Investing July 20, 2016

Index Mutual Funds and ETFs See Strong Demand

On the fixed-income side, Strategic Insight finds active bond funds netted $6.1 billion of new investments during June 2016, “mainly on demand for muni-bond offerings.”

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Monthly long-term investment fund flow data from Strategic Insight, an Asset International company, shows net new investments to long-term mutual funds and exchange-traded funds (ETFs) totaled $17 billion in June.

Index mutual funds and ETFs collected a net $45.8 billion during the month, SI finds, while net outflows from long-term active funds totaled $28.8 billion. Actively managed U.S. and international equity redeemed $24.3 billion and $10.7 billion, respectively, in June.

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According to SI, market segments with net inflows for the month among active equity, hybrid, and alternative funds included international managed futures (up $618 million), U.S. equity income-mixed ($434 million), and U.S. equity balanced ($381 million). At the same time, passive equity mutual funds netted $18.6 billion and equity ETFs collected $13 billion, led by $8.3 billion of investment to U.S. equity.

On the fixed-income side, SI finds active bond funds netted $6.1 billion of new investments during the month, “mainly on demand for muni-bond offerings.” Passive fixed-income products collected a net $14.2 billion in June. Among active taxable strategies exclusively, demand prevailed for corporate high quality ($3.0 billion) and corporate intermediate maturity ($2.3 billion) offerings.

Monthly net redemptions from Money-Market funds totaled $18.4 billion during the month, SI says.

Additional findings are at www.sionline.com. 

Products July 20, 2016

Plan Sponsor Support Focus of CUNA Mutual ClearDirection Program

Known as the ClearDirection Plan Management program, a new client service approach from CUNA Mutual Retirement Solutions focuses on simplifying key administrative processes.

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A new client service approach being rolled out by CUNA Mutual Retirement Solutions features experienced relationship managers delivering support, thought leadership and strategic planning.

“We’ve worked with various industry experts such as Ann Schleck and Company, surveyed our customers and reviewed industry studies [to devise the new service model],” explains Jennifer Norr, vice president of marketing and strategy for CUNA Mutual Retirement Solutions. “Our new service model is designed to provide strategic insights for advisers and plan sponsors.”

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Norr calls the solution “pretty unique for our target market of employers with 500 employees or less.”

The newly formed client relationship management team is led by Denise Penn, strategic relationship manager for north central states. She has served the retirement plan industry since 1997, the firm adds, working in internal sales, investment account services, business solutions, and strategic relationship management for DCIOs.

Other team members include Larisa Knafelc, strategic relationship manager for the western region; Thomas Mitchell, strategic retirement plan manager for the northeast and mid-Atlantic regions; Edward Gaffney, serving the south central region from Kansas and Missouri south through Texas and Louisiana; Kevin Gaston, strategic relationship manager for the Southeast and Florida; and Gerard Pernot, strategic relationship manager for key accounts.

The team will be deployed to offer expertise and support directly to clients, CUNA explains. “We’ve made a significant investment in the tools and resources available to help simplify plan management and improve outcomes for plan participants,” Norr says.

More information is available at www.cunamutualrs.com. 

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