Products October 13, 2014

MassMutual Reintroduces Small Employer 401(k) Solution

October 13, 2014 (PLANSPONSOR.com) – MassMutual Retirement Services is targeting employers with less than $15 million in retirement plan assets with the MassMutual Aviator 401(k) solution.
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MassMutual Aviator is designed to offer small plans ease of administration; reduction of fees as assets increase; educational tools and support to help employees save and prepare for retirement; and an expanded selection of highly rated investment options.

Bill Silvanic, senior vice president for retirement products, says the firm is focused on making it easier for small businesses to offer effective retirement plans—including employers with fewer than 100 full-time employees.

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MassMutual says the small business market offers tremendous opportunity for retirement plan service providers. The U.S. General Accountability Office estimated in 2013 that only 14% of employers with fewer than 100 employees sponsored a retirement savings plan. At the same time, the U.S. Census Bureau reports that up to 35% of the U.S. workforce is employed by small businesses.

Initially available through The Hartford’s Retirement Service Group before it was purchased by MassMutual in 2013, Aviator is being reintroduced with several enhancements, including a new line up of investment options and money managers. Aviator’s nonproprietary platform of investment options includes some strategies not available from any other recordkeepers, according to Silvanic. 

The investment choices include the MassMutual’s RetireSMART Funds, Premier Funds, and Select Funds, as well as a variety of stable value options and an expanded lineup of alternative investments. In addition, Aviator includes several features designed to help small businesses provide their employees with a comprehensive retirement savings and preparation program. These include a co-fiduciary and investment selection service offered through Mesirow Financial; the MassMutual Lifetime Income investment option, which allows plan participants to turn their retirement savings into retirement income by purchasing units of monthly income to cover their basic living expenses; and risk-based asset allocation.

Aviator also includes access to the RetireSMART retirement planning tools, including a website with a wide array of savings accumulation and income modeling tools for participants.

More information is available at www.massmutual.com.

Products October 13, 2014

Janus Capital Group to Acquire ETF Specialist

October 13, 2014 (PLANSPONSOR.com) – Janus Capital Group Inc. has agreed to acquire VS Holdings Inc., the parent company of institutionally-focused exchange-traded fund (ETF) provider VelocityShares LLC.
Reported by

VelocityShares, launched in 2009, specializes in funds that aim to deliver sophisticated volatility management. The transaction with Janus includes an initial upfront cash consideration of $30 million and is expected to close in the fourth quarter of 2014. Closing of the transaction still requires regulatory approval, according to the firms.

Richard Weil, chief executive officer of Janus Capital Group, says the acquisition is meant to position Janus for growth within the rules-based and active ETF universe. The firm hopes to enhance its ability to work with financial advisers and institutions focused on these instruments, according to Weil. Nick Cherney, co-founder and chief investment officer of VelocityShares, adds that Janus’ distribution network and product development staff will work to create additional opportunities to deliver ETFs to institutional clients.

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VelocityShares is managed by Cherney, Richard Hoge and Steve Quinn. VelocityShares’ initial growth was driven by the development of exchange-traded notes (ETNs) in the volatility and commodity space. The company also provides tactical trading products serving short-term investors and traders. These products will continue to be distributed by the VelocityShares team through its existing distribution channels, according to the firm.

VelocityShares launched a second business around “intelligent ETFs” for diversified long-term investment portfolios, currently focused on volatility hedged equities and equal risk weighted solutions. VelocityShares is headquartered in Darien, Connecticut, and employs 11 professionals. As of September 30, 2014, it has raised $2 billion in assets.

More information is available at www.velocitysharesETFs.com.

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