MassMutual will pay $31M for 401(k) lawsuit

Massachusetts Mutual Life Insurance Co. will pay nearly $31 million to settle a lawsuit claiming that it mismanaged its 401(k) plan, according to recently filed court documents ( Gordan v. Mass. Mutual Life Ins. Co. , D. Mass., No. 3:13-cv-30184, motion for preliminary settlement approval filed 6/15/16 ). The lawsuit, filed in 2013 by a proposed class of more than 14,000 plan participants, alleged that MassMutual and its top...

ETF Model Solutions^TM Recognized As Finalist For 2016 WealthManagement.com Awards

APPLETON, Wis, June 21, 2016 / PRNewswire/– ETF Model SolutionsTM has been honored as a finalist for the WealthManagement.com Industry Awards in the “Asset Manager-ETF Strategist” category for 2016. WealthManagement.com’s Awards Program recognizes firms that are contributing to advisor success in various categories.  By acknowledging outstanding achievement in the industry, the Awards seek to inspire innovation and leadership among industry participants, creating an environment that will enable the industry...

ETF Model Solutions^TM ETF Spotlight: Low Volatility ETFs

Recently, low volatility ETFs have become increasingly popular. The PowerShares S&P 500 Low Volatility Portfolio (SPLV, $41.19 – NYSEArca) invests in the top 100 S&P 500 stocks that have been least volatile for the trailing 12 months. SPLV seeks to alleviate downside risk and the opportunity to participate in rising markets. However, low volatility ETFs like SPLV aren’t just for risk-averse investors. Over the last 25+ years, low volatility...

More Collective Investment Trusts Being Added to DC Plans

There are now over 3,200 collective investment trusts (CITs) tracked in the Morningstar CIT database, collectively holding nearly $2 trillion according to a recent article that appeared on WealthManagement.com.  That’s up from $896 billion in 2008.  Callan Associates estimates that 71% of DC include at least one CIT in their plan up from 60% and 52% in 2014 and 2013, respectively Why are CITs becoming more popular?  Reasons included...

Of Baby Boomers, Gen X, Millennials and Gen Z

Interesting facts on America’s generational dynamics from recent WSJ blog: Generational Definitions: Greatest Generation (born before 1928) Silent Generation  (born between 1928-1945) Baby Boomers (born between 1946-1964) Generation X (born between (1965-1980) Millennials (born between 1981-1997) Generation Z ( those born after 1997) A few interesting facts on how our population is evolving: Millennials now outnumber baby boomers Generation Z is expected to surpass baby boomers and become the second largest...

DC Plans Slow to Adopt Liquid Alts…But Why?

A recent article on Wealth Management.com titled “Liquid Alts in DC Plans? Don’t Hold Your Breath” discusses the relatively slow adoption of Liquid Alts by defined contribution (DC) Plans relative to what Defined Benefit Plans (DB) have done. The arguments for liquid alts, as the article presents, include managing return and risk management, managing volatility, potentially greater diversification, and a strategy less sensitive to broader equity and fixed income...

Prateek Mehrotra discusses the Endowment Model of Investing with Institutional Real Estate Inc

Prateek Mehrotra, CIO of ETF Model SolutionsTM,and our affiliate, Endowment Wealth ManagementTM, was interviewed this week by Institutional Real Estate Inc.  In the discussion, Prateek talks about the history of the Endowment Model and how the Endowment IndexTM was constructed.  Listen to the podcast. The podcast is for information purposes only and should not be considered personalized investment advice. Investments involve risk of loss and may fluctuate in value.  You should...

Skill Sets for Students Seeking Careers as a Financial Adviser

College graduates looking for a career in financial planning or for an investment adviser would do well to focus on taking courses and building a skill set that extends beyond investments or analytical skills.  Certainly a passion for investments and the financial markets is something just about everyone that enters this business possesses.  But that’s not all that’s required.  There are many other functional areas advisers need to possess...

ETF Model Solutions^TM‘ CIO Featured in Trusted Insight Magazine

Prateek Mehrotra, MBA, CFA®, CAIA®, Chief Investment Officer of ETF Model SolutionsTM, and its affiliate, Endowment Wealth ManagementTM, is featured in an exclusive interview in the most recent issue of Trusted Insight Magazine. In the article, Prateek discusses his career path, along with the vision that lead to his co-founding of the two firms’ of which he serves as Chief Investment Officer, serving clients through a multi-family service model,...

Mutual Fund Hits Investors With Huge Tax Bill

A change in the manager and a fund’s strategy may create a huge distribution to holders of the FPA Perennial Fund managed by FPA advisors, according to a story in the Wall Street Journal today.  Because the fund has changed managers and its strategy, many of the underlying holdings were liquidated to transform the fund to its new holdings.  When mutual funds sell shares of underlying securities, the short and...