Products November 29, 2010

OneAmerica Launches Trust Offering

The Companies of OneAmerica have launched Premier Trust for plans with assets of $5 million and above.
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A news release said the new offering is being provided through McCready and Keene, Inc., the actuarial and consulting firm acquired by AUL parent OneAmerica in July (see “OneAmerica to Acquire Plan Actuary”).  It will be marketed by the sales force of American United Life Insurance Company (AUL).

According to the company, the offering features fee transparency, flexibility and a number of other benefits to financial advisers and sponsors.

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The program uses open architecture to provide access to more mutual funds, or plan sponsors can choose from a pre-screened line-up of 200 investment options from 30 companies under OptionOne. In addition, the program offers a customized approach based on an open investment platform and quarterly due diligence reporting, the news release said.

The program will use fee-based advisers to distribute Premier Trust initially. Registered representatives affiliated with broker/dealers will have access to the program in the first quarter of 2011.

Products November 29, 2010

Putnam Cuts Expense Ratios on Absolute Return Funds

Putnam Investments announced that the total expense ratios across its four Absolute Return Funds have been reduced by as much as 54%.
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The Absolute Return Funds are included in the Putnam RetirementReady Funds, the firm’s suite of 10 target-date/lifecycle retirement funds. Therefore, the expenses for those funds also have been reduced, by as much as 24%.  

According to the announcement, the new total expense caps, which limit recurring costs such as management and service fees, were implemented retroactive to November 1, 2010, to align with the beginning of the new fiscal year of the Absolute Return Funds.  

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The new total expense caps are: 

  • Absolute Return 100 Fund – 0.40% of fund average net assets; 
  • Absolute Return 300 Fund – 0.60%; 
  • Absolute Return 500 Fund – 0.90%; and 
  • Absolute Return 700 Fund – 1.10%. 

The total expense caps represent a contractual obligation of Putnam to limit the Funds’ total expenses through at least February 28, 2012.  

The company said nearly 9,000 financial advisers from more than 500 broker/dealers use the Absolute Return Funds in portfolio construction. A recent Putnam national survey of 256 financial advisers asked them about their views on absolute return strategies; Putnam found a growing understanding and use of these strategies.   

Three in five advisers surveyed (59%) were likely or certain to recommend them to their clients. Fifty-nine percent also said that a major strength of absolute return funds was their ability to help minimize portfolio volatility, and 37% saw them as an effective hedge against inflation.  

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