The folks at a 173-year-old insurer's subadvised fund firm are expanding their subadvisor roster and entering the muni bond space.

Wale Adedokun MassMutual Investments Head of Manager Research

On Monday, Doug Steele, head of product management at Springfield, Massachusetts-based MassMutual Investments [profile], and Andrew Clinton, CEO and chief investment officer of Stamford, Connecticut-based Clinton Investment Management, LLC (CIM), unveiled the launch of the MassMutual Clinton Limited Term Municipal Fund, the MassMutual Clinton Municipal Credit Opportunities Fund, and the MassMutual Clinton Municipal Fund. All three new mutual funds are series of MassMutual Advantage Funds.

"These are the first funds that we are introducing in the municipal category, with a new-to-MassMutual subadviser," Steele states.

The funds' inception date was last Thursday, February 1, and they have $50 million each in AUM. The MassMutual team notes that CIM is the first new subadvisor to the fund family since Wale Adedokun joined two years ago as head of manager research. MassMutual now teams with 25 subadvisors to power 113 funds with a combined AUM of $45.4 billion, a company spokesperson confirms.

The MassMutual Clinton Municipal Fund comes in three flavors: I shares (MMZVX), with an expense ratio of 41 basis points; Y shares (MMZWX), with an expense ratio of 51bps; and A shares (MMZUX), with up to 250bps in upfront load, up to 100bps in deferred load, and an expense ratio of 76bps. All of those expense ratios bake in a 41bps expense reimbursement.

The MassMutual Clinton Municipal Credit Opportunities Fund also comes in three flavors: I shares (MMJBX), with a 54bps expense ratio; Y shares (MMJCX), with a 64bps expense ratio; and A shares (MMJAX), with up to 250bps in upfront load, up to 100bps in deferred load, and an 89bps expense ratio. All of those expense ratios bake in a 41bps expense reimbursement.

And the MassMutual Clinton Limited Team Municipal Fund also comes in three flavors: I shares (MMZPX), with a 29bps expense ratio; Y shares (MMZQX), with a 39bps expense ratio; and A shares (MMJDX), with up to 250bps in upfront load, up to 100bps in deferred load, and a 64bps expense ratio. All of those expense ratios bake in a 42bps expense reimbursement.

The three new funds' expense reimbursements are promised through January 31, 2025.

MML Investment Advisors, LLC (MML Advisers) serves as administrator, investment advisor, and shareholder servicing agent to the new funds. CIM serves as subadvisor. And the PM team includes: Mark Steffen, director and portfolio manager at CIM; and Andrew Clinton himself.

Steele describes the launch of the three CIM-powered muni bond funds as "an important milestone" that reflects "continued consistency" in MassMutual Investments' efforts in the wealth channel.

"We have confidence in Clinton Investment Management and its team's exceptional track record and conviction to delivering strong returns within this category," Steele states.

Andrew Clinton notes that CIM's MassMutual partnership comes after a MassMutual municipal bond manager search that took nearly a year. He puts the deal in the context of CIM's consistent delivery of values and its rigorous "risk management culture."

The three new funds' other service providers include: SS&C's Alps Fund Services, Inc. as dividend disbursing agent and transfer agent; Deloitte & Touche LLP as independent accounting firm; Massachusetts Mutual Life Insurance Company (MassMutual); MML Distributors, LLC as distributor; Ropes & Gray LLP as counsel; and State Street Bank and Trust Company as custodian, securities lending agent, and sub-administrator. 

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