Products November 13, 2008

MassMutual Adds Adviser-Requested Taft-Hartley Investment Options

MassMutual said it added seven investment options to its platform for Taft-Hartley plans.
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According to a news release, the additions were requested by retirement advisers in the Taft-Hartley market. The company said the seven new offerings, which became available November 1, are a part of its Smart Architecture Investment Program and qualify for its fiduciary certification and warranty program.

The new investment options are:

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  • Manning & Napier Pro Blend Conservative Term Series
  • Manning & Napier Pro Blend Extended Term Series
  • Manning & Napier Pro Blend Maximum Term Series
  • Manning & Napier Pro Blend Moderate Term Series
  • Manning & Napier World Opportunities
  • Calvert Large Cap Growth Fund
  • Winslow Green Growth Fund.

The company also announced it has named a new head of its Taft-Hartley practice and two new Taft-Hartley relationship managers (see MassMutual Beefs Up Taft-Hartley Team).

The Markets November 13, 2008

Indexes Outperform Active Managers over Long Term

Standard&Poor’s Indices Versus Active Funds Scorecard (SPIVA) indicates that active fund managers underperform benchmarks over long periods of time.
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According to an S&P Index Services’ press release, the SPIVA Scorecard shows that for the five-year period through June 30, the S&P 500 outperformed 68.6% of actively managed large-cap funds, the S&P MidCap 400 outperformed 75.9% of actively managed mid-cap funds, and the S&P SmallCap 600 outperformed 77.8% of actively managed small-cap funds.

Results were similar among global equity funds, according to the press release. Five year results show the S&P Global 1200 outperforming 70.1% of global equity funds, the S&P International 700 outperforming 86.5% of international equity funds, and S&P IFCI Composite outperforming 73.9% of emerging market funds.

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Among fixed income funds, more than three quarters of actively managed domestic bond funds were outperformed by benchmarks in all categories over a five year horizon. Emerging market bond funds was the only category in which a majority of active managers beat the benchmark.

“The percentage of active managers underperforming benchmarks over five years is higher for fixed income funds compared to equity funds,” said Rosanne Pane, director at Standard & Poor’s Index Services, in the press release.

Standard & Poor’s Index Services reintroduced an enhanced version of its SPIVA, which it says now offers broader asset class coverage and mutual fund data derived from CRSP Survivor-Bias-Free U.S. Mutual Fund Database.

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