US - AXA Investment Managers has appointed Jeremy Baskin as chief executive officer of AXA Rosenberg, completing the firm’s restructure in the wake of the coding error scandal.
AXA IM, which took over ownership of AXA Rosenberg earlier this year, said Baskin's experience in quantitative equity management made him the "ideal candidate to help AXA Rosenberg refocus on its roots and rebuild its franchise".
He replaces Stéphane Prunet, who will remain at AXA IM, assuming new responsibilities as an adviser to the CEO of AXA IM.
In April, AXA Rosenberg sent a letter to investors informing them of a coding error that occurred the previous June, but corrected between September and November.
"Simply stated, the error affected the scaling of inputs from our risk model into our portfolio optimizer," Prunet said at the time. "As a result, common-factor risks were significantly underrepresented, leaving portfolio optimization to rely primarily on our other risk controls, which were unaffected by the error."
Chairman Barr Rosenberg and head of research Tom Mead, both co-founders, resigned after an investigation into the error found the two did not follow firm protocol. (Global Pensions: 01 July 2010)
AXA IM has since submitted the findings of the independent investigation, carried out by Cornerstone Analytics, to the Securities and Exchange Commission.
"[Baskin's] appointment culminates the restructuring of AXA Rosenberg initiated earlier this year when AXA IM acquired 100% ownership and worked with management to initiate a restructuring of the firm's governance as well as its risk management processes and systems", said Dominique Carrel-Billiard, CEO of AXA IM.
Baskin, who joins AXA Rosenberg on 1 January, was previously head of the active equities division of Northern Trust, where he worked for the past 22 years, interrupted by two years at First Union Securities, from 1998 to 2000.
At Northern Trust he was responsible for the global passive business as well as building the research and investment infrastructure for risk taking value added quantitative equity strategies.
Most recently, as head of the active equities division, Baskin was responsible for all global fundamental and quantitative portfolio management and research, managing approximately $24bn of assets.
Updating your subscription status
The best of our readers' ideas on how to structure defined ambition pensions
This guide to Pensions Stability explores the new financial and operational model for defined benefit (DB) pension schemes. Pension schemes are still being run with far greater risk than is necessary and there is an opportunity to create a more stable pensions environment for trustees and sponsors.
This inaugural survey among 326 members of the Chartered Institute of Personnel and Development (CIPD) and the Pensions Management Institute (PMI) asked whether auto-enrolment will deliver on its goals; if contribution rates for employees and employers need to rise; and whether pensions tax relief needs further reform.
Up to £40,000pa pro rata
GBP30000.00 - 41000.00 per annum
GBP45000 - 45000 per annum
Send to a friend