Products May 18, 2009

TPA P&A Adds ETFs

Buffalo, New York-based P&A Retirement Plan Services has announced a program that allows participants of defined contribution plans to buy and sell ETFs like mutual funds.
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According to a press release, P&A Retirement Plan Services, part of the Buffalo, NY based P&A Group, is an open-architecture defined contribution recordkeeper and Third-Party Administrator, providing services to employer sponsored retirement plans. The firm notes that, while “ETFs have long been attractive to fee-based financial advisors due to their low costs, diverse selection and their ability to trade like stocks but until now, they have been administratively difficult to utilize in retirement plans. “
P&A401(k), P&A403(b) and P&A457, working with Mid Atlantic Trust Company’s ETFxChange platform, now offer advisers the opportunity to access over 800 ETFs that the firm says “trade just like mutual funds,” and “…without the performance drag associated with other ETF offerings.” The firm says that advisers can now utilize any combination of ETFs and mutual funds seamlessly in the same plan, including the ability to create model portfolios.
“For plan sponsors and advisors who have been searching for a clean, easy to use ETF solution, this is the perfect answer. We are extremely excited to roll this out at a time when there is so much attention being paid to reducing plan level fees and expenses,” said Sean Zent, Vice President of Retirement Plan Sales.
In addition to its Buffalo, NY headquarters, P&A maintains sales offices in Atlanta, New York City and Los Angeles. More information is available at www.padmin.com.
Products May 18, 2009

Putnam Funds Access Full 'Spectrum'™ of Company Securities

Putnam Investments launched two new funds that collectively invest across the full spectrum of securities of leveraged companies.
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Putnam Capital Spectrum Fund (Class A: PVSAX) pursues total return by investing in the securities of leveraged companies, according to a press release. Management aims to select the most attractive securities anywhere within a company’s capital structure, including stocks, bonds, bank loans, and convertibles.

Putnam Equity Spectrum Fund (Class A: PYSAX) seeks capital appreciation through investments in the equity securities of leveraged companies, the announcement said. Using research and investment experience in this area, management seeks to uncover mispriced stocks of leveraged companies, creating the potential for these stocks to outperform broad market averages.

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The funds will be managed by veteran portfolio manager David Glancy, who joined Putnam earlier this year after two decades of specializing in industries of leveraged companies at Andover Capital and Fidelity Investments.

The leveraged company funds’ investment processes rely on fundamental research by analyzing corporate balance sheets and capital structures to identify the securities with the greatest total return potential. Types of leveraged companies the funds will seek include capital-intensive businesses; early-stage growth companies (rising stars); former investment-grade companies (fallen angels); and companies in special situations, such as restructurings, bankruptcies, or leveraged buyouts.

According to Putnam, for investors willing to assume the volatility and other risks of these investments, investing in leveraged companies can provide a level of diversification when added to a traditional equity or fixed-income portfolio.

In addition, both funds also have a fee structure in which the fee adjusts based on fund performance—aligning the interests of the fund manager with those of shareholders, according to the release.

 

More information is available at www.putnam.com/individual/spectrum-funds/.

 

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