Please be advised that we will begin implementing changes to the WealthBuilder Strategies the week of September 21, 2015. The changes are summarized below. Keep in mind that the changes will be implemented on the strategy level. Actual trades might vary in each account, depending on the account size and cash flows.
- Tactical Allocation Changes
The Asset Allocation Committee recommended a reduction in Equities and Growth Alternatives, and an increase in Cash and U.S. Fixed Income. The Committee’s view is that the lack of impetus to global growth and the pending first rate increase in nearly a decade could continue to spark volatility in the near term. As a result, the Committee has recommended a reduction in risk assets. Volatility may also create attractive opportunities, and the increased cash position could be deployed to capitalize on those opportunities. Within fixed income, we will maintain a slightly lower duration than the benchmark as the rate normalization process is expected to be gradual.
The changes are summarized below and will be made across the different investment objectives, if applicable.
o Reduce Equities & Growth Alternatives and increase Fixed Income & Cash
o Changes within Equities:
- Reduce U. S. Equity
- Reduce International Equity
- Reduce Growth Alternatives
o Changes within Fixed Income:
- Increase Cash
- Increase U.S. Fixed Income
- Fund Changes
o Replace Morgan Stanley Mid Cap Growth Fund (MMCGX) with MassMutual Select Mid Cap Growth Fund (MEFZX)
o Remove PIMCO Commodity Real Return Strategy (PCRIX)