Deals & People January 25, 2012

Putnam Grows Adviser-Focused Sales Team

Putnam Investments has added three to its adviser-focused defined contribution sales team, and says more hires are to come.
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Steven McKay has been named regional 401(k) sales director for New England and Upstate New York. Based in Boston, McKay joins Putnam after four years at Hartford Retirement Services, where he was most recently divisional vice president, northeast divisional sales manager.  McKay previously spent 15 years with MFS Retirement Services, including a ten-year role as 401(k) sales director for the Northeast.  McKay replaces Meredith Wolff, who was recently promoted to 401(k) national accounts manager, covering strategic broker/dealer relationships.

Joseph Kaplan has been hired as regional 401(k) sales director for New York City and surrounding areas, as well as New Jersey, a newly-created territory. Previously with ADP Retirement Services, Kaplan, who will be based in New York City, was responsible for managing relationships with financial advisers and distribution partners in the New York metro region.  Prior to ADP, Kaplan was vice president, and regional retirement plan specialist for RBC Wealth Management.

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Additionally, Ryan Tolmie, formerly the Boston-based lead 401(k) sales team specialist, has been promoted to regional 401(k) sales director for a newly-created territory covering Arizona, New Mexico, Utah, Colorado, Wyoming and Nebraska.

McKay, Kaplan and Tolmie will report directly to James Brockelman, national sales manager, Adviser Sold Defined Contribution (see “Brockelman to Lead Putnam DC Adviser Sales”).

Edmund F. Murphy, III, head of defined contribution, said that the firm continues to actively recruit talent to deliver “the full Putnam retirement experience” to advisers, clients and prospective clients, and expects additional hiring in all facets of its defined contribution organization.  In particular, Murphy noted that the firm is aggressively bolstering its internal sales desk and key service roles and that additional hires are expected in the sales and service areas in the months ahead.

The Markets January 24, 2012

ETF Industry Crossed $1T in 2011

The U.S. exchange-traded funds (ETF) industry grew to more than $1.04 trillion in assets under management in 2011, according to a report from State Street Global Advisors (SSgA).
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This is a 5.5% increase from the previous year, with investor inflows offsetting declining equity prices. During the year, U.S. ETFs attracted $119 billion of new assets, as investors increased their exposure to fixed income, dividend/fundamental strategies and developed markets outside the U.S.  

2012 ETF & Investment Outlook: Sink or Swim, developed by the SPDR ETF Strategy & Consulting Group, features insights on macroeconomic trends impacting the financial markets and examines key developments expected to shape the ETF industry and asset flows in 2012.  

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“Despite significant headwinds facing the financial markets in 2011, investors continued to increase their appetite for ETFs, which was evidenced by industry assets crossing the trillion dollar tipping point,” said Kevin Quigg, global head of ETF Strategy & Consulting at SSgA. “Our 2012 investment outlook is cautious due to the European debt crisis; however, the ETF industry is well-positioned to build on its success in recent years, as awareness of the benefits of ETFs continues to grow.”  

The report outlines three potential market scenarios for 2012. It also highlights two investment themes expected to prevail regardless of what direction the markets may take.   

With the Federal Reserve intending to maintain a low rate environment until 2013 or longer, generating income via higher-yielding fixed income, dividend producing equities and hybrid securities is one theme likely to continue to shape investment decisions in 2012. In an environment where the growth potential of developed nations seems relatively muted, another theme projected to garner investor attention is the opportunity for growth in emerging markets.  

In addition to shaping ETF product development in 2012, these investment themes are also poised to drive asset flows, as an increasing number of investors use ETFs to implement their investment strategies.  

To download a copy of 2012 ETF & Investment Outlook: Sink or Swim, visit SPDR University at http://www.spdru.com, or ETF Fact or Fiction at http://www.etffactorfiction.com, a new website launched by State Street to provide individual investors with ETF education.

 

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