Press Release
CIGNA Adds New Funds for Retirement Plan Participants
Top-Performing Institutional Managers Expand, Enhance Consumer Investment Options
HARTFORD, CT., June 17, 2002 -- In an investment environment increasingly characterized by volatile market conditions and ongoing economic uncertainty, the need for retirement-planning options that deliver top-quartile, style-consistent performance is greater than ever.
Keenly aware of the current level of consumer apprehension -- and firmly committed to always providing investment options that offer best-in-class results and clear style mandates -- CIGNA Retirement & Investment Services announced today that it has added two premier institutional investment funds to its portfolio of retirement-planning offerings.
The new funds continue to enhance the breadth and depth of CIGNA's investment options and underscore the organization's resolve to deliver top performance across a full range of asset classes and investment styles as part of a complete retirement solution for employers and their employees.
The two new subadvisors listed below, each with a long track record of superior, first-quartile performance, bring to 29 the number of institutional investment funds in CIGNA Retirement & Investment Services' fund family.
Investment Subadvisor Fund Mandate / Style
-- Barrow Hanley Large Cap Value
-- Granahan Investment Management Small Cap Growth
"In today's market environment, consumers want assurances that the investment choices in their 401k plans deliver best-in-class, style-consistent results," said Arnov Jajoo, vice president of product management at CIGNA Retirement & Investment Services.
"Our approach addresses these concerns by providing consumers with a comprehensive suite of investment options that are carefully selected and monitored to ensure top performance and discriminating choice across all fund mandates," he added.
According to Jajoo, each manager in CIGNA's matrix undergoes a rigorous, multi-step quantitative and qualitative analysis that evaluates potential candidates based on nominal and risk-adjusted returns; downside risk; active management expertise; and the overall capabilities of the investment management firm. As a result, nearly 50 percent of CIGNA's retirement plan investment offerings are top-quartile performers, compared with an industry average of less than 20 percent.
Moreover, CIGNA's due diligence program doesn't end when a subadvisor becomes part of the CIGNA Retirement & Investment Services fund family. Following selection, the funds are continuously monitored to ensure that each continues to deliver solid performance relative to peers. Clients can use this information to replace managers with poor performance, and in some cases poor-performing managers are replaced without the need of any client action. The outcome of CIGNA's due diligence is that more than 50 percent of CIGNA's institutional fund offerings carry Morningstar ratings of four or five stars, an impressive record by any standard.
"We reject the idea of choice for the sake of choice, and we avoid portfolios that are currently in favor, but may not produce competitive long-term results. As a result, we offer true investment integrity, a matrix of options that allows all investors, regardless of their sophistication or desired level of involvement, to easily understand and execute asset allocation decisions that support individual investment objectives, risk tolerance and life-stage needs," said Jajoo.
"With our multi-manager matrix, we're offering best-in-class retail and institutional investment options that provide the investment content, choice and integrity demanded by today's employers and employees. Together with our comprehensive advisory services, administration expertise, and education and communication programs, the value inherent in our investment approach allows us to deliver a complete retirement solution customized to the needs of plan sponsors and tailored to the needs of plan participants," he added.
CIGNA Retirement & Investment Services, a division of CIGNA Corporation (NYSE: CI), is one of the nation's leading asset management and retirement services firms. The organization offers defined benefit, defined contribution and non-qualified plans, either on a stand-alone basis or as part of a complete retirement solution customized to the needs of plan sponsors and tailored to the needs of plan participants. With global invested assets of more than $84 billion, CIGNA Retirement & Investment Services provides retirement products to approximately 3,200 plan sponsors serving some 1.5 million plan participants through various subsidiaries of CIGNA Corporation, including Connecticut General Life Insurance Company. Security products are offered through CIGNA Financial Services, Inc. Member NASD/SIPC. Banking products are offered by CIGNA Bank & Trust Company, FSB.
CIGNA Corporation, headquartered in Philadelphia, and its subsidiaries constitute one of the largest publicly owned employee benefits organizations in the United States. Its subsidiaries are major providers of employee benefits offered through the workplace, including health care products and services; group life, accident and disability insurance; retirement products and services; and investment management. As of December 31, 2001, CIGNA Corporation had consolidated assets of $91.6 billion and shareholders' equity of $5.1 billion. Full-year 2001 revenues totaled $19.1 billion. Web site: http://www.cigna.com.
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