Data & Research August 18, 2009

MassMutual Sees Participants Return to Equities

The largest proportion of participant assets in plans administered by MassMutual's Retirement Services Division is in equities (38.7%) versus stable value options (31.7%) during the second quarter of 2009.

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A MassMutual news release said the data represents a reversal from the first quarter, during which 36.3% of assets were in stable value compared to 35.1% in the equity markets. Assets in asset allocation options also continued to increase gradually during the second quarter, now representing almost 22% of total assets.

In addition, MassMutual said its call center volume has normalized after two consecutive quarters of increased activity. While calls regarding loans have increased by approximately three percentage points to 11%, only 0.24% of participants actually initiated a loan.

The data also showed that older participants are saving, on average, three percentage points more than participants under age 30. More than 90% of participants made no changes to their savings rate in the second quarter 2009, while 2.1% of participants actually increased their deferral rate.

A lower percentage (19%) of participants made a change to their asset allocation in the second quarter, compared with 25% in the first quarter and 20% in the fourth quarter of 2008.

MassMutual also reported that its participant education Web site, RetireSmart Academy, has seen a 29% increase in activity, with most of the site’s visitors reviewing the accumulation-stage material rather than pre-retiree or retiree material.


Products August 18, 2009

Curian Capital Introduces Custom Wealth Platform

Curian Capital, LLC, announced the launch of the Curian Custom Wealth Platform, a unified managed household (UMH) solution offering investors an aggregated view of their Curian holdings.

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Using the new platform, advisers can integrate a household’s existing Custom Style Portfolios with new investment proposals to generate a Custom Wealth Plan that outlines the risk tolerance and asset allocation for multiple investment goals, according to Curian, a registered investment adviser that provides fee-based managed accounts to financial professionals.

In conjunction with the Custom Wealth Platform launch, Curian also expanded its menu of investment options to include a new Cash Management Program, available for clients with $250,000 or more invested with Curian. The program includes check-writing features and an FDIC-insured Money Market Deposit Account that insures up to $2.5 million in client deposits, the firm said.

Using the Custom Wealth Plan, investors first consider the various goals associated with each portion of their assets, such as saving for college or a home project, Curian explained. Then they work with their advisers to create a custom plan with separate goal-specific portfolios, each with its own risk tolerance and asset allocation.

The tool helps reinforce the planning process, the firm said. “Most clients have multiple investment goals with varying time horizons. However, the standard approach to investing has typically been to put all of the household’s assets into one portfolio and assign a single risk tolerance and asset allocation,” said Chris Rosato, senior vice president of strategic development for Curian Capital. “Curian’s Custom Wealth Platform takes a broader approach by allowing clients to invest according to the specific goal … The result is a purpose-based wealth plan that helps clients become comfortable with an overall strategy.”

Curian said the tool allows advisers to generate one portfolio review report that shows investment holdings, activity, and individual performance for all of a client’s Curian accounts.

For more information, RIAs, broker/dealers, and financial institutions can visit www.curian.com or contact the Curian Sales Desk at 877.847.4192.

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