Orozco will work with brokers,
financial advisers, consultants, wirehouses and third-party administrators to
offer Great-West 401(k) plans and services to businesses in western Wisconsin,
Rockford, Illinois , the Quad Cities (Bettendorf and Davenport, Iowa, and Rock
Island and Moline, Illinois ) and upper Michigan. He is based in Madison,
Wisconsin, and reports to Scott Barnett, Midwest Region’s vice president.
Before joining Great-West, Orozco
spent seven years with John Hancock, most recently as regional vice president.
Previously, Orozco held a variety of sales positions with Wells Fargo Funds
Distributor LLC.
Orozco holds a bachelor’s degree in
finance and investment banking from the University of Wisconsin-Madison. He
holds NASD Series 7 and 63 licenses. He also holds insurance licenses in
Wisconsin.
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Institutions start using ETFs to achieve specific and
limited tactical goals such as a smooth transition of assets from an outgoing
manager to a replacement, but over time begin applying these funds to more
strategic ends.
The results of the study show that 57% of institutional ETF
users employ these products to achieve strategic allocation ranges—a share that
includes one-third of asset managers and nearly 60% of institutional funds
using ETFs. Those shares have grown since last year, when, among ETF users,
about 50% of institutional funds and one-quarter of asset managers said they
used the product to achieve strategic allocation
ranges.
Institutions are often first drawn to ETFs for help with two
basic functions: manager transitions and cash equitization/interim beta. Among
users of ETFs, 78% of asset managers and 44% of institutional funds use the
products for cash equitization/interim beta. Both of those percentages are up
from 2011. Another 61% of asset managers and 55% of institutional funds in this
group use ETFs in manager transitions.
This year’s Greenwich Associates study results suggest that,
once institutions integrate ETFs into their manager transition or cash
equitization processes, they begin seeing additional applications for the
products relatively quickly. For example, in 2011, 44% of institutional fund
managers that use ETFs employed them in their rebalancing processes. This year,
that share rose to more than half, while last year, approximately one-in-five
institutional users of exchange-traded funds used them for portfolio
completion. A year later, that share increased to 28% among asset managers and
to 42% among institutional funds.
(Cont...)
Reflecting the increasingly strategic role that ETFs are
taking in institutional portfolios, the average institutional holding period
for ETF investments expanded over the past year. In 2012, about half of
institutional funds using exchange-traded funds reported average holding
periods of one year or more, with 36% reporting average ETF holding periods in
excess of two years. Last year, only 36% of institutional funds reported
average ETF holding periods of a year or longer.
Though funds with less than $5 billion in assets under
management are most likely to hold ETFs for longer periods, 43% of the share of
asset funds above the $5 billion mark also report holding ETFs for a year or
more. Meanwhile, manager ETF users reporting holding periods of a year or
longer increased to one-third in 2012 from just 18% in 2011, and 22% of asset
managers this year report average ETF holding periods of two years or longer.
The annual study was conducted by Greenwich
Associates and sponsored by iShares. The results are based on interviews with
80 institutional investors, including corporate pensions, public pensions, and
foundations and endowments—all collectively referred to as “institutional
funds”—and large asset management firms.