineup

Securian Retirement added twelve investment options for retirement plan sponsors and participants, now offering employers more than 120 investment options.

The funds were selected using qualitative and quantitative criteria, Securian reported. The Due Diligence Committee’s review focused on the fund’s expenses, risk adjusted performance, and whether their asset managers followed a consistent investment process that was backed by stable investment firms.  

The new options and their underlying investments are:
     

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  • Long-Term Bond I2 — PIMCO Long Duration Total Return Fund, Institutional Class (primarily for defined benefit plans) 
  • Global Allocation I1, 2 – BlackRock Global Allocation Fund, Institutional Shares
   
  • Large Growth Equity XIV – BlackRock Capital Appreciation Fund, Institutional Shares
   
  • Mid-Cap Value Equity V3 – American Century Mid Cap Value Fund, Institutional Class
   
  • Small-Mid Equity I3 – Eaton Vance Atlanta Capital SMID-Cap Fund, Class A
   
  • Small Value Equity XVI3 – AllianceBernstein US Small Cap Value
   
  • Small Value Equity XVII3 – DePrince, Race & Zollo Small-Cap Value
   
  • International Core V1 – Manning & Napier Fund, Inc. Overseas Series
   
  • Health Care Equity III4 – T. Rowe Price Health Sciences Fund
   
  • Natural Resources II1, 3, 4, 5 – Nuveen Tradewinds Global Resources Fund, Class I
   
  • Social Equity III1, 3, 6 – Pax World Global Green Fund, Institutional Class
   
  • International Growth IV1, 5 – Invesco International Growth Fund, Institutional Class 

The products are offered through a group variable annuity contract issued by Minnesota Life Insurance Company. All fund company allowances are allocated back to participants daily. 

“We identified high priority asset classes within our array, based on our own assessment and client and adviser feedback,” said Kent Peterson, CFA, FSA, AIF, 
Securian Retirement. “The new options either expand the depth of our offerings in a given asset class or replace options that no longer meet our standards.”


Participant Transfers Heat Up Ahead of Federal Debt Agreement

Whether it was the debt crisis or the markets, participant transfers have perked up in recent days. 

Aon Hewitt reports that in the days leading up to the recent agreement to raise the federal debt ceiling, 401(k) trading volume has reached “significant” levels—an indication that workers have been highly reactive amidst continuing uncertainty, according to the consultancy.

Aon Hewitt’s database of more than 100 401(k) plans, representing 4.7 million workers shows a marked increase in 401(k) trading volume since July 25. According to the firm, on a typical day, participant transfers total $300M-$400M in trades. However, late last week, trading volume was two-to-three times the normal level, reaching a peak of more than $900M on Thursday, July 28.

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Trading volume remained high on Monday, reaching $862M, as Congress moved closer to reaching a compromise.

According to Aon Hewitt’s 401(k) Index, last week’s transfer activity showed significant movement away from domestic equities into fixed income vehicles, primarily stable value funds.  In fact, 96% of assets moved into fixed income during the period, the third highest monthly transfer amount out of equities and into fixed income investments since Aon Hewitt began tracking this data in 1997. 

 

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