Distribution chiefs at Calamos Investments
], Delaware Investments
] and TIAA-CREF
] just gained defined contribution investment-only access to a $57.2-billion book of retirement plan business. Last week retirement plans chief Sharon Ritchey
revealed the addition of 16 investment options to Hartford's retirement plan offerings. The provider, which boasted $57.2 billion in retirement plan assets as of March 31, 2012, now offers 294 funds through 80 fund managers.
The additions come even as the Hartford shops
its bundled retirement plan business.
The Calamos Global Equity Fund
, the Delaware Diversified Income Fund
and the Delaware Extended Duration Bond Fund
are now available to both corporate and nonprofit plan sponsors. The TIAA-CREF Bond Index Fund
, the TIAA-CREF Equity Index Fund
, the TIAA-CREF Large-Cap Growth Index Fund
and the TIAA-CREF Large-Cap Value Index Fund
are now available to Hartford's non-profit plan sponsors.
"When we look for investments, we look at people, process and performance," Rich Cady
, assistant vice president of product management at the Hartford, told MFWire.com
. "Calamos and Delaware came out as having good stories from a due diligence perspective. TIAA-CREF is a respected name in the nonprofit marketplace, and its brand name value gives us a leg up."
"Certainly Delaware's excited to expand our relationship with The Hartford," Jamie Fox
, vice president and strategic relationship manager for investment-only and defined contribution at Delaware, told MFWire.com
. "This is the first time that Delaware will be on the Hartford's core menu and is an expansion of the relationship we've had in the past."
, head of U.S. intermediary distribution at Calamos, said that the Calamos Global Equity Fund
fills Hartford's need for world funds, which reflects a general industry trend away from U.S. domestic equity assets. He said Hartford looked at several other international growth and U.S. growth funds offered by Calamos, and he expects to be able to add other products to Hartford's platforms in the future.
"We think that this is the first inning of our relationship with the Hartford," Behan said.
"As we continue to expand our third party distribution, we are pleased to bring our institutional approach to asset management and deep experience in retirement to bear as the Hartford grows their retirement platform," stated Tony Carmenate
, managing director of intermediary distribution at TIAA-CREF.
Investment managers already available on The Hartford's platform also added two new investment options, including the socially responsible Pimco Total Return II Fund
], for nonprofits and seven new options for corporate and nonprofit plans. The Pimco fund was added to fill a gap of bond offerings in tax exempt products, as well as a desire by non-profit plan sponsors for socially responsible funds, Campbell explained.
"Socially responsible funds resonate with the nonprofit market as options," he said. "That's something our customers have been asking for."
Company Press Release
The Hartford Introduces New Investment Managers And Funds For Retirement Savings Plans
New fund lineup bolsters investment choices for retirement plan sponsors and participants
Simsbury, Conn., May 8, 2012 – The Hartford is expanding its investment choices for retirement plan sponsors and participants by introducing three new investment managers and 16 new investment options to its defined contribution retirement program offerings.
“As more Americans approach or enter retirement, the focus on preparing for retirement and how best to achieve savings objectives continues to grow,” said Sharon Ritchey, executive vice president of The Hartford’s Retirement Plans Group. “Plan sponsors and their participants want more choices to invest their hard-earned dollars as they plan for their later years.”
Two new investment managers, Calamos Investments and Delaware Investments, have been added to retirement plans for both corporate and nonprofit sponsors. A third manager, TIAA-CREF, has been added for nonprofit sponsors, including schools, charities, government entities and others. In addition, 16 new investment options, available from the new investment managers and other managers already accessible through The Hartford’s retirement investment platform, have been added.
Corporate and nonprofit plans now have access to the Calamos Global Equity Fund, the Delaware Diversified Income Fund and the Delaware Extended Duration Bond Fund.
In the nonprofit sector, The Hartford now offers the TIAA-CREF Bond Index Fund, the TIAA-CREF Equity Index Fund, the TIAA-CREF Large-Cap Growth Index Fund and the TIAA-CREF Large-Cap Value Index Fund.
Nine additional new investment options are being provided by investment managers currently available on The Hartford’s platform. Two of those investment options, the PIMCO Total Return III Fund and the Invesco Real Estate Fund, were added to The Hartford’s lineup for nonprofits. The PIMCO Total Return II Fund, a socially responsible fund, complements the insurer’s existing lineup of socially responsible investments.
Seven new investment options are available to both corporate and nonprofit sponsors: the Eaton Vance Atlanta Capital SMID-Cap Fund; the Federated Clover Small Value Fund; the Hartford High Yield Fund; the Invesco Van Kampen American Franchise Fund; the Oppenheimer Equity Income Fund and the Oppenheimer International Diversified Fund; and the Prudential Jennison Natural Resources Fund.
The Hartford’s defined contribution retirement plans, which offer an open architecture platform for investment funds, now allows plan sponsors to choose from as many as 294 funds available through 80 fund managers. The Hartford had $57.2 billion in retirement plan assets under management in retirement plans as of March 31, 2012.
Total retirement assets in the United States were $17.9 trillion at the end of 2011, up from $11.6 trillion in 2000, according to the Investment Company Institute. The 2011 assets included $4.5 trillion in defined contribution plans, up from $2.9 trillion in 2000, the ICI reports.
About The Hartford
The Hartford Financial Services Group Inc. (NYSE: HIG) is a leading provider of insurance and wealth management services for millions of consumers and businesses worldwide. The Hartford is consistently recognized for its superior service, its sustainability efforts and as one of the world's most ethical companies. More information on the company and its financial performance is available at HYPERLINK "http://www.thehartford.com" www.thehartford.com. Join us on Facebook at HYPERLINK "http://www.facebook.com/TheHartford" www.facebook.com/TheHartford. Follow us on Twitter at HYPERLINK "http://www.twitter.com/TheHartford" www.twitter.com/TheHartford.
Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the mutual funds or The Hartford’s group variable annuity products and funding agreements, and their underlying funds. For fund and product prospectuses and/or a disclosure document containing this and other information, contact your financial professional or visit our website. Read them carefully.
Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in our Quarterly Reports on Form 10-Q, our 2011 Annual Report on Form 10-K and the other filings we make with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.
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