According to a news release, the move will enable MassMutual retirement plans and accounts to provide access to a wider array of sub-advised investment options. “The change emphasizes MassMutual’s belief in the value added by the sub-advised structure, which enables MassMutual to closely monitor its selected managers’ portfolio performance and management activities, providing an added layer of supervision and due diligence designed to benefit the interests of its clients,” the company said in the announcement.
In the MassMutual Funds, MassMutual serves as the overall investment advisor, while specialized investment companies with expertise in specific investing disciplines handle the day-to-day portfolio management of each sub-advised investment option. These options are available to the company’s retirement plan clients as well as investors in MassMutual IRAs.
To accomplish the transition MassMutual will consolidate several like funds and will convert a number of retail funds to the sub-advised structure, the announcement said. The investment options’ styles, strategies, objectives and managers will remain the same. These changes will not increase the expense ratio of any investment option.
Under the new alignment, the MassMutual Premier Funds family will be sub-advised by MassMutual affiliated investment companies, currently Babson Capital Management LLC and OppenheimerFunds, Inc. The MassMutual Select Funds family will be sub-advised by unaffiliated institutional, retail and boutique investment companies from throughout the industry, according to the news release.