The Markets January 8, 2008

New Index Represents Short Position of S&P 500

Standard&Poor’s has launched the S&P 500 Inverse Index, designed to provide investors with the inverse performance of the S&P 500.
Reported by

S&P explained that when investors hold a short position in a security they must pay dividends and interest for borrowed stock. The return of the S&P 500 Index has an inverse relationship with the total return of the S&P 500, which includes both dividends and price movements.

The costs of borrowing the securities are not included in the index calculation, but there is an adjustment to reflect the interest earned on both the initial investment and the proceeds from selling short the securities in the S&P 500. The assumptions used reflect normal industry practice, S&P said.

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“The S&P 500 Inverse Index is the first in what will be a series of leveraged and inverse indices to be launched by Standard & Poor’s across multiple regions and asset classes,” said Srikant Dash, Head of Global Research and Design at Standard & Poor’s, in a company announcement. “With today’s launch, market participants will finally be able to measure the performance of long and short positions in the U.S. equities market as determined by the S&P 500.”

More information about the S&P 500 Inverse Index is available at www.standardandpoors.com/indices under “Equity Indices’ and then “S&P U.S. Indices.’

Deals & People January 7, 2008

MassMutual Appoints New Head of Retirement Services

Executive Vice President Elaine Sarsynski, currently Chairman, President and CEO of MassMutual International LLC, will assume additional responsibilities as head of the Retirement Services Division.
Reported by
Sarsynski’s new appointment comes as Executive Vice President Fred Castellani, Retirement Services, has announced he will retire at the end of February. Castellani told PLANADVISER.com the firm is looking for ways he can remain involved with the fund boards on which he currently serves.
Sarsynski noted Castellani and his team have set objectives for 2008, and they will be meeting in next few days for her to get familiar with those objectives. “We will be travelling to MassMutual’s various field locations and meeting with key advisors who have helped refuel [the firm’s] growth engines,” Castellani said. A continued focus will be participant education, and Castellani said the business will continue to take the lead on fee disclosure. According to Castellani, plan sponsors are really asking for understanding about what their expenses are and a rationalization of value to expenses.
Sarsynski told PLANADVISER.com she grew up in the retirement services industry and particularly has background in investments, the liability side of balance sheets, and building products. She added that her municipal background was extremely helpful in dealing with union or Taft Hartley relationships.
Sarsynski has extensive experience effectively managing large organizations in both the corporate and municipal sectors, leading the Corporate Finance Department, Real Estate Investment, and Mortgage Finance operations for Aetna Life and Casualty, and then serving as Chief Executive Officer for Suffield Township in Suffield, Connecticut, according to the company announcement.
Sarsynski also told PLANADVISER.com her experience with the international business allows her to prepare for the U.S. business since the worker demographics in other countries like Japan are about five years ahead of the U.S. and she has seen the emergence of products and services for those demographics. She will continue in her capacity as Chairman, President and CEO of MassMutual International LLC.
Sarsynski joined MassMutual in 2005 as senior vice president and chief administrative officer.
Prior to joining MassMutual, she was managing director of Babson Capital Management LLC, a MassMutual subsidiary, serving as portfolio management group head, the announcement said.
“We do expect a very smooth transition,’ Sarsynski commented. “We have been working together for three years, and I respect Fred’s knowledge and will be calling on him for advice.’

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