Massachusetts Mutual Life Insurance is putting pressure on its Babson Capital Management subsidiary to sell its wealth management unit, bundling its large-cap growth mutual funds into the package, the Boston Business Journal reports.
A company spokeswoman confirmed that the company is going to drop certain businesses "to focus on its core competencies: absolute return, alternative strategies, structured products and financing." Babson supplies these products primarily to institutional clients, including hedge funds.
As part of the move, the firm will merge its large-cap value funds, which are sold under the Tamarack Funds banner, into another MassMutual subsidiary, OppenheimerFunds, and merge its small-cap funds into Oppenheimer's institutional division.
Sources tell the Journal that the changes will likely take place next month, although a buyer has not yet been identified.