Deals & People October 3, 2011

MFS Names Co-Heads of Global Distribution

Carol Geremia and James Jessee have been named as Co-Heads of Global Distribution at MFS.
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Geremia  and Jessee take over the role previously held by Martin Beaulieu, who has been named CEO of MFS’s Canadian business, formed by the recent acquisition by MFS of Toronto-based McLean Budden.  

In addition to their responsibilities as Co-Heads of Global Distribution, Geremia will continue to serve as President of MFS Institutional Advisors Inc., and Jessee will continue as President of MFS Fund Distributors Inc.  

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Geremia joined MFS in 1984 and held a variety of positions in the firm’s defined contribution business – MFS Retirement Services – including president of the unit from 2001 to 2004, when she was named president of MFS Institutional Advisors. In that role she oversees asset management for the company’s global institutional clients and discretionary managers, which include corporate and public pension and defined contribution plans, multi-employer plans, investment authorities, and endowments and foundations.   

Jessee joined MFS in 1987 and worked for 15 years as a wholesaler before joining the home office in senior sales management and dealer relations roles; he was named President of MFS Fund Distributors in 2004. His group is responsible for the marketing and sales of MFS domestic mutual funds and separately managed accounts, as well as the distribution of MFS investments through insurance company variable products.   

Beaulieu joined MFS in 1990 and served as President of MFS Retirement Services and of MFS Fund Distributors before being named Head of Global Distribution in 2002. He also served as a Vice Chairman and member of the Management Committee of MFS. In September 2011, Sun Life Financial, parent company of MFS and McLean Budden, announced it was purchasing the minority shares it did not already own in McLean Budden and transferring the business in an affiliated transaction to MFS, naming Beaulieu as the new CEO.
Data & Research October 3, 2011

Asset Owners Change Approach to Risk Management

MSCI’s 2011 Global Asset Owners Survey, “Back to the Future of Risk Management,” found 80% of institutional investors are currently using stress tests. 
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MSCI surveyed 85 participants from 26 countries, representing roughly $5.5 trillion in assets under management, for its research examining current and future risk management trends.

“The results of our survey clearly show a continued evolution through these uncertain market times with a greater focus on risk management and with more resources dedicated to measuring and managing risk,” said Frank Nielsen, Executive Director of Research at MSCI. “The results reflect how risk management has become both a high priority and a more formalized component of the overall investment process for our clients.” 

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Since MSCI’s inaugural survey in 2009, “The Future of Market Risk Management,” asset owner participants have updated their risk management best practices.  Many have shortened their strategic asset allocation horizon, often from three years to one year, and the number of surveyed firms using stress testing has increased by almost 300% since 2009. Participants cited market risk, counterparty risk and liquidity risk as the top three risk concerns. Communication was also a theme—asset owners reported increased and more frequent communication between their risk team, board, and investment teams.

Other key themes in the 2011 survey results include:

  • A paradigm shift of the risk management function as more resources are dedicated to the management and measurement of risk
  • Plan investment horizon and asset allocation decision making have become more dynamic
  • Stress testing and extreme (tail) risk hedging have become a very high priority
  • External management selection criteria largely depend on transparency and risk control as allocation to alternatives is increasing

The survey was conducted from May-August 2011. Respondents were mostly CIOs, CROs, Portfolio Managers, Senior Risk Analysts, and Middle Office heads.

For a copy of the paper, visit http://www.msci.com/resources/research_papers/back_to_the_future_of_risk_management.html.

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