Products December 16, 2009

Russell, Axioma to Launch Factor-Based Indexes

Index provider Russell Investments is teaming up with Axioma, Inc., a provider of tools for portfolio optimization and risk analysis, to create a series of factor-based indexes.

Reported by

According to the announcement, the Russell-Axioma Factor Indexes will measure stock performance in various market segments, and feature a broad range of products to track the common risk factors used in the Axioma Robust Risk Models. 

Using Russell’s index methodology as the foundation, Axioma will utilize its optimization expertise and suite of global Robust Risk Models with the goal of minimum factor tracking error, maximum targeted factor exposure, minimum turnover, and neutrality to all other characteristics. 

The Russell-Axioma Momentum Indexes—the first in the series—“track momentum returns closely while simultaneously exhibiting a number of desirable, practical features related to index implementation and non-momentum factor neutrality,” according to a press release.  The firms noted that the optimization methodology used to construct these indexes has been “tested extensively and validates the realized index characteristics and returns.”

Goldman Sachs is the initial client for the new Russell-Axioma Momentum Indexes.  

Initial products will include the optimized Russell-Axioma U.S. Large Cap Momentum Index, which will be based on the Russell 1000 Index. The initial launch also will include the Russell-Axioma U.S. Small Cap Momentum Index, based on the Russell 2000 Index, and the Russell-Axioma U.S. Momentum Index, based on the broad-market Russell 3000 Index.

Deals & People December 16, 2009

Putnam Hires Sipple to Reach Out to Wealth Management Firms

Putnam Investments hired Scott Sipple as head of Strategic Relationships, focused on communication with the asset management research platforms of major wealth management firms.

Reported by

The newly created position will report directly to William T. Connolly, head of Global Distribution for Putnam, the firm announced.

Sipple is the latest alumnus of Fidelity Investments to join the firm. He previously headed Fidelity’s Bank Trust business unit, focused on serving institutional bank clients.

Putnam said Sipple will a play a pivotal role in reaching out to wealth management partners by coordinating the resources in the firm’s product, investment, and relationship management areas. He will lead an investment-oriented team that will work directly with research teams at major wealth management firms.

“As wealth management firms increasingly embrace open architecture for clients and develop more transparent, proprietary research to support their advisers, we think it is important for Putnam to be able to supply these teams with a wide range of product information and insight on the firm,” Connolly said in a statement.

At Fidelity Investments, Sipple was previously responsible for the firm’s Investment Consulting Services, working with all distribution channels to provide proprietary investment and capital markets research to internal and external clients.

Prior to that, Sipple served as a managing director, head of Managed Accounts, Senior Portfolio Management & Analyst Relations for AllianceBernstein Investment Research & Management. Sipple also held senior positions at Portfolio Advisory Group, LLC, and Wedbush Morgan Securities earlier in his career.

Efforts  to Reach Advisers

The hiring of Sipple follows other recent hires to better focus on financial advisers. In October, Putnam announced two hires in its Global Distribution Team to reach out to registered investment advisers (RIAs) (see “Putnam To Focus More on RIAs”).

Putnam said it has been making strides to educate advisers about steps it is taking to improve its business under the leadership of Robert Reynolds (see “Fidelity Alum Reynolds to Lead Putnam Investments”). The firm said those steps include:



Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

«