Move will leverage scale benefits of MassMutual Investments’ distribution and administrative capabilities
Springfield, Mass. and Charlotte, NC, May 3, 2021 – Massachusetts Mutual Life Insurance Company (MassMutual) and Barings, a leading global financial services firm and subsidiary of MassMutual, plan to consolidate Barings’ mutual funds with the MassMutual Funds1 under the MassMutual Investments2 brand, pending necessary approvals.
The centralization of mutual funds onto MassMutual Investments’ platform will leverage MassMutual’s scaled fund business for improved operational efficiencies that benefit investors and distribution partners and position the MassMutual Funds complex for continued growth. At the same time, it will also enable Barings to focus on continuing to deliver performance and client service excellence in its asset management business.
“This combination illustrates the benefits of collaboration across our investment capabilities, which ultimately benefits fund investors,” explained Mike Fanning, head of MassMutual U.S. “The proposed transaction also aligns with MassMutual’s strategic focus on reaching more people with our full suite of protection and accumulation products.”
Pending shareholder approval, the proposed transaction will add approximately $1.7 billion3 in Barings Funds to the MassMutual Funds, which will cumulatively represent approximately $69 billion in total assets across 115 funds. Barings will act as a subadviser for the consolidated funds, building on the $6.6 billion3 they currently subadvise for the MassMutual Funds. Additionally, Barings will continue to offer institutional products and build its commitment to the wealth management channel through its innovative alternative strategies group, while MassMutual will leverage its scale presence in mutual fund offerings through defined contribution and wealth management channels.
“Barings remains committed to the U.S. wealth market and this consolidation gives us the opportunity to continue to provide our asset management capabilities in this channel while pivoting our distribution efforts to focus on bringing our alternative products to wealth investors,” said Mike Freno, Chairman, CEO and President of Barings. “It’s a win all around for Barings, MassMutual and most importantly our clients.”
The transition will ultimately result in two fund mergers, four new stand-alone funds and one fund closure. The transaction is expected to close in the fourth quarter of 2021, pending shareholder approvals and Barings and MassMutual will collaborate for a seamless transition.