MassMutual Unwraps New Funds

October 28, 2003 (PLANSPONSOR.com) - MassMutual's Institutional Funds series is set to get a bit bigger with the introduction later this year of eight new mutual funds.

According to a news release, the company will unveil two bond funds, a strategic balanced fund and five retirement funds beginning December 31, Dow Jones reported.

The company said in a US Securities and Exchange Commission filing that the new offerings would include the:

  • MassMutual Inflation-Protected Bond Fund
  • MassMutual Total Return Bond Fund
  • MassMutual Strategic Balanced Fund
  • MassMutual Destination Retirement Income Fund
  • MassMutual Destination Retirement 2010 Fund
  • MassMutual Destination Retirement 2020 Fund
  • MassMutual Destination Retirement 2030 Fund
  • MassMutual Destination Retirement 2040 Fund.

Fund Details

The inflation-protected bond fund seeks to achieve a high total rate of real return annually while maintaining prudent investment risk and preserving capital. The fund is to invest at least 80% of its assets in inflation-indexed bonds of varying maturities issued by US and non-US governments, their agencies or government-sponsored enterprises, and corporations, the filing said.

The total return bond fund seeks maximum total return consistent with prudent investment risk and the preservation of capital, according to the filing. It is to invest at least 80% of its assets in a diversified portfolio of fixed-income instruments of varying maturities. The average portfolio duration will normally vary from three to six years, the filing said.

The strategic balanced fund aims for long-term capital growth consistent with capital preservation and balanced by current income, according to the filing. The fund is to take a multimanaged approach in which two subadvisers manage separate portions – an equity component and a fixed-income component – of the fund’s assets. According to the filing, the fund’s target allocation is 60% equities and 40% fixed income, but it may fluctuate based on cash-flow activity or market performance.

The MassMutual Destination Retirement Income Fund looks for high current income and capital appreciation as a secondary objective by investing in a combination of MassMutual equity, fixed-income and money market funds using an asset allocation strategy designed for investors already in retirement, the filing said.

The remaining destination retirement funds each seek to achieve a high total rate of return annually that is consistent with prudent investment risk and capital preservation, according to the filing. Each of the four funds is to invest in a combination of MassMutual equity, fixed-income and money market funds using an asset allocation strategy designed for investors expecting to retire either around 2010, 2020, 2030 or 2040, the filing said.

Each of the eight funds will offer no-load Class S, Class Y, Class L, Class A and Class N shares that have a maximum back-end load fee of 1%. Class A shares are to include a distribution fee of 0.25%, while Class N shares are to have a 0.5% distribution fee, the filing said.

The management fee for the inflation-protected bond fund is 0.48%, while the total return bond fund is to have a fee of 0.5%. The strategic balanced fund has a management fee of 0.6%, while each of the five retirement funds carries a management fee of 0.05%, according to the filing.

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