Products February 1, 2007

New Managed Account Offering Available for Retirement Plan Participants

MG Advisory and CLS Investment Firm, a third party money manager, have joined together to offer a retirement account management service to plan participants, the firms announced.
Reported by

The new offering allows plan participants to invest some or all of their retirement assets into an individually managed account (IMA) so participants get professional asset management for a minimal cost and with no minimum account balance, according to a press release. It will bring together MG Advisory’s Internet-ready Asset Management Services with CLS’s portfolio strategy for retirement accounts called Customized Portfolio Management, in which participants’ assets are invested in a customized portfolio according to their individual investment objectives and financial goals.

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This product has multiple adviser options, according to the press release. It can be a tool to generate additional leads and clients, and can also increase revenue for third party administrators and financial advisers.Further, the announcement said that because the funds are professionally selected and the managed account product will offer mutual fund analysis and ongoing monitoring and reporting, it can be used to help advisers reduce their fiduciary responsibility.

MG Advisory is a subsidiary of Matrix Settlement & Clearance Services, which itself is a subsidiary of MG Colorado Holdings, Inc., which is a provider of back-office trust, custody, trading, and mutual fund settlement and clearance services for financial institutions including banks, broker-dealers, trust companies, investment advisers, and record-keepers/third-party administrators (TPAs).

The Markets February 1, 2007

It’s Official – Great-West Picks Up Putnam

As anticipated, Putnam Investments has announced that it will be acquired from Marsh&McLennan Companies by Great-West Lifeco Inc., a subsidiary of Power Financial Corporation.
Reported by
Commenting on the transaction, Raymond L. McFeetors, President and Chief Executive Officer of Great-West Lifeco Inc. said: “The transaction gives us a strong presence in the growing U.S. retail and institutional investment management markets and substantially strengthens our competitive position in international markets including Europe and Japan. It complements our strong and growing presence in the U.S. retirement savings market.”
Acquisition Mode
Last year Great-West, which has been on something of an acquisition tear in the US recordkeeping market, scooped up the 401(k) retirement plan business of U.S. Bank (see Great-West Sweeps Up More 401(k) Business at ) and MetLife (see Great-West to Acquire MetLife 401(k) and DB Business). Mercer HR Services will continue to provide services for Putnam’s 401(k) business.
The deal will take place for an agreed upon purchase price of $3.9 billion, the same price that emerged in late December reports that a deal was imminent. The transaction is expected to close by the middle of the year, and includes Putnam’s interest in PanAgora Asset Management, which will continue to operate as a separate Putnam subsidiary, according to a press release.
Putnam will remain headquartered in Boston and retains its brand, operations, personnel, and offices. Putnam’s senior team, including investment and business professionals, remains in place and continues to be led by Putnam President and Chief Executive Officer Charles E. Haldeman, Jr., according to the firm.
“Putnam was fortunate to have a number of interested purchasers,’ noted Haldeman. “We are joining the Power Financial group because it is in the best long-term interests of our investors, clients, financial advisors, strategic partners, and employees. This new relationship provides for the greatest degree of continuity, enabling us to continue our mission of taking care of other people’s money by providing consistent, dependable, and superior investment performance over time.’
R. Jeffrey Orr, President and Chief Executive Officer of Power Financial Corporation noted that “Putnam’s leadership team will continue to manage Putnam as a separate business, as is the practice with other companies in our group. We place a high value on retaining Putnam professionals and staff to assure the ongoing stability of the organization and the confidence of its clients and consultants.’
Power Corp. is Canada’s biggest mutual-fund operator via its majority ownership of IGM Financial Inc. IGM has run mutual funds for more than 75 years, though for much of that period it was known as Investors Group. It joined forces with Mackenzie Financial in April 2001.
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More on the acquisition can be found HERE

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