Products March 24, 2008

Morningstar Announces Active ETFs in Managed Account

March 24, 2008 (PLANSPONSOR.com) - Morningstar Investment Services on Monday introduced a managed account offering made up of five actively managed portfolios using exchange traded funds (ETFs).
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According to a Morningstar news release, Managed ETF Portfolios are actively managed using a “core and explore” investment process, which combines “core” positions that provide exposure to broad asset classes in an efficient and low-cost manner with “explore” positions that seek to add value by taking advantage of opportunities in the markets. Selection of explore positions are based on a proprietary ETF-evaluation system developed by Morningstar Investment Services that combines macroeconomic and fundamental factors, the announcement said.

Among other factors, the ETF-evaluation system assesses the composition, structure, and liquidity of individual ETFs, and marries it to research on fundamental factors such as valuation and growth drivers of the underlying securities.

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The product is offered exclusively through financial advisers, Morningstar said.

“ETFs offer investors exposure to specific segments of the capital markets in a diversified, low cost, and tax efficient manner similar to index funds,” said William Harding, director of research for Morningstar Investment Services, in the announcement. “Our new Managed ETF Portfolios combine these positive attributes of ETFs with our objective research, analysis, and portfolio management expertise in actively managing these portfolios to ensure they are well positioned given their risk and return objectives.”

Morningstar said Ameritas Investment Corp. and Centaurus Financial, two independent broker-dealer firms, recently selected the new product for use by their investment adviser representatives. Ameritas has 600 adviser representatives and Centaurus has 500.

Benefits March 21, 2008

Psychologically Healthy Workplaces Good for Business

March 21, 2008 (PLANSPONSOR.com) - Winners of the American Psychological Association's 2008 Psychologically Healthy Workplace Award (PHWA) provide evidence that workplaces that invest in the well-being of employees enjoy benefits such as reduced employee stress, lower employee turnover, and enhanced organizational performance.
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An Association press release said psychologically healthy workplace practices fall into five categories: employee involvement; health and safety; employee growth and development; work-life balance; and employee recognition. Qualities that define a psychologically healthy workplace include: employee participation in decisionmaking, skills training and leadership development, flexible work arrangements, and programs promoting healthy lifestyle and behavior choices.

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The five winning organizations report an average turnover rate of just 11% – significantly less than the national average of 40% as reported by the U.S. Department of Labor’s Bureau of Labor Statistics, the release said. Surveys completed by the winning organizations show that only 21% of their employees reported experiencing chronic work stress compared to 34% nationally, and more than 80% of the winners’ employees reported being satisfied with their job, compared to only 66% nationally.

Winners also report cost savings and increased productivity from their workplace practices. Examples in the release included:

  • At Westminster Savings Credit Union, high employee satisfaction and low turnover means that two thirds of WSCU’s openings are filled internally, lowering administrative costs.
  • In 2007, Nike Tennessee increased productivity by 51%, while reducing injury rates by almost 30%.
  • At Cooperativa de Seguros Multiples, an insurance company in Puerto Rico, employee loyalty is high with a 15-year average length of service and a turnover rate of less than 2%.

The other two winners were Arkansas Educational Television Network and Porter Keadle Moore in Georgia. In addition to the PHWA winners, nine organizations received Best Practices Honors for an innovative program or policy that contributes to a psychologically healthy work environment.

Details on the Awards and Honors winners and their best practices are here .

More about the Awards program can be viewed at www.phwa.org .

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