Briefly: “Money Managers Perform Better in Q2” and More of Wednesday’s News
July 30, 2008 | Staff

…cont’d

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Fundamentally Weighted Indexing Coming

WisdomTree and Mellon Capital Management Corporation, an investment boutique within BNY Mellon Asset Management, have announced a collaboration in managing institutional accounts according to WisdomTree’s fundamentally weighted indexing methodology.

Mellon Capital will be the exclusive licensee for these accounts and will serve as the sole investment advisor using this methodology.

“We are pleased to be adding fundamentally weighted indexes, offering investors an alternative to traditional market capitalization indexes,” says Charlie Jacklin, Mellon Capital CEO. “In contrast, these new accounts will be based on fundamental measures such as dividends and earnings.”

These portfolios will be marketed to pension funds, governments, endowments, foundations and other similar fiduciaries. WisdomTree will serve as both index licensor and co-marketer.

A fundamentally weighted index’s components are chosen based on one or more factors such as sales, book value or cash flow as opposed to market capitalization.

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Northern Trust Adds Head of Consultant Relations

Northern Trust has appointed Matt Severs to fulfill a newly created position as the head of consultant relations for its Corporate & Institutional Services business in North America.

He will assume responsibility for consultant relationships, working alongside relationship management, sales, product development and operations to support all asset servicing touch points between Northern Trust and the consultant community.

“Matt’s new role is part of an enterprise-wide effort to strengthen consultant relations, recognizing the strategic influence that this group carries within the asset servicing market,” says Robert Frazer, head of global consultant relations for Northern Trust’s Corporate & Institutional Services business.

Severs brings with him a wealth of product and industry knowledge from his tenure within Northern Trust’s fund administration business, where he helped build Northern Trust’s market leadership in the cross-border pooling space.

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Pensioner Told to Prove He’s Alive

A 89-year-old pensioner who used to work for General Motors received a letter from the company asking to prove that he’s still a member of the living, according to a report.

The Windsor Star reports that if Frank Williams could not do so, his pension payments would be suspended.

The senior has collected a pension from GM for 31 years. He worked on the automaker’s assembly line for three decades.

Periodic audits are usually undertaken because the company isn’t always notified about the deaths of former employees who receive pensions.