Deals & People December 14, 2023

MFS, Natixis Both Name New CEOs

Philippe Setbon will step into the Natixis job immediately, while Edward Maloney’s promotion at MFS will take effect in 2025.

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Two asset managers with large defined contribution-relevant offerings named new heads on Thursday.

MFS Investment Management has laid out succession planning for the next CEO, naming Edward Maloney to the role effective in January 2025, the firm announced Thursday. Maloney will succeed and report to Michael Roberge, who will move to the role of executive chair at that time, having served as CEO since 2017.

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Ted Maloney

Maloney has been CIO of the investment manager since 2019, overseeing the firm’s investment platform and 300 researchers, portfolio managers and traders. He will retain the position of CIO along with CEO, according to a spokesperson.

MFS is the country’s 14th-largest fund provider by long-term assets, according to Simfund, which, like PLANADVISER, is owned by ISS STOXX. Among active mutual fund managers, it ranks ninth in the U.S., according to Simfund.

As CEO, Maloney will take on strategy and direction for MFS at its 100th anniversary, having been founded in 1924 in Boston with the creation of the Massachusetts Investors Trust, the country’s first mutual fund, according to the firm. In his new role, Maloney will lead more than 2,000 employees across investment, distribution, finance, human resources, legal and technology.

“Having worked with Ted for nearly two decades, I have seen firsthand the profound impact that his leadership has had on the firm and our clients worldwide and know he is the best person to lead MFS forward,” Roberge said in a statement. “His appointment is the culmination of many years of leadership planning and is consistent with MFS’ long-term approach to executive transitions.”

Maloney joined the firm in 2005 as an equity research analyst and has held roles including director of U.S. equity research and global director of research. He has also established a team of co-CIOs across investment divisions and has played a role in “driving greater diversity and inclusion” across the investment team, according to the announcement.

MFS had $575.8 billion in total assets under management, with $308.6 billion of those in mutual funds, as of November 30. 

Natixis Brings Over Ostrum Asset Management CEO

Natixis Investment Managers appointed Philippe Setbon as CEO, effective immediately, according to an announcement from parent firm Group BPCE, based in Paris.

Philippe Setbon

Setbon had been CEO at Ostrum Asset Management, an affiliate manager of Natixis, since 2019. He succeeds Tim Ryan, who had been CEO since 2021 and will be leaving the firm to “pursue his career outside the group,” according to the announcement.

Setbon will be in charge of asset and wealth management and will be a member of both the senior management committee of Groupe BPCE’s businesses and the BPCE executive committee. He will report to Stephanie Paix, Group BPCE’s CEO.

“Asset and wealth management is a core business for the group and one of global standing and a source of growth and diversification,” Paix said in a statement. “I would like to thank Tim Ryan for his work and accomplishments over this near three-year period. He notably simplified and leveraged our model’s particularly rich offering.”

Olivier Houix will be taking over as CEO of Ostrum, according to the announcement, moving from his role as Group BPCE’s chief sustainability officer. That division had $404.2 billion in assets under management as of September 30.

Setbon began his career in 1990 as a financial analyst with Barclays Bank, later taking senior roles, including CEO of Generali Investments France, CEO of Generali Investments Europe Sgr and CIO for the Generali Group.

Natixis has $1.2 trillion in AUM and is the country’s 26th-largest target-date-fund provider by assets, according to Simfund.

 

Products December 14, 2023

Product & Service Launches – 12/14/23

Equitable enhances flagship investment-only variable annuity; Vanguard expands ETF lineup; AllianceBernstein launches five active ETFs; and more.

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Equitable Enhances Its Flagship Investment-Only Variable Annuity

Equitable announced enhancements to its Investment Edge investment-only variable annuity that add new options designed to increase growth potential and provide additional flexibility to customize investment options.

Growth Multiplier—a new investment option that adds a set multiple to a positive S&P 500 return—allows individuals who are willing to take on more investment risk by forgoing partial downside protection to take advantage of potentially larger investment gains.

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“We know clients are looking for opportunities to continually grow their retirement savings, especially given the lingering higher inflation that we are experiencing,” Steve Scanlon, head of individual retirement at Equitable, said in a statement. “Our new Growth Multiplier investment option is designed to help solve for this and is the latest example of our ongoing commitment to innovate.”

Equitable is also adding its Dual Step-Up segment, an investment option in its Structured Capital Strategies Plus registered index-linked annuity, to Investment Edge. Dual Step-Up provides the potential for a positive return even during flat or down markets by guaranteeing a positive return equal to the performance cap rate if the selected index return is greater than or equal to the chosen buffer at the end of the investment period.

AllianceBernstein Launches 5 Active ETFs

AllianceBernstein LP, a leading global investment management and research firm, announced the launch of five active ETFs on the NASDAQ and New York Stock Exchange Arca: 

  • AB Conservative Buffer ETF
  • AB Tax-Aware Intermediate Municipal ETF
  • AB Tax-Aware Long Municipal ETF
  • AB Corporate Bond ETF
  • AB Core Plus Bond ETF

“On the heels of crossing the $1 billion threshold in active ETF AUM, these new ETFs will provide clients with a broadened suite of versatile products, built to help investors navigate the evolving market cycles we see coming in 2024 and beyond,” said Noel Archard, AB’s global head of ETFs and portfolio solutions, in a statement.

“Our Fixed Income and ETF teams continually seek to deliver AB’s unique, tech-driven investment process in an active platform to both our clients and the broader ETF community,” said Scott DiMaggio, AB’s co-head of fixed income, in a statement.

Touchstone Investments Launches Dynamic International ETF to Expand Global Exposure

Touchstone Investments, known for its Distinctively Active mutual funds and ETFs, announced the launch of the Touchstone Dynamic International ETF, an actively managed, fully-transparent ETF that invests in equity securities of non-U.S. companies domiciled in both developed and emerging markets. The fund began trading on December 11.

To achieve capital appreciation, the Touchstone Dynamic International ETF is designed to offer investors a comprehensive framework of investments with broad international exposure.

The strategy follows Los Angeles Capital Management’s Dynamic Alpha Stock Selection Model, an adaptive quantitative investment process that considers evolving market conditions, manages investment risk and alpha uncertainty, and weighs factors based on forward-looking expectations.

“We are pleased to launch the Touchstone Dynamic International ETF in partnership with Los Angeles Capital Management, given the team’s unique investment process designed to build equity portfolios that adapt to dynamic market conditions,” said Blake Moore, president and CEO of Touchstone Investments, in a statement. “This strategy is an important addition to Touchstone’s existing suite of active ETFs and a compelling opportunity for investors seeking concentrated exposure in credible markets outside of the U.S.”

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