MassMutual Provides for Customization of Asset Allocation Funds

August 6, 2008 ( - MassMutual's Retirement Services Division has introduced a tool allowing employers and advisers to make plan-specific investment options available to participants that are based on a target retirement date, investment objective, or a combination of the two, using a plan's existing investment lineup.

With CustomChoice Strategies, plans can offer customized investments using asset allocation models developed by Morningstar Associates, LLC and delivered through a Web-based interface, according to a press release. Sponsors can select funds from the plan’s existing investment lineup to meet Morningstar Associates’ target asset allocations, or they can adjust those asset allocation targets within preset ranges to further align them with the demographics of the plan’s participant base.

According to the announcement:

  • Strategies reflect plan objectives and participant demographics;
  • CustomChoice Strategies can be based on target retirement dates in five- or 10-year increments, or three, four or five lifestyle categories, or a blend of target retirement dates in 10-year increments, each with three lifestyle categories;
  • Using funds in the plan’s existing investment lineup to create the customized strategies can simplify fiduciary oversight;
  • Customized model strategies are listed among the investment options available to participants in enrollment materials and on the Web site; and
  • Morningstar will review the asset allocation targets annually, and the sponsor or adviser will be advised to review and re-authorize the custom strategies.

“MassMutual’s CustomChoice Strategies also creates an opportunity for retirement plan advisers to provide additional value to plan sponsors and participants. If an advisor is assuming an investment fiduciary role, CustomChoice Strategies offers an easy-to-use solution that makes it easy to develop and implement unique investment strategies. Whether the plan uses target retirement date, risk-based models or a combination of the two, CustomChoice Strategies offers a custom solution that has many advantages over off-the-shelf alternatives,” said Paul Steven Henry, vice president of product development for MassMutual’s Retirement Services Division, in the announcement.

Retirement plan advisers interested in additional information or a demonstration of CustomChoice Strategies can call MassMutual at 1-888-626-4911, or visit .